SMS-CB

1. SMS-CB CellBroadcast Forum Cegetel SMS-CB Project

2. Summary • SMS-CB : what do we know ? • What are the strengths of SMS-CB ? • SMS-CB current Status in SFR • What is the Business Model for SMS-CB ? • SMS-CB Teasing • Chargeable recurrent services on SMS-CB • Pay per Use services on SMS-CB Cegetel SMS-CB Project

3. SMS-CB : What do we Know ?SMS looks today more attractive than SMS-CB Developping basic SMS is the most effective way to increase ARPU in 2001 and following Success tomorrow in multimedia services (UMTS) relies mainly in our capacity in developping today services above existing technologies, among them SMS. Among the various short message technologies available, SMS-CB is clearly not an easy one to implement beside SMS( new bearer, customer education, handset bugs, DRX problem, billing question, risk to confuse the customer) Cegetel SMS-CB Project

4. What are the strengths of SMS-CB ? It is strictly compliant with EU and French regulations about customer privacy protection It could deliver any short message on Real-Time whatever the volume is Messages could be location-based It looks convenient for teasing (but maybe not efficient because of the No Reply feature) where the customer chooses to make a pull request It could be transparent to the end-user through OTA (provisionning/unprovisionning) Cegetel SMS-CB Project

5. SMS-CB Current Status in SFR SFR will launch before the end of the year some Field Tests on SMS-CB to understand the customer acceptance of this « new » technology. SFR is further interested in getting any kind of information from fellow operators on the handset types that are definitly not compliant to SMS-CB. It is today expected that a significant share of the customer base will not be concerned by SMS-CB, depending on handset type, vulnerability to the power issue and need of SMS services. Every trial of SMS-CB application would be performed on Class 0 or SMS-CB to make a clear picture of SMS-CB strength and weaknesses. Following these trials, SFR may decide to go on SMS-CB. Cegetel SMS-CB Project

6. What is the Business Model for SMS-CB ? SFR does not expect to make significant revenue with SMS-CB • in the wholesale or the advertising business . • in traffic information to in-car handsets : it may appear to be life-endangering (except for dedicated terminals as in D2) • in STK based services or any form of encryption related to SMS-CB SFR believes in the indirect revenue model where • the customer could apply for teasing, with answer through manual SMS or vocal call . Channel provisionning would occur through OTA • the network could broadcast geographical or Home Zone information SFR believes in the direct revenue model through • locking of SMS-CB provisionning thanks to 4 and 5 digits channel numbers through OTA, and make the customer pay for it. Else, un provision the channel. • proposing pay per use « one-to-many » entertainment services location-based as a side business (chatting, dating, ….) • proposing corporate broadcasting services on a significant fleet In any cases, SMS-CB efficiency is to be compared to Class 0 SMS. Cegetel SMS-CB Project

7. SMS-CB Teasing Any time a customer declares one ’s hobbies, or centers of interest (sports, stocks, leasure, etc.), we may check against one ’s handset type and SIMcard type and define the right level of teasing service SFR can deliver on SMS or SMS-CB. Depending on the chargeable services we can deliver, and the marketing events in process, the customer would be teased • for applying to a recurrently charged service through free trial offers • for getting more info through chargeable SMS or vocal call request (even if automatic reply to SMS-CB is not expected to work on existing handys) SMS-CB can be used as bearer for the teasing or for the recurrent chargeable service depending on the volume of messages to be sent and the value for the customer of real-time information. Location-based broadcasting does not appear to be yet a key-parameter for teasing purpose. Cegetel SMS-CB Project

8. Chargeable Recurrent Services on SMS-CB The picture looks relatively simple : • OTA downloading is based on 4 digit hexadecimal coding which could number upt to 55 536 different channel numbers • OTA downloading offers aibility to provision or unprovision any channel number with a relative fair probability of efficiency • Handset Man Machine Interface on SMS-CB usually forbids declaring an Info channel number exceeding 3 digit length. If SMS-CB proves to be more reliable or competitive than SMS, why not using SMS-CB for delivering the services ? If the customer goes on paying the monthly fee, he will receive the information : after customer’s service cancellation, the network will unprovision through OTA the right channel number. Cegetel SMS-CB Project

9. Pay per use Services on SMS-CB Three main fields of investigation : • Youth targeted services : developpment of SMS entertainment services as chatting/dating or even gaming may enable an operator, provided its customer base addicted to such services is wide enough, to offer « one to many » broadcasting services on pre-defined limited geographical zones. Message charging might be offered on a premium rate SMS basis (limited to 80 caracters), with one possible message every 10 to 20 second. Not every message would be broadcasted. • Corporate targeted services : when the number of targets for one single message is significant, as the number of messages per month. It can be senn as a loyalty building offer. • Local communities targeted services : same as hereabove, but on a more restricted geographical zone. Clearly, such an application is not designed for emergency services : SMS offers better reliability through receipt acknowledging and delivering even if the line is busy. Cegetel SMS-CB Project

10. Thank You for your attention Antoine DAVID Special Project Manager SFR Antoine.david@cegetel.fr Cegetel SMS-CB Project