1. The European way to think the Digital World www.idate.org Mobile services IDATE International Conference Montpellier (France), 25 November 2004 Frédéric Pujol Head of the mobile services division IDATE

2. IDATE © 2004 www.idate.org 2 Internet Act II will also be mobile ! 25 November 2004 The importance of the mobile sector  The mobile sector will drive the growth of the telecoms sector Breakdown of Telecommunications servicesby segment in 2002 Breakdown of Telecommunications servicesby segment in 2007 Fixed telephony 44% Data 10% Internet & Broadband access 7% Mobile services 39% Fixed telephony 35% Data 11% Internet & Broadband access 10% Mobile services 44% Source: IDATE

3. IDATE © 2004 www.idate.org 3 Internet Act II will also be mobile ! 25 November 2004 The growth of mobile data services  Anticipated evolution of voice & data ARPU in Western Europe 0 5 10 15 20 25 30 35 40 200020012002200320042005200620072008 EUR/month Voice ARPU (EUR/month)Data ARPU (EUR/month) Growth: Total: 7.4 % Voice: 2.9 % Data: 29.8 % Data revenues: 16%Data revenues: 20%Data revenues: 28% Growth: Total: 13.8% Voice: 1.5 % Data: 63.4 %  Evolution of voice & data T/O in Western Europe: A strong growth of data services Source: IDATE

4. IDATE © 2004 www.idate.org 4 Internet Act II will also be mobile ! 25 November 2004 New services  Revenues from mobile data services in Western Europe In 2003, SMS still represented 83% of all data services revenues (87% in 2002)  Most promising services: -Video- Music -Television- Games

5. IDATE © 2004 www.idate.org 5 Internet Act II will also be mobile ! 25 November 2004 The real start of 3G ?  Real launch of 3G by major players in Western Europe -9 networks launched in 2003 (5 networks from Hutchison) -34 network launches planned for 2004

6. IDATE © 2004 www.idate.org 6 Internet Act II will also be mobile ! 25 November 2004 Key questions Which applications and services will best take advantage of 3G technology? What value chains and which players will be at the forefront of the mobile industry at the opening of Internet Act II? Are we moving towards a convergence between Mobile Internet and Fixed Internet ? -What status for 3G with the ubiquity of Wi-Fi/ Wi-Max access and the perspective of universal broadband access? -What about VoIP on mobile networks? -What will be the impact of new technologies (OFDM, TD-CDMA)? -What changes in spectrum management ?Spectrum trading? 123