SUMMARY : INDUSTRY OVERVIEW for 2012

LUZONLUZON

VISAYASVISAYAS

MINDANAOMINDANAO

“Wireless” remains the future of the Philippine

telecom industry, with mobile phone penetration

already at 60% and growing. Telecom carriers

are now looking at wireless broadband and

wireless landline services as the next big wave.

The subscription TV industry in the Philippines also

remains a market of considerable potential.

There are also opportunities for digital multimedia

and content providers. DOOH business to grow

exponentially following worldwide market growth.”

Source :The US Commercial Service

MARKET DEMAND INDICATORS for 2012

CELLULAR PHONE CABLE TV

FIXED LINE INTERNET

# OF SS P - RATE

58 Million 61.7%

# OF SS P - RATE

2.5 Million 13.85%

(10.5%)

# OF SS P - RATE

3.6 Million 20%

# OF SS P - RATE

24 Million 25%

POP.

94 Million

Data is based

on 18 M

total number

of households

(Source: BuddeComm based on NTC and

The US Commercial Service )

TELECOM MARKET DATA for 2012

PLDT GLOBE TELECOM

SMART COMM. DIGITEL

BAYANTEL

ETPI/LBNI

Broadband Subs. Hit 1 Million mark with revenue surging at 43% to pesos 11 B

Broadband subs hit 350k w/ revenue surge to pesos 2.8 B

Reported 21M mobile wireless subs as of 2010

Bayan wireless landline projects 10-15% annual growth rate with BWL subs now at 250k BWL

Has reported to have reached the 31 Million subscribers as of 2010

Has breached the 50 M subscribers as of Q3 2011

Has 650k wireline subs

Press release Q3 2010, states that it has already a 10 M post paid subscribers

2010 has a reported 125k broadband subs.

Made revenue gains on gaming business

Continuous build-up in the provinces on broadband

Source : Businessworld Top 1000

Corp. in the Philippines

GLOBE TELECOM BAYANTEL

SMART COMM.

TELECOMS INDUSTRY

Key Highlights

� 2007 wireless coverage is 98% of the country, whilePSTN ( wireline ) is increasing from its 2006 level of 58%

� 2009, 4G technology is rolled out by new telecom playersin the industry. GSM is still the current Philippine cellularinfrastructure.

� Fiber to the Home (FTTH) is being deployed in someselected high end areas and Commercial Business District’s.

� Wifi and Wimax is available, with WiFi as the preferredtechnology

� VOIP is available and is classified as a “value added service”

� San Miguel Corp. buys several key telco companies withfinancial backing from QTEL, buys Liberty Telecoms(Meridian Broadband Co.), Bell Telecoms, and mobilecompany Extelcom. Share swap agreement with ETPI

(Cable and Wireless) ink last June 2010 in preparation for atriple play services ( voice – wired and wireless, data, video,etc)

� PLDT rolls out extensive NGN nationwide telecominfrastructure in Luzon, Visayas and Mindanao

Source :The Phil. Daily Inquirer

TELECOMS INDUSTRY

Key Highlights

� Bayantel is also eyeing expansion plans on its BWLsolution to cope up with the expansion plans of itscompetitor/s.

� A nationwide fiber backbone is due for launch on March2012 by Belltel following last months released ofadditional investment by QTEL with SMC.

� Several strategic partnership are brewing up as SMC ispartnering with SM Group’s NGCP on interconnection offiber backbone facilities.

� Belltel has already awarded to Nokia-Siemens Networkand Ericsson Phils., the roll-out plans on its cellularexpansion starting in Luzon.

� Whereas, LBNI is also due to roll-out a Metro ManilaFiber Backbone facility also by 2012. The project mightbe awarded to MG Exeo of Japan.

� Also due to take place coming from confidential sourcesis a triple play partnership between Globe Telecoms andSkycable ( either way, there might be a buy-out or apartnership taking place b y 2012 )

Source :The Phil. Daily Inquirer/

Business world

PHILLIPINESPHILLIPINES

POPULATION 93,348,993

TOTAL HOUSEHOLD 18,051,630

ACTUAL EST.

19.34%

PERCENT

MULTICHANNEL

HOMES1,630,521

SUBSCRIPTION TV 2,500,000

12.00%

13.85%

HOUSEHOLD SIZE 5.2

TOTAL HH WITH TV 13,587,674 75.3%

LUZONLUZON

VISAYASVISAYAS

MINDANAOMINDANAO

CATV MARKET DATA

Source :CASBAA, SNL Kagan, Internet World

Statistics (as of September 2010)

% P In Urban Area 1,520,000 60.80%

% P In Rural Area 980,000 39.20%

1. IN THE PHILIPPINES,

� Metro Manila has the television penetration rate

(% of population with TV sets) at 96%.

� Cavite, Laguna, Rizal and Bulacan have a combined

TV penetration rate of 93%.

� Luzon has an average TV penetration rate of 70%,

� Mindanao 63% and

� Visayas 60%.

� Metro Cebu and Metro Davao has a TV

penetration rate more than the national average of 71%.

Metro Cebu and Metro Davao has 90% TV penetration rate.

� TV penetration rate is higher in urban areas than in rural areas.

2. IN THE PHILIPPINES,

� Nearly 100% of the upper class have TV sets,

� 94% of the middle class have TV sets and

� 46% of the lower class have TV sets in the country.

(Source:Philippine Media Factbook)

NUMBER OF BROADCAST AND CATV STATIONS BY REGION

( as of Dec 2010 )

REGION AM FM TV TV RELAYTV X'

LATOR

DTU /

DBSCATV MMDS TOTAL

NCR 31 25 22 0 0 0 42 0 120

CAR 11 20 10 4 6 0 13 0 64

I 33 38 13 3 2 0 84 0 173

II 19 38 16 1 4 0 67 1 146

III 18 24 13 1 8 2 11 0 77

IV 31 76 30 4 4 1 210 0 356

V 36 68 30 3 8 0 72 0 217

VI 35 71 29 3 2 0 72 0 212

VII 27 47 21 2 6 0 67 0 170

VIII 22 30 11 7 0 0 71 0 141

IX 23 44 21 0 7 0 37 0 132

X 22 37 21 0 3 0 32 0 115

XI 34 77 31 1 0 0 18 0 161

XII 14 23 9 0 1 0 42 0 89

ARMM 9 7 5 0 0 0 1 0 22

CARAGA 18 34 15 1 5 0 34 0 107

TOTAL 383 659 297 30 56 3 873 1 2302

Source :Nat’l Telecommunications Comm.

CATV Market Data for 2012

PHILIPPINE CABLE TV

ASSOCIATION ( PCTA )

• Composed of the biggest CATV

operators in the Philippines, as

well as medium and small cable

operators

• PCTA’s member cable operators

serve 90% of the total cable

subscribers in the Philippines

• Supports the CABLE TV BILL

allowing foreigners to own up

to 30% of cable TV companies

• Composed of the biggest CATV

operators in the Philippines, as

well as medium and small cable

operators

• PCTA’s member cable operators

serve 90% of the total cable

subscribers in the Philippines

• Supports the CABLE TV BILL

allowing foreigners to own up

to 30% of cable TV companies

Source : Phil. Cable TV Association

FEDERATION OF INT’L.

CABLE TV ASSOCIATION OF

THE PHILS. ( FICAP )

• Composed of small CATV operators

located in rural areas having lower

than 3,000 subscribers

• A breakaway group of PCTA which

vigorously opposed the requirement

to make CATV licenses subject to

congressional approval.

•There was also strong objection to

opening the CATV market to any

foreign investments.

• Composed of small CATV operators

located in rural areas having lower

than 3,000 subscribers

• A breakaway group of PCTA which

vigorously opposed the requirement

to make CATV licenses subject to

congressional approval.

•There was also strong objection to

opening the CATV market to any

foreign investments.

CATV Market Data for 2012

SKYCABLE

The largest and NO. 1 CATV operator in the PHILIPPINES has more than15M CATV subscribers

Has the most extensive cable network. Has joint partnerships with 9subsidiaries and 75 provincial affiliates

Operates in key major cities nationwide like Metro Manila, Cebu City,Davao City, Laoag City, Naga City, General Santos City, etc.

Offers cable internet services via Skycable Net, and ZPDee

Owns Home Cable with around 4M subs and 550k CATV internet subslast reported last 2009

Claims to control about 70% of the CATV market

Source : Phil. Cable TV Association

According to Phil. Cable TV Association ( PCTA ), there are 20.5 Million subscribers in the Philippines

CATV Market Data for 2012

GLOBAL DESTINYGLOBAL DESTINY

COMCLARK

CABLELINKCABLELINK

ASIAN VISION

2nd largest CATV operator at500k + subs. and 250k cableinternet subs. all in MM

Competes pricewise withSkycable (already owned bySkycable)

Is expanding their FOC infra,now in QC and Cavite

The 3rd largest CATV operatorclaiming 300k subs. and 100kinternet subs.

Has 200k + CATV subs, and 50k internet subs.

Based in Clark, Pampanga. Oper in Central Luzon area/s

Expanding in MM using ETPI excess dark fibers

Source : Phil. Cable TV Association

Has almost 200k + CATV subs, and 50k internet subs.

Operates in Batangas, Zambales and

Quezon Province

CABLELINKGLOBAL DESTINY

CATV Market Data for 2012

FIL - PRODUCTS PARASAT

•6th largest CATV operator

at 100k + subscribers and

10k + cable internet

subscribers

•Operating in the Visayas

key cities and provinces

•6th largest CATV operator

at 100k + subscribers and

10k + cable internet

subscribers

•Operating in the Visayas

key cities and provinces

•The 7th largest CATV

operator claiming 100k +

subscribers and 20k

internet subs.

•Operating in key

Mindanao cities like CDO

•Is expanding operations

in the Visayas area/s

•The 7th largest CATV

operator claiming 100k +

subscribers and 20k

internet subs.

•Operating in key

Mindanao cities like CDO

•Is expanding operations

in the Visayas area/s

PLANET CABLE

•Has reported to breached

the 100k CATV subs

•Operating in Villar’s key

real property estates

•Reported 30k internet

subscribers

•Has reported to breached

the 100k CATV subs

•Operating in Villar’s key

real property estates

•Reported 30k internet

subscribers

Source : Phil. Cable TV Association

It is estimated that 9 out of 10 Phil. households has access to a TV set. The number of TV sets in the Philippines by end 2008 was estimated at 34 M for a population of 94 Million people.

CATV Industry

Key Highlights

� Entry of New players on Direct To Home (DTH )

satellite TV service/s, CIGNAL MEDIASCAPE and GSAT

last March and June 2009, respectively.

� CIGNAL - Owned by Mediascape, a wholly owned

subsidiary of the MediaQuest Holdings Inc., under the

PLDT Beneficial Trust Fund

� GSAT - A Samoa based company who

partnered with Solar Films program provider, and

several major CATV operators like Global Destiny,

Parasat, Cable Star, etc

� Amended the 100% Filipino ownership agreement by

endorsing a CATV Bill allowing foreigners to own up

to 30% of CATV companies.

� 2009, Villar Group buys several major CATV operators

and forms new CATV operator Planet Cable

Source :The Phil. Daily Inquirer

DTH Market Data for 2012

DREAM SATELLITE

The only DTH operator until after 2008 when Cignal and GSAT establish competition

Is still the largest DTH operator at more than 200k+ subscribers

Negotiations for buy-out by PLDT still on-going since 2009

Is also being eyed by Ayala Corp looking at the large potential subs market demand

CIGNAL MEDIASCAPE

Reported increase subs base breaching 100k subs especially in MM areas and key Luzon cities

Is expanding operations in Visayas and Mindanao area/s

Selling thru accredited partner-resellers and installers

Has financial support from PLDT Beneficial Fund

Source : Phil. Cable TV Association

DTH Market Data for 2012

GSAT DTH

Began operations June 2009, is the lowest DTH operator promoting services in provincial area/s beyond the reach of CABLE TV.

Eyeing potential management consolidation in the Philippines

Offering local PCTA and FICAP CATV member operators as partner-resellers

Source : Phil. Cable TV Association

The Cable and Satellite Broadcasting Association of Asia (CASBAA) reports of “widespread resale of pirate signals”, sapping the vitality of the legitimate CATV industry and handicapping potential competition from new transmission means such as DTH and IPTV

services

COAXIAL CABLE STATUS UPDATE

FOR PCT CABLE ( MOCSY7 )

As Of August 2011

ITEM DESCRIPTION SKYCABLE GLOBAL CABLELINK ASIAN PILIPINO CIGNAL GSAT PCTA FICAP

NO. DESTINY VISION (Sky Prov.) DTH DTH (Majority) (Majority)1 RG-6, 60% BRAID

non - messengered X X X - X X X X X

messengered X X X - X - - X X

tri-shield, non-messengered - - - X X - - X -

tri-shield, messengered - - - X X - - X -

2 RG-6, 90% BRAID

non - messengered X - - - - - - - -

messengered X - X - - - - - -

tri-shield, non-messengered - - - - X - - X -

tri-shield, messengered - - - - X - - X -

3 RG-500 - - - X - - - X X

4 RG-565 X X X - X - - X X

- -

5 RG-625 - X - - - - - - -

6 RG-840 X - - - X - - - -

7 RG-11 - - - - - - - X X

8 FOC, 9/125 um, SM, w/ jelly

with armoring, 2 ripcords

non-messengered - - - - - - - - -

messengered X X X X X X X X X

9 TYPE-APPROVAL STATUS PASSED PASSED PASSED PASSED PASSED PASSED PASSED PASSED PASSED