2. June 2003 Convergent Billing IN Call Control and Enhanced Services Patrick McGrory CEO

3. Convergent Billing| 2 | Commercial In Confidence The Business Poland: Idea fuels TP SA results (2004-02-18) 03.08.2004 06:47:00 GMT Poland's second-largest mobile operator, Centertel, aims to grow revenue 30% in 2004 Strong growth of pre paid market: 78% of 2Q’04 net adds

4. Convergent Billing| 3 | Commercial In Confidence Subscriber Acquisition Costs eServGlobal means better network economics Source: PTK

5. Convergent Billing| 4 | Commercial In Confidence CAPEX Economics Source: TP; IFRS Data Better network economics requires Better Network Intelligence ™

6. Convergent Billing| 5 | Commercial In Confidence Functionally Tiered Geographically Distributed Massively scalable Real-time All networks No boundaries Real-time Mobile focussed Segmented Dimensions of Convergent Billing Time Value Batch oriented Stapling -5 Years-2 Years-1 YearToday Batch Converged Hybrid Distributed

7. Convergent Billing| 6 | Commercial In Confidence Billing and Payments Business issues… Increasing demand for real time billing  Collecting the revenue before you deliver the service  Prepaid accounts require real time billing  Postpaid accounts benefit from real time billing enquiries and self-service Service innovation Same treatment for Prepaid & Postpaid customers  Prepaid is a payment method, not a customer segment or service! Multiple payment techniques – customer choice  Voucher sales and redemption  Funds transfer through banking gateways  Mobile Consumer to consumer top-up  Credit cards, loyalty schemes, etc Common across all service types  Voice, data, and other media/content This requires a convergent services and billing solution Convergent Billing

8. Convergent Billing| 7 | Commercial In Confidence Convergent Billing Approaches Carrier Network Fixed Mobile Packet One Service Platform One Billing Platform Carrier Network Fixed Mobile Packet One Service Platform PostpaidPrepaid Level 1 Rating Level 1 Rating Carrier Network Fixed Mobile Packet Level 2 Rating One Service Platform Level 1 Rating Carrier Network Fixed Mobile Packet Prepaid Convergent Mediation Postpaid One Service Platform Purist Hybrid Mediation Distributed

9. Convergent Billing| 8 | Commercial In Confidence Analysis Of Approaches ApproachProsCons Purist Easy Fast Singe point of responsibility Investment protection Organisational barriers Hybrid Exploits existing investment Creates a new segment Low risk Rate plan bound to new service Complexity in customer service Maintains some segmentation Mediation Less change Exploits existing investment Risky – not deployed yet Minimal service innovation Distributed Massively scalable Geographically distributable Extremely flexible Operational management Configuration control

10. Convergent Billing| 9 | Commercial In Confidence Issues in Our Experience Organisation Expertise & experience Ability to move rapidly – overcoming organisational inertia Risk management Velocity vs. Inertia Communications Organisational Support Commitment

11. June 2003 Step towards prepaid postpaid convergence Hybrid solution case study PTK Centertel Michał Konrad Nowakowski VAS Manager PTK Centertel September 2004

12. Convergent Billing| 11 | Commercial In Confidence Agenda  Information about PTK Centertel  General Information about Hybrida (IdeaMIX & Abomanent Limitowany)  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - provisioning.  Competitors on Polish market  Similar solution accross FT / Orange  Summary

13. Convergent Billing| 12 | Commercial In Confidence Information about PTK Centertel  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary PTK Centertel is the owner of the Idea and POP brands. PTK Centertel 12 years old company starting form NMT network. Now one of the 3 GSM operators in Poland, (has UMTS license) 6 200 000 subscribers (3 200 000 prepaid, 3 000 000 postpaid (600 k Hybrid subscribers included) 2nd place in terms of number of subscribers France Telecom 34% TP S.A. 66% France Telecom 47,50% Bank of New York 11,54% Others 40,96% PTK shareholders TP S.A. shareholders

14. Convergent Billing| 13 | Commercial In Confidence General Information about Hybrida  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary Hybrid is prepaid - postpaid convergence solution. There are two brands IdeaMIX (with three monthly fee levels) - mass market Abonement Limitowany (one monthly fee level) - corporate market Subscribers pays monthly fee (receives an invoice or payment slips), when uses all of the funds from the fee, can top up theirs accounts with a standard prepaid method (vouchers, ATM,...) Benefits: Subscriber signs a post-paid contract for 12 or 24 months Low risk of fraud (prepaid mode of funds control) New segments of the market to be conquered: Parents buying phones for children or grandparents (post-paid price of the handset with prepaid cost control) Companies buying phones for new and season employees (cost control) PrepaidPostpaid Hybrid Solution

15. Convergent Billing| 14 | Commercial In Confidence Hybryda numer of subribers  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary Total Hybrid IdeaMIX Abonament Limitowany

16. Convergent Billing| 15 | Commercial In Confidence Hybryda numer of subribers  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary IdeaMIX 19,99 IdeaMIX 49,99 IdeaMIX TP

17. Convergent Billing| 16 | Commercial In Confidence VAS in Hybryda  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary Services offered in IdeaMIX & AL: Services, which lowers the cost of voice & SMS’s are: peak - off peak tariff plans per second billing packets of SMS’s (based on the multi balance approach) VAS services offered to hybrid subscribers: Voice Mail (access to VM for free) MMS (real time rating using the OSA CHAM / Parley technology) GPRS (OSA CHAM / Parley technology)

18. Convergent Billing| 17 | Commercial In Confidence Technical solution - multi balance approach  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary The solution is based on the cooperation of post-paid billing system and real time prepaid solution. Post-paid system deals with production of invoicing (stable invoice level for each MSISDN) and controlling of invoice payments (standard post-paid vindication rules). Pre-paid system is dedicated for real-time rating. Pre-paid billing system with multi balance approach is perfect for this kind of offer one balance is dedicated for money form monthly fees. other is dedicated for recharges.

19. Convergent Billing| 18 | Commercial In Confidence Technical solution - high level architecture  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary IN (prepaid) Billing System (postpaid) SDA SDA - Service Data Architecture Other technical systems: HLR, MMSC, VM,... Provisioning & Mediation Systems Billing system responsibility: taking care about monthly fee collection vindication rules level of Hybrid (monthly fee) setting Loyalty Point program Invoice / payment slips generation Technical System responsibilities: online charging for calls, SMSes, roaming, MMS, GPRS others... multiple accounts per one MSISDN handling VAS services management (per second billing, F&F...) monthly fees for VAS services collection Selfcare IVR handling

20. Convergent Billing| 19 | Commercial In Confidence Competitors on Polish market EraMIX - almost exact copy of the solution, launch after 9 months MIXPlus - similar name, totaly different functionality  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture.  Competitors on Polish market  Similar solution accross Orange  Summary

21. Convergent Billing| 20 | Commercial In Confidence Similar solution accross FT / Orange  Information about PTK Centertel  General Information about Hybrida  Hybryda number of subscribers  VAS in Hybryda  Technical solution - multi balance approach  Technical solution - high level architecture  Competitors on Polish market  Similar solution accross Orange  Summary There are three hybrid kind solutions across FT / Orange group: Orange France - Mon Compte Orange Dominican Orange Flex PTK Centertel - IdeaMIX & Abonement Limitowany

22. Convergent Billing| 21 | Commercial In Confidence Summary Low Investment Costs - reuse of the existing infrastructure Marketing advantage - new attractive offer Step towards convergent solution

23. Convergent Billing| 22 | Commercial In Confidence Solution Concept - Convergent Billing Billing Service Control Network Elements Pre & post paid in a single manageable entity All call query for pre & post paid allows central, ubiquitous service delivery Subscriber service control data Marketing Users Single Network & OSS Technical Delivery Organisation Vendors Billing Vendor Primes Network Deal Major Organizational Change How we deploy networks is changing – it’s services driven

24. Convergent Billing| 23 | Commercial In Confidence Intelligence Architecture Customer Intelligence Layer Service Intelligence Layer Network Layer External Systems Layer BillingOrderFault Customer Care Recharge MerchantsEnterprises Content Providers USMS Internet Services UAS/UMSVoiceDataMessaging MSCHLRSMSCVMBSC Banks

25. Convergent Billing| 24 | Commercial In Confidence Business Problem Statement Increase ARPU  Many operators worldwide are considering convergent billing projects  Customers want to equalise pre and post paid offerings so subscribers can burn balance faster  These projects are focussed on bringing new services to market rapidly – increasing service velocity Reduce Cost  Post-paid services are currently provided using existing switches and one of several billing systems along with a variety of other platforms (SMSC, SGSN, etc…)  Prepaid services are currently provided using a legacy service node/IN platforms  VPN and other services may be provided using a different legacy IN platform  These platforms have sub optimal economics from both a network and capital expenditure effectiveness perspective Expand markets  Some operators have invested in a 3G licenses to expand addressable markets  Solutions provided should be reusable in the 3G network

26. Convergent Billing| 25 | Commercial In Confidence Shareholder Value Increase Value Of Equity Improve ARPU Reduce OPEX Costs Increase Return On Invested Capital  Improve flexibility in delivering new rate plans and services to the market for Mobile voice, SMS, MMS and data services  Improve flexibility in delivering new services to the market  Equalise pre and post paid  Rationalise Prepaid service delivery environment  Rationalise VPN service delivery platform  Rationalise the number of billing systems  Reduce capital intensity of network service delivery platforms  Reduce capital spend by using more capital effective providers  Focus the deployment of capital

27. Convergent Billing| 26 | Commercial In Confidence Customer Problems – Marketing & Service Delivery Large inflexible incumbent vendors Services and rate plans that are not that compelling Channel loyalty Customer loyalty Customer anonymity for prepaid High cost to serve which was largely fixed Reducing ARPU – particularly as the base scaled Time to market too long – 9 months for a new service

28. Convergent Billing| 27 | Commercial In Confidence Convergent Prepaid/Postpaid IN Innovative Services and Rating  Converged Pre / Post Paid Call control  Real Time Billing Interface – for all services (Voice, GPRS, MMS, C2C top-up)  Family /Corporate pre & postpaid Technological Superiority  Flexible Signalling Protocols – SS7 or Sigtran  Ability to Chain Services (UAMS)  Multiple switch / protocol interface – CS-1/2, MAP, CAMEL, ISUP etc. Time to Market/Revenue  GUI based Service Creation Environment (Call Plan Editor)  Common Service across Network Types – Wire line, Wireless and Packet  Converged Voice and Data service control Simplicity  eServGlobal solves more problems… Choice of proven strategies for real time billing

29. Convergent Billing| 28 | Commercial In Confidence Summary Evolve your organization so there is a single accountability across the network and OSS. Get expertise from people that have done this. Reduce risk by integrating components rapidly. Give yourself and your vendors a 6 month deadline. Blend skill sets by getting the right vendors together and transferring knowledge to and from your team. Have a communications plan. Communicate with your subscribers and staff – let them know about the benefits. Get support from the highest levels in the organisation and commit.

30. Convergent Billing| 29 | Commercial In Confidence Marketing End to End Value Proposition Finance Voice Data Migration Core Network VPN XMS

31. Convergent Billing| 30 | Commercial In Confidence