pacnet story 20101108

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Page 1: Pacnet Story 20101108

The Pacnet StoryPresenter’s NamePresenter’s Title

Event DateEvent Location

Page 2: Pacnet Story 20101108

US$23 trillion More than a third

The Global Economy’s Center of GravityOur Focus is Asia

economy of the world’s GDP output in the next decade

We link your supply chain in China to retailers in the West

We enable billions of dollars of transactions on the trading floors across the region

Page 3: Pacnet Story 20101108

Source: CIA World Fact Book 2009

Demographic

GDP

Asia

• 3.6 billion people• 56% of the world• Over 20 different

countries/cultures

(Excluding Russia/Central Asia/Middle East & Including Australia/NZ):

• GDP (PPP) of top 10 Asian countries estimated at US$20.2 trillion

• 31% of world GDP in 2008

Industry

• Manufacturing, BPO, Retail, Energy, Heavy Industries, Electronics…

China, 2008• 7.8% Annual GDP

Growth• 2nd largest country

after US, by GDPIndia, 2008• 6.9% Annual GDP

growth• 4th largest country,

by GDP

Pacnet Operates in the Fastest Growing Region in the World…

Page 4: Pacnet Story 20101108

Average BroadbandPenetration per Household

50% or moreMATURE MARKETS – Korea, Hong Kong, Japan, Taiwan, Australia,Singapore, New Zealand

30% or lessEMERGING MARKETS – Malaysia, China, Thailand, India, Philippines, Indonesia, Rest of Asia Pacific

Broadband Penetration(per household)

> 50%

50%-30%

30%-10%

< 10%

N/A

Q4’08 data provided by Point Topic | Source: Telecom Asia June 2009 – www.telecomasia.net

A Region That Has Just Barely Started to Embrace the Worldwide Web

Asia now has 40% of the world’s 445m

broadband lines. China tops at 94m.

Page 5: Pacnet Story 20101108

And Yet Will Accelerate Faster Than Anywhere On the Planet, Despite the Fact That it is Already the Largest Internet Region in the World

• Asia has 704m or 42% of the World Internet Users today

• User growth at 516% vs World growth at 362% for 2000-2009

Source: Internet World Stats 2009 *user who accesses the Internet through a desktop or laptop at home, school, internet café or other location outside the context of a business

Population 2009 (in M)

Internet Users 2009

(in M)Users % of

WorldUser Growth (2000-2009)

Asia Only 3808 704 42% 516%ROW 2960 965 58% 291%World 6768 1669 100% 362%

ChinaJap

anIndia

Korea

Indonesia

Philippines

Vietnam

Malaysi

a

Thaila

ndTai

wan

Hong Kong

Singa

pore US

Europe

050

100150200250300350400450

0%10%20%30%40%50%60%70%80%90%

Users in 2009 Penetration

Inte

rnet

Use

rs (i

n m

illio

n)

(% P

opul

ation

)

• China topping the list at 334m users

• Uptake will be strong in China & India where penetration is still very low

5

Page 6: Pacnet Story 20101108

Unlike America and Europe Where the Internet is Dominated By Terrestrial Networks, Asia Depends Heavily on Submarine Networks...

5% 7%

88%

5%

42%52%

• In Asia, much higher proportion of submarine cable linking the countries

• Regulatory barriers prohibit easy entry. Cross country systems are nearly all on carrier consortium basis with no end-to-end control

Rest of World Asia Pacific

Submarine cable

Terrestrial fiber.Satellite

Source: TeleGeography 2009, CNNIC, Pacnet estimation

6

Page 7: Pacnet Story 20101108

Intra-Asia Trans-PacificPurchased bandwidth forecast (2002A-2016F)

Demand, price and revenue change (2009-2016) Demand, price and revenue change (2009-2016)

Significant increase in demand for bandwidth will drive growth in overall revenue despite continued price decline

010203040506070

2002

A

2003

A

2004

A

2005

A

2006

A

2007

A

2008

A

2009

A

2010

F

2011

F

2012

F

2013

F

2014

F

2015

F

2016

F

Tbps

2002A-09A CAGR = 35.9%

2009A-16F CAGR = 44.1%

0102030405060

2002

A

2003

A

2004

A

2005

A

2006

A

2007

A

2008

A

2009

A

2010

F

2011

F

2012

F

2013

F

2014

F

2015

F

2016

F

Tbps

Purchased bandwidth forecast (2002A-2016F)

2002A-09A CAGR = 33.4%

2009A-15F CAGR = 34.7%

-40%

-20%

0%

20%

40%

60%

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Demand Change Effective Price Change Revenue Change

-40%

-20%

0%

20%

40%

60%

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Demand Change Effective Price Change Revenue Change

Source: TeleGeography Global Bandwidth Forecast, Q2 2010

This Reliance is Accelerating Over the Last Few Years as the Internet Has Become More Asia-Centric

7

Page 8: Pacnet Story 20101108

According to the ATLAS Internet Observatory 2009 Annual Report:

• Massive growth of on-line traffic and Content mostly free

• Subsidized by fast growing On-line Advertisement revenue for Content production & network costs

• Top five Internet companies produce 78% of their revenue from advertising. Users pay zero

• On-line Advertisement & free content not as popular

• End-user charged with network & Content usage

• Top five Internet companies produce 90% of their revenue form selling access or pay for service

In Summary, Asia is a Market Which is Accelerating and Enormous Yet Will Require a Different Breed of Internet Company

CONTENTAggregatorProfitability from

content generated revenue

NETWORKAggregatorProfitability from asset generated

margin

US Model Asia Model

8

Page 9: Pacnet Story 20101108

2002 2006 20152003 2004 2005 2007 2008 2009

• Chapter 11• Separation from

Global Crossing• Restructuring of

major contracts

• Re-engineering of C2C• Extended cable landing

in China• Strengthen Enterprise

capability

• Enterprise focus company• SME business integration• Divesture of non-core

business• Monetization of C2C • Extended cable landing in US• High capacity network

upgrades

AccelerationRestructuring Remaking

Pacnet Has Been Built to Compete in This Highly Dynamic Marketplace Through a Series of Restructurings and Acquisitions

9

Page 10: Pacnet Story 20101108

Through our extensive subsea cable systems

capable of terabit-grade data transmissions

And our powerful Data Landing Stations Pacnet is paving the way for future-proof hosting capabilities

Page 11: Pacnet Story 20101108

and shaping thedigital experience

of the future

Pacnet is transforming how businesses communicate

Page 12: Pacnet Story 20101108

Agenda

• Who Is Pacnet?• Our Network• Our Product Portfolio• Journey Into the Future with Pacnet

– Data Landing Stations– Network Expansion

• Our Team• Discussion

Page 13: Pacnet Story 20101108

Who is Pacnet?

Page 14: Pacnet Story 20101108

Pacnet: A Next Generation Communications Company

Pacnet’s Advantages

Fast Growing Asia Telecom / Internet

Markets

Who is Pacnet?

Asia’s Top IP Network (2010 CAIDA ranking)

Asia’s longest and highest capacity privately-owned submarine cable

network

Asia’s fastest growing independent telecom

services company

Asia’s lowest-cost network

Asian traffic growth inter-regional to

intra-regional

Intra-Asian assets are limited and few

Asia’s growth is being generated

by the sub-Fortune 500 segment

Low cost is key to content delivery in Asia

Largest Independent Network• Unique assets: EAC + C2C + EAC

Pacific cable networks (total construction cost >US$4.1 bn)

• Coverage in all major markets• Operational redundancy• Over 250 Carrier Customers; 800

Enterprise Customers and more than 43,000 SME Customers worldwide

People• >1,200 employees worldwide• Largest regional sales force in Asia• Stable and empowered management

team• Channel capability in all key markets

Prospects for the Future• Potential to become the gateway to

and through Asia for all communications

Pacnet provides capacity and data connectivity solutions to carriers, enterprises / MNCs, and SMEs across Asia Pacific

Page 15: Pacnet Story 20101108

Our History is Humble Yet Character Building

2008

2002Consortium led by China Netcom,

Newbridge and Softbank buys AGC’sassets at US$120m and launches

Asia Netcom; EAC lands in Singapore

1989

2001

2000

1999

2003

2004

2007

2005

2006

1995 1998

1999

2000

2002

2007

2010

2009

Started as NUS (TechNet)

Started commercial operations in Singapore

Expands to Philippines

Expands to Hong Kongand India; Listing on NASDAQ

Expands to Australia and Thailand

Expands to Malaysia

Connect Holdings Ltd.acquires Pacific Internet

Asia Netcom and Pacific Internet come together as Pacnet;

Connect Holdings Ltd. renamed Pacnet Limited; Pacnet expands presence in China

with Pacnet Business Solutions (China)

Receives NLD, ILD licenses in India

and NSP license in Malaysia; EAC

Pacific ready for service

Expands into Vietnam; Launches Global Customer Service Center in Malaysia; Trans Pacific subsea cable EAC Pacific

lands in JapanEAC-C2C complete operational merger,

bringing together two companies – total investment of US$4b

China Netcom sells ANC to investor groupConnect Holdings Ltd. for US$402m

EAC lands in Qingdao, China

Started as Asia Global Crossing (AGC),

a venture by Global Crossing, Microsoft and Softbank to build a US$2b regional cable system EAC

AGC lists on NASDAQ

AGC moves listing to NYSE; EAC lands in Hong Kong and Taiwan

ANC is part of China Netcom’sIPO on the NYSE and SEHK

China Netcomacquires 100% of ANC

15

Page 16: Pacnet Story 20101108

Frost & Sullivan Company of the Year for Excellence in Growth2009

TelecomAsia Best Wholesale Carrier2009 and 2007

IEC Infovision Awards2008, 2007 & 2006

Australian Business AwardsRecommended Employer

2007

Capacity MediaBest Wholesale Technology

(2007)

CCAS Contact Center Awards (SGP)Best Contact Centre Champion of the Year

2007

Frost & SullivanData Communications ServiceProvider of the Year (2006 and 2005)

CCAM Contact Center Awards (MAL)2 Golds, 1 Silver, 1 Bronze2007

Asia Customer Service Association2 Awards for Service Excellence2007

CommsDay Asia Pacific AwardsBill Barney - Best Telecom Executive

2009

TelecomAsiaBill Barney - CEO of the Year2008

Along the Way, We Collected Some Awards and Recognitions…

16

Page 17: Pacnet Story 20101108

Pacnet Owns and Operates the World’s Largest Privately Owned Cable Asset and the Majority of Asia’s Undersea Cables

EAC-C2C is Asia Pacific’s highest capacity cable

- TeleGeography (April 2009)

Combined Statistics ofEAC-C2C and EAC Pacific

Construction Costs: Over $4.1B

Length: 46,420 km

Reach: 18 cable landing stations across Asia and US

Number of fiber pairs Length Design

Capacity

EAC-C2C 12 36,800km 17.92 to 30.72 Tbps

EAC Pacific 2 9,620km 1.92 Tbps

EAC

C2C

EAC Pacific

Page 18: Pacnet Story 20101108

Our Product & Service Offerings

Carrier Customers Enterprise Customers SME & Consumer Customers

• IRU (and related OA&M)

• IPL

• IP transit

• Wholesale voice service

• EIPL

• Colocation

• IRU (and related OA&M)

• IPL

• IP transit

• Enterprise network services (IP VPN, ATM, frame relay)

• Colocation

• Internet services (xDSL, metro Ethernet, leased line)

• Managed services

• Enterprise voice service

• EIPL

• Internet services• xDSL• Broadband• Leased line• Metro Ethernet• ISDN• Dial-in

• Domestic IP VPN

• Managed services (managed router and managed firewall)

• Hosted applications (email outsourcing, antivirus/ anti-spam, web hosting)

Our full suite of products and services, from sale of capacity (i.e., IRU) to data connectivity services, capture the rapidly rising demand for Internet bandwidth

within and into/out of Asia Pacific across all customer segments

18

Page 19: Pacnet Story 20101108

Our Market Position

2010

According to Gartner in its Magic Quadrant for Asia Pacific Network Service Provider report:

“Pacnet is poised to become a strong player. It has laid the foundation for delivering high service quality, with the potential to gain real economies of scale to be highly cost-competitive… it now needs to translate its strengths into customer benefits to gain a lead in the market.”

19

Page 20: Pacnet Story 20101108

Our NetworkOwnership : Our Winning Value Proposition

Page 21: Pacnet Story 20101108

Our Regional Cable Ownership is UnsurpassedCombined Statistics(EAC, C2C, EAC-Pacific)

Construction Costs: $4.1B

Length: 46,420 km

Design Capacity: 17.92 to 30.72 Tbps (EAC-C2C), 1.92 Tbps (EAC Pacific)

Landing stations: • China,• HK,• Japan,• Philippines,• South Korea,• Singapore,• Taiwan,• USA

Qingdao

Nanhui

Hong Kong

Pusan Ajiguara

Nasugbu

Changi

To Los AngelesShima

ChikuraSeoul

TanshuiFangshan

EACC2CEAC Pacific

Page 22: Pacnet Story 20101108

Our EAC-C2C cable reaches 18 cable landing stations across Asia and U.S. Our EAC Pacific is seamlessly connected to the EAC-C2C, further enhancing connectivity from and into Asia

Malaysia

Thailand

Vietnam

APCN2

EAC Pacific (Unity)2010

TPE2Q08

AAG4Q09

IA3Q09

SJCProposed

Our Asia Pacific Network Has the Widest Reach

Also, we are, in terms of:• No. of AS Number

Connections – #3

• IP Backbone Capacity– #2

• No. of IPVPN POPs– #5

• No. of IP Peering Locations– #5

No of AS No ranking based on CAIDA ranking, AS connection denotes the no of interconnected network a carrier has. IP Backbone capacity ranking based on Peeringdb.com top 1 st bandwidth range (i.e. > 1Tbps) with network service providers. IP VPN POP ranking based on Gartner Research. IP Peering location ranking based on Peeringdo.com. All ranking figures as of end 200922

Page 23: Pacnet Story 20101108

C2CCLS

EACCLS

EACTH

C2CTH

EAC-C2C

EAC-C2C

EAC-C2CEAC-

C2C

EAC-C2C

EAC-C2C

Landing Stations:Leased • Shanghai, China• Qingdao, China• Chung Hom Kok, HK• Chikura, Japan• Shima, Japan• Batangas, Philippines• Pusan, South Korea• Changi, Singapore• Fangshan, Taiwan• Tanshui, Taiwan

Owned• Tseung Kwan O,

Hong Kong • Ajigura, Japan • Shima, Japan• Capepisa, Philippines• Taean, South Korea • Changi, Singapore• Pali, Taiwan

Combined StatisticsConstruction Costs: $4.0BNLength: 36,800 kmDesign Capacity: 17.92 to 30.72 Tbps (total)

Our Fully Integrated EAC-C2C Network Gives Us Unmatchable Redundancy

23

Page 24: Pacnet Story 20101108

Unlike consortium systems which have little capacity redundancy for the wholesale market (since the partners are telcos themselves and have their own capacity needs), Pacnet has a tremendous amount of redundant capacity and can increase capacity very easily to meet customer demands

In a consortium, decision-making tends to be slow as consent from all partners needs to be sought

As a purely independent player owning 100% of the network, Pacnet can make decisions and respond immediately to adapt to changing market conditions

Consortium systems usually have usage already rigidly planned to meet each partner’s needs, whereas Pacnet has a lot more flexibility in managing its capacity to meet customers’ specific requirements

This allows Pacnet to identify any network issues immediately and respond faster to resolve them, providing higher quality customer services

Ability to scale up quickly to accommodate increasingly bandwidth-heavy applications

Ability to quickly respond to market needs

Ability to manage and operate the network and provide tailor-made services

Ability to monitor the whole network and get full visibility of customers’ traffic

Pacnet’s EAC-C2C network enjoys a number of unique advantages vs. competitors Constructed as 2 distinct cables by different owners, EAC and C2C share a lot of

common countries – often via different routes With Pacnet’s integration of the 2 cables, the EAC-C2C network now offers

customers the option to enjoy protected capacity (i.e. have their traffic transmitted via alternate routes if disruption on one route occurs)

Ability to offer customers a natural “meshing” of networks / protected capacity

Fully-integrated and Fully-owned Ring Network Offers Customers Unique and Appealing Services

… All in a very cost competitive framework24

Page 25: Pacnet Story 20101108

Exploding Demand for Higher Speed Services in Asia

Five Year Growth Forecast 2009 - 2013

Total Growth(in Tb)

AnnualGrowth Rate

Gig E Services 4.8 34%

Unprotected Waves 24.4 76%

SDH Services 18.4 15%

Source: TeleGeography Research

Note: Research conducted prior to 2008 Economic Climate Change

Product Mix Shifts Driven by Increasing Customer Demand and Through Competitive Introduction of Linear Cable Systems

Historical Market Performance

5 Year Forecast

25

Page 26: Pacnet Story 20101108

Our PortfolioSimple Data and IP Products

Page 27: Pacnet Story 20101108

Metro Ethernet

Leased Line

3G

Fibre

Cable BroadbandPremium Plus DIA

Symmetric

Asymmetric

Dial-up

DSL Internet Roaming

DDOS Clean Pipe

Hotspot Wi-FiInte

rnet

Mgd WAN Mgd LAN WAN Optimization Load BalancingManaged Network CPE Services

Mgd Firewall Internet Security Remote Access Security Mgd IDS / IPS Mgd UTMManaged Security Services

Rm Based VC IP PBXManaged IP CommunicationsM

anag

ed

Serv

ices

IPVPN (MPLS)M-Flex IPVPN

Layer 2 MPLSLayer 3 VPN

Paid Peer

ATMDDOS Clean Pipe

Country Specific RouteIPv6VPLS

Frame Relay

Layer 2 VPN IP Transit

Net

wor

k

IP MulticastVcN

IRUIPL

ASON

Capa

city EIPL

Lightning

Multipoint-to-Multipoint

WaveStandard WavePremium Wave

Premium Wave Plus

Domain Hosting Web Hosting E-mail Hosting CDN VC + Storage / Virtual Server

Hosted Applications

Appl

icati

on

Hosti

ngCo

-loca

tion

SG - Global Switch, Cintech, IPVG

Australia - Sydney (Bond St), Sydney (Global switch), Melbourne, Brisbane,

New Castle

HK- Mega-I,TMH

China - SZ, SH, BJ

Korea - Seoul

Thailand – CAT

TW-Taipei

IN-Bangalore

Japan -Tokyo (NPOP), TIS

MY-Kuala Lumpur

Valu

e Ch

ain

Our Product Portfolio is Built to Match MNCs, SMEs and Carriers’ Service Requirements

27

Page 28: Pacnet Story 20101108

Auckland

SydneyMelbourn

e

Adelaide

PerthSingapor

e

Kuala Lumpur

Hong Kong

Manila

Taipei

Seoul

Tokyo

Nagoya

Osaka

San Jose

Los Angeles

Brisbane

China

United States

Australia

Public peeringPrivate peeringCustomers

> 10G

Reserved capacity > 1 Tbps

Bangkok

Reserved capacity > 1 Tbps

• Over 2 Tbps backbone capacity

• With excellent public peering and supplementary private peering

• Over 250 peering sessions

• Big customer base of content provider and most of the global CDN player as customer

Pacnet IP Network with Unmatched IP Gravity

28

Page 29: Pacnet Story 20101108

Our Footprint and Product Sets Are Extensive Across the Region

CAPACITY

IT SOLUTION & HOSTING

INTERNET

NETWORK

MANAGED SERVICE

Austr

alia

China

Hong K

ong

India

Korea

Europ

e

Malaysi

aNew

Zeala

nd

Indon

esia

Philip

pines

Singa

pore

Thail

and

Taiwan

United

State

sVie

tnam

Japan

Page 30: Pacnet Story 20101108

Journey Into the Futurewith PacnetFrom Data Landing Stations to Subsea Cable Infrastructure Expansion…

Page 31: Pacnet Story 20101108

The Asia Pacific Data Center Market is Under-served and Growing Fast…

• In 2009, Asia-Pacific data center revenue across 14 key markets reached US$8 bn, growing 12.8% compared to 2008

• Frost & Sullivan forecasts CAGR of 14.6% between 2008-2011, with revenue reaching US$10.68 bn by 2011

• 4 out of 5 data centers in Asia operate at close to 90% of capacity

31 Source: Frost & Sullivan, Dec-09

31

Page 32: Pacnet Story 20101108

SINGAPORE Population:

4.7m 3G sub: 2.5m

(39%)

Source: The Company’s Interim Report 2009, www.companiesand markets.com, www.pr-inside.com; www.researchandmarkets.com, www.cellular-news.com, Morgan Stanley Research 2009World Fact Book on population figures of 2009

CHINA Population: 1,339m

3G sub: 0.96m(0.15%)

JAPAN Population:127m

3G sub: 100M (91%)

KOREA

Population: 48.5m 3G sub:

16m(35%)

3G Subscriber Base and Penetration Today

HONG KONGPopulation: 7m

3G sub: 3m (26%)

TAIWAN Population: 23m 3G sub: 8m (31%)

Reference

Western Europe – 0.255M (49%)

Eastern Europe – 0.033M (6%)

North America – 0.121M (39%)

South & Central America – 0.021M (5%)

Middle East & Africa – 0.034M (6%)

Total World ~ 700M at 22% penetration

AUSTRALIAPopulation: 21m

3G sub: 5.5m (25%)

Wireless Enables Faster Broadband Penetration & 3G Ubiquity Allows Enormous Growth in Video Causing a Massive Requirement for Data Center Space…

32

Page 33: Pacnet Story 20101108

Source: Telegeography Global Bandwidth Research 2010, Global Internet Geography Research 2010

• Between 2006 - 2010, international Internet capacity grew at a compound annual rate of 64%

• International Internet capacity increased 55% in 2010, with the addition of 13.2 Tbps of new capacity – an amount only slightly smaller than total international Internet capacity in 2008

• Between 2008 and 2009, international bandwidth usage rose by 60% - the third consecutive year of growth at or exceeding this level

• Since 2002, used international bandwidth capacity has increased more than 22-fold

…Cables and Backbone Networks Carry a Higher Proportion of Video as Volume Continues to Increase

International Bandwidth Usage Growth 2002 - 2009 International Internet Bandwidth Growth 2002 - 2010

33

Page 34: Pacnet Story 20101108

Pacnet Data Center Categories

• Data Landing Station (DLS)– Conversion of space in CLS*– Each facility can support a maximum

of 500 racks• Data Landing Station+ (DLS+)

– Conversion of space in CLS with a minimum of 1000 racks

• Virtual Data Landing Station+ (vDLS+)– Data Center facilities that can support

a minimum of 1,000 racks • Asia Gravity Centers (AGC)

– Large Data Center facilities that can support a minimum of 2,000 racks

Asia Gravity Centers

Tele-House Tele-HouseTele-House

Tele-HouseTele-House

Data Landing Station

Data Landing Station

Data Landing Station

Large facilities, enormous power & cooling,

regionally networked, managed services

Small/Medium sized facilities with direct

International connectivity, high power & cooling

racks, managed services

Existing 3rd party facilities

*CLS = Cable Landing Station34

Page 35: Pacnet Story 20101108

Pacnet Data Center Solutions

Each Pacnet data center will offer the following services:

35

• Managed Colocation Services– Colocation & Power– Managed Cross Connects, Remote

Hands Services

• Managed Network Services – DIA, IPVPN, IPTransit & IPL

• Managed Services (Pacnet Cloud initiatives)– IaaS and PaaS – On-Demand Storage & DR– Web acceleration– Content delivery

Page 36: Pacnet Story 20101108

Pacnet Data Center Deployment Plan

Asia Gravity Center (AGC)

Data Landing Station (DLS)

Virtual Data Landing Station+ (vDLS+)N x 10G meshed backbone

Fiber backhaul

Korea

Hong Kong

Philippines

Singapore

India

Australia

Taiwan

One standard solution across multiple countries

China

Japan

Phase 1 Deployment

Phase 2 Deployment

36

Page 37: Pacnet Story 20101108

Data Center Initiatives Summary

• Over the next 3 years Pacnet will: – Launch DLS SG and DLS HK – Q4’10– Launch vDLS+ Australia – Q1’11– Launch AGC HK in 2012

• Key value propositions:– Network of connected data centers– One standard solution– Any service anywhere– Large power footprints– 24x7x365 Remote Hands and Feet– Carrier neutrality– Just-In-Time capacity– Lowest latency– Direct backhaul to domestic networks– Attractive commercial proposition

37

Page 38: Pacnet Story 20101108

Subsea Cable Expansion Objectives

• Maintain Pacnet’s position as the leading pan-Asian subsea infrastructure owner and operator

• Extend Pacnet’s on-net coverage and capabilities:– India (and from India to Middle East and Europe)– Additional growth markets in South East Asia, particularly

Indonesia, Malaysia and Thailand (and from Thailand the rest of the Indochina market)

– Australia and New Zealand• Deliver additional on-net cost savings to customers across the

Pacnet network

38

Page 39: Pacnet Story 20101108

WAC – Direct Path From India to Singapore and HK

EAC Pacific

EAC-C2C

CHINA

PHILIPPINESVIETNAM

INDIA

CAMBODIA

THAILAND

BANGLADESHHONG KONG

SINGAPORE

CHENNAI

West Asia Crossing (WAC) West Asia Crossing (WAC)

Direct path from India to Singapore Fast path from India to North Asia and Southern

California Seamlessly integrated to EAC-C2C in Singapore,

connecting India to countries across Asia, and on to North America via EAC Pacific,

39

Page 40: Pacnet Story 20101108

Pacific Fibre – Linking AUS, NZ & USA

40

SydneyAuckland

Samoa

Los Angeles

• Joint build project with Pacific Fibre:– Pacific Fibre was

founded by a number of New Zealand and Australian technology and business leaders, including The Warehouse’s Stephen Tindall, David Kirk, Xero’s Rod Drury and Trade Me founder Sam Morgan

– Interest from additional partners

– Structured like Unity to allow independent fibre operation

• Expected completion in 1H 2013

Page 41: Pacnet Story 20101108

Our Team

Page 42: Pacnet Story 20101108

Our Majority Shareholders

Ashmore:  London-based Ashmore Investment Management Limited is a specialist emerging market asset manager. As at June 30, 2010, Ashmore managed US$35.3 billion for institutional clients, including pension funds, banks, insurance companies, endowments, central banks and other governmental entities.  In 2006, the ordinary shares of Ashmore Group plc were listed on the London Stock Exchange. Ashmore is co-chair of EMTA, the emerging debt self-regulatory body in New York.

Spinnaker:  Spinnaker Capital Group specializes in investment management in emerging markets. Its funds invest in all classes of sovereign and corporate securities and related products. The funds are owned by institutional investors including major university endowments, charitable trusts, pension funds, sovereign wealth funds and investment banks, with a total of approximately $5 billion under management. The funds are co-managed by Spinnaker Capital Limited, which is based in London and regulated by the Financial Services Authority in the UK, and Spinnaker Asset Management – SAM Limited, through its subsidiaries in Sao Paulo, Singapore and elsewhere in Asia and the Middle East.

Clearwater:  Clearwater Capital Partners, LLC is an investment firm founded in December 2001 to invest in special situations and distressed or otherwise undervalued assets and securities located in Asia, excluding Japan. Clearwater currently manages approximately US$1.7 billion and engages in unique hands-on balance sheet restructuring and operational turnarounds of companies. Clearwater has six major offices located in New York, Beijing, Hong Kong, Mumbai, Seoul and Singapore.

42

Page 43: Pacnet Story 20101108

The Pacnet Senior Management Team

Brett LayChief Financial

Officer

CommercialFinance /

Pricing

Accounting /Billing / Tax /

Treasury / SAP

CorporatePlanning

InvestorRelations

Network Trading

Grace GuangGeneral Counsel

Regulatory Affairs

Legal Affairs

Company Secretarial

Affairs

Anne AdamSVP

Human Resources & Administration

Compensation& Benefit

Facilities &Administration

Business HR

TalentManagement

Systems &Policies

Learning &Development

Lorain WongSVP

Marketing &Communications

CorporateMarketing

Corporate Communications

BrandManagement

StrategicMarketing Programs

Chris WilsonSVP

Product Strategy & Management

Landing Parties

Product Strategy & Management

InvestmentStrategies

Bill BarneyChief Executive Officer CEO’s Office

Wilfred KwanChief Technology

Officer

Transmission/Network Planning

& Capacity Mgt

NOC

Service Delivery

ServiceEngineering

Complex Bids

ServiceAssurance

Call Centers

IT/MIS

Richard CardenSVP

Sales

- Australia- China- Europe- Hong Kong- India- Indonesia- Japan- Korea- Malaysia- Philippines- Singapore- Taiwan- Thailand- USA

IRU/Wholesale

Voice

Data Center

BusinessDevelopment

Product Development &

Deployment

IP & Cloud Computing

Corporate Website

Development

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Global Customer Support CenterLocated in Kuala Lumpur. Provides round the clock 24x7 service support:

• Multi-lingual• 24 X 7• Dedicated Customer Service Manager Support• Single Point-of-Contact, Single Point-of-Ownership

Responsibilities:• Real-time status updates, Problem tracking, Outage reports• Proactive customer notification for managed services• Language and translation of customer email support• Planned activity notifications

Network Operation Centers (NOCs)24 x 7 network operations facilities with fully mirrored

NOCs in Singapore and Australia

All locations work together as a virtual NOC 24/7 supporting Layers 1, 2 & 3; Real-time status updates for Pacnet CC Kuala Lumpur

• Terrestrial & subsea network monitoring• Fault isolation and restoration. Terrestrial / Subsea

repair and coordination of ‘Field Ops staff• 2 x Cable Ships (CS Reliance & CS Lodbrog) on

standby at Pacnet Subsea Depot in Taiwan• Tier 1 and Tier 2 support and Vendor Interface • Management of off-net and LL service providers

NOC

Customer Support

Customer Service & Network Operation Centers

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• NOCs (Singapore & Sydney), PSC and the Field Operations teams work as a single entity in serving Pacnet’s customers and overall network

• 24x7 Operations• Proactive network

management• Toll Free Access to

Multilingual PSC team

Our NOCs and Customer Service Team Direct a Field Service Organization With 200 Technicians and Two Ships

• Full visibility to all network elements • Field Operations with physical presence in Asia and US.• Managed over 80 technical facilities including Cable Landing

Stations, Telehouse and PoPs

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