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Australian Broadband Services Pty Ltd

Australian Broadband Services Pty Ltd. Overview. The Telco / ISP market will be redefined by the rollout of the NBN Opportunities for smaller players to take substantial share in a shifting market Technology has evolved allowing a high level of outsourcing by well managed RSPs

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Australian Broadband Services Pty Ltd

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  1. Australian Broadband Services Pty Ltd

  2. Overview • The Telco / ISP market will be redefined by the rollout of the NBN • Opportunities for smaller players to take substantial share in a shifting market • Technology has evolved allowing a high level of outsourcing by well managed RSPs • Partnered with the world’s largest direct sales company, Cobra Group to implement a proven subscriber growth strategy • Management bring over a 100 years in Telco, ISP and online media success to ensure the best in execution • Targeting 300K+ subscribers, AUD250M in revenues and top 10 ISP position within 5 years • Raising AUD2M in the lead up to an ASX listing in 2012

  3. Deal Structure

  4. The NBN For the first time smaller Telco’s and Aggregators will have access to non discriminatory wholesale pricing Change of Government may lead to changes in implementation but too expensive to scrap the NBN Optical fibre to the home will shape the future of content delivery and consumer behaviour Opportunity to target millions of subscribers shifting to optical fibre or engaging for the first time

  5. Other Networks Telstra and Optus wholesale DSL will continue to service the majority of fixed line broadband customers for some years The ability to access wholesale supply through Aggregators and out sourced ISP solution providers creates a low variable cost model suited to ABS ABS will target areas due for connection to the NBN within 5 years and ensure a low cost NBN transition without costs associated with incumbent legacy systems

  6. Platform ABS platform to manage product access, payment processing, billing and CRM. Preferred solution provider Utilibill is proven in Telco sector.

  7. Market Size and Trends Telco market has seen 20 years of strong growth no signs of slowing down *Market size forecast chart for internet subscribers in Australia (excluding internet connections through mobile handsets) based on Australian Bureau of statistics growth trends and premises connection forecasts provided by NBNCo.

  8. Key Suppliers • Key wholesale rates negotiated and ready for integration

  9. The Cobra Group Partnered with Cobra - the World’s largest direct sales company • Extensive telecommunications sales experience • 2M+ Telco accounts signed in Australia • 7M+ Telco accounts signed in Europe • Success only fee structure ensuring cost base tied to sales • Proven partnership with Australian Power and Gas (ASX: APG) • Seed round investor

  10. SIO Forecast

  11. Business Strategy • Variable cost model directly linked to sales; • Success only fees for new accounts to Cobra • Transaction based fees for billing, provisioning and customer service platform • Wholesale supply deals linked directly to consumption • Competitive pricing with an unprecedented level of flexibility; • ‘pay as you go’ data plans increasing customer control over the billing • simple tiered data plans with unlimited switching • bundled VoIP, mobile, wireless broadband and energy • Partnerships with entertainment and media providers to cross promote and bundle media products as the optical fibre subscriber base expands

  12. Product Offering • At launch the ABS product offering; • Optical Fibre Cap and Pay As You Go Plans • ADSL2+ Cap and Pay As you Go Plans • VoIP phone plans (over the Internet or by dedicated fibre for NBN connected households) • Mobile Broadband Cap Plans • Mobile Phone Cap Plans • In home technology and data insurance • Year 2 product offering for expanded NBN market; • IPTV and VOD • Online Backup • Virtual Desktop • Power and Gas

  13. Management • 100+ years of combined experience in senior roles with Telco and online media companies • Chairman - Ian McGregorB. BS, CA, FICS. (Chairman: APG , CFO: OzEmail, Unwired) • CEO - Rob Appel B. A., LLB. (CEO: Chaos Group, Microview, Production Manager: OzEmail) • CTO Services - Andrew Kent B. Sc, Elec Engineering (CTO: OzEmail, Webcentral, MD: Uunet A Pac Operations) • CFO - Andrew CowlingCA., B. Econ, Accounting (CFO: OzEmail Interline, iSOFT, Group Manager: Bigpond) • Dir Marketing & Sales - Geoff IsaacB. A. (Dir of Marketing: OzEmail, Unwired, Engin)

  14. KPI’s

  15. EBITDA + NPAT

  16. Underlying EPS

  17. ROI

  18. P&L

  19. Balance Sheet

  20. Cash Flow

  21. Valuation Models

  22. Application of Funds

  23. Deal Structure

  24. Question

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