The Vision for Retail A massive distribution network
Ireland UK 54 stores 769 stores Sweden 82 stores
Germany 160 stores France 270 stores
The Netherlands Portugal 175 stores 84 stores
Belgium 70 stores
Spain Switzerland 408 stores 64 stores Significant and growing handset market share
12000 10.0% 9.0% 10000 8.0%
8000 7.0% 6.0% 6000 5.0% 4.0% 4000
3.0% Market share (%) Connections (000s) 2000 2.0% 1.0% 0 0.0% 2004 2005 2006 2007
Connections Market share Major player in broadband
30% 26%
25% 20% 20% 17%
15% 10%
Market share % 10% 8%
5%
0%
Virgin Media BT TalkTalk/AOL Tiscali Orange The firstmassmarket NGN SNs&Routers MSAN’s BT Exchanges WWW CORE BRAS CORE BRAS WWW CORE BRAS CORE BRAS Opal Telecom Core IP Network Manchester PSTN Birmingham Brentford BT PSTN PSTN BT BT How do we leverage these assets? Our Retail Model: The Customers’ Champion
Network CPW provides Operators the customers with something they need: independent advice!
Equipment Manufacturers Our unique opportunity INFRASTRUCTURE
BT
SKY
CONTENT SERVICE
DSG
DISTRIBUTION Mobility changes everything
Fixed Portable Mobile We are on the cusp of a new wave
WirelessOffice WirelessHome WirelessEntertainment WirelessAuto WirelessMoney Wireless Office Wireless Entertainment Wireless Entertainment Wireless Home Wireless Home
Protection & Managed services Security & installation
Communicate Information & Commerce
Portal
Fixed line
Entertainment Socialise & organise Insurance
Communities Presence
Security/ Fixed line HomeMessaging monitor Support Wireless Money Keys Wallet Phone Keys Wallet Phone Our Retail Model: The Customers’ Champion
Suppliers Distribution Configure / Customer Install The Geek Squad has arrived…
IN CAHOOTS WITH THE CARPHONE WAREHOUSE Customer Proposition
CrisisCrisis or or PeacePeace SetSet Up Up ofof Mind Mind
Phase 1 - March Phase 2/3 - April/May Phase 3 - May Phase 4 - July
HomeHome Visits Visits RemoteRemote Support Support TalkTalk Talk Talk GeekGeek Squad Squad Club Club LondonLondon NationalNational WirelessWireless PeacePeace of of Mind Mind £99.99£99.99 £49.99£49.99 £19.99£19.99 £12.99£12.99 monthly monthly
IN CAHOOTS WITH THE CARPHONE WAREHOUSE Key elements of our strategy
• Emphasis on remote
• B2B significant profit opportunity
• Build the brand from the “Home”
• Local marketing
• Digital home - not just break/fix model
• Partnerships
• Flexible transportation for agents – Vespas!
IN CAHOOTS WITH THE CARPHONE WAREHOUSE Adding value for network operators Best Buy Mobile
• Leading European Independent • Existing US market share • Small box expertise / systems • Big box footfall • Manufacturer relationships • Existing distribution and back office • Training and merchandising • Strong brand
US MARKET • Multiple networks and MVNOs • 225m subscribers • 140m handsets • Poor customer service • No mass market independent SWaS Performance – Total Units Average Total Handsets Sold per Door
400 SWAS transformed beginning on Nov Official Launch Nov 17th 350
300
250
200
150
100
50
0 Oct Oct Oct Oct Nov Nov Nov Nov Dec Dec Dec Dec Dec Jan Jan Jan Jan Feb Wk1 Wk2 Wk3 Wk4 Wk1 Wk2 Wk3 Wk4 Wk1 Wk2 Wk3 Wk4 Wk5 Wk1 Wk2 Wk3 Wk4 Wk1
SWAS LY SWAS TY Roll out plans
• 150 – 200 stores over next 18 months
- weighted to SwaS format
• Standalone stores clustered to leverage marketing impact
• Eastern seaboard (NY, Boston), Texas
• Further commitment beyond 2008, subject to performance