Paul Reddick Vice President Business Development, Strategy & Planning April 20, 2005 Coming Soon … To a Mobile Phone Near You

2 Society Desire to be un-tethered Assumed access to “the world” Information/opportunity overload Wireless Industry Wireless adoption Network bandwidth Phone capabilities Application/service development Anywhere anytime access to know, reach, transact and play A need to relate all to self – Mobilize, personalize, localize Macro trends

3 Location based services – The ability for the phone/user/network to know the location of the device Near field communications – The ability for the phone to be able to communicate with nearby objects Mobile payments – The ability for the customer to authorize payments from the phone Important service developments

4 More than a “remote control for life” Entertainment Pictures Music Videos Gaming Communications Voice IM Chat Information Clock/watch Internet access Contact list Transactions Scheduling Purchases It’s personal.

5 Local relevance  Multiplayer community games  Locally generated content  Geographically licensed content U.S. Mobile Revenue $ millions Mobile GamesMobile MusicMobile Video 204 1, , ,234 Sources: InstatMDR (games & video), IDC (music) Mobile Entertainment

6 Community Networks – Importance of social communities – Mobile communities/peers (e.g. Teens, Hispanic, Alternative, Faith- based) – Builds strong loyalty, and enables viral word-of-mouth and peer recommendations for products and services Local relevance  Location filters on IM buddy lists and chat  Friend finders  Push to Talk to “areas”  Mobile blogs Communities and Communications craigslist

7 Mobile Information Sources: Local relevance – Mobile local search – Navigation / Mapping – Mobile yellow pages – Traffic / Weather Alerts – Points-of-interest – Events (Entertainment / Sports)

8 Mobile Transactions – Targeted Advertising Local relevance – Advertising pull (e.g. short codes) – VERY targeted advertising push – Movie ticket purchased while en route – Fast food purchased at POS

9 Tremendous capability coming “on-line” Great utility for enhancing the local experience for end users Great opportunity for stimulating local commerce for businesses, three to start with: – Integration of short codes into off-line advertising – Paid local search for mobile – Embedded advertising into mobile multimedia Summary

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11 Mobile Payment Scenarios Virtual Physical Over the AirProximity Payment flow Product flow Existing merchant card payment process Payment flow Product flow Virtual Lottery ticket purchased at convenience store Food purchased from fast food merchant T-shirt purchased OTA and delivered home or movie ticket purchased in advance en route to theater. Ring tone delivered to handset Payment flow Product flow Payment flow Product flow Existing merchant card payment process Merchant OTA initiated via RFID poster