Presented in Amsterdam, 2002

1. CHURN MANAGEMENT Prepaid Mobile 2002 Alexandre Lourenço Head of Consumer Market Dep. TMN - Portugal

2. Portuguese Market Overview

3. Portuguese Market Overview (1) Customers and major Steps 1989 TMN Analogue Network 76% Penetration Rate Thousand customers Source: ICP and Operators Oct 92 GSM900 Competition (Telecel /Vodafone ) Set 95 Prepaid (Mimo TMN) Mar 98 GSM1800 Nov 2000 GPRS Set 98 3rd Operator (Optimus) May 2000 WAP

4. Portuguese Market Overview (2) Market Shares (on n. of customers) Source: Operators

6. What Is Prepaid Churn and Prepaid Churn Management ?

7. Prepaid Churn Management Prepaid Churn Churn Management Churn due to lack of recharges Churn due to not producing traffic Churn Reasons Analysis Prepaid Life Cycle Management Incentives to recharges and traffic

8. Methodologies and Processes to Reduce Churn

18. Lessons to Learn

21. Next Steps

23. CHURN MANAGEMENT Prepaid Mobile 2002 Alexandre Lourenço Head of Consumer Market Dep. TMN - Portugal