A quick overview of the mVNO market worlwide and recent trends in the US.

1. Business Innovation Session: Developing new mVNO businesses Miguel Ángel Suárez mVNO Networking Congress November 2010

3. 50% Market Share

4. BASE is the 3rd operator in Belgium

5. 15% Market Share

6. e-plus is the 3rd operator, faster growing in a penetrated market

7. 13% Market Share

8. The multibrand strategy allows KPN to address more efficiently targeted market sgments with a brand and offer tailored to their needs

9. This strategy implies the launch of own brands and/or the partnership with third party brands, reckoned in their markets, through “branded reseller” or “joint venture” partnerships

10. A relevant number of these brands has been finally acquired by KPN, demonstrating the validity of the multi-brand caseMulti Brand mVNOs Partner Brands Strategy Own Brands Own MNOs Either as incumbent or as challenger, KPN has bet on the wholesale market to consolidate or develop its market position… AN EXAMPLE OF A “BELIEVER” MNO 2

12. Only mVNO proposals

13. Resources shared, lean organizations and outsourced operations

14. Multi-country approach using a common platform:

15. Central: network, IT systems

16. Local: Mkt, Sales, Logs, CuCa

17. Multi-brand diversification:

18. Top target segments: no-frills, ethnic, distribution

19. Own brands & champion partner brands3

20. …with quite positive results already one year after launch. AN EXAMPLE OF A “BELIEVER” MNO Total active subscribers in Spain of KPN/e-plus brands (000) 2007 2008 2009 4

21. Agenda The “mVNOmovement” aroundtheglobe AnmVNO Case Study: the US Business InnovationWorkshop

22. Across the world, the “mVNO-meter” is high: the “mVNO-movement” is growing and demonstrating it is here to stay. THE MVNO MOVEMENT AROUND THE GLOBE Europe ~74% mVNOs Established environment: fluid mVNO dynamics North Am. ~12%mVNOs 2nd wave US, driven by nofrills/retail Asia ~5% mVNOs Cons. in several countries. New success stories Middle East ~<1% mVNOs First mVNOs up & running in Oman & Jordan LatAm. ~<1% mVNOs First mVNOs in Col, Arg, CR. Brazil to come in 2011 Africa Presence in South Africa & ongoing discussions in several cos. Australia ~7% mVNOs Consolidated in Australia & New Zealand

23. Most of the international groups have already developed mVNO propositions in their home & key markets. ORIENTATIVE!! THE MVNO MOVEMENT AROUND THE GLOBE Source: Total Telecom mVNO database

24. Agenda The “mVNOmovement” aroundtheglobe AnmVNO Case Study: the US mVNOmarkettoday Business InnovationWorkshop

25. The US has gone through all the mVNO phases but, at the end of the day, it has consolidated a strong mVNO business AN MVNO CASE STUDY: US We all know about failed mVNO ventures such as Helio, Amp´d Mobile, ESPN or Disney Mobile…. but what is the situation right now? * * 23.986 22.383 21.440 19.907 *Virgin & Boost not included. Source: companies financial statements & own elaboration 7%-13% of mVNO customers** in wholesale (~20% Sprint w/Virgin & Boost), 10-25% of Gross Adds ** 24 Mio Subs in mVNOs: 9,2% of total market** 20,49% growth in mVNO Net Adds vs. 1,24% in own brands** **Excluding connected devices

26. This growth is distributed among a number of different mVNOs, addressing different segments… AN MVNO CASE STUDY: US Not exhaustive Source: own analysis

28. And furthermore, itsbusiness has hadsignificantacceleration in thelastyear

29. Around 50-70% of those new clientscould come fromStraightTalk, brandlaunchedtogetherwithWalmart…

30. … so Walmartcouldhavemade ~1,7-2,4 Miosubscribers in 1 year…

31. … and with ARPU of 30USD, itsyearlyrevenuecouldbe ~620-870 MUSD. ARPU (USD) 37,6% Quarterlyrevenues (MUSD) 73,6%

32. …thankstoanincrediblesuccess of WalmartStraightTalklaunch, thatiscurrentlybeingexpandedinto new markets AN MVNO CASE STUDY: US July/august 2010 ¿? September2010 October2009 October2010 Agreement w/ ATT&T-Mobile Potentialevolution LaunchWalmartFamily Launch Introduct. of smartphones Wider portfolio of devices at signficantlowercost Bettergrossmargins More smartphones and high-enddevices? Data mVNOlikeBestBuy? Expansion of operationsacrossLatAm? New segmentaddressed: 50%US market Ownbrandused Firstpostpaidservice New brand, notWalmart´s CDMA OnlywithVerizon Offerupgradetomeetthe Christmas campaign ProgressivelyaliningWalmartofferwiththat of theMNOs.

33. Agenda The “mVNOmovement” aroundtheglobe AnmVNO Case Study: the US mVNOmarkettoday Business InnovationWorkshop

34. The mVNO models are diverse and -still- open to imagination, yet they need clear vision and action to become success stories. MVNO MODELS “Traditional” models “New” models Retail Banking M2M Charity Children Ethnic SMS only Elderly Community/clubs Discount/no frills Travelers/VoIP Data-only SMEs Telco Media VoIP/Innov P&S Etc.

35. Now imagine you are an mVNO entrepreneur… how would you reshape the mVNO Business? WORKSHOP DYNAMICS Think of an mVNO for the new wireless world: New connected devices: ebooks, house appliances, cars, laptops, cameras, photo frames… New wireless device manufacturers: Apple, Lenovo, Google, Dell, Amazon ... New online communities and sticky services: Facebook, Tuenti, Youtube ... New telco services and over the top plays: roaming, VoIP, SMSoIP … New geographies, with new models: Asia, Latin America, Africa … Break into groups. Each member should propose an innovative value proposition and a market. Choose one and develop it together. Examples: The mVNO of the car manufacturers The mVNO of the people with income below 100USD The mVNO of Facebook, Google or YouTube The mVNO of Apple or HP The mVNO of Mediamarkt or Radio Shack The mVNO of the evangelic community The mVNO over IP You have 30 minutes to prepare a presentation. At the end, one or two of the group members should do the presentation to the public.

36. Example of questions to answer Market proposition: what is the target segment, the positioning and the market proposition and what makes it different? Opportunity assessment: why do you think the opportunity will be successful? Entry strategy: how will you develop that opportunity?. Branding/positioning. Offer: portfolio, products & services, pricing, promotions, customer service, etc. Channel: direct or indirect, traditional or new Communication strategy Key success factors: what aspects will be critical to succeed? Remember: prepare a small presentation and select two people to present.

37. THANK YOU Miguel Ángel Suárez +34 644 100 002 miguel.suarez@gmail.com

38. An attractive shop online… 18 …and a comprehensive online tool Simyo Spain A full online proposition, with an attractive shop and a comprehensive customer care tool online