1. Disruptive Technology Strategies for Mobile Operators in Emerging Growth Market. Connected World Forum, December 8 th2011, Chengdu, China. Dr. Kim Kyllesbech Larsen (Speaker) & Xi Bin Technology Economics, Technology, Deutsche Telekom.

2. Mobile business models Dr. Kim Kyllesbech Larsen, Connected World Forum, Dec 8 th2011, Chengdu, China. 3. The profitability challenge Feb. 2011Tellabsreports mobile operators profitability challenged within 3 year s , and mobile internet is forcing operators to transform their networks and business models 1 . Oct 2011ChinaTelecomCorp reported third-quarterprofitthatmissedanalysts'estimates , asadditional3Gusersincreasedthecompany'scosts 3 Aug. 2011China Unicom, at the moment only Chinese carrier selling iPhone in the country,H1 profit down 9%. has beenstruggling to grow its profitabilitydue to heavy subsidies 2 .1Tellabs;2Reuters;3China Daily;4Business Review India;5MediaNama;6Telecom Asia; Nov. 2011Bharti Airtel reportsprofit dip again , in the seventh quarter 4 .Oct. 2011Idea Celluarprofit down 40.3% QoQ, despite revenue increases of 13.2% 5 .Nov. 2011SouthKoreas KT reported a 41% slump in Q3 net profit, as a result of discounts and other initiatives to lure more smartphone users 6 .Dr. Kim Kyllesbech Larsen, Connected World Forum, Dec 8 th2011, Chengdu, China. 4. Mobile Emerging Asia in perspective. Profitability drop of almost 10%. Opex growth faster than Revenue. Highest ARPU YoY decline. ca. 70% mobile penetration today. Main 3G growth still ahead. Emerging Asia trends. Emerging Asia Growth on expense of profitability Long-term development troublesome. Dr. Kim Kyllesbech Larsen, Connected World Forum, Dec 8 th2011, Chengdu, China. 5. OTT Mobile Apps impact. Mobile Apps attacks the highest margin services. 22.41 12.7 1Source 2010 & 2015 Pyramid Research September 2011 Western Europe. 2010A MNO Centric 15.7 Voice 3.4 SMS 3.3 Data 6.5 Voice 6.21 Data ARPU 13.0 Voice 3.8 SMS 2015E MNO Centric 6.21 Data 23.0 15+% Dr. Kim Kyllesbech Larsen, Connected World Forum, Dec 8 th2011, Chengdu, China. 6. OTT Mobile Apps impact. Mobile Apps attacks the highest margin services. 22.41 12.7 1Source 2010 & 2015 Pyramid Research September 2011 Western Europe. 2010A MNO Centric 2015E Apps Centric 15.7 Voice 3.4 SMS 3.3 Data 6.5 Voice 6.21 Data ? + 9.7+ Data ARPU ARPU MoIP Death to SMS. +43% VoIP @Home& maybe @Work. 15+% Dr. Kim Kyllesbech Larsen, Connected World Forum, Dec 8 th2011, Chengdu, China. By 2015 more than 70% of users havea smartphone 7. Revenue Decline & Profitability Squeeze Business model Breakdown Data Tsunami Spectrum Crunch Transform or Perish Dr. Kim Kyllesbech Larsen, Connected World Forum, Dec 8 th2011, Chengdu, China. 8. OTT mobile apps impact on Emerging Asia.Profitability challenge may arrive later. 1Source 2010 & 2015 Pyramid Research September 2011 Asia Pacific. 2.6 1 67% mobile 0.3SMS