Wireless Data: A Mature Market? 24th September 2003

Wireless Data Market Today in Belgium >Today’s wireless data market today is driven mostly by SMS, despite the implementation of new protocols and services by the operators >About 9,5 million SMS are exchanged daily between users, representing a market of more than € 400 million per year for the mobile operators >Premium SMS: very high growth  10 million premium SMS in 2001  30 million premium SMS in 2002  80 million premium SMS in 2003, representing about a € 60 million turnover >The premium SMSmarket allowed businesses to start profitable services in the following domains:  Interactive TV/Radio  Chat services  Entertainment services  Marketing services  Micropayments  Content/news services >WAP & MMS services are today marginal

Short Term Evolution >SMS market growth will arrive soon at a maturity stage in the coming 18 months >New technologies and protocols will however maintain the market in the long term, but the killing apps are probably well known today  LBS will be the major improvement in terms of new applications, although coupled with existing apps  MMS will bring along more conviviality and content quality to existing apps  WAP over GPRS will provide a more convenient way to propose the same existing applications >We can say that the stage of maturity business wise, is not far from now >What will dramatically change, however, is the way users will consider their handset

Characterstics of today’s profitable applications >Business model is based on shared revenue between the operators and the intermediaries. MMS and WAP will most probably follow the same scheme. >The average transaction amount is 0,7 € >The profitable apps generate high volumes. >The targeted segment is extremely responsive  Teenagers  Youg adults >Are based on immediate response/result

Key Success Factors >Immediate consumption product >Simplicity of use/easiness of subscription >Take advantage of the impulsive reaction >Large marketing coverage  TV & Radio are the most effective media to generate immediate response by the end-user  Print is OK for entertainment and news services  Web advertising has not demonstrated a great efficiency so far

Case: Interactive TV Call RTL