Used for an interview @ Truphone.

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VALUE PROPOSITION
Truphone is the only mobile operator in the world that expands the reach of businesses
beyond the borders of their home country. Truphone achieves this by providing multiple
international numbers on a single SIM. This enables businesses to make international calls at
local rates, providing contacts a direct way to get in touch on a local, cost-effective number.
Truphone Increases Productivity, Saves Costs (50% - 93% (£270 - £950 per device per
month) reduction) and offers a truly Global Service.
14%
Local
Presence
9%
Global
Service
Reliability
13%
Great
Customer
Service
14%
Cost
Savings
14%
Increased
Productivity
13%
Global
Presence
9%
Global
Service
Coverage
5%
Global
Bundles
5%
Seamless
Switching
2%
Connectivity
2%
Innovation

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VALUE PROPOSITION
Truly Global Offering

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REVENUE STREAMS
Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery
model.
Truphone Enterprise/SME
Truphone World - Enterprise
•Up to eight numbers on one SIM
•Local rates in the Truphone Zone
•66 countries included in-bundle
•Low rates in over 200 countries
•Fast downloads
•Exceptional international call quality
•Bespoke plans to suit your business -
Enterprise
•24/7 global support
500/1000/2000 Truphone World Plan - SME
1 bundle, 1 tariff, 66 countries
£48/£72/£108 per month
Local #s £5 per Truphone Zone per month
1GB/2GB
£24/£42 per month
Truphone SIM/APP
Our pre-pay zone covers the UK, US and
Australia – choose up to three international
numbers and a single voicemail service, all
on one SIM.
•Up to 3 numbers on one SIM
•6p per minute, message or MB to call, text
or browse data anywhere within the
Truphone Countries1. 7c for Euro-paying
customers. 9c USA and AUD.
•Low rates in over 200 countries
•Excellent international call quality
•24/7 global support
•Keep track of your spending
Free international calls
Excellent international call quality
Better visibility of call rates
Truphone Mobile Recording

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REVENUE STREAMS
Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery
model.

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- business model
REVENUE STREAMS
Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery
model.

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- business model
REVENUE STREAMS
Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery
model.

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- business model
REVENUE STREAMS
Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery
model.

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KEY PARTNERS – TECHNICAL/SALES CHANNELS
Truphone has recently partnered with Verint and NICE to provide global clients with an integrated solution that helps financial
organisations comply with the international spread and evolving mobile recording regulations. Regulations, such as the Dodd Frank Wall
Street Reform and Consumer Protection Act and regional rulings, such as those set by the Financial Conduct Authority (FCA).These new
rules mandate financial institutions that capture, store and retrieve mobile communications across specific mobile communications related
to trading activity in the UK and US, with further regulation being considered across many European and Asian financial centres.
By deploying this solution, breaches of internal rules can be avoided, improving trading floor behaviour, while saving manpower and money
usually spent on policy enforcement. Combined with Truphone Mobile Recording, Verint Recording and Verint Voice of the Customer
Analytics; our integrated solution provides a patent-protected recording infrastructure. Using a single interface, organisations can analyse
and manage large amounts of data, and record seamlessly in over 200 countries, meeting global compliance along the way.
The addition of Truphone Mobile Recording, which provides seamless recording in over 200 countries, gives Nice Trading Recording (NTR)
customers an integrated solution to storing and analysing data, as well as staying in line with global regulatory requirements for mobile call
recording. The integrated NTR system offers organisations the increased security and privacy of having one platform on their premises to
record voice, use instant messenger and utilise data communications across fixed and mobile platforms. NTR suite comprises trading-
floor/back-office recording, combines innovative software and hardware to empower trading floors to actively record and monitor
interactions
BT Global Services markets Truphone Mobile Recording and manages various aspects of the contract in-life including ordering, billing,
collections and reporting. It also leads service reviews on the customer’s behalf. BT's world class service management and customer
service provides an end-to-end solution that can be scaled, according to the subscribers’ needs.

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KEY PARTNERS – SALES CHANNELS
Partnership Ecosystem: this sees Truphone open up its network so that others can use it to sell new services to their customers,
Truphone will allow Bristol Telecom Solutions to ensure its clients have the global mobile service they need to conduct business
internationally.
Together, Truphone and Bristol Telecom Solutions are able to align customer expectations, and budgets with an unparalleled global mobile
communications solution in a complete service offering. The partnership also represents a commitment to world class service, with Bristol
Telecom providing clients with dedicated account managers, regular account reviews and impartial customer support without ‘queues’ to
ensure that customers are more than just a number.
Truphone and Millgate understand that communication is at the heart of a successful business and increasingly the business environment
is international and mobile. This partnership addresses this need directly, with superior customer support and an unparalleled telecoms
service.
WorldNet is an ideal strategic partner due to their global fixed line capability. It became clear in our discussions that Truphone
compliments the WorldNet service and empowers WorldNet to provide both fixed and mobile solutions to multinational companies. This
lower costs and improves service and quality. Our partnership with Truphone means we can offer our customers a fantastic fixed and
mobile solution as well as superior customer service.

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CUSTOMER SEGMENTS
Truphone’s is suited to any and every industry no matter the size only stipulation would be
operations in a multitude of countries. Some of their existing customers can be seen below.
Retail RetailMusic
Finance Music
Advertising Hospitality
Manufacturing Aerospace
Manufacturing

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AWARDS
Winner: Best Business Communications Provider, eBrand Awards 2014
Winner: Best MVNO, Telecoms.com Awards 2014
Winner: Outstanding Enterprise Award, Capital Magazine, 2014
Winner: Customer Service Training International Award, 2014
Shortlisted: Best MVNO, Mobile Industry Awards, 2014
Shortlisted: Best Enterprise Mobile Provider, Global Mobile Awards 2014
Shortlisted: Best innovation (Truphone Mobile Recording), FSTech awards 2014
Shortlisted: Most Innovative Telecom Project, Telecom Asia Awards 2014
Shortlisted: World’s best customer service team, Contact Centre World Awards

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KEY STAKEHOLDERS
Steve Robertson, Chief Executive Officer
Prior to joining Truphone, Steve served as CEO of Openreach from its inception until 2011 –
helping to revolutionise the UK broadband market. Prior to that, he served as Managing
Director of BT Wholesale Operations, and Managing Director of Colt S.A. across Europe.
Steve has an MA from Edinburgh University and an MSc from the London School of
Economics.
James Tagg, Founder and Chief Technology Officer
James studied Engineering and Management at Cambridge University, and has a BSc in
Physics and Computer Science from Manchester University.
Colin Windsor, Chief Operations Officer
Colin is a veteran of major business and IT transformation projects. He was the founding CIO
of Openreach, responsible for the multibillion pound implementation of the technology that
underpins all UK fixed line telecoms operators. Prior to joining Truphone, Colin served as a
partner within PricewaterhouseCoopers Consulting (PwC) and spent two years driving
organisational change and data driven performance at Ribbit Inc. in Silicon Valley.

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KEY STAKEHOLDERS
Alan More, Chief Information Officer
Alan has held a wide variety of senior business and technology roles, most recently with
Centrica plc, the FTSE 30 integrated energy company. There he delivered the hostile
acquisition of Venture Production plc, and, for Centrica Energy, was CIO; Strategy and
Innovation Director. Prior to Centrica Alan worked for consulting firm A.T. Kearney in the UK
and Australasia, and helped build a retail technology business. He holds a PhD from the
University of Southampton.
Tim Raby SVP, Truphone Americas
Tim has been shaping the future of mobile technology and IT in international marketplaces
for 30 years. Prior to joining Truphone, Tim headed technology and major customer projects
for Obsidian Wireless Compliant Solutions, which was acquired by Truphone in 2012.
Formerly, he was CEO of OMTP, responsible for key industry wide initiatives such as gaining
agreement of Micro USB for device connectivity. Tim also led the Devices division for O2
Group where he owned all terminal technology, testing and portfolio activity during
the European 3G launch period.

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KEY STAKEHOLDERS
Harminder Sehmi, Finance Director
Harminder has over 20 years’ experience in the Telco and digital media space. He has a
record building profitable businesses in both blue chip and startup environments. He brings
detailed working knowledge of international finance to his strategic role at Truphone.
Harminder is a registered Chartered Accountant and an MBA from Cranfield, with
experience spanning strategic planning, decision support, ERP systems, process
reengineering, business simplification, cost reduction and major turnarounds.
Gregory Mappledoram, General Counsel & Company Secretary
Greg provides legal counsel in relation to all of Truphone’s commercial operations as well as
all matters of employment, corporate and commercial law. His team spans legal jurisdictions
in Asia Pacific, Europe and the Americas, as well as regulatory affairs and IP protection. Greg
joined Truphone in 2009 following 12 years in various legal positions across communications
organisations ranging from BT Plc. to Intec Plc. Greg is admitted as a practising Solicitor in
England & Wales and has an LLB and LLM in International and Comparative Business Law.

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KEY STAKEHOLDERS
Igor Borisoglebski, Networks Director
Igor joined Truphone in 2008 with a top class Engineering Degree in Electronics, Telecommunications and Computing
from the Instituto Superior de Engenharia in Lisbon. Working closely for several years with company founder James
Tagg, Igor has emerged as a leading light in the global telecoms arena in his own right, with several patents in global
telecommunications that help underpin Truphone’s unique proposition. A Post Graduate in International Management,
Igor has built a strong team of leaders in the organisation to design, develop and run the global mobile network at the
heart of Truphone.
Elliot Cox, Director of Corporate Strategy
Elliot has been at the heart of Truphone’s commercial strategy since he joined the company in 2007. Prior to joining
Truphone, Elliot served in a range of commercial and strategic roles covering over a decade on the innovative side of
mobile telecoms, including five years with Virgin Mobile UK and strategic projects with BT Retail. Elliot holds an MBA
from Imperial College London, where he led a research project into Discontinuous Innovation which was published by
Imperial College in 2013. In his current role he is tasked with accelerating the growth of the business through
identifying, prioritising and supporting the execution of strategic opportunities
David Campbell, Director of Customer Services
David, a Chartered Engineer, began his career in Scotland as an apprentice telecoms engineer. Prior to joining Truphone
he spend over 20 years in a variety of senior international roles, including running a $2bn/year Global Supply Chain
Management organization, completing the $1bn acquisition and postmerger integration of Infonet, managing a £2.5bn
Superfast Fibre broadband programme at BT Openreach, and as Chief Strategy Officer at Qatar National Broadband
Network. Married with two sons David has an MBA and a degree in Telecom and Electronic

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LOCATIONS
1. Europe
a) United Kingdom - London
b) The Netherlands - Bilthoven
c) Germany - Oberursel
d) Spain - Madrid
e) Poland - Warsaw
f) Portugal - Lisbon
2. Americas
a) United States - Cleveland, Ohio
b) United States - Durham, NC
c) United States – New York
3. Asia Pacific
a) Australia - Sydney
b) Hong Kong

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KEY RESOURCES – COST STRUCTURE
A mobile infrastructure designed for global business.
Additional bi-lateral roaming agreements with
a wide range of operators around the world
Scalable by volume,
geography and
Innovation.
By connecting the control plane
to radio access networks
around the world, Truphone can
see and manage each
subscriber in real time, wherever
they go. This is a unique,
cornerstone capability for
Truphone, enabling advanced
services and network-level
customer service internationally.

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KEY RESOURCES – COST STRUCTURE
Patented Technical innovations:
1. Current Innovations:
a) The Truphone SIM, IMSI broker pair, Smart CLI , Smart Dialling., International recording in a mobile network and Call Forking
2. Planned Innovations:
a) Truphone has planned and tested GSM-to- VoIP integration with its own Internet Calling Application, the Truphone App, and
VoIP integration with customers’ enterprise VoIP networks.
b) Several new integrations are already planned, including integration with various enterprise Voice over Internet Protocol (VoIP)
calling networks. Project Clearwater Demos With Truphone, Canonical, TeleStax and Fairwaves at #MWC15
Technical Networks group
1. Senior industry leaders, some of whom hold cornerstone worldwide patents in GSM and IP communications technologies.
2. Business Support Services team in London
3. High degree of technical training and flexibility. This was one of the reasons Truphone sited its main network office in Lisbon, close to
the Instituto Superior Técnico; one of Europe’s leading telecommunications universities. Recruits are highly educated telecoms
engineers who undergo advanced Truphone networks training through the Truphone Networks Academy,
4. Truphone Operations Centre – which takes care of all Truphone environments on a 24/7 basis.
5. Architecture Team – which ensures the network is scalable, the roadmap can be delivered upon, and that the technology evolves in the
right way.
6. Project Management – which keeps all cross-functional groups organised and working to a cohesive plan.
7. Service Management – which continually tests and iterates upon processes to find incremental improvements.
8. Development Team – which designs and builds network elements to meet the needs of the business, but which cannot be bought off-
the-shelf.
9. Network Performance Group – which monitors and reports on the performance of each network element.
10. Testing and Quality – which ensures all elements are tested prior to roll-out; this includes documentation and training of all changes
and processes.
11. IP Network Team – which designs, builds and manages the datacentre networks, IP transport between countries and interconnects to
external partners.
12. Operations Support Services – which ensure we have the right tools to drive efficient operations.

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KEY CHALLENGES
Truphone is developing a number of new methods to monetise its global network, with the company also aiming to get more traffic in
the process. ‘While we have possibly the highest ARPUs on the planet we don’t have enough of them to up our traffic in order to break
even,’ Truphone’s head of research and development James Body told Mobile. ‘We’re developing a number of new strategies that not only
increase traffic but also represent different revenue streams with higher margins.’
One of the new revenue streams that Truphone is pursuing is described as a ‘partnership ecosystem’, this sees it open up its network so
that others can use it to sell new services to their customers, Body explained. ’With the partnership eco-system we’re putting in, it’s about
creating an infrastructure that allows other companies to use our network to provide services to their customers that they couldn’t before.
Our UK sales director Andrew Lowe is leading that. What we provide is a ready-made network with global reach that they can plug into
once and then achieve global reach, which gives them an advantage.’
Another space the network is exploring is the application market. In order to make this work Truphone has built a new cloud-based
platform for developers to use: ‘The other area we’re looking at is the new application-based market, to which we’re building a new
platform, taking the MNO into the cloud. We have identified telecoms apps as a new area to sell into. Having feature-rich applications is
a key differentiator; it’s not about minutes and data it’s about what your network can do if you are a bank or business.
‘It’s all about increasing traffic and giving ourselves new higher-margin revenue streams. It’s the future for telcos – as traffic revenues
continue to disappear, applications will be required to generate more revenue. We’ve found that with our mobile recording service for
banks, which has been a key differentiator for those customers.
Body said that they had also found other benefits in its use of open source platforms: ‘A lot of these new methods are open source and
don’t actually cost a lot of money to put in place. One of the things we found with the old Truphone infrastructure was that it was quite
difficult to change. But the settings with open source stuff are flexible – if something is not working or we need to change the
functionality, we can change it. A
major benefit of the open source platform is the speed at which we can change things.’

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KEY CHALLENGES
Challenge 1
Roaming charges in the European Union are unlikely to be removed by the end of 2015 after member states voted in favour of a delay. Fees
for making calls, sending texts and using mobile data could now remain until at least 2018.
Truphone view
‘Our Truphone World tariff plan means that the European roaming regulations are irrelevant for our customers, and so they should be
because not only are businesses and trade going increasingly global but also communication trends such as IP communications, the
internet of things and cloud computing extend far beyond the reach of the 28 EU member states.
The demand for international data is skyrocketing across the whole of Europe, America, Asia and Oceania, so the EU data roaming
proposals do not have a large impact on our customers or our business plan.’
My view
Product/Service differentiation to cater to these new growing markets as well has offering Truphone services to non EU countries limits the
impact of the changes to the business but it still has an impact. It will impact the value proposition of Truphone because it’ll change the
cost saving element. For example if your value proposition currently proposes savings of 50%-93%, then a 10 percent reduction in roaming
charges will bring down the cost savings element of the value proposition to 44%-89%, a 20% reduction takes it to 38%-88%,. So it does
have an effect.
But this is problem for 2018.

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KEY CHALLENGES
Headcount reduction cutting roughly 25% + £91m loss in 2013 to go with a £35M loss in 2012
Headcount reduction £91m loss in 2013 to go with a £35M loss in 2012 as it has pursued aggressive international expansion but UK's
performing strongly interims of sales growth. “There is no question we are going to burn less cash than we previously did,” Truphone Chief
Executive Steve Robertson said in a phone interview. “We are going to need less people.”
“We are still expecting to treble the size of the business,” Robertson said. “This isn’t a policy where we are going to retrench the business.”
“The drivers are the growth in mobility and continued globalisation - business has become international,”
“We are still expecting to treble the size of the business,” Robertson said. “This isn’t a policy where we are going to retrench the business.”
“However, it has become clear that, while Truphone continues to grow quarter on quarter, we must accelerate our progress towards
profitability,” Robertson said.
Truphone is still at a relatively early stage of its development. We have invested £200m in the past two and a half years to develop and
improve our infrastructure to create a unique, scalable network and to roll out our value proposition to additional territories.’
Looking at the big picture trends such as the demand for IP communications, internet of things and cloud computing, the international
use of data is surging, and we are uniquely placed to benefit from this. We and our investors are very happy with progress.’
He’s stated some key points here with regards to how this problem is being handled. What is your take on this this as an insider?

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INVESTORS
Alexander Abramov £210M - 60%
Minden £81M 23%,
Straub Ventures, Burda Digital Ventures, Eden Ventures, Independent News & Media (now part of the empire of another Russian oligarch,
Alexander Lebedev) and Wellington Partners
£42M 12 %
Others - £17M 5%
Total Valuation £350M

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THREATS
Hutchison Whampoa reveals wholesale plans to enable global MVNOs
Hutchison Whampoa’s mobile wholesale business unit, Hue, has launched a global operator-led mobile virtual network enabler (MVNE) to
act as a single point of entry for MVNOs.
The MVNE platform will allow users access Whampoa’s networks across Europe and Asia and moves one step closer towards building an
international MVNO. For companies wanting to gain connectivity outside Whampoa’s footprint, Hue will negotiate with local operators in
order to provide connectivity.
Hutchison Whampoa claims the platform will be aimed at operators who want to access a wholesale agreement on one price covering
more than one geography. It is targeting brands that are looking to enable their customers to use data or mobile services in different
markets and M2M businesses who are looking to track company devices over a wider area. In this way the company look to usher in a
new market by creating one environment across Europe.
‘Today’s mobile wholesale market is fragmented and new entrants to mobile are often challenged with needing to understand market
nuances and regulations in different countries,’ said Jarrod Nink, CEO of Hue.
’Hutchison Whampoa’s industry-wide credibility provides our customers with the reassurance that they will be able to connect end users to
the latest 4G technology and robust networks.’
Threat to Truphone
Partnerships with a number of MVNOs are expected to be announced in the coming months. However, with Google allegedly eyeing up an
international calling deal with Whampoa, the launch is set to open up competition in a marketplace already occupied by companies such
as Truphone.

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OTHER FACTORS
•RAN commoditization
•MVNO disassociation
•Truphone joins GSMA as an Associate Member
•Product Innovation
•The longer term view on mobile communications is that as everything moves to data only, for example with the developments of
VoLTE, mobile VoIP, protocols like WebRTC, and the prevalence of various IM applications, the future will be about capturing
wireless data packets rather than GSM mobile voice. Mobile voice will simply be one of many data packets transited to and from a
wireless device.
•Video Built-into the Phone
•APIs and WebRTC
•Wi-Fi
•Bridging
•Bring Your Own Device
•Health and Well-being

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OTHER FACTORS