2002 China America Network Symposium August 22, 2002

1. A Brave New World Trends and Opportunities in Global Telecommunications 2002 China America Network SymposiumAugust 22, 2002 Dan O’Connor Vice President, Sprint International

2. Overview • Global market overview • Economic challenges • Customer perspective • Asian market trends • Advancing technology • Sprint vision for Asian region

3. Global Telecom Expansion Encouraging Investment and Growth Telecom Revenue Global Growth of Web Global Growth of Web

4. Connections and Traffic are Increasing Europe Europe Asia/Pacific Asia/Pacific North America North America

5. Economic Challenges Force Change in Business Focus • Worldwide economic uncertainty • Financial performance pressure • Continued globalization

6. Real World Customer Challenges • Reliability • Security • Customer support • Cost control • Managing multiple service networks • Network reach • In-country coverage • Financial stability

7. Growth in Telecom Spending: Asian Region $31.3 Billion $26.2 Billion $21.5 Billion $17.3 Billion $13.8 Billion $11.0 Billion Source: IDC, Yankee Group, Probe Research, OVUM, Vertical System Group ($Billion) Business Data, IP VPN, Internet Access, and Hosting Market in Asia Pacific Region

8. China’s Data Revenue and Market Share Grows • Source: IDC, Yankee Group, Probe Research, OVUM, Vertical System Group 2001 2006 China: 17.5% China: 12.9% Asia Pacific: $31.3 Billion Asia Pacific: $11 Billion Market Share in Asia Pacific business data and IP services to increase from 12.9% in 2001 to 17.5% in 2006 with much higher CAGR of 31.1%. Source: Statistics released by the Minister of Information Industry (MII) in China.

9. Trends in Asia • Greater China fastest growing sub-region in Asia Pacific • Japan and Korea are burgeoning markets • Similar customer requirements • Leverage existing investments (Frame, ATM, Private Line) and migrate to IP slowly • Need for managed services, focus on core competency • Bandwidth, bandwidth, bandwidth

10. Interregional Bandwidth Growth Interregional Bandwidth

11. Kite-Ibaraki Aligura Maruyama Bandon Chikura Nedonna Beach Shima Pt. Arena San Luis Obispo Los Osos Tseung Kwan Lantau Island Kahe Point Spencer Beach Penang Suva Brookvale Alexandria Auckland Sprint Asian Backbone Seattle China-US Tacoma Beijing Stockton Tokyo Japan - US Seoul San Jose Japan - US Shanghai Anaheim Guangzhou FNAL Taipei Hong Kong Hawaii Singapore Southern Cross C2C STM16 (OC-48) STM4 (OC-12) STM1 (OC-3) Protected Sydney Internet Transport Node Landing Station

12. Frame Relay Sprint Frame Relay Frame Relay Frame RelayVPN IPVPN Ethernet Ethernet SprintLink IP Network Private Line Private Line Advancing TechnologyMulti-service Platform: L2TPv3 Preview • Provides multi-service connectivity enabling a smooth migration from legacy technologies to IP.

13. D1 D1 D2 D2 D1 Router Router D3 D1 D3 Router Router Sender D2 D2 D3 Router Router D3 Internet Receivers Advancing TechnologyMulticasting D D D Sender D D D Internet Receivers • Multicast • - Delivers one-to many • communications across • an IP infrastructure • Supports conferencing, • e-learning, training, and other • applications Unicast

14. Advancing TechnologyIPv6 • Focuses on key addressing concerns • Number of available IP addresses • Routing table limitations • Operational challenges still remain • Multi-homing is extremely difficult

15. 1989 1991 1992 1993 1994 1995 1997 2000 2001 Sprint in China Solid History, Strong Future 1989: Entered China Market 1997 Tianjing Project Sprint/China Unicom 1991: Signed Jiangsu Provincial Packet Switching Network Contract 2000: Established offices in Beijing and Hong Kong 1992:Beijing Representative Office Opened 1993: CAAC network expansion 2001: LaunchedIP Node in Hong Kong 1994 :Established Internet gateways in Shanghai and Beijing 1995 : Opened Shanghai and Guangzhou Offices

16. Technology and International Leadership • Completed first international SONET survivable ring • Partnered with Cisco to develop and implement first gigabit router network using Cisco 12016’s for higher performance • Operated 2nd Largest IP backbone in the world (by ISP connections) • First to offer IP security performance guarantees • First Internet provider to offer managed Internet VPN service • First Internet provider to offer native multicasting • First to announce Interworking SLAs for Frame Relay and ATM • Lit first Europe-wide STM-64 (10 Gbps) IP network • Announced industry leading Packet Loss SLA • Implemented first IPL and FR circuits over L2TPv3 • Built & launched world’s first Public Data Network • Installed first off-shore data network for a PTT • Began building world’s first transcontinental all-digital fiber-optic network • First to implement international VPN services • First carrier offering commercial Internet access • First direct dial service from all nations of former Soviet Union • First to provide government-sponsored non-university internet access and services system to enterprise customers in China • Implemented world’s first international broadband Internet connection 1996 1975 1997 1980 1984 1998 1990 1999 1992 2000 1994 2001 1995 2002 Decades of experience combined with a list of industry firsts!

17. What’s Next in the Brave New World • Global telecom industry will rationalize and stabilize • Technology changes will “prove in” for customers and carriers • Globalization will drive new opportunities for China and Sprint

18. Questions?