reading - session 12 project alpine june 2007

7/27/2019 Reading - Session 12 Project Alpine June 2007

http://slidepdf.com/reader/full/reading-session-12-project-alpine-june-2007 1/87

Coleago Consulting

MobileCo International

Project Alpine – The Potential Acquistion of One GmbH in Austria

Version 2.0 18 June 2007



Coleago Consulting

Project Alpine 1

Contents

• Executive Summary

• The Austrian Market

• One One GmbH – The Company to be Acquired

• Base Case Forecast

• Base Case Projected Financial Statements

• Options for Additional Value Creation

• Appendices

– Austrian Market Background, Tariffs, One Opex Analysis, T-Mobile & Mobilkom KPI‟s

– International Benchmarks



Coleago Consulting

Executive Summary



Coleago Consulting

Project Alpine 3

Executive Summary - Assumptions and Valuation

• Penetration was 111% at end „06, increases to 125%, incl.

mobile broadband (HSPA).

• Highly competitive 4 player MNO market plus initially 1

MVNO which exits the market by „09. By 2016 One

obtains 23.4% of gross adds and a 22.7% share of base.

• One will continues to host Tele2 MVNO with a market

share of 2.5% of gross adds until its exit in ‟09.

• As a result of Drei‟s push for market share annual prepaid

churn increases from a run rate of 28.5% in 2005 to 33.5%

in 2008, but postpaid churn falls from 19.1% to 18.8% in

2008 reflecting current market trends. From 2010 churn

reduces (2.0% points prepaid, 1.8% points for postpaid.

• Prices are low, increasing use of unlimited plans from

€19/month. Further drop in prices (CAGR minus 5.1%).

• ARPU ( €26.03 in „06) is declining slightly to €25.94 in „08,

before increasing to €29.00 by „16. Drivers are price

elasticity, increasing share of postpaid, fixed mobile

substitution and non-SMS data up from 6% of ARPU in „06

to 19% in 2016.

• SACs decrease from €82 in „06 to € 66 in 2016 SRCs from

6.0% of ARPU revenue to 7.2%.

• Opex in line with management case.

• Capex increases sharply in 2007/8 as per management

case before settling in long term at 10% of revenue.

• The base case scenario results in a temporary drop in

EBITDA margin to 21-20% in 2008-2009 due to

competitive pressure from Drei, before increasing to a

stable 24% in 2015.

• This produces a fair value DCF valuation of €1,064 million.

– WACC 8.72%, TV growth 1%.

• Downside risks may reduce value by €604 million (43.2%).

• Applying the challenger strategy increases the valuation

by €586 million (55%) to €1,650 million.

• The exit of Drei may increase the value by a further €350(88%) million.

Base Case Key Business Plan Assumptions Impact on Financials and Base Case Valuation



Coleago Consulting

Project Alpine 4

Summary of Base Case market evolution

2004 - 2005 2006 2007 - 2011 2012 - 2016

Growth renewed growth, penetrationreaches 105%

continued slow growth to111% penetration, wireless

broadband with HSDPA

penetration stabilises at 125% steady state

Compe-

tition

T-Mobile buys Tele.ring, Drei

and Tel2 impact, One

launches no frills Yesss

brand, increase in postpaid

Mobilkom outperforms, Drei

does well, gains for One,

minimal growth for Tele2, no

frills brand gain, postpaid up

Drei succeeds, Austria

becomes a 4 network player

market, with Tele2 exiting

Drei increases slightly to

16% of gross adds.

Regu-

latory

regulation to reduce mobile

termination rates

further reductions in mobile

termination rates

MTRs reaches 6.79 € cents,

CGAR -10%

further declines, CAGR -

5%

Churn Market churn reducing due to

trend to postpaid

steady +2 pts in ‟07 to ‟08, due to

Drei push for market share,

stable in 2009, then -1.5 pts

steady state

Prices significant price reductions Introduction of higher bundles

and unlimited tariffs, -25% av.

price per minute

CAGR -4.7% per minute, -

0.7% SMS, -18.8% Mbyte

Minutes down sl ightly,

SMS up slightly, CAGR

-1.4% per Mbyte

ARPU 4% increase in 2004, 1%

decline in 2005

11% decline CAGR 0.9%, price elastic for

prepaid, more postpaid, and

non-SMS data spend

CAGR 1.2%, price

elastic for prepaid, more

postpaid and data spend

SACs 15% increase in 2005, 2% in

2005

prepaid -79%, postpaid -9%,

but average up 34%

Decreasing reflecting existing

trends, CAGR 6.7%

slight increases, CAGR

0.3%

SRCs 4% of ARPU revenue 6.0% of ARPU revenue increasing to 6.5% of ARPU

revenue

further increase to 7.2%

of ARPU revenue



Coleago Consulting

Project Alpine 5

The management case shows considerably higher gross margin and thus results a 69%

higher EBITDA minus Capex by 2012.

• The difference in gross margin

is due to cost of sales, suchas interconnect cost, SACs

and SRCs.

• For example, by 2012

interconnect cost are 25.5%

higher in the MobileCo base

case.

€ Million Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12Model Revenue 666.4 682.6 713.6 759.5 788.2 815.3Management Revenue 658.5 681.6 710.6 747.6 781.1 813.3% Difference 1.2% 0.2% 0.4% 1.6% 0.9% 0.2%

Model Cost of Sales 289.7 298.1 310.1 322.1 331.8 344.4Management Cost of Sales 262.7 275.6 269.8 274.5 274.8 280.0% Difference 9.3% 7.5% 13.0% 14.8% 17.2% 18.7%

Model Gross Margin 376.7 384.5 403.5 437.4 456.4 470.9Management Gross Margin 395.8 406.0 440.8 473.0 506.2 533.4% Difference -5.1% -5.6% -9.2% -8.1% -10.9% -13.3%

Model Gross Margin % 56.5% 56.3% 56.5% 57.6% 57.9% 57.8%Management Gross Margin % 60.1% 59.6% 62.0% 63.3% 64.8% 65.6%

Model Opex 227.2 243.6 261.7 272.6 277.8 288.8Management Opex 232.9 247.7 262.0 273.0 278.3 290.0% Difference -2.5% -1.7% -0.1% -0.1% -0.2% -0.4%

Model EBITDA 149.5 140.9 141.8 164.8 178.6 182.0Management EBITDA 162.9 158.3 178.8 200.1 227.9 243.4% Difference -9.0% -12.3% -26.0% -21.4% -27.6% -33.7%

Model EBITDA % 22.4% 20.6% 19.9% 21.7% 22.7% 22.3%Management EBITDA % 24.7% 23.2% 25.2% 26.8% 29.2% 29.9%

% Point Difference -2.3% -2.6% -5.3% -5.1% -6.5% -7.6%Model Capex 147.8 112.2 83.8 86.2 83.4 86.3Management Capex 156.0 112.2 83.8 86.2 81.9 81.3% Difference -5.6% 0.0% 0.0% 0.0% 1.8% 5.8%

Model EBITDA minus Capex 1.7 28.7 58.0 78.7 95.2 95.7Management EBITDA minus Ca 6.9 46.0 95.0 113.9 146.0 162.1% Difference -317.6% -60.5% -63.6% -44.8% -53.3% -69.3%



Coleago Consulting

Project Alpine 6

DCF Valuation

WACC Notes

Risk free rate 4.47%Equity Risk Premium 6.00%

Cost of Equity 10.12%

Debt Spread Points 78

Debt Interest 5.25%

Tax Rate 0.00%

Cost of Debt 5.25%

Levered Beta 0.94

Debt 28.64%

Equity 71.36%

WACC 8.72%

Risk free rate based on yield of Austrian 10 year government bondBeta: MobileCo unlevered 0.7746, 28.64 Debt / Total Cap, 25% tax rate

Vodafone 1.089 (levered) 0.96 (unlevered),

Bouygues 1.047 (levered) 0.88 (unlevered)

Average unlevered 0.92

Debt: € 350 million

Effective tax rate is nil due to accumulated losses, otherwise 25%

Equity: Base on Merrill Lynch EV € 1,222 million

Date of Valuation: 1st January 2007

Valuation Based on DCF + TV Growth and DCF + EBITDA Multiple

---- TV Growth Rate ---- ---- EBITDA Multiples ----Enterprise Value € Million 0.50% 1.00% 1.50% 3.5 4.0 4.5

Discount Rate @ 8.22% 1,100 1,143 1,193 871 921 971Discount Rate @ 8.72% 1,028 1,064 1,106 842 890 938Discount Rate @ 9.22% 964 995 1,030 815 861 907

---- TV Growth Rate ---- ---- EBITDA Multiples ----EV / 2007 EBITDA 0.50% 1.00% 1.50% 3.5 4.0 4.5

Discount Rate @ 8.22% 7.4 x 7.6 x 8.0 x 5.8 x 6.2 x 6.5 xDiscount Rate @ 8.72% 6.9 x 7.1 x 7.4 x 5.6 x 6.0 x 6.3 x

Discount Rate @ 9.22% 6.4 x 6.7 x 6.9 x 5.5 x 5.8 x 6.1 x



Coleago Consulting

Project Alpine 7

One Base Case valuation range using comparables

• There are few similar pure

play mobile valuationcomparables which

means a valuation based

on comparables is

tentative.

• In the subsequent

analysis we rely on the

DCF + terminal value

growth rate model shown

on the previous page.

964

815

658

1,193

971

769

897

131

1,046

196

200 400 600 800 1,000 1,200 1,400 1,600 1,800

DCF + TV

DCF + EBITDA x

EV/EBITDA

EV/FCF

PE / EV

Average

€ Million

EV / 2007 EBITDA 1.3 x 2.7 x 4.0 x 5.4 x 6.7 x 8.0 x 9.4 x 10.7 x 12.0 x

EV / 2007 Sales 0.3 x 0.6 x 0.9 x 1.2 x 1.5 x 1.8 x 2.1 x 2.4 x 2.7 xEV / 2007 EBITDA - Capex 11.8 x 23.6 x 35.4 x 47.2 x 59.0 x 70.8 x 82.6 x 94.4 x 106.2 x

EV / 2007 Customer 94 188 282 377 471 565 659 753 847



Coleago Consulting

Project Alpine 8

1,06410

374

18 11487

604

0

200

400

600

800

1,000

1,200

B a

s e C a s e

L o s s o f W

h o l s a l e

L o w e r M a r k e t S h a r e

H i g h e r S A C s

& S R C s

L o w e r T a r i f f s

L o w e r I n t e r c o n .

R e v

e n u e

C

o m b i n e d

Downside valuation scenarios

* Combined value when modelled simultaneously

Downside Valuation Scenarios

We investigated a number of downside risks and modelled

their impact on the valuation of One

A: One loses the wholesale business of Tele2 (100% loss

of wholesale revenue)

B: One underperforms by 10% in terms of Market Share

of Gross Additions

C: Competition from Drei forces an increase of 5% in

SACs and SRCs

D: Price competition reduces tariffs by 5%

E: One fails to secure favourable terms from the regulator

for mobile termination rate regulation (5% reduction in

interconnect revenue)

Downside Valuation Scenarios

Impact of Downside Scenarios

If Drei succeeds in disrupting the market, this would have a

significant negative impact.

Based on the contribution of wholesale revenues from

Tele2 the loss of Tele2 as a wholesale customer would notbe disastrous.

The business case is not hugely impacted if termination

rates for One are ruled to be the same as Mobilkom‟s.

*



Coleago Consulting

Project Alpine 9

MobileCo proved that revenue can be increased

substantially while SACs can be lowered thus increasing

EBITDA.

We have modeled this the challenger strategy by:

Accelerate sales through distribution partners – share

of gross adds increased 2% from 2008, wholesale

partners receive a 20% discount on the prepaid tariff,

marketing spend reduced €2m.

Coverage increased outside of major ci ties – share of gross adds increased 1% from 2009, churn reduced 2%

and 1% for prepaid and postpaid respectively,

additional 100 sites and supporting opex

FTEs (Full Time Equivalent Staff) reduced through a

focus strategy – FTEs reduced by 189 in ‟08 and ‟09,

171 FTEs from customer care outsourced

ONE receives MobileCo roaming minutes – an

additional 61.7 million minutes

UMTS investment reduced – coverage limited to 91%

of pops and marketing spend reduced by €2m. 50%

slower growth of HUI take-up in ‟08 and „09

The challenger strategy (see box on right)

No roaming fee brand covering Austria, Germany,

France, Belgium targeting a segment of the market.

Optimise transmission network and generate opex

savings.

Other options such as sale of towers were investigated

but either do not add value or further information is

required to value the initiative.

Initiatives to Increase Value Challenger Strategy Assumption Set

Impact of Value Creation Initiatives

Applying the challenger strategy would considerably enhance the valuation

*

586

19377

1,064

1,6501,843 1,920 1,886

0

500

1,000

1,500

2,000

2,500

B a s e C a s e

C h a l l e n g e r

S t r a t e g y

N o r o a m i n g

f e e s

O p t i m i s e

t r a n s -

m i s s i o n

C o m b i n e d



Coleago Consulting

Project Alpine 10

586

1,650

2,001

1,064

0

500

1,000

1,500

2,000

2,500

B a s e C a s e

C h a l -

l e n g e r

D r e i E x i t

459

1,064

1,523

0

200

400

600

800

1,000

1,200

1,400

1,600

Base Case Drei Exit

The impact from 2009 onwards:

No further growth in Drei market share

One gains 3% points share of gross adds over 3 years,

reaching 27.9% by 2012

One and market churn for prepaid and postpaid

customers reduces by 1% in 2009

Postpaid handset subsidies 15% lower from 2009

onwards.

Drei is an unpredictable force in the Austrian market -

increasing investment risk and volatil ity of return

Current base case assumes that Drei maintains

significant competitive pressure on the Austrian market

This may be construed as a cautious assumption and

there is some upside should Drei be less aggressive

There is a small probability that Drei may exit in the long

run

The possibility of further market consolidation, plus the

upside from the challenger case makes this an excitinginvestment for MobileCo

Drei Market Exit Assumption Set

Drei Market Exit Valuation Impact

The view taken on Drei has a big impact on the value creation potential

The Impact of Drei Exit Compared



Coleago Consulting

Project Alpine 11

Executive Summary – Financial KPIs

Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16

Financials - € Million Nominal

Revenue 667.6 650.6 666.4 682.6 713.6 759.5 788.2 815.3 840.7 863.2 880.3 892.7

Revenue Growth - -3% 2% 2% 5% 6% 4% 3% 3% 3% 2% 1%

Gross Margin 409.8 380.8 376.7 384.5 403.5 437.4 456.4 470.9 485.9 502.1 514.5 523.4Gross Margin Growth - -7% -1% 2% 5% 8% 4% 3% 3% 3% 2% 2%

Gross Margin 61% 59% 57% 56% 57% 58% 58% 58% 58% 58% 58% 59%

EBITDA 204.5 173.2 149.5 140.9 141.8 164.8 178.6 182.0 191.6 202.7 210.5 212.9Cumulative EBITDA - 173.2 322.7 463.6 605.4 770.3 948.9 1,130.9 1,322.5 1,525.3 1,735.7 1,948.7

EBITDA Growth - -15% -14% -6% 1% 16% 8% 2% 5% 6% 4% 1%EBITDA Margin 31% 27% 22% 21% 20% 22% 23% 22% 23% 23% 24% 24%

EBIT 47.5 29.6 12.7 5.2 14.3 27.0 35.3 31.0 53.3 97.1 101.0 100.8EBIT Growth - -38% -57% -59% 175% 90% 30% -12% 72% 82% 4% 0%

EBIT Margin 7% 5% 2% 1% 2% 4% 4% 4% 6% 11% 11% 11%

PBT 18.0 5.0 (11.4) (19.5) (10.2) 4.3 15.2 13.8 39.5 87.1 93.6 94.4PBT Growth - -72% -328% -71% 48% n/a 254% -9% 186% 120% 7% 1%PBT Margin 3% 1% 0% 0% 0% 1% 2% 2% 5% 10% 11% 11%

PAT 13.1 3.3 (11.4) (19.5) (10.2) 4.3 15.2 13.8 39.5 87.1 93.6 94.4PAT Growth - -75% -441% -71% 48% n/a 254% -9% 186% 120% 7% 1%PAT Margin 2% 1% 0% 0% 0% 1% 2% 2% 5% 10% 11% 11%

Cash Flow from Ops - 181.0 164.1 136.0 139.7 174.0 178.3 183.3 191.3 201.5 210.1 213.0Capex (Cash Flow) 61.6 147.8 112.2 83.8 86.2 83.4 86.3 88.4 90.5 91.6 92.7

Free Cash Flow - 119.4 16.3 23.7 55.9 87.8 94.9 97.0 102.8 111.0 118.5 120.2

FCF Growth - - -86% 45% 135% 57% 8% 2% 6% 8% 7% 1%Cumulative FCF - 119.4 135.8 159.5 215.4 303.2 398.1 495.1 597.9 708.9 827.4 947.6

Capex / Sales 10% 8% 20% 15% 11% 11% 10% 10% 10% 10% 10% 10%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016



Coleago Consulting

Project Alpine 12

Executive Summary – Penetration, Market Share and Churn


Mobile PenetrationPopulation '000 8,233 8,270 8,306 8,343 8,380 8,417 8,444 8,472 8,499 8,527 8,555 8,581

Mobile Subscribers '000 8,605 9,220 9,668 9,974 10,186 10,338 10,440 10,517 10,578 10,630 10,675 10,715

Mobile Penetration 105% 111% 116% 120% 122% 123% 124% 124% 124% 125% 125% 125%

Installed Base '000One 1,664 1,817 1,932 2,076 2,196 2,260 2,300 2,326 2,367 2,395 2,415 2,432

Mobilkom 3,392 3,631 3,749 3,782 3,789 3,756 3,726 3,700 3,639 3,592 3,553 3,524T-Mobile 3,097 3,180 3,268 3,335 3,372 3,374 3,352 3,333 3,314 3,298 3,284 3,274

Tele2 171 202 192 96 0 0 0 0 0 0 0 0

Drei 281 391 527 685 829 949 1,062 1,158 1,257 1,344 1,424 1,486Total 8,605 9,220 9,668 9,974 10,186 10,338 10,440 10,517 10,578 10,630 10,675 10,715

Share of BaseOne 19% 20% 20% 21% 22% 22% 22% 22% 22% 23% 23% 23%

Mobilkom 39% 39% 39% 38% 37% 36% 36% 35% 34% 34% 33% 33%

T-Mobile 36% 34% 34% 33% 33% 33% 32% 32% 31% 31% 31% 31%Tele2 2% 2% 2% 1% 0% 0% 0% 0% 0% 0% 0% 0%

Drei 3% 4% 5% 7% 8% 9% 10% 11% 12% 13% 13% 14%Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Share of Gross AddsOne 25% 26% 24% 25% 25% 24% 24% 24% 24% 24% 23% 23%

Mobilkom 26% 35% 34% 32% 32% 32% 31% 31% 31% 31% 31% 31%

T-Mobile 36% 29% 32% 32% 31% 31% 31% 30% 30% 30% 30% 30%Tele2 4% 3% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Drei 8% 7% 9% 11% 12% 13% 14% 15% 15% 16% 16% 16%Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Churn

One Prepaid Churn 29% 34% 34% 34% 34% 33% 33% 32% 32% 31% 31% 31%One Postpaid Churn 23% 19% 19% 19% 19% 18% 18% 18% 17% 17% 17% 17%

One Blended Churn 25% 27% 26% 25% 26% 25% 24% 24% 23% 23% 23% 23%

One Customers by Type %

Prepaid 48% 45% 41% 44% 45% 45% 44% 43% 43% 42% 41% 41%Postpaid 43% 45% 50% 52% 54% 55% 56% 56% 57% 57% 58% 58%

Wholesale 9% 10% 9% 4% 0% 0% 0% 0% 0% 0% 0% 0%Machines 0% 0% 0% 0% 0% 0% 0% 1% 1% 1% 1% 1%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016



Coleago Consulting

Project Alpine 13

Executive Summary – ARPU and Usage


Monthly ARPU - € Nominal

Prepaid 9.85 9.60 9.43 9.12 9.03 9.11 9.21 9.30 9.48 9.64 9.77 9.84Postpaid 47.59 43.39 41.40 39.97 39.66 40.88 41.38 41.99 42.38 42.58 42.65 42.62

Average 29.28 26.03 26.17 25.94 25.69 26.53 27.09 27.68 28.16 28.53 28.82 29.00Prepaid ARPU - % Change - -2.5% -1.7% -3.4% -0.9% 0.8% 1.1% 1.0% 1.8% 1.7% 1.4% 0.8%

Postpaid ARPU - % Change - -8.8% -4.6% -3.4% -0.8% 3.1% 1.2% 1.5% 0.9% 0.5% 0.2% -0.1% AverageARPU - % Change - -11.1% 0.6% -0.9% -1.0% 3.3% 2.1% 2.2% 1.7% 1.3% 1.0% 0.6%


Subscription & Voice 16.43 13.78 13.79 13.81 13.74 13.84 14.01 14.12 14.25 14.37 14.48 14.57

SMS 1.57 1.27 1.26 1.18 1.04 0.93 0.83 0.74 0.67 0.63 0.59 0.56Other Data 0.70 1.48 2.25 2.74 3.12 3.63 4.05 4.43 4.81 5.13 5.40 5.60

Content, VAS, Roaming 2.81 2.61 2.74 2.61 2.55 2.51 2.49 2.54 2.59 2.64 2.68 2.71Total From Customers 21.52 19.15 20.04 20.35 20.45 20.91 21.38 21.83 22.32 22.77 23.15 23.44

Interconnect 7.76 6.88 6.14 5.58 5.23 5.62 5.71 5.85 5.84 5.77 5.67 5.56Monthly ARPU 29.28 26.03 26.17 25.94 25.69 26.53 27.09 27.68 28.16 28.53 28.82 29.00

Monthly ARPU by Type of Service

Subscription & Voice 82% 78% 75% 74% 73% 73% 72% 72% 71% 70% 70% 69%

SMS 6% 6% 6% 5% 5% 4% 3% 3% 3% 2% 2% 2%Other Data 2% 6% 9% 11% 12% 14% 15% 16% 17% 18% 19% 19%

Content, VAS, Roaming 10% 10% 10% 10% 10% 9% 9% 9% 9% 9% 9% 9%Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Monthly Usage per Customer

Outbound Minutes 103 115 148 167 173 178 182 187 192 196 201 205Inbound Minutes 55 56 59 67 71 81 87 94 99 103 106 110

Total Minutes 158 171 207 234 244 259 269 281 291 299 307 315Total SMS 21 21 22 22 19 17 15 13 12 11 10 9Total MMS 1 1 1 2 2 3 4 4 5 6 6 6

Packet Data - Mbytes 0.4 1.7 7.9 15.3 20.8 27.5 33.8 39.9 44.5 48.2 51.2 52.8Video Telephony Minutes 0 0 0 0 0 0 0 0 0 0 0 0

Mobile TV Months 0 0 0 0 0 0 0 0 0 0 0 0PTT Calls 0 0 0 0 0 0 0 0 0 0 0 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016



Coleago Consulting

Project Alpine 14

Executive Summary – SACs and SRCs


SAC per Gross Add - Nominal €

Prepaid SAC 17 4 2 3 3 3 2 1 1 1 1 1

Postpaid SAC 198 180 157 148 147 147 147 146 146 146 146 146

Average SAC 61 82 87 64 66 66 66 65 66 66 66 66 Annual Change - 34% 6% -27% 3% 1% 0% 0% 0% 0% 0% 0%

Prepaid Payback & Customer Lifetime Value Average Customer Life - Years 3.5 2.9 3.0 3.0 3.0 3.0 3.1 3.1 3.2 3.2 3.2 3.2

Net ARPU - Nominal € 7.8 7.3 7.2 7.1 7.0 6.9 7.0 7.0 7.2 7.3 7.5 7.5

Payback - Months 2.2 0.5 0.2 0.4 0.5 0.4 0.3 0.1 0.1 0.1 0.1 0.1

Customer Life Value Nominal € 312 252 257 250 246 250 255 262 273 283 288 291

Postpaid Payback & Customer Lifetime Value Average Customer Life - Years 4.4 5.2 5.3 5.3 5.3 5.5 5.6 5.6 5.9 6.1 6.1 6.1

Net ARPU - Nominal € 31.6 29.3 27.8 26.1 26.1 27.0 27.3 27.4 27.6 27.7 27.8 27.8Payback - Months 6.2 6.1 5.7 5.7 5.6 5.4 5.4 5.3 5.3 5.3 5.3 5.3

Customer Life Value Nominal € 1,457 1,662 1,615 1,516 1,519 1,623 1,693 1,700 1,803 1,868 1,874 1,874

Average Payback & Customer Lifetime Value

Average Customer Life - Years 3.9 3.7 3.8 3.9 3.9 4.0 4.1 4.2 4.3 4.4 4.4 4.4

Net ARPU - Nominal € 20.7 17.9 17.7 17.5 17.4 17.9 18.2 18.4 18.7 19.0 19.2 19.3

Payback - Months 2.9 4.6 4.9 3.6 3.8 3.7 3.6 3.6 3.5 3.5 3.4 3.4

Customer Life Value Nominal € 915 709 725 759 750 794 830 854 900 936 951 962

Retention Cost per Customer / Year - Nominal €

Prepaid 4.50 4.00 3.25 3.30 3.42 3.55 3.68 3.81 3.95 4.09 4.20 4.29

Postpaid 50.60 47.59 42.60 42.26 43.22 44.00 44.82 45.78 46.60 47.53 48.30 48.93Blended 31.19 26.91 24.81 26.55 26.96 27.56 28.36 29.22 30.03 30.87 31.64 32.31

SACs & SRCs € Million Nominal

SACs 34.7 49.4 51.3 40.5 42.6 40.4 38.9 37.9 38.3 37.3 37.2 37.3SRCs 34.9 32.6 33.3 38.2 41.7 45.4 48.5 51.0 53.6 56.5 58.6 60.4SACs + SRCs 69.7 82.0 84.6 78.7 84.3 85.8 87.3 89.0 91.9 93.8 95.8 97.7

Subs. Acquisition & Retention CostSACs / ARPU Revenue 6.2% 9.1% 8.7% 6.5% 6.5% 5.7% 5.2% 4.9% 4.8% 4.6% 4.5% 4.4%SRCs / ARPU Revenue 6.3% 6.0% 5.7% 6.1% 6.3% 6.4% 6.5% 6.6% 6.8% 6.9% 7.0% 7.2%

SACs+SRCs / ARPU Reven. 12.5% 15.1% 14.4% 12.6% 12.8% 12.1% 11.8% 11.6% 11.6% 11.5% 11.5% 11.6%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

C l C lti



Coleago Consulting

Project Alpine 15

Executive Summary – Tariffs and Interconnect Rates

Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16Revenue: Average Tariffs - € Nominal

Outbound Minute 0.16 0.12 0.09 0.08 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07

Interconnect per Minute 0.14 0.12 0.10 0.08 0.07 0.07 0.07 0.06 0.06 0.06 0.05 0.05

Outbound SMS 0.10 0.09 0.08 0.08 0.08 0.08 0.08 0.08 0.09 0.09 0.09 0.09Packet Data per Mbyte 1.41 0.74 0.25 0.16 0.13 0.12 0.11 0.10 0.10 0.10 0.09 0.09

Change in Nominal Average TariffsOutbound Minute - -24.7% -22.2% -11.5% -3.7% -2.0% -1.2% -2.1% -1.5% -1.5% -1.5% -1.5%

Interconnect per Minute - -13.6% -16.0% -19.5% -11.6% -5.3% -5.2% -5.1% -5.1% -5.1% -5.1% -5.1%Outbound SMS - -14.7% -5.0% -3.5% 0.5% -0.5% 0.8% 2.0% 3.5% 1.2% 1.1% 2.2%

Packet Data per Mbyte - -47.9% -66.4% -36.5% -15.8% -11.1% -8.7% -7.0% -2.8% -1.6% -1.2% 0.0%

Interconnect Cost Per Outbound Minute

Interconnect Cost - Nominal € 0.105 0.094 0.074 0.063 0.056 0.053 0.052 0.051 0.049 0.047 0.045 0.044

Change in Nominal Terms - -11% -21% -14% -11% -5% -2% -2% -3% -5% -4% -4%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016



Coleago Consulting



Coleago Consulting

Project Alpine 17

The Austrian telecoms end-user market is worth €1.4 billion and is showing very small

signs of decline

• The sharp decline in fixed voice telephony revenue

is largely offset by broadband and mobile.However, the overall telecoms market value is

starting to show signs of decline.

• There is already a substantial trend away from fixed

to mobile.

• The mobile market growth in 2006 is estimated to

be around 1.6%, compared to 5.5% in 2005.

• Mobile price pressure with introduction of unlimited

tariffs in 2006 and very low per Mbyte prices.

Fixed Phone & Boradband Penetration

37.3% 36.9% 36.6% 36.2% 36.0% 35.7% 35.2%

9.4% 10.2% 10.9% 11.7% 12.7% 13.5% 14.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Fixed Lines per Capita

Broadband Con. Per Capita

End-User Market Value

365 358 345 336 338 341 324

209 203 192 183 187 190 176

95 100 104 111 113 126 127

731 761 745 777 771 775757

1,401 1,421 1,386 1,407 1,409 1,4321,383

0

200

400

600

800

1,000

1,200

1,400

1,600

Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

€ M i l l i o n

Fixed Line Rental Fixed Call Charges Broadband Mobile Line Rent & Calls

Market Value Value Year

on Year Change Q4 2005 Q1 2006 Q2 2006

Fixed Line Rental -7.5% -4.6% -6.1%Fixed Call Charges -10.8% -6.2% -8.3%

Broadband 18.9% 25.6% 21.4%Mobile Line Rent & Calls 5.5% 1.8% 1.6%Total 0.6% 0.7% -0.2%



Coleago Consulting



Coleago Consulting

Project Alpine 19

The mobile market is innovative and highly competitive with relatively tariffs, high MOUs

and well advanced towards fixed-mobile substitution

• Highly competitive 4 MNO +1 MVNO market and

discount brands (Bob, eety, Yesss, etel,Schwarzfunk), T-Mobile maintains the tele.ring

brand as a low cost brand.

• Mobilkom and T-Mobile kept lead during „06 while

One increased its market share to nearly 20%.

• Tele2, MVNO hosted by One, gained little market

share finished the year with 202k customers.

• Driven by price discounts, the impact of Dreiincreased its customer base from 281k to 390k.

• Postpaid customers account for over half the

market. The three main players (T-Mobile,

Mobilkom, One) increased the postpaid proportion

from 51.3% in 2003 to 58.8% in 2006

• Average churn is relatively low, high proportion of

postpaid, 2 year contracts, One above aver. churn.

• Price pressures: Market ARPU declined by around

6%, unlimited tariffs are becoming prevalent.

• SACs are relatively low, with Mobilkom reporting a

€78 average and SRCs are reasonable

Key Market Facts 2003 2004 2005 2006

Population '000 8,118 8,175 8,233 8,270Mobile Subs '000 7,257 7,925 8,605 9,220Penetration 89% 97% 105% 111%3G Enabled 0% 2% 10% 22%

Market Share

One 20% 19% 19% 20%Mobilkom 44% 41% 39% 39%T-Mbile + Tele.ring 36% 37% 36% 34%Drei 0% 2% 3% 4%Tele2 1% 1% 2% 2%

Postpaid %

One 56.1% 56.1% 47.3% 47.3%Mobilkom 53.2% 54.3% 56.9% 60.8%T-Mbile + Tele.ring 46.8% 48.2% 50.0% 61.7%

Churn %

One n/a 25% 26% 28%Mobilkom 16% 17% 17% 17%T-Mbile + Tele.ring 19% 20% 20% 21%

ARPU € / Month

One 35 34 31 28Mobilkom 37 37 37 34T-Mobile 31 34 34 33

Data % of ARPUOne n/a 10.2% 11.5% 13.7%Mobilkom 11.4% 12.6% 17.4% 21.8%T-Mbile + Tele.ring 10.0% 9.0% 11.0% 13.0%

SACs €

One n/a 177 60 84Mobilkom 92 110 107 78T-Mbile + Tele.ring 121 133 141 128

Coleago Consulting



Coleago Consulting

Project Alpine 20

• 51 shops

• 43 shops

• 60 shops

• 21 shops

• 30 shops

MNO owned shops play a major role in distribution, but distribution partners are also

important

• Operator owned shops are concentrated in major

cities.

• At the end of 2006, 200 out of One Group‟s 870 full

time staff worked in One World Shops.

• Large retailers such as Saturn and Media Markt are

significant as well as small chains such as

Niedermeyer and Cosmos.

• A1 has a distribution deal with the post office, whichdelivers reach into small towns and villages.

MNO Own Shops

Coleago Consulting



Coleago Consulting

One GmbH – The Company to be Acquired

Coleago Consulting



g g

Project Alpine 22

One GmbH Overview

• One focuses on customer facing activities, strong

customer care and distribution. Multi-brand (Yesss) and

MVNO (Tele2, eety) strategy to increase to totalnetwork customers.

• End 2006 population coverage of 98% with 4,100 BTS,

UMTS coverage 62% with 1,400 node Bs, HSDPA

mobile broadband coverage in key cities.

• 3.2 MHz GSM 900 & 29 MHz GSM 1800spectrum. Total

of 32.2 MHz similar to Mobilkom / T-Mobile, but relies

more on 1800 MHz, giving slight cost disadvantage. 2 x15 MHz UMTS frequencies.

• At the end of June 2006 ONE had roaming agreements

with about 311 partners in 144 countries.

• Distribution through 51 ONE Worlds (One owned shops)

and about 1,600 other distribution points.

• ONE Bank GmbH, 100% subsidiary.

• Paybox: 16.67% stake (joint m-payment solution

together with Mobilkom).

• eety-Telecommunications GmbH: 25.1% stake. Low-

cost international services to ethnic communities,

launch Apr. 06.

• E.ON (50.10%),• Telenor (17.45%)

• Orange (17.45%)• TDC (15%).

One Shareholders

One Key Facts 2003 2004 2005 2006

Revenue € Million 664 705 652 650

Growth % 7.1% 6.2% -7.5% -0.2%

ARPU € / Month 35 34 31 28Growth % n/a -2.9% -8.1% -10.8%

EBITDA € Million 196 202 175 161Growth % n/a 2.7% -13.2% -8.2%Margin 29.6% 28.6% 26.8% 24.7%

Capex € Million 93 70 68 62% of Revenue 14.1% 9.9% 10.4% 9.5%

Staff 1,322 900 857 870Growth % -5.6% -32.0% -4.7% 1.6%

Subscribers '000 1,430 1,502 1,664 1,817MVNO Users '000 47 97 171 202Network Users '000 1,477 1,599 1,834 2,019

Growth % 10% 8.3% 14.7% 10.1%

Market Share 19.7% 19.0% 19.3% 19.6%

Postpaid Customers 56.1% 56.1% 47.3% 47.3%

One Group Brands MVNO Brands

Coleago Consulting



g g

Project Alpine 23

One GmbH Timeline 1/2

• Aug 1997: Connect Austria awarded third GSM license for AS 2.3 billion / € 167 million

• Oct 1998: Commercial launch of its Nokia-supplied GSM 1800 network

• Nov 1999: Launch of wireless Internet services (i-ONE)

• Nov 2000: 3G UMTS license (AS 1.652 billion / € 120 million )

• Feb 2001:Launch of GPRS (Nokia platform)

• Oct 2001: Acquisition of eWave.at Telekommunikations AG (broadband wireless operator) to bundle W-

Lan/Wi-Fi service with 3G. As the plan did not work out, eWave (renamed as Yesss!) functions as a low-

cost voice telephony service and a discount enhanced mobile service provider.• Apr 2002: Partnership with Liwest (broadband cable operator) and launch of Trio 24 (package of fixed-line,

Internet & mobile telephony service)

• Jul 2003: Launch of W-LAN / Wi-Fi services (300 hotspots, ONE W-LAN)

Coleago Consulting



Project Alpine 24

One GmbH Timeline 2/2

• Nov 2003: Seven-year outsourcing contract with Alcatel for management & maintenance of its network

( €472 million, took effect from January 1, 2004) for a seven year period to 2010. Around 200 staff were

transferred from One to Alcatel. Alcatel has taken full responsibility for: The core network, mobile and fixedaccess network. Alcatel has taken turnkey responsibility for the planning and rollout of network extensions

of the GSM and UMTS networks the network control centre and all its field activities on its network. Alcatel

operates all sites. The contract also covers facility management for One‟s headquarters, regional offices

and One shops. One can order capacity from Alcatel at an agreed price, with an agreed quality and in the

agreed geography.

– In 2006, One decided to purchase back transmission network assets from Alcatel.

• Dec 2003: Launch of 3G UMTS service in 7 cities (25% population coverage).

• Oct 2004: Completion of financing through a € 700 million syndicated bank loan facility.

• Apr 2005: Launch of YESSS, One‟s no-frills ESP. Distributes via uses Hofer's retail sales presence (370

outlets in Austria), a retail discount chain, part of the ALDI group. YESSS is 100% owned by One.

• June 2005: ONE Bank GmbH, a 100% ONE subsidiary, forming the basis of mobile payment applications.

• Jan 2006: One outsourced the operation of the IT to Siemens, transferring 28 employees to Siemens.

• Jun 2006: Launch of HSDPA mobile broadband. One will invest (Ericsson) during 2006, 2007, 2008 €260

million to roll out mobile broadband (up to 7.2 Mbit/s). By end 2008, population coverage will reach 90%

• Jun 2006: Launch of aggressively prices 4:0 tariff with unlimited elements.

• Nov 2006: “One to go” distribution arrangement through Tschibo.

Coleago Consulting



Project Alpine 25

Around 10% of One’s network customer base at the end of 2006 are wholesale MVNO

customers.

One Network Customer Base

• Yesss is a service provider rather than an

MVNO. It is a wholly owned subsidiary

consolidates in One‟s accounts. Consequently

we have modelled Yesss customer as One

customers, i.e. all costs and revenue appear.

• Tele2 ad eety are MVNOs. We assumed the

only revenue One receives are the wholesale

traffic revenue. There are also no cost of sales

such as SACs and SRCs. Therefore we have

modelled MVNO revenue as wholesale

revenue.

• We have assumed that Tele2 pays One for the

use of the radio network, regardless of the

direction of traffic and that Tele2 receives andpays its own interconnect revenue and cost.

• Key indicators such as ARPU, MOUs, churn

SACs, SRCs etc are calculated on One‟s

customer base including Yesss, which correctly

reflects business situation.

There are a number of service providers / enhancedservice providers in the Austrian market, but they are

not MVNOs. Examples include, Bob and Schwarzfunk.

Service Providers

One Netw ork Customers

811.0 842.1 787.5 871.0

619.0 660.1558.5 423.3

34.0

317.8488.797.2

170.8

202.3

47.0

1,477.01,599.4

1,834.5

2,019.2

0

500

1,000

1,500

2,000

2003 2004 2005 2006

C u s t o m e r s ' 0 0 0

One Postpaid One Prepaid Yesss Pos tpaid Yesss Prepaid MVNO

Coleago Consulting



Project Alpine 26

A mixed marketing performance

• In line with market trends ARPU declined and the

share of non-voice ARPU increased

– At the end of 2006 One had 16,000 UMTS data

card customers

• Prepaid and postpaid SACs declined.

– There is evidence that SACs declined in the

Austrian market as a whole.

• One‟s churn is above market average.

ARPU

3 5

3 4

3 1

2 8

10.2%

11.5%

13.7%

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006

A R P U

0%

2%

4%

6%

8%

10%

12%

14%

16%

ARPU Non-Voice ARPU %

Annual Churn

24.6%26.5%

27.6%

0%

5%

10%

15%

20%

25%

30%

2004 2005 2006

SACs284

210196

4936

18

0

50

100

150

200

250

300

2004 2005 2006

€

Pos tpaid SACs Pr epaid SACs

Coleago Consulting



Project Alpine 27

Financially, One did not perform well during past two years

• The Austrian market is highly competitive and as a

result One‟s revenues were flat.

• Due to tariff declines and higher than average churn

One‟s performance showed a negative development

during the past two years.

– EBITDA and EBITDA margin declined.

– Gross margin (defined as revenue minus direct

variable costs) declined in absolute and in

percentage terms.

4 2 0

4 4 1

3 9 8

3 9 0

63% 63% 61% 60%

0

50

100

150

200

250

300

350

400

450

500

2003 2004 2005 2006

€ M i l l i o n

0%

10%

20%

30%

40%

50%

60%

70%

Gross Margin Gross Margin %

6 6

4

7

0 5

6 5

2

6 5 0

1 9 6

2 0 2

1 7 5

1 6 1

29.6%

26.8%

24.7%

28.6%

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006

€ M i l l i o n

0%

5%

10%

15%

20%

25%

30%

Revenue EBITDA EBITDA Margin

Coleago Consulting



Project Alpine 28

Despite the less than satisfactory performance at EBITDA level, cash flow increased to

2005 due to lower capex. However, the situation in 2007 will be very different.

• Lower capex lead to an increase in free cash flow.

However, in 2006 free cash flow also declined,despite slightly lower capex.

• During 2007, capex will be significantly higher due

to

– UMTS investment,

– the buy back of transmission network assets

from Alcatel.

• According to the management case, capex will jump

to €156 million and free cash flow will drop to €22

million.

• However, the savings in opex on the outsourcing

contract will have a positive impact on EBITDA.

9 3

7 0

6 8

6 2

6 4

9 8

1 2 8

1 0 8

0

20

40

60

80

100

120

140

2003 2004 2005 2006

€ M i l l i o n

Capex Free Cash Flow

14%

10%10%

9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2003 2004 2005 2006

C a p e x

/ S a l e s

Coleago Consulting



One Base Case Forecast

The “as is” case

Coleago Consulting



Project Alpine 30

Total market and market share

• Penetration increasing to 125%, including data

cards• Tele2 MVNO customer modelled as competing

operator, wholesale revenue accrued to One

• One increases to 23% share of the base withown customers.

• Tele2 assumed to exit the market completely byend ‟08.

• Drei 16% of gross adds, reaching 14% of baseby 2016.

Mobile Penetration

111%116% 120% 122% 123% 124% 124% 124% 125% 125% 125%

0%

20%

40%

60%

80%

100%

120%

140%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

P e n e t r a t i o n o f P o p u l a t i o n

Market Share of Gross Additions

25% 26%24% 25% 25% 24% 24% 24% 24% 24% 23% 23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

One Mobilkom T-Mobile Tele2 Drei

Market Share of Base

19% 20% 20% 21% 22% 22% 22% 22% 22% 23% 23% 23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

One Mobilkom T-Mobile Tele2 Drei

Coleago Consulting



Project Alpine 31

One customers and churn

• One‟s share of base gradually increases towards

its share of gross adds.• Churn assumed to decrease by 2 % points

during 2007/2008 as a result of a favourable mix

shift towards postpaid and further reductions to

23% by 2016.

• Churn settling in at 31% for prepaid and 17% for

postpaid.

Churn 2002 2003 2004 2005 2006

T-Mobile Monthly Churn Average 1.7% 1.8% 1.8% 1.9% 1.9%Postpaid 1.3% 1.4% 1.3% 1.0% 1.0%

Mobilkom Annual Churn Average 17.0% 16.1% 17.0% 17.2% 17.2%Postpaid 10.2% 10.8% 11.9% 10.9% 10.9%Prepaid 24.2% 22.0% 22.8% 25.2% 25.2%

One Group Annual Churn

Average n/a n/a 24.6% 26.5% 27.6%

One Customers '000

2,0192,125 2,174 2,200 2,267 2,310

2,339 2,382 2,412 2,433 2,452

0

500

1,000

1,500

2,000

2,500

3,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Prepaid Postpaid Wholesale Machines

Churn & Disconnections

4 5 1

4 7 6

4 9 2 5

3 0

5 4 9

5 5 1

5 5 3

5 4 2

5 3 8

5 4 2

5 4 5

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

D i s c o n n e c t i o n s

0%

5%

10%

15%

20%

25%

30%

One Disconnections '000 One Churn % of av . Base

Historic Reported Churn Rates

Coleago Consulting



Project Alpine 32

ARPU

• ARPU declines, slightly driven by lower voice per minute rates and lower interconnect rates.

• Beyond 2009 the decline in voice ARPU offsetby:

– Price elasticity of demand, minutes of useincrease substantially.

– Non-voice, which increases to 30% by2016, with non-SMS data ARPU accountingfor 19%.

T-Mobile ARPU € 2003 2004 2005 2006

Prepaid 12 11 11 10Postpaid 53 59 58 49Blended 31 34 34 33

Mobilkom ARPU € 2003 2004 2005 2006

Prepaid 11 11 11 10Postpaid 60 60 57 52Blended 37 37 37 34

One ARPU € 2003 2004 2005 2006

Prepaid n/a 12 11 11Postpaid n/a 50 50 47Blended n/a 34 33 33


29.3

26.026.2

25.9 25.726.5 27.1 27.7 28.2 28.5 28.8 29.0

0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Subscription & Voice SMS Other Data Content, VAS, Roaming Interconnect

% of ARPU Non-SMS Data

2%

6%

9%

11%12%

14%15%

16%17%

18%19% 19%

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Historic Reported ARPU

Coleago Consulting



Project Alpine 33

Voice tariff 2006-2016 CAGR minus 5.1%, and data tariff CAGR minus 18.6%

• Unlimited tariffs are increasingly common,depressing the effective per minute prices.

• Drei exerts price pressure in prepaid andpostpaid, but Mobilkom first introduced anunlimited tariff.

– For prepaid low users One‟s per minuteprice is 40 to 20 cents compared to Dreiwith 20 cents

– For high users One lowest postpaid minuteis effectively zero cents for calls to fixed and

4 cent for all to other mobiles. – Billing interval is generally 60 seconds for

the 1st minute and 30 seconds thereafter.

• Average per Mbyte tariffs are projected todecline sharply.

– Austria had historically low GPRS pricesand differentiated by APN, i.e. WAP vs.WEB.

– An increasing proportion of traffic isgenerated by mobile broadband which ispriced low.

– Packet data tariffs for low volume handsettraffic (WAP) will decline sharply.

Outbound Minute Voice Tariff (Exl. Roaming) - Nominal

0.16

0.12

0.090.08 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€

Average Packet Data Tariff per Mbyte - Nominal

0.74

0.25

0.160.13 0.12 0.11 0.10 0.10 0.10 0.09 0.09

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€

Coleago Consulting



Project Alpine 34

Interconnect rates are regulated to decline further, One termination rate 2006-2016

CAGR minus 6.5%

• Mobile termination rates for the period 2004 to

2006 have been regulated as cost orientedaccording to the LRAIC of a single hypothetical

efficient operator, Mobilkom, to reach 6.79 cents

in 2007.

• The regulator proposes that the figure of 6.79

cents is to be reached on a Gliding Path Model

by all operators by 2008. However, as part of the

current consultation, this is being opposed by

One, who is seeking a higher (asymmetric) MTR.

• Currently there are several ongoing proceedings

in order to recalculate the LRAIC-level and

therefore also the Gliding Path Model for the

upcoming years.

• In the model we have assumed that based on

the strength of their argument, One will retain a

slightly higher termination rate for a longer period.

• Fixed termination rates are already low and

further declines have not been factored in.

Mobile Termination Rates

€ Cent

to

31.10.05

to

31.12.05

to

30.6.06

to

31.12.06

One 13.80 13.28 12.28 11.28Mobilkom 10.86 10.34 9.34 8.34T-Mobile 13.18 12.66 11.66 10.66tele.ring 13.80 13.80 12.80 11.80

Hutchison 19.62 19.62 17.79 15.95

Telekom Austria Fixed Termination € Cent Peak Off-Peak

Local 0.820 0.480Single Transit 1.280 0.710Double Transit 2.250 0.870

Average per Minute Interconnect Revenue - Nominal

0.14

0.12

0.10

0.080.07 0.07 0.07 0.06 0.06 0.06 0.05 0.05

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€

Coleago Consulting



Project Alpine 35

Aggressive data pricing will drive mobile broadband adoption

One HSDPA Data Card Starter Surfer XL Unlimit.

Monthly Fee 10.00 28.00 40.00 75.00 Incl MB for WEB 100 500 1,024 10,000 Implied Price per Mbyte 0.250 0.160 0.112 0.025 Outside Bundle Mbyte WEB 0.400 0.200 0.200 0.200 Outs. Bund. per 10 kb WAP 0.200 0.200 0.200 0.200

Drei HSDPA Datacard S M L XXL PrepaidEuro / Month 3.50 9.50 14.50 24.50 - Mbytes Included 30 250 500 3,000 - Implied Euro / Mbyte 0.117 0.038 0.029 0.008 -

Outside Bundle Mbyte 0.400 0.300 0.100 0.100 0.80 Unused Mbyte Carry Over no no no no n/aBilling Interval kbytes 51.2 51.2 51.2 51.2 51.2

• All Austrian operators have an

aggressive mobile broadband strategy

with extremely low HSDPA data card

offerings

• One‟s largest data bundle offers an

implied per Mbyte price of 2.5 cents

• Drei‟s largest bundle has a super low

implied per Mbyte price of 0.8 cents

• Low user WAP pricing per Mbyte isconsiderably higher, e.g. € 20 / Mbyte

for One

T-Mobile Mobil Internet Small Medium XL

Euro / Month 17.00 35.00 45.00 Mbytes Included 250 800 1,500 Implied Euro / Mbyte 0.068 0.044 0.030 Outside Bundle Mbyte 0.500 0.200 0.200 Unused Mbyte Carry Over no no no

Billing Interval kbytes 50 50 50

Coleago Consulting



Project Alpine 36

Trends in voice minutes and data traffic

• MOUs are increasing and are projected to

increase further driven by a decline in tariffs and a

significant price elasticity effect.

– Prepaid price elasticity coefficient -0.80,

declining to -0.54

– Postpaid assumed at -0.79, declining to -0.45

• The dramatic decline in per Mbyte prices driven by

relatively low priced data card internet traffic.

Mobilkom Chargeable MOUs

104109

119 123 124135

156

0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006

M i n u t e s / C u s t o m e r / M o n t

Minutes of Use per Customer per Month

1 0 3

1 1 5

1 4 8 1

6 7

1 7 3

1 7 8

1 8 2

1 8 7

1 9 2

1 9 6

2 0 1

2 0 5

5 5 5

6

5 9

6 7 7

1 8 1 8 7 9

4 9 9

1

0 3

1 0 6

1 1 0

158171

207

234244

259269

281291 299 307 315

0

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

I n & O u t M i n u t e s

Outbound Minutes Inbound Minutes

Packet Data Traffic per Customer per Month

2

8

1521

28

34

40

4548

51 53

0

10

20

30

40

50

60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

M b y

t e s p e r M o n t h

Historic Reported MOUs

Coleago Consulting



Project Alpine 37

Revenue CAGR 3.2%

• The net effect of the assumptions results in a

steady increase in revenue (CAGR 3.2%).• Revenue from customers remain the most

important element with wholesale revenues and

interconnect revenues both declining

• From a segment perspective, revenues related to

postpaid customer are of overwhelming

importance.

Revenue

668 651 666 683714

760 788

815 841 863 880 893

0

100

200

300

400

500

600

700

800

900

1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€ M i l l i o n

Revenue by Source

0%

10%

20%30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

From Cus tomer s Inter con. & V isitor Roam. 3r d Par ty & Telematic sWholesale Equipment Other Revenue

Revenue by Source

1 6 %

1 8 %

1 7 %

1 7 %

1 8 %

1 7 %

1 7 %

1 6 %

1 6 %

1 6 %

1 6 %

1 5 %

7 0 %

6 9 % 7

4 %

7 8 %

7 9 %

8 0 %

8 1 %

8 1 %

8 1 %

8 2 %

8 2 %

8 2 %

1 4 %

1 3 %

8 %

5 %

4 %

3 %

3 %

3 %

3 %

3 %

3 %

3 %

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Prepaid Related Postpaid Related From Other Sources

Coleago Consulting



Project Alpine 38

Cost of Sales: Subscriber Acqusition Costs (SACs) and Subscriber Retention Costs

(SRCs)

• Based on benchmarks from T-Mobile Austria and

Mobilkom, SACs for prepaid and postpaid havedeclined in „06, however due to an increased

share of postpaid One‟s blended SAC increased.

• SACs are expected to remain flat during the

remainder of the forecast period

• Increasing focus on customer retention leads to

higher SRCs.

T-Mobile SAC € 2003 2004 2005 2006

Prepaid 41 47 37 14Postpaid 211 233 245 221 Average 121 133 141 128

Mobilkom SAC € 2003 2004 2005 2006

Average 92 110 107 78

One SAC € 2003 2004 2005 2006

Prepaid n/a 49 36 18Postpaid n/a 284 210 196 Average n/a 177 149 172

Subscriber Acquisition Cost (Nominal) & Payback

8 2 8

7

6 4 6

6 6 6

6 6

6 5

6 6

6 6

6 6

6 6

0

10

20

30

40

50

60

70

80

90

100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€

0.0

1.0

2.0

3.0

4.0

5.0

6.0

M o n t h s t o P a y b a c k

Average SAC Payback - Months

SACs & SRCs % of ARPU Revenue

0%

2%

4%

6%

8%

10%

12%

14%

16%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SRC SAC SAC & SRC

Historic Reported SACs

Coleago Consulting



Project Alpine 39

From revenue to gross margin

• The net effect of the assumptions are a slight

increase in revenue during the forecast periodand also increasing cost of sales.

– Cost of sales are defined as costs that vary

directly with customer activity, such as

interconnect cost or SACs

• The largest cost of sales item is interconnect,

accounting for around 18-16% of cost of sales,

following by SACs and SRCs.

• The margin on off-net minutes narrows, but an

increasing number of incoming minutes and flat

SACs results in a modest increase in gross

margin.

• Overall cost of sales increase slower than

revenue and the gross margin settles at 58-59%.

• Within the overall cost of sales trend certain costsare becoming more important, notably

interconnect and SRCs.

Cost of Sales & Gross Margin

( 2 7 0 )

( 2 9 0 )

( 2 9 8 )

( 3 1 0 )

( 3 2 2 )

( 3 3 2 )

( 3 4 4 )

( 3 5 5 )

( 3 6 1 )

( 3 6 6 )

( 3 6 9 )

59%57% 56% 57% 58% 58% 58% 58% 58% 58% 59%

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

02006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€ M i l l i o n

0%

10%

20%

30%

40%

50%

60%

70%

Total Cost of Sales Gross Mar in

Coleago Consulting



Project Alpine 40

From gross margin to EBITDA

• Opex assumptions are in line with the

management case.• Operating expenses increase throughout the

forecast period

• Increased competition and underperformance by

One results in margins falling to 20% in 2009

before recovering to settle at 24% by the end of

the forecast period.

• EBITDA 2006-2016 CAGR plus 2.1%.

Cost of Sales , Operating Expenses, EBITDA

( 2 5 8 )

( 2 7 0 )

( 2 9 0 )

( 2 9 8 )

( 3 1 0 )

( 3 2 2 )

( 3 3 2 )

( 3 4 4 )

( 3 5 5 )

( 3 6 1 )

( 3 6 6 )

( 3 6 9 ) ( 2

0 5 )

( 2 0 8 )

( 2 2 7 )

( 2 4 4 )

( 2 6 2 )

( 2 7 3 )

( 2 7 8 )

( 2 8 9 )

( 2 9 4 )

( 2 9 9 )

( 3 0 4 )

( 3 1 0 )

(800)

(700)

(600)

(500)

(400)

(300)

(200)

(100)

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€ M i l l i o n

0%

5%

10%

15%

20%

25%

30%

35%

Total Cost of Sales Operating Expenses EBITDA Margin

EBITDA

2 0 4

1 7 3

1 4 9

1 4 1

1 4 2 1

6 5

1 7 9

1 8 2

1 9 2 2 0

3 2 1

0

2 1

3

31%

27%

22%21% 20%

22% 23% 22% 23% 23% 24% 24%

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€

M i l l i o n

0%

5%

10%

15%

20%

25%

30%

35%

EBITDA EBITDA Margin

Coleago Consulting



Project Alpine 41

Capital expenditure

• There is a sharp increased in capex in 2007 and

2008, mainly due to UMTS / HSDPA investment.• Long term capex / sales 10%.

• T-Mobile is currently spending 13% of revenue on

capex, whereas the figure for Mobilkom, the

market leader, is only 8%.

Historic Reported Capex / Sales

2003 2004 2005 2006

T-Mobile 11% 15% 16% 13%Mobilkom 13% 6% 7% 8%One n/a 10% 10% 9%

Capital Expenditure ( Cash Flow)

6 2

1 4 8

1 1 2

8 4

8 6

8 3

8 6

8 8

9 1

9 2

9 3

8%

20%

15%

11% 11%10% 10% 10% 10% 10% 10%

0

20

40

60

80

100

120

140

160

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€ M i l l i o n

0%

5%

10%

15%

20%

25%

C a p e x / S a l e s

Capex (Cash Flow ) Capex / Sales

EBITDA minus Capex

112

2

29

58

79

95 96103

112119 120

0

20

40

60

80

100

120

140

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€ M i l l i o n

Coleago Consulting



One Base Case Projected Financial Statements

Coleago Consulting



Project Alpine 43


Profit & Loss Account - Nominal € Mi llion

Revenue

Net Connection Fees 6.8 9.0 9.3 9.7 10.1 9.6 9.4 9.2 9.4 9.2 9.2 9.3

Subscription & Voice 312.2 287.9 310.2 332.2 352.3 370.0 383.4 392.0 401.3 410.6 417.9 423.7SMS 29.9 26.6 28.4 28.5 26.8 24.8 22.6 20.5 18.8 17.9 17.1 16.2

Other Data 13.2 30.9 50.6 66.0 79.9 97.1 110.7 122.9 135.4 146.7 156.0 162.9

Content, VAS, Roaming 53.4 54.6 61.5 62.9 65.3 67.1 68.1 70.5 72.9 75.3 77.2 78.9

From Customers 415.5 408.8 460.1 499.2 534.4 568.6 594.2 615.2 637.8 659.7 677.4 690.9Interconnect 152.2 149.2 142.7 138.0 137.5 153.4 159.2 165.2 167.4 167.6 166.3 164.4

Visitor Roaming 36.3 34.5 28.7 17.8 18.0 16.6 14.3 15.0 15.2 15.7 16.2 16.7

Intercon. & Visitor Roam. 188.5 183.7 171.4 155.8 155.5 170.0 173.5 180.2 182.6 183.2 182.5 181.1

3rd Party 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Telematics 0.0 0.0 0.0 0.1 0.2 0.4 0.5 0.6 0.7 0.8 0.9 0.9Wholesale 5.1 5.5 7.3 5.9 2.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Equipment 12.3 13.2 13.9 16.6 16.6 16.1 16.0 16.2 16.6 16.3 16.5 16.7

Other Revenue 46.1 39.4 13.8 5.2 4.9 4.5 4.0 3.0 3.0 3.1 3.1 3.2

Total From Other 63.5 58.1 35.0 27.6 23.8 20.9 20.6 19.8 20.3 20.2 20.4 20.8

Revenue Discounts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Revenue 667.6 650.6 666.4 682.6 713.6 759.5 788.2 815.3 840.7 863.2 880.3 892.7

Cost of Sales

Subscriber Acquisition Cost 8.0 0.3 0.7 (0.2) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)Interconnect (113.8) (124.1) (140.8) (148.5) (150.4) (158.3) (166.2) (175.3) (180.6) (183.5) (184.7) (185.0)

Roaming (24.7) (21.9) (21.2) (23.5) (25.6) (27.4) (26.7) (27.6) (28.4) (29.1) (29.7) (30.2)

Retail Commissions (5.3) (5.9) (5.6) (5.7) (6.1) (6.4) (6.5) (6.6) (6.8) (7.0) (7.1) (7.2)

Subscriber Retention Costs (10.1) (18.8) (19.3) (22.5) (24.9) (27.6) (29.9) (31.9) (34.0) (36.4) (38.1) (39.6)

Content Cost (8.1) (7.0) (8.1) (9.2) (10.3) (11.3) (12.3) (12.8) (13.3) (13.8) (14.3) (14.7)Billing & Collection (1.0) (1.0) (1.2) (1.3) (1.4) (1.5) (1.6) (1.7) (1.7) (1.8) (1.8) (1.9)

Bad Debt (4.7) (5.8) (4.1) (4.5) (4.8) (5.1) (5.4) (5.6) (5.8) (6.0) (6.1) (6.3)

Prepaid Voucher Cost (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

Other Cost of Sales (11.3) 0.1 (0.9) (0.5) (0.5) (0.5) (0.5) (0.5) (0.5) (0.5) (0.5) (0.5)Host Network Cost 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Customer Equipment Cost (86.7) (85.7) (89.2) (82.2) (86.0) (83.8) (82.8) (82.5) (83.7) (82.8) (83.3) (84.0)

Sales Related Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Cost of Sales (257.7) (269.8) (289.7) (298.1) (310.1) (322.1) (331.8) (344.4) (354.9) (361.1) (365.8) (369.3)

Gross Margin 409.8 380.8 376.7 384.5 403.5 437.4 456.4 470.9 485.9 502.1 514.5 523.4Gross Margin % 61% 59% 57% 56% 57% 58% 58% 58% 58% 58% 58% 59%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Coleago Consulting



Project Alpine 44


Profit & Loss Account - Nominal € Million

Operating Expenses

Payroll & Related Costs (55.4) (51.4) (58.1) (61.6) (64.4) (66.5) (67.8) (68.9) (70.0) (71.1) (72.2) (73.4)Network Operations (76.3) (81.0) (87.5) (98.2) (110.9) (119.2) (122.8) (131.9) (135.0) (137.6) (139.8) (143.7)

Spectrum Fees & Similar (5.2) (5.2) (5.3) (5.3) (5.3) (5.3) (5.3) (5.3) (5.3) (5.3) (5.3) (5.3)IT Cost (12.0) (12.2) (12.4) (12.6) (12.8) (13.0) (13.3) (13.5) (13.7) (13.9) (14.1) (14.3)

Marketing Costs (38.5) (40.7) (41.8) (43.4) (45.5) (45.7) (45.5) (45.9) (46.6) (47.4) (48.1) (48.9)Sales & Distribution Costs (1.4) (2.4) (2.9) (2.7) (2.7) (2.7) (2.8) (2.9) (3.0) (3.0) (3.1) (3.1)

Billing & Customer Care Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Occupancy Costs (2.0) (2.1) (2.3) (2.4) (2.5) (2.5) (2.6) (2.6) (2.7) (2.7) (2.7) (2.8)

General Office Expenses (5.7) (3.5) (7.4) (7.8) (7.8) (7.8) (7.8) (7.9) (8.0) (8.1) (8.3) (8.4)Travel, Vehicles & Transport (2.7) (2.4) (2.9) (2.9) (2.9) (2.9) (2.9) (2.9) (2.9) (3.0) (3.0) (3.0)

Fees, Dues, Subscriptions (3.6) (3.8) (4.7) (4.7) (4.8) (4.9) (5.0) (5.1) (5.1) (5.2) (5.3) (5.4)Non-Income Taxes (2.6) (2.8) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1) (2.1)

Operating Expenses (205.4) (207.6) (227.2) (243.6) (261.7) (272.6) (277.8) (288.8) (294.3) (299.3) (304.0) (310.4)

Total Expenses (463.1) (477.4) (516.9) (541.7) (571.7) (594.7) (609.6) (633.3) (649.1) (660.4) (669.8) (679.8)

EBITDA 204.5 173.2 149.5 140.9 141.8 164.8 178.6 182.0 191.6 202.7 210.5 212.9EBITDA Margin 30.6% 26.6% 22.4% 20.6% 19.9% 21.7% 22.7% 22.3% 22.8% 23.5% 23.9% 23.9%

Depreciation (114.7) (117.7) (108.4) (105.4) (95.7) (107.4) (119.0) (127.1) (114.6) (82.3) (86.0) (88.7) Amortisation (42.3) (25.9) (28.4) (30.3) (31.9) (30.4) (24.4) (24.0) (23.7) (23.4) (23.4) (23.4)

Depreciation & Amortisation (157.0) (143.6) (136.8) (135.7) (127.6) (137.8) (143.4) (151.1) (138.3) (105.7) (109.5) (112.1)

Exchange Rate Gain (Loss) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Exceptional Items 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

EBIT 47.5 29.6 12.7 5.2 14.3 27.0 35.3 31.0 53.3 97.1 101.0 100.8EBIT Margin 7.1% 4.6% 1.9% 0.8% 2.0% 3.6% 4.5% 3.8% 6.3% 11.2% 11.5% 11.3%

Interest Income 3.1 3.0 2.0 0.8 0.1 0.1 0.1 0.1 0.1 2.1 4.7 5.7Interest Expenses (30.3) (25.9) (24.3) (23.7) (22.8) (21.1) (18.4) (15.5) (12.2) (10.4) (10.4) (10.4)Financing Fees & Bank Charges (2.3) (1.7) (1.7) (1.7) (1.7) (1.7) (1.7) (1.7) (1.7) (1.7) (1.7) (1.7)

Profit (Loss) Before Tax 18.0 5.0 (11.4) (19.5) (10.2) 4.3 15.2 13.8 39.5 87.1 93.6 94.4

Income Taxes (4.9) (1.6) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Net Profit (Loss) After Tax 13.1 3.3 (11.4) (19.5) (10.2) 4.3 15.2 13.8 39.5 87.1 93.6 94.4

Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.6) (84.2) (90.7) (91.5)Retained Profit (Loss) 13.1 3.3 (11.4) (19.5) (10.2) 4.3 15.2 13.8 38.9 2.9 2.9 2.9

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Coleago Consulting

D 05 D 06 D 07 D 08 D 09 D 10 D 11 D 12 D 13 D 14 D 15 D 16



Project Alpine 45


Balance Sheet - Nominal € Million

Fixed Assets

Tangible Assets 545.9 482.8 506.8 506.4 487.3 460.0 418.4 371.6 339.4 341.7 341.2 339.3Intangible Assets 261.4 242.5 229.4 206.4 181.7 157.4 139.0 121.0 103.3 85.9 68.5 51.1

Deferred Tax Asset 18.6 16.9 16.9 16.9 16.9 16.9 16.9 16.9 16.9 16.9 16.9 16.9Fixed Assets 825.8 742.2 753.2 729.7 685.9 634.3 574.3 509.6 459.7 444.5 426.7 407.3

Current Assets

Stocks 17.2 16.0 11.9 11.6 15.1 15.3 14.5 14.1 14.0 14.3 14.0 14.1Trade Debtors 103.4 99.4 102.2 104.7 109.1 104.0 108.0 111.7 115.2 118.2 120.6 122.3

Other Debtors & Assets 28.4 28.2 22.4 20.1 20.1 20.1 20.1 20.1 20.1 20.1 20.1 20.1Cash 34.9 47.6 37.0 2.0 2.0 2.0 2.0 2.0 2.6 103.0 129.8 153.0

Current Assets 183.9 191.2 173.6 138.5 146.3 141.4 144.6 148.0 151.9 255.7 284.6 309.5

Current Liabilities

Trade Creditors (84.6) (96.0) (103.6) (98.6) (104.2) (108.5) (111.3) (116.0) (119.1) (121.2) (122.9) (124.7)Capital Expenditure Creditors 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

IncomeTax Creditor (0.1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Non-Income Tax Creditor 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Dividend Creditor 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.6) (84.2) (90.7) (91.5)Other Creditors & Liabilities (144.9) (136.1) (136.1) (136.1) (136.1) (136.1) (136.1) (136.1) (136.1) (136.1) (136.1) (136.1)

Short Term Finance 0.0 0.0 0.0 (18.8) (60.2) (45.1) (40.3) (30.5) 0.0 0.0 0.0 0.0Current Liabilities (229.6) (232.1) (239.7) (253.5) (300.5) (289.8) (287.7) (282.6) (255.7) (341.5) (349.6) (352.2)

Net Current Assets (45.7) (40.8) (66.1) (114.9) (154.2) (148.3) (143.1) (134.6) (103.8) (85.8) (65.0) (42.7)

Net Assets 780.1 701.4 687.1 614.7 531.7 486.0 431.2 375.0 355.9 358.8 361.7 364.6

Debt

€ Shareholder Loans 376.2 293.2 290.3 287.4 284.5 234.5 164.5 94.5 36.5 36.5 36.5 36.5US$ Shareholder Loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

€ Long Term Debt 350.0 350.9 350.9 300.9 230.9 230.9 230.9 230.9 230.9 230.9 230.9 230.9US$ Long Term Debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Debt 726.2 644.1 641.2 588.3 515.4 465.4 395.4 325.4 267.4 267.4 267.4 267.4

Shareholder Funds

Share Capital Issued 836.2 836.2 836.2 836.2 836.2 836.2 836.2 836.2 836.2 836.2 836.2 836.2Profit & Loss Account (782.3) (778.9) (790.3) (809.8) (819.9) (815.6) (800.4) (786.6) (747.7) (744.9) (741.9) (739.0)

Shareholder Funds 53.9 57.3 45.9 26.4 16.3 20.6 35.8 49.6 88.5 91.3 94.3 97.2

Capital Employed 780.1 701.4 687.1 614.7 531.7 486.0 431.2 375.0 355.9 358.8 361.7 364.6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016



Coleago Consulting



Value Creation Options

Coleago Consulting

S iti it l i th B C i di t th t O i iti t th l i



Project Alpine 48

Sensitivity analysis on the Base Case indicates that One is sensitive to the classic

levers of value

• We ran a 10% upside and a 10%

downside across all key model

assumptions and examined the impact

on Enterprise Value against the Base

Case

• The identified key levers of value are:

– Drivers of market share

– Voice spend

– Voice tariffs

– Date spend

– Interconnection rates

– Network operating costs

Effect of Scenarios on Enterprise Value

-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50%

Penetration Ceiling

Share of Gross AddsOne Churn

Competitor Churn

Packet Data Take-Up

3G % of Gross Adds

Voice Tariff

Data Tariff s

Voice Spend

Data, Content, VAS Spend

Interconnect Revenue Rates

3rd Party Revenue

Telematics Revenue

Wholesale Customers

Other Revenue per User

Other Revenue Margin

Service Retail Commissions

Subscriber Acquisition Cost

Subscriber Retention Cost

Staff Costs

Marketing Cost

Sales & Distribution

Interconnect & Wholesale Cost

Network Operations Cost

IT Cost

Billing & Customer Care Cost

Incremental Tangible Capex

Low Case High Case

Coleago Consulting

B h ki k l f l



Project Alpine 49

Benchmarking key levers of value

• Detailed and comprehensive benchmarking of operational performance indicators was limited by the lack

of detailed management information from One and also by limited publicly available data for comparable

operators

• We were able to examine a number of areas but at a very high level

– Staff levels

– Leased line costs

– Capital expenditure

• A more comprehensive benchmarking study would be feasible during a more in-depth analysis with accessto management information

Coleago Consulting

The ability to create value through additional outsourcing is limited



Project Alpine 50

The ability to create value through additional outsourcing is limited

• In February 2002 and again in May 2004 One

announced extensive measures to control costs,

notably by reducing headcount

– Distribution and customer care have been

specifically excluded

• In 2003, One outsourced the radio network

operation to Alcatel Austria

• This lead to a significant drop in headcount from

1,322 end 2003 to 857 end 2005, reducing staff

costs by € 37.3 million

• On the 1st of January 2006, One outsourced the

operation of the IT infrastructure to Siemens,

transferring 28 employees to Siemens

• One appears to have outsourced most material

elements of its operations that it believes do not

confer competitive advantage

1 , 3

2 2

9 0 0

8 5 7

8 7 0

1,136

1,670

1,9422,088

0

200

400

600

800

1,000

1,200

1,400

2003 2004 2005 2006

F T E ' 0 0

0

500

1,000

1,500

2,000

2,500

EOP FTEs ONE Group Customers per Staff EOP

Presonnel Costs

90.5

69.9

53.2 51.2

0

10

20

30

40

50

60

70

80

90

100

2003 2004 2005 2006

€ M i l l i o n

Coleago Consulting

Evaluation of Options



Project Alpine 51

Evaluation of Options

# Description Modelling EV €

million

Incre-

mental

Value €

million

Proportion

of Base

Case

Comment

0 Base case 1,064 0 0.0% Stand alone

case

1 MobileCo

style

challenger

strategy

Prepaid SACs - €5 in '08, wholesale SACs €4.3 instead of

€28; prepaid tariffs -5% in '08, postpaid -5% in '09; 15%

wholesale tariff discount; market share +3% points from

08, +2% from 2011; additional customers are mostly

prepaid wholeale; in '09 One churn -0.5% pts,

competitors +0.5% points; marketing spend - €10 mn;

headcount - 100 FTEs in '08 and €3 million redundancycharge

1, 650 586 55.1% Demonstrated

in Germany

2 European no

roaming fees

+1.5% point share of gross adds, -5% visitor roaming

revenue

1,257 193 18.2% Depends on

group

3 Optimise

transmission

reduce transmission costs by 10% from 2008, €5 million

capex in 2008

1,141 77 7.2% Further work

required

4 Synergies Insufficient information Further work

required

5 Sell tower

assets

release €70 million of network capex in 2008, eliminating

site sharing revenue, network opex up by €3.5 million

1,064 0 0.0% no value

All Scenarios excluding double counting of effects 1,886 822 77.3%

Coleago Consulting

Option 1: Challenger strategy



Project Alpine 52

Option 1: Challenger strategy

• MobileCo encouraged wholesale partners onto the network and launched value for money fixed mobilesubstitution tariffs plans.

• MobileCo reduced SACs and SRCs (-68% for prepaid and – 29% for postpaid) and gave customers

additional value in terms of lower tariffs. This sits well with a fixed mobile substitution scenario since itreduces the mobile premium.

• The effect on MobileCo market share during the first three months of 2006 was positive:

– Gain in market share of service revenue: 1.1% points

– Gain in market share of revenue: 0.3% points

– Gain in market share of base: 1.5% point

• Demand was highly price elastic: – Prepaid tariffs declined by 33.3% but prepaid ARPU remained constant. In terms of the Coleago

model this implies a price elasticity coefficient of -1.

– Postpaid tariffs declined by 34.7% but postpaid ARPU declined by only 8.6%. In terms of the Coleagomodel this implies a price elasticity coefficient of -0.72.

• In Austria voice tariffs are around 15% lower than in France and MOUs are around 50% higher. Thereforethe price elasticity is likely to be less pronounced, and the pull element of the Challenger strategy is likelyto be less effective.

• However, additional elements of the Challenger Strategy are likely to yield benefits in addition to morefocused sales and marketing and customer segmentation as well as reductions in the cost base and capitalexpenditure plans

Coleago Consulting

Modelling of the Challenger Strategy for One



Project Alpine 53

Modelling of the Challenger Strategy for One

• Multi Channel Strategy: Accelerate sales through distribution partners using their brand (leverages

existing dedicated IN); share of gross adds increased 2% from 2008, all additional customers are prepaid

(postpaid base unchanged), these additions have a wholesale SAC of €4.3; wholesale partners receive a

20% discount on the prepaid tariff; resulting saving in marketing spend - €2 million.

• Reduce Cost Base and Focus Strategy: a) Instead of being all things to all men, focus on mass market

with fewer products. Cut in direct sales force, less product & development operations, less communication

spend because less product advertising. b) FTE cuts as a result of cutting fat, focus on mass market

(sharply reduced direct sales force), less product development, some functions taken on by MobileCo e.g.

major technical planning, procurement.

– The effect: Less 189 FTEs (see detail on separate worksheet) with €30k redundancy charge per FTE,50% of the impact in '08 and 50% in '09; outsource remaining customer care 171 FTEs with 7%

saving on employment costs; minus €2 million marketing spend.

• Roaming Synergy: One receives MobileCo group roaming traffic, bringing MO minutes to 61.7 million and

corresponding MT uplift.

• Reduce UMTS Investment: Reduced Network Capex - aligned with Challenger Case IIb to provide 91%

data coverage with possible penalty risk; reduce marketing spend for UMTS - €2 million. 50% slower

growth of HUI broadband take-up in 2008 and 2009, thereafter back to normal. Opex savings on slowdown of roll-out - aligned with Challenger Case IIb network opex forecast



Coleago Consulting

Option 3: Optimisation of transmission network



Project Alpine 55

Option 3: Optimisation of transmission network

• It may be possible to reduce leased line costs in the transmission network using WiMax.

• Due to lack of information at this stage, we cannot place a value on this with any degree of certainty.

• We have modelled this by reducing transmission costs by 10% from 2008 onwards and adding a one off €5

million of network capex in 2008.

Coleago Consulting

Option 4: Synergies with MobileCo



Project Alpine 56

Option 4: Synergies with MobileCo

• The size of the Austrian market with a population of 8.2 million is 34% smaller than that of Bavaria (12.5

million pops) and in the medium to long term One could be run as division of MobileCo.

• The top management of MobileCo could also be the top management of One.

• Departments could be merged, for example technical operations, with One‟s operation being akin to a

regional office.

• Some functions, such as pricing and distribution, legal, HR, regulatory would remain specific to Austria.

• We have not modelled this scenario since further investigation is required.

• In the longer term the network could be merged, notably if the network moves to an all IP network. Thiscould produce further savings in the longer term.

• There may be other synergies, or example lower purchase cost of network equipment, handsets, SIMs etc.

Coleago Consulting

Option 5: Selling towers - rejected



Project Alpine 57

p g j

• One could sell its tower assets and release some value in 2008.

• Lehman Brothers, 10 Jan 2007• We calculate a gross value of EUR 38bn for the tower assets, which are owned by mobile operators across

the core European markets. We estimate that the potential spin-off of these assets based on anEV/EBITDA multiple of 10x could realise a value of around EUR 13bn, equivalent to 5% valuation upsidefor the sector. This is below the valuation suggested for the potential demerger of the tower business of National Grid (around 12x EBITDA) and below the 20x multiple that tower businesses trade on in the US(albeit for much higher growth, larger sites and longer lease lengths). We believe there is more of avaluation than a cost savings opportunity from potential tower spin-offs in Europe. Renting back access tothe tower assets will incur an operating expense, and there are also likely to be higher commercial risks

compared to network outsourcing or sharing. However, the basic characteristics of the industry should befairly similar to those of the US, with the obvious difference that in Europe the towers are very much still owned by the operators. Hence, maximisation of tower yields is likely to be far behind the US. As a result,we argue that this should lead to some potential for yield enhancement over time. In our view, theseindustry characteristics are likely to appeal strongly to private-equity and infrastructure funds.

• MobileCo investigated the sale of its mobile tower assets but rejected the option because the price thatcould be obtained was not good enough and would have reduced MobileCo‟s market value.

• In the case of one we have modelled this scenario by releasing €70 million of network capex in 2008,

eliminating the site sharing revenue and increasing network opex by €3.5 million.

Coleago Consulting

Option 6: Upgrade path for core network



Project Alpine 58

p pg p

• If one still runs GSM Release 99, an upgrade to 4 would be required.

– Outsource core? – Merge with MobileCo?

• Release 4 brings IMS capability and is a major step to an all IP network / NGM.

• Due to lack of information at this stage, we cannot place a value on this.

Coleago Consulting

Option 7: Outsource customer service - rejected



Project Alpine 59

• Option rejected

– One focuses on customer service and distribution, this would a major change of strategy – Customer service appears to be a source of competitive advantage, leading to low churn

– Unlike, French, English or Spanish speaking European countries, there are no low cost German

speaking countries

Coleago Consulting



Appendices

Coleago Consulting



Appendices

Austrian Market Data



Coleago Consulting

Austrian Telecom Market Value



Project Alpine 63

• The sharp decline in fixed voice telephony revenue is largely offset by broadband and mobile. However,

the overall telecoms market value is starting to show signs of decline.

Fixed Lines & Broadband Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Fixed Lines '000 3,048 3,021 3,001 2,976 2,964 2,949 2,920

Broadband Connections '000 769 835 893 964 1,048 1,118 1,171Fixed Lines per Capita 37.29% 36.89% 36.58% 36.22% 36.00% 35.69% 35.23%Broadband Con. Per Capita 9.41% 10.20% 10.89% 11.73% 12.73% 13.54% 14.13%

End-User Market € Million Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Fixed Line Rental 365.0 357.7 345.2 336.4 337.7 341.1 324.1Fixed Call Charges 209.5 202.8 191.7 183.3 186.9 190.3 175.7Broadband 95.4 100.0 104.3 110.9 113.4 125.6 126.6Mobile Line Rental & Call Charges 730.8 760.9 744.8 776.5 771.3 774.8 756.5Total 1,400.7 1,421.5 1,386.0 1,407.1 1,409.4 1,431.9 1,382.9

Change p.a. Based on Quarters Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Fixed Line Rental -7.5% -4.6% -6.1%Fixed Call Charges -10.8% -6.2% -8.3%Broadband 18.9% 25.6% 21.4%Mobile Line Rental & Call Charges 5.5% 1.8% 1.6%

Total 0.6% 0.7% -0.2%

Coleago Consulting

One Consolidated Accounts – Expenses - € Million



Project Alpine 64

Opex 31-Dec-03 31-Dec-04 31-Dec-05 31-Dec-03 31-Dec-04 31-Dec-05

Interconnect, Roaming, Leased Lines etc (158.762) (192.604) (192.848) 33.1% 37.9% 39.1%Handsets, SIMs, Etc (104.659) (107.982) (110.822) 21.8% 21.3% 22.5%Dealer Commission (13.408) (16.800) (11.514) 2.8% 3.3% 2.3%

Subtotal Mostly Cost of Sales (276.829) (317.386) (315.184) 57.6% 62.5% 64.0%Personnel (80.583) (62.228) (46.796) 16.8% 12.3% 9.5%Recruitment (0.266) (0.109) (0.168) 0.1% 0.0% 0.0%Training (2.083) (1.073) (0.988) 0.4% 0.2% 0.2%Temporary Staff (1.944) (1.091) (0.833) 0.4% 0.2% 0.2%

Subtotal Employment (84.876) (64.501) (48.785) 17.7% 12.7% 9.9%Support Network Operations (25.207) (23.604) (25.671) 5.2% 4.7% 5.2%Network Maintenance & Operation (6.344) (23.034) (23.448) 1.3% 4.5% 4.8%Energy for Network (4.183) (5.022) (8.101) 0.9% 1.0% 1.6%

Subtotal Network Operations (35.734) (51.660) (57.220) 7.4% 10.2% 11.6%

Advertising, Market Research, Promotion (40.600) (38.493) (40.303) 8.5% 7.6% 8.2%Motoring Expenses (2.478) (1.691) (1.210) 0.5% 0.3% 0.2%Travel (1.150) (0.877) (0.492) 0.2% 0.2% 0.1%Rent (5.359) (4.233) (3.900) 1.1% 0.8% 0.8%Postage & Telecoms (6.420) (5.849) (5.084) 1.3% 1.2% 1.0%Office Expenses (0.354) (0.280) (0.271) 0.1% 0.1% 0.1%Insurance (1.117) (0.931) (0.747) 0.2% 0.2% 0.2%Memberships (0.910) (1.033) (0.833) 0.2% 0.2% 0.2%Consulting Services (5.979) (5.806) (4.339) 1.2% 1.1% 0.9%Legal, Audit, etc (1.505) (1.138) (1.385) 0.3% 0.2% 0.3%

Other (9.624) (7.901) (7.068) 2.0% 1.6% 1.4%Other taxes (0.538) (0.521) (1.176) 0.1% 0.1% 0.2% Accruals (6.782) (5.277) (4.603) 1.4% 1.0% 0.9%

Subtotal Other Opex (42.216) (35.537) (31.106) 8.8% 7.0% 6.3%Total Opex (203.426) (190.191) (177.415) 42.4% 37.5% 36.0%Total Expenses (480.255) (507.577) (492.599) 100.0% 100.0% 100.0%



Coleago Consulting

Mobilkom Austria - Key Data



Project Alpine 66

Mobilkom Austria 2000 2001 2002 2003 2004 2005 2006

Market share (Subs) n/a n/a 44.4% 43.3% 41.0% 39.1% 38.7%

Penetration in Austria n/a n/a 83.1% 89.7% 98.0% 106.0% 107.7%Market Subscribers n/a 6,650.0 6,759.9 7,312.5 7,984.4 8,675.7 9,381.1

Mobilkom Subscribers

Contract 1,337.0 1,439.0 1,574.9 1,682.2 1,778.8 1,929.5 2,207.0Prepaid 1,468.0 1,411.0 1,426.5 1,481.0 1,494.8 1,462.7 1,423.5Total 2,805.0 2,850.0 3,001.4 3,163.2 3,273.6 3,392.2 3,630.5

Wireless Revenues € mn 1,357.2 1,441.7 1,513.7 1,598.7 1,674.7 1,714.9 1,726.6

Wireless Adjusted EBITDA € mn 406.4 509.4 535.3 576.6 600.3 616.7 608.1

EBITDA % 29.9% 35.3% 35.4% 36.1% 35.8% 36.0% 35.2%

Monthly ARPU €

Contract 60.7 n/a 59.8 59.9 59.8 57.2 52.0Prepaid 10.6 n/a 10.3 10.9 10.9 10.6 9.5

Average 35.9 34.1 35.8 36.9 37.1 36.5 34.4

Charged MOUs 104 109 119 123 124 135 156

Churn

Contract Churn Rate 28.0% 14.0% 10.2% 10.8% 11.9% 10.9% 9.9%Prepaid Churn Rate 17.0% 38.0% 24.2% 22.0% 22.8% 25.2% 26.5%

Average Churn Rate 23.0% 26.0% 17.0% 16.1% 17.0% 17.2% 16.8%

SAC € Million 161.8 106.4 65.6 59.0 71.6 72.6 63.4SRC € Million 50.2 58.0 48.7 58.6 72.1 71.5 72.8SACs % of Revenue 12% 7% 4% 4% 4% 4% 4%

SRCs % of Revenue 4% 4% 3% 4% 4% 4% 4%

Mobile Data

Data % of Airtime Revenues 8.7% 9.7% 10.2% 11.4% 12.6% 17.4% 21.8%Number of SMS million 333.6 448.1 519.9 538.9 521.6 542.8 937.3

Data Revenue € million n/a 70.5 82.9 n/a n/a n/a n/aGPRS Users '000 0 26 223 840 1,524.1 2,294.1 n/a

MMS Users '000 n/a n/a n/a 230.0 445.2 1,029.1 1,488.0

Data Cards Sold '000 n/a n/a n/a 0 0 50 140

GPRS Users % 0.0% 0.9% 7.4% 26.6% 46.6% 67.6% n/aMMS Users % 0.0% 0.0% 0.0% 7.3% 13.6% 30.3% 41.0%

Data Cards Sold % 0.0% 0.0% 0.0% 0.0% 0.0% 1.5% 3.9%

Coleago Consulting

One Main Prepaid Tariffs



Project Alpine 67

• The lowest per minute prepaid tariff is

available with a minimum monthly

commitment of €20 with priced for €0.05per minute.

• The billing interval is 60 seconds which

means billed minutes are an estimated

27% higher than network minutes.

• Tariffs shown include 20% VAT.

One Main Prepaid Tariffs Prep. Take

One 20

cent

Prep. Take

One 5 cent

Take One

10 Prepaid

Average

Prepaid

Monthly Commitment € - 20.00 20.00 1st & 2nd Minute On Net 0.40 0.05 0.10 0.27 Minute On Net 0.20 0.05 0.10 0.15 1st & 2nd Minute to Other Mobile 0.40 0.30 0.10 0.33 Minute to Other Mobile 0.20 0.30 0.10 0.19 1st & 2nd Minute to Fixed 0.40 0.05 0.10 0.29 Minute to Fixed 0.20 0.05 0.10 0.16 SMS On Net 0.20 0.30 - 0.19 SMS to Other Mobile 0.20 0.30 0.10 0.18 MMS on Net 0.50 0.50 0.50 0.50

MMS to Other 0.50 0.50 0.50 0.50 WAP / 10 Kbyte 0.20 0.20 0.20 0.20 WAP / Mbyte 20.00 20.00 20.00 20.00 WEP / Mbyte 2.50 2.50 2.50 2.50

Weighted Average

Average Minute On Net 0.34 0.05 0.10 0.23 Average Minute Other Mobile 0.34 0.30 0.10 0.29 Average Minute Fixed 0.34 0.05 0.10 0.25 Average Minute 0.34 0.11 0.10 0.26 Average SMS 0.20 0.30 0.02 0.19 Average MMS 0.50 0.50 0.50 0.50

Coleago Consulting

One Main Postpaid Tariffs



Project Alpine 68

• Unlimited tariff from €19 / month.

• With 4zu0 tariffs bundled to other

mobile minutes cannot be used for

calls to Drei.

• Lowest on-net per minutes prices 0

€ cents.

• Lowest SMS bundles prices 1 €

cent.

• Large bundles yield significant

unused usage, lifting the effective

per minute revenue.

• The billing interval is 60 seconds for

the first minute and 30 seconds for

the second minute which means

billed minutes are an estimated

20% higher than network minutes.

• Tariffs shown include 20% VAT.

One Main Postpaid Tariffs Post-

paid

4zu0

Post-

paid

4zu0 Pro

ONE

Plus 20

ONE

Plus 30

ONE

Plus 40

ONE

Plus 75

Ave-rage

Monthly Fee 19.00 39.00 20.00 30.00 40.00 75.00 Any Network Minute Bundle - - 75 200 350 1,000

On-Net & Fixed Minute Bundle unlimited unlimited 1,000 1,000 1,000 1,000 To Other Mobile Minute Bundle 1,100 1,100 - - - - Implied Price On Net / Fixed Min. - - 0.02 0.03 0.04 0.08 Implied Price Other Mobile Min. i 0.02 0.04 0.27 0.15 0.11 0.08 Implied Price per Av. Minute in B - - 0.02 0.03 0.03 0.04

Incudes SMS On-Net Bundle 100 100 100 100 100 100 Includes Mbyte Bundle 1 1 1 1 1 1

1000 SMS to All Networks €/Mon - - 10.00 10.00 10.00 10.00 75 SMS to All Networks €/Month - - 5.00 5.00 5.00 5.00

Minute On Net - - 0.15 0.15 0.15 0.15 Minute to Other Mobile 0.25 0.09 0.15 0.15 0.15 0.15

Minute to Fixed - - 0.15 0.15 0.15 0.15 SMS On Net 0.19 0.09 0.15 0.15 0.15 0.15 SMS to Other Mobile 0.19 0.09 0.15 0.15 0.15 0.15 MMS on Net 0.50 0.50 0.50 0.50 0.50 0.50 MMS to Other 0.50 0.50 0.50 0.50 0.50 0.50

WAP / 10 Kbyte 0.15 0.15 0.15 0.15 0.15 0.15 WAP / Mbyte 15.00 15.00 15.00 15.00 15.00 15.00 WEP / Mbyte 1.50 1.50 1.50 1.50 1.50 1.50 Video Telephony Minute - On Net 0.50 0.50 0.50 0.50 0.50 0.50 Video Telephony Minute - Austria 0.80 0.80 0.80 0.80 0.80 0.80

Video Telephony Minute - Interna 2.00 2.00 2.00 2.00 2.00 2.00

Weighted Average Rates

Average Minute On Net - - 0.02 0.02 0.02 0.02 0.01 Average Minute Other Mobile 0.25 0.09 0.10 0.08 0.07 0.07 0.15 Average Minute Fixed - - 0.02 0.02 0.02 0.02 0.01

Average SMS On-Net 0.06 0.13 0.07 0.10 0.13 0.25 0.09 Average SMS to Other Mobile 0.19 0.09 0.15 0.15 0.15 0.15 0.16 Average SMS 0.09 0.12 0.08 0.11 0.14 0.23 0.10

Coleago Consulting

One Mobile Broadband HSDPA Tariff



Project Alpine 69

• Lowest per Mbyte price in bundle 2.5 € cents

• Includes 20% VAT

One HSDPA Data Card Starter Surfer XL Unlimit.Monthly Fee 10.00 28.00 40.00 75.00 Incl MB for WEB 100 500 1,024 10,000

Implied Price per Mbyte 0.250 0.160 0.112 0.025 Outside Bundle Mbyte WEB 0.400 0.200 0.200 0.200 Outs. Bund. per 10 kb WAP 0.200 0.200 0.200 0.200

Coleago Consulting

Drei Tariffs



Project Alpine 70

• Drei is pricing voice and data

aggressively.

• Data pricing is extremely with an

implied price of 0.8 € cent per Mbyte for

the largest bundle.

• Introduced no-roaming fee tariff for

broadband mobile users.

• Tariffs including 20% VAT.

Postpaid 100 200 300 600 2,000

Euro / Month 5.00 10.00 15.00 25.00 35.00

Minutes, SMS, MMS, Mbytes 100 200 300 600 2,000 Implied Price per Minute 0.05 0.05 0.05 0.04 0.02 Per Minute Outside Bundle 0.15 0.15 0.15 0.15 0.15 Billing Interval Seconds 60 60 60 60 60 Unused Minutes Carry Over no no no no no

Prepaid Basic Euro 20

Minumim Monthly Spend - 20.00 Per Minute Any Network 0.20 0.10 SMS Any Network 0.20 0.10

Billing Interval Seconds 60 60 Unused Minutes Carry Over no no

Drei HSDPA Datacard S M L XXL Prepaid

Euro / Month 3.50 9.50 14.50 24.50 - Mbytes Included 30 250 500 3,000 - Implied Euro / Mbyte 0.117 0.038 0.029 0.008 - Outside Bundle Mbyte 0.400 0.300 0.100 0.100 0.80 Unused Mbyte Carry Over no no no no n/aBilling Interval kbytes 51.2 51.2 51.2 51.2 51.2

Coleago Consulting



Appendices

International Benchmarks

Coleago Consulting

Company comparable metrics



Project Alpine 72

• 2007 EV / EBITDA – High 7.0x, Low 5.5x

– European average pure play mobile 5.3x (heavily influenced by Vodafone)

– Mobistar 6.9x

– Bouygues 6.0x

• 2007 EV / FCF – High 11.0x, Low 9.0x


– Mobistar 10.1x

– Bouygues 10.3x

• 2007 PE – High 12.0x, Low 10.0x


– Mobistar 14.6x

– Bouygues 12.3x

Coleago Consulting

Recent transaction results



Project Alpine 73

Company Date Country Buyer

mp e

Price for 100% (US$

mn)

Subs-cribers

(000)

US$/Subs-

criber

Western Wireless Jan-05 USA / Int'l Alltel 6,000 3,000 2,000Europoltan (Vodafone) Mar-03 Sweden Vodafone 2,254 1,325 1,701Libertel (Vodafone) Mar-03 Netherlands Vodafone 4,382 3,275 1,338Telecel (Vodafone) Mar-03 Portugal Vodafone 2,205 3,085 715TIM Hellas (80.87%) Apr-05 Greece Apax/Texas Pacific 1,694 2,276 744Telfort (100%) Jun-05 Netherlands KPN 1,205 2,417 499Turk Telekom (55%) Jul-05 Turkey Oger Telecom 11,909 24,000 496US Unwired Jul-05 USA Sprint Corp. 1,300 550 2,364

Meteor (100% from Alltel) Jul-05 Ireland Eircom 500 410 1,220 Amena (80%) Jul-05 Spain France Telecom 13,038 9,778 1,333Gulf Coast Wireless Aug-05 USA Sprint Corp. 288 95 3,026IWO Aug-05 USA Sprint Corp. 427 237 1,802Tele.ring (100%) Aug-05 Austria DT 1,599 968 1,652Vod Sweden (100%) Oct-05 Sweden Telenor 1,273 1,500 849O2 (100%) Oct-05 UK/Germany Telefonica 30,798 24,534 1,255Telsim Dec-05 Turkey Vodafone 4,550 9,760 466Digitel Jan-06 Venezuela Private Investor 425 1,700 250Mobitel Feb-06 Sudan MTC 2,180 1,900 1,148Xfera Jun-06 Spain Telia-Sonera 113 100 1,125

Recent Transactions

Coleago Consulting

Mobile Operator Benchmarks

2005 2006 Change 2005-2006



Project Alpine 74

g

Monthly ARPU € Prepaid Postpaid Average Prepaid Postpaid Average Prepaid Postpaid Average

Mobilkom Austria 10.6 57.2 36.5 9.5 52.0 34.4 -10% -9% -6%Mobilkom Croatia 13.7 53.1 19.9 10.7 47.8 16.7 -22% -10% -16%

Bouygues France 19.0 57.0 45.0 17.7 52.0 42.0 -7% -9% -7%SFR France 15.5 48.0 35.8 16.8 49.7 37.9 9% 3% 6%T-Mobile Austria 11.0 58.0 34.0 10.0 49.0 33.0 -9% -16% -3%T-Mobile Germany 9.0 38.0 23.0 7.0 35.0 20.0 -22% -8% -13%T-Mobile UK 14.0 61.0 28.0 13.0 66.0 29.0 -7% 8% 4%T-Mobile Czeck Republic 8.0 38.0 16.0 8.0 38.0 17.0 0% 0% 6%T-Mobile Hungary 9.0 47.0 20.0 9.0 38.0 18.0 0% -19% -10%T-Mobile Netherlands 11.0 63.0 37.0 12.0 59.0 37.0 9% -6% 0%T-Mobile Croatia 12.0 68.0 24.0 11.0 56.0 21.0 -8% -18% -13%T-Mobile Slovakia 5.0 32.0 15.0 5.0 32.0 16.0 0% 0% 7%T-Mobile Poland 6.0 30.0 14.0 6.0 27.0 13.0 0% -10% -7%

T-Mobile USA 21.0 44.0 41.0 17.0 44.0 40.0 -19% 0% -2%Vodafone Germany 8.9 39.3 23.8 7.4 37.8 21.7 -17% -4% -9%Vodafone Italy 25.0 75.7 29.3 22.6 70.7 26.7 -10% -7% -9%Vodafone Spain 15.3 57.4 35.6 15.1 53.5 35.1 -1% -7% -2%Vodafone UK 14.3 68.8 36.4 13.5 65.9 34.7 -6% -4% -4%Telefonica Spain 17.4 48.1 33.1 16.4 46.2 32.9 -6% -4% -1%Telefonica O2 UK 17.0 64.0 33.2 17.5 63.3 33.3 3% -1% 0%Telefonica O2 Germany 10.0 41.0 27.7 8.8 39.5 24.3 -13% -4% -13%Orange France 14.9 48.1 35.3 14.0 46.2 34.2 -6% -4% -3%Orange UK 13.4 69.4 32.4 13.5 68.7 31.5 0% -1% -3%Orange Belgium 38.0 38.7 2%

Orange Spain 10.9 40.1 25.1 9.8 41.3 25.1 -10% 3% 0%Orange Poland 7.8 26.8 15.9 7.0 25.8 14.5 -11% -4% -9%KPN E-Plus Germany 6.0 35.0 21.0 6.0 32.0 19.0 0% -9% -10%KPN Mobile Netherlands 8.0 63.0 30.0 9.0 56.0 29.0 13% -11% -3%KPN Base Belgium 15.0 61.0 24.0 14.0 60.0 24.0 -7% -2% 0%Swisscom Switzerland 14.2 67.8 47.9 12.1 59.8 41.1 -15% -12% -14%Cosmote Greece 29.7 29.9 1%

Coleago Consulting


2005 2006 Change 2005-2006



Project Alpine 75

g

Sales € Million

Mobilkom Austria 1,719 1,727 0%Mobilkom Croatia 422 475 13%

Bouygues France 4,144 4,539 10%SFR France 8,242 8,678 5%T-Mobile Austria 885 1,149 30%T-Mobile Germany 8,621 8,215 -5%T-Mobile UK 4,153 4,494 8%T-Mobile Czeck Republic 938 1,043 11%T-Mobile Hungary 1,090 1,050 -4%T-Mobile Netherlands 1,064 1,138 7%T-Mobile Croatia 512 556 9%T-Mobile Slovakia 378 429 13%T-Mobile Poland 1,672 1,830 9%

T-Mobile USA 11,887 13,628 15%Vodafone Germany 7,924 8,233 4%Vodafone Italy 8,012 8,406 5%Vodafone Spain 5,101 6,381 25%Vodafone UK 6,797 8,103 19%Telefonica Spain 8,834 9,199 4%Telefonica O2 UK 5,474 6,268 15%Telefonica O2 Germany 2,831 3,427 21%Orange France 9,774 9,882 1%Orange UK 5,650 5,874 4%Orange Belgium 1,310 1,549 18%

Orange Spain 3,271 3,353 3%Orange Poland 1,650 1,934 17%KPN E-Plus Germany 2,744 2,698 -2%KPN Mobile Netherlands 2,456 2,867 17%KPN Base Belgium 540 609 13%Swisscom Switzerland 2,692 2,557 -5%Cosmote Greece 1,517 1,631 7%

Coleago Consulting


2005 2006 Change 2005-2006



Project Alpine 76

Customers '000 Prepaid Postpaid Total Prepaid Postpaid Total Prepaid Postpaid Total

Mobilkom Austria 1,463 1,929 3,392 1,424 2,207 3,631 -3% 14% 7%Mobilkom Croatia 1,361 252 1,613 1,583 330 1,912 16% 31% 19%

Bouygues France 2,424 5,454 7,878 2,474 6,248 8,722 2% 15% 11%SFR France 6,312 10,886 17,198 6,265 11,618 17,883 -1% 7% 4%T-Mobile Austria 1,044 1,046 2,090 1,218 1,962 3,180 17% 88% 52%T-Mobile Germany 15,228 14,295 29,523 16,306 15,092 31,398 7% 6% 6%T-Mobile UK 13,719 3,439 17,158 13,190 3,715 16,905 -4% 8% -1%T-Mobile Czeck Republic 3,346 1,288 4,634 3,240 1,809 5,049 -3% 40% 9%T-Mobile Hungary 2,870 1,324 4,194 2,886 1,545 4,431 1% 17% 6%T-Mobile Netherlands 1,096 1,221 2,317 1,215 1,337 2,552 11% 10% 10%T-Mobile Croatia 1,487 416 1,903 1,603 555 2,158 8% 33% 13%T-Mobile Slovakia 1,235 787 2,022 1,236 965 2,201 0% 23% 9%T-Mobile Poland 6,698 3,503 10,201 7,697 4,531 12,228 15% 29% 20%

T-Mobile USA 3,266 18,424 21,690 3,830 21,211 25,041 17% 15% 15%Vodafone Germany 15,545 13,620 29,165 16,658 13,964 30,622 7% 3% 5%Vodafone Italy 21,855 1,823 23,678 24,108 2,068 26,176 10% 13% 11%Vodafone Spain 6,642 6,281 12,923 6,274 8,190 14,464 -6% 30% 12%Vodafone UK 10,024 6,301 16,325 10,265 6,674 16,939 2% 6% 4%Telefonica Spain 9,186 10,704 19,890 9,304 12,142 21,446 1% 13% 8%Telefonica O2 UK 10,479 5,502 15,981 11,415 6,218 17,633 9% 13% 10%Telefonica O2 Germany 4,798 4,970 9,768 5,544 5,481 11,025 16% 10% 13%Orange France 8,575 13,855 22,430 8,554 14,714 23,268 0% 6% 4%Orange UK 9,881 4,977 14,858 10,365 4,968 15,333 5% 0% 3%Orange Belgium 1,643 1,270 2,913 1,526 1,613 3,139 -7% 27% 8%

Orange Spain 5,305 4,996 10,301 5,694 5,420 11,114 7% 8% 8%Orange Poland 5,884 4,035 9,919 7,718 4,803 12,521 31% 19% 26%KPN E-Plus Germany 5,174 5,574 10,748 6,649 6,005 12,654 29% 8% 18%KPN Mobile Netherlands 4,812 3,260 8,072 4,787 3,855 8,642 -1% 18% 7%KPN Base Belgium 1,572 429 2,001 1,897 461 2,358 21% 7% 18%Swisscom Switzerland 1,641 2,640 4,281 1,827 2,805 4,632 11% 6% 8%Cosmote Greece 2,926 1,718 4,644 3,339 1,878 5,218 14% 9% 12%

Coleago Consulting


2005 2006 Change 2005-2006



Project Alpine 77

Prepaid vs. Postpaid Prepaid Postpaid Total Prepaid Postpaid Total Prepaid Postpaid Total

Mobilkom Austria 43.1% 56.9% 100.0% 39.2% 60.8% 100.0% -9% 7%Mobilkom Croatia 84.4% 15.6% 100.0% 82.8% 17.2% 100.0% -2% 10%

Bouygues France 30.8% 69.2% 100.0% 28.4% 71.6% 100.0% -8% 3%SFR France 36.7% 63.3% 100.0% 35.0% 65.0% 100.0% -5% 3%T-Mobile Austria 50.0% 50.0% 100.0% 38.3% 61.7% 100.0% -23% 23%T-Mobile Germany 51.6% 48.4% 100.0% 51.9% 48.1% 100.0% 1% -1%T-Mobile UK 80.0% 20.0% 100.0% 78.0% 22.0% 100.0% -2% 10%T-Mobile Czeck Republic 72.2% 27.8% 100.0% 64.2% 35.8% 100.0% -11% 29%T-Mobile Hungary 68.4% 31.6% 100.0% 65.1% 34.9% 100.0% -5% 10%T-Mobile Netherlands 47.3% 52.7% 100.0% 47.6% 52.4% 100.0% 1% -1%T-Mobile Croatia 78.1% 21.9% 100.0% 74.3% 25.7% 100.0% -5% 18%T-Mobile Slovakia 61.1% 38.9% 100.0% 56.2% 43.8% 100.0% -8% 13%T-Mobile Poland 65.7% 34.3% 100.0% 62.9% 37.1% 100.0% -4% 8%

T-Mobile USA 15.1% 84.9% 100.0% 15.3% 84.7% 100.0% 2% 0%Vodafone Germany 53.3% 46.7% 100.0% 54.4% 45.6% 100.0% 2% -2%Vodafone Italy 92.3% 7.7% 100.0% 92.1% 7.9% 100.0% 0% 3%Vodafone Spain 51.4% 48.6% 100.0% 43.4% 56.6% 100.0% -16% 17%Vodafone UK 61.4% 38.6% 100.0% 60.6% 39.4% 100.0% -1% 2%Telefonica Spain 46.2% 53.8% 100.0% 43.4% 56.6% 100.0% -6% 5%Telefonica O2 UK 65.6% 34.4% 100.0% 64.7% 35.3% 100.0% -1% 2%Telefonica O2 Germany 49.1% 50.9% 100.0% 50.3% 49.7% 100.0% 2% -2%Orange France 38.2% 61.8% 100.0% 36.8% 63.2% 100.0% -4% 2%Orange UK 66.5% 33.5% 100.0% 67.6% 32.4% 100.0% 2% -3%Orange Belgium 56.4% 43.6% 100.0% 48.6% 51.4% 100.0% -14% 18%

Orange Spain 51.5% 48.5% 100.0% 51.2% 48.8% 100.0% -1% 1%Orange Poland 59.3% 40.7% 100.0% 61.6% 38.4% 100.0% 4% -6%KPN E-Plus Germany 48.1% 51.9% 100.0% 52.5% 47.5% 100.0% 9% -8%KPN Mobile Netherlands 59.6% 40.4% 100.0% 55.4% 44.6% 100.0% -7% 10%KPN Base Belgium 78.6% 21.4% 100.0% 80.4% 19.6% 100.0% 2% -9%Swisscom Switzerland 38.3% 61.7% 100.0% 39.4% 60.6% 100.0% 3% -2%Cosmote Greece 63.0% 37.0% 100.0% 64.0% 36.0% 100.0% 2% -3%



Coleago Consulting


2005 2006 Change 2005-2006



Project Alpine 79

Annual Churn Prepaid Postpaid Average Prepaid Postpaid Average Prepaid Postpaid Average

Mobilkom Austria 25.2% 10.9% 17.2% 26.5% 9.9% 16.8% 5% -9% -2%Mobilkom Croatia

Bouygues France 13.9% 14.2% 2%SFR France 11.9%T-Mobile Austria 14.5% 19.6% 14.5% 20.6% 0% 5%T-Mobile Germany 13.5% 16.6% 13.5% 17.6% 0% 6%T-Mobile UK 29.8% 31.5% 22.5% 33.1% -24% 5%T-Mobile Czeck Republic 7.0% 12.4% 8.1% 15.6% 16% 25%T-Mobile Hungary 10.3% 16.6% 9.2% 16.6% -11% 0%T-Mobile Netherlands 23.4% 31.5% 16.6% 28.9% -29% -8%T-Mobile Croatia 11.4% 12.4% 12.4% 12.4% 9% 0%T-Mobile Slovakia 14.5% 20.6% 11.4% 17.6% -22% -14%T-Mobile Poland 13.5% 25.3% 7.0% 25.3% -48% 0%

T-Mobile USA 24.4% 29.8% 23.4% 29.8% -4% 0%Vodafone Germany 23.9% 14.6% 19.4% 26.8% 15.1% 21.4% 12% 4% 10%Vodafone Italy 18.2% 16.1% 18.1% 20.8% 15.0% 20.4% 14% -7% 13%Vodafone Spain 27.8% 13.7% 21.1% 37.8% 13.8% 25.4% 36% 1% 20%Vodafone UK 38.1% 22.6% 32.0% 43.8% 19.5% 34.3% 15% -14% 7%Telefonica Spain 16.6%Telefonica O2 UK 27.0%Telefonica O2 Germany 14.0% 14.5% 4%Orange France 32.0% 11.6% 19.4% 12.2% 21.2% 5% 9%Orange UK 32.2% 23.8% 26.9% 24.0% 28.8% 1% 7%Orange Belgium

Orange Spain 26.0% 21.5% 23.8% 24.9% 25.5% 16% 7%Orange PolandKPN E-Plus Germany 30.0% 16.0% 23.0% 27.0% 22.0% 25.0% -10% 38% 9%KPN Mobile Netherlands 43.0% 15.0% 32.0% 35.0% 19.0% 29.0% -19% 27% -9%KPN Base Belgium 20.0% 16.0% 17.0% 20.0% 19.0% 20.0% 0% 19% 18%Swisscom Switzerland 8.6% 8.9% 8.2% 10.2% -5% 15%Cosmote Greece 19.6% 19.6% 0%

Coleago Consulting


2005 2006 Change 2005-2006



Project Alpine 80

Capex € Million

Mobilkom Austria 174 133 -24%Mobilkom Croatia 71 55 -23%

Bouygues France 584 613 5%SFR France 840 T-Mobile Austria 138 155 12%T-Mobile Germany 457 582 27%T-Mobile UK 459 496 8%T-Mobile Czeck Republic 101 129 28%T-Mobile Hungary 181 140 -23%T-Mobile Netherlands 168 165 -2%T-Mobile Croatia 71 54 -24%T-Mobile Slovakia 75 88 17%T-Mobile Poland 228 224 -2%

T-Mobile USA 3,886 5,297 36%Vodafone Germany 1,102 973 -12%Vodafone Italy 1,145 991 -13%Vodafone Spain 758 833 10%Vodafone UK 852 901 6%Telefonica Spain 728 750 3%Telefonica O2 UK 905 761 -16%Telefonica O2 Germany 772 1,139 48%Orange France 1,026 1,011 -1%Orange UK 887 481 -46%Orange Belgium 207 Orange Spain 549 554 1%Orange Poland 319 281 -12%KPN E-Plus Germany 401 486 21%KPN Mobile Netherlands 159 218 37%KPN Base Belgium 117 123 5%Swisscom Switzerland 216 207 -4%Cosmote Greece 110 139 26%

Coleago Consulting


2005 2006 Change 2005-2006



Project Alpine 81

Capex / Sales

Mobilkom Austria 10.1% 7.7% -24%Mobilkom Croatia 16.9% 11.6% -31%Bouygues France 14.1% 13.5% -4%SFR France 10.2% n/aT-Mobile Austria 15.6% 13.5% -13%T-Mobile Germany 5.3% 7.1% 34%T-Mobile UK 11.1% 11.0% 0%T-Mobile Czeck Republic 10.8% 12.4% 15%T-Mobile Hungary 16.6% 13.3% -20%T-Mobile Netherlands 15.8% 14.5% -8%T-Mobile Croatia 13.9% 9.7% -30%T-Mobile Slovakia 19.8% 20.5% 3%T-Mobile Poland 13.6% 12.2% -10%T-Mobile USA 32.7% 38.9% 19%Vodafone Germany 13.9% 11.8% -15%Vodafone Italy 14.3% 11.8% -18%Vodafone Spain 14.9% 13.1% -12%Vodafone UK 12.5% 11.1% -11%Telefonica Spain 8.2% 8.2% -1%Telefonica O2 UK 16.5% 12.1% -26%Telefonica O2 Germany 27.3% 33.2% 22%Orange France 10.5% 10.2% -3%Orange UK 15.7% 8.2% -48%Orange Belgium 15.8% n/aOrange Spain 16.8% 16.5% -2%

Orange Poland 19.3% 14.5% -25%KPN E-Plus Germany 14.6% 18.0% 23%KPN Mobile Netherlands 6.5% 7.6% 17%KPN Base Belgium 21.7% 20.2% -7%Swisscom Switzerland 8.0% 8.1% 1%Cosmote Greece 7.2% 8.5% 18%



Coleago Consulting


2005 2006 Change 2005-2006

EBITDA M i



Project Alpine 83

EBITDA Margin

Mobilkom Austria 35.7% 35.2% -1%Mobilkom Croatia 40.0% 40.1% 0%Bouygues France 29.7% 27.6% -7%SFR France 38.3% 41.2% 8%T-Mobile Austria 25.4% 28.8% 13%T-Mobile Germany 41.8% 40.2% -4%T-Mobile UK 31.4% 21.8% -31%T-Mobile Czeck Republic 43.7% 43.1% -1%T-Mobile Hungary 39.6% 40.2% 2%T-Mobile Netherlands 16.5% 16.6% 1%T-Mobile Croatia 46.5% 42.6% -8%T-Mobile Slovakia 42.1% 40.3% -4%T-Mobile Poland 39.4% 31.1% -21%T-Mobile USA 27.7% 27.5% -1%

Vodafone Germany 45.4% 44.4% -2%Vodafone Italy 51.6% 49.0% -5%Vodafone Spain 35.7% 34.4% -4%Vodafone UK 32.3% 30.7% -5%Telefonica Spain 46.7% 44.9% -4%Telefonica O2 UK 29.1% 33.8% 16%Telefonica O2 Germany 21.9% 20.0% -8%Orange France 39.8% 38.8% -3%Orange UK 30.0% 27.2% -9%Orange BelgiumOrange Spain 31.0% 27.8% -10%

Orange PolandKPN E-Plus Germany 23.8% 31.3% 31%KPN Mobile Netherlands 37.4% 36.6% -2%KPN Base Belgium 37.2% 42.4% 14%Swisscom Switzerland 44.4% 44.8% 1%Cosmote Greece 42.1% 43.1% 2%



Coleago Consulting


2005 2006 Change 2005-2006

%



Project Alpine 85

Non-Voice ARPU % Prepaid Postpaid Average Prepaid Postpaid Average Prepaid Postpaid Average

Mobilkom Austria 17.4% 21.8% 25%Mobilkom Croatia

Bouygues France 16.4%SFR France 12.9%T-Mobile Austria 11.0% 13.0% 18%T-Mobile Germany 17.0% 18.0% 6%T-Mobile UK 18.0% 18.0% 0%T-Mobile Czeck Republic 21.0% 21.0% 0%T-Mobile Hungary 14.0% 14.0% 0%T-Mobile Netherlands 14.0% 17.0% 21%T-Mobile Croatia 15.0% 15.0% 0%T-Mobile Slovakia 15.0% 15.0% 0%T-Mobile Poland 15.0% 16.0% 7%

T-Mobile USA 8.0% 11.0% 38%Vodafone Germany 19.8% 21.9% 11%Vodafone Italy 16.2% 17.9% 11%Vodafone Spain 14.4% 15.2% 5%Vodafone UK 19.8% 21.8% 10%Telefonica Spain 13.3% 13.8% 4%Telefonica O2 UK 21.0% 30.9% 47%Telefonica O2 Germany 20.0% 23.7% 19%Orange France 13.9% 15.3% 10%Orange UK 19.4% 20.3% 5%Orange Belgium 14.8% 15.3% 3%

Orange Spain 13.6% 12.1% -11%Orange Poland 19.6% 20.7% 5%KPN E-Plus Germany 15.0% 17.0% 13%KPN Mobile Netherlands 14.0% 16.0% 14%KPN Base Belgium 14.0% 14.0% 0%Swisscom Switzerland 14.5% 16.6% 14%Cosmote Greece 12.0% 11.1% -8%

Coleago Consulting


2005 2006 Change 2005-2006

Non Messaging Data Prepaid Postpaid Average Prepaid Postpaid Average Prepaid Postpaid Average



Project Alpine 86

Non-Messaging Data Prepaid Postpaid Average Prepaid Postpaid Average Prepaid Postpaid Average

Mobilkom AustriaMobilkom Croatia

Bouygues FranceSFR FranceT-Mobile AustriaT-Mobile GermanyT-Mobile UKT-Mobile Czeck RepublicT-Mobile HungaryT-Mobile NetherlandsT-Mobile CroatiaT-Mobile SlovakiaT-Mobile PolandT-Mobile USAVodafone Germany 4.7% 7.2% 54%Vodafone Italy 3.4% 4.5% 33%Vodafone Spain 4.6% 6.0% 29%Vodafone UK 4.9% 6.1% 25%Telefonica Spain 5.2% 6.1% 17%Telefonica O2 UK 2.6% 4.0% 55%Telefonica O2 Germany 4.3% 5.3% 21%Orange FranceOrange UKOrange BelgiumOrange SpainOrange PolandKPN E-Plus GermanyKPN Mobile NetherlandsKPN Base BelgiumSwisscom Switzerland 7.7%Cosmote Greece

reading - session 12 project alpine june 2007

Documents