3Q.2011 Belgium Mobile Operator ForecastBelgium to have 14.3 million subscriber connections in 2015 with Mobistar taking 31.6% market share

October 2011

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

INDUSTRY AVERAGE SUBSCRIBER GROWTH IN BELGIUM’S WIRELESS MARKET IS ABOUT 3%

The operator-wide average subscriber growth (YoY) was 3.2% in 2Q.2011, down from 3.9% in 2Q.2010.

Proximus saw its subscriber growth (YoY) rise from 0.4% in 2Q.2010 to 1.3% in 2Q.2011.

Mobistar’s subscriber growth (YoY) was 3.9% in 2Q.2011, up from 1.8% in 2Q.2010.

BASE’s subscriber growth declined from 12.0% in 2Q.2010 to 2.6% in 2Q.2011.

-5%

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

Proximus Mobistar N.V./S.A. BASE Industry Total

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

Stable subscriber growth in Belgium’s wireless market+3.2% industry average subscriber growth in 2Q.2011

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

THE AVERAGE ARPU LEVEL IN BELGIUM CONTINUES TO DECREASE

The industry average monthly ARPU was US$ 34.05 in 2Q.2011, down -8.2% YoY.

Proximus, Mobistar and BASE continue to decrease their ARPUs. Proximus’s monthly ARPU decreased by -5.4% (YoY) to reach US$ 38.90 in 2Q.2011.

Mobistar’s ARPU growth was -6.5% in 2Q.2011, down from -2.3% in 2Q.2010.

Chart 2: ARPU Growth (4Q08 – 2Q11), %

ARPU growth in Belgium remains negative-8.2% industry average ARPU growth in 2Q.2011

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

Proximus Mobistar N.V./S.A. BASE Industry Total

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

The operator-wide average Minute of Use (MOU) per subscriber was 147 minutes per month in 2Q.2011, which is the same as in 2Q.2010.

MOU/Sub at BASE continues to be lower than MOU/Sub at Proximus and Mobistar.

MOU per subscriber at BASE, Proximus, and Mobistar was 130 minutes, 166 minutes, and 147 minutes respectively in 2Q.2011.

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

Minutes of Use per Subscriber is decreasingIndustry average MOU/Sub is 147 minutes per month

-35%

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

Proximus Mobistar N.V./S.A. BASE Industry Total

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

-8.7% INDUSTRY-AVERAGE EBITDA GROWTH IN 2Q.2011

• The industry average EBITDA growth rate (YoY) in 2Q.2011 was -8.7%, down from -2.9% in 2Q.2010.

• BASE’s' EBITDA growth (YoY) was particularly low at -21.0% in 2Q.2011, down from 19.1% in 2Q.2010.

• EBITDA growth (YoY) at Proximusimproved from -9.8% in 2Q.2010 to -0.5% in 2Q.2011.

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

Negative EBITDA growth across operators in 2Q.2011

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

Proximus Mobistar N.V./S.A. BASE Industry Total

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

We forecast that the number of total wireless subscriber connections in Belgium will increase from 12.7 million in the end of 2010 to 14.3 million in the end of 2015.

Given the latest quarter numbers, our model predicts that Proximus will have approximately 5.4 million mobile subscribers in 2015.

We expect that Proximus will continue to be the largest wireless carrier in Belgium with a 37.9% market share in 2015.

We forecast that Mobistar will have 4.5 million wireless subscribers in 2015 (31.6% market share).

Chart 5: Subscribers by operator (CY09 – CY15F)

So what is IEMR’s Forecast? Total subscriber connections in Belgium to reach 14.3 million in 2015

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Proximus Mobistar N.V./S.A. BASE Mobistar MVNOs

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

WE EXPECT THE OPERATOR-WIDE AVERAGE ARPU LEVEL TO REMAIN AT ABOUT EUR 24 OVER THE NEXT TWO YEARS

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

The industry average ARPU will be EUR 24.09 per month in 2013, according to our model.

At the operator level, we forecast that Proximus’s ARPU will be declining over the next two years to reach EUR 25.70 in 2013.

We expect that Mobistar’s ARPU level will remain the highest among Belgium’s operators over the forecast period.

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

So what is IEMR’s Forecast?Industry average ARPU level in Belgium to remain stable

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Proximus Mobistar N.V./S.A. BASE Average

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

We forecast that Proximus will be enjoying the highest level of profitability in Belgium’s wireless market during the forecast period.

Our model is predicting that Proximus’s EBITDA margins (calculated as EBITDA/service revenue) will remain at about 50% from 2012 to 2013.

Mobistar’s EBITDA margin will be lower than those of Proximus at about 35.6% in 2013.

We forecast that BASE’s EBITDA margin will be improving over the forecast period.

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

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

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Proximus Mobistar N.V./S.A. BASE Average

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