Content, Advertising & Software Iain Gillott (512)

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world North American ARPU, Ringtones Games Ringtones, Games, , IM, Music, Video, LBS

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world North American Wireless Data Revenue by Airtime and Content, ($M) Subsidized bandwidth fees with advertising Subsidized content with advertising

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Future Uses of High-Bandwidth Wireless Networks iGR asked the mobile workers what types of applications they would use on a higher bandwidth wireless data network Top two answers were: “the same applications as I use today” and file transfers Some interest in using the higher bandwidth for different applications (gaming, photo sharing, movie downloads, video conferencing, remote training) Video conferencing, remote training, and large file transfers are applications that could have a significant impact on productivity, but require higher bandwidth wireless data networks to be enabled

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Relationship Between Increasing Bandwidth and Price Willing To Pay There is a ceiling for bandwidth pricing No matter how much you provide, users are unwilling to pay more Must therefore charge for Applications and Services

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Parent and Tween Use of Features/Services At least once per month

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Use of Cellular Phone Features and Services by Seniors With A Handset

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Child: What types of things do you like to do/would like to do on a cellular phone? Communicate Entertainment

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Parent: If You Were to Buy Your Child A Cellular Phone, What Services Would you Like the Operator to Provide? Control access Track & monitor Knowledge

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Interest in Operator-Assisted Services by Seniors with a Handset If by dialing 0 on your cell phone you were connected to a live operator, which services would you like to be offered?

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Content & Application Distribution Example from Wmode Consolidated Content Catalog ContentMeta Storefront Builder Placement Price Campaigns Segment Merchandised Stores Mobile/Media Player/Client WEB SMS/MMS Purchase Transactions Transaction Receipts Business Intelligence Web Analytics/Discovery Hits Set-Top Box Data Warehouse Source: Wmode, Inc 2008

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Move from Service/Application centric to User Centric Individual Devices My Communication My Entertainment My Persona My Communities SIMPLE & INTEGRATED Connected Devices Discrete Music Video Photos Games Home Home IM Home VM Work IM Work Voice Work VM SMS COMPLEX & SEPARATE

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world The Consumer Vision Laptop PDA Printer VOIP HDTV PC MAC Fridge Car Service Brands Consumer ’ s Shared Device ’ s Content Enablement Service Delivery Platforms PVR WiFi Home Vault Camera Cable MSO ISP/ Telco MNOSatellite SNO Internet Brand X.com Mobile PrintMedicalBankingGamingShopEducationPhotosMoviesCommunityBackup Consolidated Content Catalog ContentMeta Merchandised Stores Billing & Settlement Supply Chain MusicAutoFood

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Next Gen Applications Presence Location Payment Messaging Identity Management VoIP Content Corporate applications Video Service Creation Remote control of TiVO Remote monitoring for home Kid locator Social networking Video messaging with voice attachment Personal Ringback Video conferencing SWIS Multiplayer /interactive gaming Multimode communications Event-based alerting Video monitoring Push to XXX

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Communication Personal Entertainment Community User Young Business Consumer Old RIM Toshiba Scientific Atlanta Lenovo LG Samsung Motorola Sony Nokia Apple Dell Pansonic HP GE SanDisk Google Yahoo MySpace YouTube Cable MSO Google Yahoo Disney Apple YouTube Google Yahoo Apple YouTube MySpace BlackBerry VZW at&t BCE Yahoo Google Earthlink MVNO Cable MSO Sprint Nextel Fixed Portable Mobile at&t VZ Qwest RogersAlltel Wayport T Mobile

Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world Winners Mobile operators Still control high-value components of network Open network development Partnerships Google, Yahoo Brand, applications Advertising driven model Subsidized bandwidth? Apple, RIM Vertically integrated App developers Nokia Software initiative provides differentiation from handset OEM competitors