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Mobile Services EvolutionCrossing the chasm

Sub-Regional Seminar on IMT-2000Warsaw, October 2-4 2001

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Chasm

Crossing the chasm

Marketpenetration

Time

Casualperceptionof market

Traditionaltake-up ratefor handsetbusiness

Point where mass marketcan be made because ofcost / value balance

With the infra market huge build-out is needed before market is made

Handset growth vs. Infrastructure growth

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Critical success factors for mobile services

Services TornadosEvolution at

DifferentClock Speeds

Use Key Technologies

as invisible enablersfor services

Create Business Model

with clear value:simple tafiffing and

revenue sharing

Gain End User Acceptance

by portfolio of central applications

and services

Creating value

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Mobile terminal services environmentMaking the mobile services tornado happen

Mobile, real time, life enhancing,easy and familiar to use, fun and fast

Key user benefits

Messagingand email

Games and personalisation

Web content and downloadsKey applications

Content transport and messaging

Downloadable applications

Content search and accessKey function

MMS Java xHTMLKey technologies

From WAP/WSP to WAP NG (TCP/IP) Common transport

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Our value addition to the mobile services environment

Messaging, Browsing and StreamingMobile Network/

Connectivity

Servers/Middleware

Client

Content/Applications

Harmonised Client-Server Offering

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Network

ApplicationPlatforms

Terminal

GPRS NETWORK(always on)

Chat & Community

xHTML

WAPGateway Mobile

Advertising

GPRSWAP Push

Synchronising service and technology evolution

MMSColourScreen

MultimediaMessaging

Java

Location BasedServices

WCDMA NETWORK(R’99)

GPSPositioningStreaming

Digital RightsManagement

SecuredMobile

Payment

R’4 and R’5

Handset gamesWAP Games

Colour ScreensJava based Games

Online interactive games

Graphic Intensive GamesGames content streaming

Example: Mobile Games Evolution

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Increase ARPU by segmenting service delivery

New Revenue

New Revenue

Revenue with standard

services

ServicePrice

Usage of service - Volume

HSCSD

EGPRS

GPRS

WCDMA

Higher Quality Higher value Higher revenue & profitHigh impact to Network capacity

Market pressure for lower tariffs and higher quality

Very low delivery cost Attractive tariffs Very high volumesHigher revenue & profit No/Low impact to Networkcapacity

EGPRS WCDMA

High profitability will come from a balanced services portfolio with effective use of Quality of Service

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> 550 Million SMS capable GSM terminals

GPRS

WCDMAEDGE

WAPSMS

LifestyleTargetARPU

€

Lifestyle needs will drive service evolution

TotalDisposable

Income

MobileSpend

ServiceCreationStrategy

LifestyleService

Offer

WAPGPRS

3G

LifestyleNeeds

SMS

NewRevenueSources

AdvertisingPromotion

AddedValue Sell

What can we do today?

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Clock speeds

Drive MobileData Growth

Christmas 2001Based on improved access capabilities, new service features like WAP Push, WTAI

PHASE 1:Service Boost

Increase MobileData Usage

Summer 2002Based on MMS capability, xHTML, Color, Java

PHASE 2:NextPhase Services

IncreaseARPU

Christmas 2002Based on improved access capabilities

PHASE 3:Advanced Services

Example: Messaging

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Merji Khorchidian+48 601 294 608Director, Customer MarketingNorth, Central and Eastern Europemerji.khorchidian@nokia.com