Executive Resume of the Information and Communication Technologies Business Profile (2006)

Imagen 14,61 x 10,61 INFORMA TION & COMMUNICATIONS TEC H NOLOG IE S Executive Resume Caracas, January 2007 Get the complete version at www.conapri.org Virtual Store

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COUNTRY PROFILE and the legal system

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Source: Yearbook 2005. Institute of Management Development (IMD). ,[object Object],[object Object],Advantages available to the investor

Obtain a visa Incorporate the company Register company with tax authorities Register company’s investment Register company with social security agency Register company with INCE Business Visitor’s Visa Investor Visitor’s Visa Decide on type of company Name the company Pay in minimum required capital File with Mercantile Registry Publish incorporation papers Banking Oil and gas Insurance Mining Other sectors Draw up articles of incorporation and bylaws General Legal Framework

Besides the figures given earlier, there are other factors that will give us an overview of the sector: Telecommunications Infrastructure Manpower Legal Framework Synergies between main players Venezuela has one of the best telecommunications networks in Latin America. Joint Cooperation Programs among the different sectors Existence of government programs favoring the development and use of ICTs There are good universities, institutes of technology, and other research centers in Venezuela. Article 110 of the Venezuelan Constitution Decree 825, decree on Data Messages and Electronic Signatures with the rank of a law Laws: Telecommunications, Science & Technology

World ICT Products Market (millions of euros) ,[object Object],[object Object],[object Object],[object Object],Source: Prepared in-house by N-economía from EITO 2006. Note: 2005 figures are estimates and 2007 figures forecasts. Products market 3.9 6.6 1 3.9 3.1 Total 6.7 12.5 5.1 6.7 5.8 Software 3.9 8.6 1 2.4 1.9 Telecommunications Services 6.1 11.9 5 5.6 5.2 IT Services 1.7 2.6 -1.8 2.3 2.4 Equipping with ICT Variation 2007 / 2005 (%) 2,103,059 519,199 293,374 589,330 701,156 Total 218,572 21,434 24,214 93,622 79,302 Software 917,622 297,420 117,544 200,167 302,491 Telecommunications Services 421,296 52,461 53,768 169,314 145,753 IT Services 551,568 153,884 97,847 126,227 173,610 Equipping with ICT 2007 1,949,453 457,252 287,335 545,410 659,456 Total 191,966 16,949 21,930 82,208 70,879 Software 849,502 252,264 115,201 190,752 291,285 Telecommunications Services 374,197 41,920 48,753 151,745 131,779 IT Services 533,789 146,119 101,451 120,705 165,514 Equipping with ICT 2005 World Total Rest of the World Japan USA Europe

Breakdown of IT Investments by country (%) ,[object Object],[object Object],Source: IDC de Venezuela / RoR: Rest of Latin America Indicators (Latin America) 2005 2006

Source: IDC de Venezuela Breakdown of Investments in IT (%) US$ 1.0 9 billion, 2005 ,[object Object],[object Object],[object Object],Indicators (Venezuela)

Source: IDC de Venezuela Venezuela: Investments in Telecommunications (%) 2005 ( US$ 3.61 billion ) ,[object Object],Indicators: Telecommunications

Source: Central Bank of Venezuela , Quarterly GDP by class of economic activity at constant 1997 prices . Indicators: Telecommunications Venezuela

Source: Conatel. *Preliminary figures ,[object Object],[object Object],Estimates as at close of I Q 2006 Indicators: Telecommunications Venezuela 28.8% 506 1,757 2,263 Telecommunications Centers 9.53% 13.23% Penetration per 100 inhabitants 41.4% 1,038,609 2,510,808 3,549,417 Internet Users 38.3% 188,125 491,819 679,944 Internet Service Subscribers 33.34% 50.87% Penetration per 100 inhabitants 55.5% 4,873,623 8,778,529 13,652,152 Mobile Telephony Subscribers 13.02% 13.8% Penetration per 100 inhabitants 8% 275,139 3,427,135 3,702,274 Local Fixed Telephony Subscribers Relative Change Absolute Change I Q 2005* I Q 2006* Indicators

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Executive Resume of the Information and Communication Technologies Business Profile (2006)

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