The New Age for MobileMobistar – Jean-Marc Harion

New Age for Mobile

• Mobile everywhere: where we are going to

• Mobile in Belgium: what happened

• Mobistar transformation: where we are

• Conclusion

we all:

• want to be

connected anytime

• use personal devices

at work

• use social networks

at work

• work at home

• watch video more on

computer than on TV

more and more individualistic telecoms and TV users

telecoms behaviors evolve faster and faster

Moore is still right

everything is connected to everything

60% of consumers will have Tablets

+ Smartphones by 2022

Source: Informa, Orange M&M’s, 2013

4G + fosters the emergence of smart devices

4G users grow by 20% YoY

more and more communication value captured by OTT, OEM and cablecos

Source: BCG, 2013, Report for ETNO

European Market capitalizations, Bn€

49%

60%66%

72%82%

29%

23%19%

15%

16%13%12%10%

2%

2008

446

5%

2012

609

2011

567

3%

2010

593568

2009

Telco

OEM

Cable

OTT

New Age for Mobile

• Mobile everywhere: where we are going to

• Mobile in Belgium: what happened

• Mobistar transformation: where we are

• Conclusion

Mobistar EBITDA cut by 124 M€ in 4 yearsdue to regulatory and operational tax pressure

EBITDA impact in Euro

-54

-89

-125

-178 -124

commitment period on mobile contracts cancelled by 2012 telecom law

Mobile termination, roaming

New telco law impacting mobile

contract duration

Processes designed by

incumbents

No impact from new telco law

Mobile prices in 5 years:

-50%

Fixed prices in 5 years:

+8% on voice, +25% on TV

a market situation unique in Europe that required a more balanced regulatory approach

Source: BIPT; January 2014 – Mobile and 3-play medium offers

Mobile prices amongst cheapest

in Europe

Fixed triple prices amongst most

expensive in Europe

40+ mobile operators Fixed regional duopolies

New Age for Mobile

• Mobile everywhere: where we are going to

• Mobile in Belgium: what happened

• Mobistar transformation: where we are

• Conclusion

Best mobile network

(and best-in-breed fixed)

Mobistar wants to be the leading connectivity provider in Belgium

Devices choice

and services

Open Content

and Apps

Wallets, Stores

and APIs

16

the overall quality of network remains a key element of differentiation and retention

Criteria of loyalty to operator brand (NPS)

loyalty program 5%

initial purchase 7%

devices/products in catalog 7%

invoicing and payment 7%

customer account management 8%

customer service 9%

price package 10%

regular communication 11%

value for money 16%

network performance 20%

customer service

marketing

offer

network

Source: Ericsson Mobility Report June 2013 (Ericsson Consumer Lab; base: 9,040 smartphone users in 9 countries), BCG

Mobistar cut costs and dividendsto invest in network

Network investments(in million euros)

70

41

29

49

2623

43%

14H114Q214Q113H113Q213Q1

Mobistar used 4G as a game changer

4Gindoor

coverage

=

2G

indoor

coverage

Nov 13

4G

Discovery: Mobistar

Customers

experiencing

4G on

smartphones

and tablets

March 14 End 15

4GCommercial

launch:

Fastest

network in

Belgium

April 14

4GRoaming

in France

Spain

Luxemburg

UK

Panther 60

including 4G

roaming

4G + in

Mechelen

Speed up

to 213

Mbps

May 14

4G99%

coverage in

Brussels

May 14

4G@BXL

we now operate the best 4G network in Belgium

340KMobistar 4G

customers

35% users

think 4G Internet is

better than @home

#14G outdoor

Coverage (85%)

4G22%

of national traffic

in 4G

#1indoor

Coverage (53%)

our customers’ mobile usages keep increasing in all services, data first, thanks to abundance

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q2

2012

SMS DataVoice

AUPU/month (in & out traffic)

Mobile Operator BillingMobile Cloud

1st in Belgium 1st in Belgium on IOS, Android, Windows 8

Mobistar innovates to improve mobile experience

Mobistar capitalizes on its leadership in M2M and IoT to create open mobile ecosystems

70% market share in Belgium

833 000 M2M SIM cards, +30% vs. 2013

A large variety of verticals

thanks to an open ecosystems of international partners

Best Mobile Network

with Shape, we give all employees abundance to support IT mobility

Mobile Voice for all Mobile Data for all

Applications

Tablets

MDM

MDM

MEAP

BYOD

Cloud

4G opens new territories to mobile

Mobistar innovates to substitute mobile to fix

In buses, tramways… … and taxis

Mobistar innovates to substitute mobile to fix

For students…

… and for businesses…

New Age for Mobile

• Mobile everywhere: where we are going to

• Mobile in Belgium: what happened

• Mobistar transformation: where we are

• Conclusion

Mobistar to connect 1st cable users in 2014

2010

Draft

decision

07/2011

Market

analysis

decision

09/2013

Technical

reference

offer decision

12/2013

Wholesale

pricing

decision

01/2014

Mobistar

Letter of

intent

07/2014

Tests

started

12/2014

1st users

connected

12 november 2015

Brussels Appeal Court rejected officially Telenet’s appeal against cable regulation: last roadblock

finally removed.

Mobistar cable: a game changer in Belgium

Ultra fast

Internet

a simple “plug and play”

customer experience

Mobistar: best broadband everywhere

Ultra fast

Internet

Dank U Merci Thank you