The Growth in Broadband Adoption in the Home

VoIP communications are carried as data packets and require a broadband Internet connection that has sufficient bandwidth to deliver the data uninterrupted. As a result, broadband penetration has been a key driver of VoIP's expansion to date. As the Internet has become a bigger part of people's lives and advanced applications have come to require greater bandwidth, broadband use has become more widespread. We estimate that the number of U.S. households using broadband Internet access will grow from 30 million, or 28% of total U.S. households, at the end of 2004 to 69 million, or 61% of total U.S. households, by the end of 2009. Currently, residential broadband consumers access the Internet principally through cable modems and digital subscriber lines, or DSL, which we estimate accounted for approximately 58% and 39% of 2004 consumer broadband subscribers in the United States, respectively. However, an increasing array of alternative broadband access technologies, such as wireless broadband and broadband over power lines, is becoming available. The availability of these alternatives is expected to further encourage future broadband deployment and penetration both in the United States and worldwide.

Independent industry analysts expect the worldwide broadband market to experience similar trends to those experienced in the United States. For example, we believe that the worldwide broadband market will grow from 146 million subscribers at the end of 2004 to 317 million by the end of 2009. These reports cite Europe and Asia in particular as areas that have attractive growth prospects. We estimate that European broadband subscriptions, which were 40 million at the end of 2004, will grow to 92 million by the end of 2009. We also estimate broadband subscriptions in the Asia/Pacific region, which were 61 million at the end of 2004, will grow to 116 million by the end of 2009.

We believe the rapid deployment of broadband access in the United States and abroad will continue to enable the accelerated adoption of VoIP communications.

Internet Connectivity
In addition to the calling plans, InterLink also offers wireless internet connectivity in Venezuela through our own wireless infrastructure. This service is provided to large enterprise customers, small businesses and residential customers and offers superior connectivity than the traditional incumbent providers.

Satellite Connectivity
We also offer voice, data, and Internet connectivity through our satellite hub in Miami. Through this hub (and with appropriate equipment on the remote side) InterLink can offer satellite connectivity to almost anywhere in the world.

The 9.3 meter dish satellite services half the United States, Europe, all Africa, and all Latin America, and Caribbean. We can service 500 clients (depending on site customer equipment, a customer can have as many as 30 E1/T1 connections). It has its own outdoors containment hub and power backup.

Data Transmission Services
We offer our customers a broad range of end-to-end network service combinations for their point to-point and point-to-multipoint telecommunications needs, ranging from simple connections to customized private network solutions. We offer our network services over our proprietary and leased networks, which are comprised of microwave wireless networks, leased lines, and satellite links.