The Business Drivers Behind Converged Billing

1. The Business Drivers Behind Converged Billing Geoff Coleman

2. The World Is Changing The OLD Way Trading Auctions Travel Billing • Batch process: • Requires an intermediary • Slow, time-consuming • Minimal engagement • Few options available • Selective markets TheNEWWay • Real-time process • End-user is empowered • Instant, responsive • Dynamic, interactive • Many options available • Mass markets Real-Tim€ Billing Note: All marks, logos and company names referenced above may be registered trademarks or trademarks of Comverse or the respective referenced company(ies) 2

3. The New Way Realizing the Vision: “Real-Time Billing for all subscribers to all services independent of payment method” • The risk associated with content, calls for services requests to be authorized and credit limits to be applied to all subscribers in real-time • The way subscribers use new services creates the need for instant availability of account information • Subscribers expect services to be personalized/customized to their needs • The divide between prepaid and postpaid is dissolving – the need is for a unified billing approach 3

4. Real-Time Billing - Really Makes The Difference Revenue Realization Combine service authorization, rating and charging into a single real-time process Fast deployment of new services Minimize time to market - stay ahead of the competition Focused Marketing Real-Time subscriber information to stimulate usage and encourage loyalty Real-Time Billing allows operators to foster a retail relationship with their subscribers by continuously allowing them to capture the moment in which the subscriber is in the purchasing mode, enabling a positive customer experience 4

5. Operator View of Business Drivers Very important Important Not very important Not at all important Real-time usage information • 96% of operators believe that the ability to impose real-time credit limits on all subscribers is important • Over 90% of operators believe that converged billing should reduce revenue leakage • Over 75% of operators believe that they will need to offer hybrid accounts Reduced costs Reduced revenue leakage/risk Hybrid Accounts Real-time billing/credit limits 0 20 40 60 80 100 Source: Informa Telecoms & Media, 250 Mobile Operators May 2005 5

6. The VOXmobile success story SIMPLE AND MORE Vincent Lekens – Head of IT & Billing Department Frankfurt – November 2005

7. Gaining competitive Advantage in the Next Generation Marketplace by Developing a Convergent Strategy Agenda • Business Profile • VOXmobile roll-out strategy • New services • Why did VOXmobile choose a converged billing solution? • Questions & Answers

8. ? Who is • VOXmobile S.A. is a Luxembourg société anonyme. • Main shareholders: • BGL Investment Partners: www.bip.lu • Audiolux: www.audiolux.lu • Through its shareholders, VOXmobile has a strong link into the Luxembourg economy (banks, auditors, media-industry,…). • The purpose of the company is to construct, maintain and operate: • mobile cellular network (GSM-Edge, UMTS) • Public WLAN and • fixed telephone networks in Luxembourg. • VOXmobile has been awarded by the Grand-Duchy of Luxembourg • a UMTS (384 Kbps) • a GSM 1800 license, incl. EDGE (220Kbps) • a fixed line network license (fixed, IP, DSL,…) • VOXmobile has a strong service oriented mobile strategy. • VOXmobile has a strong content oriented mobile strategy.

9. WLAN GSM/DCS UMTS GPRS EDGE the world is ROAMING FIXED mobile Wi-MAX ADSL VoIP SERVICES CMTS

10. The Luxembourg Mobile Market mobile operators in Luxembourg • Luxgsm: • Incumbent • Start in 1992; • Vodafone partner since 2004 • Tango: • Start in 1998; • Member of TELE2 • VOXmobile: • Started May 12, 2004 • Using national roaming with LUXGSM • Own UMTS network operational February 2005 • Own GSM 1800/Edge operational Mai 2005 • High focus on services and content • High focus on corporate customers

11. VOXmobile – 1,5 year old • Subscriber growth rates exceeding expectations ! • Marketshare today: ~ 22% • > 48.000 active postpaid customers  23% marketshare on postpaid! • > 34.000 active prepaid customers  19% marketshare on prepaid! • We intend to archieve a marketshare end of the year 2005: 25%! • Fixed customers: 6.5% market-share (launched Feb. 2005) • We want market-share fix network end of 2005: 10% • ADSL: launch April 2005 – 2% market share

12. Roll-out strategy • The GSM services of VOXmobile: SIMPLE AND MORE • Launch GSM services: 12th may 2004 • “National Roaming“ with LUXGSM guaranteeing a coverage of 99% of the population at launch! • Strong differentiation by new services platforms e.g. • Advanced Messaging, FUN Dial, E-Mail Push, IVR • Supervision of systems from 24 hours, 7 days per week • Transparent migration from GSM to UMTS for end user. • Seamless handover between own UMTS network and own GSM/Edge network • National roaming with the GSM/GPRS network of LUXGSM (North of the country) • Thanks to national roaming, the roll-out of the VOXmobile networks can be mainly capacity and inbound roaming driven • Hotspot WLAN

13. The up most complete offer on the market • Voice and Video: (Mobile and Fixed network) • All kinds of Voice calls including: Video-calls (3G only), ongoing extension towards Edge and ADSL • Unified Messaging including: • VMS & Video-mail (fixed & mobile) • SMS & MMS including Video MMS • E-mail and mobile synchronisation (VOXmobile @vantage) • WEB and WAP interface • SMPP SMSC interface for SMS notifications • DATA services: • Broadband Internet/Intranet access on GSM and UMTS network • Broadband Internet/Intranet access via ADSL or leased lines • WLAN

14. WIFI – 20 000 hotspots worldwide • High speed wireless access to Internet • National coverage in public areas, hotels, banks, … • W-LAN installation and integration at corporate side • VOXmobile subscribers get invoiced on their classic invoice due to RTB integration • Easy to use • VOXmobile subscribers get access to tens of thousands of hotspots accessible worldwide through partners as:

15. Partners Infrastructure: Information and billing: Messaging and content:

16. Prepaid Postpaid Real-Time Non Real-Time A Unified Approach to Billing

17. VOXmobile Converged Billing Customer centric Prepaid Payment Postpaid Payment CAP 3 Data Monitor OSA/Parlay e-payments Billing & Collection Usage Statements Unified Accounts Notifications Recharge Credit Limit Unified Customer Care Real Real - - time time Rating Rating Engine Non Non A/R & G/L Engine Real Real - - time time Settlements CDRs Mediation TAP/CYBER Files Engine Real-Time Billing for All Subscriber for All Services

18. Why VOXmobile converged? Unique Real-Time Billing System • All subscribers are rated in real-time allowing: • 100% accuracy of invoices as every transaction is authorized (learn from the banking industry) • Managing consumptions for customer in real-time due to real-time invoice control • Impose and manage a credit limit on every user or usage limits with alerts • Split Billing and Mixed Prepaid/Postpaid • 2 Lines on a single SIM card with hunting functionalities • VPN (on fleet; off fleet; short number dialing) • No differentiation between Prepaid and Postpaid customers: • Same services including data, roaming and content • Single integration with content systems • Same payment interface, including Direct Debit • Easy change form Prepaid to Postpaid and vice-versa • Easy MSISDN change • Need for real-time roaming billing (Camel ph2) for prepaid and postpaid • Integration of mobile and fixed services • WLAN, ADSL, Video streaming, … • Premium services (SMS, MMS, WAP portal, …)

19. Fully secure billing platform • Fully redundant and clustered platform; • RTB able to manage simultaneously 500.000 busy calls; • State of the art data storage solution with online back-up (tapes are stored in a secure building outside our premises); • Individual authentication on the billing platform; • Secure access to the servers rooms with video cameras; • Fully compliant with Luxemburgish data protection laws; • Ongoing “Luxemburg e-certified” certification request; • Comverse already deployed more than 100 IN platforms.

20. Billing System

21. RTB/CRM integration • RTB and CRM provided by same supplier; Comverse, having 100+ references; • Calls are stored online in the CRM; • Activation and updates of subscribers is online from the shops, through the CRM, to the RTB, the switch, the VAS platform; • Bulkload of subscribers through the CRM for corporates.

22. RTB/VAS integration • SMSc is able to manage 60 SMS per second; • Online rating of all events in the RTB, based on the user profile for all VAS services (SMS, MMS, web, Downloads, …) • Online rating of W-LAN and DSL usage in the RTB • VAS services platforms are easy to integrate, being Comverse or not.

23. Real-Time Data Billing integration (DCMP) • DCMP engine provided by Comverse; • Acting as a proxy for all of our subscribers, prepaid or postpaid, in Luxembourg or abroad; • Sensitive charging based on content type, website, subscriber category, roaming scenario; • Online rating; • Premium website charging. Mobile & DSL subscribers are rated online through DCMP

24. W-LAN integration • W-LAN usage is rated online in RTB • Integration of the Radius tickets through the payment API • 1 single invoice for our subscribers • Differenciation between private and business usage • 1 integration for both prepaid and postpaid

25. Billing/SAP integration • All subscribers automatically pushed in SAP at creation; • All invoices, credit notes, debit notes are generated in the CRM and automatically stored in SAP; • All payments are loaded in SAP and automatically pushed in the CRM; • Autogenerated reports provide daily any inconsistency between SAP and CRM.

26. Billing and CRM operations • All users actions are logged in and can be tracked; • All platforms and services are located and operated in Luxembourg; • Integrated CRM system for shops and resellers; • Web self care interface for subscribers;

27. Tariffs • Defined in the RTB • Subscriber based tariff definition; • International and roaming calls are rated online through a defined matrix pricelist; • Closed users group charging; • Formal procedures follow-up for tariffs updates

28. WebBilling interface • All subscribers are rated online for all events  leads to • Better cost control for families and corporate • Better corporate / private usage follow-up • Alerting service offered by VOXmobile to avoid misuse • Opportunity to change tariff plan / account within a billing period • Bill split at subscriber knowledge (as soon as the corporate contribution is reached) • Fleet management tool that provides the fleet manager a global overview on the billed and unbilled for the lines he manages • Ability to hide part of the calling/called ids for banking secret reasons

29. IT & Billing department Head of IT & Billing department Billing coordinator SAP project manager WebMaster Software engineer Premium content Software engineer Billing & Intranet Systems Engineer Helpdesk

30. Converged leads to leading • Thanks to our converged RTB, VOXmobile is faster on the market: • 1 Single interface development for both prepaid and postpaid • Online billing information for all subscribers • Prepaid – postpaid toggle and vice-versa • Web self care interface offers the same functionalities -> NO MORE DIFFERENTIATION • Online management and financial reporting • 1 single data APN for all data services with tariff differentiation • Reduces Capex and Opex • Flexible tariffs offering and customization for subscribers