First alternative international long-distance call service provider in HK (1992)

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1 Profit from Unlimited Bandwidth City Telecom (HK) Ltd. Hong Kong Broadband Network Ltd. Ricky Wong Agenda Company Profile Our Next Generation Network Encouraging Results High Bandwidth Applications Future of Internet World 2

2 Company Profile First alternative international long-distance call service provider in HK (1992) NASDAQ and Hong Kong Stock Exchange listed company with 2,500 employees Hong Kong Broadband Network Ltd, wholly-owned subsidiary of CTI, is the largest alternative end-to-end network in Hong Kong 100% self-built IP network with 1.3 million homes passed, independent from incumbent operator 3 Company Profile Committed in network coverage expansion to 2 million homes passed (~ 95% of total homes in HK) & 1,500 high-rise commercial buildings in next 3 years Provision of a full suite of fixed telecom network services 1Gbps, 200Mbps,100Mbps, 50Mbps, 25Mbps and 10Mbps broadband Internet access VoIP (on-net & off-net) IP-TV Corporate data Backbone services to HK mobile operators All-IP triple-play aggregate of 660,000 subscriptions 4

3 Awards Best Brand for Internet Service Provider ezone Award 2007 Global 2005 (GES) Award HKMA/TVB Awards for Marketing Excellence 2006 Contact Centre of the Year "Call Center of the Year" & "Customer Service Center of the Year" (2005) Best Brand Award 2005 (Broadband Service) 5 Agenda Company Profile Our Next Generation Network Encouraging Results High Bandwidth Applications Future of Internet World 6

4 The First Metro-Ethernet Carrier Network in HK <100 meters of Category 5e Copper Wiring LAN Switches within 100m of end users Fiber-To-The- Building 7 The First Metro-Ethernet Carrier Network in HK TDM E1 Circuit Emulation STB IPTV VoIP 1000M 100M Broadband Core Internet Backbone Network 10M N * 10GE/GE Internet Core N * 10GE/GE ONS Cisco IP+Optical Network N * 10G DWDM/ROADM N * 10GE/GE IP Multicast Video Servers N * 10GE/GE 8 1

5 GPON Deployment Gigabit-capable Passive Optical Network (GPON) Fiber-to-the-home (FTTH) enabled No passive device required between customers premises and central office Save maintenance cost and enhance operation efficiency Adopt it in single building with low density 9 Service Demonstration 10

6 Agenda Company Profile Our Next Generation Network Encouraging Results High Bandwidth Applications Future of Internet World 11 Most Comprehensive Broadband Service Suite Positioning Monthly Fee Local Downstream Local Upstream Premium (Unmatched Service) HK$1,688 HK$688 1,000 Mbps 200 Mbps 1,000 Mbps 200 Mbps Mass Market (Premium to PCCW) HK$298 HK$238 HK$ Mbps 50 Mbps 25 Mbps 100Mbps 50 Mbps 25 Mbps Value (Premium to HGC and icable) HK$ Mbps 10 Mbps 12

7 Reverse Digital Gap In Hong Kong, HKBN has created a Reverse Digital Gap whereby the mass residential market on HKBN s network coverage now enjoys superior value and choice (10/25/50/100/200/1000 Mbps) for broadband services 13 Increasing Bandwidth Demand More than 50% of current subscribers are now on symmetric 25Mbps-100Mbps bb10 bb25 or above 14

8 Increasing BN ARPU Average Revenue Per User (ARPU) is almost 3 times than 2 years before, while the overall churn rate is less than 1 % 15 Increasing Revenue Our revenue keeps increasing while the overall churn rate is less than 1 % Revenue of Fixed Network Operation

9 Agenda Company Profile Our Next Generation Network Encouraging Results High Bandwidth Applications Future of Internet World 17 Importance of Symmetric Speed Upload traffic is 3 times more than download traffic nowadays Almost all of the innovative applications rely on high upload speed *Weekly statistics from HKBN 18

10 bbbox Self developed innovation that allows authorized TV access of content stored on any PC on HKBN s network Plays to the symmetric bandwidth advantage of HKBN s Network Home PC connected to bbbox bbbox - Share what your friends have TV playing files in PC Internet Friends PC Sharing 19 bbdrive Backup your files Share video/ pictures with your friends 1Gbps BN speed could enable you to access the files to bbdrive as easily as to your local drive 20

11 Near VOD Drama Buffet Near-Video-On- Demand Service: Runs IPTV content on broadband Network 21 Agenda Company Profile Our Next Generation Network Encouraging Results High Bandwidth Applications Future of the Internet World 22

12 What s next? 1Gbps to the home Globally, there are already 12 million Fiber-To-The-Home subscribers, ie HKBN is not alone in delivering ultra-high bandwidth services In Japan, legacy copper xdsl subscribers are showing monthly decline as FTTH becomes the service of choice 23 What s next? Ultra high bandwidth application will become industry norm P2P TV Transmission via different media 24

13 Don t make this mistake! If we simply buy content, the strength may disappear overnight if we lose the content right That s why we build our own infrastructure! Advanced technology enable us to provide ultra high connection speed It could be last over years 25 End Thank You