Friday, December 17th 2004

2005 is nearly here and what a year 2004 has been for our industry. We have had an exciting year at Slingshot with the introduction of many new products which has resulted in continued growth of our customer base. We remain focused on our commitment to you and we will provide leading edge products and services at the best prices in NZ.

At long last Telecom’s strangle hold on broadband internet is starting to loosen with the introduction of UBS (Unbundled Bitstream Services). For the first time we have been able to develop a range of broadband services that give customer’s choice and add value to their internet experience. We are already focused on the development new services in this area and we will be introducing faster 1Mb and 2Mb broadband services next year.

Our team at Slingshot has grown and we are moving into a new building in the New Year – this will allow for staff growth and the exciting new areas of technology we are moving into. We recently announced the launch of a new service that is another NZ first – using VoIP technology (Voice over Internet Protocol) Slingshot broadband customers can call each other for free anywhere in NZ and Australia – this is exciting for us and the NZ market.

We have had a dream of releasing this service for many years. We have customers in Australia successfully using this technology today and this is a big breakthrough for NZ – high quality toll calls over broadband internet are now a reality! We will not stop here as our goal is to aggressively lead the market down new roads in spite of the road blocks that are continually put in our way.

Slingshot has always made a commitment to making a difference and standing up for competition. We will always play our part in driving NZ to be a real player in the global environment of technology and this sometimes means we will have to put our heads on the block, which is something we are prepared to do.

The environment in NZ telecommunications continues to be a challenge as we live in a world dominated and controlled by one player. Unfortunately this control can have flow on affects for our customers and at times we are helpless. Recent frustrations include the slow and laborious implementation of UBS broadband services, and the deliberate slow down of the service. We work hard to minimise any customer impacts but this will continue until we have a Commissioner and Government who actually listen to the people.

We have recently launched services in Australia and the difference in the environment is astounding as customers have over 40 broadband providers to choose from - here in New Zealand the market is still controlled by one, Telecom New Zealand - we need competition to reduce prices and develop more services along with leading edge technologies.

On a positive note, we have made excellent progress in many areas which has resulted in cheaper broadband internet, second home line offerings, free calling between Slingshot customers and much more. We look forward to your continued support in 2005 as we go on to forge new roads in NZ for you, our customers.

I value your feedback so please email us with your ideas and suggestions.

Merry Christmas and may you all have a prosperous 2005.

Annette Presley