INSERT THE NAME OF YOUR COMPANY HERE: INPUT INSTRUCTIONS -

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ISLAND TELCO INC.
Work your way through th
To use this case study tool, you need to make the following decisions: calclulations are marked i
render your business cas
Market Size
In defining your market size, you will have evaluated the size of the market and the market
conditions. All you need to do here is edit the appropriate cells in yellow and your market size will
be calculated. Your predicted subscriber volumes will determine the required infrastructure in
1 urban areas where capacity determines the required equipment, which will be automatically
calculated by the calculator. You need to add coverage for remote rural areas, based on desired
area coverage.

Subscribers and Revenue

In your marketing plan, you will have defined your market segments, market share, product
2 offerings as well as the ARPU for each of the 4 years in the financial model. All you need to do
here is enter it in the appropriate cells and your revenue will be calculated.

Capital Expenditure
Based on your predicted subscriber needs, and the type of technology you plan to roll out, you
need to select from the Capex list, matching your capital expenditure to your cash flow ability,
3 and to your growing subscriber needs. This will be guided by the cell site calculator, but you
need to complete your capital expenditure requirements here.

Operating Expenditure
You need to budget for variable and fixed costs differently. Direct costs can be expressed as a %
4 of revenue, while fixed costs are expressed as $, since they do not fluctuate according to sales.

Funding
You need to establish the source of financing you will exploit to launch this business. You have
two possible sources for this, shareholders and borrowings. While borrowers will require a fixed
interest rate, shareholders will have an expectation of a minimum return on equity, but should be
5
aware that returns will not be immediate. The desired mix of funding will hopefully meet the
requirements of both shareholders and lenders.

Financial Statements
The Balance Sheet, Income Statement and Cash Flow will be a result of the inputs that you have
6 decided upon at each stage. No input will be required at this stage.

Please only edit the yellow blocks!

INPUT INSTRUCTIONS - READ CAREFULLY Please only edit the yellow blocks!
This tool is created with integrated calculations in order allow you to evaluate your big picture decisions financially.
Work your way through the tabs updating your assumptions using the yellow blocks. Blocks which bring through linked
calclulations are marked in green and should not be edited. Please be careful not to edit or break any formulas as this may
render your business case invalid. As a final sanity check please check the balance sheet tab and make sure it balances.
ulas as this may
re it balances.
Enter here the size of the market and the
market conditions for year 1
Market Conditions End of Year 1
total area Km^2 6,000
total pop 1,600,000
The amount of data consumed by each Addressable Market % 65%
subscriber will determine the number of sites
required to provide sufficient capacity in the Addressable Subs 1,040,000
network. Your Market Share % Y1 20%

100 - 200 MB/Day is a typical value Your Subs Y1 end 208,000

Tourists/year 1,300,000
Market share % Year 1 12%
Please only edit the yellow blocks! Tourists Served 156,000

Describes the population distibution in the

different area types.
Subscriber: Area Distributi
It is also possible to change the coverage Area Type Urban
percentage requirements over the term of
the project % of Total Area 5%
Area Km^2 300
There is generally no need to change these % Subs/Area Type 70%
values
Subs/Area Type 145,600

Describes the subscriber growth over the

term of the project
Subscriber
U=Urban Year 1
SU-Sub-Urban Market Share Growth U 20%
R=Rural
O=Open Subscribers U 145,600
Market Share Growth SU 20%
Market growth may be differnt across Subscribers SU 41,600
these areas, depending on your approach
to deployment Market Share Growth R 20%
Subscribers R 10,400
Market Share Growth O 20%
Subscribers O 10,400
Total 208,000
Market Share 20%

Select the network technology used in the Tourist Growth 12%

project and the propsed frequency of Tourists Subs 156,000
operation

It is reccomended to use LTE - 10Mhz since

this provides a calculation based on a Technology LTE
single-RAN solution

The number of cell sites is calculated based Bandwidth 10.0 MHz

on this input
The number of cell sites is calculated based
on this input

This graph shows the number of cell sites

required to achieve the coverage or capacity
target. 400
Number of cell sites required will be Total Cell Sites Required
determined by the frequency band selected 350
and the channel bandwidth.
300
In general the larger of the 2 numbers will 272
be used to calculate the cost.
250
Where a MultiRAT system is used, ensure
the checkbox on CAPEX tab is selected. 189
200

150125
107
100 89
60
50

0
Year 1 Year 2 Year
 Data Growth YoY
Application Data Use % Activity
General Web Browsing 1 MB 15%
Social Networking 5 MB General Web Browsing
Video 25 MB Social Networking
Navigation 3 MB Video
VoIP 5 MB Navigation
Photos 3 MB VoIP
Audio Streaming 15 MB Photos
other Web .5 MB Audio Streaming
other Web
total per Sub

Subscriber: Area Distribution

SubUrban Rural Open
15% 30% 50% Urban
900 1,800 3,000 SubUrban
20% 5% 5% Rural
41,600 10,400 10,400 Open

Subscriber Growth
Year 2 Year 3 Year 4 Year 5
30% 25% 15% 5%
189,280 236,600 272,090 285,695
40% 25% 15% 0%
58,240 72,800 83,720 83,720
20% 40% 30% 15%
12,480 17,472 22,714 26,121
20% 10% 10% 0%
12,480 13,728 15,101 15,101
272,480 340,600 393,624 410,636
26% 33% 38% 39%

20% 20% 20% 10%

187,200 224,640 269,568 296,525

Frequency 850 MHz

 361

272

Coverage Cells
Capacity Cells

121
107

Year 3 Year 4
 Data Consumption/Sub/Day - Growth
Sessions per Day
high med (50%) low (25%) 300 MB
5 2.5 1.25 250 MB
15 7.5 3.75
200 MB High
2 1 0.5
Med
3 1.5 0.75 150 MB
Low
1 0.5 0.25 100 MB
2 1 0.5
50 MB
1 0.5 0.25
3 1.5 0.75 MB
166.5 MB 83.25 MB 41.63 MB Year 1 Year 2 Year 3 Year 4

Coverage Requirement
Coverage Requirements
100%
Year 1 Year 2 Year 3 Year 4 Year 5 U
80%
50% 70% 85% 95% 95% S
60%
40% 60% 70% 80% 85% R
40%
20% 45% 55% 65% 75% O
20%
20% 45% 55% 65% 75%
0%
Year 1 Year 2 Year 3 Year 4 Year 5

# Subscribers - Growth
450,000
410,636
393,624
400,000

350,000 340,600

300,000 Subscribers U
272,480
Subscribers SU
250,000 Subscribers R
208,000
200,000 Subscribers O
Total
150,000

100,000

50,000

0
Year 1 Year 2 Year 3 Year 4 Year 5

Capacity Site Count Cove

400 140

350 120
300
100
250
80
200
60
150
400 140

350 120
300
100
250
80
200
60
150
40
100

50 20

0 0
Year 1 Year 2 Year 3 Year 4 Year 1 Year 2
rowth

High
Med
Low

erage Requirement

Urban
SubUrban
Rural
Open

r3 Year 4 Year 5

bscribers U
bscribers SU
bscribers R
bscribers O
tal

Coverage Site Count

140

120

100

80

60
140

120

100

80

60

40

20

0
Year 1 Year 2 Year 3 Year 4
Subscribers and Revenue Please only edit the yellow blocks!
ISLAND TELCO INC.
Year Year 1 Year 2
(info given)
MOBILE Subscribers
Total Population 1,600,000 1,624,000 1,648,360
Growth rate 1.50% 1.50%

Overall Market Penetration 65% 65%

Total Mobile Market size 1,055,600.00 1,071,434.00

Our Market Share 20% 26%

Number of subscribers 211,120 280,716

ARPU
Blended monthly ARPU $12.00 $10.00
Annual ARPU $144.00 $120.00

Total Mobile Revenue $ 30,401,280 $ 33,685,885

Tourists 1,300,000
Market Size 156,000 187,200

Average Stay (weeks) 2 2

Average Revenue/Week $10.00 $9.00

Tourist Revenue $ 3,120,000 $ 3,369,600

FIXED Subscribers (DSL)

Total Households 470,000 480,599 491,436
Growth rate 2.26% 2.26%

Fixed Penetration 45% 50%

Total Market size 216,269 245,718

Our Market Share 0% 10%

Number of residential Connections - 24,572

Blended monthly ARPU $ - $ 45.00

Residential Revenue (yearly) $ - $ 13,268,771.90

Number of BusinessConnections 0 4000

Business ARPU (monthly) $ 100 $ 100
Bussiness Revenue (yearly) $ - $ 4,800,000
Total Fixed Revenue $ - $ 18,068,771.90

TV Subscribers (If Applicable)

Total Households 470,000 480,599 491,436
Growth rate 2.26% 2.26%

Market Penetration for TV 45% 50%

Total Market size 216,269 245,718

Our Market Share 0% 0%

Number of subscribers - -

ARPU
Blended monthly ARPU $ 10.00 $ 10.00
Annual ARPU $ 120.00 $ 120.00

Total TV Revenue $ - $ -

Additional Revenue (If Applicable)

Wholesale 800,000.00 920,000.00

Interconnect Services 350,000.00 402,500.00
Enterprise 1,250,000.00 1,437,500.00
???

Total Additional Revenue $ 2,400,000 $ 2,760,000

All Revenues $ 35,921,280 $ 57,884,257

Revenue by Sect
90000000
80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
Total Mobi l e Revenue Touri st Revenue Total Fixed Revenue
 Year 3 Year 4 Comments

1,673,085 1,698,182
1.50% 1.50%

65% 65% Expressed as the number of SIM cards as a % of the population

1,087,505.51 1,103,818.09
Expressed as the number of SIM cards active on our network as % of the total activ
33% 38%
number is carried from the Market Size sheet

356,158 417,779

ARPU - You need to work out an average for Contract / Non-Contract, Consumer / B
$9.00 $8.00 / light users
$108.00 $96.00

$ 38,465,070 $ 40,106,745

224,640 269,568 Number of tourists are defined on Market Size Tab, this number is the total
number of tourists served over the course of 1 year, both Off Season and Peak
2 2

$8.00 $7.00 The revenue represents the package offered to the tourist on arrival including
minutes, txt, MBs
$ 3,594,240 $ 3,773,952

502,518 513,850
2.26% 2.26%

55% 60% Expressed as the number of connections as a % of the number of housholds

Percentage here expresses the increasing availabilily of DSL services
276,385 308,310

13% 17% Expressed as the number of our fixed subscribers as a % of the total fixed subsc

35,930 52,413

$ 45.00 $ 45.00 ARPU - You need to work out an average for residential bundled internet services
$ 19,402,215.27 $ 28,302,839.05

4200 4500
$ 90 $ 80 Insert the total number of additional business connections you expect to achieve
$ 4,536,000 $ 4,320,000 and Business ARPU
 $ 23,938,215.27 $ 32,622,839.05

502,518 513,850
2.26% 2.26%

55% 60% Expressed as the number of TV customers as a % of the number of housholds

276,385 308,310

0% 0% Expressed as the number of our TV subscribers as a % of the total TV subscribe

- -

ARPU - You need to work out an average for

$ 10.00 $ 10.00 Different User packages - Basic, Movies, Sports
$ 120.00 $ 120.00 & discounts for bundled services

$ - $ -

1,085,600.00 1,302,720.00 REVENUE - You need to work out total YEARLY

474,950.00 569,940.00 revenue for any additional revenue sources /
1,696,250.00 2,035,500.00 sectors

$ 3,256,800 $ 3,908,160

$ 69,254,325 $ 80,411,696

Revenue by Sector

Touri st Revenue Total Fixed Revenue Total TV Revenue Total Addi tional Revenue
 e population

ur network as % of the total active SIM cards. this

ract / Non-Contract, Consumer / Business, & heavy

b, this number is the total

ar, both Off Season and Peak

e tourist on arrival including

% of the number of housholds

abilily of DSL services

ers as a % of the total fixed subscribers

ential bundled internet services

nnections you expect to achieve

f the number of housholds

as a % of the total TV subscribers

EQUIPMENT COSTS Qty to Buy
The prices shown are given as a guide only.
Teams are encouraged to carry out their own
research for other equipment required. Year 1 Year 2 Year 3 Year 4
Please only edit the yellow blocks!
REMEMBER, YOU NEED TO PROCURE EQUIPMENT SUFFICIENT FOR THE FOLLOWING NUMBER OF CELL SITES 125 63 83 89

Transmission and Backbone

Land Based Optical Cable US$/Km $ 100,000 Cost of cable and installation - -
Submarine Optical cable US$/Km $ 25,000 Cost of cable only -
Transmission Micowave systems $ 100,000 Point to point - both ends - high capacity with redundancy 5
SDH Multiplexer $ 200,000 Add/Drop to Fibre Ring 5
IP Backbone Router $ 700,000 High Capacity 40Gbps 3
Synchronisation equipment $ 20,000 GPS based - per major switch site 3

Mobile Core 2G, 3G and 4G

MSC Soft switch/IMS VoLTE $ 1,500,000 Support for up to 4 BSC/RNC typical config including MGW and VLR 2
HLR/HSS/AuC $ 1,000,000 Up to 1 million subs 1
EIR $ 400,000 Blacklist of stolen phones - optional 1
SGSN/SGW/MME $ 2,000,000 10 Gbps throughput - MME will support 3M Subs 2
GGSN/PGW $ 1,500,000 40 Gbps throughput 2

Mobile Access
RNC (UMTS) may not be required for single RAN $ 500,000 Support for 60-100 Node B typical config 1
BSC (GSM) may not be required for single RAN $ 250,000 Support for 60-100 BTS typical config 1
Base Station, BTS, NodeB, eNB (Single RAN) $ 100,000 Including Civil Engineering and Backhaul 125 63 83 89

Fixed Network
Local exchange - softswitch $ 1,200,000 IP based including line cards and MGWs 1
Trunk Exchange - softswitch $ 800,000 1
International Exchange - softswitch $ 1,000,000 1
DSLAM (ADSL) $ 120 Per port (incl MDF and anciliary eqipment) Assume 20 subs per port - 1,429 2,007 2,846
DSLAM (Remote/VDSL) $ 160 Per port included In Remote Cabinets incl. Fibre Backhaul - 296 ports per cab

Support Systems
Network Management (OSS/BSS) $ 2,500,000 1
Billing - Fixed $ 1,500,000
Billing - Mobile convergent $ 1,500,000 1
Additional Service and Content Delivery Platforms $ 2,500,000 this maybe required to support triple/quad play services and/or VoLTE 1

Real Estate
Base Station Real Estate (Urban) US$/Month $ 1,500 Applies on non-telco owned property (this is an OPEX) 94 48 62 67
Base Station Real Estate (Rural) US$/Month $ 500 Applies on non-telco owned property (this is an OPEX) 31 16 21 22

Total Capex per year $ Multi

37,835,049 $ Multi
6,515,912 $ Multi
8,523,970 $ Multi
9,275,352
Tick here to add Multi RAT capability ✘ ✘ ✘ ✘
Percentage Additional Cost for MultiRAT License 20% 20% 20% 20%
This Total is carried forward to CASH FLOW $ RAT
45,402,058 $ RAT
7,819,094 $ RAT
10,228,765 $ RAT
11,130,423

CAPEX Total CAPEX Breakdown

$14,000,000.00
$50,000,000
Transmission and Backbone
$45,000,000
$12,000,000.00
Mobile Core 2G, 3G and 4G
$40,000,000 Fixed Network
Mobile Access
$35,000,000 $10,000,000.00
Support Systems
$30,000,000
$8,000,000.00
$25,000,000

$20,000,000 $6,000,000.00
$15,000,000
$4,000,000.00
$10,000,000

$5,000,000
$2,000,000.00
$-
Yea r 1 Yea r 2 Yea r 3 Yea r 4
$-
Yea r 1 Yea r 2 Yea r 3 Year 4
Opex Please only edit the yellow blocks!
ISLAND TELCO INC.
Year Year 1 Year 2 Year 3 Year 4

4 Direct Costs (as % of revenue)

Cost of Sales 10.0% 10.0% 10.0% 10.0% Direct costs or Cost of Sales are normally calculated as a percentage of revenue.
Lease of shops 0.5% 0.5% 0.4% 0.3%
Dealer commission 1.7% 1.7% 1.7% 1.7% They could be broken down into costs such as direct marketing, VAS, Sim cards
SIM and recharge cards 0.3% 0.3% 0.3% 0.3% Recharge vouchers, Interconnection costs, Roaming etc however in this case we
Handset and accessories costs 0.3% 0.3% 0.3% 0.3% have worked on one cost of sales percentage.
Roaming costs 1.0% 1.0% 1.0% 1.0% Figures provided here are examples only, your assumptions maybe different!
VAS costs 1.7% 1.7% 0.3% 0.3%
Wholesale 0.7% 0.7% 0.7% 0.7%
Interconnection costs 3.3% 1.7% 1.7% 1.7%
Regulatory 1.7% 1.7% 1.7% 1.7% Check out the World Telecoms Financial Benchmarks for the latest industry average.
Total Direct Costs 21.2% 19.5% 18.1% 18.0%
$7,603,338 $11,268,135 $12,535,033 $14,474,105

5 Fixed overheads
Sales, Marketing and Advertising 5,000,000 4,000,000 3,500,000 3,000,000 Fixed Costs do not necessarily fluctuate with sales, but need to be managed
Network Maintenance 6,000,000 8,500,000 8,925,000 9,371,250 in order to ensure that they are affordable, but not too low so as to hamper operations.
IT and Billing 1,000,000 1,300,000 1,450,000 1,600,000
Personnel and Training 2,500,000 2,550,000 2,601,000 2,653,020 They could be expressed as a percentage of revenue or you could use the World
Debt Collection Charges 320,000 340,000 360,000 380,000 Telecoms Financial Benchmarks to calculate an industry average of Opex
General 30,000 50,000 65,000 80,000 Figures provided here are examples only, your assumptions maybe different!
Site Leasing/Rentals 156,563 235,869 339,409 451,082
Total overheads $15,006,563 $16,975,869 $17,240,409 $17,535,352

Direct Costs Fixed Costs

20000000
16000000 18000000
14000000 16000000
12000000 14000000
10000000 12000000
8000000 10000000
6000000 8000000
4000000 6000000
2000000 4000000
0 2000000
Year 1 Year 2 Yea r 3 Year 4
0
Cost of Sal es Lea s e of s hops Dea ler commis s ion Yea r 1 Year 2 Year 3 Yea r 4
SIM and recha rge cards Hands et and acces sories costs Roa ming costs Sal es , Ma rketing and Advertis ing Network Mai ntena nce IT and Bill ing
VAS costs Whol es ale Interconnection costs Pers onnel a nd Tra ining Debt Col lection Charges General
Regulatory Site Lea s ing/Rentals
Funding
Shareholder investment raised $ 100,000,000
Interest payable on loan financing 10%
Loan value $ 100,000,000
Loan repayment term (years) 10
Licence Fee $ 100,000,000
Term of licence fee (years) 15
Equipment Lifespan (years) 5
Income Tax rate 28%

Page 3 of 29
ISLAND TELCO INC.
LOAN AMORTIZATION TABLE
Original Bond Interest
Amount Rate Term (yrs) Future Value Residual
$100,000,000.00 10.00% 10 0 0%

P&I Payment Principal Interest New Balance Cum. Interest Months Years
1,321,507.37 100,000,000.00
1,321,507.37 488,174.04 833,333.33 99,511,825.96 833,333.33 1
1,321,507.37 492,242.15 829,265.22 99,019,583.81 1,662,598.55 2
1,321,507.37 496,344.17 825,163.20 98,523,239.64 2,487,761.75 3
1,321,507.37 500,480.37 821,027.00 98,022,759.27 3,308,788.75 4
1,321,507.37 504,651.04 816,856.33 97,518,108.23 4,125,645.08 5
1,321,507.37 508,856.47 812,650.90 97,009,251.76 4,938,295.98 6
1,321,507.37 513,096.94 808,410.43 96,496,154.82 5,746,706.41 7
1,321,507.37 517,372.75 804,134.62 95,978,782.07 6,550,841.03 8
1,321,507.37 521,684.19 799,823.18 95,457,097.88 7,350,664.21 9
1,321,507.37 526,031.55 795,475.82 94,931,066.33 8,146,140.03 10
1,321,507.37 530,415.15 791,092.22 94,400,651.18 8,937,232.25 11
1,321,507.37 534,835.28 786,672.09 93,865,815.90 9,723,904.34 12
1,321,507.37 539,292.24 782,215.13 93,326,523.66 10,506,119.47 13
1,321,507.37 543,786.34 777,721.03 92,782,737.32 11,283,840.50 14
1,321,507.37 548,317.89 773,189.48 92,234,419.43 12,057,029.98 15
1,321,507.37 552,887.21 768,620.16 91,681,532.22 12,825,650.14 16
1,321,507.37 557,494.60 764,012.77 91,124,037.62 13,589,662.91 17
1,321,507.37 562,140.39 759,366.98 90,561,897.23 14,349,029.89 18
1,321,507.37 566,824.89 754,682.48 89,995,072.34 15,103,712.37 19
1,321,507.37 571,548.43 749,958.94 89,423,523.91 15,853,671.31 20
1,321,507.37 576,311.34 745,196.03 88,847,212.57 16,598,867.34 21
1,321,507.37 581,113.93 740,393.44 88,266,098.64 17,339,260.78 22
1,321,507.37 585,956.55 735,550.82 87,680,142.09 18,074,811.60 23
1,321,507.37 590,839.52 730,667.85 87,089,302.57 18,805,479.45 24 2
1,321,507.37 595,763.18 725,744.19 86,493,539.39 19,531,223.64 25
1,321,507.37 600,727.88 720,779.49 85,892,811.51 20,252,003.13 26
1,321,507.37 605,733.94 715,773.43 85,287,077.57 20,967,776.56 27
1,321,507.37 610,781.72 710,725.65 84,676,295.85 21,678,502.21 28
1,321,507.37 615,871.57 705,635.80 84,060,424.28 22,384,138.01 29
1,321,507.37 621,003.83 700,503.54 83,439,420.45 23,084,641.55 30
1,321,507.37 626,178.87 695,328.50 82,813,241.58 23,779,970.05 31
1,321,507.37 631,397.02 690,110.35 82,181,844.56 24,470,080.40 32
1,321,507.37 636,658.67 684,848.70 81,545,185.89 25,154,929.10 33
1,321,507.37 641,964.15 679,543.22 80,903,221.74 25,834,472.32 34
1,321,507.37 647,313.86 674,193.51 80,255,907.88 26,508,665.83 35
1,321,507.37 652,708.14 668,799.23 79,603,199.74 27,177,465.06 36 3
1,321,507.37 658,147.37 663,360.00 78,945,052.37 27,840,825.06 37
1,321,507.37 663,631.93 657,875.44 78,281,420.44 28,498,700.50 38
1,321,507.37 669,162.20 652,345.17 77,612,258.24 29,151,045.67 39
1,321,507.37 674,738.55 646,768.82 76,937,519.69 29,797,814.49 40
1,321,507.37 680,361.37 641,146.00 76,257,158.32 30,438,960.49 41
1,321,507.37 686,031.05 635,476.32 75,571,127.27 31,074,436.81 42
1,321,507.37 691,747.98 629,759.39 74,879,379.29 31,704,196.20 43
1,321,507.37 697,512.54 623,994.83 74,181,866.75 32,328,191.03 44
1,321,507.37 703,325.15 618,182.22 73,478,541.60 32,946,373.25 45
1,321,507.37 709,186.19 612,321.18 72,769,355.41 33,558,694.43 46
1,321,507.37 715,096.07 606,411.30 72,054,259.34 34,165,105.73 47
1,321,507.37 721,055.21 600,452.16 71,333,204.13 34,765,557.89 48 4
1,321,507.37 727,064.00 594,443.37 70,606,140.13 35,360,001.26 49
1,321,507.37 733,122.87 588,384.50 69,873,017.26 35,948,385.76 50
1,321,507.37 739,232.23 582,275.14 69,133,785.03 36,530,660.90 51
1,321,507.37 745,392.49 576,114.88 68,388,392.54 37,106,775.78 52
1,321,507.37 751,604.10 569,903.27 67,636,788.44 37,676,679.05 53
1,321,507.37 757,867.47 563,639.90 66,878,920.97 38,240,318.95 54
1,321,507.37 764,183.03 557,324.34 66,114,737.94 38,797,643.29 55
1,321,507.37 770,551.22 550,956.15 65,344,186.72 39,348,599.44 56
1,321,507.37 776,972.48 544,534.89 64,567,214.24 39,893,134.33 57
1,321,507.37 783,447.25 538,060.12 63,783,766.99 40,431,194.45 58
1,321,507.37 789,975.98 531,531.39 62,993,791.01 40,962,725.84 59

Page 4 of 29
1,321,507.37 796,559.11 524,948.26 62,197,231.90 41,487,674.10 60 5
1,321,507.37 803,197.10 518,310.27 61,394,034.80 42,005,984.37 61
1,321,507.37 809,890.41 511,616.96 60,584,144.39 42,517,601.33 62
1,321,507.37 816,639.50 504,867.87 59,767,504.89 43,022,469.20 63
1,321,507.37 823,444.83 498,062.54 58,944,060.06 43,520,531.74 64
1,321,507.37 830,306.87 491,200.50 58,113,753.19 44,011,732.24 65
1,321,507.37 837,226.09 484,281.28 57,276,527.10 44,496,013.52 66
1,321,507.37 844,202.98 477,304.39 56,432,324.12 44,973,317.91 67
1,321,507.37 851,238.00 470,269.37 55,581,086.12 45,443,587.28 68
1,321,507.37 858,331.65 463,175.72 54,722,754.47 45,906,763.00 69
1,321,507.37 865,484.42 456,022.95 53,857,270.05 46,362,785.95 70
1,321,507.37 872,696.79 448,810.58 52,984,573.26 46,811,596.53 71
1,321,507.37 879,969.26 441,538.11 52,104,604.00 47,253,134.64 72 6
1,321,507.37 887,302.34 434,205.03 51,217,301.66 47,687,339.67 73
1,321,507.37 894,696.52 426,810.85 50,322,605.14 48,114,150.52 74
1,321,507.37 902,152.33 419,355.04 49,420,452.81 48,533,505.56 75
1,321,507.37 909,670.26 411,837.11 48,510,782.55 48,945,342.67 76
1,321,507.37 917,250.85 404,256.52 47,593,531.70 49,349,599.19 77
1,321,507.37 924,894.61 396,612.76 46,668,637.09 49,746,211.95 78
1,321,507.37 932,602.06 388,905.31 45,736,035.03 50,135,117.26 79
1,321,507.37 940,373.74 381,133.63 44,795,661.29 50,516,250.89 80
1,321,507.37 948,210.19 373,297.18 43,847,451.10 50,889,548.07 81
1,321,507.37 956,111.94 365,395.43 42,891,339.16 51,254,943.50 82
1,321,507.37 964,079.54 357,427.83 41,927,259.62 51,612,371.33 83
1,321,507.37 972,113.54 349,393.83 40,955,146.08 51,961,765.16 84 7
1,321,507.37 980,214.49 341,292.88 39,974,931.59 52,303,058.04 85
1,321,507.37 988,382.94 333,124.43 38,986,548.65 52,636,182.47 86
1,321,507.37 996,619.46 324,887.91 37,989,929.19 52,961,070.38 87
1,321,507.37 1,004,924.63 316,582.74 36,985,004.56 53,277,653.12 88
1,321,507.37 1,013,299.00 308,208.37 35,971,705.56 53,585,861.49 89
1,321,507.37 1,021,743.16 299,764.21 34,949,962.40 53,885,625.70 90
1,321,507.37 1,030,257.68 291,249.69 33,919,704.72 54,176,875.39 91
1,321,507.37 1,038,843.16 282,664.21 32,880,861.56 54,459,539.60 92
1,321,507.37 1,047,500.19 274,007.18 31,833,361.37 54,733,546.78 93
1,321,507.37 1,056,229.36 265,278.01 30,777,132.01 54,998,824.79 94
1,321,507.37 1,065,031.27 256,476.10 29,712,100.74 55,255,300.89 95
1,321,507.37 1,073,906.53 247,600.84 28,638,194.21 55,502,901.73 96 8
1,321,507.37 1,082,855.75 238,651.62 27,555,338.46 55,741,553.35 97
1,321,507.37 1,091,879.55 229,627.82 26,463,458.91 55,971,181.17 98
1,321,507.37 1,100,978.55 220,528.82 25,362,480.36 56,191,709.99 99
1,321,507.37 1,110,153.37 211,354.00 24,252,326.99 56,403,063.99 100
1,321,507.37 1,119,404.65 202,102.72 23,132,922.34 56,605,166.71 101
1,321,507.37 1,128,733.02 192,774.35 22,004,189.32 56,797,941.06 102
1,321,507.37 1,138,139.13 183,368.24 20,866,050.19 56,981,309.30 103
1,321,507.37 1,147,623.62 173,883.75 19,718,426.57 57,155,193.05 104
1,321,507.37 1,157,187.15 164,320.22 18,561,239.42 57,319,513.27 105
1,321,507.37 1,166,830.37 154,677.00 17,394,409.05 57,474,190.27 106
1,321,507.37 1,176,553.96 144,953.41 16,217,855.09 57,619,143.68 107
1,321,507.37 1,186,358.58 135,148.79 15,031,496.51 57,754,292.47 108 9
1,321,507.37 1,196,244.90 125,262.47 13,835,251.61 57,879,554.94 109
1,321,507.37 1,206,213.61 115,293.76 12,629,038.00 57,994,848.70 110
1,321,507.37 1,216,265.39 105,241.98 11,412,772.61 58,100,090.68 111
1,321,507.37 1,226,400.93 95,106.44 10,186,371.68 58,195,197.12 112
1,321,507.37 1,236,620.94 84,886.43 8,949,750.74 58,280,083.55 113
1,321,507.37 1,246,926.11 74,581.26 7,702,824.63 58,354,664.81 114
1,321,507.37 1,257,317.16 64,190.21 6,445,507.47 58,418,855.02 115
1,321,507.37 1,267,794.81 53,712.56 5,177,712.66 58,472,567.58 116
1,321,507.37 1,278,359.76 43,147.61 3,899,352.90 58,515,715.19 117
1,321,507.37 1,289,012.76 32,494.61 2,610,340.14 58,548,209.80 118
1,321,507.37 1,299,754.54 21,752.83 1,310,585.60 58,569,962.63 119
1,321,507.15 1,310,585.60 10,921.55 - 58,580,884.18 120 10
- - - - 58,580,884.18 121
- - - - 58,580,884.18 122
- - - - 58,580,884.18 123
- - - - 58,580,884.18 124
- - - - 58,580,884.18 125
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- - - - 58,580,884.18 144 12
- - - - 58,580,884.18 145
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- - - - 58,580,884.18 180 15
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 - - - - 58,580,884.18 194
- - - - 58,580,884.18 195
- - - - 58,580,884.18 196
- - - - 58,580,884.18 197
- - - - 58,580,884.18 198
- - - - 58,580,884.18 199
- - - - 58,580,884.18 200
- - - - 58,580,884.18 201
- - - - 58,580,884.18 202
- - - - 58,580,884.18 203
- - - - 58,580,884.18 204 17
- - - - 58,580,884.18 205
- - - - 58,580,884.18 206
- - - - 58,580,884.18 207
- - - - 58,580,884.18 208
- - - - 58,580,884.18 209
- - - - 58,580,884.18 210
- - - - 58,580,884.18 211
- - - - 58,580,884.18 212
- - - - 58,580,884.18 213
- - - - 58,580,884.18 214
- - - - 58,580,884.18 215
- - - - 58,580,884.18 216 18
- - - - 58,580,884.18 217
- - - - 58,580,884.18 218
- - - - 58,580,884.18 219
- - - - 58,580,884.18 220
- - - - 58,580,884.18 221
- - - - 58,580,884.18 222
- - - - 58,580,884.18 223
- - - - 58,580,884.18 224
- - - - 58,580,884.18 225
- - - - 58,580,884.18 226
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- - - - 58,580,884.18 228 19
- - - - 58,580,884.18 229
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- - - - 58,580,884.18 238
- - - - 58,580,884.18 239
- - - - 58,580,884.18 240 20

Total extra

Total principal 100,000,000.00

Total interest 58,580,884.18
Total repayment 158,580,884.18

Page 7 of 29
PROTONTEL Year 1 Year 2 Year 3 Year 4
PROJECTED INCOME STATEMENT
Total Revenue 35,921,280 57,884,257 69,254,325 80,411,696

Direct Costs
Cost of Sales 3,592,128 5,788,426 6,925,433 8,041,170
Lease of shops 179,606 270,127 300,102 268,039
Dealer commission 598,688 964,738 1,154,239 1,340,195
SIM and recharge cards 119,738 192,948 230,848 268,039
Handset and accessories costs 119,738 192,948 230,848 268,039
Roaming costs 359,213 578,843 692,543 804,117
VAS costs 598,688 964,738 230,848 268,039
Wholesale 239,475 385,895 461,696 536,078
Interconnection costs 1,197,376 964,738 1,154,239 1,340,195
Regulatory 598,688 964,738 1,154,239 1,340,195
Total Direct Costs 7,603,338 11,268,135 12,535,033 14,474,105

GROSS PROFIT 28,317,942 46,616,122 56,719,292 65,937,591

Non-Cash Overheads
Depreciation 7,567,010 8,870,192 10,574,986 12,430,057
Amortisation 6,666,667 6,666,667 6,666,667 6,666,667
Total Non-Cash overheads 14,233,676 15,536,859 17,241,653 19,096,723

Other Fixed Overheads

Sales, Marketing and Advertising 5,000,000 4,000,000 3,500,000 3,000,000
Network Maintenance 6,000,000 8,500,000 8,925,000 9,371,250
IT and Billing 1,000,000 1,300,000 1,450,000 1,600,000
Personnel and Training 2,500,000 2,550,000 2,601,000 2,653,020
Debt Collection Charges 320,000 340,000 360,000 380,000
General 30,000 50,000 65,000 80,000
Site Leasing/Rentals 156,563 235,869 339,409 451,082
Total Other Fixed overheads 15,006,563 16,975,869 17,240,409 17,535,352

TOTAL OVERHEADS 29,240,239 32,512,728 34,482,062 36,632,076

Net Operating Profit (922,297) 14,103,394 22,237,230 29,305,515

EBITDA Margin 37% 51% 57% 60%

Net Finance Costs

Interest Paid/(Earned) 9,723,904 9,081,575 8,371,986 7,588,093
Total Net Finance Cost 9,723,904 9,081,575 8,371,986 7,588,093

Net Profit before tax (10,646,201) 5,021,819 13,865,245 21,717,422

Taxation (2,980,936) 1,406,109 3,882,269 6,080,878

Net Profit after Tax (7,665,265) 3,615,709 9,982,976 15,636,544

Page 8 of 29
 0 Year 1 Year 2 Year 3
PROJECTED INCOME STATEMENT
Total Revenue 57,884,257 69,254,325 80,411,696

PROJECTED INCOME STATEMENT

Year 1 Year 2 Year 3
REVENUE 35,921,280 57,884,257 69,254,325 PROJECTED INCOME
NET INCOME - 10,646,201 5,021,819 13,865,245
100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

-
Year 1 Year 2

-20,000,000

REVENUE NET
 Year 4

NT
Year 4
PROJECTED INCOME STATEMENT
80,411,696
000,000 21,717,422

000,000

000,000

000,000

000,000

-
Year 1 Year 2 Year 3 Yea r 4

000,000

REVENUE NET INCOME

ISLAND TELCO INC. Year 1 Year 2 Year 3 Year 4
PROJECTED BALANCE SHEET
ASSETS

NON-CURRENT ASSETS
Intangible Assets - Licence Fee 93,333,333 86,666,667 80,000,000 73,333,333
Property, Plant & Equipment 37,835,049 36,783,951 36,437,729 35,138,095
Total Non-Current assets 131,168,382 123,450,617 116,437,729 108,471,428

CURRENT ASSETS 55,425,859 62,645,851 73,521,313 90,139,634

Accounts Receivable 2,993,440 4,823,688 5,771,194 6,700,975

Cash in Bank 52,432,419 57,822,163 67,750,119 83,438,660

TOTAL ASSETS 186,594,241 186,096,469 189,959,042 198,611,063

EQUITY & LIABILITIES

EQUITY
Share Capital 100,000,000 100,000,000 100,000,000 100,000,000
Retained Income - 7,665,265 - 4,049,556 5,933,421 21,569,965
Shareholders Interest 92,334,735 95,950,444 105,933,421 121,569,965

NON-CURRENT LIABILITIES 87,089,303 79,603,200 71,333,204 62,197,232

Interest Bearing Loans 87,089,303 79,603,200 71,333,204 62,197,232

CURRENT LIABILITIES 7,170,204 10,542,824 12,692,417 14,843,866

Accounts Payable 1,884,158 2,353,667 2,481,287 2,667,455

Current portion of loans 6,776,513 7,486,103 8,269,996 9,135,972
Provision for Tax - 1,490,468 703,055 1,941,134 3,040,439

TOTAL EQUITY & LIABILITIES 186,594,241 186,096,469 189,959,042 198,611,063

Page 11 of 29
ISLAND TELCO INC. Year 1 Year 2 Year 3 Year 4
PROJECTED CASH FLOW
RECEIPTS

Customer Collections 32,927,840 56,054,009 68,306,819 79,481,915

Loan received 100,000,000
Shareholders Funds Received 100,000,000
232,927,840 56,054,009 68,306,819 79,481,915

PAYMENTS

Supplier Payments 20,725,742 27,774,496 29,647,822 31,823,290

Loan Repayments 15,858,088 15,858,088 15,858,088 15,858,088
Income tax payments (1,490,468) (787,414) 2,644,189 4,981,573
Assets purchased 145,402,058 7,819,094 10,228,765 11,130,423
180,495,421 50,664,265 58,378,864 63,793,374

SURPLUS/(DEFICIT) 52,432,419 5,389,744 9,927,956 15,688,541

OPENING BALANCE 0 52,432,419 57,822,163 67,750,119

CLOSING BALANCE 52,432,419 57,822,163 67,750,119 83,438,660

Page 12 of 29