NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS

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NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
NEW T-MOBILE
                          ACCELERATING
                         COMPETITION IN
                        THE NETHERLANDS
New T-Mobile accelerates competition in the Netherlands   1
NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
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NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
OUR PROMISES

                                                          ¡¡ We believe that Dutch consumers deserve better
                                                             competition in the telecom market. The merger
                                                             between T-Mobile and Tele2 will deliver on that.
                                                             As a strong third player in the market, we can
                                                             strongly fight the duopoly of KPN and
                                                             VodafoneZiggo in both mobile and fixed.

                                                          ¡¡ By merging our networks and customer bases,
                                                             we can achieve the size and scale required to
                                                             accelerate competition. We want to end annual price
                                                             increases from the two dominant players that take
                                                             more than 80% of the telecom revenue market.

                                                          ¡¡ We will make internet access better and faster for
                                                             more people in the Netherlands. We will drive
                                                             innovation through healthy competition. Together,
         T-Mobile                          Tele2             we will bring unlimited possibilities to our Dutch
        Netherlands                     Netherlands
                                                             customers and entrepreneurs for mobile services,
                                                             fixed internet and television.

                                                          ¡¡ Healthy competition equals honest competition and
                                                             that’s what we will bring to the Dutch telecom
                                                             market. By joining forces, T-Mobile and Tele2 will
                                                             create more freedom of choice. And unlimited
                                                             access to the opportunities of now. For everyone.

                        New T-Mobile

New T-Mobile accelerates competition in the Netherlands                                                           3
NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
¡¡ We will deliver on five promises to Dutch consumers once the merger is approved.
   With these promises we show the tangible benefits and opportunities that this merger
   brings to the Netherlands.

               We will be the first to launch nationwide 5G

               We will commit to rolling out fiber and not to increase prices beyond
               inflation for fixed internet access

               We will continue to offer Tele2's Unlimited Data for maximum €25,
               for at least 3 years

               We will offer customers contract freedom

               We will make 100 Mbit/s broadband speeds available nationwide to all
               bridging the digital divide in the Netherlands

4                                                                    New T-Mobile accelerates competition in the Netherlands
NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
PROMISE #1

NEW T-MOBILE WILL BE THE FIRST TO
LAUNCH NATIONWIDE 5G

                                                                            ¡¡ The merger between T-Mobile and Tele2
                                                                               (“New T-Mobile”) will help drive the high quality
                                                                               connectivity that the Dutch government strives for¹.
                                                                               With this promise we ensure that the Netherlands
                                                                               retains its position as a digital
                                                                               front-runner.

                                                                            ¡¡ By combining the infrastructure of both companies,
                                                                               we can bring our customers a nationwide,
                                                                               world-class 5G Network by 2020². New T-Mobile will
                                                                               be the first to bring 5G to the Netherlands, and will
                                                                               do so at least two years sooner than what T-Mobile
                                                                               could achieve on its own.

                                                                            ¡¡ Mobile remains our first love. We already have the
                                                                               best tested and fastest network in the Netherlands
                                                                               and we plan to keep it that way.

5G is superior to existing cellular network technologies....
                                                                            ¡¡ In order to drive further innovation of the Internet of
  Unprecedented
  Connections                 100x                   5G will handle
                                                     100x more devices         Things, we will offer access to Narrow Band Internet
                                                                               of Things (NB IoT) for free until at least 2025. This

                              100x                                             will allow Dutch businesses to speed up with the
                                                     5G will reach peak
  Unmatched                                          theoretical speeds
  Speed                                              of 10 Gbps                roll-out of NB IoT services.

                               10x
                                                     Projected reductions
  Extraordinary                                      in latency (from       ¡¡ It will create huge benefits for customers and
  Response Time                                      10-20 ms today LTE)
                                                                               businesses (large and small), we also advance the
                                                                               Digital Agenda. And we create the infrastructure for
                                                                               new technology and future innovations.

                                                                            1
                                                                                Nr. 547 Letter of Secretary of Economic Affairs Business and Climate, 2 July 2018.
                                                                            2
                                                                                90% in 2020 and 100% end of 2023.

New T-Mobile accelerates competition in the Netherlands                                                                                                              5
NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
...Offering limitless potential to new innovations           ¡¡ How does 5G accelerate innovation in
                                                                                     the Netherlands?:
                           Smart logistics
                           Monitoring supply chains in realtime.                        – "Enhanced Mobile Broadband"
                                                                                     		 With 5G we make fast mobile internet
                           Smart Retail                                              		 available everywhere;
                           Generating customer insights based on
                           behavioural data.                                            – “Massive Machine Type Communication”
                                                                                     		 Many IoT applications enable millions of
                           Equipment Monitoring                                      		 devices to “talk” to each other;
                           Optimal maintenance of machines.
                                                                                        – “Ultra Reliable and Low Latency
                           Smart City                                                		Communications”
                           Intelligent management of lighting and waste              		 Secure applications of virtual and augmented
                           containers.
                                                                                     		 reality, self-driving cars and remote healthcare
                           Smart Parking                                             		 applications become a reality.
                           Navigates drivers to the next vacant parking spot.

                           Smart Healthcare
                           Remote patient monitoring tracking of                  How will New T-Mobile fulfill this promise?
                           assets constrains.

                                AND MANY MORE...                                  ¡¡ Combining Tele2's and T-Mobile's networks will
                                                                                     ensure sizeable savings. This will be used to fund
                                                                                     investments which would be impossible without the
5G Roll-out plan                                                                     merger. Together with our partners, we will develop
                                                                                     new and highly innovative equipment that will
                  2019         2020        2021            2022        2023          support 5G as soon as it becomes available. Thus,
                                                                                     New T-Mobile can activate 5G after completion of
                                                                                     the auction, with the flick of a switch.
T-Mobile only

                                                  Equipment upgrade
                       5G Spectrum
                         auction
                                                        Nationwide launch
                                                                                  ¡¡ Without the merger, we will not roll out 5G
                                                                                     equipment until after the frequency auction
                                                                                     (expected in Q1 2020). Therefore, the merger gives
                                  5G Spectrum auction
                                                                                     us the chance to provide the benefits of 5G to Dutch
New T-Mobile

                        Accelerated                                                  consumers at least two years earlier.
                     equipment upgrade

                       Nationwide launch                                          ¡¡ New T-Mobile will also offer advanced 5G service
                                                                                     for businesses. Both small shops around the corner
                                                                                     as well as large multinationals will benefit from
                                                                                     these services. Tele2’s experience in delivering fixed
Cumulative # of sites upgraded in %                                                  services to business customers also provides an
                                                                                     opportunity for New T-Mobile to become a
                                                 100%         100%    100% 100%
                                                           88%                       competitive and important player in the 5G market.
                                  75%

                     50%                   50%
                                                                                  ¡¡ As a result of the merger, business customers will
                                                                                     finally have more choice. They will have unlimited
                0%           0%                                                      access to new products and services such as 5G
                                                                                     and NB IoT.
                      T-Mobile only                              New T-Mobile

                ˜2 years acceleration
                Frontloading ˜€ 150m investments to integrate Tele2 spectrum

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NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
PROMISE #2

WE COMMIT TO ROLLING OUT FIBER AND NOT
TO INCREASE PRICES BEYOND INFLATION
FOR FIXED INTERNET ACCESS
                                                          ¡¡ Due to the lack of competition in the Dutch telecom
                                                             market, prices for fixed internet increase every year.

                                                          ¡¡ Our promise to roll out fiber creates more freedom
                                                             of choice for consumers. It ensures high-quality
                                                             internet connectivity and stimulates competition.
                                                             Together with our partners, we will roll out fiber
                                                             and ensure access to super-fast fiber optic speeds
                                                             to at least 2 million homes and businesses.

                                                          ¡¡ We promise not to increase fixed internet prices
                                                             above inflation for at least three years after the
                                                             merger. This will protect Dutch consumers from the
                                                             significant annual price increases of KPN and
                                                             VodafoneZiggo.

                                                          ¡¡ We will pass on future reductions in wholesale
                                                             access costs imposed by the regulator to the
                                                             customers.

                                                          How will New T-Mobile fulfill this promise?
Fixed Business Case Customer payback years
                                                          ¡¡ The government's Digital Action Plan acknowledges
                                                             that telecom providers must invest significantly in
            Loss-making on a standalone basis                order to meet the increasing need for digital
                                                             connectivity. The capacity of fixed networks will be
                                                             increased due to growing fiber deployment, among
                                                             other things³. This promise delivers on
                                             -69%            this ambition.

                                                          ¡¡ We will invest in fiber as a result of the scale
                                                             benefits created by the merger. This leads to an
                                                             afficient and a truly competitive market⁴.

            T-Mobile only                New T-Mobile

                                                          3
                                                              Digital Connectivity Action Plan Ministry of Economic Affairs and Climate.
                                                          4
                                                              Letter from the State Secretary of Economic Affairs and Climate, July 2th 2018.

New T-Mobile accelerates competition in the Netherlands                                                                                         7
NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
PROMISE #3

WE CONTINUE TO OFFER TELE2'S UNLIMITED DATA
FOR MAXIMUM €25, FOR 3 YEARS

                                                             ¡¡ We know Dutch consumers love unlimited data.
                                                                Also, faster internet speed is becoming
                                                                increasingly important.

                                                             ¡¡ For at least 3 years after the merger, we will
                                                                continue to offer the Tele2 unlimited mobile data
                                                                plan for a maximum of €25 per month.

                                                             ¡¡ New T-Mobile will continue to provide affordable
                                                                unlimited data for everyone.

                                                             How will New T-Mobile fulfill this promise?

Denser network # of mobile sites
                                                             ¡¡ After the merger, we will have the most dense
                                              Illustrative
                                                                well-structured network in the Netherlands. As the
                                                                network scale increases, the cost of delivering each
                                                                gigabyte will be lower.

                                                             ¡¡ There will be a noticeable increase in the quality of
                                                                our network, particularly in rural areas and indoors,
                                                                with the combined power of the T-Mobile's and
                                                                Tele2's networks.

    Tele2      T-Mobile        New      KPN     Vodafone     ¡¡ More and more customers will be able to enjoy the
                             T-Mobile             Ziggo
                                                                best-tested mobile network for competitive prices,
                                                                giving them more to choose from than just KPN and
                                                                VodafoneZiggo. Competition is on!

                          Low Prices, Best Value                                    Unlimited Data Revolution
                          Maintained network                                        Created the Data Revolution
                          leadership with unlimited                                 unleashing mobile experiences
                          data at lower prices.                                     for customers.

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NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
PROMISE #4

WE OFFER CUSTOMERS CONTRACT FREEDOM

                                                          ¡¡ More and more Dutch consumers are being locked
                                                             into intransparant fixed and mobile contracts
                                                             designed to make it difficult to switch, as discounts
                                                             disappear once one of the contract is terminated.
                                                             Escaping this golden cage is difficult, since
                                                             consumers do not have contract freedom.

                                                          ¡¡ We will offer more freedom to customers by offering
                                                             the flexibility to change their fixed or mobile
                                                             subscription on a monthly basis.

                                                          How will New T-Mobile fulfill this promise?

                                                          ¡¡ Contract freedom means customers can easily
                                                             switch if they are not satisfied with a product,
                                                             price or service. This forces us to keep delivering
                                                             high quality of service at a competitive price.
                                                             We accept the challenge.

                                                          ¡¡ The scale benefits we get from the merger enables
                                                             us to take on a strong market approach and promise
                                                             contractual freedom.

                          Contact freedom
                          Offer consumers at least
                          one "no lock-in option"
                          on fixed and mobile.

New T-Mobile accelerates competition in the Netherlands                                                              9
NEW T-MOBILE ACCELERATING COMPETITION IN THE NETHERLANDS
PROMISE #5

WE WILL MAKE 100 MBIT⁄S BROADBAND SPEEDS
AVAILABLE TO ALL BRIDGING THE DIGITAL DIVIDE
IN THE NETHERLANDS
                          ¡¡ We will help to bridge the digital divide by offering
                             faster broadband across the country. It’s hard to
                             believe that there are still many Dutch homes and
                             companies with very low speed internet or no
                             internet connection at all.

                          ¡¡ For these consumers and businesses, a mobile
                             alternative is the quickest and most efficient way to
                             gain access to fast broadband. Among other things,
                             we will deliver this solution.

                          ¡¡ By making use of both mobile and fixed
                             technologies, we will make 100 Mbit/s broadband
                             speeds available from 2020 onwards for all
                             consumers and companies.

                          ¡¡ Faster Internet access throughout the country is an
                             important goal in realising the ambitions set in
                             The Digital Agenda. The government acknowledges
                             the challenge to ensure that in 2023, everyone will
                             have access to a 100 Mbit/s connection⁵. We can
                             help move the Netherlands forward, faster.

                          How will New T-Mobile fulfill this promise?

                          ¡¡ By expanding the T-Mobile network with Tele2 sites
                             and combining these networks, we can offer mobile
                             solutions for consumers who live or work in rural
                             areas. This will resolve these so called white spots.

                          ¡¡ We will also further invest in our mobile network
                             which will give more homes and businesses in rural
                             areas better connectivity.

                          5
                              Nr. 547 Letter of Secretary of Economic Affairs Business and Climate, 2 July 2018.

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