1

MNO ROLLOUT Joachim Horn

2

Spectrum availability

Targeted quality and performance

Expected traffic

Population density, distribution and migration pattern

Topography

Type of buildings

Key criteria for designing coverage

3

SWE NL

Total surface (km2) 450,300 41,540

Non water or forest 28.5% 72.4%

Population 9,5 M 16,7 M

Population per km2

non forest / water**

73.6 555.0

Demography and geography impacts

coverage

50%

100%

Sweden

Netherlands

Po

pu

latio

n c

ove

rage

*

30% Sites

15%

*Approximate

Source: WorldBank.org 2011

**Assuming no inhabitants in forest or water areas

4

Sig

na

l s

tren

gth

Distance [km]

800MHz 2600MHz

Tele2 has a very powerful spectrum position…

Pe

ne

tra

tion

loss

Wall

800 2.6

800 2.6

Coverage Km2

Ou

tdo

or

Ind

oo

r

Signal loss when covering indoor

10 MHz in 800 MHz

Ideal for coverage

20 MHz in 2.6 GHz

Ideal for capacity

Difference indoor/outdoor

… enabling a competitive and cost efficient rollout

5

0%

25%

50%

75%

100%

Time

Network planning done, site sharing deal

signed, suppliers chosen and rollout started

Approx. 3,500 sites for initial rollout

Priority to achieve full coverage

Competitive capacity, speed and quality

First sites being finalized

* Approximate

Population coverage over time*

6

Leveraging synergies with our backbone

and FttH

LTE

POP

Consumer

Small business

Microwave = Tele2 infrastructure

= Rented from Reggefiber

7

Principles of site sharing with T-Mobile NL

RRH*

Antenna

T-Mobile base

station

Tele2

base

station

Backhaul Tele2 core

network

T-Mobile core

network

2G

3G

4G

4G

X

X

X

Passive sharing of infrastructure and antennas

Sharing of backhaul, power and field services is optional

Majority of sites will be shared with T-Mobile, first sites available soon

*RRH = Remote Radio Head

8

RAN

Core

IMS/Voice over

LTE platform

Network procurement done

Mainly price

Similar quality and capabilities of

different vendors

Vendor capabilities

Vendor experience

Existing references

Vendor experience

Vendor flexibility

Equipment Vendor Main decision criteria

9

SE 2003 SE 2008 SE 2013 SE share2013

NL 2013

Sweden reference

Rollout versus license investments

NL

MEUR

161 172

License Network rollout

MEUR

CAPEX for initial rollout* Comparison radio equipment cost

MEUR

Cost per

site

• Competitive equipment prices keep investments low

*Approx. 3,500 sites

10

LTE supports carrier grade VoIP, i.e. Voice

over LTE

First carrier grade voice over IP-solution in

mobile

Future proof “Over-The-Top” competitive

service

Generally available from beginning of 2014

(standardization, chipsets)

Dec. 2012: Tele2 first live VoLTE trial in EU

• Tele2 targets to offer VoLTE early

11

VoLTE brings substantial benefits

Better sound

Less delay

Up to 6x faster establishment times

Spectral efficiency

No national roaming costs

12

Preparing Tele2’s customer base for LTE

US and Asian operators to launch

VoLTE within next 12-18 months

0%

10%

20%

30%

40%

50%

60%

Top tier handsets likely to support

VoLTE from 2014

Potential upgrade of existing LTE

handsets with VoLTE

LTE enabled handsets sold by Tele2 NL

Jul 2012 Jul 2013

• More than 50% of handsets sold in July 2014 are already LTE enabled

13

How we will ensure quality

Full LTE

coverage

with best

in class

ambition

National

Roaming

Agreement

Building our own network based on newest technology without legacy

Ambition to achieve a full LTE coverage as soon as possible

Keep our customers in the Tele2 network throughout the country

Quality design is based on KPI:s which beats best in class in Sweden

Seamless coverage experience for Tele2 customers (2G and 3G)

Similar setups working very well in Tele2 Norway and Croatia

Proven CSFB* technology to deliver voice (2G and 3G) to 4G

customers

Tele2 was the first operator in Europe to launch CSFB (2011)

*CSFB = Circuit Switch Fallback

14

Tele2 will have a very competitive

IT landscape

New IT

architecture

Ahead of the pack – legacy free

Flexible best of breed system, fully agile approach

All current and future business needs, fixed and mobile

Customer benefits

Transparent and clear communication to the customers

Online focus: My Tele2, customer portals and apps

Real-time information for consumption and charging

• Architecture defined, suppliers chosen and development started

15

Key take-aways

In control for best customer experience

Building our own network

Implementing a competitive IT landscape

All legacy free

Planning done, suppliers chosen, implementation started

Initial rollout of 3,500 sites, most of which are shared

Supporting business success with competitive cost position

Working on early launch of VoLTE for true 4G experience

16

Q&A PART 2

Günther Vogelpoel

Joachim Horn