1. KPN the Royal Dutch telecom companyat
CANTO June 19 through June 23rd
Feddo Hazewindus
Vice President KPN INS Inc

2. Holland… small country, impressive achievements

3. Leading innovator through the ages

4. World renownend engineering, claiming land over water

5. One of the world’s largest sea ports

6. First commercial aviatior in the world

7. Holland… a global oriented monarchy

8. Crowned and renowned

9. KPN Highlights Operations in Holland, Germany and Belgium
KPN Q4 2003
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
Investor Relations ( )

10. Regional Presence: our locations
North & Central America
Western Europe Head Quarters
Eastern Europe
Asia
Asia
Latin America & the Caribbean
Middle East
Africa

11. 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.

12. KPN’s 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
GPRS Roaming Exchange
Preferred Roaming Services
Customer driven development

13. The Mobile Matrix, Voice: Premium voice
KPN Q4 2003
The Mobile Matrix, Voice: Premium voice
KPN offers Premium Voice Services to Mobile Operators:
High quality mobile & fixed termination, anywhere in the world
Direct connectivity with other MNO’s
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
High ASR, ACD, NER and minimal PDD
Fixed operator
KPN
Mobile operator
Mobile operator
Mobile operator
Investor Relations ( )

14. 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
orig
SMS/MMS
term
MNO
KPN
No bilateral relationships necessary

15. 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

16. The Mobile Matrix, 3G: 3G 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).
3G creates a new type of traffic …
... and KPN has the solution!

17. Example 3G service: live TV
KPN Q4 2003
Example 3G service: live TV
International and national/regional content
FILM IS HIER SCHOOLFOTO
Other possibilities:
Video conferencing with internet users
TV / movies / sports / music on demand
Games, quizzes and dating formats
Investor Relations ( )

18. Thank you for your time! Any questions?
KPN Q4 2003
KPN’s Mobile Matrix
Thank you for your time!
Any questions?
FILM IS HIER SCHOOLFOTO
Feddo Hazewindus
Investor Relations ( )

19. Royal solutions at a wholesale price

20. 3G – a promising market? Number of 3G users is growing rapidly …
KPN Q4 2003
3G – a promising market?
Number of 3G users is growing rapidly …
Triple digit growth: From 22 million users in March to 70 million users by the end of
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
Total mobile entertainment market will reach $17.6bn in 2005, up by 71% on 2004, and will top $59bn by After gambling (33%) and games (31%), the most popular entertainment services in 2009 will be music (16%) and sports (8%)4.
Technical:
Providing high-quality circuit switched end-to-end 64kb/s UDI connection:
End-to-end ISUP V2 (ITU White Book)
End-to-end direct and transparent transport, no manipulation of ISUP signaling.
No echo cancellers, no compression
Roaming and end-to-end transfer of CLI is guaranteed
Both voice calls and Video Telephony calls can be offered through same trunks
Service, billing & reporting:
Full service reporting (ASR, ALOC, NER, number of calls & minutes)
Per minute billing is initially done on TMR, due to lack of telecom standard. Option for advanced billing (on ITC=UDI & UIL=H.223&H.245) under investigation
… 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 games“5
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
Investor Relations ( )

21. Our Points of Presence
Global Voice Platform For international voice and interconnection services
PoP
Network
PlannedPoP

22. The Mobile Matrix, Data: 3G Mobile-to-Mobile Video Telephony
KPN Q4 2003
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 doesn’t support 3G routing.
Technical:
Providing high-quality circuit switched end-to-end 64kb/s UDI connection:
End-to-end ISUP V2 (ITU White Book)
End-to-end direct and transparent transport, no manipulation of ISUP signaling.
No echo cancellers, no compression
Roaming and end-to-end transfer of CLI is guaranteed
Both voice calls and Video Telephony calls can be offered through same trunks
Service, billing & reporting:
Full service reporting (ASR, ALOC, NER, number of calls & minutes)
Per minute billing is initially done on TMR, due to lack of telecom standard. Option for advanced billing (on ITC=UDI & UIL=H.223&H.245) under investigation
Investor Relations ( )

23. The Mobile Matrix, Data: 3G Mobile-to-Mobile Video Telephony
KPN Q4 2003
The Mobile Matrix, Data: 3G Mobile-to-Mobile Video Telephony
3G MNO A
KPN
3G MNO B
End-to-end 64Kb/s UDI ISUP 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 ITC=UDI & UIL=H.223&H.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.
Technical:
Providing high-quality circuit switched end-to-end 64kb/s UDI connection:
End-to-end ISUP V2 (ITU White Book)
End-to-end direct and transparent transport, no manipulation of ISUP signaling.
No echo cancellers, no compression
Roaming and end-to-end transfer of CLI is guaranteed
Both voice calls and Video Telephony calls can be offered through same trunks
Service, billing & reporting:
Full service reporting (ASR, ALOC, NER, number of calls & minutes)
Per minute billing is initially done on TMR, due to lack of telecom standard. Option for advanced billing (on ITC=UDI & UIL=H.223&H.245) under investigation
Investor Relations ( )

24. 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 Services 3G VideoGateway Service
3G VGW
3G Mobile Operator
KPN
Internet
Streaming server hosts content
Web interface to upload or maintain content
Videoconferenting Capability

25. How does it work? TV Orange KPN
KPN Carrier Services 3G VideoGateway Service
3G VGW TV
Orange
KPN
Internet
Streaming server hosts content
Web interface to upload or maintain content
Videoconferenting Capability
Orange customer dials premium rate number or short code.
Orange hands over call to KPN (e.g. through existing interconnect).
KPN establishes connection to 3G ContentXchange.
Orange customer makes selection out of presented menu: TV, video conferencing, streaming content, …
Service is delivered to Orange customer.
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.

26. 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

27. 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

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