WiMAX Are you ready to be disrupted?

1. WiMAX Are you ready to be disrupted? John Munnery Chairman of the Board of Directors, TransTelecom Ltd.

2. Question 1: Do you or your employer pay for broadband in the office?

3. Question2: Do you pay for broadband at home?

4. Question 3: Do you or your employer pay for broadband when you travel?

5. So What? WiMAX from TransTelecom will give you all of this for one, cheap subscription - plus lots more

6. Now have I got Your attention?

7. Commercial Characteristics of WiMAX • Broadband direct access to customers • Bearer for all services – Internet, Voice (IP), Video • Equally applicable to business (VPN, etc) and consumer use • Optimized for data – upload as fast as download • Capability for quick nationwide coverage • New generation pricing model – subscription based rather than event driven; on-net eat as much as you can get …

8. The Vision of the Future • Personal Broadband Anywhere • Communicate Anywhere • Collaborate Anywhere • Applications Anywhere • Content Anywhere • Print Anywhere • Entertainment Anywhere • Monitor Services Anywhere • Simply the biggest step change in the market since the advent of cellular

9. The current state of play • IEE 802.16 standard defines a cellular structure, with cells of size comparable to GSM (up to10’s of kilometres). WiMAX is not WiFi! • Evolutionary approach – fixed/nomadic/mobile/embedded devices ($10 chip set is on the way) • 802.16d networks are already operating profitable static models • 802.16e mobile networks will be a reality in early 2007 • TDD pre-16e networks are already rolling out; we convert this month from 16d (FDD) to TDD • Roaming will follow in due course

10. Products • First offering to be static CPE, with indoor or outdoor antenna depending on position and capacity needs of customer; we bundle the CPE with the subscription (like ADSL) • PCM-CIA cards in Q4 2007; USB devices on the way • New Laptops enabled from Q1 2008 • Hand held devices (phones, PDAs, etc) from 2008 • Other embedded devices in 2008/9 • VOIP is bundled – with several access systems – PC phone, IP phone or Analogue Telephone adapter • Synergy with WiFi – WiFi base stations may be driven by WiMAX for hot-spot coverage

11. Serving the Traditional broadband customer – the basic offering There are four key propositions for serving the traditional segment of fixed broadband connectivity: Availability: We will deliver WiMAX to areas where broadband was not available before The phone line in the box: If customers never want to see the incumbent again, they can pick up their WiMAX connection in the supermarket – carry it home, plug it in and start to talk & surf. Price: With WiMAX, our customers save the monthly base fee to the telecom operator – there is no extra fixed phone line subscription A totally new customer experience: Whilst keeping old habits simply plug the phone set out of the wall and connect it to the CPE of WiMAX

12. The Austrian Example • Our opening proposition: • A symmetrical DSL service for slightly less than BTC DSL rate • Bundled with a VOIP phone line free of monthly subscription • Cheap VOIP call charges – especially international • Fixed CPE included in the deal (effectively leased)

13. The TransTelecom Vision • 16e technology, using 16d as a stepping stone in the short term (now almost over) • Fast route to NGN via IMS (enabling interoperability between existing voice and data networks, and providing multimedia services for fixed and mobile applications) • As much investment in the core network as in the access technology • Blended fixed and mobile applications • How much are we spending? – a Capex budget of some 25m Euro over the next 3 years • When will we launch? – our soft launch started in early April in Kurdjali for market and technical test purposes; we are now present in 5 cities and in 10 by end May; 100 new sites now under procurement for deployment from Sep

14. But this is the end Goal:

15. Thank You for Your Attention! john.munnery@transtelecom.bg