¿Who are we?

November 9th 2009

Agenda

1. What is UNE?

2. Information and Communication Technologies

3. What do we expect from Épicos?

Our Goal

To create the biggest integrated

telecommunications companyin the country

“ ”

• UNE has worked in the search for a commercial integration agreement with EDATEL.

• An agreement with ETP was achieved in which High Management and the Commercial Department were to be managed by UNE in order to transfer its DNA.

• On December 31st, the commercial, organizational and legal merger with Promisión, Costavisión and Emtelsa was completed.

• A commercial integration was agreed with EPM Bogotá.

Where do we come from? 

UNE is born, a 100% public company owned by Empresas Públicas de Medellín. Provides information and communications services to its costumers around the country.

On August 1st, UNE takes an important step in reshaping its business, with the commercial, organizational and legal merger of Emtelco and Orbitel, companies who were owned 100% by UNE.

A newStrategicbet

2005

2006

2007

2008

Strategic Goal

In 2015 the EPM Group will be a corporation with sales revenues equivalent to U.S. $ 5,000 million, of which 60% will come from operations outside Medellin and 40% outside Colombia.

In telecommunications: It will be the largest single investor in the most competitive integrated telecommunications company in Colombia, and serving the diaspora community of Latin-Americans in the U.S. and Spain with revenues of 1,500 million dollars.

EPM’s Strategic Guideline

Values

Our policy on Integral Management is a commitment to corporate values.

EPM TELECOMUNICACIONES S.A. E.S.P. aims to be the

most competitive integrated telecommunications in the

country, guided by our values:

Customer FocusAgilityCorporate Social ResponsibilityInnovationTeam-workObjective driven

Competitive Approach

HOMES AND PEOPLE: Exploiting the home as a physical space and communications that are generated by the relationships between family members; also, personal communication needs, regardless of the site and relationship with someone else.

SMEs: We focus on small and medium companies seen and understood their needs from its productive cluster, in which ICT have great usage potential.

CORPORATE: Our focus will be the corporate client, which sees in ICT a differentiator for their business, as a tool to enhance their assessment of their relationship with their customers and their suppliers (to ensure service levels to their customers), and is willing to pay for it.

INTERNATIONAL – RETAIL: We focus on addressing the needs of Latin immigrants regardless of

where they are (countries with high flow of immigrants), and takes advantage of the needs of non Latin immigrants and corporate clients.

– INTERCONNECTION: It will manage relationships with national operators, including carrier services and essential facilities, if they are traded in connection with interconnection. Also, it will handle the lease of physical infrastructure (poles and ducts) to licensed operators in markets where we are incumbent.

– WHOLESALE: It will serve international carriers needs with traffic from any origin to any destination.

Services provided by UNEVoice• Fixed Telephony• IP Telephony• Inteligent Network• National and Intnal Long Distance• Public Telephony• Mobile Telephony• Prepaid Cards

Connectivity• Lan to Lan• VPN• Carrier• Multilan

Internet• Broadband: xDSL, WiMAX• Dedicated: Enterprise Internet• Dial-Up.

Professional Services• Help Desk• Integrated Solutions

Data Center• Equipment Hosting• Dedicated Hosting• Web Hosting• Data Base Hosting• Mail Hosting• Virtual Hard Drive

ASP• SchoolWeb• WebComercio

Entretenimiento• Cable TV including PPV• Interactive TV

Value Addes Services• Data• Teleconference

Taking into account all subsidiaries, UNE can serve 70% of the urban population in Colombia.

Domestic Geographic Presence

Regions with no presence

Regions with Wimax

In the past year we have deepened our presence in the markets where we operate, also, we have expanded our customer base and attached new services, which have allowed us to consolidate the domestic market.

Also, through Visión Satelite, we are consolidating the market in western Colombia.

We have strengthened our national presence in LD and our commercial links with TIGO for providing mobile service.

* Fixed Telephony customers in Subdidiaries Source: UNE; work team analysis

UNE –Costavisión- (Cartagena, Turbaco)

ETP(Pereira, Dos Quebradas, La Virginia, Santa Rosas de Cabal, Cartago)

– Local Fixed Telephony– Broadband– Cable TV

UNE –Emtelsa-(Manizales, Buga, Armenia)

– Local Fixed Telephonu– Broadband– Cable TV

-Cable TV – BroadbandIP Voice

– Local Fixed Telephony– Broadband– Cable TV

Edatel(Antioquia, Córdoba, Cesar, Santander and Sucre)

UNESeveral counties un Colombia

– Local Fixed Telephony– Broadband– Cable TV– LD (National & International)– Outsourcing, data, equipment

(National)– Ip Voice (National & Int.)

EPM Bogotá(Bogotá)

– Local Fixed Telephony– Broadband

–Cable TV – Broadband – IP Voice

Visión Satélite(Cali, Palmira)

– Broadband– Cable TV– Voice

UNE -TV Cable Promisión-(Bucaramanga, Barrancabermeja, Cúcuta)

Regions with subsidiaries

Our International Presence

International Geographic Presence

We currently have international presence in the USA and Spain, with CINCO Telecom Corp. and Orbitel Comunicaciones Latinoamericanas SAU, respectively.

In addition to prepaid products targeted at Colombian immigrants, we have launched products to Mexican and Central American immigrants.

On the other hand, we are in the process of launching a mobile product in Spain and prepaid products in Canada and London.

Market ShareFixed and mobile lines - density

Market Share (1/2)

Total domestic fixed lines in service:

* Dec 2007: 7,305,316 density 16.5%

Coverage 2007: 59,4%

* Dec 2008: 6,961,609 density 15.6%

Coverage 2008: 56.6%

Total domestic mobile lines in service:

* Dec.2007: 33,941,118 density 76.8%

* Dec.2008: 41,364,753 density 92.5%

Source: SUI, Mincomunicaciones, DaneNote: Market penetration is calculated with the estimated household population and Census 2005

Clientes - Movilidad

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008

Mill

ones

TIGO TELEFÓNICA COMCEL

Clientes - TPBC- Colombia

0

0,5

1

1,5

2

2,5

3

2002 2003 2004 2005 2006 2007 2008

TELMEX Grupo- EPM ETB TELECOM Emcali Otros

Market ShareDedicated Internet and Cable TV - Coverage

Market Share (2/2)

Total Domestic Dedicated Internet Subscribers

Dec 2007: 1,207,090 Coverage 9,8%

Dec 2008: 1,766,323 Coverage 14,4%

Total Domestic Cable TV Subscribers

Dec.2007: 2,210,886 Coverage 18.0%

Dec.2008: 3,156.144 Coverage 25,1%

Source: SUI, Mincomunicaciones, Dane, work team analysis

Note: Market penetration is calculated with the estimated household population and Census 2005

Clientes Internet Dedicado

0

100.000

200.000

300.000

400.000

500.000

600.000

2007 2008

Grupo -EPM ETB TELECOM TELMEX EMCALI Otros

Clientes- TV por suscripción

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2.000.000

2005 2006 2007 2008TELMEX EPM CABLE UNION DIRECTV LTDA. TELECOM

OTROS Cable Centro Superview TV-Cable Cable Pacifico

Achievements and Recognitions

• First company in Colombia to implement interactive television, with digital quality, under the IP protocol.

• First provider of telecommunications services in Colombia with the most comprehensive suite of integrated services: Fixed Telephony, Long Distance, TV, Broadband and Mobile Telephony.

• UNE has the first WiMAX network in Colombia.

• UNE is the technology partner of the first digital city in Colombia: Medellin.

• Provides the highest levels of customer satisfaction of Long Distance in Colombia, according to the Telecommunications Regulatory Commission.

• Best Broadband service provider in Latin America in 2008, according to Frost & Sullivan.

• Superbrands Award for being one of the most important brands in the country.

• V Latin American Digital Cities Award in the category of "e-inclusion", awarded by the Hispano-American Association of Research Centers and Telecommunication Companies-AHCIET-“Medellin Digital” Program.

Network Growth Medellín

▪During 2008, we built over 15 aggregation fiber optic rings for

“fiber to the customer” service. (Prior to 2008, they did not

exist)

▪UNE expanded its East (Oriente Cercano) network capacity

from of 5Gbps to 15 Gbps. A 200% Growth.

▪42 nodes were installed in the MetroEthernet network, with

total capacity of 40G. (Prior to 2008, they did not exist).

▪UNE installed more than 15 SDH nodes to expand its capacity

and replace obsolete technology.

Information and Communication Technologies

Access Network Updating▪ In 2008 the project of upgrading the access network begins. ▪ UNE takes the fiber to a maximum distance of 500m from

the customer’s premises. ▪ Investments are being made in the municipalities of Valle de

Aburrá and Near East (Oriente Cercano). ▪ Each customer will have a bandwidth of up to 20 Mbps. ▪ The project is planned to be executed in 4 phases:

– Phase 1: 700 distribution cabinets – ends April 2009.– Phase 2: 700 distribution cabinets– ends June 2009. – Phase 3: 700 distribution cabinets– ends December 2009. – Phase 4: 700 distribution cabinets– ends June 2010 and

analysis of new alternatives in fiber.

Information and Communication Technologies

TV Network and System Growth▪IPTV: After a process of development and testing, UNE was the first national operator and the second in Latin America, to launch the IPTV interactive television service. –Services Phase I

• Basic package of 80 channels + 50 audio channels• Specialized packages or niche packages• VoD: Video on Demand. • PPV: Pay per view.• Parental control, interactive program guide, favorites list,

schedule reminder, show search.–Services Phase II

• HDTV.• PVR: Personal Video Recorder.• Games, horoscopes.

Information and Communication Technologies