The Gearbox of Mobile Value-Added Service -- Mobile Payment

1. The Gearbox of Mobile Value-Added Service -- Mobile Payment The Gearbox of Mobile Value-Added Service -- Mobile Payment

2. The Gearbox of Mobile Value-Added Services - Mobile Payment Jeffrey Wu Vice President of Suntek Group March, 2004

3. Analysis of China wireless telecom market

4. China Mobile Subscribers Growth 2000-2003 Resource from ：CMII

5. Global GSM subscribers distribution Resource from ：CMII

6. Global CDMA subscribers distribution Resource from ：CMII

7. Major achievements of 2003 • Revenue of China Telecom Industry: $ 62.4 billion , 12.7% higher than 2002’s • Total China telecom subscribers : 500million • Mobile phone subscribers reached 270million,surpass telephone subscribers • Both two take top positions in the world.

8. 2. Value-added service -- Driving forces of wireless telecom market

9. Trend of Mobile Value-Added Service Development • MMS subscribers will go up 50%. • Total market value of IVR service will reach $ 360 million • Mobile game subscribers reach to 100million. • Annual income of mobile game will breakthrough $ 240million. The expanding speed is the leading place in Asia area. Predictably, the growth rate in 2002－2006 is 85%,revenue will reach $ 860million in 2006.

10. China Value-added service situation

11. China value-added service market trend • APRU of China Carriers is around RMB 76 Yuan. • IDD market came to shrink, local-call market gone stable , but mobile market and data service extremely rising up. • The strategy of China carriers change from following the international telecom trend to some extent leading the trend.

12. China value-added service market trend • Slow down the growth of line phone services • More amusements and more applications. • Wireless data services are the most important growth area • Complication of China telecom industry value chain

13. Mobile value-added service market forecast in ASIA Resource from: IDC

14. 3. Value-Added Service Aspect

15. Value-added service aspect • Mainly 6 kinds of value-added service in China • Message : SMS, MMS • Transaction :Wireless payment • Game :KJAVA,BREW • Location-Based Services :GPS one • Browsing services: WAP • Multi-media E-mail services: IMAP4

16. Carriers status Based on GPRS network Based on CDMA 1X network Brand: Monternet , M-Zone, Uni-Info ,……. Services: SMS, MMS, Mobile e-commerce, game, Mobile Stock Trading, Mobile Banking,……

17. 4. Issues

18. Issues of value-added service in China • Billing for wireless value-added service be much more complex • Risk for small CPs or SPs to lose money from variable service subscribers • No freedom of movement to manage personal and business transactions • Time-save issue in managing information need

19. Major solutions in China • Killer Application— Mobile payment services

20. Mobile payment service status in China • Bring out scale benefits for Carriers and related industry • Bank plays an important role • launched similar business modes • Less practical applications under services • Unclear long-term developing objective

21. 5. Mobile Payment Service Case – Golden Wallet system

22. Golden Wallet Payment system • A safe multi-access platform including GPRS,CDMA, WAP, Kjava, Brew, Internet and Voice. • Provide merchants and mobile subscribers to collect money and finish real-time payment. • Create a framework for standardized, secure, and authenticated mobile payments process.

23. Mobile payment • Goldenchina Telecom service Co., Ltd. National first-class Unified information telecom service Large Service provider

24. Value-added service operation in Golden china • Characteristics of Gold Wallet system • Building own Brand “Gold Wallet” • Advanced telecom technology • Own knowledge property right • Secure network and multi-access devices • Register easily and use conveniently • For individual and merchant • Various and diversified applications • Alliance with China Bank Union • High level of customers’ satisfaction

25. Golden Wallet Applications • Prepaid card • Mobile bill • Phone bill • Payment • Insurance • ………. • Service fee • Information fee • Game fee • Transaction fee • ………… • Prepaid • Payment • E-lottery • E-commence • CRM • Service Upgrading • ……………… • Sports lottery • Soccer lottery • Welfare lottery • ………….. • Shopping • Internet shopping • Mobile post • ………… • Loyalty score • History check • Reward • Personality • ………….

26. Mobile payment service market trend • In 2006, 300 million mobile subscribers will benefit from this service • Total market capacity reaches $55billion Mobile payment service market forecast in ASIA

27. 6. The Gearbox of Mobile Value-Added Service

28. The Gearbox • Mobile payments are soon becoming a reality and will have an irreversible positive impact on the Telecom Industry. • Mobile payments will empower end users with convenience and choice by wireless devices.

29. The Gearbox • Mobile payments will be seamless integration with mobile communications industry and the financial services industry . • Mobile payment create important, long-term value in developing the wireless communication business.

30. Bright future in China mobile value-added service market • China is gearing up for a shindig that will rock the mobile value-added service sector. • China has been transferring from one country of “Biggest market” to “most Applications”. • In 2004, China mobile payment market is focusing on convenient, security, high-speed and different terminal to be successful. • More and more famous overseas organizations to participate in this process. A bright future ahead of you in China!

31. Thank you