3. Fixed broadband back to growth
0
2000
4000
6000
8000
10000
12000
Activations
Churn
Jan-13
Sep-14
3
4. Already high smartphone penetration
High mobile phone tariffs compared to the rest of Europe
4G data positioned as a premium service by many brands
Enormous potential for data growth
It is good to be a challenger in the Netherlands
4
5. Source: Telecompaper
78%
82%
16%
24%
11%
17%
April
May
June
July
August
September
78%
82%
Smartphone Penetration Tele2
4G Enabled Phones Tele2
VoLTEEnabled Phones Tele2
Smartphone penetration, 4G and VoLTE enabled phones in Tele2 NL customer base
Smartphone penetration the Netherlands +12% vs. last year
High smartphone penetration, and still growing
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010
2011
2012
2013
2014
72%
60%
58%
39%
19%
5
6. 15
17
17
18
19
32
32
DK
IR
UK
TP16 Countries
FI
BE
NL
High mobile tariffs compared to the rest of Europe
Source: Telecompaper: 2014 Q3 analysis of price plans offered in 16 European countries
2014 Q3: SIM only Median TCO per country for 360+ minutes and 2GB+
6
7. High mobile tariffs compared to the rest of Europe
T-Mobile offer
KPN offer
Vodafone offer
7
8. Enormous potential for data growthComparing our two biggest markets
Tele2 NL Data per user per month | NL vs SE
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2012
2013
2014
NL
SE
+ 425%
+ 252%
500 MB
1,800 MB
60 MB
350 MB
8
9. Enormous potential for data growth, Netherlands lagging behind
Source: Tefficient2013 H1 9
10. Consistent growth in customer base
600,000
620,000
640,000
660,000
680,000
700,000
720,000
740,000
760,000
780,000
800,000
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Mobile Customer Base Tele2: 12thconsecutive quarter of growth as an MVNO without 4G
10
11. New entrant –No legacy
Acquired the 2600mhz spectrum
Implemented Network sharing deal with T-Mobile
Acquired 800mhz 4G spectrum. Spend 80% less than other operators during the 2012 auction
Faster Roll-Out of the network
Reduced Setup Costs
Reduced Ongoing Costs
11
12. Now
Low datausage
Expecteddata usge
High datausage
MVNO
MNO
-85%
•
4G should not be priced at a premium
•
Our low cost structure provides the basis for a uniquely priced 4G product in the Netherlands
•
No legacy and much lower costs as an MNO provide financial incentive to aggressively promote 4G over 3G
Huge advantage in direct costs
Key takeaways
MVNO (3G)
MNO (4G)
12
13. High quality 4G network to deliver an outstanding customer experience in the Netherlands
Nationwide 4G coverage both in-building and outdoors
LTE-Advanced from launch, with speeds tested up to 225 MB
The Network will be VoLTEcapable
13
14. 4G launch timetable
Q1 2016
Q1 2015
Q4 2014
Q2 –Q4 2015
Full transfer of employees
Begin new and existing customer transfer
Completion of national coverage
Expected national Coverage
14
15. The Netherlands remains a high priced market
Huge potential for data growth in the Netherlands
Lowest cost operation, with Significant cost advantage as MNO
Summary
LTE-Advanced network from launch
15