1. UK Mobile Market Overview May 2010

2. Setting the scene Source: ComScore Feb 10, Incentivated Analysis Global mobile media penetration compared to other media and technology

3. UK: The top 20 currently owned/active handsets The Top 10 handsets represent c. 21% of the UK devices; Top 20 = 32% Source: ComScore Feb 10, Incentivated Analysis Note: iPhone includes iPhone, iPhone 3G, iPhone 3G S 32GB, 3G S 16GB N95 includes N95 & N95 8GB 6500 includes Classic & Slide RAZR V3 includes V3 & V3i Curve includes 8520, 8300 & 8900 Total UK market size: 48,500,000 Devices per 100 of population: 84.49 (Global avg: 59.3)``` #1 Apple iPhone #3 Nokia 5800 #5 Motorola Razr V3 #2 Nokia 6300 #4 Blackberry Curve ↑ - 0.96% 463,627 2330 Classic Nokia 20 ↑ - 0.97% 472,488 W595 Sony Ericsson 19 ↓ 14 0.99% 480,440 Cookie KP500 LG 18 ↑ - 1.02% 495,498 E71 Nokia 17 ↑ - 1.03% 499,348 6230i Nokia 16 ↑ 17 1.05% 510,036 SGH-E250 Samsung 15 ↓ 12 1.06% 512,616 2630 Nokia 14 ↓ 9 1.09% 528,971 K800i Sony Ericsson 13 ↑ - 1.30% 632,864 C902 Sony Ericsson 12 ↑ - 1.39% 675,170 Tocco Lite S5230 Samsung 11 ↑ 11 1.42% 687,237 SGH-J700 Samsung 10 ↓ 5 1.46% 709,900 SGH-G600 Samsung 9 ↔ 8 1.56% 754,693 Tocco SGH-F480 Samsung 8 ↓ 3 1.58% 765,969 N95 Nokia 7 ↓ 4 1.72% 835,661 6500 Nokia 6 ↑ 6 1.75% 849,703 RAZR V3 Motorola 5 ↑ 20 1.76% 854,616 BlackBerry Curve RIM 4 ↑ 7 2.35% 1,140,642 5800 Nokia 3 ↓ 1 3.16% 1,534,596 6300 Nokia 2 ↑ 2 4.66% 2,260,961 iPhone Apple 1 Change (vs Sept '09) Previous Rank (Sept ’09) Market Share Subscribers Model OEM Rank

4. UK: mobile handset penetration by manufacturer It’s not all about the iPhone - there is a “long tail” of manufacturers UK Handset Manufacturer (installed base) Millions Source: ComScore Feb 10, Incentivated Analysis

5. Smartphones in the UK Breakdown of Smartphone operating systems in the UK (Adults 13+ for the 3 months ended Jan ‘10) %age of Smart Phones in the UK (Adults 13+ for the 3 months ended Jan ‘10) Source: ComScore Jan 10 Smart phones represent nearly a quarter of the market – but UK still dominated by older handsets (which CAN still access the internet) (11m) (5.1m) (2.1m) (2.3m)

6. Number of Smart Phones subscribers in the UK (000s) (Average number of subs for the 3 month ended) Source: ComScore. Note, Operating Systems: Microsoft or Palm or RIM or Symbian or Apple or Google Smart phones in the UK But the strong growth of smartphones continues – taking approx. 3 years for a new mobile technology to become market dominant +41% YOY +39% 4M Jan 10

7. Mobile subscriptions market share, by network operator (%age) (Total number of subscriptions = 48.5 million) Network Operator Market Share in the UK OFCOM has approved the Orange & T-Mobile merger of UK business – Autumn ‘10 Source: ComScore. All adults 13+, 3 months to Jan 10

8. Source: Ofcom, 2008 Percentage of UK Population take-up Mobile has greater geo-demographic reach than fixed line internet Mobile reaches all social segments

9. Active Connections per 100 population (includes dongles) Source: OFCOM August 2009. 3G Penetration in the UK 3G (which enables better internet and data services access) now has around 35 active connections per 100 population

10. Postpay versus prepay contracts in the UK Contract type in the UK Prepay (PAYG) still dominant, but slowly declining market share. Contracts now including “all you can eat” data plans as standard. Source: OFCOM, August 2009. 33% 39% 40% PAYG Contract Contract PAYG

11. Source: ComScore More SMS users in 55+ group than any other Number of subscribers in the UK (000s) (Average number of subs for the 3 month ended Jan 10)

12. Source: ComScore 25-34 age band are the most prolific users of mobile media features Index vs population as a whole (Average number of subs for the 3 month ended Jan 10)

13. Billions of Messages sent Source: OFCOM August 2009. Messaging volumes continue to grow (UK) Data revenues are now larger than those from voice Growth Rate 28% 165%

14. Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users Percentage Used Service SMS used by all age groups SMS is the entry point for many mobile marketing campaigns

15. Percentage Accessed email (work or personal) from mobile Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users Email accessed on mobiles by all age groups Increasingly, emails are read “on the go” across a variety of devices: ensure your emails and links are mobile friendly

16. Percentage of subscribers in each age and sex band who access mobile internet Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users Internet accessed on mobiles by all age groups internet sites are increasingly looked at “on the go” across devices

17. Mobile internet usage now significant (40% UUs) Strong growth in mobile internet usage driven by fall in data costs 24% year on year growth between 2008 and 2009 Subscribers accessing mobile internet Source: Comscore 3 month rolling average

18. Mobile internet accessed by 19m unique users A growing audience, with daily use becoming more prominent Source: Appetite, Yahoo! March 2010 7.6 m subs 4.9 m subs 6.4 m subs Subscribers accessing mobile internet Usage key: Heavy = daily use Medium = 1-6 times per week Light = <1 per week

19. Source: ComScore. Note, Operating Systems: Microsoft or Palm or RIM or Symbian or Apple or Google Mobile internet access amongst all phone subscribers in the UK (Adults 13+ for the 3 months ended Jan 10) 50% of unique internet users have ordinary phones However smartphone owners are heavier users Smart OS used by Nokia, SonyEricsson etc

20. Source: Appetite, Yahoo! March 2010 Internet access is going against the grain Less about “snacking”, more about “real web” access Q9 For each of the following, please indicate the length of your average mobile internet session? 23% 39% 77% < 5 Mins 5 Mins + Length of internet session?

21. Source: Appetite, Yahoo! March 2010 Base: all who access the internet on mobile (n=1,240) Base your mobile strategy on consumer need … not on the latest fashionable PR fad (such as “only” an iPhone app) Q22. So thinking of websites that you access on your mobile phone – if there were an app available instead, would you prefer to download the app or would you still prefer to use the website? How do you prefer to access a website? 55% 33% 12% Don’t mind Via browser Via app

22. Source: Appetite, Yahoo! March 2010 Base: all those who access internet on mobile (n=1,240) The mobile experience 44% of mobile internet users blame brands for a bad mobile experience Q16. When a website doesn’t work on your mobile phone, which of the following do you tend to blame? Reason for bad mobile experience? 44% 34% 29% Brand (site) The Phone Network Provider The User 5%

23. 2008 Mobile Ad Spend Breakdown (£m) Source: IAB / PwC mobile display ad spend survey 2008; search spend figure derived from modelling and industry estimates Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues 2008 total mobile ad spend breakdown Search and Banners represent over 90% of market Banners & Text Links £11.7m (41%) Search £14.4m (50%) Tenancy £1.2m (4%) SMS, MMS £1.0m (4%) Pre/Post Roll + In Game £0.4m (1%) Total market £28.6m