1. 1 Mobile Broadband Telefónica Technological Strategy Jaime Lluch New Access Networks Technology Manager Sept 2010

3. Some conditions have changed for this expectations to start becoming reality:

4. UMTS evolution towards HSDPA (mainly SW evolution) allows for datarates that are perceived as broadband by the customers

7. Services more adapted to mobility & continuity on the connection like email, social networks, etc.

9. 3 …opportunity that is becoming a reality in terms of adoption… Mobile Data Traffic explosion is a reality… Mobile Data traffic growth of between x2 and x3 YoY in higher traffic Operations (*) …that reflects not only in terms of mobile data growth but also in terms of mobile data adoption (number of customers) Similar multiplying factors in terms number of Mobile Broadband customer evolution (*) Customernumberfor >100MB monthlyconsumption

11. Content customization

12. CDN

15. Cloud

16. Ecommerce

17. Ehealth

23. Intelligent resource allocation from network perspective – provide the end customer the right experience based on customer segmentation, service requirements and subjective quality perception, terminal based differentiation, etc.

24. Evolution from flat-tariffs towards customer specific service proposalsProfitability

26. Technology & spectrum evolution only is not enough to cope with MBB customer expected needs

28. …while evolving towards LTE on 2011-13 timeframe.

31. Higher level of customer segmentation by end to end QoS & differentiated commercial propositions.