Urban Communications! •
Urban Communications Inc. is a cash flow positive company listed on the TSX Venture Exchange under the symbol UBN.!
•
Urban currently owns and operates a 200 km fibre optic network passing through high density, highrise corridors of Vancouver and Victoria, BC.!
•
Urban is a Canadian Radio-Television and Telecommunications Commission (CRTC) registered, non-dominant carrier!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Urban’s History! •
Urban’s 200km fibre network was built over the past 12 years and paid for by prepaid leases!
•
During construction, Urban dedicated their own strands along the path!
•
Urban was granted city duct access through these projects. The value of those accesses are approx. $300,000 per year!
•
Recent valuations put the market value of Urban’s dark fibre network at $14 - $20 million, with replacement costs over $57 million!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
The Old Urban Model! •
Urban operates dark fibre leases for government agencies and academic institutions!
•
Urban also currently services a small residential subscriber base selling only low cost Internet connectivity!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
The New Urban Opportunity! •
Urban will leverage its existing network to launch a 1,000 Mbps (1 Gig) service into homes and offices. !
•
Urban has identified 3 key verticals:! •
Residential On-Net !
•
Commercial On-Net !
•
“Over The Top” Services including TV!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Drivers for Fibre! • •
A Cisco 2013 research report found that Internet traffic doubled in the United States between 2010 and 2012.!
•
The increase was due primarily from increased video and high quality of service demanded for those applications.!
www.ubn.ca
Today, a typical consumer household connects to the Internet through 5-10 devices, some at the same time.!
Urban Communications Inc. 2014
TSX-V: UBN
Drivers for Fibre! Cutting the Cord! •
Centris found that 8% of US households reported having eliminated their pay-TV subscriptions in Q3 2013, double the percentage from their Q1 survey (4%). !
•
According to NPD Group data, the percentage of US households subscribing to premium TV channels dropped from 38% in March 2012 to 32% in August 2013, while the share of households subscribing to subscription video-on-demand services concurrently rose from 23% to 27%. !
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
A Winning Model! •
Urban’s residential model is almost identical to that of Google Fiber. !
•
The Google Fiber rollout in selected US cities has take up rates that exceeds 50% in some areas!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Residential On-Net! •
Urban will deliver Internet speeds more than 100-200 times faster than what most North Americans have access to today with 1000 Mbps (1 Gigabit) per second!
•
Instant downloads !
•
Crystal clear high definition TV !
•
Urban will offer the service at a competitive price, but with substantially greater speed and vastly improved user experience!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Residential Offerings!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
A New Kind of TV! •
Urban TV will deliver a premium viewing experience with over 90 channels of crystal clear high definition sports, news and entertainment programming !
•
Urban TV has an additional 60+ Chinese channels, Vietnamese channels and multiple television channels from Korea, Japan and the Philippines. !
•
Users can browse, shop, Skype, and access Netflix, Amazon, YouTube through Urban’s Android powered set top box!
•
Urban’s network is peered with many of the leading content providers for an unmatched viewing experience. !
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
A New Kind of TV!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Commercial On-Net! •
Urban offers end-to-end data solutions for businesses of all sizes and is able to maximize the relationship through delivery of the fibre connection.!
•
In addition to Urban’s unmatched symmetrical connection speeds, Urban has the resources and facilities in place to accommodate today's most critical high-bandwidth applications including: ! •
Digital Phone Lines, Hosted Office Applications, Cloud Services and Offsite backup, Virtual Private Networks!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Commercial On-Net!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Subscriber Growth! Per the table below, we are targeting to have 5,626 residential and 3,443 commercial customers on the network by the end of 2017.
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Proforma!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Current Cap Table!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
The Team!
John Farlinger! CEO!
Mike Schmidt! President!
Chris Convey! COO/CFO! www.ubn.ca
Les Maerov ! Chairman!
Tom Samplonius! VP of Technology!
Urban Communications Inc. 2014
TSX-V: UBN
Investment Opportunity! •
The Company is raising up to up to $2,500,000 in a non-Brokered convertible debenture!
•
The debenture will be a 30 month term, carrying a 8% annual interest rate payable semi-annually!
•
The debt is convertible at $0.10 per common share and features a warrant convertible at $0.20 !
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Use of Proceeds! •
To aggressively launch residential Internet and Television to 20+ buildings in SFU and Lougheed area, to develop proof of concept!
•
Funds allocated for customer equipment and inside wiring of “on-net” buildings!
•
To build out Urban’s core network to 10 Gig+ capacity and increase redundancy!
•
General Corporate purposes and working capital!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
Future Planning!
•
Additional financing will be done in mid 2015 to continue residential growth and launch commercial services and an “Over-the-Top” television product!
www.ubn.ca
Urban Communications Inc. 2014
TSX-V: UBN
