O2 and Manx Telecom Launch Super-Fast 3G Network

Europe UK : The Isle of Man, located in the British Isles, announced that O2 successfully launched Europe's first commercial, super-fast third generation (3G) mobile data network earlier this month. The 3G network was developed by the company's subsidiary Manx Telecom on the Isle of Man through a partnership with Lucent Technologies.

The 3G network on the Isle of Man incorporates HSDPA (high-speed downlink packet access) technology and positions O2 and Manx Telecom at the forefront of providing advanced mobile data services to customers within Europe. The network will provide full island coverage where customers use mobile communications services today. Based on advanced technology from Lucent Technologies, the futuristic network builds on O2's previous successful live trials of early 3G on the Isle of Man at the end of 2001. It also complements existing work that O2 has conducted with its two principal networking partners: Nortel Networks and Nokia Corporation.

"Our leading fixed, mobile and Internet services as well as our resilient off-Island connectivity are attracting the attention of technology companies around the world," said Tim Craine, Director of E-Business for the Isle of Man Government. "At the forefront of the next generation of telecommunications technology, we are able to provide our growing business community with state-of-the-art services to ensure companies continue to thrive on the Isle of Man."

Recognized for its pro-business environment and responsive government policies, the Isle of Man has become the home to a flourishing interactive entertainment and technology industry. Many companies are establishing operations in the Isle of Man to access the UK and European Union markets. To assist in this process, the Isle of Man Government provides generous grant packages of up to 40% to help offset the cost of moving, setting up operations, and acquiring new office equipment. The 3G mobile data network is yet another benefit the Island offers, as customers of gaming companies located on the Island will now be able to download interactive multiplayer games 3 times faster than today's commercial 3G UMTS networks.

The Isle of Man is abolishing its general corporate tax rate, which is scheduled to take effect in April 2006. Government is also proposing to introduce a personal income tax liability cap at the same time. The zero corporate tax initiative is part of the government's strategy to expand the Island's technology community and enhance its reputation as a AAA rated jurisdiction. This combines world-class standards of regulation, transparency and telecom infrastructure with extremely beneficial rates of direct taxation.

In addition to progressive government policy, more than $90 million has been invested in the Island's telecommunications infrastructure over the past five years. The Isle of Man is leading Europe with innovative technology investments which include implementation of this Super Fast (HSDPA) 3G network, two self healing (SDH) fiber rings connecting the Isle of Man to both the UK and Ireland, 100 percent broadband coverage and free ADSL and ISDN connections available for businesses and individuals.

About the Isle of Man

Located off the coast of the United Kingdom and situated in the center of the British Isles, the Isle of Man is recognized worldwide for its pro-business environment. The Isle of Man Government supports companies with a team of experts who advise on international tax, legal and banking issues. The Government's political stability and vibrant business economy, as demonstrated with AAA ratings from Standard & Poor's and Moody's, make it a perfect location for North American companies looking to establish a European headquarters. The Island's colorful heritage, diverse scenic beauty, enhanced by many annual cultural events, hotels, conference and leisure facilities provides the basis for its flourishing technology, tourist and film industries. With excellent educational, health and social amenities, the Isle of Man provides a unique quality of life, which is appreciated and treasured by all its residents both old and new.

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