1. Slide 1

2. mmO 2 Data Success Story Presented to the GSM Association Seminar 14 th October 2002 Fred Harrison

3. Slide 3 Agenda 1.mmO2 Introduction 2.Data evolution and product roadmap 3.Consumer – SMS and Games 4.Business Solutions 5.Applications development 6.Data Progress

4. Slide 4 O2 UK 11.1m customers O2 Ireland 1.18m customers Manx Telecom 47k customers 17.75 million customers 100% ownership 160M Controlled Population 2001/2 Revenue: £4276m 17.75 million customers 100% ownership 160M Controlled Population 2001/2 Revenue: £4276m O2 Netherlands 1.25m customers O2 Germany 3.9m customers The mmO 2 Group Source O2

5. Slide 5 Last year consumers used wireless to….. …make voice calls and person to person texting

6. Slide 6 This year consumers use wireless to….. …vote for things… …chat via text, WAP, or even the TV… …find out whats playing on the radio and place a request… …do personal banking… …play games… …watch the telly… …find things in their locality… …take photos and share them with friends and family…

7. Slide 7 Evolving Mobile Data Market Digital Content P2P SMS Applications MMS Java Games WAP Push Rich media Streaming Video Audio Graphics 2G 2.5G 2.5G / 3G

8. Slide 8 SMS Opportunity Is Huge and NOW! Premium text-based services –Information (pull & push): relevant information when users need it Big Brother 3: 963k text votes (~1/3 of total votes), 70m web page impressions & 2.6m WAP page impressions. –Games > 650k users of games during past 6 months, >6.7m games played. Most popular: Txt Dating, Virtual Girlfriend / Boyfriend, Wireless Pets –Text chat e.g. Big Brother Teletxt TV chat. Wholesale SMS –2001/02 wholesale volume 250m messages (up 40% yr/yr), –50 contracted premium SMS wholesale providers 1. O2 Premium Services Platform O 2 has the largest suite of premium and wholesale SMS services. 1 O 2 internal company data

9. Slide 9 O 2 Product Roadmap xda Nokia 3510 Ericsson T68i Nokia 7650 Nokia 7210 Ericsson P800 Treo 270 Novate l G201 Nokia D211 Sharp Camera Phone MMS Java Games Mobil e Web Microsoft Mobile Information Server Blackberry Lotus Notes Blackberry Voice Enhanced Java Games Extended Office P2P SMS SMS applications (games, chat, alerts) WAP Blackberry – email on the move. Key Devices 2001/02Q1 2002/03 Applications Consumer Business Q2 2002/03Q3 2002/03

10. Slide 10 The O2 games arcade A selection of downloadable Java games with an arcade feel. Bring pictures, colour and sound to mobile gaming.* From 1 st September includes Atari classics Breakout ®, Pong ® and Asteroids ® ideally suited to the devices available. All games free until 30 th September. ** Nokia 3410 available now, full range of Java-enabled devices including colour coming pre-Christmas. 3+ new games in the arcade each month. UK launch 1 st September. Launching across the O2 footprint (Germany, Ireland and Holland) from October. * device dependant ** there will be a small download charge dependant on tariff

11. Slide 11 O2 games arcade: portfolio from 1 st September Asteroids ® Pong ® Breakout ® Marslander TM Men in Black II TM Denkiblocks TM Oilrig TM Racing Fever TM Forbidden Jungle TM Pinball, The Castle TM Turtles TM Towers TM Popstar TM

12. Slide 12 Java-enabled handsets: pre-Christmas 2002 Dec 02 Oct 02 Motorola V66i Nokia 6310i Motorola T720i Siemens S55 Nokia 7650 SonyEricsson P800 Nokia 7210 Devices

13. Slide 13 Men in Black II TM Overview Based on the hit-movie, the Men in Black II TM game allows fans of Jay and Kay to take on the scum of the universe in this multi-level platform blaster. A mass appeal game that maximise Java technology to the full. Key features Complete movie tie-in. Fast and furious, infuriatingly addictive! Multiple levels.

14. Slide 14 O 2 Product Roadmap xda Nokia 3510 Ericsson T68i Nokia 7650 Nokia 7210 Ericsson P800 Treo 270 Novate l G201 Nokia D211 Sharp Camera Phone MMS Java Games Mobil e Web Microsoft Mobile Information Server Blackberry Lotus Notes Blackberry Voice Enhanced Java Games Extended Office P2P SMS SMS applications (games, chat, alerts) WAP Blackberry – email on the move. Key Devices 2001/02Q1 2002/03 Applications Consumer Business Q2 2002/03Q3 2002/03

15. Slide 15 Business Solution Overview GPRS Firewall O2O2 Enterprise CPE Router Physical or VPN Link O 2 Connectivity IP Data Environment Exchange/Lotus

16. Slide 16 Always on GPRS capabilities Integrated suite of applications Open programming environment - JAVA Services include –Push email, contacts, schedule –Exchange Outlook & Lotus Notes –Cradle synchronization –Triple DES security –Voice Over 8000 devices with 420 customers The O2 RIM Blackberry

17. Slide 17 The O 2 xda GSM and GPRS PDA, O2 Branded Developed in partnership with Microsoft Features –Microsoft Pocket PC 2002 –Color screen –Mobile phone, email and fax –Internet Browser –Over-the-Air synchronization –Outlook for calendar, contacts, e-mail 4000 Sales in first month

18. Slide 18 Source O 2 Leading in Data Through Innovation & Partnerships Developer Registration Information / Resources O 2 Application Directory O 2 Customers Open APIs www.sourceo2.com DevelopersO 2 systems / platforms

19. Slide 19 source O2 - key to future mobile applications development 4000+ Members Applications Development Replica Network Test & Integration Centre Group Applications & Services Platform www.source02.com

20. Slide 20 Manx Telecom - 3G Showcase Applications Video telephonyOn-line gamesLive and archive video l Point-to-point video services l Download Download l Rentals Rentals l Review and tips/cheats Review and tips/cheats l Short clips l Information l Entertainment Location servicesInformation servicesMobile office l Games l E-mail l Sports l News l Public transport l Entertainment /gambling l Job adverts l Push information l Pull information l E- and m-commerce l Location specific advertising l Corporate intranet services l Mobile workforce

21. Slide 21 O2 Progress in Data Burgeoning Market for SMS – 175m users in W. Europe this year WAP uptake –O2 has > 200m page impressions/month and 1.6m active users GPRS –Launched across O2 Group and Roaming in 15 Countries –70,000 GPRS active customers in June 2002, 10,000 new/month Data Revenues –14.6% of service revenues last quarter –Target 25% of service revenues by end 2004 Greater than 50% of O2 customers use data

22. Slide 22 Evolving Mobile Data Market Digital Content P2P SMS Applications MMS Java Games WAP Push Rich media Streaming Video Audio Graphics 2G 2.5G 2.5G / 3G Services built on an evolution of the GSM/GPRS/UMTS network platform