1 September 2005 Confidential Mobile Location and Navigation: Is Now the Time for Mass Market Success? Ronen Soffer, Executive VP, Telmap

2 The (Real) Mission To bring (Mobile Mapping, Content and) Navigation to Mass Market Users

3 What it Takes  Understanding Navigation  Understanding Maps and Content  Understanding Phones  Understanding Users And…  Understanding the Business People

4 Navigation Is mission-critical and real time!  Used in a moving car  No “expert users”  Used to run on RTOS only  Relies on location sensor/s (…)  HMI hungry (audio, display etc)  Did anyone say “network”?!...

5 And So We Must Have  Correct routes  Intuitive driving instructions  Optimal map-matching  Professional guidance  Data delivery  Format  Methodology  Compression ( The Technology to Enable)

6 Maps and Content  Maps for orientation and content, vs.  Maps for Navigation  Content is  A destination and its attributes  A parameter for route to take  Something on route to…  Static and dynamic  Owned, managed and branded by ?

7 It’s a Phone…  Limited display, audio  Limited CPU and memory, storage  Networks, platforms and OSs But then again:  It has data, plus messaging and voice  It can be carried outside the car  Everybody has one! (but which one?...)

8 People Need  Maps and guides made digital and mobile  Content to be fresh and rich  Navigation to be professional  A usable application (Applications?...)  Simple distribution, activation  A good price / model

9 Business / Value Chain Aspects  Single device  Medium-range phones  Education and marketing  Channels (retail, telco, OTA)  Branding (white vs. own)  Data costs  What the carrier wants (and doesn’t)  …

10 Case Study: MIRS iDEN - Nextel International - Israel

11 Bottom Line  Penetration and Usage  Subscriber Acquisition  Business Impact  ARPU  Churn  Net adds  Brand name Navigator Launch

12 Usage Penetration and Usage  54.2% Value Active*  Above 40% remain value active after one quarter  New User Activity  7.5 sessions with 36 transactions per month  Lasting subscriber (at least one quarter)  7.9 Navigations per user per month (14 transactions)  User during exploration phase (1 st month)  Doing 4 times more POI  3 times more my location  64% more navigations * Obtaining significant value

13 Bottom Line  Penetration and Usage  Subscriber Acquisition  Business Impact  ARPU  Churn  Net adds  Brand name Navigator Launch

14 The Operator’s Perspective “Our Success is Largely due to the partnership formed between Mirs and Telmap” Abrasha Burstyn, MIRS CEO  Business Impact  ARPU – 4.9% Increase in ARPU (network wide)  Churn – 87% Decline in Churn amongst Navigator users  Net Adds – Lion Share of new subscribers are attributed to Navigation offering  Brand Name – Most Loveable ads, Best GPS, Technology Pioneer, Best Business Solutions, GPS for Everyone

15 The Users  Trust/Reliability  Relevancy  Recommendations  Satisfaction

16 The Users Relevancy “Navat Koli” is the Telmap Navigator branded name 61.3% Would like to use “Navat Koli”

17 The Users Satisfaction “Navat Koli” is the Telmap Navigator branded name 70% Are Satisfied

% Would Recommend The Users Recommendations “Navat Koli” is the Telmap Navigator branded name

19 The Users Trust/Reliability “Navat Koli” is the Telmap Navigator branded name 76.3% Find it reliable

20 The Project  Turn Key Solution  Hosted, Content aggregate, operated by Telmap  Pre-installed on devices  Motorola i830, i860, i850  Efficient Marketing  Simple Audio-Visual Navigation  Flat Rate pricing  €3 per month (no data charges)  Pricable options (speed cam, traffic etc.)  Major Campaign (TV, Papers, etc.)  Linked Brand Name to GPS to everyone

21 Summary  Most Valuable Mobile Navigation Solution  Focus on Mobile Users Tailored for Operators  Dramatic Business Impact:  Penetration, Usage, Satisfaction  Ready  Hosted Solution and Available Handsets  Service Business Model  Simpler, Easier, Better

22 September 2005 Confidential Thank you!