Sept. 2008 UK01 v5 1

Trials of a new entrant mobile operator

Magnus Kelly

Mapesbury Communications Ltd

Mundio Mobile Ltd

Background

• Commenced trading October 2002

• Privately funded

• Founders met at AT&T over 20 years ago and have collaborated in several organisations

• Driven by desire to focus on wireless technology in a fast growing market

• New World Facing… IP centric

– Change from circuit switch to packet switch

– Spectrum liberalisation - Finite national resource, historically controlled by government

– Non-interfering high speed wireless technologies

– Open source providing tremendous application innovation

– “Net Heads” still innovating faster then “Bell Heads”

• Disruption provides opportunity to potentially offer lower cost, instant access to information and communications

• Built and managed network of 400+ WiFi ‘Hotspots’ – profitably

• Built and manage network of 300+ GSM Hotspots

3

History of Unlocking hidden value

• 2002 Ofcom liberalise 2.4Ghz

• FTV into liquidation

• Texaco -largest # FTV sites

• Texaco understood Wireless concept to

attract custom

• Signed condition precedent contract

with Texaco (10 year exclusive wireless

rights)

• Acquired FTV assets

• Contract with T-Mobile for MCom

managed WiFi service that branded sites

as T-Mobile

• Profitable site build & rental

IP District (learning the value of spectrum)

4

• 2004 – Ofcom liberalise 5.8Ghz

• 2 – 10Mbps connectivity - Base IP services (WWW, Email)

• Voice over IP (Including Geographic Telephone numbers)

• ISP services (IP address, DNS, Web Hosting, Domain names…)

• Standard PABX features (Conf call, IVR, ACD) Voicemail by email

• Virus/Spam filtering

• Resilience & redundancy package

– Services Tiered and bandwidth reserved

– Multiple contention rates supported

• Despite commercial success – no investment to scale

MCom participate and acquire use of 6.6Mhz UK mobile technology neutral

spectrum at reasonable cost

Paired 3.3Mhz, 200milliwatt EIRP, 16 AFRCN Channels, 10M height limit

Allows:

All IP GSM network

IP economics and transmission options (e.g. xDSL, 5.8Ghz, WiMAX)

Proven Voice technology - Not Bluetooth, WiFi, or UMA, - GSM

65 million potential users (UK resident plus inbound roamers)

Private/Public SMS&GPRS application connectivity

Licensed spectrum, not unlicensed, critical difference for QoS

Spectrum provides MNC, Number Block, SS7, Mobile number Porting

Future potential for other OFDMA technology at 1.8Ghz

2006 Ofcom auction GSM

Development of MCom GSM coverage zones within UK

Leverage the dominant worldwide mobile standard: GSM

Overlaid on selected localised community clusters/geography

IP economics and transmission options (e.g. xDSL, 5.8Ghz,)

Interconnect MCom GSM coverage zones with remote indigenous GSM network/s

relative to community

GSM services for UK located subscribers needing to communicate with friends and

family overseas

Value for money, Pay As You Go service based on MCom SIM card

Inbound and outbound voice plus text plus messaging

Value added services: Money Transfer Service

MCom ONE – Overseas Network Extension (Native Coverage)

Nationally circa 7 million migrants in the UK

� UK01 will leverage on the fact that

ethnic groups are settled and stay in well

defined areas of the country and cities

� Clearly defined deployment on areas

with high concentration of ethnic groups

� Location of Migrants within UK

Mapping geographic dispersal shows a

high degree of “clustering” in specific

locations - City Centre / Urban districts

� First two cities to focus our attention are

London and Birmingham

Geographical location of ethnic groups

MCom ONE - London: Cosmopolitan Capital of World

Nearly 50% of migrants in London

Fifty non-indigenous communities

identifiable with population of

10,000 or more

30% of London pop 1st, 2nd, or 3rd

generation migrants from India,

Pakistan, Bangladesh, Caribbean,

Kenya

Example very targeted coverage

Example Target Area

Base Station Location Options

• Multiple site options

– Prime requirement is power

– Use ip for backhaul, with backhaul by xDSL or wireless

• Acquired “Code Powers” to be able to legitimately install within target areas

– Lamp post retrofit ideal

– Existing Telco structures potential

• Develop multiple BTS housing variants :

– Weather proof box (wall/chimney ) – deminimis

– Stand alone Pole mounted Pod

– Retro fitted Pole mount (Lamp Post)

– Loft mounted version

– UK01 GSM Payphone version

• Acquire Frame agreements

– Mutual council collaboration where possible (Private/Public use of mobile services/IP)

– Incremental cost of adding Wi-Fi negligible

– First public agreement – Spectrum Pay Phones – July 2008

Spectrum Payphones

Originally Mercury Payphones

1874 within England and Scotland

Within Greater London 1091 sites

Primarily in urban centres, have

suitable loft space, power and

backhaul. Make good anchor sites

to plan out from.

Coverage Options

Area covered by existing 9 payphones, 50 pole mounts and 6 UK01 phone kiosks.

Coverage in perspective

• Circa 250 BTS’s

Acquire Sites (Quickly)

What's in it for the resident

Cell planning?

Harness Web based tools for live view

http://admin.uk01.com

Typical Site

•BTS housed within

weatherproof box.

•5.8Ghz radio for mesh

•Directional 5.8Ghz

antenna’s

•Pole mount to 10M

Indoor kit install

•Router housed within

weatherproof box.

•Cat 5 cabling to BTS

•Modem for back door

Issues prior to launch

• 999 service – complex and found that most in

BT who knew setup and test had moved on

• MNP conclusion – right at the end had to fight

for bilateral SMS with one mno – now have

porting with the five UK major mno’s

• Ofcom dispute with T-Mobile on termination

rates – had to be sure 20% of population

could call UK01 subs – users not understand

issue.

Launch – March 13th 2009

Post Launch

• Sim sales and Top Up

– Word of mouth

– Calling card style street stalls

– Epay, Paypoint, PayZone….

• Lobby local MP to support next MNO hurdle

– Now minister for Digital Britain

• Constant monitoring - move’s add’s and

changes

• Further radio optimisation

Questions ?

Magnus Kelly

07711 590311