VIRTUALSIM OTT Platform for MNO/MVNO

1. VIRTUALSIM OTT Platform for MNO/MVNO March 2017

2. Agenda Telecom markets outlook Who owns the subscriber Problems The solution : VIRTUALSIM Product development Platform components User interface – The app How does it work Implementation scenarios Platform customization

3. Telecom markets outlook

4. Telecom markets outlook Most of the telecom markets are mature Mobile penetration above 100% ARPU Saturation and overall EBITDA reduction Fierce competition between players Native services revenues (VOICE & SMS) dropping DATA is the biggest contributor to ARPU

5. Telecom markets outlook continue Product diversification is difficult or impossible Pricing diversification is difficult or impossible Customer loyalty is low (Number portability?) OTT alternatives are a real threat to MNO/MVNO Operators must innovate to stay alive

6. Who owns the subscriber?

7. Who owns the subscriber? MNO/MVNO that provides Network access (SIM)? or Mobile terminal vendor that enables certain type of user experience? or The content (OTT application) that provides modern communication alternative ?

8. Problems

9. Problems Subscribers became more aware about costs of communication and have learned creative ways of cost optimization (Skype, Whatsapp, FB). MNO/MVNO are becoming “just a pipe” for connecting the subscriber to the content (OTT) which usually sits in the cloud. Roaming ??! No way!!! I am using Viber via WIFI or I take a local SIM card.

10. Problems continue OTT vendors and their solutions (applications) have evolved over the past few years. WhatsApp,Skype, Viber, , Facebook and others , have managed to significantly improve its functionality and user experience. Combined with omnipresence of free WIFI internet access , OTT solutions have became a viable alternative to traditional MNO/MVNO offering.

11. Problems continue Telecom operators are not controlling the main user Interface which subscribers use when using their most frequently consumed services : DIAL PAD screen (Voice) and SMS screen (SMS) These interfaces are dictated by Mobile terminal vendors and are very rarely changed and almost never customized for individual Telecom Operator

12. Problems continue Amazingly – this is the user interface of a traditional MNO/MVNO for their native services : Voice and SMS. Telco has practically zero control over their most frequently used user interface

13. Problems continue MNO/MVNOs have very little ability to monetize truly amazing number of NON SIM terminals that have flooded the world in the recent years Millions of IOS (Ipad, Ipod) and ANDROID (Tablets, media players) devices have been delivered to the world market and are used for consumption of billions of $ of online content

14. The solution : VIRTUALSIM

15. VIRTUALSIM VIRTUALSIM (VSIM) is state of the art Telecommunications platform designed to modernize MNO/MVNO service offering. Its main purpose is to transform MNO/MNO Native Services into an application layer of OSI. MNO/MVNO’s Voice and SMS services are transformed into Value Added services of the last remaining Native Service – DATA

16. VIRTUALSIM continue With VIRTUALSIM , MNO/MVNO operators are able to match and surpass the value proposition of major OTT vendors (Whatsapp, Viber, Skype Facebook) VIRTUALSIM platform offers full set of RCS (Rich Communication system) features : Super Rich Text Messaging (with Photos, Videos , Documents and Location sharing) , Voice calls, Video calls

17. Comparison with other OTT

18. VIRTUALSIM continue • In addition to standard OTT solutions features VIRTUALSIM platform offers broad range of Telecom operator related features : • Seamless and SIM less MSISDN acquisition • Multiple MSISDN on one customer account • APP to SMS and SMS to APP messaging • APP to PSTN and PSTN to APP voice calls • TV streaming and Video on Demand

19. VIRTUALSIM continue VIRTUALSIM can be integrated with Telecom Operator OSS/BSS and core systems and de facto become new super modern channel for consumption of already existing products and services (Voice, Messaging , Video) VIRTUALSIM unlocks potential for new revenue streams ,overall business development and boosts corporate image in the eyes of customers

20. VIRTUALSIM continue VIRTUALSIM platform offers amazing flexibility to the Telecom Operator for new products and services configuration and development It significantly reduces time to market , compared to traditional systems, and allows for efficient testing of new ideas and concepts

21. VIRTUALSIM continue VIRTUALSIM platform is incorporating powerful analytics , which can give valuable insight about huge amount of parameters like : Customer behavior, profile, segmentation , terminal in hand, Platform performance and much more With VIRTUALSIM ,Telecom operator gains access to amazing amount of information (Big Data) about its subscribers which can help in making the right decisions about the new product packaging and pricing

22. VIRTUALSIM continue VIRTUALSIM is designed as modular solution with limitless potential for future expansion VIRTUALSIM can be seamlessly integrated with any other service offered by the MNO/MVNO like : Mobile money , various VAS, airtime purchase, Self Care Portal Additional services can be presented via new tab within the VIRTUALSIM Smart terminal app

23. VIRTUALSIM continue With VIRTUALSIM , Telecom operator finally gains the possibility to control END to END user experience. From Physical Network connectivity, Product Packaging and Pricing , all the way to User interface on the mobile terminal – Every segment is fully under control of the Telecom operator.

24. Product development

25. Product development VIRTUALSIM platform is a enabler of creativity : Unlocking limitless potential for product development Targeting higher end of the customer base It is fantastic weapon against third party OTT Enabling new revenue channels Offering modern customer experience VIRTUALSIM MSISDNs are fully functional numbers (in/out calls , in/out SMS , unlike 3rd OTT)

26. Product development continue Potential products based on VIRTUALSIM: Beta brand creation Enterprise Hosted PBX replacement-solves BYOD problem Multiple MSISDN on one terminal WIFI Calling Diaspora number : for Diaspora and Expatriates Stay in my cloud : Use VSIM IM , instead 3rd OTT Use your NON SIM Terminal (IPAD/IPOD) as a phone Trojan horse (Deliver services on competition terminals) Deliver local TV & VOD for expatriates

27. Product development continue The platform has amazing advertising business potential Besides the classical IN APP advertising of any type (Banner, Whole screen …) VIRTUALSIM enables various IN CALL advertizing models , including VIDEO advertizing on smartphone This feature additonaly boosts the monetization potential for the platform

28. Security VIRTUALSIM platform is deeply integrated into MNO network (LAN, MSC, HLR, BILLING). VSIM equipment sits in MNO’s datacenter Remote management is done via secure VPN VSIM Platform has no inherent security loopholes Security is totally under the control of MNO staff

29. Platform components

30. Platform components • VIRTUALSIM platform consists of : • 1. Core system with following functionalities: • Soft switch HLR functionality (SS7) • VLR Functionality (SS7) • SMSC Server for SMS Relay (SMPP) • IM (RICH Instant messaging) server • 2. Prepaid/Postpaid Billing system • 3. Smart terminal application (The APP) • 4. Application server (Management system)

31. Platform components continue • Smart terminal application consists of : • 1. Contacts interface • 2. Messaging interface , blending SMS and RICH IM • 3. Dial pad and Recent/Missed call history • 4. Optional TV & VOD interface • 5. Various additional settings (Profile, MSISDNs…) • Apple IOS and Google Android APP versions are available

32. User interface

33. User interface Calls tab : Recent/Missed call list Open Keypad for manual dialing Select Caller ID Indicates FREE CALL in case APP to APP call or Price per min of Paid call Mute mic ,Speakerphone , Hold call Video call, Keypad for DTMF Indication of DATA connection quality

34. User interface continue Video call: Initiated from the voice call Only APP to APP calls Accept/Decline by the user HD video quality Front/back camera support Hold/Mute/Speaker/DTMF Transparent menu

35. User interface continue Contacts tab : Integrated with device contacts Displays profile pictures Highlights contacts who are already using the platform Click/Press on contact to call or SMS/IM

36. User interface continue Messages tab : Integrated with device contacts Integrates SMS and RICH IM Share Camera, Album Photos, Video, or Location Dialogue display method Message timeline and delivery status (Delivered, Seen) Group chat, Emoticons, Dictation Online Status of the correspondent

37. User interface continue TV tab : Optional module HD Live TV channels streaming HD Video on demand (VOD) Airplay & Chrome cast support Use your terminal as remote ctrl Customized TV bouquet per user TV & VOD billing solution

38. User interface continue TV & VIDEO ON DEMAND: Pause/Play the TV stream or Video on demand Redirect video to TV via Airplay or Chrome cast

39. User interface continue More tab : Current account status ($) Buy credit My Phone Numbers Get new MSISDNs Share the app with contacts Rates (for Calls and SMS) Settings

40. User interface continue Incoming call: Displays caller name and CID Displays the number that call is coming to (Call to) Answer the call Reject the call

41. User interface continue Smart Terminal OS integration: Call back form the default dialer VIRTUALSIM call can not be interrupted by the GSM call Equal presentation of GSM and OTT incoming calls on the smart terminal

42. User interface continue Push notifications : Virtual SIM app icon will indicate new events which require user attention New SMS/IM Missed call alert and notificatoon

43. New features pipeline New Features in V 3.0 (soon): Audio Conference Call Video Conference Call Merge calls Voice mail Send chat summary to mail Interactive TV

44. How does it work?

45. Making a call When making a call from VIRTUALSIM client application, the call will get transfered to the Procescom VIRTUALSIM Service Platform over the IP network by using a Wi-Fi or cellular data network connection (3G/LTE) .

46. Receiving a call When receiving a call, the call will be propagated from the originating network to the VIRTUALSIMService Platform from which it will be transfered to the VIRTUALSIMclient application over the IP network.

47. Sending an SMS A SMS text message sent from the VIRTUALSIM client application will be transfered over the IP network to the VSIM Service Platform where it will be handled by an embeded SMSC.

48. Receiving an SMS VIRTUALSIM Service Platform encapsulates HLR, VLR and SMSC functionality in order to be able to handle an incoming SMS message and route it to the recipient over the IP network.

49. Implementation scenarios

50. Implementation variants VIRTUALSIM platform Is designed to be extremely flexible in terms of operational environment We are able to do a rapid deployment in a form of a SOFT LAUNCH/POC (7 days) Alternatively MNO/MVNO can choose to do a FULL SCALE deployment from start (30 days) Migration from SOFT LAUNCH/POC to FULL SCALE deployment is also possible in the later stage.