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1 New T-Mobile accelerates competition in the Netherlands NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
1New T-Mobile accelerates competition in the Netherlands
NEW T-MOBILE ACCELERATING
COMPETITION IN THE NETHERLANDS
2
3New T-Mobile accelerates competition in the Netherlands
OUR PROMISES
¡ We believe that Dutch consumers deserve better competition in the telecom market. The merger between T-Mobile and Tele2 will deliver on that. As a strong third player in the market, we can strongly fight the duopoly of KPN and VodafoneZiggo in both mobile and fixed.
¡ By merging our networks and customer bases, we can achieve the size and scale required to accelerate competition. We want to end annual price increases from the two dominant players that take more than 80% of the telecom revenue market.
¡ We will make internet access better and faster for more people in the Netherlands. We will drive innovation through healthy competition. Together, we will bring unlimited possibilities to our Dutch customers and entrepreneurs for mobile services, fixed internet and television.
¡ Healthy competition equals honest competition and that’s what we will bring to the Dutch telecom market. By joining forces, T-Mobile and Tele2 will create more freedom of choice. And unlimited access to the opportunities of now. For everyone.
T-Mobile Netherlands
Tele2 Netherlands
New T-Mobile
4 New T-Mobile accelerates competition in the Netherlands
We will be the first to launch nationwide 5G
We will commit to rolling out fiber and not to increase prices beyond inflation for fixed internet access
We will continue to offer Tele2's Unlimited Data for maximum €25, for at least 3 years
We will offer customers contract freedom
We will make 100 Mbit/s broadband speeds available nationwide to all bridging the digital divide in the Netherlands
¡ We will deliver on five promises to Dutch consumers once the merger is approved. With these promises we show the tangible benefits and opportunities that this merger brings to the Netherlands.
5New T-Mobile accelerates competition in the Netherlands
1 Nr. 547 Letter of Secretary of Economic Affairs Business and Climate, 2 July 2018.2 90% in 2020 and 100% end of 2023.
NEW T-MOBILE WILL BE THE FIRST TO LAUNCH NATIONWIDE 5G
PROMISE #1
¡ The merger between T-Mobile and Tele2 (“New T-Mobile”) will help drive the high quality connectivity that the Dutch government strives for¹. With this promise we ensure that the Netherlands retains its position as a digital front-runner.
¡ By combining the infrastructure of both companies, we can bring our customers a nationwide, world-class 5G Network by 2020². New T-Mobile will be the first to bring 5G to the Netherlands, and will do so at least two years sooner than what T-Mobile could achieve on its own.
¡ Mobile remains our first love. We already have the best tested and fastest network in the Netherlands and we plan to keep it that way.
¡ In order to drive further innovation of the Internet of Things, we will offer access to Narrow Band Internet of Things (NB IoT) for free until at least 2025. This will allow Dutch businesses to speed up with the roll-out of NB IoT services.
¡ It will create huge benefits for customers and businesses (large and small), we also advance the Digital Agenda. And we create the infrastructure for new technology and future innovations.
5G is superior to existing cellular network technologies....
100xUnprecedentedConnections
5G will handle 100x more devices
100xUnmatchedSpeed
5G will reach peaktheoretical speeds of 10 Gbps
10xExtraordinaryResponse Time
Projected reductions in latency (from 10-20 ms today LTE)
6 New T-Mobile accelerates competition in the Netherlands
¡ How does 5G accelerate innovation in the Netherlands?: – "Enhanced Mobile Broadband" With 5G we make fast mobile internet available everywhere; – “Massive Machine Type Communication” Many IoT applications enable millions of devices to “talk” to each other; – “Ultra Reliable and Low Latency Communications” Secure applications of virtual and augmented reality, self-driving cars and remote healthcare applications become a reality.
How will New T-Mobile fulfill this promise?
¡ Combining Tele2's and T-Mobile's networks will ensure sizeable savings. This will be used to fund investments which would be impossible without the merger. Together with our partners, we will develop new and highly innovative equipment that will support 5G as soon as it becomes available. Thus, New T-Mobile can activate 5G after completion of the auction, with the flick of a switch.
¡ Without the merger, we will not roll out 5G equipment until after the frequency auction (expected in Q1 2020). Therefore, the merger gives us the chance to provide the benefits of 5G to Dutch consumers at least two years earlier.
¡ New T-Mobile will also offer advanced 5G service for businesses. Both small shops around the corner as well as large multinationals will benefit from these services. Tele2’s experience in delivering fixed services to business customers also provides an opportunity for New T-Mobile to become a competitive and important player in the 5G market.
¡ As a result of the merger, business customers will finally have more choice. They will have unlimited access to new products and services such as 5G and NB IoT.
2019 2021 2022 20232020
5G Roll-out plan
Equipment upgrade
5G Spectrum auction
5G Spectrum auction
Acceleratedequipment upgrade
Nationwide launch
Nationwide launch
T-M
obile
onl
yN
ew T
-Mob
ile
Cumulative # of sites upgraded in %
75%
100% 100%
0%
50%
88%
0%
50%
100% 100%
T-Mobile only New T-Mobile
˜2 years acceleration
Frontloading ˜€ 150m investments to integrate Tele2 spectrum
Smart RetailGenerating customer insights based on behavioural data.
Smart CityIntelligent management of lighting and waste containers.
Equipment MonitoringOptimal maintenance of machines.
Smart ParkingNavigates drivers to the next vacant parking spot.
Smart HealthcareRemote patient monitoring tracking of assets constrains.
Smart logisticsMonitoring supply chains in realtime.
...Offering limitless potential to new innovations
AND MANY MORE...
7New T-Mobile accelerates competition in the Netherlands
WE COMMIT TO ROLLING OUT FIBER AND NOT TO INCREASE PRICES BEYOND INFLATION FOR FIXED INTERNET ACCESS
¡ Due to the lack of competition in the Dutch telecom market, prices for fixed internet increase every year.
¡ Our promise to roll out fiber creates more freedom of choice for consumers. It ensures high-quality internet connectivity and stimulates competition. Together with our partners, we will roll out fiber and ensure access to super-fast fiber optic speeds to at least 2 million homes and businesses.
¡ We promise not to increase fixed internet prices above inflation for at least three years after the merger. This will protect Dutch consumers from the significant annual price increases of KPN and VodafoneZiggo.
¡ We will pass on future reductions in wholesale access costs imposed by the regulator to the customers.
How will New T-Mobile fulfill this promise?
¡ The government's Digital Action Plan acknowledges that telecom providers must invest significantly in order to meet the increasing need for digital connectivity. The capacity of fixed networks will be increased due to growing fiber deployment, among other things³. This promise delivers on this ambition.
¡ We will invest in fiber as a result of the scale benefits created by the merger. This leads to an afficient and a truly competitive market⁴.
PROMISE #2
Fixed Business Case Customer payback years
T-Mobile only New T-Mobile
-69%
Loss-making on a standalone basis
3 Digital Connectivity Action Plan Ministry of Economic Affairs and Climate.4 Letter from the State Secretary of Economic Affairs and Climate, July 2th 2018.
8 New T-Mobile accelerates competition in the Netherlands
Unlimited Data RevolutionCreated the Data Revolution unleashing mobile experiences for customers.
Low Prices, Best ValueMaintained network leadership with unlimited data at lower prices.
Denser network # of mobile sites
T-MobileTele2 VodafoneZiggo
KPNNewT-Mobile
Illustrative
¡ We know Dutch consumers love unlimited data. Also, faster internet speed is becoming increasingly important.
¡ For at least 3 years after the merger, we will continue to offer the Tele2 unlimited mobile data plan for a maximum of €25 per month.
¡ New T-Mobile will continue to provide affordable unlimited data for everyone.
How will New T-Mobile fulfill this promise?
¡ After the merger, we will have the most dense well-structured network in the Netherlands. As the network scale increases, the cost of delivering each gigabyte will be lower.
¡ There will be a noticeable increase in the quality of our network, particularly in rural areas and indoors, with the combined power of the T-Mobile's and Tele2's networks.
¡ More and more customers will be able to enjoy the best-tested mobile network for competitive prices, giving them more to choose from than just KPN and VodafoneZiggo. Competition is on!
WE CONTINUE TO OFFER TELE2'S UNLIMITED DATA FOR MAXIMUM €25, FOR 3 YEARS
PROMISE #3
9New T-Mobile accelerates competition in the Netherlands
WE OFFER CUSTOMERS CONTRACT FREEDOM
PROMISE #4
We will offer more freedom to customers by offering the fl exibility to change their fi xed or mobile subscription on a monthly basis.
How will New T-Mobile fulfi ll this promise?
Contract freedom means customers can easily switch if they are not satisfi ed with a product, price or service. This forces us to keep delivering high quality of service at a competitive price. We accept the challenge.
The scale benefi ts we get from the merger enables us to take on a strong market approach and promise contractual freedom.
Contact freedomOffer consumers at least one "no lock-in option" on fi xed and mobile.
9New T-Mobile accelerates competition in the Netherlands
WE OFFER CUSTOMERS CONTRACT FREEDOM
PROMISE #4
¡ More and more Dutch consumers are being locked into intransparant fixed and mobile contracts designed to make it difficult to switch, as discounts disappear once one of the contract is terminated. Escaping this golden cage is difficult, since consumers do not have contract freedom.
¡ We will offer more freedom to customers by offering the flexibility to change their fixed or mobile subscription on a monthly basis.
How will New T-Mobile fulfill this promise?
¡ Contract freedom means customers can easily switch if they are not satisfied with a product, price or service. This forces us to keep delivering high quality of service at a competitive price. We accept the challenge.
¡ The scale benefits we get from the merger enables us to take on a strong market approach and promise contractual freedom.
Contact freedomOffer consumers at least one "no lock-in option" on fixed and mobile.
10 New T-Mobile accelerates competition in the Netherlands
5 Nr. 547 Letter of Secretary of Economic Affairs Business and Climate, 2 July 2018.
WE WILL MAKE 100 MBIT⁄S BROADBAND SPEEDS AVAILABLE TO ALL BRIDGING THE DIGITAL DIVIDE IN THE NETHERLANDS
PROMISE #5
¡ We will help to bridge the digital divide by offering faster broadband across the country. It’s hard to believe that there are still many Dutch homes and companies with very low speed internet or no internet connection at all.
¡ For these consumers and businesses, a mobile alternative is the quickest and most efficient way to gain access to fast broadband. Among other things, we will deliver this solution.
¡ By making use of both mobile and fixed technologies, we will make 100 Mbit/s broadband speeds available from 2020 onwards for all consumers and companies.
¡ Faster Internet access throughout the country is an important goal in realising the ambitions set in The Digital Agenda. The government acknowledges the challenge to ensure that in 2023, everyone will have access to a 100 Mbit/s connection⁵. We can help move the Netherlands forward, faster.
How will New T-Mobile fulfill this promise?
¡ By expanding the T-Mobile network with Tele2 sites and combining these networks, we can offer mobile solutions for consumers who live or work in rural areas. This will resolve these so called white spots.
¡ We will also further invest in our mobile network which will give more homes and businesses in rural areas better connectivity.
12 New T-Mobile accelerates competition in the Netherlands
