2. THE MISSION OF WIND MOBILE IS EMBODIED IN
The Power of Conversation™
Simply put, we want to create the most unforgettably positive customer
experience in Canada.
How? By speaking with you, not at or over you. By making every site you visit, every store you set foot in and every call you have with us into a meaningful
conversation to help build something better - together. We'll make it as easy as possible to be a customer. You'll have more control over your mobile
experience than you've ever had before. And you'll get all this at a price you can afford.
The result of this vision, the core of what we all believe, is how it effects you ... our customers, our partners.
Dialogue. Simplicity. Control. And Value.
4. WIND MOBILE HAS BUILT CONSIDERABLE REACH IN A VERY
SHORT PERIOD OF TIME…..
• Brand: WIND Mobile
• Network: 3G GSM (HSPA)
• Current subscribers (30Aug 2011): 350K+
• Employees: 1,000+ (Direct); 3,000+ (Indirect)
• Distribution POS: 485: Branded – 181, Other – 304
• Investment: >$1 Billion CAD
4
*In 2008 Auction, GWMC was award licenses in Northern Quebec. These licenses are not AWS and are PCS
extensions and CDMA friendly.
40 MHz
20 MHz
10 MHz
GWMC AWS SPECTRUM HOLDINGS
Note: Circles represent relative population sizes.
40 MHz
20 MHz
10 MHz
GWMC AWS SPECTRUM HOLDINGS
40 MHz
20 MHz
10 MHz
GWMC AWS SPECTRUM HOLDINGS
40 MHz
20 MHz
10 MHz
GWMC AWS SPECTRUM HOLDINGS
Note: Circles represent relative population sizes.
5. DESPITE ONGOING REGULATORY DELAYS WIND
MOBILE AGGRESSIVELY INVESTED AND EXPANDED
INTO CANADA
5
Mar 09 Oct 09 Dec 09Jun/Jul /Aug 08
Entrance into
Canadian spectrum
license auction $220
million bid deposit
OTH participates in a
consortium to create a new
Canadian-owned and
controlled wireless operator
together with Globalive
Communications
Payment of CAD442
million for licenses
Spectrum granted by Industry
Canada providing licenses in
all of Canada, except Quebec,
covering a population of 26
million
CRTC decision declares WIND
Mobile non-compliant with
Canadian ownership and
control rules
CRTC decision varied by
Canadian Government.
WIND Mobile begins
operations and opens stores in
greater Toronto area
December 16th and launched
Calgary the 18th of December
Feb/Mar 10
Launch in Edmonton
and Ottawa
Jun/Jul 10
Launch in Vancouver
Reach 100k
Subscribers
Jan-June 2011
Feb 4 Federal Court
Ruling in favour of
Public and Telus
May 18 Appeals Court hears
argument in law suit
June 8 Court rejects original
court decision and upholds
original Cabinet Order
WIND Mobile
reaches 300k
subscribers
WIND
Aug 2011
Launch Kitchener-
Waterloo
6. THE 2008 AWS SPECTRUM AUCTION SET THE STAGE FOR A
COMPETITIVE TELECOMMUNICATIONS LANDSCAPE AND
RAISED FUNDS BEYOND EXPECATIONS
6
• AWS Auction May 2008-July 2008
• Process insured through “set asides” that
new entrants would have fair access to
spectrum and competition could prevail
• After eight weeks and 331 rounds, 292
licences sold, the Canadian Wireless
Spectrum Auction raised $4.3 Billion for the
Canadian Government
(original expectations quoted at $1 billion)
• WIND Mobile -- 30 licences could be the one
to emerge as the new national mobile
operator
• “The auction exceeded our expectations in
terms of the level of competitive bidding
activity. I hope the industry keeps this
competitive spirit alive as it enhances and
expands its services with improved access to
the spectrum,” said Industry Minister Jim
Prentice.
7. Auction Values of AWS Spectrum
$/MHz/POP
(All Figures in CDN)
WIND MOBILE PURCHASED THE BROADEST AMOUNT OF
SPECTRUM OF NEW ENTRANTS AT THE MOST EFFICIENT
PRICE
7
Incumbent Operators aggressively bid to lock up national
spectrum assets and secure dominant market position….
8. THE CANADIAN WIRELESS TELECOMMUNICATIONS MARKET IS DOMINATED
BY A SUBSET OF INCUMBENTS ON A REGION BY REGION BASIS
British
Columbia
Alberta
Saskatchewa
n
Manitoba Ontario Quebec
New
Brunswick
PEI Nova Scotia
Newfoundla
nd
The North
Other 0% 0% 78% 57% 0.8% 0% 0% 0% 0% 0% 10%
NE: Videotron 0% 0% 0% 0% 0% 2.8% 0% 0% 0% 0% 0%
NE: Public 0% 0% 0% 0% 0.3% 0.2% 0% 0% 0% 0% 0%
NE: Mobilicity 0% 0% 0% 0% 0.6% 0% 0% 0% 0% 0% 0%
NE: WIND 1% 1% 0% 0% 1.3% 0% 0% 0% 0% 0% 0%
Rogers 42% 27% 13% 29% 47% 33% 20% 17% 20% 3% 0%
Telus 40% 50% 5% 10% 20% 27% 18% 21% 24% 21% 0%
Bell Group 17% 22% 4% 3% 30% 37% 61% 62% 56% 76% 90%
17%
22%
4% 3%
30%
37%
61% 62%
56%
76%
90%
40%
50%
5% 10%
20%
27%
18% 21%
24%
21%
0%
42%
27%
13%
29%
47%
33%
20% 17% 20%
3%
0%
0% 0%
78%
57%
0.8% 0% 0% 0% 0% 0%
10%
0% 0%
0%
0%
0% 2.8% 0% 0% 0% 0%
0%
1% 1%
0%
0%
1.3% 0%
0% 0% 0% 0%
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
%MarketShare
Wirelesssubscribermarket share, by province (2010)
Source: CRTC Communications Monitoring Report, July 2011
Notes: 1. “Other” includes MTS Allstream, Sasktel, and smaller WSPs.
2. “Bell Group” includes: Bell Canada, Northwestel Mobility, Telebec, Northern Tel, Skyterra, Virgin, and Latitude Wireless
3. NE – stands for “New Entrants” – WIND Management estimated splits between New entrants – “New Entrants” refer to the new wireless entities that acquired
spectrum in Industry Canada’s 2008 AWS spectrum auction
4. The North includes Yukon, the Northwest Territories, and Nunavut
• Most regions are
effectively
controlled by two
large players with a
third player taking
smaller market
shares
• The wireless market
is dominated by
Bell, Telus, and
Rogers (ROBELUS)
currently
controlling almost
95% of the market
8
9. CANADA IS CONTROLLED BY THREE PLAYERS -- AMONG THE HIGHEST
PROFIT MARGINS IN THE WORLD
Mobile
$17.93B,
43%
Internet
$6.672B,
16%
Wireline
Voice
$12.51B,
30%
Data and
Private
Line
$4.587B,
11%
Telecommunications
revenues
$41.7 billion in 2010
Canadian Wireless Revenues in Billions 2006 2007 2008 2009 2010
Retail 12 14 16 16 17
Wholesale 0.5 0.5 0.5 0.5 0.5
Wireless Total 12.7 14.7 16.0 16.9 18.0
Growth 15.20% 15.5% 9.3% 5.3% 6.6%
EBITDA MARGIN 44.1% 44.9% 44.9% 43.1% 41.4%
CAPEX 1.7 1.9 6.1 2.2 1.8
1.7% 2.5% 2.7% 4.8% 5.0% 6.3% 8.0% 10.0%
52% 54% 59%
67%
72% 74% 77%
97% 96% 96% 94% 94% 93% 91% 89%
99% 99% 99% 99% 99% 99% 99% 99%
0%
20%
40%
60%
80%
100%
2002 2003 2004 2005 2006 2007 2008 2009
Canadianpenetration rates
Wireline Wireline and/or wireless
Wireless(Only) Wirelessof Households
Source: 2011 CRTC Communications Monitoring Report, July 20119
Top 5 ILECS and Top 5 Cablecos generate 92% of
Industry revenues
10. NEW ENTRANTS PROVIDE COMPETITION IN CITIES
LAUNCHED GENERATING SIGNIFICANT ECONOMIC
BENEFITS AT THE CITY LEVEL
10 Source: CRTC’s Communications Monitoring Report, Table 5.5.8 and Table 5.5.9
• Averages calculated on market share and population weighted basis – CRTC Source: Price comparison
study conducted for the CRTC in April 2011 by Wall Communications Inc
Baskets Vancouver Toronto Montreal Average
Level 1 Basket (low-volume use, 150 minutes per month)
Incumbents 32.29 34.26 34.53 33.69
New Entrants 23.40 25.27 30.58 26.41
Percentage Differential -28% -26% -11% -22%
Level 2 (average use, 450 minutes and 200 text per month)
Incumbents 51.18 49.51 51.09 50.59
New Entrants 43.05 45.37 51.45 46.62
Percentage Differential -16% -8% 1% -8%
Level 3 Basket (high-volume use, 1200 minutes, 200 text and 1GB data per month)
Incumbents 99.88 99.88 98.48 99.41
New Entrants 51.35 51.35 98.90 67.20
Percentage Differential -49% -49% 0% -342%
Baskets Vancouver Toronto Montreal Average
Incumbents 53.32 52.32 52.97 52.54
New Entrants 40.00 40.00 34.96 38.32
Percentage Differential -24% -24% -34% -27%
Canadian wireless monthly service rate - incumbents v. new entrants (2010)
Canadian wireless monthly Internet service rates - incumbents v. new entrants (2010)
WIND markets
11. CURRENT SPECTRUM HOLDINGS: FAIR AND REASONABLE ACCESS
TO SPECTRUM WILL IMPROVE COMPETITION, WIRELESS
PENETRATION, AND TECHNOLOGY INNOVATION
11
31%
39% 39% 39% 39% 39%
35%
31%
39% 39% 39% 39% 39% 39%
31%
43%
39%
19%
22%
37% 45%
46%
41% 43% 43%
39%
43%
39%
28%
4%
35%
15%
4% 4%
4%
4%
4%
7%
4%
4%
4%
4%
4% 4%
4%
4%
4%
4%
4% 4%
4%
15%
7%
15% 15%
22%
11% 11%
4%
7%
20%
1%
8%
1%
19%
15%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Other
Videotron
Public Mobile
Mobilicity
Wind
SaskTel
MTS
Bell and Telus
Rogers
*Graph excludes BRS spectrum (2500-2690 MHz)
Source: Ownership percentages are based on charts 4-1, 4-2 and 4-3 of the IC Spectrum Consultation
document. All percentages are approximate.
• Rogers, Bell, and
TELUS are the
predominant
spectrum holders
by regions with
close to 80%* of
the total spectrum
across markets
• Bell and TELUS
hold significant
spectrum in every
market
nationwide
(except
Saskatchewan
and Manitoba)
but have decided
not to build out
their networks
and instead rely
on a network
sharing
agreement to
serve their
subscribers.
12. WHILE IMPROVING SINCE THE AUCTION CANADA CONTINUES
TO SIGNIFICANTLY LAG DEVELOPED COUNTRIES IN TERMS OF
WIRELESS PENETRATION AND INNOVATION62%
64%
73%
84%
93%
94%
98%
100%
104%
104%
105%
107%
111%
113%
114%
115%
119%
120%
120%
122%
122%
129%
133%
139%
143%
144%
147%
150%
156%
156%
156%
160%
160%
India
China
Canada
Mexico
Japan
Morocco
USA
France
S.Korea
SouthAfrica
Thailand
Brazil
Belgium
Hungary
Netherlands
G8Average
Ukraine
Malaysia
UK
NewZealand
Poland
CzechRepublic
Germany
Sweden
Singapore
Denmark
Austria
Italy
Greece
Russia
Russia
Portugal
Finland
Canada has the lowest developed market wireless penetration rates with significant
room to grow
Source: Bank of America 4/28/2011 Global Wireless Matrix
+25%
+42%
12
13. COMPETITION IS LEADING TO MORE INNOVATION
LOWER COSTS AND SIGNIFICANT DIRECT AND
INDIRECT ECONOMIC DEVELOPMENT
13
Why Canada lags
• Regional oligopolies
have reduced price
and product
competition
steadfastly driving
ARPU up and limiting
product offerings
• Smaller size of market
not ensuring optimal
conditions
• Slower adoption of
worldwide technology
standards
Ready for change
•Massive re-investment
in cutting edge
technology
•Increased competition
•Mobile device costs
over time have
decreased
•Better speeds and
improved technology
•No hidden fees
•Adopting international
best practices
•Wireline replacement
improving business
efficiency
•Lower costs to mobile
users
•Competition driving
innovation in
application
•Innovation in mobile
payments, mobile
commerce, social
media…
14. NATIONAL, REGIONAL AND LOCAL BUSINESS DEVELOPMENT
ORGANIZATIONS PLAY A CRITICAL ROLE IN CREATING A
GROWTH BASED ECONOMIC ENVIRONMENT
14
• Drive public awareness on the importance of wireless telecommunications
to local business
• Direct and indirect employment, income and taxation benefits to local
communities
• Significant reduction in prices and delivery of advanced products to
make local businesses and communities more efficient
• Facilitate fair and open access to deploy new infrastructure in communities
according to the strict industry standards in place in Canada
THE IMPACT OF WIRELESS TELECOMMUNICATIONS – LET’S GET CONNECTED