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Striving for innovation and Service leadership in CEE

Striving for innovation and Service leadership in CEE. Platform competition: from stand-alone to hybrid. Contact Person: Dr. Karim Taga Managing Director. Arthur D. Little Austria GmbH Kärntner Ring 6 A-1010 Wien Tel.: +43 1 51541-0 Fax: +43 1 51541-23 www.adlittle.at. Contents.

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Striving for innovation and Service leadership in CEE

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  1. Striving for innovation and Service leadership in CEE Platform competition: from stand-alone to hybrid Contact Person: Dr. Karim Taga Managing Director Arthur D. Little Austria GmbH Kärntner Ring 6 A-1010 Wien Tel.: +43 1 51541-0 Fax: +43 1 51541-23 www.adlittle.at

  2. Contents ADL_Report_20070209_A4_EN

  3. Estonia Russia Latvia Lithuania Belarus Poland Ukraine Czech Republic Slovakia Hungary Moldova Slovenia Romania HR BiH SCG Bulgaria Macedonia Albania DTH 1 Competing platforms – Outstanding achievements Operators in CEE countries are quickly adopting new telecom technologies, some are being very successful and some are even world leaders CDMA&HSDPA IPTV CDMA 800 Hybrid TV M-Payment DVB-H IPTV CDMA 450 CDMA 450 CDMA 450 FTTH CDMA 450 FTTH Flash-OFDM IPTV o. naked DSL 5 DTH Ops FTTH CDMA 450 HSUPA national WiFi mesh M-Payment DVB-H HSUPA HSUPA IPTV o. WiMAX HR = Croatia, BiH = Bosnia and Herzegowina, SCG = Serbia and Montenegro very successful first in the world first in CEE ADL_Report_20070209_A4_EN

  4. Estonia Russia Latvia Lithuania Belarus Poland Ukraine Czech Republic Slovakia Hungary Moldova Slovenia Romania HR BiH SCG Bulgaria Macedonia Albania DTH 1 Competing platforms – Digital TV developments Digital TV is evolving on a fast pace in the CEE countries, with only a few “white spots” IPTV IPTV IPTV DTH Hybrid TV IPTV DVB-H IPTV DTH DTH IPTV IPTV o. naked DSL DTH IPTV DTH IPTV IPTV IPTV IPTV o. WiMAX IPTV DVB-H IPTV DTH IPTV DTH HR = Croatia, BiH = Bosnia and Herzegowina, SCG = Serbia and Montenegro very successful first in the world first in CEE ADL_Report_20070209_A4_EN

  5. Estonia Russia Latvia Lithuania Belarus Poland Ukraine Czech Republic Slovakia Hungary Moldova Slovenia Romania HR BiH SCG Bulgaria Macedonia Albania 1 Competing platforms – Mobile broadband roll-outs Operators in CEE are employing different MBWA standards, some even combine both to achieve higher population coverage CDMA450 CDMA450 HSDPA CDMA 450 HSDPA 20+ Ops CDMA CDMA&HSDPA CDMA 450 HSDPA/IPW CDMA 450 CDMA 450 CDMA 450 Flash-OFDM HSDPA HSDPA HSDPA CDMA 450 HSUPA HSDPA HSUPA HSDPA HSDPA HR = Croatia, BiH = Bosnia and Herzegowina, SCG = Serbia and Montenegro very successful first in the world first in CEE ADL_Report_20070209_A4_EN

  6. Contents ADL_Report_20070209_A4_EN

  7. TD-(S)CDMA / UMTS-TDD HSDPA 2/ HSUPA 1 2 3 2 MBWA – Evolution of the 3GPP, 3GPP2 and Wimax There are at least three standard-families next to proprietary developments competing for dominance in MBWA Standards Environment for (Mobile) Broadband Wireless Access Body Family Mass-production Production Pilots Concept 3GPP GSM GPRS EDGE Ph1/2 UMTS/HSDPA 1 LTE/SAE HSPA + EdgeEvolution 1 Regional technology organizations 3GPP2 CDMAIS-95A CDMA 2000 1xRTT CDMA 1x EV-DO CDMA 1x Rev. A CDMA Rev. B CDMA Rev. C 2 802.11 802.11a 802.11b 802.11g IEEE 802.16 3 WiBro 802.16d (2004) 802.16e 802.16g PreWimax 802.16a 802.20 802.20 Proprie-tary MC-CDMA / Navini Flash OFDM / Flarion TDMA/FDMA/HC-SDMA / iBurst Standard(s) family *) 3GPP: ARIB, ATIS, CCSA, ETSI, TTA, TTC ADL_Report_20070209_A4_EN

  8. 1 2 3 2 MBWA – Evolution of the 3GPP, 3GPP2 and Wimax All three dominating standards (3GPP, 3GPP2, Wimax) show high improvements in uplink and downlink peak data rates in the next years 2006 2007 2008 2009 2010 2011 3 GPP GSM EDGE Radio Access Network Evolution EDGE Enhanced EDGE DL: 474 kbps UL: 474 kbps DL: 1.3 Mbps UL: 653 kbps 3 GPP UMTS Radio Access Network Evolution 3GPP HSDPA HSDPA/HSUPA HSPA Evolution 1 DL: 14.4 Mbps UL: 384 kbps In 5 MHz DL: 14.4 Mbps UL: 5.76 Mbps In 5 MHz DL: 28-40 Mbps UL: 11.5 Mbps In 5/10 MHz 3 GPP Long Term Evolution LTE/SAE DL: 100 Mbps UL: 50 Mbps In 20 MHz CDMA2000 Evolution 3GPP2 EVDO Rev 0 EVDO Rev A EVDO Rev B EVDO Rev C 2 DL: 2,4 Mbps UL: 153 kbps In 1.25 MHz DL: 3.1 Mbps UL: 1.8 Mbps In 1.25 MHz DL: 14.7 Mbps UL: 9.4 kbps In 5 MHz DL: 100 Mbps UL: 50 Mbps In 20 MHz Mobile Wimax Evolution Wimax Phase 1 Phase 2 3 DL: 32 Mbps UL: 4 Mbps 10 MHz 3:1 TDD DL: 46 Mbps UL: 4 Mbps 10 MHz 3:1 TDD Fixed Wimax Note: throughput rates are peak network rates ADL_Report_20070209_A4_EN

  9. 1 2 3 2 MBWA – Evolution of the 3GPP, 3GPP2 and Wimax Downlink spectral efficiency will converge with all platforms to ca. 1,8 bits/Hz/ sector thanks to the evolution of each standard Comparison of Downlink Spectral Efficiency Spectral Efficiency (bps/Hz/sector) 2.0 1.9 1.8 1.7 LTE, 2X2 MIMO 1.6 Future Wimax 1.5 1.4 EV-DO Rev C, 2X2 MMO 1.3 1.2 HSDPA+, 2X2 MMO Wimax Phase 2 2X2 MMO 1.1 1.0 0.9 0.8 EV-DO Rev B, MRxD HSDPA, MRxD, MMSE 0.7 0.6 HSDPA, MRxD EV-DO Rev A, MRxD 0.5 HSDPA, MMSE 0.4 EV-DO Rev A Wimax Phase 1 MRxD 0.3 HSDPA 0.2 EV-DO Rev 0 0.1 UMTS R‘ 99 0.0 1 2 3 UMTS to LTE CDMA2000 IEEE 802.16e Source: Rysavy ADL_Report_20070209_A4_EN

  10. 1 2 3 2 MBWA – Propagation and Frequency usage The frequency of operation has a significant impact on the deployment cost of a broadband wireless network Propagation characteristics Comments • Typically, as frequency increases, the network costs increases and the BTS coverage decreases • Prices for spectrum bellow 3 GHz are expensive because of the good propagation capabilities of the signal • Capex and Opex per square km increases with the frequency as a result for a more dense network and additional backhauling costs to feed the higher number of base stations • Up to 8 times more bases stations are required for a 3,5 GHz band than for a 900 MHz Source: Vodafonek ADL_Report_20070209_A4_EN

  11. 1 2 3 2 MBWA – Propagation and Frequency usage The average cost per square km deploying an HSPA infrastructure grows from 2 – 20 €k in a range of 450 MHz to 5 GHz Cell radius vs. frequency HSDPA Average cost per area (k€/ km2) Cell radius (km) GHz Source: Arthur D. Little analysis, Note: Total site cost estimated at 190 k€; of covered area: 5% in urban, 60% in suburban, 35% in rural ADL_Report_20070209_A4_EN

  12. 1 2 3 2 MBWA – Evolution of the 3GPP family More than 200 EV-DO and HSDPA devices have been commercially introduced, including PC Cards, notebooks with embedded modems, USB modems, smartphones and feature phones 1 • Dell Latitude • D620 / D820 • Embedded EV-DO • Lenovo Thinkpad • T60 / Z60 • Embedded EV-DO Fujitsu Lifebook Q2010 Embedded HSDPA • HP Compaq • nc6140 -6320 • Embedded EV-DO Franklin Wireless CDU-550 USB Modem 21 grams, EV-DO LG CU500 HSDPA, Bluetooth Motorola Q Windows Mobile 5 Smartphone Edition EV-DO Samsung SGH-ZV50 2 MP camera, AAC/MP3, HSDPA Casio W21CA 2.6 inch WQVGA,2 MP Camera, EV-DO Novatel WirelessMerlin S720 EV-DO Rev. A ZTE MF330 WCDMA / HSDPA Source: 3Gtoday.com ADL_Report_20070209_A4_EN

  13. 1 2 3 2 MBWA – Dual handets DO and GSM/GPRS There are already many world mode devices available for both standards -CDMA and UMTS World Mode Devices 2 EV-DO + GPRS Samsung SCH-i819 Samsung SCH-A790/W109/A795/IP-A790 LGE W800 Samsung SCH-W399 Samsung SCH-i830 EV-DO LGE KW-9200 EV-DO Amoi CMA8301 EV-DO Motorola A840/A860 Samsung SCH-W219 LGE W810 Samsung SCH-W379 Yulong Telecom Coolpad 728 Amoi V810 UTStarCom T66 Source: CDG ADL_Report_20070209_A4_EN

  14. 2 MBWACase studies – O2 CZ Telefonica O2 CZ was the first operator in the world to deploy a CDMA2000 network. Additionally it offers HSDPA to its customers, thus effectively employing both standards Case Study Overview CDMA coverage • EV-DO Rel. 0 coverage • EV-DO Rev. A coverage (up to 30% of the population until 2007 are planned) Technical information • 3G Network: CDMA2000 (1X EV-DO). EV-DO rel.0 commercial launch in August 2004, rev. A in November 2007. • It further holds a UMTS license and offers HSDPA services in Prague and Brno. A 50% population coverage is planned by end of 2007 • Operating Frequency: 450 MHz (CDMA)and 2100 MHz (UMTS) • Infrastructure Vendor: Nortel (CMDA), Nokia (UMTS) Other • Czech Republic was the first country in the world to deploy CDMA2000 • Through the upgrade of the network from rel.0 to rev. A, O2 hopes to offer new services such as music downloads, VoIP and high quality PTT Source: Company information, Arthur D. Little analysis ADL_Report_20070209_A4_EN

  15. 2 MBWACase studies – O2 CZ Mobile broadband services are marketed under single brand – the customer selects a modem and a tariff to receive the relevant services Case Study Products Devices offered (non exhaustive) Basic information • Voice services are offered over GSM/UMTS • Data services are offered over CDMA/HSDPA/EDGE/GPRS/WAP • 3G data products are marketed under single brand – customer chooses a modem type • There is also a bundle of fixed and mobile called Internet Komplet – ADSL+CDMA package, however it does not provide a converged solution • Products are offered to both: residential and business subscribers • No VoIP services are offered over CDMA so far Broadband prices/month* • Internet mobil 256kbit (CDMA) – 15€ (fair use – 600mb/7 days) • Internet mobil plus 512kbit (CDMA, HSDPA) – 26,6€ (2,8GB fair use) • Internet Komplet – 2mbit ADSL / 512kbit CDMA – 30,4€ (10GB/2,8GB respective fair use) Hybrid modem CDMA/HSDPA Source: Company information, Arthur D. Little analysis; *) excl. VAT ADL_Report_20070209_A4_EN

  16. 2 MBWACase studies – Sferia Sferia is the only provider in Poland offering fixed and nomadic telephony, as well as broadband in the CDMA standard. It activities are however limited to Warsaw and suburbs Case Study Company overview Services and prices • Fixed and Nomadic telephone (0.05 PLN /min) • Internet (EV-DO up to 3.1 mbit) • Connection via USB • Activation fee as low as 1PLN • Subscription fees start from 41PLN (600MB cap) • Fax/Voice messaging • Additional services Technical information • Network: CDMA2000 1X • Type Of System: WLL • Operating Frequency: 850 MHz • 3G Network: 1xEV-DO Rel. 0 Commercial launch date: March 1, 2007. 1xEV-DO Rev. A Commercial launch date: October 2007 • Infrastructure Vendor: Alcatel-Lucent Other • Sferia offers services in Warsaw and the suburbs • Offers fixed and nomadic telephony, which is a novelty on the Polish market • The recipients of services are small and medium sized companies and individual clients. • As of late 2007 it had over 40,000 customers • 60 base stations provide a 93% voice coverage and 70% Internet coverage in Warsaw area Devices offered nomadic internet fixed terminal Source: Company Information, Arthur D. Little; ADL_Report_20070209_A4_EN

  17. 2 MBWACase studies – Nordisk mobiltelefon Nordisk Poland has acquired a CDMA 450 license and plans a country wide roll-out until 2009, offering broad services for both residential and business Case Study Company overview Planned coverage in Poland Basic information • Nordisk Mobiltelefon AB was established with the objective to deploy and operate premium grade mobile telecommunications networks • CDMA2000 3G technology with radio transmission on the low frequency 450MHz and 410MHz bands • Nordisk Poland has acquired a license in the 410MHz band, issued until 2020 • Planned commercial launch in Poland: 2008 Services portfolio • Mobile broadband: EV-DO Rev. A (3.1/1.8 mbit DL/UL) • 3G mobile telephony • Fixed wireless telephony • Machine-to-Machine: remote device control Coverage end 2007 2007: 79 base stations Planned 2009 coverage 2009e: 750 base stations Source: Company information, Arthur D. Little analysis ADL_Report_20070209_A4_EN

  18. 2 MBWACase studies – MWBA in Slovakia Although xDSL is the most spread technology, MBWA is quickly becoming a competing technology, threatening the fixed broadband business market snapshot Broadband connections by technology Comments • Broadband technology is developing quickly in Slovakia • 70% of all accesses in the mid 2007 account for 2 competing technologies: xDSL and MBWA • MBWA was launched in late 2006 and quickly became a success with over 150k subscribers in mid 2007, with 2 access technologies: • HSDPA (Orange, T-Mobile) • Flash OFDM (T-Mobile) Connection (in tsd.) CAGR 85% Source: Ministry of Telecommunication, Arthur D. Little, * note: for most part Wi-Fi ADL_Report_20070209_A4_EN

  19. 2 MBWACase studies – Internet connectivity growth Mobile internet access is becoming extremely popular and might pose a threat on the development of the fixed line internet access business Slovak internet subscribers (fixed vs. mobile) Comments • Internet usage in Slovakia has shown strong growth since 2002, with the strongest risen annual growth registered in 2006 • Growth drivers include the variety of ISPs offerings services, the country’s relatively high PC penetration (second amongst the CEE countries) and increasing economic wealth • Internet penetration is growingoffering chances for growth;However, mobile being thedriver Penetration (% of population) Subscribers (in Tsd.) Source: Ministry of Telecommunication, Arthur D. Little ADL_Report_20070209_A4_EN

  20. 2 MBWACase studies – Mobile and Fixed platforms With today's high performance of BWA systems a variety of applications in the fixed and mobile environment can be supported with the same platform Segment of broadband wireless access technologies Fixed Broadband wireless access Mobile Broadband wireless access HSxPA, Wimax (802.16e), iBurst, FLASH OFDM*, UMTS TDD*, CDMA EV-DO*, MC-CDMA … HSxPA, CDMA-EVDO*, iBurst, UMTS TDD*, FLASH OFDM*, MC-CDMA, Wimax (802.16e) … *) Technological standards supporting the 450 MHz band being currently tendered in many markets together with the 3,5 GHz licenses ADL_Report_20070209_A4_EN

  21. 2 MBWACase studies – Austria One fixed and mobile Fixed Wireless Access offer bundling „Mobile Data and PSTN“ including 1Gb for € 20,- started by One in Austria Case studies H.U.I*) H.U.I. Talk Slogan: 0 Cent for calls in the fixed network while surfing with several PCs or Laptops in the internet H.U.I Talk (only available with H.U.I) • The mobile Broadband offer of ONE • Emotional positioning with 4 key statements • Very fast: 100x faster than 56k modem • very easy to use: just connect PCMCIA or USB modem and get started • Very cheap: 3 Gigabytes for € 20,- • Full cost control: fixed rates w/o additional costs • reduction of Download speed to 56 Kbit/s • Refill Option – 5 € for the whole download volume (for H.U.I: 5€ for an additional 3 GB) • ONEs Mobile Broadband product line H.U.I. has been extended with H.U.I Talk • compatible with old fixed line telephones (plug and phone) • possibility to surf in the internet with several PC’s while phoning • possibility of fixed line number porting • ONE’s FMS offering benchmarked with Telekom Austria Tik Tak Privat (the basic fixed line voice product of the incumbent) 0 Cent into fixed network up to 1.100 Min/month above that limit € 0,20/minute Prices significantly lower than fixed line incumbent Telekom Austria Source: Company Page, Arthur D. Little Analysis**) Incumbent’s lowest offer (price without subscription, just ADSL) H.U.I.: Höllisch Utraschnelles Internet is a wording and a new brand meaning “ultra fast internet connectivity in German” ADL_Report_20070209_A4_EN

  22. 2 MBWACase studies – Czech Republic U-fon fixed and mobile U:Fon, a Czech Republic telecommunication start-up, is rolling out CDMA network to offer inexpensive data and voice services Case Study U:Fon Czech Republic – CDMA Offering – May 2007 Selected CDMA Devices CDMA Data Packages Integrated modem and wireless phone USB-Modem CDMA Coverage CDMA EVDO rev A andCDMA 2000 1xRTT Source: Arthur D. Little analysis; * FUP applied if monthly limit is used ADL_Report_20070209_A4_EN

  23. 2 MBWACase studies – Partnerships H3G while partnering with well known web players and handset manufacturers is drastically stimulating the usage of broadband services leading to substantial bandwidth requirements Partnering with well established international brands… …and providing an integrated offer on the mobile device… …leads to a totally new user experience and much higher bandwidth consumption Source: H3G Austria ADL_Report_20070209_A4_EN

  24. 2 MBWACase studies – Bundles H3G launched innovative FMC offer – mobile data + content bundle with a substantially subsidized Playstation 3 Product promotion Comments • H3G Austria effectively addresses its primary target group with an innovative FMC product bundle • First bundle of games console with broadband contract • When bought with a 24 moth contract of H3G Data fair (15GB – 24€/month) and a WLAN router for 49€ the Playstation3 comes for 149,- instead of 399,- • H3G Data Fair is the cheapest mobile BB tariff in Austria (in terms of GB/monthly base fee) • Free TV is included in H3G Data Fair People under 27 get a 20% discount on top! Source: Company page, Arthur D. Little Analysis ADL_Report_20070209_A4_EN

  25. 700.00 600.00 500.00 400.00 300.00 200.00 100.00 2 MBWACase studies – Metro vs Rural Telstra launch of mobile broadband increased traffic by 600% in less than 12 months Wireless data traffic National Metro vs. Rural Next GTM network Country Data Traffic Volume (BH Mbps) Data Traffic Volume (BH Mbps) EV-DO Metro Country 2G and others 0 Metro Oct 06 Dec 06 Feb 07 Apr 07 Jun 07 Aug 07 CDMA Packet Data Next G Packet Data • Next GTM growth curve ‘strong’ • Rural areas are generating significant data volume ADL_Report_20070209_A4_EN

  26. 2 TVCase studies – Competitive platforms There are six forward TV distribution possibilities and a much higher number of options for digital interactive TV using hybrid solutions for the backward channel, operators have started to use in the Forward and Backward channels a combination of options Possibilities for Interactive Digital TV Forward TV-signal distribution Backward channel for iTV SAT (DVB-S) Dial up, DSL, WiMAX, 3G* (IP/iMHP) 1 Terrestrial (DVB-T) Dial up, DSL, WiMAX, 3G* (IP/iMHP) 2 Cable (CVB-C) Cable(IP/EuroDOCSIS) 3 DSL, FTTH (IP-TV) 4 DSL, FTTH (IP) Air Wireless (DVB-T) Air Wireless (IP/EuroDOCSIS) 5 DSL + Terrestrial 6 DSL (IP) * UMTS/HxPA, CDMA Rev A/B, ADL_Report_20070209_A4_EN

  27. 2 TVCase studies – Competitive environment It is important to understand the competitive forces driving the TV market and the movements of all stakeholders in considering a content strategy 1. Customer segments 2. Telecommunication sector 3. Regulatory Content Distributors • PVR / time-shifting • Broadband deployment • Quadruple-play • IPTV-like offers • Moving away from PC • Video offers emerging • Mobile and Fixed services Online Portals Telco's Incumbent Telco's Content Owners Device Oriented Players Alternative Telco's • MVNOs • Broadband deployment • Plug-and-play offers 4. Technology platforms ADL_Report_20070209_A4_EN

  28. 2 TVCase studies – New entrants All three models could be accompanied by web services for customers, allowing them to share, store and interact on multiple devices and CPEs Example Comment • Provide overarching connectivity for seamless media access across TV, Computer and mobile device (Phone, Mediaplayer etc.) • Premium content is only one aspect of the future media set: free- and user generated (own) content will become part of the equation • The user will be able to create, store, edit and share content via Mail, Communities or UGC sites • Additional web-services are a key lever to increase retention rates (e.g. eMail address, online storage space) Content store UGC / Community Television Phone / mobile device Computer Online services Set-Top Box ADL_Report_20070209_A4_EN

  29. 2 TVCase studies – DTH vs IPTV DTH and IPTV differ in the way the content is encoded, delivered and broadcasted. When looking for supplementing partnering options, there are different options to look at Illustrative Content flow from origination to viewer Uplink 1 Satellite IPTV 2 Editing/ Programming Broadcasting/Multicasting Production Encoding Delivery Reception Content aggregation and Distribution (typically DTH/Sat Op.) Content Production/Aggregation Content production, aggregation and Distribution (typically DTH/ Sat Op.) Third party content providers Incumbent / Altnet operating IPTV ADL_Report_20070209_A4_EN

  30. 2 TVCase studies – DTH in Romania The relative young DTH market is already relatively crowded… market snapshot Comments • First DTH services in Romania were offered at the end of 2004 • Only 2 years later there were already 5 DTH operators, resulting in aggressive pricing • Being the last entrant, Romtelecom’s Dolce TV in just 4 months managed to become the second largest operator • 6th DTH operator is rumored to enter in September 2008 Source: Informa, Company websites, DTH Romania 1) for Romtelecom voice subscribers, else € 5; 2) Installation, antenna, receiver, activation; 3) estimated consumer by end ’07 are 400.000 ADL_Report_20070209_A4_EN

  31. 2 TVCase studies – DTH competition in Romania – Dolce TV Despite a crowded DTH market, Dolce TV has sold 400k subscriptions in only a year after its launch Case Study Dolce TV – Overview Subscribers • DTH provider launched by the incumbent Romtelecom • Started operations in November 2006 • Within 6 months sold 232k subscriptions • As of March 2007, managed to become the second largest DTH provider in Romania • Romtelecom invested €15 million into DTH • Will also start IPTV trials late 2007, and launch operations 2008 Base Offer • Base package provides 45 channels for €5/month (and only €1,95 for Romtelecom voice customers) • Full package includes broadcast package plus up to 25 additional channels (theme channels like sports, children, science, news, film and music) • Installation is for free, customer just pays ca. €90 for the antenna and activation fee • Does not offer any Internet services yet (planned in ’08) Premium Offer • Premium packages for HBO, MTV and other channelsavailable in Hungarian and English language • Monthly fee (on top of base offer): 0.8 – 3.9 EUR / month Subscriber in Tsd. growth 1233% Market assessment • Informa projected a 18% growth for the DTH market between 2006-2007, assuming an organic growth of the subscriber base • However, Dolce TV has increased its subscriber base almost eightfold in just half a year, and more than tenfold in just a year Source: Company Information, OTE, Broadband TV news, Arthur D. Little; ADL_Report_20070209_A4_EN

  32. Contents ADL_Report_20070209_A4_EN

  33. 3 Conclusion The success stories are based on 5 key success factors Key learnings 1 Market conditions • Limited broadband competitive environment in high performing fixed infrastructures • Demand for broadband and entertainment Availability of “a” technology • It is not about a religious “standard” debate, it is about having a “working” infrastructure in place, network elements and multiple devices available from multiple suppliers (e.g. mobile handsets, data cards, STB …) 2 Coverage • Provide services where consumers need them it • Leverage existing legacy systems (backbone/transport, backhaul, sites, interconnections links etc.) 3 • Mobile broadband is directly competing with fixed broadband services • Tariff plans fit multiple customer segment needs, trade off between speed, capacity and usage patterns (e.g. prepaid mobile BB, DVB-H in Albania ..., DTH in Rumania …) Attractive and innovative pricing 4 • Attractive packaging, clear and simple communication and • Strong mobilization of “all” existing and “new” distribution channels were the key components for the success Leverage the “brand” - Creation of a “need” and ability to sell it 5 Source: Arthur D. Little ADL_Report_20070209_A4_EN

  34. Interesting future … • …high impact … • high uncertainty ADL_Report_20070209_A4_EN

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