“ Opportunity for U.S. Firms ” in the growth of wireless network businesses in Asia Koji Osawa, Ph. D. Managing Principal and Co-Founder Global Catalyst Partners Dec. 8th 2005

VC for Early Stage Start-up Companies in IT sector (Component, Software, System/Sub-System) $300M under management Management Team –Kamran Elahian (Chairman & Co-Founder) (Co-Founder of Ciruss Logic, NeoMagic, Centillium) –Koji Osawa (Managing Principal & Co-Founder) (Mitsubishi Corp.) –Vijay Parikh (Managing Principal) (VP & GM, CISCO Systems) –Art Schneiderman （ Principal & Co-Founder) (Partner, Wilson Sonsini Goodrich & Rosati) Global Operation –US, Japan, Beijing, Singapore, Israel Global Catalyst Partners

Wireless Businesses in Asia Asia is the largest region for BWA deployment.

BWA Subscribers (Asia vs. NA) Thousands of Subscribers Market Assessment for Aisa-Pacific ・ India and China present the largest global opportunity for growth ・ Developed regions such as Korea and Japan are interested in prospects for mobile WiMAX Source: YANKEE GROUP “Positioning WiMAX for Success in the Global Broadband Market” 2004

Wireless Businesses in Asia Asia is the largest region for BWA deployment. Each Asian country have unique characteristics. –Japan / Korea : High ratio of Mobile Internet

Ratio of mobile phone Internet subscribers to mobile phone subscribers [%] Source: White Paper 2005 (Ministry of Internal Affairs and Communication of Japan (MIC) )

Wireless Businesses in Asia Asia is the largest region for BWA deployment. Each Asian countries have unique characteristics. –Japan / Korea : High ratio of Mobile Internet Very active to adapt new technologies and services (ex.) 3G, EV-DO, HSDPA, WiMax, Camera Phone, Contactless IC Card, RF ID, GPS, Ringtone, Terrestrial Digital Broadcasting, …….

Mobile phone subscribers in Japan Transition in the number of mobile phone subscribers in Japan Transition in the number of 3G mobile phone subscribers in Japan Source: White Paper 2005 (MIC of Japan)

Features of Mobile Phones Survey on the Most Useful Features of Mobile Phones in Japan [%] Source: White Paper 2005 (MIC of Japan)

Total handsetsCameraphones Sales (m) Cameraphone Sales Forecasts Camera Phone (WW) Source: Informa Telecoms & Media ‘Future Mobile Handsets strategic report 2005’

Terrestrial digital broadcasting in Japan Shipment of terrestrial digital broadcasting receivers Source: White Paper 2005 (MIC of Japan)

Contactless IC Cards “FeliCa (Sony) ” FeliCa card is the world's first contactless smart card certified by ISO / IEC EAL4, which is the most reliable criteria to measure the security level of a system. Source: /products/felica/

eMoney Services in Japan ServiceProviderTrade nameConceptImage Commuter Tickets JR EastSuica Super Urban Intelligent Card “Touch-and-Go” and Seamlessly Pass through the Ticket Gate ・ Over 14million users Prepaid e-money bitWallet (NTT DoCoMo, Sony, ANA, Toyota etc.) Edy“3 in 1 Card” One card usable in prepaid (with Edy), debit and credit card ・ 14 million users Internet Credit Sony Finance Int’l eLIOeLIO authenticates yourself and shop safe on the web ・ 36 associates (card companies)

Shipments of FeliCa chips reached 100 million units as of October, 2005 Shipments of FeliCa chips 100 million ・ Contactless IC card90 million ・ Mobile FeliCa10 million Singapore Japan HongKong China Thailand India Mobile Source:

Wireless Businesses in Asia Asia is the largest region for BWA deployment. Each Asian countries have unique characteristics. –Japan / Korea : High ratio of Mobile Internet Very active to adapt new technologies and services (ex.) 3G, EV-DO, HSDPA, WiMax, Camera Phone, Contactless IC Card, RF ID, GPS, Ringtone, Terrestrial Digital Broadcasting, ……. Major system, device & service companies (Samsung, LG, NEC, Panasonic, Sony, Hitachi, Fujitsu,….)

Wireless Businesses in Asia –China : World leader in mobile subscribers and large opportunity to grow

China World Leader in….

Wireless Businesses in Asia –China : World leader in mobile subscribers and large opportunity to grow MVAS sales for 2005 is $1B+ and growing

China’s MVAS Markets Source : Morgan Stanley Research

Wireless Businesses in Asia –China : World leader in mobile subscribers and large opportunity to grow MVAS sales for 2005 is $1B+ and growing Crucial mass-market manufactures (Huawei, ZTE, …) –India : Large opportunity to grow 60M mobile users today and 120M lines expansion by 2007 Active to deploy BWA (BSNL, Reliance, Tata,....) –Taiwan : Center of handset manufacturing (BenQ, Compal, ASUS, Foxconn, Quanta, CMCS, Arima, HTC, Inventech, …..)

Opportunities for U.S. Firms –Asia : Growing Market Active to adapt New Technologies & Services Major System & Device Companies –Opportunities : Infrastructure (System, SW, Services, ….. ) –India, China, BWA, RF ID, Contactless IC Card, M-Commerce, …. Enabling Technologies (Components, SW, System, …. ) –Lower Cost, More Features, Lower Power, New Revenue Generation, …. Services & Content –Local oriented, but Business Model, Brand, …. Investment, M&A –Opportunities for PEs (VCs, Buyout,..) & Corporations Exit Strategy –Acquisitions by Asian Firms

Thank You. Koji Osawa, Ph. D. Managing Principal and Co-Founder Global Catalyst Partners Dec. 8th 2005