From Nothing to Everything in Just Ten Months

From Nothing to Everything in Just Ten Months An Australian LMDS Story Mike Callen General Manager Agility Networks Pty Ltd 1

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Cable & Wireless Optus – Established in 1992 – Australia’s second full service carrier – Owns and operates full range of technologies – Some 6, 500 staff and 3 million customers – All market segments 5

The Opportunity 60% Optus EBITDA 40% Telstra: $5. 51 B 91% Optus: $0. 36 B 6% Others: $0. 20 B 3% Total: A$6. 07 B 100% Optus Other Optus 20% Telstra Other 0 Access Switching & Transport VAS The Australian Wireline Market 6 Sales, Service, Billing

Conclusion Opportunity is huge Established independent companies to focus on the new access technologies - LMDS and DSL 7

Agility Networks Pty Ltd – Wholly owned subsidiary – Licensed carrier – Owner of a spectrum licence – Wholesale provider 8

Our Challenge – No spectrum – No people or assets – Little capital – No parent commitments – 12 months behind – Poor perception of LMDS - A true underdog! 9

Our Goal To build a successful LMDS business – provision customers within 30 days of obtaining spectrum – but not later than 18 months from now! - A very big ask! 10

The Strategy To reverse the usual practice and develop the business ahead of winning the spectrum 11

What Did We Need to Do? - And everything else! 12

The Secrets of Our Success Clear Goal Simultaneous Execution Creative & Strong Energetic Governance Team Rigorous Technical Trials Pursuit of Spectrum And run really fast! 13

Strong Governance – Director Level CWO Steering team – Fortnightly reviews – Strict adherence to budget and schedule - but use a ‘stealth’ approach! 14

Clear Goal – Benchmark for all decisions – Broad and constant – Communicated widely – Reinforced with Staff - it drove all behaviour! 15

Simultaneous Execution – Business imperative – Several parallel paths – All plans had the same goal – Nimble attitude - all things at once! 16

Creative and Energetic Team – Small and focused – Separate from CWO – Specialists with expertise - a “motley crew”! 17

Rigorous Technical Trials – Leveraged CWO network – Early selection of vendor – Mitigated risk - Technical risk eliminated! 18

Relentless Pursuit of Spectrum – Lobbied Government – Examined JV – Promoted wholesale model – Auction - the right spectrum at the right price! 19

We Made It! 20

What We Achieved 2000 - And we beat our rival to launch! 21

Where to Now? "To be Australia's most successful provider of broadband services, by leveraging the speed, flexibility and reliability of fixed wireless technology. " 22

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