1 2 3 Accelerating broadband (+25,000), fibre (+101,000) and - - PowerPoint PPT Presentation

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Accelerating broadband (+25,000), fibre (+101,000) and mobile (+64,000) net adds More TV net adds than the rest of the market put together (+300,000 net adds) Significant reduction in year-on-year churn to 1.4% Strong growth from TalkTalk Business (H1 Corporate revenues +9.3%) Acquisition of Virgin Media’s substantial National customer base Revenue growth accelerating and on track to deliver >4% full year growth EBITDA margin of 12.6% in H1 (9.0% in H1FY14) Operating FCF up 120% Demand for broadband, fibre and mobile stronger than expected earlier in year Expect incremental £20m-£25m SAC investment to take advantage of stronger volumes in H2 Interim Dividend up 15% to 4.6p

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4.047m 4.043m 4.053m 4.063m 4.071m 4.076m 4.186m 4.196m 4.206m 4.221m Q1 '13 Q2' 13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 80k 230k 390k 557k 732k 917k 1,102k 1,217k Q2' 13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 85k 117k 152k 175k 202k 236k 260k 284k 308k 348k

Q1 '13 Q2' 13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15

15k 30k 52k 73k 95k 142k 177k 207k 241k 308k

Q1 '13 Q2' 13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15

5k 7k 9k 10k 12k 14k 15k 17k 19k 22k Q1 '13Q2' 13Q3 '13Q4 '13Q1 '14Q2 '14Q3 '14Q4 '14Q1 '15Q2 '15

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(19k) (4k) 10k 10k 8k 5k 7k 10k 10k 15k

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

7k 15k 22k 21k 22k 47k 35k 30k 34k 67k 24k 32k 35k 23k 27k 34k 24k 24k 24k 40k 80k 150k 160k 167k 175k 185k 185k 115k

Broadband Fibre Mobile TV

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Fastest broadband growth in 4 years More TV net adds than the rest of the market Larger base from which to upsell Seeing accelerating demand for broadband, mobile and fibre, and sustained growth in TV

1.04 1.12 1.24 1.35 1.46 H1'13 H2'13 H1'14 H2'14 H1'15 Phone and Broadband = 1RGU 1.0% 1.2% 1.4% 1.6% 1.8% 2.0%

Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2'15

7.9m 6.8m 7.1m 6.2m 5.3m 4.7m H2 '12 H1 '13 H2 '13 H1 '14 H2 '14 H1 '15

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7,635 4,858 4,333 3,556 2,799 2,499 H2 '12 H1 '13 H2 '13 H1 '14 H2 '14 H1 '15

Significant year-on-year reduction in call volumes (down 24%) and Ofcom complaints (down 30%) Service improvement programmes through root cause analysis Driving higher rates of fault resolution and online self- service Multiple product take-up A continuing journey that is at the heart of Making TalkTalk Simpler

3.45 4.00

4.60

H1'13 H1'14 H1'15

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+15.0%

9.0%

12.6%

H1 '14 H1 15 Q1'14 Q2'14 Q1'15 Q2'15 1.9% 1.7% 3.1%

3.6%

£174m £153m H1 '14 H1 15

• 12.0%

+44.7% £76m £110m

Revenue, Overheads and Pre-SAC EBITDA Guidance unchanged Revenue growth of at least 4% Overheads as a percentage of revenue < FY13 Pre-SAC EBITDA margins > FY13 Expect a more modest reduction in year on year SAC than envisaged in previous guidance Strong year-on-year growth in EBITDA and EBITDA margin Expect accelerating volumes through H2 to drive additional SAC of £20m-£25m Lower cost per add Net debt Capex - 6% of revenue Cash exceptionals - £30m-£35m Dividend No less than 15% growth

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Trading approach is delivering results in line with our plan Revenue growth accelerating, SAC reducing, EBITDA and OFCF up y-o-y Revenue Growth 3.3%; EBITDA margin 12.6% Dividend up 15% year-on-year, in line with commitment On track to deliver 4% revenue growth and 25% EBITDA margin by FY17

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(1) Excluding exceptional items and amortisation of acquisition intangibles

£ million H1 FY15 H1 FY14 Growth Revenue 871 843 +3% Gross Profit 480 465 +3% Gross Margin 55.1% 55.2% Opex (217) (215) EBITDA pre SAC & Marketing 263 250 +5% EBITDA pre SAC & Marketing Margin 30.2% 29.7% +50 bps SAC & Marketing (108) (116) TV SAC (45) (58) EBITDA(1) 110 76 +45% EBITDA Margin 12.6% 9.0% +136bps Profit Before Tax 34 9 +278% Tax (7) (2) Effective Tax Rate 20% 20% Profit After Tax 27 7 +286% EPS 2.9 0.8 +263%

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£ million H1 FY15 H1 FY14 Growth EBITDA 110 76 45% Working capital (11) (8) Capex (55) (48) Operating free cashflow 44 20 120% OFCF margin 5.1% 2.4% Interest and taxation (13) (8) 63% Free Cashflow 31 12 158% Acquisition & Share purchase (4) (22) Exceptional spend (11) (8) Dividend (74) (62) Net cash flow (58) (80) Opening Net Debt 497 393 Closing Net Debt 555 473 Net debt / EBITDA 2.25x 2.33x

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£437m

Off-net Base ARPU

£434m

Q1 FY15 Q2 FY15

£843m Off-net Upsell & Price Corporate Base Voice £871m

On-net (+5.9%) +3.3% H1 FY14 H1 FY15

3.3% y-o-y growth in H1 › On-net +5.9%

• Base growth
• Price & proposition
• Voice & VAT

› Corporate +9.3%

• Data +55%

› Off-net -33.3%

• Only 5.3% of group revenues

(FY14: 8.2%) Acceleration in Q2 (+3.6%) › On-net +6.5% (base growth and ARPU)

VAT Corporate

+3.6% +3.1%

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On-net revenues to accelerate through H2: › Higher opening base

• 254k (+7.5%) more fully unbundled

customers than at the end of H1 FY14

• 660k (+118%) more TV customers
• 112k (+47%) and 166k (+117%) more

mobile and fibre customers

› Significant further acceleration in growth (broadband, mobile and fibre) › ARPU growth Growth in Corporate through data and traction in SoHo/SME broadband Continued voice decline and VAT impact

Base Off-net Corporate +>4.7% +3.3% H1 FY15 H2 FY15 ARPU H1FY14 H2FY14 H1FY15 H2FY15 Mobile Fibre TV BB

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Growth in pre SAC EBITDA margin through › growth in revenue › gross margin › cost saving initiatives SAC investment in BB, mobile, TV and fibre offset in part by reducing cost per add

H1 FY15

Gross Profit & Other Cost savings CPA and marketing

H1 FY14

Volumes £110m £76m

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Continued Investment in the network has lead to a significant drop in network downtime, one of the key drivers of churn Cost savings through MTTS including › Call volumes (down 24%) › Headcount › Engineers Expect FY overheads < FY13 (23.7%)

£215m £217m

H1 FY14 H1 FY15

Network Volume Cost savings 25.5% 24.9%

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Investment in growth › 25,000 broadband net adds › 300,000 TV net adds › 64,000 mobile net adds › 101,000 fibre net adds CPA reduction › TV CPA down from £170 in H1 FY14 to £125 in H1 FY15 driven by Essentials and self install › BB, mobile and fibre CPA reduced through channel mix › 44% sales online (H1 FY15: 33%)

£174m £153m

Volume CPA

H1 FY14 H1 FY15

Net debt b/f Operating Free Cashflow Exceptionals Acquisition & share repurchase Interest & Tax Dividend Net debt c/f

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Acquisition spend: £3m for the Youview joint venture and £1m for the Yorkco joint venture Dividend payment in line with our commitment and underlines our confidence in future growth prospects Higher interest cost than the prior year due to payment of facility fees for the new debt facility of £5.3m Net debt to EBITDA ratio reduced to 2.25x

£497m £555m £44m £11m £4m £13m £74m

2.33x 2.25x

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£ million H1 FY15 H1 FY14 Cash outflow 11 8 Ethernet Settlement (3) Making TalkTalk Simpler 11 11 P&L charge 9 8 Ethernet Settlement (3) Making TalkTalk Simpler 9 9 Operating Efficiencies 2

H2 Cash exceptionals relating to Making TalkTalk Simpler and our acquisition of the Virgin Media National base are expected to be £19-£24m

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Revenue growth accelerating to >4% for full year Profitability improving as benefits of revenue growth and reductions in

• perating costs and SAC flow through – on track to deliver 25% by FY17

Improvements in OFCF coupled with careful capex management provide confidence in continued Net Debt reduction

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Consumer quad play Business Data products Fibre to the Premise Mobile Making TalkTalk Simpler TV for Everyone Grow Business Market Share Expand capacity and utilisation

4% revenue CAGR and 25% EBITDA by FY17

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96% population coverage – unbundling programme completed We will expand bandwidth by 50x-100x while holding capex to 6% of revenue Acquisition of Virgin Media’s National (DSL) off-net base › 97,700 customers at 30 Sept 2014 › Expect to migrate substantial proportion through calendar 2015 In advanced discussions to dispose of off- net base

£76m

BT TalkTalk Saving Consumer £601 £419 £182 Business £763 £227 £534

Unlimited broadband Saving based on contract length

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Adding more TV customers than rest

• f market put together

TV base gone from 16% to 33% of base Attracting new customers to TalkTalk – c25% of TV customers TV customers churn less than dual-play customers and are beginning to deliver incremental content ARPU › c£10 average ARPU (per customer taking paid content) On track for the vast majority of customers to take TV

80 % 33 %

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64,000 net adds in half taking base to 348,000 9.5% of unbundled base vs 6.9% a year ago Mobile customers continue to show lower churn and higher NPS Launched fully integrated Quad-Play bundles in October, saving customers over £200 vs Virgin Media

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85k 117k 152k 175k 202k 236k 260k 284k 308k 348k Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

£3.75 per month Samsung Galaxy White 300 minutes Unlimited texts 600MB data 29

Market leading Quad play Entry level handset

Plus TV Unlimited broadband Anytime calls Free SIM worth £90 › 100 minutes › 250 texts › 200MB data

Only available to TalkTalk broadband customers

£3.75 per month 300 minutes Unlimited texts 600MB data 12m contract

Entry level SIM

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101,000 net adds in half taking base to 308,000 8.4% of on-net base vs 4.2% a year ago Demand for TV in households with poor broadband speeds › c62% of fibre customers take TV › c14% of TV customers take fibre At the right price, customers see value in proposition Margin squeeze regulation from 2015 will in time, lead to lower wholesale costs and allow us to drive take-up further

15k 30k 52k 73k 95k 142k 177k 207k 241k 308k Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

H1 FY14 H1 FY15 £162m £177m H1 FY14 H1 FY15

Continuing strong growth in Data revenues (+55% y-o-y) drives Corporate growth of 9.3% in H1 Strong growth existing customers and new contract wins Significant opportunity to drive growth in small business broadband

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+9.3% y-o-y +55% y-o-y

32 SIMPLER Products and Processes = BETTER Customer Service and Lower Churn = LOWER SAC & CHEAPER Costs to Serve Tariff Simplification >£15m Systems Upgrade and Transformation >£10m Brilliant Self Service >£10m Leveraging Data >£5m

• In advanced discussions

to sell off-net base

• 65% of live TTB tariffs

eliminated

• SMPF upsell accelerating
• AOL rebrand in H2
• New simplified B2B

systems live

• New fault diagnostic

tool launches H2

• Consumer billing system

upgrade H2

• Consumer ‘Welcome

Centre’ and ‘Service Centre’ launched

• Online sales in TTB live
• H1 call reductions
• TalkTalk app downloaded by

300k customers

• 3rd party systems/ support

decommissioned

• Commercial dashboard

reporting launched

• TTB revenue data

alignment

Total SAC & Marketing costs peaked in H1FY14 Reducing Cost per Add › TV CPA down to £125 from £130 in H2FY14 and £170 in H1FY14 › BB, mobile and fibre CPA reduced by more economical channel mix › Online sales up to 44% from 33% a year ago Reducing total SAC through lower churn › Significant year-on-year reduction to 1.4% in Q2 (Q2 FY14: 1.7%) › On track to continue to reduce churn to benchmark 0.8-1.2%

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90 121 174 144 153 H1'13 H2'13 H1'14 H2'14 H1'15

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+

Base growth & ARPU

+

New products

+

TV

+

Mobile

+

Fibre

+

TalkTalk Business

+

Data in Big

+

Partners

+

Big in Small

• Off-net base
• Voice

FY14- FY17

3.4% FY14

4.0%+

(4.0%) H2’12 (0.1%) H1’13 (1.9%) H2’13 (4.8%) H1’12 3.1% Q1’15 3.6% Q2’15

35 EBITDA £76m

9.0% H1 FY14

EBITDA £110m

12.6% H1 FY15

EBITDA £475m

Implied Revenue of £1.9bn (4% CAGR)

25% FY17 >£120m >£40m >£70m

Incremental Revenue at constant gross margin Making TalkTalk Simpler SAC reduction through lower CPA

c£30m

SAC reduction through lower Churn

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Collector Node

Copper Fibre

3,000 Unbundled Exchanges MSAN & DSLAM 96% population coverage Collector Node to extend reach

• f Core Network

Collector Ring 10Gbps optical circuit or dark fibre supplied by BTW, SSE, GEO, VM and Eirecom Core Optical Network 2 separate national DWDM networks with 8Tbps (Huawei) and 2.2Tbps (Infinera) capacity Exchange Backhaul 1Gbps optical circuit supplied by BTOR

• r VM

Long term leases in a competitive market with no capacity constraints

4.2million points of presence

FTTC

The only provider of wholesale broadband and Fibre other than BT Wholesale

38 1 Gig speeds to homes and businesses Will cost TT c50% of current BTOR wholesale charge for 80Mbps End to End network with no dependence on BTOR Priced to drive rapid take-up Trial in York Potential to scale to 10m premises in long term

Progress to date

JV signed in April Fujitsu announced as build partner Digging in York has begun Proposition due in early 2015

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33% of fully unbundled base taking TV 9% of base taking mobile Launched quad- play package

Phone & Broadband Launched TV & Mobile Launched Integrated Quad-Play Scale Quad-Play Provider

Built scale fixed phone & broadband network and customer base Launched triple- play packages Launched mobile handset and SIM-

• nly tariffs

available only to TalkTalk customers Expect vast majority of customers to take triple-play Scale quad-play Will use TalkTalk 4G spectrum to build small cell network delivering better service at lower cost

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Accelerating growth in broadband, mobile and fibre Fastest growing TV business in the UK On track to deliver at least 4% revenue growth in FY15 and significant step up in profitability Churn and cost per add reduced significantly y-o-y EBITDA up 45% y-o-y Operating FCF up 120% y-o-y On track to deliver 4% CAGR in revenue and 25% EBITDA margin by FY17 In a strong position to benefit from market transition to quad-play through fibre-to-the-premise and mobile Significant long term growth potential beyond FY17 targets

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£ million H1 FY15 H1 FY14 Change Headline earnings 27 7 286% Weighted average shares in issue 955 931 Weighted average shares in employee trust (34) (40) Shares for basic EPS calculation 921 891 Headline EPS - Basic 2.9p 0.8p 263% Dilutive effect of share options 13 46 Shares for diluted EPS 934 937 Headline EPS - Diluted 2.9p 0.7p 314%

Full year weighted average shares in issue is expected to be c[955m]

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£ million Statutory Headline Comments EBITDA 101 110 P&L exceptional £9m Working Capital (13) (11) £2m exceptional provision movement Capex (55) (55) Operating Free Cashflow 33 44 Exceptional spend (11) Share buy back and investments (4) (4) Tax & Interest (13) (13) Dividend (74) (74) Net cash flow (58) (58)

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Multiple (c85) collector node Locations across the UK & N. Ireland Multiple backhaul circuits into the Edge Network Diverse connection into two different edge locations Built to be resilient and economically scalable Peaks at 1.25Tbps of bandwidth utilisation across the UK ADSL2+, Annex M, Fibre broadband, Ethernet, EFM, IPVPN Session Initiation Protocol (“SIP”), Time Division Multiplex (“TDM”), inbound & voice apps The only provider of wholesale broadband and Fibre other than BT Wholesale

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Ultrafast Cabinet Ultrafast POP

Fibre Fibre Fibre Fibre Backhaul

TalkTalk Business TalkTalk Consumer

WiFi + In-premise 4G WiFi + In-home 4G

Seamless, genuinely unlimited, low cost connectivity to our customers’ homes and businesses… …which will drive growth for the foreseeable future

Collector Node

46 Simply Broadband Essentials TV Plus TV BETTER GOOD BEST £3.50* £8.50* £18.50*

Totally unlimited broadband, no caps and no speed loss at peak times Britain's safest connection, with award winning HomeSafe security service Free calls between all TalkTalk customers Totally unlimited broadband, no caps and no speed loss at peak times Unlimited eve & w/e calls to UK landlines including 0870 and 0845 numbers Britain's safest connection with award winning HomeSafe security service Free calls between all TalkTalk customers FREE YouView box worth £149 70+ Freeview channels some in HD 7-day catch up with BBC iPlayer, ITV Player, Demand5 and 4oD Pause for up to 30 minutes Access to Now TV & TalkTalk BOX OFFICE Add entertainment channels with Kids or Picturebox TV Boosts a month at a time Totally unlimited broadband, no caps and no speed loss at peak times Unlimited anytime calls to UK landlines including 0870 and 0845 numbers Britain's safest connection with award winning HomeSafe security service and Super Safe Boost Free calls between all TalkTalk customers FREE YouView + box with PVR, worth £299 7 Sky Entertainment Channels 70+ Freeview channels some in HD Pause, rewind & record, including whole series record at the touch of a button Record over 200+ hours of freeview 7-day catch up with BBC iPlayer, ITV Player, Demand5 and 4oD Access to Now TV & TalkTalk BOX OFFICE Add entertainment channels with TV Boosts like Sky Sports and Sky Movies a month at a time Free Mobile SIM worth £90 including a monthly allowance of 100 minutes, 250 texts & 250Mb of data * Excluding Line Rental at £16.70 per month

TalkTalk Sky Virgin Media BT Plusnet

Simply Broadband Unlimited BB + Wkd Calls 50 MB Broadband Only Unlimited Broadband + Wkd calls Unlimited Broadband + Wkd calls Subscription £3.50 £7.50 £26.50 £16.00 £9.99 Download Totally Unlimited Totally Unlimited Unlimited Totally Unlimited Unlimited Line Rental £16.70 £16.40 N/A £16.99 £15.95 Monthly cost (inc LR) £20.20 £23.90 £26.50 £32.99 £25.94 One off charges £55.00 £6.95 £49.95 £6.95 £5.99 18 month total £418.60 £437.15 £526.95 £600.77 £472.91 Saving with TT £18.55 £108.35 £182.17 £54.31 Monthly with VLR £18.53 N/A N/A £30.15 £22.98 18 month total £388.54 £437.15 £526.95 £549.65 £419.63 Saving with TT £48.61 £138.41 £161.11 £31.09

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Excluding introductory offers

TalkTalk Sky Virgin Media BT

Essentials TV (Eve & Weekend calls) Lite box Original Bundle inc Broadband Lite (Weekend calls) Big Easy 50MB (Weekend calls) Broadband, TV Starter & Weekend calls Subscription £8.50 £21.50 £20.00 £12.50 Download Totally Unlimited 2 GB Unlimited 10 GB Line Rental £16.70 £16.40 £15.99 £16.99 Monthly cost (inc LR) £25.20 £37.90 £35.99 £29.49 One off charges £55 £31.95 £49.95 £41.95 18 month total £508.60 £714.15 £697.77 £572.77 Saving with TT £205.55 £189.17 £64.17 Monthly with VLR £23.53 N/A £32.00 £26.65 18 month total £478.54 £714.15 £625.95 £521.65 Saving with TT £235.61 £147.41 £43.11

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Excluding introductory offers Comparison includes providers’ entry level call packages

TalkTalk Sky Virgin Media BT

Plus TV (Anytime calls) Youview PVR Original Bundle inc Broadband Unlimited with Anytime Calls Big Easy 50MB with Anytime calls Unlimited Broadband & TV Essential with Anytime calls Subscription £18.50 £34.00 £28.00 £28.50 Download Totally Unlimited Totally Unlimited Unlimited Totally Unlimited Line Rental £16.70 £16.40 £15.99 £16.99 Monthly cost (inc LR) £35.20 £50.40 £43.99 £45.49 One off charges £55 £36.95 £49.95 £41.95 18 month total £688.60 £939.15 £841.77 £860.77 Saving with TT £250.55 £153.17 £172.77 Monthly with VLR £33.53 N/A £40.00 £42.65 18 month total £658.54 £939.15 £769.95 £809.65 Saving with TT £280.61 £111.41 £151.11

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Excluding introductory offers

TalkTalk Sky Virgin Media BT

Essentials TV with Fibre M Lite Box (Eve & Weekend calls) Original Bundle with Fibre Unlimited (Weekend calls) Big Easy 50MB (Weekend calls) TV Starter, Unlimited Infinity 1 & Weekend calls Subscription £18.50 £41.50 £20.00 £23.00 Download Totally Unlimited Totally Unlimited Unlimited 20GB Line Rental £16.70 £16.40 £15.99 £16.99 Monthly cost (inc LR) £35.20 £57.90 £35.99 £39.99 One off charges £55.00 £81.95 £49.95 £55.95 18 month total £688.60 £1,124.15 £697.77 £775.77 Saving with TT £435.55 £9.17 £87.17 Monthly with VLR £33.53 N/A £32.00 £37.15 18 month total £608.54 £1,124.15 £625.95 £724.65 Saving with TT £515.61 £17.41 £116.11

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Excluding introductory offers

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TalkTalk Virgin Media

Plus TV (Anytime calls) Youview PVR Big Easy 50MB with Anytime calls Subscription £18.50 £28.00 Entry Level Sim Inclusive £5 Download Totally Unlimited Unlimited Line Rental £16.70 £15.99 Monthly cost (inc LR) £35.20 £48.99 One off charges £55 £49.95 18 month total £688.60 £931.77 Saving with TT £243.17 Monthly with VLR £33.53 £45.00 18 month total £658.54 £859.95 Saving with TT £201.41

Excluding introductory offers

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FY12 FY13 FY14 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 On-Net Broadband & Voice 2.827 2.910 2.966 3.066 3.096 3.162 3.231 3.295 3.346 3.402 3.532 3.570 3.615 3.656 Broadband Only 0.815 0.758 0.712 0.689 0.669 0.642 0.609 0.575 0.548 0.526 0.503 0.490 0.468 0.449 Total On-net 3.642 3.668 3.678 3.755 3.765 3.804 3.840 3.870 3.894 3.928 4.035 4.060 4.083 4.105 Churn 1.7% 1.6% 1.6% 1.5% 1.5% 1.4% 1.7% 1.6% 1.5% 1.4% 1.4% Unbundled 87% 89% 90% 92% 93% 94% 95% 95% 96% 96% 96% 97% 97% 97% Fully Unbundled 68% 70% 73% 75% 77% 78% 80% 81% 82% 83% 84% 85% 86% 87% Mobile 0.027 0.038 0.045 0.061 0.085 0.117 0.152 0.175 0.202 0.236 0.260 0.284 0.308 0.348 Fibre 0.001 0.003 0.005 0.008 0.015 0.030 0.052 0.073 0.095 0.142 0.177 0.207 0.241 0.308 TV 0.080 0.230 0.390 0.557 0.732 0.917 1.102 1.217 Off-net Broadband 0.530 0.461 0.401 0.311 0.282 0.239 0.213 0.193 0.177 0.148 0.151 0.136 0.123 0.116 Voice 0.621 0.573 0.525 0.476 0.436 0.407 0.380 0.358 0.335 0.315 0.297 0.282 0.252 0.242 Total Broadband 4.172 4.129 4.079 4.066 4.047 4.043 4.053 4.063 4.071 4.076 4.186 4.196 4.206 4.221 Revenue On-net 261 263 276 284 285 288 292 305 306 306 320 327 322 326 Off-net 85 77 67 58 49 46 43 40 35 34 29 30 24 22 Corporate 77 81 79 79 80 80 80 82 80 82 87 91 88 89 Total 423 421 422 421 414 414 415 427 421 422 436 448 434 437 ARPU On-net 24.00 23.99 25.05 25.47 25.27 25.37 25.47 26.37 26.28 26.08 26.79 26.93 26.36 26.54 Off-net 23.41 23.49 22.79 22.57 21.71 22.48 23.13 23.31 21.94 23.25 21.23 23.09 20.18 20.01 Exchanges Unbundled in period 30 171 130 170 83 104 22 7 74 181 35 13 5 Total unbundled 2,037 2,208 2,338 2,508 2,591 2,695 2,717 2,724 2,798 2,979 3,014 3,027 3,032 3,032