John Munnery

Chairman of the Board of Directors, TransTelecom Ltd.

Question 1:

Question 2:

Question 3:

So What?

Now have I gotYour

attention?

• Broadband direct access to customers

• Bearer for all services – Internet, Voice (IP), Video

• Equally applicable to business (VPN, etc) and consumer use

• Optimized for data – upload as fast as download

• Capability for quick nationwide coverage

• New generation pricing model – subscription based rather than event driven; on-net eat as much as you can get …

Commercial Characteristics of WiMAX

Personal Broadband Anywhere

• Communicate Anywhere• Collaborate Anywhere• Applications Anywhere• Content Anywhere• Print Anywhere• Entertainment Anywhere• Monitor Services Anywhere• Simply the biggest step change in the market since the advent of cellular

The Vision of the Future

• IEE 802.16 standard defines a cellular structure, with cells of size comparable to GSM (up to10’s of kilometres). WiMAX is not WiFi!• Evolutionary approach – fixed/nomadic/mobile/embedded devices ($10 chip set is on the way)• 802.16d networks are already operating profitable static models• 802.16e mobile networks will be a reality in early 2007• TDD pre-16e networks are already rolling out; we convert this month from 16d (FDD) to TDD• Roaming will follow in due course

The current state of play

• First offering to be static CPE, with indoor or outdoor antenna depending on position and capacity needs of customer; we bundle the CPE with the subscription (like ADSL)• PCM-CIA cards in Q4 2007; USB devices on the way• New Laptops enabled from Q1 2008• Hand held devices (phones, PDAs, etc) from 2008• Other embedded devices in 2008/9• VOIP is bundled – with several access systems – PC phone, IP phone or Analogue Telephone adapter• Synergy with WiFi – WiFi base stations may be driven by WiMAX for hot-spot coverage

Products

Serving the Traditional broadband customer – the basic offering

There are four key propositions for serving thetraditional segment of fixed broadband connectivity:

Availability: We will deliver WiMAX to areas where broadband was not available before

The phone line in the box: If customers never want to see the incumbent again, they can pick up their WiMAX connection in the supermarket – carry it home, plug it in and start to talk & surf.

Price: With WiMAX, our customers save the monthly base fee to the telecom operator – there is no extra fixed phone line subscription

A totally new customer experience: Whilst keeping old habits simply plug the phone set out of the wall and connect it to the CPE of WiMAX

The Austrian Example

Our opening proposition:• A symmetrical DSL service for slightly less than BTC DSL rate• Bundled with a VOIP phone line free of monthly subscription• Cheap VOIP call charges – especially international• Fixed CPE included in the deal (effectively leased)

The TransTelecom Vision

• 16e technology, using 16d as a stepping stone in the short term (now almost over)• Fast route to NGN via IMS (enabling interoperability between existing voice and data networks, and providing multimedia services for fixed and mobile applications)• As much investment in the core network as in the access technology• Blended fixed and mobile applications• How much are we spending? – a Capex budget of some 25m Euro over the next 3 years• When will we launch? – our soft launch started in early April in Kurdjali for market and technical test purposes; we are now present in 5 cities and in 10 by end May; 100 new sites now under procurement for deployment from Sep

But this is the end Goal:

Thank You for Your Attention!

john.munnery@transtelecom.bg