flow jamaica
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Flows Impact on JamaicaTRANSCRIPT
Caribbean Development Plans:“Broadband the future of
Regional Communications”Michele English
President and COOColumbus Communications, Flow Jamaica
• Who Are We
• The International Context: Changing world
• The Regional Context: Lagging Behind
• Poised For Change: Enabling Broadband Use in the Region
• The Impact of Columbus’ Communications
Concepts to Discuss today
Columbus Communications Inc
Columbus International Inc. is a leading provider of broadband capacity solutions and broadband-enabled services tocommercial and retail customers in, or operating in, the Caribbean, Latin American and North American markets
Manages business under two operating segments: Columbus Networks (“Wholesale”) and Broadband Services (“Retail”)
Over 1,700 employees
Columbus Networks provides full suite of advance, point-to-point, clear channel wholesale broadband capacity and IP servicesover its owned and operated, state-of-the-art, subsea fiber optic cable network to clients located in 21 countries and territoriesthroughout the Caribbean, Latin America and North America
Broadband Services operating segment provides broadband-enabled services such as cable television, high speed Internet(“HSI”) access and IP telephony services under the unified brand name “Flow” to retail and commercial customers inTrinidad, Jamaica and Grenada
Columbus Networks Broadband Services
ColumbusTrinidad
ColumbusJamaica
ColumbusGrenada
Clear Channel Broadband CapacityIP Services
Other Network ServicesCable Television
High Speed InternetIP Telephony
Other Network Services
Columbus Networks is a carrier’s carrier providing advanced,high-speed bandwidth on its ARCOS Cable System to:
Telecommunicationscompanies
Internet ServiceProviders
Columbus Networks aims to identify and address telecommunicationsopportunities in Latin America and the Caribbean that have significant
upside potential in both growth, value and service offerings.
Cable TVOperators
Columbus Networks, Superior Solutions
Network of the Future
The most robust, operating platform in the Caribbean which can beuniquely leveraged to capitalize on numerous growth opportunities in the
region
Capacity Solutions
Broadband Services
Backhaul deploymentinitiatives
E-Commerce Park
Columbus Jamaica
Columbus Trinidad
Columbus Grenada
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Flow Jamaica – Network
• Broadband deployment could contribute $500B to GDP in the US and $400Bin Europe.
• Total ICT sector employment grew by over 8% annually between 1995 and2005 in developed countries, and represented 5.5% of total businessemployment.
• Internet business solutions have enable private companies in the US to save$155B – 2005
• Helped companies in France, Germany and the UK increase revenues $79billion.
• A survey of more than 2,000 US businesses - that Internet business solutionsresulted in a net gain of almost $600 billion by 2001 and would add .43percentage points to future productivity growth through 2011
Broadband, International Context
Internet Usage, International Context
Population Internet Users % Pop.
Internet
Growth
Broadband
Users Broadband
( 2008 Est. ) Latest Data Penetration 2000-2009 Penetration
Mexico 106,919,000 28,540,000 26.69% 645% 7,596,000 7.10%
Central America 41,608,899 5,837,000 14.03% 627% 770,700 1.85%
Andean 86,253,000 19,853,999 23.02% 374% 3,375,000 3.91%
The Caribbean 18,303,534 5,603,000 30.61% 832% 915,000 5.00%
TOTAL 253,084,433 59,833,999 23.64% 433% 12,656,700 5.00%
North America 340,831,831 252,908,000 74.20% 134% 163,231,660 49%
Data as of Dec 2009
Sources: Pyramid Research, Internetworldstats.com, ITU, Nielsen/Net Ratings, Convergencia Latina, DSL Forum
Internet Usage in the Pan Caribbean Region
Pan Caribbean Region
Broadband, Regional Context
Downloads per Residential User – GB Per MonthEvolution of Internet Applications
Downloads per residential user are expected to grow rapidly across theregion driving demand for capacity and IP services
Poised For the potential of Broadband
• Invested more than $700m in off and on Island infrastructure.Projected to reach $1 billion over the next 4-5 years
• Providing an information infrastructure for advancedbroadband enabled Services and unparalleled businesssolutions;
• Enabling innovation by continually exceeding the demand forBandwidth Intensive applications;
• Using cutting edge technology to transform the way the regionworks, learns and plays
Columbus, Bringing Broadband to the Region
First regional network to provide a true ring configuration 19 Countries Connecting over 200 million people
United StatesBahamasTurks & CaicosDominican RepublicanJamaicaPuerto RicoCuraçaoTrinidadVenezuelaColombiaEcuadorPanamaCosta RicaNicaraguaHondurasGuatemalaEl SalvadorBelizeMexico
ClockwiseClockwise
Unparalleled Connectivity
Quality of serviceOne of the best Service Level Agreements in theregion
– 100% network availability– Less than .03 % packet loss– 50ms average or less latency
Intelligent RoutingTraffic from the CN is directly routed to all major IPbackbones using an overlay network of Tier-1providers and regional peering
Flexible billing solutionsCN IP Transit Service is offered as full port, tiered orburstable connection, to meet the need of yourbandwidth demand and business model
Scalable connections Bandwidth available from E1 to Gigabit speeds
Built-in redundancyConnection to all major IP backbones through ourstate-of-the-art submarine broadband fiber opticnetwork using next generation routing technology
Network ManagementCN IP Transit provides one point of contact at CN’sNetwork Operations Center (“NOC”) providing highnetwork availability and performanceMonitored and maintained 24X7
Unparalleled Business Solutions
Flow – Triple Play Services
Watch. Talk. Click.
• Dramatic Increase in Capacity
• Greater Resiliency and Redundancy
• Dramatic reduction in cost to both business and residentialcustomers (by 100% in some cases)
• Critical Business Solutions
• Enabling Business Development and Innovation
Impact of Columbus
Circuit Speed Jamaica Bahamas Trinidad1.544 Mbps US$16,000 US$10,000 US$24,000
Pre - Columbus
Post - Columbus
Circuit Speed Jamaica Bahamas Trinidad1.544 Mbps US$5,000 US$4,200 US$11,000Savings US$11,000 US$5,800 US$13,000
Est. monthly comparative costs. IPLC to Miami before and after CFXSource: Columbus Research
Impact of Columbus - Regional
Capacity Pre-Flow MarketToday
FlowToday
%Decrease
E1(2Mbps)toMiami
$22,000 $9,000 $6,000 73%
DS‐3TOMiami $160,000 $60,000 $35,000 78%
IPperMbps $7,000 $500 $148 98%
Prices shown in US$ per month. Based on Jamaican prices.
Commercial
Impact of Columbus - Jamaica
Capacity Pre-Flow CompetitionToday
FlowToday
%Decrease
1.0Mbps $90 $22.03 N/A 76%
2.0Mbps $120 $24.49 N/A 80%
4.0Mbps N/A $27.83 N/A N/A
8.0Mbps* N/A $30.06 $27.33 N/A
15.0Mbps N/A N/A $35.70 N/A
DataPricesCaseStudy–FlowJamaicaMarketEntry
*Competitors 8Mbps offered in very limited areas. Prices in US$.
Impact of Columbus - Residential
Source: OECD Statistics
Flow’s Impact on Broadband
• Impact on macro business environment• Job Creation
Currently 500+ employees Building Jamaica’s workforce Transfer of technical skills and new technology Job creation throughout Jamaica
Attracting International Investors Unprecedented bandwidth now available to the island the data connectivity of Jamaica is now on par with any first-
world country When the region is threatened by hurricanes, the likelihood of
Jamaica being cut off from the rest of the world will besignificantly reduced, with the addition of this undersea fibreoptic connection.
National Impact - Jamaica
Number of CallCentres
Number ofSeats
Number ofAgents
20 4,555 9,000
Pre – Columbus (2006)
Post – Columbus (2010)
Number of CallCentres
Number ofSeats
Number ofAgents
36 9,419 24,824
Growth 80% 107% 176%
Source – JTI/Jampro & Zagada Market Inc.
Impact of Columbus – Call Centre Industry - Jamaica
• Impact on macro business environment• Reducing the digital divide/Creating an knowledge based society
– Building a Knowledge based society- provide true broadbandinfrastructure to all of Jamaica
• Commitment to social development:– Multimillion dollar “Building Leader Through Technology” programmes that:
• Focus on enhancing the learning environment of students through the freeprovisions of Flow’s internet and educational cable products to schoolsthroughout Jamaica
• Focus on building strategic partnerships with other private sector partners tobuild youth leadership
Flow’s Impact in Jamaica
Social Impact of Columbus’ Broadband
Thank You