1. Tecnologias Móviles: Incremento de Teledensidad Andicom 2003 – Cartagena, Colombia JOSE F. OTERO

2. Slide Number 1 Agenda More spectrum? Next Generation Services Requirements Pending Issues Latin America’s Spectrum Licensing Scenario Competition, Technologies and New Services Addressing the Market: Segmentation The Roaming Myth Conclusions

3. Slide Number 2 Perspectiva La finalidad de la sociedad de la informacion es el ser humano. Manuel Martinez Nino, Andicom 2003

4. Slide Number 3 More Spectrum? Traditionally the next generation services debate centered on the need for more spectrum The 2000 World Radiocommunication Conference (WRC) adopted the resolution that approximately 160 MHz of additional spectrum will be required in order to meet the capacity needs of the high traffic areas by 2010.

5. Slide Number 4 Next Generation Services Requirements High-speed, high-bandwidth mobile wireless services (termed “3G”) in many cases warrants additional spectrum allocation. Additional spectrum allocations do not preclude the incentive for operators to maximize efficient spectrum use. Spectrum aggregation limits are no longer necessary to stimulate competition nor to encourage spectrum efficiency enhancements. Coverage and capacity are currently emerging as key competitive factors. Band-clearing compensation payments will emerge as the solution to the problem of incumbents squatting on valuable spectrum.

6. Slide Number 5 Pending Issues Need to define and clear RF Spectrum Bands Allocation bandwidth Number of licenses Licensing schedule and process need to be determined Flexibility in spectrum acquisition policy Harmonization of spectrum frequencies Emerging technologies, such as smart antennae and software defined radios, have the potential to help solve the spectrum crunch, but they do not preclude the need for additional spectrum allocations.

7. Slide Number 6 Latin America’s Spectrum Licensing Scenario Historically Inefficient Characterized by delays, postponements and the absence of bidders Licensing Method to be determined Beauty Contest Auction Hybrid Not a “Cash Cow” Regulatory Uncertainty

8. Slide Number 7 Competition, Technologies & New Services MVNOs Wi Fi Expansion of CPP 3G Data Services WLL Emergence of Full Service Providers Broadband Services The Handset Market

9. Slide Number 8 Segmentation Determine Geographical Usage Patterns By Using Network Data Tools: Static Areas & User Specific Source: TeleFinance 2003

10. Slide Number 9 Segmentation Redirect Marketing Campaigns and Distribution According to Client Patterns Source: TeleFinance 2003

11. Slide Number 10 Handset Distribution By Geographic Segmentation Target Segments with Affordable Handsets that Encourage More Robust Usage Source: TeleFinance 2003

12. Slide Number 11 The Roaming Myth Not all markets are equal US rural operators Western Wireless Rural Cellular Dobson Communications Caribbean operators Barbados Case Regulatory impediments for roaming Looking into Mexico

13. Slide Number 12 Conclusions There’s not a single solution to the diminishing addressable market problem Profitability will continue to drive operators decisions Regulatory agencies need to provide the necessary means to promote an increase on teledensity Voice will continue to be the killer application during the next several years: NO VAS SERVICE WILL REPLACE THIS TREND Segmentation needs to evolve with the market

14. Slide Number 13 GRACIAS! Jose F. Otero Telecoms Practice Director Jotero@infoamericas.com