Partnerské setkání

13.6. 2002, Horní Bezděkov

2

Chasing the gap

• The revenue gap for operators to close could be significant

– this has been driven by some wrong assumptions

244

300

63 5689

-

50

100

150

200

250

300

350

400

450

1998 1999 2000 2001E 2002E 2003E 2004E 2005E

0%

10%

20%

30%

40%

50%

60%

70%

80%

Number of subscribers Net additions Annual growth

5248

3933 30 29 29 29 29 29

1

2 4 5 79

1113

170

130

-

10

20

30

40

50

1997 1998 1999 2000 2001E 2002E 2003E 2004E 2005E 2006E

0

20

40

60

80

100

120

140

160

180

Voice ARPU € Non-Voice ARPU € MoU

244

300

63 5689

-

50

100

150

200

250

300

350

400

450

1998 1999 2000 2001E 2002E 2003E 2004E 2005E

0%

10%

20%

30%

40%

50%

60%

70%

80%

Number of subscribers Net additions Annual growth

5248

3933 30 29 29 29 29 29

1

2 4 5 79

1113

170

130

-

10

20

30

40

50

1997 1998 1999 2000 2001E 2002E 2003E 2004E 2005E 2006E

0

20

40

60

80

100

120

140

160

180

Voice ARPU € Non-Voice ARPU € MoU

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E

BIT

DA

%

Banc of America Securities Forecast Possible Worse Case Scenario

Euros/Month ARPU

Source: PwC

Forecast EBITDA Margins

Expectation gap

3

Changing the business model

Old assumptions

Mobile is a broadband service?Mobile services is for the mass market?Mobile can capture a significant share of the value chain?

New business drivers

Focus on improving efficiency ‘here and now’Chase incremental revenuesBuild up capability to provide enriched data services

4

2. “Incremental”

3.Technology Enablers

4. Commercial enablers

Eurotel focus - 24 months

1. „Traditional“ - Voice & Messaging

Corporate ServicesCorp. - e-mail > intranet > UM

Image SevicesSimple picture messaging > camera > mms

Finance servicesBanking > Transactions

Media > Cell Broadcast, sms > LBS

Retention, ARPU maintenance

Cost Control

Quality and Operational Optimization

Solutions > Horizontal > Vertical

Billing

CRM

APPSPlatform

UMTS

Apps > Content

5

Implications for the next 24 months

Maintain position as the leading provider of mobile servicesContinued investment in quality (I.e network and customer care)Greater focus on marketing to smaller segmentsBegin to sell ‘solutions’ in greater quantitySupport upgrade strategy of clientsCost efficiencies

2002 2003

Push data centres within shopsInvest in contentSupport the delivery of content through an application platform Encourage the market to adopt more sophisticated handsets

6

Supplier push has driven the market up to now

Consumer pull

Content / device push

Offers ConsumerSegments

Children

Teenagers

Hyperconnected

Professionals

Students

Retirees

Barriers

Un

dev

elo

ped

nee

ds

P

r ice

an

d I

nve

stm

ent

leve

l s

Sec

ur i

t y /

pr i

vacy

Co

mp

lexi

ty

7

Push into the data area will be primarily driven by customers having the right handsets –

we looking at how we should

support this through:

- securing deals with the manufacturers

- assisting customers purchase handsets

- delivering fully configured handsets at the POS

- ensuring the value added services are easily

accessed through the handset

- network is aligned with handset capability

- working with content partners to get a high quality stream of

content to the end customer

Creating the right market

8

• We cannot expect to repeat the Japan experience due to market differences

• We need to work with our content partners to ensure we understand customer

requirements – and Eurotel support the quick delivery of content

Content is critical

2. Application platform: Support content partner delivertheir services quickly, with the flexibility they require

1. CRM: Understand customer behaviour and requirements

3. Billing:Develop our billing capability to support the enhancedrange of services that will be provided

4. Business modelDevelop different businessmodels to work with our partner that reflect the valueboth parties bring to the end customer.

9

Changing business relationships

Core Business

Enterprise Solutions

Consumer Services

Network

Product and Service management

B2B Partners

Content / Transaction Partners

Outsourced Activities

Value Added Layer

10

UMTS Strategy

• In market terms, UMTS will be positioned as an evolutionary data service alongside GPRS, HSCSD

• Adopt a prudent rollout strategy which matches investment to market demand

• Initial launch services will be targeted at high value segments - particularly business, top consumers

• Ensure full compatibility between legacy technologies (I.e handover)

• Utilise experience of existing and imminent data services to educate and seed the market

• Monitor and evaluate the progress of deployment in Western Europe, Japan to benefit from learning experiences

11

UMTS strategy starts now…

• Utilise experience of existing and imminent data services to educate and seed the market:

- working with content ‘partners’- communication of market needs- supporting service push- developing new business models/ partnerships

• Don’t over-hype the market…..keep it simple and make it work!

12

There is cause for optimism Sonera ARPU and MoU

2527293133353739414345

Q1

98

Q2

98

Q3

98

Q4

98

Q1

99

Q2

99

Q3

99

Q4

99

Q1

00

Q2

00

Q3

00

Q4

00

Q1

01

Q2

01

Q3

01

0

20

40

60

80

100

120

140

160

Sonera MoU Sonera MoU Sonera Sonera Voice ARPUVoice ARPU Sonera Sonera Data ARPUData ARPUSonera MoU Sonera MoU Sonera MoU Sonera MoU Sonera Sonera Voice ARPUVoice ARPUSonera Sonera Voice ARPUVoice ARPU Sonera Sonera Data ARPUData ARPUSonera Sonera Data ARPUData ARPU

Euro/ Month

Minutes/ Month

13

Penetrace SIM karet a mobilních uživatelů

7158

overall penetrationof SIM cards

overall proportionof MT users

14

Eurotel GSM pokrytí (30.4.2002)(CTU Threshold - 92dBm)

CBR : 1,2 % (drive test)

CDR : 1,0 % (drive test)

Key Network Elementsstatus by 30/04/2002:

• 3 240 Cell-sites

• 8 209 BTSs (sectors)

• 15 699 TRXs

• 76 BSCs

• 20 MSCs

Hand-held, 2 W output power

Actuals

Population Coverage : 96,1 %

E-roads Coverage : 99,8 %

E50+55 Coverage : 100,0 %

Geographic Coverage : 88,1 %

Population Coverage CIS : 99,2 %

15Source:SchroderSalomonSmithBarney, Company data

44,1%

36,1%

-28,9%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

TIM d

omesti

c (It

aly)

MobiF

on (Rom

ania)

Sonera d

omesti

c (F

inla

nd)

TEM d

omesti

c (S

pain)

MTS (R

ussia

)

Swiss

com

Mobile

(Sw

itzerla

nd)

TIM c

ons. (It

aly)

Eurote

l (Cze

ch R

ep.)

CosmOTE c

ons. (G

reece

)

TEM c

ons. (S

pain)

PTC (Pola

nd)

TMN (P

ortugal)

Weste

l (Hungary

)

RadioM

obil (C

zech

Rep.)

T-Mobile

Germ

any (G

ermany)

Vimpelc

om (R

ussia

)

Verizon W

irele

ss (U

S)

STET Hella

s (Gre

ece)

EuroTel B

ratis

lava

(Slo

vaki

a)

Orange F

rance

(Fra

nce)

Sonera c

ons. (F

inla

nd)

max.m

obil (A

ustria

)

Orange U

K (UK)

AT&T Wire

less

(US)

Orange c

ons. (F

rance

)

T-Mobile

cons.

(Germ

any)

Mobist

ar (Belg

ium

)

One2One (U

K)

Cesky

Mobil

(Cze

ch R

ep.)

29 operators

Eurotel #8

EBITDA v roce 2001

16

CONTENT SLUŽBY

2001 - Celkový obrat GSM operátorů• hlasové příjmy - 80-90% obratu• datové příjmy - 10-20% obratu

• 95% - SMS P2P, Data• 5% - VAS (Content služby)

2006 - Celkový obrat GSM operátorů• hlasové příjmy - 60-70% obratu• datové příjmy - 30-40% obratu

• 50% - SMS, MMS, email P2P, Data• 20 % - Informace a Zábava• 17% - Inzerce• 7% - Transakce• 6% - Korporátní služby

17

Co je Juice?

Juice - interaktivní zábava a informační služby

- značka a mobilní portál společnosti Eurotel

1. Juice WAP - technologieWAP/CSD nebo GPRS

2. Juice Easy - technologie USSD a Infotext

3. Juice SIM - technologie SIM Toolkit

+ www.mobiljuice.cz

18

1997Text / SMS

1999 Text / WAP

2002obrázky

2003Videoklipy

2005Video streaming

Přehled vývoje – možnosti pro nové aplikace

• Text • T9 textové zprávy• černobílý WAP

• Obrázky• Fotky• Barevný WAP • Java applets • MMS

• Ukázky filmů• Video zprávy

• Interaktivita• Filmy• Hudba

19

End-To-End Service Development Process

ContentPrograms

ContentPrograms

ContentAggregation

ContentAggregation

Launch ContentLaunch Content

SDK +Promotion

SDK +Promotion

HandsetProcurement

HandsetProcurement

HandsetSpecifications

HandsetSpecifications

HandsetDevelopment &Tests

HandsetDevelopment &Tests

Technology Researchand Business Dev.

Technology Researchand Business Dev.

End-to-EndService Planning

End-to-EndService Planning

Service NetworkDesign & Specs

Service NetworkDesign & Specs

Gateways VendorSelection

Gateways VendorSelection

Implementationand Integration

Implementationand Integration

End-To-End TestingEnd-To-End Testing

LaunchLaunch

20

Required Capabilities and Enablers to support change of focus

Create demand

Camera handsets

Content Billing

Apps Platform

CRM, SFA

Enterprise Architecture

Service Brand

Service in handset

Per Service

Applications

Communities

Quality of Service

Services Communication

Billing Capabilities

Application Development

Customer analysis & service

Handsets testing & OEM

IT & SDI O&M Excellence

Required Capabilities Enabling Projects

Customer Focus Service Focus ARPU focus

21

Aplikační platforma

ISP

– Independent Service P

roviderIC

P – Independent C

ontent Provider

AS

– Advertising S

ponsor

AS

ISP

ICP

Multi-Access Portal

Standard

Interface (AP

I)

Enabler Enabler

EnablerEnabler

Billing

Provision

SMSC

USSD SMS WAP Voice

Customers

Partners

22

Nové multimediální telefony

Siemens Cruiser

Panasonic GD67

Nokia 7650 Sharp

Ericsson A800

Samsung T100

Panasonic GD87

23

Kategorie služeb

24

25

Rank Service Area1 Hlasování Media Consumption2 Dating - ATS Praha Fun3 Vtipy Fun4 Dating - Chat Fun5 Virtuální partner Fun6 Teletext News7 News - MF DNES News8 Horoscopy Fun9 Annonce Find

10 E- mail Others11 ČTK News12 Vlak - bus Find13 Sport zprávy News14 Křížovky Media Consumption15 Mass sending Others16 Salt Lake City News17 Biorhythm Fun18 TV program Find19 Dopravní zprávy Find20 Slovníky Find

Juice Easy/Infotext - TOP aplikace

26

Rank Service Area

1 Lovci pokladů Games2 IQ mapa Games3 Dating - Seznamka.cz Fun4 Milionář Games5 Nebe v Plamenech Games6 Juice chat Fun7 Teletext News8 Vlak-bus Find services9 Juice e-mail Others

10 Kamasutra Adult11 Hitparada Music12 Mobilní průvodce Find services13 E-cards Fun14 IDNES News15 Dating ATS Fun16 Melodie Music17 ČTK News18 Hokej.cz News19 Loga Fun20 Juice Hledání Find services

Juice WAP - TOP aplikace

27

Content služby na mobilu se využívají ve volném čase

28

Interest in new services• ET core users were interested in up-to-date traffic info and covering regular payments by MT, while

Go users stressed infotainment (ringtones/logos, multimedia news, games etc.) more.

0

20

40

60

80

100ET core info service users Go info service usersET core info service non-users Go info service non-users

% of respondents

Find Mobile shopping Fun News Fun Fun Music News Games

29

HOW TO THINK TODAY?Total usage vs. evaluation of usefulness

calls via operator booking accommodation hotel/restaurants (addresses) last-minute presents purchase/booking tickets booking holidays music in MP3 format purchasing/sending flowers lonely hearts music charts purchase of books/CDs

group SMS cultural guide political news chat logos/ringtones playing/downloading games downloading/sending pictures music news

•LOW USEFULNESS•(below-average evaluation of usefulness)

search for health care navigation/traffic jams travel info (surroundings) search for petrol station taxi booking

email info about phone numbers banking services train/bus timetables businesses (addresses) sports results sports statistics/tables listening to radio (?) economic news

•HIGH USEFULNESS•(above-average evaluation of usefulness)

•LOW TOTAL USAGE•(Below-average usage index)

•HIGH TOTAL USAGE•(Above-average usage index)

KE

Y S

ER

VIC

ES

KE

Y S

ER

VIC

ES

SERVICES

SERVICES NEEDED

NEEDED

IN EMERGENCY

IN EMERGENCY

VOLUME DRIV

ERS

VOLUME DRIV

ERS

QU

EST

ION

MA

RK

S

QU

EST

ION

MA

RK

S

30

Content services - Eurotel KEY FINDINGS

1. Content services are mostly used in leisure time

2. Fun services constantly generate revenue• Jokes, Dating, Chats - auto-generated by users

3. Games has enormous potential• BUT have to be taken care and supported by prizes

4. Useful services like news and find services• are not so price sensitive in opposite to entertainment

5. Use the synergic efect with strong media

6. There is a great potential in adult services• the most profitable on internet

7. Don´t create generic content for mass market• BUT tailored content for mass numbers of communities

31

NEJ z Juice služeb

1. Nejrozsáhlejší nabídka přístupu k službám s přidanou hodnotou- Juice Easy, Juice WAP, Eurotel SIM karta s Juice

2. Jediný „mobilní“ hudební server v ČR - Hitparáda

3. První informační LBS služby v ČR - Mobilní průvodce

4. Nejúspěšnější mobilní herní služby v ČR- SMS/WAP - Chcete být Milionářem- WAP - Lovci pokladů - 180 tis. hitů za den- SMS/Juice Easy - xGen Go

5. Rezervace přes mobilní telefon - MFF Karlovy Vary- 10 % vstupenek reservováno přes WAP- 100% úspěšnost

6. Speciální balíčky služeb k významným událostemOlympijské hry v Salt Lake City- informační služby - SMS, WAP, hlasové zprávy, vyzváněcí melodie

32

CONTENT SLUŽBY - další rozvoj v 2002

1. Zaměření na nejprofitabilnější oblasti

2. Differenciace se službami s vysokou přidanou hodnotou

3. Příprava zákazníků a partnerů na nové možnosti

• Seznamky and chaty• Melodie a loga • Spolupráce s médii • Hry• Erotické služby

• Mobilní průvodce a LBS služby• Hudba• „Event“ balíky služeb

• MMS, Mobilní platby• Java hry

33

CONTENT SLUŽBY - další rozvoj v 2002

MMS - Multimedia messaging

• P2P picture messaging

• MMS služby na WEBu - MMS composer, Fotoalbum

• MMS content třetích stran

34

Děkuji za pozornost