Mobile Broadband Challenge



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Mobile Broadband Challenge Telenor Capital Markets Day June 2008 Johan Dennelind, CEO of DiGi DiGi on the rise Started in 1995 as the smallest operator Revenue market share from 17% in 2004 to 26% end 2007 32% prepaid revenue market share end 2007 30 % 25 % 20 % 15 % DiGi Market Share USD 5.6 bn market cap, ~2000 employees 10 % Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Subscriber Share Mobile Revenue Share 2

High level of commoditization in traditional mobile services more competition = pressure on tariffs and margins Data services Many and challenges Broadband services maturing market; high SIM penetration pressure to differentiate products and services slow uptake of new data services 3 DiGi now has 3G license to compete! Completed 3G spectrum transfer Joint business initiatives Good prospects for broadband growth Some key benefits: additional spectrum capacity increased network & spectrum efficiencies positive brand impact & customer retention 4

Immature broadband market, huge upside Current household penetration 16% Demand to be stimulated by Govt initiatives 12 mill dial-up users High mobile penetration Broadband Subscribers in Malaysia 3.4 mill 5.6 mill 4.5 mill 0.25 mill 3.4 mill 1.5 mill 2008 2013 2018 Fixed Mobile Source: MCMC Q407/Q108 Source: DiGi estimates 5 Broadband market currently dominated by DSL Existing ADSL services Widely available in urban & suburban areas But take-up impacted by perceived poor quality Wireless broadband picking up Services mainly provided by Maxis, Celcom and UMobile HSPA services WiMAX operators due to launch in coming months WiFi 300k subs Source: MCMC (Q407) HSPA 60k subs ADSL 1.0 mill subs End 2007 6

Targeting commercial launch in Q408 Technology Currently rolling out trial network RFP to be awarded shortly Seamless HSPA /3G/EDGE network Segments Youth, young professionals, business DiGi s mobile base and EDGE users Big screens and small screens Services ISP access with basic, enhanced services Strategic partnerships with content and service providers Value for money good quality at affordable price 7 How DiGi will deliver on this Build quality network supporting both broadband and 3G services Leverage on existing distribution channels Maximise existing 2G radio, access and core network & service platforms Capitalise on Telenor s support and synergies Initially launch in key urban and commercial centres Access Aggregation Core 8

DiGi is well positioned to succeed Robust technology platform and roadmap Strong support and synergies from Telenor Big market opportunity for broadband Wide distribution network & service differentiation Internet to Malaysians Strong commitment to deliver innovative & relevant content Right timing 9 Ranked 1 st in Innovative in Responding to Customer Needs by WSJ 10

Disclaimer This presentation and the following discussion may contain forward looking statements by DiGi.Com Berhad ( DiGi ) related to financial trends for future periods. Some of the statements contained in this presentation or arising from this discussion which are not of historical facts are statements of future expectations with respect to financial conditions, results of operations and businesses, and related plans and objectives. Such forward looking statements are based on DiGi s current views and assumptions including, but not limited to, prevailing economic and market conditions and currently available information. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and, should not be construed, as a representation as to future performance or achievements of DiGi. In particular, such statements should not be regarded as a forecast or projection of future performance of DiGi. It should be noted that the actual performance or achievements of DiGi may vary significantly from such statements. 11