1. © GSMA 2015 Retaining ubiquity whilst delighting customers A burning platform – the need for action Restricted - Confidential Information © GSM Association 2015 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy

2. © GSMA 2015 Embark on a platform journey in which operators still have a right to retain ubiquity whilst delighting customers with rich IP services Numerous new innovating challengers are building both their features & followings Some domestic leaders with strong features are working to extend their international customer base Richness of features Customer Reach Low Many Few SMS & Voice Some simple and reliable messaging services have appealed to the masses around the globe Chat & VoIP provided by online players have formed new global communication systems High RCS, IP Voice Source: Greenwich Consulting Analysis

3. © GSMA 2015 With low barriers to entry, the IP communications services market has become very crowded with globally relevant players…… Source: Strategy Analytics, Company websites Viber FriendcallerParlingoPingerRebTelMXitVonage TruPhoneMobiVoxRaketuMig33SudaphonePingChat! SkypeeBuddyWhatsappGTalkiTim textpMessenger HeyTellVoxerKakaoTalkYak MessengerIMOTextMe MiFuseCloudTalkLifeGoiMessenger!IM+ QiP mobile messengerMSN live messengerPinchYiip MeeboTalkroomI-talk-YouICQHello!PalTalkHookt IChatUVeryChatProNapleOnGoober Messenger Forex MessengerFacebook Messenger WeChatQQ Weibo …Trillian 90% of messaging volumes within 1 year 20 million+ users; 8 billon inbound; 12 billon outbound messages per day 250 million+ active users (6 – 10% paying subs). Microsoft & Skype opportunity 228 million+ users 350 million+ users

4. © GSMA 2015 …which contributes to a global slowdown in core MNO services Global Voice Revenues ($ Billions) 20122010 2014 2016 $658 -1% $572 YoY growth rate for # of messages 2012201020142016 Global 318% 212% Source: Greenwich Consulting Analysis, Wireless Intelligence & Ovum, Strategy Analytics