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Institutional » The Company » Interview with Claude Burgio Interview with Claude Burgio Claude Burgio is SkyOnline Founder, Chairman and CEO; he brings over 30 years of executive experience in the High-Tech telecommunications industry. Claude was previously President of Lockheed Martin Telecommunications, Vice President of INTELSAT, Director of Aerospatiale Telecommunication satellite systems. Q: What is SkyOnline? A: SkyOnline is a Telecommunication Boutique, incorporated in Delaware USA, managed from Buenos Aires, with operations in Argentina, Colombia, Mexico and Panama. SkyOnline regional network is operated from Buenos Aires and has a Point of Presence in the NAP of the Americas in Miami. SkyOnline has: • A regional redundant fiber network, heritage of the acquisition of Teleglobe Latin America. For instance we are the 4th largest co-owner of the Maya-1 undersea fiber network joining Colombia and Central America to Miami with a capacity of 8 STM1s. • Wireless Local Loops, heritage of the Diveo acquisition in Argentina and Panama • satellite services, heritage of the acquisition of Direct-to-Phone-International in Mexico • In addition SkyOnline has a world class Data Center in Buenos Aires. Today SkyOnline offers: • Connectivity services which include:    o Long Haul services from major cities in Latin America to Miami    o Local loops (fiber or wireless)    o Satellite services for voice and data/internet • Telephony • Value Added Services which include:    o Managed Business Services    o Security, Hosting, Collocation, Digitization of documents, e-learning packages, etc.    o Streaming, VoIP (SkyTone), IPTV (SkyView) SkyOnline is a profitable and debt free alternative telecommunications company, delivering modern, reliable and price competitive products and services. Q: Who are your customers? A: Today most of our revenues are generated by Medium Size Enterprises, to which we provide Connectivity, Telephony and Value Added Services. Our business customers are both US and Latin American companies. We have however two exceptions to the above: • In Buenos Aires, in an effort to maximize economies of scale, we have acquired a large base of Internet residential customers that we serve through the brand of Netizen. Last acquisition was AOL Argentina customer base. Our objective is to convert dial-up customers into broadband users and to provide them VoIP (SkyTone) and IPTV (SkyView) and other VAS. • In Mexico, in addition to serving business customers, we provide satellite based telephony services in remote area.Q: What opportunities do you see for SkyOnline in the near future? A: There are many facets to your question: First, we see the Latin American telecommunications market continuing to grow. After the bottom in 2002, which SkyOnline used as an opportunity for a string of acquisitions, the local economies have regained considerable strength. Latin American stock markets have been among the best performing stock markets of the world over the last few years. Local currencies, too, are stabilizing and even regaining strength. The Latin American telecommunications market is one of the fastest growing telecom¬munication markets in the world, partly due to penetration rates that are still compara¬tively low, especially in secondary cities. Second, we see the data/internet segment (connectivity and VAS) as the key for growth and profitability, for both fixed and mobile services: As in many parts of the World, we are witnessing two important trends: • One related to the convergence between fixed and mobile communications as a result of the deregulation of the 2.5 GHz spectrum and the development of Wi-Max technologies; these technologies and frequencies do not require Line-Of-Sight, and therefore they allow the delivery of broadband services to both fixed and mobile terminals with a low cost infrastructure. SkyOnline has in some major cities in Latin America, the 2.5 GHz license and frequency and intends to be a player in that field • One related to the content: The digitization of the content allows the delivery of more and more sophisticated Value Added Services. Since its inception, SkyOnline has evolved from being a pure connectivity provider to a provider of Telecommunications and VAS. We have a World Class Data Center in Buenos Aires and we are using it as a platform for the delivery of VAS on an ASP mode; it means that customers using our VAS will be charged by the use. Let me give you two examples of services provided by our Data Center: o SkyDoc, a software platform which allows the electronic storage of documentation and remote access on the Internet. o SkyCard, a software platform which allows the processing of financial transactions (credit cards). The platform has been developed by a major worldwide partner, specialized in financial transactions; the platform is hosted in our data center and is being made available to credit card companies to help them manage fast and secure digital transactions, at a fraction of the cost of more conventional posnet services.Here too we intend to strengthen our position in the market.Third, we recognize that the most successful part of our growth came from acquisitions, we have been good at that, and therefore we will continue to look for new acquisition opportunities in the region. This approach has accelerated our growth, and in addition has provided us with significant technological and fiscal assets.

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