1. Restricted - Confidential Information © GSM Association 2014 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy Competition law issues in the Internet economy – dealing with disruption

2. © GSM Association 2014 Overview The GSM Association Collaboration v Competition Disruptive Competition Disruption in the mobile industry 1

3. © GSM Association 2014 The GSM Association 2 Public Policy and Advocacy Intelligence Standardisation Agreements and Technical Specifications Mobile for Development Industry Events and Awards Joint R&D in new and converging markets Rapporteur Members Full Members: 800+ operators in 220 countries Associate Members: 250 vendors

4. © GSM Association 2014 Collaboration v Competition Efficiencies and economies of scale Inter-operator v external competition Art 101 (3) Indispensible Emerging, adjacent and converging markets Market definitions Burden of proof and economic evidence 3

5. © GSM Association 2014 Disruptive Competition 4 Evolution v Revolution Inefficiencies & opportunities Consolidation & Merger Control Disrupting the disruptors From disruption to dominance Disruption and long term investment Role of Competition Policy Regulation & Innovation Barriers to Entry?

6. © GSM Association 2014 Dumb Pipes or innovative Service Providers? Competition or Partnership? Embracing Innovation or Investing in NGN? Mobile Network Operators 5

7. © GSM Association 2014 Disruption in the Mobile Industry 6 The smartphone era is now evolving to a digitised sharing economy where new entrants can disrupt established industries Implications of next wave The fourth computing era – connecting physical and digital worlds Healthcare, Education, others… all goods and services! Microprocessor, PC, software Era Driver Companies Internet Protocols Smartphones, APIs APIs, Big Data, New Protocols 1980-2000 PC: Revolutionised productivity 2001-2007 Information age: Organised world’s information 2008-Present Smartphones: Unbundling of comms Disruption moves from comms to goods and services Early examples include transport (Uber) and accommodation (AirBnB) Growth is captured by firms that own service discovery (Uber) Such firms leverage APIs and protocols to scale exponentially MNOs are enabling growth through APIs and strategic partnerships rather than developing own services Present-2020 Connecting physical and digital worlds

8. © GSM Association 2014 7 Connectivity Players Cable/ISPsMNOsConverged Option not mutually exclusive 47.7 39.4 2018 12.2 328.6 340.8 2014 8.3 Hotspot installed, millions Community Hotspot Commercial Hotspot Infrastructure approach Partnership with Wi-Fi networks or aggregators Hybrid Wi-Fi (network is part owned, part in partnership Own/build Wi-FI Option not mutually exclusive Rapid Wi-Fi hotspot growth and advent of carrier grade Wi-Fi could disrupt mobile Strategies will depend on the nature of an operator’s network and infrastructure approach WiFi v Mobile

9. © GSM Association 2014 8 Growing impact from the broader ecosystem … plus: doubling of funding in the mobile and internet space from VCs and private equity in the last 12 months Internet MajorsDisruptive TrendsPartnerships