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1Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A.Título de la ponencia / Otros datos de interés / 26-01-2010Telefónica Germany

René Schuster CEO, Telefónica Germany Duisburg - May 4th, 2011

The Mobile Internet Revolution:Challenges and Chances

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Telefónica Germany

Fast Mobile Internet: Connectivity drives today’s economy

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Mobile shopping

05:30AMPM

Augmentedreality

People have embraced a fascinating journey towardsa total digital life

01:20AMPM Geolocation08:05AM

PM News

09:05AMPM

Social Networks

TDT HDAsk an Expert

e-Banking e-Government e-Health

Music

Even more – the world will be truly connected

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Business prospers with mobility and broadband

2015201520112011 20202020

Increased use & penetration of mobile & broadband

1.6%

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Mobile broadband usersIn US double all 24 months

4.6 billion Mobile devices worldwide

91% of world populationare mobile subscribers

50 million devicesConnected to network

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New competitors enter the communication market

Traditional Telecommincation

Providers

Traditional Telecommincation

Providers

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Fibers & frequencies become the infrastructure of our future

Almost every device will be connected by 2020

Automotive

Fleet management

Smart cities

Smart meters

Consumer electronics

eHealth, eFinance, security, …

Intelligent NetworksIntelligent Networks

Single Family Home

Communication Device on Utility Pole

Utility Office

Smart metersAutomotive

Smart cities

Consumer Electronics

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Telefónica Germany

Time to transform: From pure-play operator to the next levelcommunication company

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Network operators transform into communication companies

ENGAGEfor a better relationship with customers,

employees and vendors

EXTENDfor new growth services

and efficiency opportunities

EXTENDfor new growth services

and efficiency opportunities

SIMPLIFYprocesses,

systems and organization

SIMPLIFYprocesses,

systems and organization

Introduction of new growth areas

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We need a new sustainable Internet model

...underpinned by industry partnerships

New businesses and services

SustainableInternetmodel

New pricing models

Peering agreements that are fair to both parties

Enhanced Quality of Service

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Telefónica Germany

Time to act in the industry:Next generation services are built on trust

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There are a number of barriers we need to breakdown

- Public concerns about privacy

- Protecting children from harmful contact & content

- Restrictions on non-national usage

Digital confidence is mandatory

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Telefónica Germany

Time to work together:Think beyond liberalization

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Economic barriers

- Spectrum availability

- An unbalanced value chain

- Creating a business model that delivers a return

We don’t need subsidies. We need fair play.

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Let’s get this rightto push Germany forward in the digital race!