In the beginning … water covered the Earth. Out of the water emerged an island, a single giant mass of land; an ancient supercontinent called Pangaea. Over billions of years, tectonic forces broke Pangaea apart, dividing the supercontinent into ever distant land masses: Africa, Eurasia, Australasia, North and South America. As the land masses drifted farther apart, so too did the people who inhabited them. Huge bodies of water, time and space, separated people from their friends, family, loved ones and partners in trade. Until now… Igæa: (eye-jee-uh) n: “i” mod. (interconnected; internet; idea); “Gaea” Grk. (earth; land). 1) The new supercontinent; a virtual place created through light speed communications; 2) Interconnected Earth; everywhere at once, omnipresent; 3) A global Internet Protocol (IP) communications network carrying streaming digital voice, video and data, transcending physical barriers, to bring all the people of the world togeth- er in one virtual place at any time. Important Information Confidential This corporate plan and all of its contents were produced internally by Igæa. For more information contact: Kirk Rittenhouse Manz, CEO Igæa 119 Windsor Drive Nashville, Tennessee 37205 E-mail [email protected] Telephone 615/353-9737 Facsimile 615/353-9521 www.igaea.com 2nd Quarter 2000 This business plan is provided for purposes of information and evaluation only. It does not constitute an offer to sell, or a solicitation of securities, offers to buy or any other interest in the business. Any such offering will be made only by appropriate documents and in accordance with applicable State and Federal laws. The information contained in this document is absolutely confidential and is intend- ed only for persons to whom it is transmitted by the Company and to their imme- diate business associates with whom they are required to confer in order to prop- erly evaluate this business opportunity. By reading this document you agree not to disclose the information contained herein regarding the Company, its owners, employees, prospective employees, independent contractors, consultants, agents, customers and prospective customers, marketing methods, products, services, strate- gies, target markets, business plans, financial projections or any other information regarded as trade secrets, confidential or proprietary to any other party not specifi- cally outlined above without the express written consent of the Company. Any reproduction of this document, in whole or in part, or the divulgence of any of its contents in any form to unauthorized parties without the prior written consent of the Company is expressly prohibited. The Company believes the information set forth herein to be reliable. It must be recognized, however, that predictions and forecasts regarding the Company’s future performance are necessarily subject to a high degree of uncertainty. Therefore, no warranty of such forecasts is express or implied. If you desire additional information regarding Igæa, please contact the Company. page iv CONFIDENTIAL Table of Contents I. Executive Summary . 1 II. Management . .11 III. Financial Information Summary . .15 IV. Comprehensive Strategic Marketing Plan . .19 V. Network Deployment and Operations . .37 VI. Competition . .47 VII. Risk Factors . .51 page v CONFIDENTIAL Executive Summary Introduction 1st International Telecom, Inc., dba Igæa will become a worldwide Igæa will deliver Voice Igæa, a Delaware corporation was leader in offering carrier-grade, formed in 1998 and incorporated in phone-to-phone VoIP international over Internet Protocol September 1999, to capitalize on calling and bundled communica- emerging market opportunities in the tions services in selected markets (VoIP) international long VoIP internet telephony industry and to in the Americas, Europe, Australia, provide unified communications serv- Asia, Africa and the Middle East. distance calling, as well ices to a global business and consumer marketplace. Igæa’s current funding consists of $60 as enhanced voice, data million in vendor financing provided Igæa has partnered with Cisco by Cisco and $2 million in early stage and video communica- Systems, Inc., one of the most valu- equity. This, combined with an antici- able companies in the world. pated $30 million plus in additional tions services to a global Cisco, the leading maker of internet equity will enable the rapid deploy- traffic equipment, has provided ment of the Company’s global VoIP residential and commer- Igæa with a commitment of $60 voice and data network. Upon comple- million in vendor financing to facil- tion of its second round equity fund- cial customer base, utiliz- itate the systematic deployment of ing, Igæa will emerge as one of the Igæa’s global voice and data net- best-funded startups in the IP telepho- ing proven tactical and work. ny industry. strategic sales initiatives Igæa’s core executive management In the next two years, Igæa will team consists of highly experienced deploy over one hundred Cisco IP and established wholesale telecom sales, marketing and technolo- gateways domestically and abroad gy professionals who have developed to enable access and egress for and retail sales channels. and managed over $300 million in internet protocol telephone calls, global voice revenue for top ten carri- data networking and video distribu- ers. tion. Igæa will deliver Voice over Internet The Company will provide high-quali- Protocol (VoIP) international long dis- ty connectivity into both established tance calling, as well as enhanced and emerging economies and will voice, data and video communications exchange IP traffic with carriers, inter- services to a global residential and net service providers (ISPs) and inter- commercial customer base, using net telephony services providers proven tactical and strategic sales ini- (ITSPs) worldwide to enable carrier tiatives and established wholesale and grade origination and termination. retail sales channels. page 1 CONFIDENTIAL Executive Summary Market Opportunity: Voice over Internet Protocol (VoIP) Igæa will deliver its bundled services to According to the Gartner Group, a leading According to Killen & consumers and businesses through market research firm, the global telecom- both wholesale and retail channels and munications market is expected to grow Associates, as much as 33 will develop a comprehensive web to approximately $1.9 trillion by 2003. presence designed to serve the needs percent of all voice traffic of all international callers. Voice over Internet Protocol (VoIP) is the future of voice communication and will will be IP-based by 2005. Cisco recently granted Igæa its cov- soon replace the traditional circuit eted Cisco Powered Network status, switched long distance telephone tech- placing Igæa in the top 1% of serv- nology used throughout the world today. ice providers worldwide. According to Killen & Associates, as much as 33 percent of all voice traffic will be IP- The Company’s proposed global IP based by 2005. telephony clearinghouse will seamless- ly integrate IP calls with traditional VoIP technology allows for the conversion Upon completion of its voice network calls to provide Igæa of voice to data by a process of slicing customers with comprehensive global analog voice signals into digital “packets” second round equity access from any phone (wired or wire- that can be transmitted over a data net- less) to any other phone in the world. work, such as the internet, at a fraction of funding, Igæa will emerge the cost of a traditional circuit switched Igæa’s veteran management team will call. as one of the best-funded deliver a unique combination of tech- nical understanding, extensive opera- Total IP voice minutes will rise from startups in the IP tional experience, valuable industry less than 300 million minutes in 1998 contacts and a demonstrated ability to to almost 140 billion minutes in 2004 telephony industry. successfully and rapidly generate a (source: IDC). profitable mix of retail and wholesale Worldwide Retail & Wholesale revenues. IP Telephony Minutes 1998 - 2004 MOUs [Billion]* By combining its core competencies of 140 deploying next-generation technology 120 with extensive expertise in internation- 100 al communications and ethnic market- 80 ing, Igæa will create a sustainable com- 60 40 petitive advantage and significant value 20 for its shareholders. 0 1998 1999 2000 2001 2002 2003 2004 Retail Consumer Retail Business Wholesale *Minutes Of Usage page 2 CONFIDENTIAL Executive Summary The pricing advantage for data trans- IP continues to emerge as the domi- Igæa projects $500 mil- mission, including VoIP long distance nant technology in all its architectural calling, is particularly attractive for long variations. Mainstream telecom ven- lion in annual revenues haul transmissions terminated interna- dors are repositioning themselves to tionally. support voice and data integration within five years. through major acquisitions and Worldwide U.S. LD and International alliances as evidenced by Nortel’s IP Telephony Revenues, 1998 Ð 2004 merger with Bay Networks, Lucent’s Revenues [$ Billion] acquisition of Ascend and Excel, and 20 18 Cisco’s purchase of Summa Four. 16 14 12 In the past twenty-four months, major 10 8 internet telephony service providers 6 4 (ITSPs) with large global infrastruc- Igæa will provide 2 tures, such as IDT/Net2Phone and 0 1998 1999 2000 2001 2002 2003 2004 iBasis, have emerged. Some, especially wholesale services to International US Long Distance in the U.S., are moving beyond