VIRTUALSIM for FIXED LINE TELCO

1. VIRTUALSIM for FIXED LINE TELCO 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 variants Platform customization

3. Telecom markets outlook

4. Telecom markets outlook Most of the telecom markets are mature Mobile penetration above 100% Interest in Fixed lines is stagnant or dropping ARPU Saturation and overall EBITDA reduction Fierce competition between players Native services revenues (VOICE) dropping DATA (xDSL) 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?) Mobile technology has killed the fixed lines OTT vendors are a real threat to both MNO/MVNOs and Fixed lines Telcos Operators must innovate to stay relevant or alive !!!

6. Who owns the subscriber?

7. Who owns the subscriber? Telco that provides Network access (Sim or Fixed) or Terminal vendor that enables certain type of user experience (problematic in Fixed Telco) ? or The content (OTT application or The Social network) that provides modern communication solution ?

8. Problems

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

10. Problems continue Fixed line operators have very little ability to innovate. xDSL was the last successful attempt for life extension and monetization of traditional fixed line business. Simply MOBILE is the name of the game and Fixed line Telecom operators need to find a way to jump on a mobile train in order to stay relevant or even in business

11. Problems continue OTT vendors and their applications have evolved over the past few years. Skype, Viber, WhatsApp , 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 Telecom Service offering.

12. Problems continue Fixed line operators are not controlling the main user Interface which subscribers use when using their most frequently consumed services : Fixed (wireless) phone dial pad is User interface !!! These interfaces are dictated by Terminal vendors and are very rarely changed and almost never customized for individual Telecom Operator

13. The solution : VIRTUALSIM

14. VIRTUALSIM VIRTUALSIM (VSIM) is state of the art Telecommunications platform designed to modernize Traditional Telecom Operator service offering. Its main purpose is to transform Telco Native Services into an application layer of OSI. Traditional Voice service is transformed into Value Added services of the last remaining Native Service – DATA

15. VIRTUALSIM VIRTUALSIM (VSIM) platform is able to add SMS messaging component to the Fixed line business We have developed in house , SMSC and SMPP gateways which can be deployed in Fixed Telco environment. With VIRTUALSIM any fixed phone number becomes “mobile” number with ability to call , receive calls and exchange SMS with mobile subs

16. VIRTUALSIM continue VIRTUALSIM is designed to modernize Fixed line Telco service offering and mitigate revenue churn to mobile (Voice) and to third party OTT solutions With VIRTUALSIM , Telecom operators are able to match and surpass the value proposition of major OTT vendors (Viber, Skype, Whatsapp, 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 calls • TV streaming and Video on Demand

19. VIRTUALSIM continue VIRTUALSIM can be integrated with Telecom Operator switches, signaling, 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 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 about its subscribers which can help in making the right decisions about the new product packaging and pricing

21. 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 smart terminal – Every segment is fully under control od the Telecom operator.

22. Product development

23. Product development VIRTUALSIM platform is a GAME CHANGER for Fixed line Telecom operator business !!! Fixed line Telco immediately becomes “mobile” operator , with full set of features VIRTUALSIM is dramatically boosting Fixed line Operator value proposition to its clients !!!

24. 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)

25. Product development continue Potential products based on VIRTUALSIM: Take your fixed line with you, where ever you go 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 Trojan horse (Deliver services on competition terminals) Deliver local TV & VOD for expatriates

26. 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

27. Product development continue Advertising business models : Select and advert to listen/watch and get a free call Dial a number with # in front to listen to the advert and get a free call (SMS , DATA or airtime) Ring back tone dynamic advertising INAPP banner, INAPP push video TV channel for advertising There is a limitless potential for additional product development

28. Security VIRTUALSIM platform is integrated with Fixed line Telco Operator network and its BSS/OSS systems VIRTUALSIM equipment sits in Telco datacenter Remote management is done via secure VPN Security is totally under the control of Telco staff VIRTUALSIM platform has Lawful Intercept interface (LI) for Regulatory compliance purposes

29. Platform components

30. Platform components • VIRTUALSIM platform consists of : • 1. Main Switch 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. Dialer interface, integrated with device contacts • 2. Messaging interface , blending SMS and RICH IM • 3. Recent call history • 4. Credit top up and phone number purchase int. • 5. Various settings • 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 variants

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 (30 days) Alternatively Fixed line Telco can choose to do a FULL SCALE deployment from start (90 days) Migration from SOFT LAUNCH/POC to FULL SCALE deployment is also possible in the later stage.