New Mobile Revenue Growth Opportunities 05/07/2018 01:49:40 New Mobile Revenue Growth Opportunities Dave McGlade, CEO O2 UK 24 February 2004 Confidential

What are basic revenues? 05/07/2018 01:49:40 What are basic revenues? US Europe Asia Voice Voice SMS Voice Mobile Internet Ringtones/Ringback Confidential

We will continue to stimulate voice & SMS usage 05/07/2018 01:49:40 We will continue to stimulate voice & SMS usage Roaming International Calling Voice Mail Fixed Mobile Substitution/Convergence SMS International Calling Discount SMS Broker Services SMS Bolt-ons O2 Home Confidential

But future growth must come from data services 05/07/2018 01:49:40 But future growth must come from data services Messaging Mobile Internet Music Video Business to Business Source: Strategy Analytics Confidential

Email and advanced messaging will be the next new growth opportunities 05/07/2018 01:49:40 Email and advanced messaging will be the next new growth opportunities Source: Strategy Analytics Confidential

Some examples of what O2 are doing 05/07/2018 01:49:40 Some examples of what O2 are doing MMS Picture Messaging Wallpapers Alerts Video Messaging Email XDA Blackberry Data cards Instant Messaging Launched October ’03 Push to Talk Confidential

Mobile Internet has seen significant growth over the last year 05/07/2018 01:49:40 Mobile Internet has seen significant growth over the last year UK WAP Page Impressions (m) Source: Mobile Data Association Confidential

O2 Active makes the Internet easy to access and use 05/07/2018 01:49:40 O2 Active makes the Internet easy to access and use Recent enhancements include: Pre-installed client Personalisation Content previews Breaking news/alerts Alerts Confidential

Music – a mobile opportunity 05/07/2018 01:49:40 Music – a mobile opportunity UK Music/Media Forecast US$1.1 billion Source: Strategy Analytics Confidential

Music is more than mobile ringtones 05/07/2018 01:49:40 Music is more than mobile ringtones O2 Digital Music Player launched November 2003 ‘Over the Air’ music download service over GPRS Partnered with major brands Digital Rights Management Confidential

Video will also see significant growth 05/07/2018 01:49:40 Video will also see significant growth UK Video Forecast US$256 million Source: Strategy Analytics Confidential

Content is richer with colour & video 05/07/2018 01:49:40 Content is richer with colour & video O2 Mobile Video launched October 2003 Video streaming and download over 2.5G network Clips from leading content providers including Exclusive Rugby World Cup content Confidential

Business data revenues predicted to reach $1.7bn by 2008 05/07/2018 01:49:40 Business data revenues predicted to reach $1.7bn by 2008 UK Business Data Forecast US$1.7 billion Source: Strategy Analytics Confidential

Mobilising the office is critical to future growth 05/07/2018 01:49:40 Mobilising the office is critical to future growth Network GPRS 3G WiFi Devices GPRS Cards Blackberry XDA Smart phones Applications Email/Internet Extended Office VPN Workforce applications Partners Source O2 Accelerator Partners Enabling Partners Confidential

We must co-operate as an industry to grow non-basic revenues 05/07/2018 01:49:40 We must co-operate as an industry to grow non-basic revenues Standardisation / interoperability / open architectures Simplicity / ease-of-use / intuitive Customer centric, not technology driven Consistent Roaming Experience Great content, applications & services Confidential

O2 Online Has Met The Challenge! David.McGlade@O2.com 05/07/2018 01:49:40 O2 Online Has Met The Challenge! David.McGlade@O2.com Confidential