The emerging landscapeDavid Buckingham, CEO

7 October 20141

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ISPs in the olden days!

The emerging landscape

Simplicity

It just works

Great service

Value

Choice

Advice

End of email?

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Source: Business Intelligence

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My home

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Content

Broadband

The Connected Home

Mobility outside the home

The growth opportunity

5The emerging landscape

Source: Business Intelligence

Push and pull

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Technology Push Consumer Pull

Storage costs down 140x over 12 years

Everyday objects going wireless

Sensors smaller and cheaper

Analytics faster and cheaper

IPV6

Screens grow in size & number

Content getting richer

Our customers are looking to:

Interact with each other

Be entertained

Protect their homes

Want convenience

Improve or maintain health

Time and money efficiency

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How are telcos adapting?

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Other ideas?

Mobility

Wi-Fi

Entertainment

Smart Home

M2M

Prot

ect

Inve

st

Access

Operator investments

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OTT Paid Subscription Services

OTT TV Services

OTT Platform Devices

The crowded world of content

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Subscription STB Services

iiNet GroupOptusHarvey NormanM2

2.6M Units 760K Units 130K Units

Competitive pressure

Connected TV

Mobility trends

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Time it took to reach 50 million users

Radio: 38 years

Television: 13 years

Internet: 4 years

Facebook: 3.5 yearsInstagram: 6 months

Angry Birds: 35 days

Worldwide, mobile app users stood at 1,186 million at the beginning of 2013.

Expected to reach 4.4 Billion by the end of 2017.

Smartphone customers spend

an average of

115 minutes per week using social networking apps on

their devices.

Since mobile devices are bandwidth hogs,

71% of all wireless traffic

is via Wi-Fi.

FY10 FY11 FY12 FY13

-1.3% -1.7%-5.2% -6.9%

Market ARPU growth

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1010

v

v

v

Our Connected Future

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Connected

personalised

simplicitydifferent unique

interesting

delighting

exciting

innovativeexclusive

special

surprising

listening

trusted

belonging

friends

familycolleagues

communities

sharingintegrity

my stuff

my world

valued designed for me

freedom

caring

approachable

choicedependable

rewarding

control

straightforward

convenience

intuitive

confidence

no catches

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Customer needs have expanded

mobileEasy accesssafepredictive

socialresponsive

speed

multiple channels

Source: iiNet

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Keeping focus

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Our unique capability

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Shopfronts but no buyers

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• The proliferation of platforms, services and devices contributes to customer confusion

• Customers want to access content, web and apps with a single user interface

• ISPs can offer customers one access point:- Single billing- Quota free- Multiple platform integration- Combining the best of global content

• Connected home delivered using a trusted partner.

“the world's just getting too connected to make the pipes dumb!”

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QA&The emerging landscape