QITCOM 2011 Presentation: Super-fast broadband for Qatar Presenter: Mr. Julian Kersey, Regulatory Manager - Vodafone Qatar

1. QITCOM 2011Vodafone Qatar Super-fastbroadbandfor Qatar

2. Who areVodafone Qatar? >Vodafone and Qatar Foundation (VQF) is the company formed by Vodafone Group and the Qatar Foundation – VQF owns 45 percent of Vodafone Qatar > Listed on the Doha Exchange > Mobile license in June 2008; Fixed license in April 2010 >757,000 mobile customers = 26.7% market share

3. International experience in Fixed >5th largest provider of fixed broadband in Europe >5.4 million customers across 9 countries >Fixed businesses outside Europe in Turkey, Egypt, New Zealand, Ghana and Qatar.

4. Fibre initiatives we’re involved in MOU signed with TI and other players for Italian fibre NGN to cover 50% population. Ongoing negotiations on business plan, governance model, size of TI self-build carve-out and access conditions. QNBN company formed and work underway for FTTH roll-out. Vodafone Portugal and Optimus have granted reciprocal access to their FTTH networks covering 200K households each. Customer access/migration has begun. Vodafone / Telecom have won fibre-wireless tender for Govt. NZ$285m Rural Broadband Initiative. Vodafone heavily involved in NBN Co proposals (POI etc…) as potential access seeker. Bill has passed Parliament for A$43 bn roll-out (93% population by FTTH, 7% wireless and satellite).

5. Fixed altnets Mobile networks including incumbents Incumbent fixed networks Share of Free Cash Flow (Sep-05 to Sep-09) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% UK Ireland Italy Greece Germany France Netherlands Portugal Spain The time is right for QNBN Qatar has the opportunity to leapfrog a generation of copper access regulation – which has not created sustainable competition. Altnets generate 5% FCF and virtually all of this is through cable networks.

6. Open architecture drives competition WIK Consult’s recent modeling of different fibre architectures and wholesale models showed that: Networks that can be unbundled are superior to bitstream-only GPON in terms of consumer surplus and welfare P2P fibre and GPON over P2P showed greatest levels of consumer surplus and total welfare – QNBN design allows for both

8. Open architecture from the beginning > As there is currently limited FTTH rollout the QNBN project will mean that all fibre deployed in Qatar can be open. > Any legacy fibre not to QNBN standards will be upgraded or overbuilt. > The standardised approach will benefit all providers and give certainty to developers. > The QNBN also ensures a level playing field with access seekers purchasing access from QNBN on an equivalent basis.

9. A bold step towards the 2030 Vision Actively leverage ICT to support the realization of Qatar’s overall national development goals and position Qatar as a leading knowledge economy enabled by ICT by 2015. ictQATAR 2015 Vision A knowledge-based economy characterized by innovation; entrepreneurship; excellence in education; a world-class infrastructural backbone; the efficient delivery of public services; and transparent and accountable government. Qatar National Vision 2030

11. Governance

12. Medium and long term ownership

13. Regulatory Issues

14. RIOs

15. Copper switch-off

16. Prevent over-recovery of costs for incumbent

17. Ecosystem

18. Planning and rollout issues

19. Policy framework to drive uptake