About CEMIGTelecom. Voting Capital: Investiments: 99,99% - Companhia Energética de Minas Gerais. US$ 203 Million

Transcription

1 May 11

2 About CEMIGTelecom Telecommunications Operator founded in 1999 and owned by CEMIG Group, the former Infovias, nowadays CEMIGTelecom, offers the best optical network for transport of telecommunications services in Minas Gerais State using the infrastructure of CEMIG. Voting Capital: 99,99% - Companhia Energética de Minas Gerais Investiments: US$ 203 Million

3 AGENDA CEMIG Group Overview Telecom at CEMIG/Energy Utility CEMIGTelecom Strategic Positioning CEMIGTelecom Highlights CEMIGTelecom Networks, Clients and Services Final Considerations

5 LOCATION BRAZIL GDP: US$1.3 trillion (2007) Population: 194 million (2008) Area: 8.5 million Km 2 Belo Horizonte (capital) GDP: US$107 billion (2006) Population: 19 million (2007) Area: million Km 2

6 CEMIG ENERGY UTILITY Largest Electrical Distribution Network in Latin America Transmission Lines: 21,932 Km Distribution Grid: 443,525 Km Market Value: R$ 16 billion (2008) Gross Revenues: R$ 16.5 billion (2008) (US$8.9 billion) Cemig Holding has shares in several companies (58 companies and 10 consortia) in 19 states + FD of Brazil and in Chile: Cemig Distribution (100%) Cemig Generation and Transmission (100%) Gasmig: natural gas transmission and distribution (55.2%) Efficientia: energy efficiency consultancy services (100%) CEMIGTelecom: telecommunications services (99.9%) Ativas Data Center: outsourcing and hosting services (49%) Present in 96.7% of Minas Gerais State 65 Power Plants: 6,754 MW installed capacity Serves more than 18 million people in 774 cities in the State More than 6.8 million consumers in Minas Gerais State

7 Presence of CEMIG Group in 19 states of Brazil and in Chile Source:

8 CEMIG Group

10 TELECOMMUNICATIONS AT CEMIG Synergy between energy grid and telecommunications networks Evolution: BECAME A NEW BUSINESS SUPPORT FOR INDUSTRIAL PROCESS ALSO, SUPPORT FOR BUSINESSES e.g.: voice and data communication; corporate networks e.g.: teleprotection, telecontrol, power plants automation. UNTIL 1998 AFTER 1998

12 Some Strategies to Explore Telecom Services with Competitiveness and Profitability Specialization/Risk Value Chain: Fixed & Mobile Business Carriers Some Operators Some Operators Retail Services Utilities / Railroads / Highways Utilities / Railroads / Highways Value Added Services Carrier s Carrier Fiber Swap Dark Fiber Duct Renting Right of Way (ROW)

13 Question??? What s the best business model to be adopted???

14 Answer No matter what business model is chosen, the key point is: Discover and exploit a Competitive Advantage!! or It s not enough to be just another company!!!

15 CEMIGTELECOM BUSINESS MODEL: CARRIER S CARRIER Competitive Advantage: Infrastructure. Unique Selling Points based on the tripod: Capilarity, Agility to activate circuits, low cost implementation process. Support: Solid Controlling Company (CEMIG).

16 COMPETITIVE ADVANTAGE: INFRASTRUCTURE Reference: Optical Cable with 48 fiber optics (Average Costs) Long Distance Network 1- Using OPGW cable Total Cost:: US$ 13,000 / Km 2- Underground optical network (directly buried) - US$ 16,000 / Km for normal soil - from 3 to 6 times more expansive for rocky soil Metropolitan Network 1- Aerial network (using electrical energy distribution poles) Total Cost : US$ 8,000 / Km 2- Underground optical network Total Cost : US$ 45,000 / Km

17 Infrastructure Long Distance Network Right of Way (ROW) granted on the CEMIG s electric energy transmission and subtransmission infrastructures. OPGW optical cables installed over electric energy transmission and subtransmission infrastructures (1,300 Km already installed). Local Network Right of Way (ROW) granted on the CEMIG s electric energy distribution infrastructure (distribution poles and underground ducts). Dielectric optical cables installed in urban areas of 44 cities over underground and aerial electric energy distribution infrastructures (2,500 Km already installed in the BHMA and in the country side of the state). Coaxial cables installed over underground and aerial electric energy distribution infrastructures (2,700 Km already installed in 12 cities).

18 CEMIGTelecom Regulatory Aspects ANATEL (Agência Nacional de Telecomunicações) Authorization ACTS N and on May 05th, 2000 Authorization to provide the Serviço Limitado Especializado (SLE) (Specialized Limited Service). ACT N on December 03rd, 2003 Authorization to provide the Serviço de Comunicação Multimídia (SCM) (Multimedia Communication Service), as a result of an adaptation of the previous SLE Authorization.

20 GROSS REVENUES Annual - R$ thousand (*) (*) (*) Preliminary data

21 OPERATING INCOME (EBITDA) EBITDA Annual R$ thousand / margin (%) (*) (*) Preliminary data

22 NET INCOME Net Earnings/Loss (R$ thousand) Annual (*) (*) Preliminary data

24 CEMIGTELECOM NETWORKS FIBER OPTICS ACCESS NETWORK (SDH) MULTISERVICES NETWORK (HFC/IP) METROETHERNET NETWORK FTTH GPON NETWORK

26 Fiber Optics Access Network (SDH) Network Features Fiber Optics SDH Rings (STM-64 / STM-16 / STM-4 / STM-1) BSHR arquitecture Large capillarity and high speed Unlimited Bandwidth capacity NGN (Next Generation Network) features implemented Services and Products Dedicated clear channel leased lines (E1 / E3 / STM-1 / STM- 4) end-to-end (from the Telecom Operator to Customers). nx64kbps leased lines (competitive distinguishing).

27 Fiber Optics Access Network (SDH) BHMA - Network Coverage Belo Horizonte Metropolitan Area

28 Fiber Optics Access Network (SDH) BHMA - Network Logical Diagram SLA STM-1e NVS 1 STM-4 1 Metropolitan Ring STM-1o STM-16 Op. 4 POP 1 POP 1 Customers Ring 1 Op. 1 Operators Ring I Op. 3 Operators Ring II Op. 5 Customers Ring 1 Sabará Output MCA ITE 2 CTR 3 1 BDC 1 2 Contagem Acess West, South e Triângulo Output 1 BRO 1 CIL 1 COS 1 3 BBS 2 Center Ring BHN Maracanã Ring NLA 1 2 Nova Lima Output 1 TQL East and Southeast Output

29 Fiber Optics Access Network (SDH) POP s Structure (Points of Presence)

30 LONG DISTANCE NETWORK BACKBONE (FIBER + DIGITAL RADIO)

31 Long Haul Network Backbone Ring Protections Midlle-West (BRASÍLIA) MINAS GERAIS STATE Montes Claros North-East (BAHIA) T. Otoni Distribution Network Uberlândia Uberaba Araguari Jaguara Divinópolis Pimenta Sete Lagoas Barreiro RMBH Itambé R. Neves Gov. Valadares Itabira J. Monlevade Ipatinga Furnas C. Lafaiete Passos P. Caldas Varginha Barbacena J. Fora OPGW E Patch Box South (SÃO PAULO) Pouso Alegre South-East (RIO DE JANEIRO)

32 Fiber Optics Access Network (SDH) Uberlândia - Network Coverage Uberlândia CEMIGTelecom POP s Legend: CEMIGTelecom POPs Coverage - SDH HFC Network 105 km

33 Fiber Optics Access Network (SDH) Uberlândia - Network Coverage Uberlândia CEMIGTelecom POP s Legend: CEMIGTelecom POPs Coverage - SDH HFC Network 105 km SDH Network 70 km

35 Multiservices Network (HFC/IP) Network Features 3,300 Km of HFC/IP (Hibrid Fiber and Coaxial Internet Protocol) network, with 125 to 2,000 home passed cells. 600 Km of optical cables installed. Coverage of 12 cities in Minas Gerais About 600,000 home passed. Services and Products CATV Broadband Internet VPN Web TV Telemedicine Data, voice and Image transmission Telemetry Electronic Security Home Banking Teleeducation

36 Multiservices Network Coverage ITUIUTABA UBERLÂNDIA SETE LAGOAS IPATINGA UBERABA BETIM CONTAGEM RIB. NEVES BH CONSELHEIRO LAFAIETE BARBACENA POÇOS DE CALDAS

38 Metroethernet Network Premisses, Topology, Architecture The MetroEthernet Network is based on IEEE standards, implemented on Layer 2. Topology based on rings. The Network provides exclusive transparent solutions on Layer 2, without a router. It provides simplicity, stability and fast implementation. Integrated to the SDH/NGN and HFC/IP existing networks.

39 Metroethernet Network Premisses, Topology, Architecture Large coverage on Belo Horizonte Metropolitan Area and service providing in Minas Gerais State through the integration with the existing networks. Core IP/MPLS implemented to provide more scalability to the network. Core IP/MPLS integration to the SIM Project IP/MPLS Multiservices Network (Cemig as the main client). The network architecture is composed by redundant access and equipments with both power and connection redundancy.

40 Metroethernet Network BHMA Network Coverage City Hall Belo Horizonte Metropolitan Area City Hall City Hall City Hall Legend: POPs coverage Main routes MetroEthernet Optical Network

42 FTTH GPON Network Overview GPON Technology Gigabit Passive Optical Network FTTH Architecture Fiber To The Home Initial Coverage: 31 Upscale Gated Communities in the BHMA. Gated Communities with a high demand of telecom quality services and customers with a high purchasing power. Descrição Numeros Nº Lotes Nº Res. Horizontais 4517 Nº Res. Verticais 100 Classe A 62% Classe B 31% Classe C 6% Mercado Potencial 10º Ano 7099

43 FTTH GPON Network Architecture Fonte: site Furukawa:

44 FTTH GPON Network Coverage

47 NOC Network Operational Management Center 24 x 7 x 365 NOC SDH NETWORK METROETH NETWORK HFC/IP NETWORK FTTH GPON NETWORK 26/04/2012

48 CEMIGTelecom Networks Summary MONTES CLAROS TEÓFILO OTONI G.VALADARES ARAGUARI IPATINGA ITUIUTABA UBERLÂNDIA UBERABA JAGUARA PASSOS PIMENTA BETIM SETE LAGOAS DIVINÓPOLIS POÇOS DE CALDAS CONTAGEM POUSO ALEGRE VARGINHA BH NEVES ITABIRA OURO PRETO 2 LAFAIETE BARBACENA JUIZ DE FORA MONLEVADE LONG HAUL BACKBONE HFC EXISTING NETWORK SDH EXISTING NETWORK ATTENDANCE TO CEMIG HFC AND SDH EXISTING NETWORKS HFC, SDH AND METRO EXISTING NETWORKS

49 Clients/Services CLIENT I-Telecom Operators II-Internet Service Providers (ISPs) III- Cable TV Operators (CATV) IV- Other clients (e.g.: CEMIG and Outsourcing Partners, Power Plants, etc.) PRODUCT/SERVICE Dedicated digital circuits clear channel (nx64 Kbps, E1, E3, STM-1, STM-4); Ethernet circuits through MetroEthernet Network. FTTH GPON Network Ethernet circuits through MetroEthernet Network. CATV (in 12 cities); Residential and commercial Broadband Internet Access (in 08 cities). Service Providing for many projects and applications, such as: Corporate Network, Dedicated Internet Access, Substations monitoring system, VPN s CCEE.

50 NETWORK EXPANSION PROJECT

51 NETWORK COVERAGE CEMIGTelecom Network after expansion (forecast ) Buritizeiro Pirapora V. Palma BRA T. Marias Montes Claros BQO Curvelo Diamantina T. Otoni São Simão Bauzinho Ituiutaba Emborcação Uberlândia N. Ponte Uberaba Araguari Miranda Patrocínio R. Jacó P.Minas S. Gotardo 2 B. Despacho SDE Serra Salitre Luz L. Prata M. Leme P.Minas Divinópolis S. Hilário R. Neves Betim RMBH Gouveia Sete Lagoas Belo Horizonte J. Monlevade Gov. Valadares Itabira Ipatinga Jaguara Ventania Pimenta Contagem Volta Grande Passos Furnas C. Gerais G uaxupé P. Caldas B. Esperança Varginha Nepomucenp Bocaina Itutinga O. Preto 2 C. Lafaiete Barbacena Ponte Nova LEGEND: T. Corações Camargos Existing Network P. Alegre S. Rita Sapucaí Itajubá Aguas São Lourenço Caxambu J. Fora SDH Existing Network SDH and HFC Existing Networks Network after Expansion

53 Tips Consider the SWOT Matrix and Discover what are your strengths Find out and exploit a Competitive Advantage Define a clear business model Build a good team: mix expert and fresh people Hire people with expertise in the telecom market Focus on your business model Keep the focus on your business model

54 Any Questions?

55 Paulo Tozo Commercial Manager Thank You!