Grace CastilloGlobe Telecom

The Philippine Voice BPO Advantage

Agenda

Globe Telecom: Who We Are, What We Do The Philippine Voice BPO Industry Typical Voice BPO Set-Up Philippine Voice BPO Success Stories Summary

Globe Telecom: Who We Are, What We Do

Globe Telecom is a full-service telecommunications provider in the Philippines, catering to more than 25.7 million mobile subscribers, 287K broadband subscribers and over 100,000 businesses.

Partly owned by SingTel & Ayala Group of Companies

Globe Business serves all the telecommunications requirements of local and foreign businesses in the Philippines, small, medium and large businesses from diverse industries, with key focus on the offshoring and outsourcing industry.

Globe has its own international gateways, cable landing stations, domestic fiber backhaul and a national access network (data, fiber, 3G/HSDPA, WiMAX)

Globe has worked with various O&O players including government to foster an environment attractive and cost effective for business

The Philippine Voice BPO Industry

BPOs in the Philippines have been growing at a rapid pace, with an expected growth of 23% in revenues in 2009, and to grow by as much as 26% in 2010

Provides work for more than 60% of total manpower employed in the industry today

Software10%

ContactCenter

68%

Back Office14%

EngineeringTranscription

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6.1B USD

4%3%

2%

Software10%

ContactCenter

68%

Back Office14%

EngineeringTranscription

Animation

6.1B USD

4%3%

2%

Software9%

ContactCenter

61%

Back Office19%

TranscriptionEngineering

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372K Employees

5%3% 2%

Software9%

ContactCenter

61%

Back Office19%

TranscriptionEngineering

Animation

372K Employees

5%3% 2%

2008 Breakdown by Employees 2008 Breakdown by Revenue

Did you know that ….

70% of the total BPO market are serviced by contact centers 61% of employees are working as contact center agents US$ 4.5 B out of US$ 7.5B (est 2009) gross revenues are

attributed to contact centers

*54% of contact handling activities are done on the phone, followed by email at 18%

*56% of these calls gets converted to a sale, whether inbound or outbound. The highest among 5 top offshoring destinations

*100% of captive centers in the Philippines do it onshore

*Source: Asian Contact Center Industry Benchmarking Report 2008, by Callcentres.net

The Philippine Voice BPO Advantage

What are the advantages of a voice BPO locating in the Philippines? Large pool of English-speaking talents at competitive rates* Better language skills, with 64% of Filipino call center agents able

to speak more than 2 languages Level of accent neutralization is significantly low Filipinos take less time to train, thus less cost.

Strong Government support (income tax holidays, PEZA locations, labor & training incentives, etc)

High degree of cultural compatibility Aptitude for service Good telecommunications infrastructure

*Tholons Report, IOS, Oct 2009**Kelly Services Report in partnership with ACA Research, Oct 2006

The Underlying Infrastructure

ILOILO

BACOLOD

CABANATUAN

BAGUIO

SOLANO

TARLAC

CAUAYAN

TUGUEGARAO

LAOAG

PAGADIAN

PILI

LEGASPI

PAGBILAO

TACLOBAN

CALBAYOG

ORMOC

MAASIN

TAGBILARAN

BAUANG

BALLESTEROS

SAN VICENTE

SFLU

DAU

MALOLOS

DALANDANAN

NEW TALAVERA

GAPANPLARIDELSUBIC

CABALAN

DINALUPIHAN

BALANGA

LUBAO

SFP

TARLAC

DAU

ACACIAESPANA

SAN JUAN

MARIKINA MANDALUYONG

PIONEER

DASMARINASBINAN

CARMONA

LIPA2

PRINZASTO TOMAS

TIAONG

DAUIN

ROXAS

KABANGKALAN

DUMAGUETEBACONG

CDO

BUTUAN

OZAMIS

IPIL

TUNGAWAN

ZAMBOANGA

PROSPERIDAD

BUNAWAN

TAGUM

DAVAO

DAVAO2

MALAYBALAY

MARAMAG QUEZON

MLANG

KORONODAL

GENSAN

TALISAY

LAHUG

SAN REMIGIO

SAN JOSE

MAMBURAO

NASUGBU

BACOOR ERMITA

CADIZ

CANEROAURORA

VALERO

ILIGAN

BATANGAS

LAHUG

TALAMBANLABOGON

TAYUD

MEPZA

ABACUS

KANGHA

TALISAY

LABANGONONGTIAK

METROBANK

CDO

CDO BSC

KAUSWAGAN

BULUANAZARETH

LAPASAN

DAVAO

DAVAO BSC

SASA

AGDAO

OBRERO

CAP BLDG

Network After Strategy 3

Notes:

Telic Phil

LUZON SDH INNER CORE

CEBU SDH INNER CORE

CDO SDH INNER CORE

DAVAO SDH INNER CORE

Span Protection (Aer&UG)Ballesteros-Tarlac

More Nodes meansmore coverage

Additional Protectionfrom Telic Phil Network

Presence in Tagbilaran

Smaller RingsIn S. Luzon

GLOBE’S DOMESTIC BACKBONE

Nationwide coverage

Fully protected with

diverse routes

Clusters of fiber loops

100% Owned and

Maintained by Globe

Serves Next Wave Cities for

BPOs

BATANGAS

EXISTING CABLE LANDING EXISTING CABLE LANDING

SITE SITE (NASUGBU)(NASUGBU)

TGN-Intra AsiaTGN-Intra Asia

APCN2APCN2

To HONG KONGTo HONG KONG

To JAPANTo JAPAN

VALEROVALERO

TUGUEGARAOTUGUEGARAO

BALLESTEROBALLESTEROS (Cagayan )S (Cagayan )

EACEAC

To SingaporeTo Singapore

The Underlying Infrastructure – International cable systems

Globe’s “IP Connectivity”

Starhub Verizon

AT&T Cogent

Level 3

GLOBAL

DOMESTICDOMESTIC

GlobeGlobe

AS 4775 AS 18249AS 17894

How are call centers set-up in the Philippines today?

Typical Call Center Set-Up: 1. Using Traditional PSTN/IGF Voice Connection

Typical Call Center Set-Up: 2. Building Private Networks

Private Networks – Point to Point International leased circuits or Global MPLS Networks

INTERNATIONAL PARTNERS

Singapore Global Switch

Hong Kong Mega-I

Japan Shinagawa

Philippines VALERO

TGN-IA TGN-IATGN-IA EACEAC APCN2 EACC2C

ERMC (over-land route)

TEA(over-land route)

USA

Europe (UK) Europe (UK) Europe (UK)

SMW4

Latency approx. 250msLatency approx. 250msLatency approx. 260msLatency approx. 260msLatency approx. 270msLatency approx. 270ms

Typical Call Center Set-Up: Private Network

Typical Call Center Set-Up: 3. Managed Voice Service

Typical Call Center Set-Up: 3. Managed Voice Service

•Turn-key managed voice solution including, local access, international leg, switching and multiplexing, international PoP with PSTN termination and aggregation services•Pay-per-use model with full scalability•Works with existing call center equipment•Fully managed service•On-Demand Traffic Reporting•Industry leading SLAs

Option for Managed Services

Managed PBX Hosted Contact Center Integrated multi-vendor solution

Benefits Vendor – agnostic Flexible business models – can be capex or opex model With After sales support after warranty Scalable offer – expand when you need it Obsolescence-free as you don’t carry the depreciation and can

upgrade after contract without baggage

Revolution in Communications Architecture – Integrated multivendor solution

Flexibly connect users, applications and systems enterprise-wide

EnterpriseNetwork

CollaborationApps Video

AppsBusiness

Apps

AvayaNew York

AvayaLondon

NortelHong Kong

SiemensFrankfurt

Contact CenterMumbai

CiscoRome

Contact CenterChicago

Usersanywhere

AppsIntegratedAvaya

AuraNew York

AvayaLondon

NortelHong Kong

SiemensFrankfurt

Contact CenterMumbai

CiscoRome

Contact CenterChicago

Data CentersData Centers

SIP Trunking

AvayaAura

Case Study : Transcom

Established 1995 The largest geographic footprint in

Europe Over 23,000 employees serving

customers in 33 languages Delivering services from 75 centres in

29 countries Net sales up 5.4% in 2008 to 631.8 M€

(599.2M €)

24% average annual revenue growth since 1999

Listed at the OMX Nordic Exchange.

Main shareholder: the Swedish investment group Kinnevik (Europe’s 8th largest investment company)

Global Footprint

EuropeUnited Kingdom LithuaniaSpain CroatiaGermany PortugalFrance NorwayItaly Czech

RepublicSweden NetherlandsDenmark EstoniaSwitzerland PolandAustria BelgiumHungary SerbiaRomania Latvia

North AmericaCanada U.S.A

South AmericaChile Argentina

AsiaPhilippines China (2009)

Africa Tunisia

Transcom North America & Asia Network Diagram

MANILA

Transcom Asia - Manila

Manila Gateway

Network Solution

-Dual ATM links from Canada to Manila, and Dual MPLS access to our UK switch-Load balanced with seamless failover in the event on link goes down-Redundant design with different local carriers both ends, landing stations, local exchange, building access, etc-Carries both voice and data traffic-3 Class of Services categories with Voice prioritized, critical system traffic 2nd , and non critical traffic in the 3rd class.

ATM Circuits

Transcom Home Agents

Transcom Asia - UK

UK Gateway

MPLS

Transcom North America

Ontario Gateway

St. Catharine’s Ontario

UK

Case Study : Sutherland

23 Years of BPO experiencePresent in 7 countries: Headquartered in the US, biggest in

India,Philippines, Nicaragua, Bulgaria, Canada, Mexico with more than 26,000 employees7 centers in 5 geographic locations in the PhilippinesMore than 9,000 in the PhilippinesBPO Integrated Solutions

Finance & Accounting Insurance Information & Technology Retail Telecommunications

SUTHERLAND’S VOICE NETWORK

In Summary…

The Philippine continues to be the preferred Voice-BPO destination because Abundant & reliable talent Competitive rates Strong support from local industry & Government Good infrastructure

Contact Centers in the Philippines already have a number of options to connect to the world Via Traditional PSTN Via Private Network Via Managed Voice Services

Service Providers are continuously working on finding new technology to improve connectivity and voice quality, to enable the BPO industry serve their clients the best way possible

Grace J. CastilloHead, Enterprise Sales Email: cjcastillo@globetel.com.phPhone: +632 7978008Mobile: +63917 7978008

Thank You