Partnerské setkání 13.6. 2002, Horní Bezděkov

Forecast EBITDA Margins Chasing the gap Euros/Month ARPU Forecast EBITDA Margins 40% 38% 36% 34% 32% EBITDA % 30% Expectation gap 28% 26% 24% 22% 20% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: PwC Banc of America Securities Forecast Possible Worse Case Scenario The revenue gap for operators to close could be significant – this has been driven by some wrong assumptions

Changing the business model Old assumptions Mobile is a broadband service? Mobile services is for the mass market? Mobile can capture a significant share of the value chain? New business drivers Focus on improving efficiency ‘here and now’ Chase incremental revenues Build up capability to provide enriched data services

Eurotel focus - 24 months 1. „Traditional“ - Voice & Messaging 3.Technology Enablers 1. „Traditional“ - Voice & Messaging Billing CRM APPS Platform Retention, ARPU maintenance Quality and Operational Optimization Cost Control 2. “Incremental” Finance services Banking > Transactions Image Sevices Simple picture messaging > camera > mms Corporate Services Corp. - e-mail > intranet > UM 4. Commercial enablers Media > Cell Broadcast, sms > LBS Apps > Content UMTS Solutions > Horizontal > Vertical

Implications for the next 24 months Maintain position as the leading provider of mobile services Continued investment in quality (I.e network and customer care) Greater focus on marketing to smaller segments Begin to sell ‘solutions’ in greater quantity Support upgrade strategy of clients Cost efficiencies 2002 2003 Push data centres within shops Invest in content Support the delivery of content through an application platform Encourage the market to adopt more sophisticated handsets

Supplier push has driven the market up to now Offers Barriers Consumer Segments Children Teenagers Hyperconnected Professionals Students Retirees Content / device push Security / privacy Price and Investment levels Undeveloped needs Complexity Consumer pull

Creating the right market Push into the data area will be primarily driven by customers having the right handsets – we looking at how we should support this through: - securing deals with the manufacturers - assisting customers purchase handsets - delivering fully configured handsets at the POS - ensuring the value added services are easily accessed through the handset - network is aligned with handset capability - working with content partners to get a high quality stream of content to the end customer

Content is critical We cannot expect to repeat the Japan experience due to market differences We need to work with our content partners to ensure we understand customer requirements – and Eurotel support the quick delivery of content 1. CRM: Understand customer behaviour and requirements 2. Application platform: Support content partner deliver their services quickly, with the flexibility they require 3. Billing: Develop our billing capability to support the enhanced range of services that will be provided 4. Business model Develop different business models to work with our partner that reflect the value both parties bring to the end customer.

Content / Transaction Partners Outsourced Activities Changing business relationships Core Business Enterprise Solutions Consumer Services Network Product and Service management B2B Partners Content / Transaction Partners Outsourced Activities Value Added Layer

UMTS Strategy In market terms, UMTS will be positioned as an evolutionary data service alongside GPRS, HSCSD Adopt a prudent rollout strategy which matches investment to market demand Initial launch services will be targeted at high value segments - particularly business, top consumers Ensure full compatibility between legacy technologies (I.e handover) Utilise experience of existing and imminent data services to educate and seed the market Monitor and evaluate the progress of deployment in Western Europe, Japan to benefit from learning experiences

UMTS strategy starts now… Utilise experience of existing and imminent data services to educate and seed the market: - working with content ‘partners’ - communication of market needs - supporting service push - developing new business models/ partnerships Don’t over-hype the market…..keep it simple and make it work!

There is cause for optimism Sonera ARPU and MoU Euro/ Month Minutes/ Month 45 160 43 140 41 120 39 100 37 35 80 33 60 31 40 29 20 27 25 Q1 98 Q2 98 Q3 98 Q4 98 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01

Penetrace SIM karet a mobilních uživatelů

Eurotel GSM pokrytí (30.4.2002) (CTU Threshold - 92dBm) Actuals Population Coverage : 96,1 % E-roads Coverage : 99,8 % E50+55 Coverage : 100,0 % Geographic Coverage : 88,1 % Population Coverage CIS : 99,2 % Key Network Elements status by 30/04/2002: 3 240 Cell-sites 8 209 BTSs (sectors) 15 699 TRXs 76 BSCs 20 MSCs Zari 2001 2933 Cell sites 7196 BTSs 13931 TRXs 74 BSCs 18 MSCs CBR : 1,2 % (drive test) CDR : 1,0 % (drive test) Hand-held, 2 W output power

EBITDA v roce 2001 29 operators Eurotel #8 Source:SchroderSalomonSmithBarney, Company data

CONTENT SLUŽBY 2001 - Celkový obrat GSM operátorů hlasové příjmy - 80-90% obratu datové příjmy - 10-20% obratu 95% - SMS P2P, Data 5% - VAS (Content služby) 2006 - Celkový obrat GSM operátorů hlasové příjmy - 60-70% obratu datové příjmy - 30-40% obratu 50% - SMS, MMS, email P2P, Data 20 % - Informace a Zábava 17% - Inzerce 7% - Transakce 6% - Korporátní služby

Co je Juice? Juice - interaktivní zábava a informační služby - značka a mobilní portál společnosti Eurotel 1. Juice WAP - technologieWAP/CSD nebo GPRS 2. Juice Easy - technologie USSD a Infotext 3. Juice SIM - technologie SIM Toolkit + www.mobiljuice.cz

Přehled vývoje – možnosti pro nové aplikace 2005 Video streaming 2003 Videoklipy 2002 obrázky 1999 Text / WAP 1997 Text / SMS Interaktivita Filmy Hudba Ukázky filmů Video zprávy Obrázky Fotky Barevný WAP Java applets MMS T9 textové zprávy černobílý WAP Text

End-To-End Service Development Process Technology Research and Business Dev. End-to-End Service Planning Handset Procurement Service Network Design & Specs Content Programs Handset Specifications Gateways Vendor Selection Content Aggregation SDK + Promotion Handset Development &Tests Implementation and Integration Launch Content End-To-End Testing Launch

Required Capabilities and Enablers to support change of focus Service Brand Service in handset Per Service Applications Communities Quality of Service Services Communication Billing Capabilities Application Development Customer analysis & service Handsets testing & OEM IT & SDI O&M Excellence Required Capabilities Enabling Projects Customer Focus Service Focus ARPU focus Create demand Camera handsets Content Billing Apps Platform CRM, SFA Enterprise Architecture

Aplikační platforma Multi-Access Portal Interface (API) Standard Customers USSD SMS WAP Voice Multi-Access Portal AS Interface (API) Standard Enabler Enabler Billing ISP ISP – Independent Service Provider ICP – Independent Content Provider AS – Advertising Sponsor Partners Provision Enabler Enabler SMSC ICP

Nové multimediální telefony Siemens Cruiser Nokia 7650 Samsung T100 Sharp Panasonic GD67 Panasonic GD87 Ericsson A800

Kategorie služeb

Juice Easy/Infotext - TOP aplikace

Juice WAP - TOP aplikace

Content služby na mobilu se využívají ve volném čase

Interest in new services ET core users were interested in up-to-date traffic info and covering regular payments by MT, while Go users stressed infotainment (ringtones/logos, multimedia news, games etc.) more. Find Mobile shopping Fun News Fun Fun Music News Games

HOW TO THINK TODAY? Total usage vs. evaluation of usefulness calls via operator booking accommodation hotel/restaurants (addresses) last-minute presents purchase/booking tickets booking holidays music in MP3 format purchasing/sending flowers lonely hearts music charts purchase of books/CDs group SMS cultural guide political news chat logos/ringtones playing/downloading games downloading/sending pictures music news LOW USEFULNESS (below-average evaluation of usefulness) search for health care navigation/traffic jams travel info (surroundings) search for petrol station taxi booking email info about phone numbers banking services train/bus timetables businesses (addresses) sports results sports statistics/tables listening to radio (?) economic news HIGH USEFULNESS (above-average evaluation of usefulness) LOW TOTAL USAGE (Below-average usage index) HIGH TOTAL USAGE (Above-average usage index) KEY SERVICES SERVICES NEEDED IN EMERGENCY QUESTION MARKS VOLUME DRIVERS

Content services - Eurotel KEY FINDINGS 1. Content services are mostly used in leisure time 2. Fun services constantly generate revenue Jokes, Dating, Chats - auto-generated by users 3. Games has enormous potential BUT have to be taken care and supported by prizes 4. Useful services like news and find services are not so price sensitive in opposite to entertainment 5. Use the synergic efect with strong media 6. There is a great potential in adult services the most profitable on internet 7. Don´t create generic content for mass market BUT tailored content for mass numbers of communities

NEJ z Juice služeb 1. Nejrozsáhlejší nabídka přístupu k službám s přidanou hodnotou - Juice Easy, Juice WAP, Eurotel SIM karta s Juice 2. Jediný „mobilní“ hudební server v ČR - Hitparáda 3. První informační LBS služby v ČR - Mobilní průvodce 4. Nejúspěšnější mobilní herní služby v ČR - SMS/WAP - Chcete být Milionářem - WAP - Lovci pokladů - 180 tis. hitů za den - SMS/Juice Easy - xGen Go 5. Rezervace přes mobilní telefon - MFF Karlovy Vary - 10 % vstupenek reservováno přes WAP - 100% úspěšnost 6. Speciální balíčky služeb k významným událostem Olympijské hry v Salt Lake City - informační služby - SMS, WAP, hlasové zprávy, vyzváněcí melodie

CONTENT SLUŽBY - další rozvoj v 2002 1. Zaměření na nejprofitabilnější oblasti 2. Differenciace se službami s vysokou přidanou hodnotou 3. Příprava zákazníků a partnerů na nové možnosti Seznamky and chaty Melodie a loga Spolupráce s médii Hry Erotické služby Mobilní průvodce a LBS služby Hudba „Event“ balíky služeb MMS, Mobilní platby Java hry

CONTENT SLUŽBY - další rozvoj v 2002 MMS - Multimedia messaging P2P picture messaging MMS služby na WEBu - MMS composer, Fotoalbum MMS content třetích stran

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