1. VAS in Telecoms Space Focus on SMS-Based Services

2. What is Value Added Service (VAS) industry term for non-core services – i.e. all services beyond standard voice calls and text messages. ▫SMS on Premium Rated Short codes ▫IVR - Interactive Voice Recognition ▫USSD – Unstructured Supplementary Service Data

3. SMS / SHORT-CODES TECHNOLOGY - The Past Started in 2001 with MTN Purely for the rich (just as GSM was) Few VAS Companies (3) Few VAS Services Purely services for low-end phones

4. SMS / SHORT-CODES TECHNOLOGY - The Present 120,506,771 connected Mobile lines as at April 2012 Many Services – a witness? Emerging Opportunities on high-end phones Many VAS Company (50 - Stiffer Competition) Stronger operators’ tightening rope Tighter Regulations

5. Today's practical use of this technology – Value Add Information Dissemination ▫News, job alerts, Entertainment ▫Jokes, Radio Shoutouts, TV Shows, Music download, Services ▫Property sell/buy, DSTV activation, ▫Drug Confirmation, etc, Education ▫Word Meaning, Quotes Personalisation ▫RBT, Ringtones, Wallpapers, themes Promotions and Marketing Open&Win etc Phone Book backup, Savemycontacts, Vehicle Tracking Systems,

6. How it all Connects

7. How money is made… MO ▫You initiate the request and gets billed MT The billing is done on delivery MO vs. MT Billing REVENUE Share Model On the average -> 70:30 in favour of telcos.

8. Technical Tools for VAS SMPP Tools: ▫Open SMPP – Free Java Based ▫Kannel – Free, Linux Based ▫SMPPBox – Free Version Available ▫etc Programming Tools ▫Any programming language ▫Mobile Apps Development Tools  Android, Blackberry, Windows Mobile

9. Sample SMPP Profile #--------------------------------------------- # GROUP: SMSC group = smsc smsc-id = SMSCConnection_1 smsc = smpp host=196.127.99.5 port = 2020 transceiver-mode = true smsc-username = ttx smsc-password = t33t11Ex system-type = CMT source-addr-ton = 0 source-addr-npi = 1 dest-addr-ton = 0 dest-addr-npi = 1

10. SMS / SHORT-CODES TECHNOLOGY - The Future For the thinkers Location Based Services Mobile Music/Games/Video download will increase with better bandwidth Mobile Commerce will grow with the adoption of mobile money. ▫Relieve from the Big Bros Telco Widening market for on-device mobile apps SMS-to-Applications More space in the ‘long tail’ for SMS/IVR products Aggregations for new entrants More interests by MNOs and their allies ▫Versus NCC’s response on policies and regulations

11. SMS / SHORT-CODES TECHNOLOGY - The Future - Midterm For the thinkers Location Based Services Mobile Music/Games/Video download will increase with better bandwidth Mobile Commerce will grow with the adoption of mobile money. ▫Relieve from the Big Bros Telco Widening market for on-device mobile apps More space in the ‘long tail’ for SMS/IVR products Aggregations for new entrants More interests by MNOs and their allies ▫Versus NCC’s response on policies and regulations

12. Mobile operators will lose voice services to mobile platforms mobile web becomes the platform for the next generation of technology innovation and investment Mobile operators becomes ‘bandwidth seller’ SMS / SHORT-CODES TECHNOLOGY - The Future – “Longterm” – 7-10years

13. Practical "Can-dos" to become skillful Think VAS Products – Adding Value Learn and play with SMPP Clients and Servers ▫Start from reading SMPP Protocol Specification Learn and be very good in at least a programming language. Pursue Industrial Training in a VAS Company

14. Practicals – Let’s see how messages come in How services are configured