Smartone Telecommunications Holdings Limited · HKEX:315

Smartone Telecommunications — Investor Presentation (February 2009)

10 slides from Smartone Telecommunications's investor presentation, Feb 5, 2009

  1. Slide 1: SmarTone-Vodafone

    SmarTone-Vodafone 5 February 2009

  2. Slide 2: 4G LTE Development in Global Market

    4G LTE Development in Global Market  Overseas markets with 2500/2600 MHz spectrum  Norway – three operators  Sweden – four operators  A few operators will rollout 4G LTE on other frequency bands  700 MHz band – Verizon and AT&T (U.S.) by end 2009/early 2010  2100 MHz band – DoCoMo (Japan) by 2

  3. Slide 3: 4G LTE Development in Global Market

    4G LTE Development in Global Market  4G LTE standard is frequency neutral – can be implemented on 700, 900, 1800, 2100 and 2500/2600 MHz bands  Technology risk on LTE1800 is minimal  Network vendors will support 4G LTE on 1800MHz  Chipsets for 4G LTE terminals will support multiple frequency ban

  4. Slide 4: Our Valuation of 2500/2600MHz Spectrum

    Our Valuation of 2500/2600MHz Spectrum  To implement 4G LTE on 1800MHz, additional costs need to be incurred to build more cell sites to compensate for less spectrum in 1800MHz ($160m)  To implement 4G LTE on the new spectrum, there is saving from return of excess spectrum to government ($140m) 

  5. Slide 5: Our Valuation of 2500/2600MHz Spectrum

    Our Valuation of 2500/2600MHz Spectrum  Spectrum value could be stretched up to $400m under:  A lower WACC, or  A very aggressive network implementation plan  We pushed the bid price to $500m We will implement 4G LTE on 1800MHz 5

  6. Slide 6: Additional Advantages of 1800MHz

    Additional Advantages of 4G LTE on 1800MHz  Better in-building coverage because of  Lower frequency => superior in-building coverage, especially in the HK cityscape  Higher cell site density in our 4G LTE on 1800MHz implementation  For those who implement 4G LTE on 2500/2600MHz, 30% more base st

  7. Slide 7: Additional Advantages of 1800MHz

    Additional Advantages of 4G LTE on 1800MHz  Rollout pace will not be bounded by BWA spectrum conditions  Savings in  Spectrum fee – over $500m  Performance bond – $150m 7

  8. Slide 8: Speed & Capacity --- sides of the same coin

    Speed & Capacity --- 2 sides of the same coin  Currently very few broadband / Internet applications require speed beyond, say 5-8Mbps  Customers’ broadband experience of speed depends on many factors, e.g. IPLC traffic / congestion and Internet servers’ capacity  Higher network capacity is enable

  9. Slide 9: Our Network Evolution Plan

    Our Network Evolution Plan Download Speed Radio Technology Enabler 14.4Mbps HSPA 28Mbps HSPA+ 42Mbps MIMO 80Mbps Multiple 4G LTE 120Mbps 1800MHz Carriers 160Mbps 9

  10. Slide 10: Migration to 4G LTE

    Migration to 4G LTE  We are already planning for 4G LTE implementation  Our network is All-IP ready and providing unlimited backhaul capacity to cater for future demand of 4G LTE  Our core network is also 4G LTE ready  We are working with technology partners to formulate an action plan to upgrad

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