umts roll-out bei quam: „die spanisch-finnische antwort auf den wettbewerb“

UMTS Roll-out bei Quam: „Die spanisch-finnische Antwort auf den Wettbewerb“March 2002

Group 3G | Dr. Sven Quassowski 22.04.232

Content

Company background

Key achievements so far

Group 3G objectives

The road to mobile broadband


Company background


_Knowledge and innovation transfer

_ Financial backing

_ Cooperation in areas such as_ Branding_ P&S development_ Network & IT platforms_ Purchasing

Telefónica Móviles and Sonera founded Group 3G toshape the future of mobile broadband in Germany

42,8%

57,2% Support in fundamental areas provide a platform for growth


Both shareholders are strong industry players with international footprint

(1) Managed subscriptions EoP 01(2) Mobile, wireline and Internet customers EoP 01; (3) Managed subscriptions EoP

2001

Presence in 49 countries

56 percent

32 million(1)

Global presence

Mobile market share home market

Mobile customers worldwide

Total customers worldwide

EBITDA marginmobile (Q4/01)

UMTS licenses

40 percent

Spain, Germany, Italy, Austria, Switzerland

Global stature, operational excellence, financial strength

Key contribution to Group 3G

78 million(2)

Presence in 19 countries

61 percent

15 million(3)

52 percent

Finland, Germany, Italy, Spain

Innovation and advanced

technologies

17 million(3)


Key achivements so far


Market entry and organisational ramp-up have been achieved in record time

Jan01

Aug00

May01

July01

Oct01

Nov15

April01

June01

Aug01

Feb02

Management team on board

Signing of national roaming agreement

Commercial launch

Establishment of head-quarter in Munich

Acquisition of UMTS license

Quam brand launch1st UMTS test call

Signing of infrastructure sharing agreement

Signing of intercon-nection agreement

Appointment of CEO

Aided brand Awareness of 80%


Group 3 G’s achievements

Number of customers– Customer base of 75.000 (mid of March)

Billing of customers– First invoices sent to customers (mid of January)– Less than 1% queries

Number of employees – Almost 900 (mid of March)


Quam’s product portfolio builds a world around the customer. „Your world of possibilities“

“Me”Quam

Customer

- Mobile Email- Fleet management- Mobile advertising- Unified messaging- Conference call

Work

- Voice- SMS- Multimedia Messaging Service (MMS)- Location based services

Friends & Family

-News-Directories -M-Payments-M-Commerce-Telematics

Life Management

- Games, Comedy, Music- City Guide- Communities- Chat

Leisure


The simple logic behind the tariff system is to offer affordable rates for all user groups and the best possible rates for individual communication needs along three principles

Quam’s tariff system is straightforward and tailored to customers’ priorities

Conn

ect,

Nov.

29,

200

1; F

AZ, N

ov. 2

6, 2

001Transparency One rate to all networks

SimplicityNo additional monthly fee for data services (e.g. HSCSD, GPRS)

Flexibility Choice of user options according to calling patterns


Group 3G objectives


Group 3 G’s targets are ambitious

Group 3G will be one of the leading providers of mobile broadband services in Germany

Group 3G‘s business case is based on mobile broadband communication


With strong competition and customer growth driven by churn market challenges are considerable

Subscribers (M)

Market growth split into new customers and churn in Germany

(1996 – 2004E)

1,7 2,85,6

9,6

24,8

3,8 2,2 1,4

8,0

15,7

1,4 1,4

2,1

3,5

5,9

12,014,2 15,2

68%73% 76% 78%

17%

59%

29%

0

5

10

15

20

25

30

35

1996 1997 1998 1999 2000 2001 2002E 2003E 2004E0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ChurnNew customers Market Penetration

Source: RegTP; Group 3G estimations


Impo

rtan

ce o

f crit

eria

Nowadays customer selection criterias for a mobile operator in Germany

Price

inexpensive resp. cost free basic fee

fair tariffs in general inexpensive SMS

services

transparenttariff structure

Service

Mobile Number Portability

availability of hotline

friendliness of hotline receptionist

punctuality of invoice

Product Characteristics

easy handling of mobile phone navigation

attractiveness of mobile phone which belongs to package

flexible term of contract

Network

National coverage

International coverage(roaming)

Capacity Friends & Family

friends are using the sameprovider

image of provider

price


The road to mobile broadband


To be well positioned in the 3G market Group 3G opted for an early entry

(1) Mobile virtual network operator(2) Mobile network operator

Market entry optionsCustomer

base

2G/2.5G 3G ramp-up

3G mass market

MVNO(

1)

MNO(2)

MNO(

2)

_ Build brand, generate awareness_ Build market position independent of technology - Distribution channels - Transferable customer base - Partner network in service and application offering_ Gather market experience_ Generate revenues

Advantages of early entry


Basic Assumptions for Group 3G‘s UMTS roll-out

_Start of the commercial offer _In 2003 (depends on the appropriate number of easy-to-use terminals)

_Infrastructure sharing _40% savings caused by infrastructure sharing with e-plus

_Quality of service_Packet-switched downlink (network to device) - 128 to 384 kbps (best effort)_Packet-switched uplink (device to network) - 128 kbps (best effort)

_Circuit-switched uplink (device to network) - 64 kbps (guaranteed)


Mobile broadband will change your every day life

_Send and receive pictures

_Short streaming sequences

_Device to Email/Email to Device

Multi Media Messaging Service

_Telematics_City guide_Restaurant finder_ATM finder_Weather information_Pharmacy finder

Location-based Services Mobile Music & Games

_Download of music

_Playing games over the mobile network

_Download of new games


Content Partners

Quam’s multi access portal offers unique experience of digital services tapping a vast pool of content partners

Applications & Interfaces

Multi Access Portal Platform

„Integrated content, commerce and

community offer“

Web

PDA

News & Finance

Sports

Lifestyle

Enter-tainment

Music

WAPSMSVoice

Thank you

umts roll-out bei quam: „die spanisch-finnische antwort auf den wettbewerb“

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