1) The iPhone is driving significantly higher usage of mobile internet and data services. iPhone users in Germany use on average 30 times more data than other T-Mobile customers. 2) Surveys show that iPhone users engage in internet browsing, emailing, messaging, and music/video consumption significantly more than with other mobile phones due to the iPhone's simplicity and touch interface. 3) T-Mobile networks, particularly in Germany and the Netherlands, have delivered the fastest average 3G download speeds for iPhone users worldwide according to a Wired.com survey. This has benefited T-Mobile with gaining more data-focused and profitable customers.

1. How iPhone is changing usage of mobile
Internet
Tuesday Business Network, Prague, 2008 September 10th
Alexander Graf v. Schmettow 27. August 2008 1

2. Mobile internet @ T-Mobile.
Key differentiators for superior user experiences and simplicity.
Product Price Device Place Promotion
web‘n‘walk Transparent & Internet & Bundle, CRM,
worry free multimedia eChannel
Confined Good, better, best
connectivity
Pre-/Postpaid Best connectivity, Best partners
new devices
Mobile
broadband
Network GSM (GPRS/Edge), 3G (UMTS), enhanced 3G (HSxPA), NGMN, WLAN – coverage & quality
1 MID= mobile internet device, UMPC = ultra mobile personal computer
Alexander Graf v. Schmettow 27. August 2008 2

3. T-Mobile partners. Internet Service Partners
Examples.
Instant Messaging Partners
Content Partners Handset Partners Mobile BB Device Partners SW/ Platform
Alexander Graf v. Schmettow 27. August 2008 3

4. Mobile industry revenues.
Data as growth driver.
Mobile user spendings Western Europe
In USD, bn. CAGR06-10
158 160 162 164 Total +2%
153
10 28 Data +30%
16 11 SMS -8%
127 125 Voice 0%
2006 2007 2008 2009 2010
0,1 0,2 0,9 1,7 2,6 Mobile advertising1,2 +70%
1,5 2,0 2,6 3,0 3,5 Mobile music1,3 +17%
0,0 0,0 0,3 0,6 1,0 Mobile TV1,4 +92%
(1) CAGR2008-10
Sources: IDC 07/2007 (2) Strategy Analytics 05/2007; (3) PW 06/2007; geographic scope: EMEA (4) IDC 05/2008
C
Alexander Graf v. Schmettow 27. August 2008 4

5. Introduction: Mobile dataisreallytaking off.
Data revenues per quarter (Europe)
without Messaging (in Mio. €)
350
301
278
240 261
216
192
188
162
Q2 Q3 Q4/ Q1 Q2 Q3 Q4 Q1 Q2
2006 2007 2008
Alexander Graf v. Schmettow 27. August 2008 5

6. Introduction: Mobilizetheinternet.
web‘n‘walk users in Europe (DE, NL, AT, CZ, UK)
users in 1000
4,146
3,836
3,239
2,822
2,409
2,105
1,890
880
627
Q2 Q3 Q4/ Q1 Q2 Q3 Q4 Q1 Q2
2006 2007 2008
Alexander Graf v. Schmettow 27. August 2008 6

7. T-Mobile and theApple iPhone: a successstory.
First generation iPhone (launched in November 2007)
over 100.000 devicessold in Germany until May 2008
(10.000 devicessold in first 24 hours)
Second generation iPhone 3G (launched in July 2008)
over 75.000 devicessold in Germany until August 2008
(15.000 devicessold in first 24 hours)
T-Mobile sells iPhone 3G in:
Germany*
Austria
Netherlands*
Czech Republic
Slovakia
Hungary*
Poland (ERA)
Croatiato followsoon
* exklusive salespartner
Alexander Graf v. Schmettow 27. August 2008 7

8. W ired.comiPhone 3GSurvey:
T-Mobile with best net performanceworldwide
Results:
European T-Mobile users reported
the fastest 3G Download Speeds:
1,822 Kbps on average.
Users in Germany and the
Netherlands reported the fastest
average 3G download speeds –
about 2,000 Kbps.
Source: http://blog.wired.com/gadgets/2008/08/
global-iphone-3.html
Alexander Graf v. Schmettow 27. August 2008 8

9. LearningsfromT-Mobile Germany:
iPhone ownerswith significant stronger useof mobile internet
91 percent of iPhone customersusemobile dataservices
Data usageof averageiPhone customersup to 30 timeshigher datausagecompared
to TMD private customer
Monthly avg. MB usageper data activesubscribers (private customers; 05/2008)
Budget tariff postpaid, small 1 MB
Budget tariff postpaid, large 2 MB
Flatrate postpaid, large 8 MB
Complete tariffs 80 MB
Alexander Graf v. Schmettow 27. August 2008 9

10. LearningsfromT-Mobile Germany:
gaining interesting customerswith theiPhone
T-Mobile customersmigrated to a Complete tariff with
a 25 percent higher MoRPUafter migration
MOC (voice) minutes +2 %
SMS +9 %
EDGEdatavolume +2615 %
WLAN (wi-fi) datavolume +947 %
Alexander Graf v. Schmettow 27. August 2008 10

11. Surveys: iPhone usersin thefocusof market research
1. Europe
TheNielsen Company, iPhone users in UK, FR, DE, IT, ES, SE (July 2008)
73% 63% 15% 63%
of usersaremale of usersusethe of usersdo online- paytheir bill them-
(51 percent averageof internet browser gaming with their selves
mobile phoneusers) Safari on their iPhone iPhone
Alexander Graf v. Schmettow 27. August 2008 11

12. Surveys: iPhone usersin thefocusof market research
2. USA
Rubicon Consulting, US customers(March 2008)
most used datafunctions:
1. read e-mails(72 percent)
2. send/read text messages(about 70 percent)
3. browsetheweb (about 68 percent)
4. listening to music (60 percent)
5. browsetheweb via W (60 percent)
i-Fi
6. check mycalendar (about 60 percent)
7. check mycontacts(about 60 percent)
8. composee-mails(about 58 percent)
9. watch videoson theweb (about 32 percent)
Alexander Graf v. Schmettow 27. August 2008 12

13. Surveys: iPhone usersin thefocusof market research
2. USA
“I do a lot more browsing on the iPhone than I did on my previous mobile phone”
stronglydisagree
8%
mildlydisagree
16%
stronglyagree
mildlyagree 55%
22%
manyancedotal reportsclaimthat peoplebrowsemoreon theiPhone than on other mobile devices, because
of theiPhone browser‘sbetter compatiblityand touchscreen controls. (source: Rubicon Consulting, Inc.)
Alexander Graf v. Schmettow 27. August 2008 13

14. W isthereason?
hat
Simplicity.
Example: Weather forecast on your mobile phone
iPhone: One fingertip Traditional mobile phonewith internet-access
1. opening Menu
2. opening Internet
3. opening bookmarks
4. selecting weather
5. waiting for databeing downloaded…
Alexander Graf v. Schmettow 27. August 2008 14

15. Thank you for your attention!
Alexander Graf v. Schmettow 27. August 2008 15