September 25, 2003 - TeleCayman Limited TeleBermuda International Limited President and CEO, James Fitzgerald is pleased to announce the formation of TeleCayman Limited, which has been granted a telecommunications license to operate in the Cayman Islands. TeleCayman will operate in a similar manner to that of TBI, although both companies will function as separate entities. TeleCayman will employ qualified Caymanians, wherever possible, which is also in sync with TBI and our commitment to the utilization of qualified Bermudians. TeleCayman Limited will implement services over the next several months and aims to become the leading telecommunications service provider in the Cayman Islands. The Bermuda model of ‘managed competition’ in telecommunications so wisely developed and encouraged by the Ministry of Telecommunications and E-commerce works extremely well in Bermuda and will, in our estimation, work equally as well elsewhere. There has in fact been a dramatic drop in rates, in locations historically dominated by monopolies, such as in Bermuda (pre 1997). What’s more, services and products have evolved quicker and customers have a consequential choice, which impels ‘competition to bring out the best in all of us’. Cayman Long Distance Rates to Fall Dramatically TeleCayman Limited has been awarded a license to provide a wide range of telecommunications services within the Cayman Islands by the Information and Communications Technology Authority (ICTA). After meeting with ICTA officials last week, TeleCayman Limited will implement numerous telecommunications services including international long distance services on both a facilities-based and resale basis, high-speed Internet, fixed-rate local exchange services and international private line and data network services. TeleCayman Limited had not sought a mobile wireless license. TeleCayman’s strategic entry into the Cayman Island’s marketplace will ‘drive down’ International long distance rates, significantly. The licensing of a new facilities-based carrier ensures that the company’s short-term objectives can be met during the next year. Mr. Fitzgerald, who is also Chairman of TeleCayman Limited, says, “By year end, Caymanians should start to experience the benefits of a liberalized telecommunications environment”. Fitzgerald continues, “Prior to the advent of competition six years ago in Bermuda, Cable & Wireless charged US$1.15 per minute, for calls to the USA. As a result of TeleBermuda’s entry into the marketplace, the price of long distance calling has declined to US$0.17 per minute for calls to Canada, the UK and the USA.” Fitzgerald indicated that TeleCayman’s initial long distance rates would be materially lower than present pricing, but could not be specific until interconnection rates with the incumbent carrier were determined. “Unfortunately, TeleCayman Limited - by ICTA regulations - will utilize C&W’s international gateway, at least until the end of the first quarter of 2004, at which time TeleCayman Limited gains direct access to the Maya-One fibre cable. Rates at that time could very well be cut in half.” TeleCayman Limited will also maintain hot standby satellite facilities to provide redundant networks in the event of a failure of the Maya-One fibre cable. “Many financial institutions in Grand Cayman want network redundancy to prevent trading losses which can occur when mission-critical networks fail,” added Fitzgerald. “Grand Cayman offers a fabulous operating environment for the development of ecommerce and information intensive business. The combination of skilled labour, financial institutions and low-cost bandwidth on demand provided by TeleCayman Limited will have a far reaching positive impact,” noted Fitzgerald. In Bermuda, TBI is the leading telecommunications provider of switched long distance services and has significantly increased their share of data traffic. In addition to providing international long distance services, TeleCayman Limited will offer flat rate local exchange services to commercial businesses as well as residential subscribers living in condominiums and multi-unit dwellings. The new carrier will not charge local metered rates for calls between subscribers on it’s own network nor for connectivity to its international facilities. As a consequence ‘all-in’ monthly bills for local exchange customers will be substantially below the average charges levied by the incumbent. TeleCayman Limited will employ scaleable soft switch technology to provide a full range of call management services within its basic monthly local exchange rate. “TeleCayman Limited will also be able to provide high speed Internet services at dial-up rates as a result of recently-developed 3.5 megahertz fixed wireless technologies,” said Fitzgerald. “Customers will be able to ‘self-install’ these modems, which do not require an external antenna, thus allowing them to be operational within minutes.” A combination of wireless links and fibre will be utilized to provide services across Grand Cayman by year-end and on the sister islands by the end of the first quarter of 2004. TeleCayman Limited is in the final stages of negotiating space for its Network Operations Centre in central George Town and will utilize existing rooftops and towers wherever possible to reduce the impact of the network on the islands’ landscape. TeleCayman Limited will employ approximately 20-25 persons with the vast majority of the staff being recruited from within the Cayman Islands. Prior to the establishment of offices, which should be operational within a month, Fitzgerald invited potential recruits to submit applications to the company at P.O. Box 268GT, George Town, Cayman Islands. For further information contact: James Fitzgerald at (441) 296-9000.