3Q.2011 Austria Mobile Operator ForecastAustria will have 14 million mobile subscriber connections in 2015 with Orange taking 41% market share

October 2011

2

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

INDUSTRY AVERAGE SUBSCRIBER GROWTH IN AUSTRIA’S WIRELESS MARKET IS AT 6%-7%

The operator-wide average subscriber growth (YoY) was 6.2% in 2Q.2011, down from 8.5% in 2Q.2010.

The largest operator, mobilkom, saw its subscriber growth (YoY) decline from 7.3% in 2Q.2010 to 4.2% in 2Q.2011.

T-Mobile's subscriber growth decreased from 7.4% in 2Q.2010 to 6.2% in 2Q.2011.

Hutchison’s subscriber growth declined from 25.9% in 2Q.2010 to 9.7% in 2Q.2011.

-10%

0%

10%

20%

30%

40%

50%

60%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

mobilkom T-Mobile Orange Hutchison Industry Total

Chart 1: Subscriber Growth (4Q08 – 2Q11), %

Subscriber growth is declining in Austria+6.2% industry average subscriber growth in 2Q.2011

3

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

INDUSTRY AVERAGE ARPU IN AUSTRIA’S MOBILE MARKET CONTINUES TO INCREASE

The industry average monthly ARPU was US$ 29.04 in 2Q.2011, down -7.5% YoY.

The largest two wireless carriers in Austria continue to lower their ARPUs.

ARPU growth rate (YoY) at mobilkomwas -9.3% in 2Q.2011 (up from -11.4% in 2Q.2010). T-Mobile’s monthly ARPU declined by -9.5% (YoY) to reach US$ 27.35 in 2Q.2011.

ARPU growth (YoY) at Hutchison decreased to -3.8% in 2Q.2011 (down from 23.2% in 2Q.2010).

Chart 2: ARPU Growth (4Q08 – 2Q11), %

ARPU growth in Austria remains negative-7.5% industry average ARPU growth in 2Q.2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

mobilkom T-Mobile Orange Hutchison Industry Total

4

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

The operator-wide average Minute of Use (MOU) per subscriber was 184 minutes per month in 2Q.2011, down -2.6% YoY.

MOU/Sub growth at mobilkom was -3.1% in 2Q.2011, down from -2.4% in 2Q.2010.

MOU per subscriber at mobilkom and T-Mobile was 155 minutes and 224 minutes respectively in 2Q.2011.

Chart 3: MOU/Sub Growth (4Q08 – 2Q11), %

Minutes of Use per Subscriber is decreasingIndustry average MOU/Sub is 184 minutes per month

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

mobilkom T-Mobile Industry Total

5

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

-4.3% INDUSTRY AVERAGE EBITDA GROWTH IN 2Q.2011

• The industry average EBITDA growth rate (YoY) in 2Q.2011 was -4.3%, up from -7.6% in 2Q.2010.

• EBITDA growth rate (YoY) at mobilkom was -11.1% in 2Q.2011 (down from 6.1% in 2Q.2010) and it was -4.5% at Orange Austria (down from -4.3% in 2Q.2010).

• On the other hand, T-Mobile's EBITDA growth jumped from -12.9% in 2Q.2010 to 11.5% in 2Q.2011.

Chart 4: EBITDA Growth (4Q08 – 2Q11), %

Negative EBITDA growth at mobilkom and Orange in 2Q.2011

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

mobilkom T-Mobile Orange Industry Total

6

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

We forecast that the number of total wireless subscriber connections in Austria will increase from 12.2 million in the end of 2010 to 14.1 million in the end of 2015.

Given the latest quarter numbers, our model predicts that mobilkom will have approximately 5.7 million mobile subscriber connections in 2015. In our view, mobilkom will continue to hold a dominant position in the Austria market with a 40.9% market share in 2015.

Our model forecasts that T-Mobile will have 4.1 million wireless subscriber connections in 2015 (29.3% market share).

We expect that Hutchison will have 1.3 million mobile subscriber connections in 2015 (9.3% market share).

Chart 5: Subscribers by operator (CY09 – CY15F)

So what is IEMR’s Forecast? Total mobile subscriber connections in Austria to reach 14.1 million in 2015

0

1,000

2,000

3,000

4,000

5,000

6,000

CY09 CY10 CY11F CY12F CY13F CY14F CY15F

subs

crib

ers

(000

s)

mobilkom T-Mobile Orange Hutchison

7

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

WE EXPECT THE OPERATOR-WIDE AVERAGE ARPU LEVEL TO REMAIN AT EUR 19 – EUR 20 OVER THE NEXT TWO YEARS

Our forecasting model does not predict major changes in the industry average ARPU for the next two years.

The industry average ARPU will be approximately EUR 19.60 per month in 2013, according to our model.

We expect that Hutchison’s ARPU level will be higher than those of mobilkom, T-Mobile, and Orange over the next two years.

Chart 6: Average Revenue per User (ARPU) per month (CY09 – CY13F), EUR

So what is IEMR’s Forecast?The industry-average ARPU level in Austria to decrease slightly

0

5

10

15

20

25

CY09 CY10 CY11F CY12F CY13F

mobilkom T-Mobile Orange Hutchison Average

8

© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

mobilkom will be enjoying the highest level of profitability in Austria’s wireless market during the forecast period.

Our model is predicting that mobilkom’s EBITDA margins (calculated as EBITDA/service revenue) will remain stable at about 37% from 2012 to 2013.

We forecast that T-Mobile’s EBITDA margin will be about 30.6% in 2013.

Orange’s EBITDA margin will remain lower than those of its competitors at about 27% in 2013.

Chart 7: EBITDA margins (CY09 – CY13F), %

So what is IEMR’s Forecast? mobilkom to enjoy the highest profitability

0%

10%

20%

30%

40%

50%

CY09 CY10 CY11F CY12F Cy13F

mobilkom T-Mobile Orange Average

9

© 2011 IE Market Research Corp.All rights reserved.

IE Market ResearchWhat do we do?

We Drive Enterprise Strategy in the telecoms domain by:

Producing the BEST and most COMPREHENSIVE strategy coverage of the vendor and operator space in the world

With over 800+ operators and 50+ vendors, we cover the strategies of more telecom operators, vendors, and markets than ALL of our competitors

10

About IEMR

Blue Chip client base of over 100 customers across core telco value chain . . .Operators OEMs / ODMs Network Infrastructure

Vendors

© 2011 IE Market Research Corp.All rights reserved.

11

About IEMR

And over 200 consulting and financial services institutions are IEMR customers

© 2011 IE Market Research Corp.All rights reserved.

12

© 2011 IE Market Research Corp.All rights reserved.

Thank you for reading our report. If you liked what you read, please let people know about this site by linking to us from your own website. Just

copy the html code below and paste it either into a sidebar widget or a post on your own site. It would be much appreciated!

Here is the code to copy/paste: <a href="https://www.iemarketresearch.com/Members/Reports/3Q11-Austria-

Mobile-Operator-Forecast-2011--2015-Austria-to-have-14-million-mobile-subscriber-connections-in-2015-with-Mobilkom-Austria-taking-41-market-share-

RID2725-1.aspx">Austria Mobile Operator Forecast</a>

© 2011 IE Market Research Corp.All rights reserved.

13

© 2011 IE Market Research Corp.All rights reserved.

If you would like to purchase the full report together with the detailed Excel sheets and forecasts, please click here and sign

up as a member client. You can also call us at +1 604 327 4367 or email us at

info@iemarketresearch.com

© 2011 IE Market Research Corp.All rights reserved.

14

© 2011 IE Market Research Corp.All rights reserved.

The opinions expressed in this report are the true opinions of the analyst(s) and IE Market Research Corp. (IEMR) about the firm(s) and/or industry appearing in this report. Any “forward looking statements” are the best estimates and opinions of the analyst(s) and IEMR based upon information that is publicly available and that the analyst(s) and IEMR believes to be correct. There is no guarantee that forecasts appearing in this report will materialize.

The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total revenues of IEMR, a portion of which are or have been generated by consulting and contract research activities undertaken by IEMR for firm(s) appearing in this report. The analyst(s) and/or IEMR does not own any shares of the firm(s) appearing in this report, does not make or offer for sale shares of the firm(s) appearing in this report, and does not have any investment banking business with firm(s) appearing in this report. IEMR may have been contracted by firm(s) appearing in this report to undertake competitive intelligence, business strategy, market research, branding research, and/or public opinion research activities. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report.

Forward Looking StatementsThis report contains forward looking statements. Forward looking statements regarding firm(s) inherently involve risks and uncertainties that could cause actual results to differ from such forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, continued acceptance of the firm(s)’ products/services in the marketplace; acceptance in the marketplace of the firm(s)’ new products/services; competitive factors; new products/services introductions by others; technological changes; dependence on suppliers; mergers and acquisitions; systematic risks and other risks discussed in the firm(s)’ periodic report filings, including interim reports, annual reports, and annual information forms filed with the appropriate securities regulators. By making these forward looking statements, the analyst(s) and IEMR undertake no obligation to update these statements for revisions or changes after the date of this report.

WarrantiesThe information contained in this report has been compiled by IEMR from sources believed to be reliable, but no representation or warranty, express or implied, is made by IEMR or any other person as to its accuracy, completeness or correctness. IEMR does not make any warranties, expressed or implied, as to results to be obtained from using this information and makes no express or implied warranties or fitness for a particular use. Clients using this report assume full responsibility for whatever results they obtain from whatever use the information was put to. To the full extent permitted by law neither IEMR nor any other person accept any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein.

IE Market ResearchDisclaimers and Disclosures

15

© 2011 IE Market Research Corp.All rights reserved.

Dissemination of ResearchIEMR endeavours to make all reasonable efforts to provide research simultaneously to all eligible clients. However, IEMR’s premium clients may have access to IEMR research prior to research being disseminated more widely. IEMR’s research is posted to our proprietary website to ensure eligible clients receive intelligence in a timely manner. Additional distribution may be done by IEMR’s sales personnel via email, fax or regular mail. Clients may also receive our research via third party vendors. Please contact our research department at 1-888-322-IEMR for more information regarding our research.

Licensing AgreementAny survey data, forecasting data, and research reports and the information contained therein are the intellectual property of IEMR, and permission to use the same is granted on a single-user or multi-user basis to all Clients. IE Market Research Corp. will not distribute in any way, shape, or form results of contract research that would, in any way, harm the competitive position of its Client.

IE Market Research Corp. will be entitled to the copyright in all reports and other documents or electronic media produced by it in connection with work undertaken independently of any Client contract. In performing services, IE Market Research Corp. may use without limitation any of its property including hardware, software, IE Market Research Corp.’s proprietary products and confidential information and trade secrets of IE Market Research Corp. Such property will remain the property of IE Market Research Corp. and the Client shall acquire no right or interest in it.

IEMR’s licensing agreement is perhaps the most liberal in the industry. Two licensing options are available for our Clients:• Single-user License: Allows Clients to read, print, and distribute printed copies of IEMR survey data, forecasting data, and research reports (and all purchased elements therein) within the Client’s organization, provided that IEMR is cited as the source. Clients are also allowed to use and manipulate this data for their internal corporate purposes, provided that IEMR is cited as the source. A Single-user License does not give the Client the right to electronically distribute IEMR survey data, forecasting data, and research reports to any other individual either within an organization or outside it.• Multi-user License: Allows Clients to read, print, and distribute printed and electronic copies of IEMR survey data, forecasting data, and research reports (and all purchased elements therein) within the Client’s organization, provided that IEMR is cited as the source. Clients are also allowed to use and manipulate this data for their internal corporate purposes, provided that IEMR is cited as the source. A Multi-user License does not give the Client the right to distribute IEMR survey data, forecasting data, and research reports to other individuals outside the Client’s organization.

CONSUMEREADY™ and EXPORTREADY™ are registered trademarks of IEMR. Reproduction of material contained herein, in whole or in part or use for any public purpose is only permitted with the prior approval of IEMR. Courtesy copies of reproduced material are appreciated. Electronic reuse of the data contained herein is strictly prohibited.

IE Market ResearchDisclaimers and Disclosures