Lithuanian leadership in mobile telecommunications

Lithuania - truly mobile country Explosive growth of mobile penetration, in Q4 2005: –153,2 % mobile penetration –23,5 % fixed penetration 74% of telecommunication revenues are from mobile Source: Lithuanian NRA 23.5% 153.2% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% H H Q Q Q Q Q Q Q Q Fixed line penetrationMobile penetration total (SIM cards) Penetration of fixed and mobile telephony in Lithuania

In 1991, after Lithuania regained independence, Dr. J. Kazickas founded Omnitel, the 1 st private telecommunications company in Eastern Europe –The idea behind independent communications with the rest of the world In 1996 Motorola joined with 45% of shares In 1998 Amber Mobile (Telia & Sonera) became majority (55%) shareholder In September 2004, TeliaSonera acquired 100% control A brief history of Omnitel

Bringing innovations to the country First in Lithuanian to introduce GSM (1995) First commercial Internet provider (1995) One of the first in Europe to provide integrated services portal to GSM service users (1999) First in Lithuania to introduce WAP protocol for data transfer and the first WAP portal (1999) One of the first in the Europe to introduce GPRS (2001) The first in the world to launch and operate Motorola’s latest base stations Horizon II (2003) The 4th company in Europe and the 7th in the world to have implemented on its network the latest GPRS technology CS3/CS4 (2003). GPRS data transfer rates are increased up to 70% UMTS trial – live video call to Brussels (2004) HSDPA trial (2005) First UMTS operator in Lithuania (2006)

Omnitel today Top-1 telecommunications company in the Baltics Top-3 tax payer to the budget Top-5 most profitable Lithuanian company Top-10 largest Lithuanian company Top2 best reputation company in the country TeliaSonera – one of the largest investors in Lithuania

Mobile market shares Source: NRA, Q

Customers Half of Lithuanian population uses Omnitel services 1,000,000 th customer in 2003

Business market leadership Source: List of the largest (9 mos. 2004) Lithuanian companies by Verslo žinios, market surveys Lithuanian companies Omnitel customers TOP 1080% TOP 2090% TOP 5078% TOP 10083%83% All companies70%

Highly loyal customers Worldwide consumer loyalty to mobile industry Average loyalty 51 Australia 75 Conversion Model TM index averages in different countries Sweden 44 Lithuania 77 USA 65 St. Africa 64 Kanada UK 42 Germany Source: TNS Gallup Omnitel

What comes next? The mobile internet revolution! to create the future via mobile internet

Mobile Internet gains momentum Mobile Internet – the fastest growingLaptop PC sales exceeds the sales of Desktops According NRA 4Q report more than 76% of users are accessing Internet via mobile channels in Lithuania Source: Lithuanian NRASource: Infobalt

Attractive offers boosting Mobile Internet take up Subsidized Omni Connect card – 1 Lt; Monthly fee for unlimited Internet use: 100Lt (28 Euro) Subsidized HP Laptop(!) + Omni Connect card – 1Lt; Monthly fee for unlimited Internet use – 149Lt (43 Euro) Laptop subsidies started in September,2005 Mobile Internet connection is becoming essential to the laptop as a SIM card is for a mobile phone Source: Omnitel Omnitel Mobile Internet users at the end of 2005 ( 200% annual growth ) Just in one quarter after starting to sell Omni Connect powered HP Laptops, Omnitel became No 2 HP distributor in Baltic States

HSDPA Etapas 3 HSDPA Etapas WCDMA Super 3G HSDPA Etapas 2 HSDPA Etapas 2 HSDPA Etapas 1 HSDPA Etapas 1 Speed Mbit/s 2012Metai: Mobile internet speed development Šaltinis: Informa

IP Migration trend Fixed voiceMobile voiceFixed voiceover IPMobile voice over IP Source: ADL Global Broadband Update 2005 Pokalbių minutės skirtinguose tinkluose

From vertically integrated networks towards all IP services ecosystem Tomorrow Horizontal networks (a lot of services) Content Access Content Services Environment IP Multi-Services network

Share of Korean mobile phones sold in Omnitel network % % % % % ( january - april )

Can Lithuania repeat the Ireland story? ?

Thank you!