The document discusses how apps have changed smartphone usage and driven data growth. Key points: 1) Smartphone adoption in Europe is rising rapidly, especially among younger users, and apps are driving increased data usage on smartphones. 2) In the Netherlands, Vodafone saw a clear "iPhone effect" as iPhone users consumed 6-12 MB of data per day on average, compared to 0.75 MB for older devices. 3) App usage insights found that 31% of users are "socializers" who use apps for social media, while 12% are "addicts" who use apps multiple times daily. 4) Future outlook expects smartphone penetration to grow above 50% and

1. The App Effect
Jens Schulte-Bockum
CEO Vodafone Netherlands
VINT Symposium - 7 June 2011
.

2. =
Apps = Smartphones

3. Smartphone adoption EU Type of phone per age group
Share of type of mobile phone per age group (%). Source:TPCP
100%
90% 17
24 28
35 33
80% 42
70%
60%
50%
40% 83
76 72
65 67
Source : VF internal sales EU
Source : Telecompaper
30% 58
20%
10%
0%
15-18 19-29 30-39 40-49 50-64 Market
Normal Smartphone
Netherlands is the Frontrunner!

4. Total network Tera Bytes
Other 250 TB
M2M
HHBD
IOYM
MBB
apr-09 jul-09 okt-09 jan-10 apr-10 jul-10 okt-10 jan-11
Source : Vodafone Network data
Data growth from apps, mobile web and email

5. 14
12
iPhone
Average Daily MB Used
10
Daily user MB’s
8 6 – 12 MB per day
6
Old device
4
0,75 MB per day
2
0
-13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Days since first iPhone use
Source : Vodafone Network data
Clear iPhone effect

6. Apps usage insights
.

7. Organizers
26%
Source:
Beginners
Addicts
31%
12%
Socializers
31%
98
100 94
90 87
Use more than once per day
80 Use 1 hour or more per day
70
61
60
50
Apps usage per profile: 39 38
40
30
20 14
8
10
0
socializers addicts organizers beginners
Profiles of apps users
Four groups of users, based on different motives

8. “Apps have changed my life”
40
34
Source:
35 32
30
25
20
20
15
10
10
5
5
0
totally agree agree neutral disagree totally disagree
Needs / Motivations:
“Because it makes my life easier…” Connectivity
“It seems fun and entertaining”
Entertainment
“It’s new and I’m curious about what it does”
“Because it will make me more productive” Productivity
The app effect
Big impact on our life

9. Source :
90
80
79
70
71 70
60 66
50 55
50 49
40
40
30
28 26
20 25 24 23
10 17 16 16
10 8 3
0
Connectivity
Entertainment
Productivity
Favourite usage of apps
Social media #1, followed by gaming, news, weather and navigation

10. IOYM General Traffic Distribution
7%
6%
5%
4%
3% Total HTC
2% Thurs Apple
Sunday
1%
0%
M Tu W Th F Sa Su
m
m
m
m
m
m
m
m
am
am
pm
pm
2a
4a
6a
8a
2p
4p
6p
8p
12
10
12
10
IOYM Application Traffic Distribution
700000 7000 10%
600000 6000 8%
500000 5000
Email 6%
400000 4000
Streaming
300000 3000 VOIP (RH axis) 4%
Email
200000 2000
2% Streaming
100000 1000 VOIP
0 0 0%
12am 2am 4am 6am 8am 10am 12pm 2pm 4pm 6pm 8pm 10pm
M Tu W Th F Sa Su
Source : Vodafone network data
Data usage patterns from our network
Per day of the week and per day

11. 24h00
12h00
Source : Vodafone network data
Daily usage pattern of social media apps

12. Future outlook
.

13. Smartphone penetration
grows fast : >50% of all 500 MB per
device sales month / user
Tablets will follow:
100 MB per
month / user
Current ownership and intended purchase of a tablet (%) – Netherlands
Data Explosion, driven by Smartphones and Tablets

14. Challenge from free
communication Apps
Re-balance Re-balance to profit from data growth
Grow new revenues
Challenging the way we do business
We’re in transition to alternative business models

15. Ensure best network (HSDPA+ / LTE)
Ensure seamless customer experience
Ensure key enablers: safety, payment, distribution
What are the ingredients for success?