PowerPoint-presentatie 1.0

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KPN the Royal Dutch telecom company at CANTO June
19 through June 23rd Feddo Hazewindus Vice
President KPN INS Inc
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Holland small country, impressive achievements
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Leading innovator through the ages
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World renownend engineering, claiming land over
water
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One of the worlds largest sea ports
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First commercial aviatior in the world
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Holland a global oriented monarchy
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Crowned and renowned
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KPN Highlights

• Operations in Holland, Germany and Belgium
• 17 million mobile 7 million fixed subscribers,
  1.5 million ADSL customers
• Mobile brands are KPN mobile, E-Plus and Base.
• 31,000 employees
• Revenues in 2004 of 11,819 mn
• Profit after tax 2004 1,511 mn
• Free cash flow 2004 of 2,271 mn

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Regional Presence our locations
North Central America
Western EuropeHead Quarters
Eastern Europe
Asia
Asia
Latin America the Caribbean
Middle East
Africa
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Mobile market developments

• Trends
• Decreasing Mobile Termination Rates (MTR) leads
  to lower ARPU for both fixed and mobile
  operators.
• Emergence of preferred roaming.
• End user rates decrease due to intense
  competition, e.g. monthly flat fee packages.
• IP-based services form threat to traditional
  circuit switched services.
• Mobile call volumes continue to grow, fixed
  volumes stabilize or even decrease.
• Emergence of Value Added Services, e.g. 3G.
• Quality orientation to increase end user
  satisfaction.
• Integration of voice and internet/data.
• End user ARPU can be protected and increased by
• Value added services to develop new revenue
  sources
• Mobile data, e.g. 3G and SMS Transit
• Preferred roaming solutions
• High quality global roaming coverage (on net
  everywhere) to increase current voice ARPU.

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KPNs answer The Mobile Matrix

• A complete wholesale portfolio for Mobile
  Operators with a worldwide coverage

Voice
Premium Voice
Data
MMS Interworking
Messaging Services
SMS Interworking
3G Video Services
Video Telephony
M2F Video Telephony
3G Content Exchange
Mobile IP Interworking
IPX
Roaming
Global Mobile Signaling
Roaming Broker Services
Intl. Roaming Services
Preferred Roaming Services
GPRS Roaming Exchange
Customer driven development
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The Mobile Matrix, VoicePremium voice

• KPN offers Premium Voice Services to Mobile
  Operators
• High quality mobile fixed termination, anywhere
  in the world
• Direct connectivity with other MNOs
• High Quality of Service
• Fax support guaranteed to all fixed destinations
• Roaming support guaranteed to all mobile
  destinations
• Guaranteed end-to-end CLI delivery to a high
  number of mobile destinations
• Increase in ARPU through high quality routes
• Use of direct interconnects and selected high
  quality suppliers
• Emergency overflow routing available
• Premium support of our International Service
  Center 24/7

Fixed operator
Mobile operator
KPN
Mobile operator
Mobile operator
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The Mobile Matrix, Messaging Services MMS/SMS
Interworking

• Increasing ARPU trough total global MMS and SMS
  termination
• Service based on existing 3GPP / GSM Association
  standards
• Anti spamming support
• Single contract and financial settlement
• Conversion GSM and T/CDMA (SMS)

SMS/MMS term
SMS/MMS orig
KPN
MNO
No bilateral relationships necessary
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The Mobile Matrix, Roaming Services
International Roaming Services

• Global Mobile Signalling
• Increasing ARPU through global SS7 signalling and
  SMS/roaming support
• Single point of access to carry your mobile
  roaming messages.
• GPRS Roaming eXchange (GRX)
• Inter-PLMN backbone for GPRS roaming
• The standardised basis for other mobile data
  services
• And more is coming
• Preferred roaming
• Steer your roaming traffic to the network of
  choice (SS7-based solution)
• Roaming brokerage
• One single point of contact for all your roaming
  agreements

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The Mobile Matrix, 3G3G Services

• 3G Mobile-to-mobile video telephony
• The circuit switched mobile-to-mobile solution
• Large geographical coverage, 80 networks.
• Roaming support and CLI delivery guaranteed.
• End-to-end 64 Kbits UDI routes based on ISUP V2.
• Use of direct interconnects and selected high
  quality suppliers.
• 3G Content eXchange
• Providing the bridge between circuit switched 3G
  connections and IP domains
• Circuit switched 3G connection provides high
  quality video experience on short codes and
  premium rate numbers.
• Gateway enables UMTS subscribers to access
  streaming content and to video conference with
  Internet users.
• Hosted platform (minimizes initial investment
  and short time to market).

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Example 3G service live TV
International and national/regional content

• Other possibilities
• Video conferencing with internet users
• TV / movies / sports / music on demand
• Games, quizzes and dating formats

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KPNs Mobile Matrix


Thank you for your time! Any questions?
Feddo Hazewindus f.j.u.hazewindus_at_kpnins.com
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Royal solutions at a wholesale price
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3G a promising market?

• Number of 3G users is growing rapidly
• Triple digit growth From 22 million users in
  March 20051 to 70 million users by the end of
  20052.
• UMTS-penetration still low in March 2005 only
  1.25 of all mobiles were UMTS/WDMA-equipped1.

• and the content market looks promising
• Adult content is the short term killer app
  Italian 3G adult content market already over EUR
  140 million in 20043.
• Total mobile entertainment market will reach
  17.6bn in 2005, up by 71 on 2004, and will top
  59bn by 2009. After gambling (33) and games
  (31), the most popular entertainment services in
  2009 will be music (16) and sports (8)4.

• but consumer adoption and satisfaction is still
  low!
• "More than half of 3G traffic will be voice, no
  matter how much we talk about video calls, video
  streaming and mobile games5
• 77 of UK phone users have never used any new
  data services such as picture and video messaging
  or gaming and ring tone downloads and a mere 12
  of actual mobile data users profess to be
  completely satisfied with the service6.

1 Informa 2 Nokia 3 Eurispes 4 Juniper
Research 5 Tomi Ahonen 6 NOP Survey
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Our Points of Presence
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The Mobile Matrix, Data 3G Mobile-to-Mobile
Video Telephony

• Lessons learned after 14 months.
• What can cause customer dissatisfaction and
  reduces YOUR revenues?
• Routing
• Use of low quality / unstable routes, e.g. VOIP
  or GSM Gateway routing.
• Non-direct routing, too many international
  carriers involved.
• Lack of emergency overflow routing.
• ISUP
• No ISUP (V2) available in the national domain
  (e.g. Japan).
• Lack of ISUP (V2) support in international
  routing (e.g. loss of H.233 and H.245).
• Data
• Echo cancelling.
• Compression equipment.
• Other
• Failing access to VideoMail of outbound roamer if
  international carrier of host MNO doesnt
  support 3G routing.

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The Mobile Matrix, Data 3G Mobile-to-Mobile
Video Telephony
KPN
3G MNO A
3G MNO B
End-to-end 64Kb/s UDIISUP V2 and CLI delivery

• KPN offers Mobile VT termination with a premium
  QoS to over 70 destinations.
• Following the mobile industry, rapidly offering
  VT termination to newly deployed 3G networks.
• High Quality of Service
• End-to-end 64 Kb/s UDI routes ? no echo canceling
  or compression
• End-to-end ISUP V2 ? transparent transport of all
  parameters, including H.223 H.245 (octet 5)
• Use of direct interconnects and selected high
  quality suppliers (max. 1 intermediary party
  involved)
• Emergency overflow routing available
• End-to-end roaming (MSRN) support and CLI
  delivery guaranteed
• Differentiated billing available (currently TMR,
  option for advanced billing on ITCUDI
  UILH.223H.245 under investigation)
• No necessity for separate video telephony trunks
  (but supported on customer request)
• Premium support of our International Service
  Center (24/7), including 3G testing facility,
  possibility for SLA, and quality reports.

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The Mobile Matrix, Data 3G ContentXchange

• KPN offers a 3G Content Exchange including M2F
  Video Telephony
• Bridge between a circuit switched 3G connection
  and IP domains
• Circuit switched 3G connection provides high
  quality video experience on premium rate
• numbers or short codes
• Gateway enables UMTS subscribers to access
  streaming content and to video
• conference with Internet users
• Hosted platform (minimizes initial investment
  and short time to market)

KPN Carrier Services3G VideoGateway Service
3G VGW
3G MobileOperator
KPN
Internet
Streaming serverhosts content
Web interface to upload ormaintain content
Videoconferenting Capability
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How does it work?
KPN Carrier Services3G VideoGateway Service
3G VGW
TV
Orange
Internet
KPN
Streaming serverhosts content
Web interface to upload ormaintain content
Videoconferenting Capability

• Easy to implement
• Hosted solution minimizes initial investment and
  reduces time to market.
• Easy to manage content upload done through easy
  web access.
• No complex billing per second billing of premium
  rate number / short code.
• Successful model fit to current voice model
  supports rapid customer adoption.

1. Orange customer dials premium rate number or
   short code.
2. Orange hands over call to KPN (e.g. through
   existing interconnect).
3. KPN establishes connection to 3G ContentXchange.
4. Orange customer makes selection out of presented
   menu TV, video conferencing, streaming content,
   
5. Service is delivered to Orange customer.

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Our Current Portfolio
Fixed Operators International Wholesale voice termination International Premium voice termination International Wholesale Freephone service
(Internet) Service Providers International VoIP services (VoiceXS) International Premium Rate service
Mobile Operators The Mobile Matrix, a complete portfolio of voice, data and roaming services
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Our Competitive Edge

• Established track record as a wholesale partner
• High customer satisfaction
• High flexibility in meeting customer demands
• Innovative and customised portfolio of services
• Many connection possibilities, fast and simple
• Global network with more than 234 (direct)
  interconnects
• High quality network performance
• Pro active network management (24/7)
• Associate member of the GSMA

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Our Organisation
Senior Vice President Wholesale Voice Service
International Edwin van Ierland
Product Management Gert-Jan Huizer
KPN INS Inc. Feddo Hazewindus
International Billing Collection Johan Bogaard
International Streaming Hiske van Mierlo
Data Management support Baldewijn Westerbeek
International Sales Wouter Knoester
North America Patrick Meijer South
America Central AmericaSierk Coolsma
Western Europe Wouter Knoester Africa Konrad
Mostert Asia Pacific Paul Baaij Eastern
Europe Dominique Nagy Middle East Lodewijk Bout
WSD International John van Grinsven
NOC International Claire Mengelberg