key achievements 9m08 ……..……..……………………………………. initiatives &...
TRANSCRIPT
Key Achievements 9M08 ……..……..…………………………………….
Initiatives & Challenges for 4th Qtr 2008.………...……......................
Business Units Report …………...………………………………….……
Page 2
Page 11
Page 15
VIT Shareholder MeetingNew York City – October 23, 2008
Key Achievements
Whole Company – YTD08 ResultsExpressed in Millions of US$
• Revenues closed at $ 62M, 39% more than last year and 2% less than budget.
• EBITDA was $ 11.5M, 19% of revenues, 34% better than 2007 and $ 585K less than budget.
• Residential BU had revenues of $ 44.6M, 37% more than 2007 and 7.5% better than budget.
• Corporate BU closed with revenues of $10.8M, 4% better than 2007 and 6% more than budget.
• Advertising BU posted revenues of $ 2.2M, 22% better than 2007 and 19% more than budget.
• NUI BU had revenues of $4.4M, 54% below budget due to technical platform delays.Pág. 3
44,7
63,1 62,0
18,0
29,9 25,3
18,0
23,6 26,0
8,612,1 11,5
Revenues Cost of Sales SG&A EBITDA
9M07 Budget 9M08
EBITDA 34% better than 2007
Residential Business Unit
• YTD EBITDA 8.1% better than Budget and 59% above equivalent period of 2007.
• 96% collection completely aligned with budget, despite difficulties with SENIAT regulations and the
monthly billing process. We have not physically invoiced subs during the whole year.
• 30% YTD relative EBITDA .
• Deployment of DOCSIS 2.0 in Guatire to deliver Broad Band and Voice services over one single CPE.
• Popular areas in Guatire 100% operative under our franchisees model.
• Implementation of BOSS (1) in 4 cities (Caracas, Guatire, Maracay and Barquisimeto).
With the adoption of this new system, we decide to count subs on a 30 days base, hence producing a
healthier portfolio.
• Sport Plus channel introduced in Puerto Cabello, Mérida and San Cristóbal.
Pág. 4
Corporate Business Unit
Key Achievements
• YTD EBITDA 16% better than budget.
• 5 points less in cumulative erosion as % of revenue vs 2007.
• 58% growth in average monthly installations vs 2007.
• Historical record on September sales since 2004.
• First “JumboLAN” (100Mb Metrolan) sold to BANESCO.
• All time telephony sales record with 385 new lines during 3Q.(1) BOSS: Business Operating Support System
Key Achievements
Pág. 5
• 40+ services launched last month, and record activation of calling cards in Florida at a clip of 4,200 /
day.
• Interconnection negotiations with more than 10 international providers.
• Wholesale termination over NGT network started 45 days sooner than expected.
• SIP Proxy installation in Portugal.
• Implementation of “Rate Management Tool” application to control rates.
• Price adjustments in La Propia calling cards.
• Expansion to 120 channels of GW in Caracas, and migration of LD Telecom’s DID’s to NEXTONE.
• New access numbers for prepaid LDXpress in Venezuela.
• Connection of new ISP - Cogent in MDV. (Waiting for traffic migration).
NetUno International
Regulatory & Legal Affairs• Plan C put in place consisting in deployment of “Vonage-like” telephony services throughout the required
cities.
• Visit to Colombian regulatory head as part of NUI expansion, and support of licenses and IX contracts.
• A. Scharffenorth appointed as speaker at ministerial Caribbean Telecom Union meeting on October 08.
• Development and execution of regulatory strategy for NGT- NetUno fusion
Key Achievements
Information and Technology
• Implementation of BOSS in 4 cities according to schedule: Caracas,
Guarenas, Maracay, Barquisimeto.
Pág. 6
Internal Communications & Events• Celebration of the NETUNO day: Celebration for the 13th year birthday.
• Family Sunday: Employees shared a Sunday with the NETUNO and family. 76% nationwide attendance.
• Delivery of monthly bulletin “Conéctate a tu Empresa”, 8,500 + issues nationwide.
• Tour 41: Gilbert talks face to face with employees: nearly 100% attendance.
• Celebration of 2nd sport tournament with a 60% attendance.
• Delivery of more than 635 birthday letters to all our employees across the nation.
Human Resources• Launched new program of Performance Evaluation.
• We started to apply tests to candidates to evaluate attitudinal profiles.
Corporate Social Responsibility• NetUno is starting a structured program to support the community offering integrated Internet
service and PC’s to low income area schools. This year we gave the service in one school in
Guatire, our goal is to bring Internet and PC’s at least in one school in every city every year.
• NGTV – NETUNO network integration. 1.- SDH_Microwave Backbone Caracas - Maracaibo. 2.-
Telephony VoIP & TDM. 3.- IP & PDH access networks.
• DOCSIS 2.0 and PacketCable 1.0 deployed in Guatire to impulse voice services over HFC.
• BW Manager and HTTP Proxies installed in every city which offers internet broadband, reducing BW
consumption by 22% without affecting BB service performance.
• DUMS version 3 (Provisioning server): Development of a new software to keep billing control on new
voice subscribers without human intervention in every part of the provisioning process.
• Increase of MetroEthernet coverage in Caracas and Valencia by migrating voice and data traffic from
SDH Networks, releasing capacity.
• Digital Video HeadEnd solutions on analysis phase.
• Adjustments on Fiber Optical Network to deploy MetroEthernet Ring Expansion in Caracas and Valencia.
• MPLS Platform successfully upgraded.
• Increase of internet backbone capacity with a new 45 Mbps link and a 10 Mbps link for VoIP traffic.
• Activation of BGP as new routing protocol enabled by Core Routers upgrade.
Engineering & Operations
Key Achievements
Pág. 7
Finance
• VIT’s restructuring totally completed.
• First payment to J. Rey funded at Bs.F.3.3/$ and ready to be made on Nov 7. Parallel XR Bs.F. 5.2/$.
• $ 750K drawn down from BANCO DEL CARIBE’s $1.5M pre-approved revolving credit to cover WC and
CAPEX needs on strategic projects of NETUNO.
• New credit lines with mayor Venezuelan banks have been activated without problems.
• Almost 100% of the CAPEX executed YTD bought through CADIVI at the official XR Bs.F. 2.15/$.
We were one of the first companies to obtain a certification from government to import capital goods.
• BSG and affiliates have purchased for us equipment with markups up to 25%.
• Completed the acquisition of CNH/NGTV. Merge and integration processes on plan.
Key Achievements
Pág. 8
Planning• Completed the revision of our Vision, Mission and Values with the participation of 75 executive members.
This will help enter this new era of growth with more momentum and an expanded ownership base. A
formal communication plan is underway.
• Planning and budgeting processes are running, and are estimated to be completed by mid November.
Request of approval from the Board will be made by late November or early December.
• A team of four members of NETUNO went with a team of Merrill Lynch and other advisors to analyze the
USVI opportunity.
• Outlook for 2008 is indicating for $ 90M in Revenues and $ 18M in EBITDA.
Pág. 9
CNH / NGTV Acquisition Overview
Key Achievements
• On August 25 we completed a three month due diligence process to buy CNH-NGTV shares, a
company which owns licenses to provide National Data Transport, Wireless Access, Private Networks,
Domestic & International Long Distance and Internet.
• The most important contributions of this acquisition are:
1.- A substantial increase of interconnection capacity to complete national and international calls.
2.- Independent interurban transport capacity via microwave from Caracas to Maracaibo, which
reduces dependency from CANTV.
3.- Substantial increase of TDM E-1’s to connect new end corporate customers on an ANS
Ericsson voice switch identical to ours.
4.- Avoid a very expensive and disruptive node move.
5.- For the first time allows us to offer wireless services, which among other benefits allows us to
install customers much quicker and in places we cannot reach with fiber.
6.- A very attractive payback period and very comfortable payment terms. In addition it avoids a
competitor from entering this space.
7.- Avoids a $3 million income tax cash payment in March 09.
• We expect to increase our transport capacities by a factor of 7, in a project that will begin in 2009 and
completed in 2011.
• STM1 CCS - MBO used only up to 60%
• 23 E1 available for transportation backup from Caracas to extreme Western Venezuela.
• 50% participation of voice services to be delivered in a 6,000 home residential complex in Barquisimeto.
• Wireless data delivery network on open frequencies and proprietary technology by MOTOROLA CANOPY
• Independent interurban transport capacity via microwave from CCS to MBO.
• Tax Loss Carry Forwards avoid our disbursing an Income tax payment next March, currently estimated at
$3 million at the official exchange rate
Pág. 10
CNH/NGTV Acquisition. Advantages and Progress Report.
Key Achievements
Activity Start Date End Date
Gateway Installation AS5350 to enable VoIP interconnection between NetUno &
NGT in El Rosal23/09/2008 24/09/2008
IP assignation to activate VoIP traffic 25/09/2008 25/09/2008
Connection to NGT's ANS to the first 5 E1s of GW AS5350
25/09/2008 25/09/2008
Dispatch of Wholesale traffic from Nextone to 5 E1s connected
25/09/2008 26/09/2008
Expansion from 5 to 8 E1s between GW AS5250 and El Rosal's ANS
08/10/2008 08/10/2008
Release of a second GW AS5400 to connect 4 additional E1s
13/10/2008 15/10/2008
VoIP traffic migration from a converter to a new ESU, increasing IX reliability 19/10/2008 19/10/2008
Initiatives in Progress
Pág. 12
Residential Business Unit
• 30K two way homes passed conversion project by 1st Qtr next year on time.
• Development of new CATV networks in low income zones in Barquisimeto with commercial allies.
• Negotiations to bring our services in a new residential zone El Encantado (over 45K HP)
• Head End digitalization in Valencia & Maracay scheduled for end of year.
• Preparation of recently acquired NGT network to bring BB and Telephony services in Barquisimeto.
• Be very attentive to the launch and progress of Movistar’s new DTH offering.
Corporate Business Unit• Banco de Venezuela internet mega contract to be installed in November
• New SDH 155Mb layer being evaluated to meet legacy carriers needs.
• Certification and merge of NGT infrastructure into corporate capacity inventory, including strategy
for wireless “beachheads”.
• Execute savings produced by NGT transport capacity incorporation.
• Pursue of exclusive telecom services agreement for new bus and metro “Estación Central” hub in
Plaza Venezuela which includes 250 stores
Pág. 13
NETUNO International
• Everything ready to launch pre-paid LDXpress and Pin Frees simultaneously in Venezuela and the USA.
• Close the acquisition of ECONOTEL in November 2008, and cover it under NetUno branding as of 1 st Qtr
2009.
• Preparing web sites to launch operations in the USA and Portugal on a first phase.
Colombia and Panama will be introduced on a second phase.
• Monitor NETUNO International operations from the NOC in Venezuela.
• Improve the costing, LCR (least cost routing) and routing of Wholesale with NEXTONE.
• Discussion in Portugal to interconnect with PT.
• Negotiations with ETB and TIGO have been advanced in Colombia, as well as with C&W in Panama.
• Evaluation of BOSS in Colombia to improve the billing process.
Initiatives in Progress
• Development of Digital Video HeadEnd to support premium channels.
• AC and DC Power Systems Upgrade.
• Softswitch Platform Software Upgrade.
• 5 new POIs to be opened with Telefónica Movistar to have nationwide interconnection.
• Development of new Multiservice Access Platform capable to handle ADSL2+, VDSL and VoIP POTS.
• Geographic Information System on final evaluation phase. This system will allow to manage a database of
every passive device that NetUno has installed nationwide.
• Design of Gigabit Passive Optical Network as an alternative solutions to transmit Video (Analog, Digital or
IPTV), Voice and Data either Residential or Enterprise Market instead of HFC Networks.
Engineering & Operations
Pág. 14
Information and Technology
• Implementation of BOSS in the rest of the cities according to schedule.
• More than 170 PCs & laptops replaced in all cities.
Finance & Planning• Auditing process for year 2008 starting by mid November.
• New communicational plan to be executed by Vice-presidents simultaneously in the nation in early 2009.
• We expect to profit from the tax shield produced by the CNH/NGTV acquisition.
• We plan to back new credit lines with banks using land acquired from the recent NGTV transaction.
Initiatives in Progress
Residential Business Unit
P&L Comparison – 9M08*expressed in US$M
• Revenues closed at $44.6M, 37% more than last year and 7,5% better than budget.
• EBITDA was $13.5M, 30% of revenues, 59% more than 2007 and 17% better than budget.
Pág. 17
32,5
41,544,6
12,515,5 15,3
11,5
14,515,9
8,511,5
13,5
Revenues Cost of Sales SG&A EBITDA
9M07 Budget 9M08
EBITDA 59% over 2007 and 17% better than budget
Residential Business Unit
EBITDA / COGS / SG&A Ratios – 9M08*expressed in %
• EBITDA ratio has improved versus Budget and last year.
• Even though G&A ratio have decreased one point, our COGS ratio improved five points.
Pág. 18
30%
26%28%
21%
24%
27%
30%
33%
9M07 Budget 9M08
EBITDA/ Revenues
34%
39%37%
35% 35%36%
30%
33%
36%
39%
9M07 Budget 9M08
33%
36%
39%
42%
COGS/ Revenues G&A/ Revenues
Residential Business Unit
Revenues Distribution – 9M08*expressed in US$M
• Total Revenues increased 37% more compared
to 2007 and 7.5% to budget.
• CATV remains the most important business unit,
39% above last year and 9% better than budget.
Collection / Revenue Ratio 9M08*expressed in US$M
• Collections have improved closing at $42.6M,
33.4% above last year and 7.1% better than
budget.
• Collection ratio presented a slight drop of 1 point
as presubscription line collections are being
included and affect the traditional ratio.
Pág. 19
30,5
38,9 42,4
1,8 2,2 2,1 0,2 0,4 0,1
CATV Internet Telephony
9M07 Budget 9M08
31,9 39,842,6
96%98%95%
-
5
10
15
20
25
30
35
40
45
50
9M07 Budget 9M08
0%
20%
40%
60%
80%
100%
120%
Collections Ratio
Residential Business Unit
Subscribers
• Basic subs decreased 0.8% compared to December 2007, and closed 4.7% below budget. CATV
Penetration remains flat.
• Broadband subs grew 14% compared to last year, though 11% below budget.
• Telephony subs still below our expectations.
Pág. 20
5.544
7.096 6.304
1.272
2.240 1.137
Broadband Internet Telephony
9M07 Budget 9M08
114.121 118.867
113.249
22%23%
22%
108.000
111.000
114.000
117.000
120.000
9M07 Budget 9M08
0%
5%
10%
15%
20%
25%
CATV 30d subs Penetración CATV
Residential Business Unit
Franchisees*expressed in US$K
• Franchisees revenues have been increasing steadily, surpassing our expectations.
• Petare YTD Revenues increased 79% compared to 9M07, and Sarria over 719%
Pág. 21
Cablenorte Petare Revenues Cablenorte Sarria Revenues
$1.176
$283
$603
$2.106
$0
$500
$1.000
$1.500
$2.000
$2.500
9M07 9M08
CableNorte Revenues NetUno Revenues
$50$11
$140
$410
$0
$100
$200
$300
$400
$500
9M07 9M08
CableNorte Revenues NetUno Revenues
Residential Business Unit
Franchisees*expressed in US$K and units
Pág. 22
Cablenorte El Valle Revenues Subscribers
$158
$43
$0
$100
$200
9M08
CableNorte Revenues NetUno Revenues
7.059
5.7861.488
578668
00
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9M07 9M08
-100
400
900
1.400
1.900
2.400
Petare Sarria El Valle
• Subscribers indicators have also improving 22% in Petare and 157% in El Valle,
compared to 9M07.
• We started new operations in El Valle, reporting excellent results.
• Franchisee subscribers are not included in our total sub-count.
Residential Business Unit
Hard Churn
• Hard Churn had a slip of less than 1%, as a
result of efforts to have a healthier client
portfolio.
ARPU*monthly average
• ARPUs have increased in all the lines of
services except for a slight slip in Telephony
compared to last year.
• CATV and Internet grew 33.7% and 8%
compared to 9M07.
Pág. 23
2,1%19,7%
19,2%
20,4%
2,2% 2,3%
9M07 Budget 9M08
Hard Churn Monthly Average
30,5
36,9
40,8
34,536,5
37,3
14,912,012,4
CATV Internet Broadband Telephony
9M07 Budget 9M08
Corporate Business Unit
P&L Comparison - 9M08*expressed in US$M
• Even though wholesale services were transferred from Corporate Business Unit to
NetUno International Unit, revenues closed at $10.8M, 3.9% better than 2007 and 6.4%
more than budget.
• EBITDA ended at $2.5 M, 26.4% more than last year and 16.3% better than budget.
Pág. 25
10,3 10,110,8
5,0 4,85,0
3,4 3,2 3,3
1,92,1 2,5
Revenues Cost of Sales SG&A EBITDA
9M07 Budget 9M08
EBITDA 16% better than budget
Corporate Business Unit
Revenues Distribution - 9M08*expressed in US$M
• Data Revenues grew 24%, Corporate Telephony 5%, Internet 1.3% and Canales 347% versus 2007.
• Versus budget, Internet and Telephony revenues were slightly lower due to delays in platform installation
caused by CADIVI delays in authorizing equipment importations.
Pág. 26
0,080,12 0,04
3,33,5
4,1
2,42,6
2,42,5
3,1 2,6
1,8
0,40,5
0,20,4
1,0
Affiliation Data Internet Telephony WS & IX Canales
9M07 Budget 9M08
Corporate Business Unit
Sales Goals – 9M08*expressed in US$K
• Accomplishments per Sector: Large: 122%, Carrier: 95%, PYME: 102%
• Accomplishments per Services: Data: 124%, Internet: 142%, Voice: 75%
• Voice below expectations due to low unit sales compared to budget.
Sales per Sector Sales per Services
Pág. 27
10288
107
38
74 71
92 94 95
Large Carrier PYME
9M07 Budget 9M08
107
78
97
6979
111
56
86
65
Data Internet Voice
9M07 Budget 9M08
Corporate Business Unit
Services Review – 9M08Number of services
• Corporate BU services had an total growth of
9.7% compared to last year 9M and a slight drop
versus budget due to Telephony units.
• Versus 2007, Data Services grew 8.4%, Internet
13.4% and Telephony 8.6%.
• Compared to last year, Data ARPU grew
10.8%, Internet 16.3%
•Versus budget, Data ARPU grew 21.2%.
Internet 39.1%
• Telephony ARPU is below expectations.
ARPU Review – 9M08Expressed in US$
Pág. 28
453 500 491
1188
14021347
3533
4513 3838
Data Internet Telephony
9M07 Budget 9M08
943 862
1045
263
220
306
80 82 73
Data Internet Telephony
9M07 Budget 9M08
Corporate Business Unit
ARPUs Performance - 2008*expressed in US$
Pág. 29
1.045
961
976 987
880
920
960
1.000
1.040
1.080
Jan Feb Mar Apr May Jun Jul Aug Sep
Data
272 281 307 306
73
7771 82
0
100
200
300
Jan Feb Mar Apr May Jun Jul Aug Sep
Internet Telephony
• Even though the currency exchange hasn’t changed, Corporate ARPUs have increased all
along the year due to a better mix of services and application of less discounts.
Corporate Business Unit
Churn - 9M08*expressed in US$ K
• Churn increased 6% compared to budget, due to telephony desertions but Churn/Sales Ratio has
improved from 24.6% to 19.7%
• Corporate collections increased $632 K compared to 9M07.
Collection - 9M08*expressed in $US M
Pág. 30
7,48,0
Total
9M07 9M08
57,1
50,6
53,8
19,7%19,8%
24,6%
46
48
50
52
54
56
58
9M07 Budget 9M08
0%
5%
10%
15%
20%
25%
30%
Churn Churn/Sales Ratio
Corporate Business Unit
Monthly Average Installations *expressed in $US K
• Installations grew 58% compared to last year with a monthly average of $42 K.
• Pending installations also grew in a 70% compared to 9M07, with a monthly average of $157 K.
• The main reason of pending installations was related to buildings in the process of being
activated.
Pending - 9M08
Pág. 31
26
42
92
157
Installed Pending
9M07 9M08
25%
3%
0%
37%
8%26%
1%
No Active Building Pending CustomerPending Hardware Pending Network
Last week received Pending AdministrativeIn process
MCM Business Unit
P&L Comparison – 9M08*expressed in US$M
• Revenues closed at $ 2.2M, 22% above last year and 19% above budget.
• EBITDA surpassed expectations closing at $1.0M, 50% above budget.
Pág. 33
1,8 1,8
2,2
0,40,5
0,5 0,40,7 0,7
1,00,7
1,0
Revenues Cost of Sales SG&A EBITDA
9M07 Budget 9M08
EBITDA 50% better than budget
Financial Results – 9M08
NUI Results
Results Actual BudgetMillions of US$ 9M08 9M08 $M %
REVENUES 4,44 9,59 -5,15 -54%
COGS 4,53 9,06 -4,52 -50%
SG&A 1,71 1,82 -0,11 -6%
OPERATIONAL EBITDA -1,81 -1,29 -0,51 -40%
FX Profit 0,73 2,51 -1,78 -71%
EBITDA -1,07 1,22 -2,29 -188%
Variation
NetUno International
Revenues Details – 9M08
BudgetThousands of $US 1Q08 2Q08 3Q08 YTD08 YTD08 $K %
REVENUES
ATAS 2 0 0 2 613 -611 -100%Pinfree 16 62 19 96 151 -54 -36%Calling Cards 2 57 620 680 623 57 9%Instatelcos 0 0 0 0 0 0 -Others 4 24 -9 19 186 -167 -90%Canales 0 0 40 40 0 40 -Wholesale 975 1.204 1.420 3.599 8014 -4.415 -55%
Total NUI Revenues 999 1.348 2.090 4.437 9.587 -5.150 -54%
Actual Variation
La Propia Sales
Pág. 36
Calling Card La Propia USA Sales at October 15th, 2008
Months La Propia $5 La Propia $3 Sales **June-08 8.000 15.000 $ 58.630
July-08 8.000 20.000 $ 69.000
August-08 36.000 108.000 $ 347.760
September-08 20.000 65.000 $ 203.550
October-08 20.000 10.000 $ 75.900
TOTAL SALES $ 754.840
** Sales after commissions
Price Adjustments
Pág. 37
La Propia Calling Card
• Prices were adjusted on September in order to be more profitable in Central American destinations, a new adjustment is scheduled to be effective on November 1st.
Top Destinations MinutesHaiti 953.854 Nicaragua 598.915 Venezuela 249.286 Honduras 199.124 El Salvador 159.762 Guatemala 102.640 Colombia 33.441 Sub Total 2.297.022
Others 73.754 Total 2.370.776
September 08
• La Propia Calling Card has been used all over 18 States in USA.
La Propia Calling Card Activations
18 States
Initiatives in Progress
Pág. 40
Product Family Brand Technology Access CallsMulti
AccessUSA Colombia Portugal Panamá
LDXpress LDXpress Prepaid Pin FreeAny Line Fixed
or MobileOutgoing YES 1Q 1Q N/A 2Q
LDXpress LDXpress Lite I DIDs Any Line Fixed Incoming NO 1Q 2Q 3Q 2Q
LDXpress LDXpress Lite II DIDsAny Line Fixed
or MobileIncoming NO 2Q 3Q 3Q 3Q
La Propia La Propia PinAny Line Fixed
or MobileOutgoing YES 1Q 3Q 1Q 1Q
FlashPhone FlashPhone MTA Internet BBOutgoing Incoming
NO 1Q 1Q 1Q 1Q
FlashPhone FlashPhone USB USB Internet BBOutgoing Incoming
NO 1Q 1Q 2Q 1Q
Flash Phone IPBX MTA Internet BBOutgoing Incoming
NO N/A N/A N/A N/A
NUI Telephony Matrix Products
NGT_NETUNO Voice & VoIP Network
CANTVDDE
AS5400
AS5302 FE0216.72.89.243/2
83xE1 PRI
1xE1 PRI
2xE1 PRI
8xE1 PRI
SIP ServerAsterisk
ngtvmaq1
FE0216.72.89.247/28
FE0216.72.89.241/28
RouterImageStream
0/21 0/2
0/22 0/16
FE
0 21
6.72
.89
.242
/28
FE0216.72.89.245/28
2xE1
2xE1
CPA CANTV
R21xE1 (1024Kbps)
S0 - 206.49.193.238/30S1 - 206.49.193.42/30
MeridianCCS
R22xE1
S0 - 206.49.193.236/30S1 – 206.49.193.40/30
0/8
0/23
SW1
SW2
0/1
0/1
0/4
FE
0 64
.241
.16
9.1
50/
29
SIP ServerAsterisk
ngtvmaq2
SS74xE1
5xT1
DTXCCS
DTXLA
AT&T 1xE1
EquantInternetAccess
LDN VOICE NETWORK
(CANTVMOVISTARTMOVILNET
DIGITELDIGICELNETUNOINFONET)
R22xE1
GlobalCrossing
SS71xE1
NxE1
NGTV
SSP
EricssonANS TL
FE0172.17.32.11/24
2xE1 PRI
AS5304
CANTVDDS
CPA CANTV
VerizonVoIP/Data
NetworkAS5306
AS5305
2xE1 PRI
2xE1 PRISW3
AS5301
Mera Softswitch
208.50.70.29/28
SIP Server Asterisk LIG Services
208.50.70.20/28
NGT-NETUNO Backbone Network
• EL Morro (Valencia): PDH access networks.• Irapa (Gran Caracas): Backbone networks (equipments & Tower
AC POWER System Upgrades
•Mobile generator in order to supply outage electrical power• Replacement of electrical cable supply
WAN: Current Capacities
La Urbina Internet/VPN
FDDI
FDDI
Catalyst 4006
FWJuniper NS50
Cisco 2610
Barquisimeto
Mérida
San Cristobal
MaracaiboMaracay
Guarenas
Valencia
Plaza las Américas
El Paraíso
512Kbps
512Kbps
128Kbps
256Kbps
512Kbps
512Kbps
1024Kbps
256Kbps
256Kbps
Cisco 1720
Cisco 1750
Cisco 1750
Cisco 7206
Cisco 7206
Cisco 1720
Cisco 7206
Cisco 1005
Cisco 805
La Candelaria
256KbpsCisco 805
La Candelaria
Internet
Support Units, IT
WAN: 4th QTR Projected Capacities
La Urbina Internet/VPN
FDDI
FDDI
Catalyst 4006
FWJuniper NS50
Cisco 2610
Barquisimeto
Mérida
San Cristóbal
MaracaiboMaracay
Guarenas
Valencia
Plaza las Américas
El Paraíso
1024Kbps
1024Kbps
1024Kbps
1024Kbps
1024Kbps
512Kbps
1024Kbps
256Kbps
256Kbps
Cisco 1720
Cisco 1750
Cisco 1750
Cisco 7206
Cisco 7206
Cisco 1720
Cisco 7206
Cisco 1005
Cisco 805
La Candelaria
256KbpsCisco 805
La Candelaria
Internet
Data Link to be upgraded
Support Units, IT
Application Server 3
ApplicationServer 2
Application
Server 1 DB Server (Oracle)
Brocade Fiber (8 PORTS)
SAN 1 TByte
Cisco 2610
Storage DELL CX310
Juniper NS50
BRANCHES
Catalyst 2960 1GB PORTS
BOSS: Platform Architecture
Support Units, IT
• Salaries were adjusted in March 24.2% on average. A further market adjustment for ATC
representatives and Ops&Eng personnel was made in May and July.
• In October a new adjustment will be done for those employees which had less than a 30% salary
increase in 2008, the impact is 5.2% in our payroll.
Salary Adjustments
Support Units –Human Resources
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Training
72%
22%
6%
Personal DevelopmentTechnical TrainingInformation
27,606 Man hours all 2007 20,295 Man hours 9M08
• At the end of 2008 we will give more than 28,000 Man hours in Information and training
64%
28%
8%
Personal DevelopmentTechnical TrainingInformation
Support Units –Human Resources
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Headcount Turn Over
• Turnover Rate improved since 2006, closing at 9% in 1S08.• Client Service Representatives was the area where we had more turnovers, for that
reason we did an adjustment in their salary.
72
8576
6167
9%8%11%12%
18%
0
10
20
30
40
50
60
70
80
90
1S06 2S06 1S07 2S07 1S08
0%
5%
10%
15%
20%
25%
30%
Employees Turnover Rate
Support Units –Human Resources
Pág. 54
LOPCYMAT
• Since 2007, NetUno began an effort to comply with LOPCYMAT, until now we have fulfilled 90% of our obligations.
• 97% of job risks notified, 91% of committees registered and we have provided safety equipment to our employees.
3%
97%
Risks to be advised Advised Risks
9%
91%
To be registered Registered
Job Risk NotificationsBase = 801 employees
Health and Safety CommitteesBase = 35 offices
• On September 12 and 13 we went over our VMV statements. This meeting was held in the same place
where we did it for the first time in February 2001. 72 high level executives participated on it
• Our Vision hasn’t changed.
• Our Mission changed to include new business and enhance the importance of CATV.
• 3 new Values were included. Innovation, Diversity and Enjoy Working.
• 8 Values were revised and/or enhanced.
• The official announcement will be done during Gilbert’s November tour.
Vision, Mission, Values
Support Units –Human Resources
DESCRIPCION UNIDAD % Asig 1er SEM 2do SEM UNIDAD % Asig
10 0
10 0
10 0
30 0
40 0
100 % 0,00 %
Resultado de la Evaluación --->
0 a 20 1
21 a 40 2
41 a 60 3
61 a 80 4
81 a 100 5
PLANIFICACION SEGUIMIENTO
PLANIFICACIÓN DE GESTION DE OBJETIVOS AÑO 2.008
INDICADOR SEGUIMIENTO CUMPLIMIENTOOBJETIVOS
Total % Asignación --->
No cumple con los objetivos esperados
DENTRO DE LO ESPERADO Dentro de lo esperado
SOBRE LO ESPERADO Sobre lo esperado
% Incremento Máximo
Sugerido
Cumple parcialmente los objetivos esperados
1
POR DEBAJO DE LO ESPERADO
EXCELENTE Excelente
MUY POR DEBAJO DE LO ESPERADO
CRITERIOS % Cumpl. Puntuación
• With this new evaluation tool we’ll contribute to detect personnel capacities, take decisions on salaries and promotions, generate communication, motivate employees and bring better results to the company.
Implementation of new Evaluation Tool
Support Units –Human Resources
• Redesign in most of our offices nationwide according to our ambitious program to bring adequate work
spaces to our employees.
Redesigning
Pág. 57
Before After
Before After
Support Units – General Services
Organizational Climate Study
• This year we worked on an Organizational Climate study in NetUno in order to know employees’
opinion on those aspects we need to improve as a company.
• These are preliminary results of employees’ appreciation:
• There’s a correlation between unit’s results with organization achievements.
• There’s an excellent access to the information brought by the supervisors.
• There’s a good perception on corporate communication.
• Decision making process is participative, every person on the company collaborates on it.
• Organizational climate is harmonious, there’s great satisfaction in employees and no
discrimination.
• There’s a need for on better work spaces, the Support Unit is working on redesigning offices.
• The work team believes NetUno is a great place to work, and since 2007 the labor
environment has improved.
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Support Units –Human Resources
• Campaign of LDXpress (April-Jun)
• Campaign of La Propia (Jul-Sept)
• BTL campaign in Golf tournaments, theater, presence in shopping centers, etc.
• 3,181 subscribers affiliation on new premium channels.
• 8 promotions were made with different programmers, with the participation of 7,121 subscribers, 50 of
them awarded.
• CATV Campaign “Te Conocemos” with significant presence on important media to reduce of Movistar
TV DTH.
• 6 Super Carry were labeled, sponsored by programmers.
• 200.000 spots broadcasted YTD; and will reach 410,000 spots, 17% more than last year. This will
have filled 50% of the expanded capacity in one year.
Marketing & MCM
Pág. 60
Key Achievements
• Corporate Multitenant Building Census: 500 customers interviewed.
• Flash Phone Quality Research: Initial reaction on new product was very positive.
Marketing Research
Key Achievements
Customer Services
• 2 new campaigns to promote client loyalty and to gain new subscribers. (Father’s
Day – Back to School)
• Call center representatives servicing NUI clients 24x7.
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• Campaign of La Propia. (April – Jul)
• Campaign of Te conocemos (Aug – Oct)
• Campaign of Plan Ideal (Oct – Nov)
• New corporate image on SAC offices.
• MCM Pre-sale and Nationwide Events
• More exposure on print and internet media.
Communications & Advertising
Pág. 62
Key Achievements
Events, Sponsorship & Media Coverage
• “Wisin & Yandel” San Cristóbal.
• “Juanes” San Cristóbal
• “Ponte en Movimiento” Valencia.
• “Venezuela Off Road” Valencia.
• “Casa en Boga” Mcbo.
• Calling Card La Propia in 1,800 stands (Florida)
• New offices (Bogotá)
• Flash Phone CDT (Bogotá)
• Telecom Marketing Research (Portugal - Panamá)
• New Local partner Oni Communications (Portugal)
Communications & Advertising: NetUno International
Pág. 63
Key Achievements
• Radio Broadcast Ad in 21 radio stations, 98 times a day nationwide.
• Newspaper And Magazine: in 15 Newspapers twice in a week and
10 Magazine Nationwide once in a Month.
• BTL: Subways, News Stands, newspapers and cars.
La Propia 2008
Campaigns
Pág. 64
• Radio Broadcast Ad in 21 radio stations, 98 times a day nationwide.
• Newspaper And Magazine: in 15 Newspapers twice in a week and
16 Magazine Nationwide once in a Month.
• 184 spots in National TV.
Te Conocemos 2008
• Increase LDXpress prices to improve quality of sales and collections.
• Complete development of LDXpress prepaid.
• Launch of Flashphone in its USB and MTA version.
• Development of wireless solutions to complement corporate service offer.
• New campaign for Residential internet broadband services.
• Digitalization and design of marketing strategies for Valencia, Maracay, Caracas and Barquisimeto.
• Design of marketing strategies to launch High Definition and VOD products.
• Implementation of new procedure for MCM sales and collections.
• Market Research to increase advertisers.
• New strategies to promote insertion in channels with more capacity.
• NetUno Magazine to be included in our website www.netuno.net.
Marketing & MCM
Initiatives In Progress
Pág. 65
• Quality of Services.
Marketing Research
Initiatives In Progress
Customer Services
• 2 new campaigns to promote clients loyalty including Christmas campaign.
• Increment number of Call Center representatives from 8 to 12.
• Call center representatives training in Service Culture Program.
Pág. 66
• NetUno website in process of renovation and
incorporation of new applications.
• Advertising and communication of International Services
• Promote activities to support La Propia marketing.
• Campaigns in concert, baseball games and other events.
• Advertising and communication of Flash Phone
Initiatives in Progress
Communications & Advertising
Pág. 67