Wireless Internet: Market Trends and Strategies

1. Wireless Internet: Market Trends and Strategies GSM Congress Asia Pacific 2000, Singapore Regina Wong Consultant ARC Group - Bradstone Brook - Shalford- Surrey - GU4 8HR - UK Tel: +44 1483 57 15 89 - Fax: +44 1483 57 13 27 - www.the-arc-group.com Analysis. Research. Consultancy Regina Wong- GSM Congress Asia Pacific 2000

2. ARC Group • A subsidiary of the Informa Telecoms Group • Seek to help our clients identify, assess and profit from business opportunities in the communications sector, with a strong focus in the areas of mobile communications, mobile internet and digital broadcasting • Products: • Strategic Research Reports eg. Wireless Internet, Content & Applications, Future Mobile Handsets • Consulting • e-briefs (Telecoms conference summaries) • Industry Surveys eg. WAP, Bluetooth Regina Wong- GSM Congress Asia Pacific 2000

3. Agenda • Market Size and Scope: growth and usage • Market Positioning and Strategies • Revenue and Pricing Models • Conclusion Regina Wong- GSM Congress Asia Pacific 2000

4. Market Size and Scope How Many? How Fast? Regina Wong- GSM Congress Asia Pacific 2000

5. Mobile Data Users Worldwide • Mobile data usage led by Western Europe Regina Wong- GSM Congress Asia Pacific 2000

6. Mobile Internet Applications Usage Regina Wong- GSM Congress Asia Pacific 2000

7. Mobile Subscribers by Technology Regina Wong- GSM Congress Asia Pacific 2000

8. Market Positioning & Strategies What? How? With Whom? Regina Wong- GSM Congress Asia Pacific 2000

9. The evolving industry value chain The traditional telecoms value chain Traditional Portals/ Aggregators Enabling Technologies Operators and ISPs Vendors End-users Application Service Providers Content Providers Market share & Revenues The current mobile internet value chain Mobile Service Providers Vendors End-users Content Providers Application Service Providers Enabling Technologies Mobile Portals/ Aggregators Regina Wong- GSM Congress Asia Pacific 2000

10. Partnerships Access Operators Service Providers MVNOs Mobile ISPs Vendors Network Mobile terminals • New value chain • Customer loyalty and generation • Rapid market • deployment Application Providers Content Providers Middleware and Platform providers Aggregators Portals Players’ bargaining position in partnership reflected by the size of their bubbles Regina Wong- GSM Congress Asia Pacific 2000

11. Issues to consider • Market environment- needs, tastes, values, target market • Position along the value chain • Competitive strategies • Establishing partnerships • Services and information that appeal to consumers • Pricing and revenue generation • Getting the message across to consumers Regina Wong- GSM Congress Asia Pacific 2000

12. Segmentation of Terminal Market 1998 1999 2001 2005 PHONES Entry level phone very limited data Low End High bandwidth small High bandwidth screen phone small screen phone Mid Range VAS Mobile VAS Handsets small screen High End Multi - sub segments VAS Mobile Medium to large medium screen Communicator screen Smartphone/PDA High end Smartphone large screen ORGANISERS Bluetooth Enabled PDA Application specific Application specific HPC equipment or terminal with equipment or terminal bluetooth with bluetooth Application specific Application specific terminal with built - in or PORTABLE terminal with built - in or plug - in wireless data or plug - in wireless data COMPUTERS voice data module or voice data module Small Notebook Mini notebook with built - in wireless module Time Regina Wong- GSM Congress Asia Pacific 2000

13. Revenue & Pricing Models Earning the $$$ Regina Wong- GSM Congress Asia Pacific 2000

14. World wide ARPU by Application WAP Industry Survey 2000: 60 operator respondents Regina Wong- GSM Congress Asia Pacific 2000

15. Mobile Data as share of monthly ARPU (in 2000)(WAP Industry Survey June 2000) Number of Operator respondents: 60 Regina Wong- GSM Congress Asia Pacific 2000

16. Mobile Data as share of monthly ARPU (in 2003)(WAP Industry Survey June 2000) Number of Operator respondents: 60 Regina Wong- GSM Congress Asia Pacific 2000

17. Two most common revenue models for mobile content provision(WAP Industry Survey June 2000) 2% Free, ad driven 15% Free, sponsor driven 16% Free, operator paid 19% 13% Flat fee access to all svs. 11% Subs. to selected services 9% 15% Volume based usage fee Per transaction charge Other Number of industry respondents: 300 Regina Wong- GSM Congress Asia Pacific 2000

18. Conclusion • Mobile internet offers service providers new market and revenue opportunities • Keys to maximizing these opportunities • position along value chain • market conditions • getting the message across to consumers • Market inhibitors • terminal design and supply • network capacity • shortcomings of current technology • Change consumers’ perception of the mobile phone Regina Wong- GSM Congress Asia Pacific 2000

19. Latest Report Wireless Internet: Applications, Technology and Market Strategies Worldwide Market and Technology Developments 2000-2005 Publication date: September 2000 Thank You! Regina Wong-Consultant rwong@the-arc-group.com Regina Wong- GSM Congress Asia Pacific 2000