Second20 million

2 billion96.8%

$90 million60%

Largest mobile VoIP companyRebtel usersPaid MinutesApproval RateRev.Run Rate end-2012of new users through viral

Who We Are

Apps for smartphones, PC and tablets

98% savings on international calls

Seamless call interception

Wi-Fi/3G to PSTN step-up

Free Rebtel-to-Rebtel calls over data

API’s for IOS, Android developers

What We Do

The past, current and future of voice, OTTs and operators

The fastest-growing mega industry

Mobile $1 trillion 2012

A few dominant players

6 billion accounts

Vodafone

439$11bn profits

Telefonica

232$14bn profits

America Movil

246

Telenor

150Verizon

108

China Mobile

667$10bn profits

Bharti Airtel

261

VimpelCom

209China Unicom

222

Reliance

183

MTN

139

* Subscribers (millions)

TeliaSonera

170Orange

175

Incumbents

toCost to call from !"!

#"$#%

%"!&SEK 10

%"!&

Why So Pricey?

Investment in network

Because they can - Oligopoly

Huge amounts of staff

Subsidized handsets & physical stores

Post-pay business model

Haven’t embraced opportunity of digital

Value

Then

Convenient

Value

User friendly

Cheaper

Easier

Now

(and mobile)

Viber

100$0m rev.

Skype

668 $860m rev.

Rebtel

20$85m rev.

* Users (millions)

Kakao Talk

50Kik

19 Nimbuzz

100

Tencent

50

WhatsApp

100textPlus

17

Voxer

50$0m rev.

Tango

45Disruptors

Cloud/Open Source Technology

Digital Distribution

No Physical Presence

Low Margins

Organic Growth

Strong UI/UX Focus

Why So Cheap?

Mobile VoIP$36 billion

500 million users by 2016 Frost & Sullivan 2011

Voice and Text have remained the same for decades

The latest operator-driven innovation?Interoperability

Chetan Sharma

12%

32%52%

4%

US

11%

24%

61%

4%

UK

...50% of all mobile users have a smartphone and70% of all phones sold are smartphones

Both in UK and US...

US Mobile Data Growth Curve

*Chetan Sharma Consulting

2,000

02006 2007 2008 2009 2010 2011 2012

peta

byte

s pe

r yea

r

iTunes Top Social Networking Free Apps

More than half are

OTT Voice - Text - Video

According to senior operators execs, telco SMS revenue will decline on average by 40% in four years time

25%

In three years time, in your geography, how much willtotal mobile carrier messaging revenues have

declined from today?

0-9%10-19% 30-39% 50-59% 70-79%

20-29% 40-49% 60-69% over 80%

*Delegate Vote, New Digital Economics Executive Brainstorm, November 2011

*Delegate Vote, New Digital Economics Executive Brainstorm, November 2011

25%

In three years time, in your geography, how much willtotal mobile carrier voice revenues have

declined from today?

0-4%5-9% 15-19% 25-29% 35-39% 45-49%

over 50%10-14% 20-24% 30-34% 40-44%

According to senior operators execs, telco voice revenue will decline on average by 20% in four years time

“The magnitude of upcoming change will be stunning. We are still in spring training” - Mary Meeker

“The Times They Are A-Changin’” - Bob Dylan

ThenNow

Provide access Control device

Control service

Own billing relationshipOwn address book

So, what’s the game plan?

Bullying?

Blocking VoIP-based OTT services

Applying Traffic Shaping

Lobbying against net-neutrality

DIY - Do It Yourself

Digital Innovation Hubs

&

&&

Partnerships

&

&

&

&

Acquisitions

&

=

Speed to market?Single purpose?New and innovative?Free? Fast iteration?

Linked in

Personalisedadvertising

Presence

Man to machinecommunication

Network addressbooks and groups

Socialcommunities

Chat

Videoenrichments

File sharing

Enhancedphonebook None of the above

RSC - Joyn

Diversify

*Chetan Sharma Consulting

Subscriber Penetration

Voice

Net R

even

ue

Messaging

AccessVAS / OTT

VoIP IP MessagingCloud

Advertising

Embrace data based revenue model

Understand customer needs

Learn from, embrace and work with OTT

Transfer to digital model

Be simple, honest and open

Run! These guys are crazy...

Andreas Bernstrom, CEO, Rebtel@AndreasCB