1. Broadband & Multiple Play Services in Poland (TP perspective) dariusz.rozanski@szczesliwice.net Jarosław Paszkiewicz TP

2. Agenda: Brief on TP History & current status of broadband and Internet access in Poland TP broadband services Subject: Broadband & Multiple Play Services in Poland dariusz.rozanski@szczesliwice.net

3. About TP Group Major companies of TP Group: TP – fixed operator (telephony, broadband services (3P), data transmission, enterprise services) Orange – mobile operator (NMT, GSM, 3G) Dominant player on the Polish telecom market, serving more then 10 mln fixed lines and 13 mln mobile customers, with annual revenues exceeding 18 bln PLN and GOM exceeding 8 bln PLN. Employer for 32 ths people Our main competitive advantage is our highly developed infrastructure, which guarantees best quality and wide availability of services We are still evolving our operations and our network to improve its efficiency to compete effectively in increasingly liberalised market. 2nd largest company in Poland Subject: Broadband & Multiple Play Services in Poland dariusz.rozanski@szczesliwice.net

4. Agenda: Brief on TP History & current status of broadband and Internet access in Poland TP broadband services Subject: Broadband & Multiple Play Services in Poland dariusz.rozanski@szczesliwice.net

5. History of Mass Market Internet Access in Poland 1990 COCOM restrictions waived for Central/Eastern Europe 1991 first connections to Internet : 2000 users (scientific communities); 9600 kbps link 1996 TP opens public anonymous dialup access number 0202122 2000 TP launched first permanent Internet access offer for mass market (SDI = Permanent Internet Access) based on IDSL 2001 Begginings of mass market Internet access competition : Wizja TV & Polsat offers Internet via satellite 2001 Start of Neostrada TP – first ADSL broadband offer in Poland 2003 First ADSL competitor : Dialog Subject: Broadband & Multiple Play Services in Poland dariusz.rozanski@szczesliwice.net

6. Sources : UKE, TP dariusz.rozanski@szczesliwice.net Your LOGO Broadband access in Poland Subject: Broadband & Multiple Play Services in Poland 2001-2006 dynamics of growth Jan 2007 market shares (total market = ca 3 600 000 users) Telco & ISPs Cable TV

7. Sources : UKE dariusz.rozanski@szczesliwice.net Your LOGO Internet access technologies split Subject: Broadband & Multiple Play Services in Poland Split of technologies used by companies officially reporting to UKE

8. Sources : Eurobarometer E-communication Jun 2006 dariusz.rozanski@szczesliwice.net Your LOGO Subject: Broadband & Multiple Play Services in Poland 2006 : 10% of households with no fixed nor mobile telephony (and no Internet …) Access to telecom services in Poland

9. Sources : Ovum September 2006; TP dariusz.rozanski@szczesliwice.net Subject: Broadband & Multiple Play Services in Poland Though significant progress over last few years – there is still gap to be bridged compared to the leaders. 23% OVUM forecast TP data Broadband penetration in Poland vs Europe

10. Source : GfK research 2005 dariusz.rozanski@szczesliwice.net Your LOGO Reasons for NOT using broadband Subject: Broadband & Multiple Play Services in Poland Research done on ca 10k HH without internet access at home we don’t have PC we don’t need to use internet monthly costs of interent are too high installation costs are too high I don’t know what internet is we use internet at other places we don’t have a phone line we don’t have a modem our PC is not modern enough there is no offer in our place of living dangerous content of internet other d.k.

11. Sources : TP dariusz.rozanski@szczesliwice.net Your LOGO Subject: Broadband & Multiple Play Services in Poland TP efforts to boost broadband penetration Since 2000 till now TP : Invested substantial capex on ADSL infrastructure Made significant increase of availability of broadband – at present almost 98% of TP subscribers is located within ADSL reach BB coverage of TP telephony subscribers Poland in total: - 31.12.2005 – 93% - 31.12.2006 – 97% 90-95% > 95%

12. Agenda: Brief on TP History & current status of broadband and Internet access in Poland TP broadband services Subject: Broadband & Multiple Play Services in Poland dariusz.rozanski@szczesliwice.net

13. Your LOGO Broadband services & technology enablers Subject: Broadband & Multiple Play Services in Poland Web Access -e-mail -Search -Commerce Enhanced Web Access -Music -Photos -Short Video Broadband Media -Music -Gaming -Home Networking Digital TV -Channels & Choices (personalisation) - VOD, PVR VoIP One phone UMA mobile 19982005 2007 bandwidth 200220042006 56 k115 k/128 k2 M6 M15 M>15 M Applications / benefits Dial-upSDIADSLADSL 2+ FTTx 100 M HDTV -Very high speed Internet –up to 100Mbps (up and down) -Giga mail More upstream data Web 2.0 expansion Service development Technology development 2008

14. dariusz.rozanski@szczesliwice.net Your LOGO Subject: Broadband & Multiple Play Services in Poland Home gateway Home gateway Voice over IP Interactive gaming Internet @ Security Household security TVVideophone Home gateway Hom Voice over IP Gaming Internet(Wi-Fi / Ethernet ) @ Household security IPTV & VoD Videophone Onephone (UMA mobile) Music Home Livebox Multiple services enabled home Fast and easy modification of customer service choice 1P : Internet access 2P : Internet access + VoIP 3P : Internet access + VoIP + IPTV & VoD (STB additon) 3P+ : HDTV & multiple TV sets at home 4P : bundling with mobile 4P+ : full integration with mobile services (FMC) Value added services for every profile : -Music download -Softphone VoIP & Instant Messenger (Neofon SPIK) -E-games

15. Customer education sponsoring of Internet classrooms at school Making things affordable lowering entry bareer for „no-PC” households (cooperation with credit entities to offer affordable loans for PC while subscribing Neostrada) lowering entry bareer for low income users – pay as you use model (Neostrada per hour) Making broadband available continuous expansion of ADSL reach new innovative wireless technologies for low subscriber density areas (WiMAX, CDMA 450) partnering with local authorities to make Public Private Partnership true Making things more exciting Triple play by TP is not just bundle of telephone with Internet and Cable TV (personalised & unique content, Video Rental, PVR) dariusz.rozanski@szczesliwice.net Your LOGO Subject: Broadband & Multiple Play Services in Poland TP activities to boost broadband and cancel digital divide

16. dariusz.rozanski@szczesliwice.net Your LOGO Subject: Broadband & Multiple Play Services in Poland Customer behaviors change Now / Future – Comfort, performance and quality oriented customers => integrated services, easy manouvers with service set –„Only one operator” preference - responsible for delivery of all services, one invoice and one contact point –Focus on service and content, not technology. –Telco services more and more for entertainment Past / Now –Low price oriented customers => many services & service providers optimised on cost factor only –Do not care on numbers of service companies (number of invoices, points of contacts etc) –Focus on technologies behind –Telco services mainly as a mean for time saving, learning and professional use

17. Personal details: Name: Surname: Company: Phone: E-mail: Jarosław Paszkiewicz TP +48 22 853 07 40 jaroslaw.paszkiewicz@telekomunikacja.pl dariusz.rozanski@szczesliwice.net