Vodafones experience in bringing mobile broadband to the European regions Three case studies: Germany Romania, Italy Germany,

Romania

GERMANY / LTE brings broadband in rural areas thanks to the Digital Dividend
Frequencies in 800 Mhz band were freed up With the switch from analogue to digital TV In summer 2010 the frequencies were allocated to wireless broadband via auction Advantages of this frequency: very good propagation and penetration to buildings LTE + Digital Dividend= Broadband internet in rural Regions LTE 2.600
Coverage >50.000 Sites Sit

LTE 800
Coverage <10.000 Sites Sit

LTE 800MHz is more efficient in coverage

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GERMANY / 2 phases strategy

Vodafone LTE Strategy
Phase 1 LTE 800 Rural areas non-connected Phase 2 LTE 2.600 Higher capacity in already covered areas

LTE / HSDPA - Top speed (indoor)

Address new customers and markets with broadband connection in white areas

Offer of new services in already covered areas with broadband

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GERMANY / Next steps

Vodafone Germany started roll out in September 2010 and has covered several
hundreds municipalities with LTE and is so far the only operator that offers hardware (LTE stick)

Since securing spectrum we have delivered broadband to around 1000 rural

communities with 165,000 households

we are confident that the white spaces with no broadband coverage will have
disappeared by the end of 2011

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VF DE

ROMANIA / mobile delivers broadband to rural areas

A below EU average broadband penetration rate: as for January 2010 2010, the fixed penetration was 13% and the mobile penetration was 2.2%

Strong platform competition - endgp p to-end infrastructure competition based on DSL, UTP/FTP cable, coaxial cable, fibre, radio but few wholesale based competition

Low retail broadband prices, but lower speeds

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UMTS Countrywide coverage

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ROMANIA / mobile delivers broadband to rural areas

In April 2010 Vodafone announced the national deployment of its 3G services in the 900 MHz spectrum which now enables access to mobile Internet for 90% of Romanias population, at speeds of up to 21.6 Mbps.

At the same time Vodafone Romania extended its mobile Internet portfolio with prepaid services by launching Cartela Internet Vodafone, available for users countrywide, with Internet offers starting from 5 Euro credit.

Vodafone Romania also extended the benefits of the new network deployment to its existing partnership with SMURD (emergency service in Romania), by including new equipment and mobile broadband communication services into its existing telemedicine solutions.

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ITALY / Internet Ovunque & the 1000 Comuni project

InternetOvunque (InternetEverywhere) Mobilebroadbandcoveragefrom ~81%upto~9899%nearwindow in34years i 34 1000Comuni

MinimumcoverageforCustomer: 2Mbpsnearwindow

Technology/speedevolution HSPA:14.4 28.8 42 84Mbps HSPA: 14.4 28.8 42 84 Mbps LTE:144Mbps

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ITALY / 1000 Comuni project

Vodafone Italy launched the project in December 2010 to connect municipalities where there is currently no fast Internet connection (defined as ADSL or wireless HSPA)

So far, we received 2290 applications from citizens and majors far

82 communities in 12 Regions throughout the country were connected to date

1000 communities will be connected by end 2013

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CONCLUSIONS / Economic importance of broadband

A study published by the German regulator shows that an offer of 1Mb/s in unconnected areas results in 8,3 Bio GDP growth and can create 11.000 jobs

GDP growth(Mrd. )

Employment growth

15
Employment growth

15.000
GDP growth in Bion Euro

10 5 0

10.000 5.000 0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Goldmedia/Mugler (2009)

Average investment cost per potential client ()

Glasfaser LWL xDSL WLAN WiMax* LTE
1.360 1.037 701 533 171 * Eingeschrnkte Leistung in Praxistests (1-2 Mbit/s) 166

LTE is the most efficient technology to achieve coverage goals

g ( ), g g Quelle: Goldmedia/Mugler (2009), eigene Berechnungen

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CONCLUSIONS / Some lessons learned

Wireless broadband is currently being delivered in several member states in a faster pace than fibre fibre.

Mobile broadband covers rural areas in a more economic and efficient way .

The cases of Germany, Romania and Italy show that it is possible for member states to act very swiftly and quickly to allow efficient usage of frequencies (dividend allocations re-farming) Mobile operators are ready to commit the allocations, re-farming). private investment needed to achieve the EU Digital Agenda targets.

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Thank you
www.vodafone.com/eu

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