KPN the Royal Dutch telecom company at CANTO June 19 through June 23rd Feddo Hazewindus

1. KPN the Royal Dutch telecom company at CANTO June 19 through June 23rd Feddo Hazewindus Vice President KPN INS Inc

2. Holland… small country, impressive achievements

3. Leading innovator through the ages

4. World renownend engineering, claiming land over water

5. One of the world’s largest sea ports

6. First commercial aviatior in the world

7. Holland… a global oriented monarchy

8. Crowned and renowned

9. KPN Highlights • Operations in Holland, Germany and Belgium • 17 million mobile & 7 million fixed subscribers, 1.5 million ADSL customers • Mobile brands are KPN mobile, E-Plus and Base. • 31,000 employees • Revenues in 2004 of € 11,819 mn • Profit after tax 2004 € 1,511 mn • Free cash flow 2004 of € 2,271 mn

10. Regional Presence: our locations North & Central America Western EuropeHead Quarters Eastern Europe Asia Asia Latin America & the Caribbean Middle East Africa

11. Mobile market developments Trends: • Decreasing Mobile Termination Rates (MTR) leads to lower ARPU for both fixed and mobile operators. • Emergence of preferred roaming. • End user rates decrease due to intense competition, e.g. monthly flat fee packages. • IP-based services form threat to traditional circuit switched services. • Mobile call volumes continue to grow, fixed volumes stabilize or even decrease. • Emergence of Value Added Services, e.g. 3G. • Quality orientation to increase end user satisfaction. • Integration of voice and internet/data. End user ARPU can be protected and increased by: • Value added services to develop new revenue sources: • Mobile data, e.g. 3G and SMS Transit • Preferred roaming solutions • High quality global roaming coverage (‘on net’ everywhere) to increase current voice ARPU.

12. KPN’s answer: The Mobile Matrix A complete wholesale portfolio for Mobile Operators with a worldwide coverage Voice Premium Voice Data MMS Interworking Messaging Services SMS Interworking Video Telephony 3G Video Services M2F Video Telephony 3G Content Exchange Mobile IP Interworking IPX Roaming Global Mobile Signaling Roaming Broker Services Intl. Roaming Services Preferred Roaming Services GPRS Roaming Exchange Customer driven development

13. The Mobile Matrix, Voice:Premium voice KPN offers Premium Voice Services to Mobile Operators: • High quality mobile & fixed termination, anywhere in the world • Direct connectivity with other MNO’s • High Quality of Service: • Fax support guaranteed to all fixed destinations • Roaming support guaranteed to all mobile destinations • Guaranteed end-to-end CLI delivery to a high number of mobile destinations • Increase in ARPU through high quality routes • Use of direct interconnects and selected high quality suppliers • Emergency overflow routing available • Premium support of our International Service Center 24/7 Fixed operator Mobile operator KPN Mobile operator Mobile operator

14. The Mobile Matrix, Messaging Services:MMS/SMS Interworking • Increasing ARPU trough total global MMS and SMS termination • Service based on existing 3GPP / GSM Association standards • Anti spamming support • Single contract and financial settlement • Conversion GSM and T/CDMA (SMS) SMS/MMS term SMS/MMS orig KPN MNO No bilateral relationships necessary

15. The Mobile Matrix, Roaming Services:International Roaming Services Global Mobile Signalling • Increasing ARPU through global SS7 signalling and SMS/roaming support • Single point of access to carry your mobile roaming messages. GPRS Roaming eXchange (GRX) • Inter-PLMN backbone for GPRS roaming • The standardised basis for other mobile data services And more is coming… • Preferred roaming • ‘Steer’ your roaming traffic to the network of choice (SS7-based solution) • Roaming brokerage • One single point of contact for all your roaming agreements

16. 3G creates a new type of traffic … ... and KPN has the solution! The Mobile Matrix, 3G:3G Services 3G Mobile-to-mobile video telephony • The circuit switched mobile-to-mobile solution • Large geographical coverage, 80+ networks. • Roaming support and CLI delivery guaranteed. • End-to-end 64 Kbits UDI routes based on ISUP V2. • Use of direct interconnects and selected high quality suppliers. 3G Content eXchange • Providing the bridge between circuit switched 3G connections and IP domains • Circuit switched 3G connection provides high quality video experience on short codes and premium rate numbers. • Gateway enables UMTS subscribers to access streaming content and to video conference with Internet users. • Hosted platform (minimizes initial investment and short time to market).

17. Example 3G service: live TV International and national/regional content Other possibilities: • Video conferencing with internet users • TV / movies / sports / music on demand • Games, quizzes and dating formats

18. KPN’s Mobile Matrix Thank you for your time! Any questions? Feddo Hazewindus f.j.u.hazewindus@kpnins.com

19. Royal solutions at a wholesale price

20. 3G – a promising market? Number of 3G users is growing rapidly … • Triple digit growth: From 22 million users in March 20051 to 70 million users by the end of 20052. • UMTS-penetration still low: in March 2005 only 1.25% of all mobiles were UMTS/WDMA-equipped1. … and the content market looks promising … • Adult content is the short term killer app: Italian 3G adult content market already over EUR 140 million in 20043. • Total mobile entertainment market will reach $17.6bn in 2005, up by 71% on 2004, and will top $59bn by 2009. After gambling (33%) and games (31%), the most popular entertainment services in 2009 will be music (16%) and sports (8%)4. … but consumer adoption and satisfaction is still low! • "More than half of 3G traffic will be voice, no matter how much we talk about video calls, video streaming and mobile games“5 • 77% of UK phone users have never used any new data services such as picture and video messaging or gaming and ring tone downloads and a mere 12% of actual mobile data users profess to be completely satisfied with the service6. 1 Informa 2 Nokia 3 Eurispes 4 Juniper Research 5 Tomi Ahonen 6 NOP Survey

21. Global Voice Platform For international voice and interconnection services Network PoP PlannedPoP Our Points of Presence

22. The Mobile Matrix, Data:3G Mobile-to-Mobile Video Telephony Lessons learned after 14 months…. What can cause customer dissatisfaction and reduces YOUR revenues? Routing: • Use of low quality / unstable routes, e.g. VOIP or GSM Gateway routing. • Non-direct routing, too many international carriers involved. • Lack of emergency overflow routing. ISUP: • No ISUP (V2) available in the national domain (e.g. Japan). • Lack of ISUP (V2) support in international routing (e.g. loss of H.233 and H.245). Data: • Echo cancelling. • Compression equipment. Other: • Failing access to VideoMail of outbound roamer if international carrier of host MNO doesn’t support 3G routing.

23. The Mobile Matrix, Data:3G Mobile-to-Mobile Video Telephony KPN 3G MNO B 3G MNO A End-to-end 64Kb/s UDIISUP V2 and CLI delivery KPN offers Mobile VT termination with a premium QoS to over 70 destinations. • Following the mobile industry, rapidly offering VT termination to newly deployed 3G networks. • High Quality of Service: • End-to-end 64 Kb/s UDI routes  no echo canceling or compression • End-to-end ISUP V2  transparent transport of all parameters, including H.223 & H.245 (octet 5) • Use of direct interconnects and selected high quality suppliers (max. 1 intermediary party involved) • Emergency overflow routing available • End-to-end roaming (MSRN) support and CLI delivery guaranteed • Differentiated billing available (currently TMR, option for advanced billing on ITC=UDI & UIL=H.223&H.245 under investigation) • No necessity for separate video telephony trunks (but supported on customer request) • Premium support of our International Service Center (24/7), including 3G testing facility, possibility for SLA, and quality reports.

24. The Mobile Matrix, Data:3G ContentXchange KPN offers a 3G Content Exchange including M2F Video Telephony • Bridge between a circuit switched 3G connection and IP domains • Circuit switched 3G connection provides high quality video experience on premium rate numbers or short codes • Gateway enables UMTS subscribers to access streaming content and to video conference with Internet users • Hosted platform (minimizes initial investment and short time to market) KPN Carrier Services3G VideoGateway Service 3G VGW 3G MobileOperator KPN Internet Streaming serverhosts content Web interface to upload ormaintain content Videoconferenting Capability

25. How does it work? KPN Carrier Services3G VideoGateway Service 3G VGW TV Orange Internet KPN Streaming serverhosts content Web interface to upload ormaintain content Videoconferenting Capability Easy to implement: • Hosted solution: minimizes initial investment and reduces time to market. • Easy to manage: content upload done through easy web access. • No complex billing: per second billing of premium rate number / short code. • Successful model: fit to current voice model supports rapid customer adoption. • Orange customer dials premium rate number or short code. • Orange hands over call to KPN (e.g. through existing interconnect). • KPN establishes connection to 3G ContentXchange. • Orange customer makes selection out of presented menu: TV, video conferencing, streaming content, … • Service is delivered to Orange customer.

26. Our Current Portfolio

27. Our Competitive Edge • Established track record as a wholesale partner • High customer satisfaction • High flexibility in meeting customer demands • Innovative and customised portfolio of services • Many connection possibilities, fast and simple • Global network with more than 234 (direct) interconnects • High quality network performance • Pro active network management (24/7) • Associate member of the GSMA

28. Our Organisation Senior Vice President Wholesale Voice Service International Edwin van Ierland Product Management Gert-Jan Huizer Data Management & support Baldewijn Westerbeek International Billing & Collection Johan Bogaard International Sales Wouter Knoester International Streaming Hiske van Mierlo KPN INS Inc. Feddo Hazewindus North America Patrick Meijer South America Central AmericaSierk Coolsma Western EuropeWouter Knoester Africa Konrad Mostert Asia Pacific Paul Baaij Eastern Europe Dominique Nagy Middle East Lodewijk Bout WSD International John van Grinsven NOC International Claire Mengelberg