1. Copyright 2004 Frost & Sullivan Confidential1 The Changing Telecommunications Landscape Fixed Mobile Convergence Growth Partnership Subscription 2004 July 2004

2. Copyright 2004 Frost & Sullivan Confidential2 Revenue declines resulting in decreasing profitability... Total voice revenues beginning to decline Mobile continues to substitute fixed Mobile revenues will also start to decline Alternative IP communications methods proliferating Focus on Data Applications Total Voice Market Revenue Forecast

3. Copyright 2004 Frost & Sullivan Confidential3 A Changing Environment Mobile Market  Subscriber Saturation  Data Applications  New Entrants  3G Technologies  WLAN & Bluetooth  New applications  WiMAX  IMS Fixed Market  Substitution  IP and Broadband  Deregulation & Competition End-User  Personalisation  Multiple devices & services  Price awareness  Convenience CONVERGENCE Competition intensifying both within and between the fixed & mobile markets Converged Services Emerging eg: Norwood Systems trialling integrated Bluetooth/WLAN- GSM enterprise solutions Sonofon offers MultiPlan integrated fixed-mobile voice solution in Denmark UPC-Telekabel & ONE partnership offering Take-Two fixed-mobile consumer voice solutions in Austria

4. Copyright 2004 Frost & Sullivan Confidential4 The Convergence Opportunity FIXED CELLULAR SHORT RANGE WIRELESS Increasing Customer Value & Loyalty Basic Integrated Service Price Bundles Additional Convenience Value Added Services

5. Copyright 2004 Frost & Sullivan Confidential5 Decrease Costs Ensure Cost Competitive New IP Services Segmentation through QoS Integrated Network Integrated Service Offering Cross-Selling Price Bundling Integrated VAS Customer Loyalty A Range of Convergence Opportunities One Stop Shop Growth Markets All IP Network Broadband Mobility Bundled Solutions Integrated Services Wireless LAN Convergence Opportunities Carriers of all types have opportunities to increase revenues by providing convergence solutions Carriers ignoring the opportunity risk losing market share to new innovative services Convergence clearly provides opportunities & threats for manufacturers, technology providers & integrators

6. Copyright 2004 Frost & Sullivan Confidential6 Frost & Sullivan: Growth Partnership will you help to: Assess Market Potential through Growth Forecasts Evaluate Market Risks & Challenges Analyse Successful Market Offerings Understand Pricing Structures and Evolution Evaluate End-User Requirements and Segments Understand new Business Models

7. Copyright 2004 Frost & Sullivan Confidential7 Frost & Sullivan Telecoms Expertise Mobile & Wireless Fixed Convergence Location Based Services Mobile Video Mobile Enterprise SMS & MMS Presence & Instant Messaging Mobile Gaming Broadband Carrier Pre-select Conferencing Call Centres IP Telephony Convergence & Substitution UK Voice Market Analysis Converged Devices & Services WLAN Converged Solutions Fixed SMS & MMS Strategic research and expertise in fixed, mobile and convergence markets enable a flexible service to suit your specific requirements

8. Copyright 2004 Frost & Sullivan Confidential8 Convergence Reports Fixed/ Mobile Convergence and Substitution Europe Analysing the the market situation as the communications market matures. Looking at different market scenarios, forecasts, successful market services and providing recommendations In-Depth UK Voice Market Analysis Forecasting and analysing fixed and mobile minutes, pricing and revenue by call type and end-user group. Rate of substitution and developments Converged Devices and Services Analysis and forecasts of the integrated devices and services able to access both fixed and mobile voice networks. Fixed SMS and MMS Analysis and forecasts of the prospects for fixed carriers to develop a new revenue stream from a service which continues to grow in the mobile world Strategic, in depth reports looking at important industry areas, compiled through leading industry intelligence and analysis Integrating Wireless LAN into Fixed & Mobile Services Analysis and forecasts of integrated wireless LAN - broadband & mobile services

9. Copyright 2004 Frost & Sullivan Confidential9 Frost & Sullivan’s Growth Partnership Service Updates Analyst Support Services Published Research Market Insight Seminars Workshops Updates and news of the industry Analyst Industry Insights, Opinions & Commentary Access to analysts for queries and clarifications on publications Significant Revenue breakdowns and sub- segmentation Detailed Market Reports on Critical Market Areas Delivery and access via www.frost.com Research Results Presentation in client’s premises Actionable research and shared knowledge Interactive Session to create internal alignment on market issues Facilitate framework to Identify, Analyse & Challenge Growth Opportunities Strategic definition session to validate options Top Level Executives and Consultant

10. Copyright 2004 Frost & Sullivan Confidential10 Access to Research Database - Unlimited Usage Our reports include: Market Revenue Forecasts Opportunity Analysis Pricing Trend Analysis Analysis of the Market by Country Market Drivers & Restraints Analysis Value Chain Analysis Market and Technology Trends Competitive Structure Analysis Market Share Analysis End-User Analysis Strategic Analysis and Recommendations Our extensive research database provides you with on-line access to a large number of in-depth reports on markets relating to Telecommunication markets. The current and forthcoming research services are the core deliverable of the Growth Partnership Service.

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