Telecommunications competition - a new entrant’s perspective on the UK experience Rickard Granberg 2 December 2008

The Carphone Warehouse Largest independent mobile phone retailer in Europe Total turnover £4,474m in 2007/8 Telecom turnover £1,918m in 2007/8 Bought network operator and entered UK fixed market in 2003 Launched local loop unbundling/next generation network in 2006

The Carphone Warehouse Over 2.5m broadband customers 2.7m telephony customers Over 2m unbundled customers on our LLU network Over 2,000 unbundled exchanges Several MVNO brands

Wholesale input products Local loop unbundling IPStream (“wholesale bitstream access”) Wholesale line rental Carrier pre-selection Indirect access Backhaul and core network Mobile airtime (MVNO)

Regulatory challenges Broadband and LLU –Ex-ante and ex-post regulation –Wholesale and retail regulation –Margins –Market entry challenges Fixed telephony –Interconnection policy –Market entry challenges

Regulatory challenges MVNO –Licensing -> Authorisations –No economic regulation in the UK –Market entry based on commercial deals –Consumer regulation