1. The Handset Opportunities Mike van der Wallen Corporate Vice President, Head of EMEA Sony Ericsson Mobile Communications November 21, 2002

2. Evolution of consumer needs Offerings to meet market demands The new roles of operators, handset suppliers and content partners

3. Thousand faces of a mobile phone

4. Market shift Development of consumer needs Out of the box experience Easy to use Share the moment Get entertained Be connected everywhere Making life easier Personalisation One single device

5. Market shift Market development Consumer with his needs as the centre point From technology push to consumer benefit pull From voice centric to broad usage The mobile device as your help in all situations

6. Market shift Handset market situation Source: MDA 2002:2 87% 13%

7. New services and possibilities will drive the market Wide variety of suitable products and right business model needed

8. Change the consumer proposition Mobile Integrated Business Model Stimulate service take-up with exciting content Enable operators to deliver new revenue-generating applications Launch integrated portfolio of attractive and competitive products

9. Change the consumer proposition First Phase – Market Development Product & application availability drives new user behaviour Imaging Entertainment Connectivity

10. Change the consumer proposition Next Phase – Market Penetration Content & services growth drives demand for bandwidth and product development Content & services growth drives demand for bandwidth and product development

11. Change the consumer proposition Or to put it another way …. First : get consumers using cars and appreciating the benefits Then : respond to their demands for faster cars and wider roads Plus :show the value of advanced technology (e.g. ABS brakes)

12. Change the consumer proposition Perspectives from another industry “Don’t worry – there’s a FedEx for that” “Guaranteed delivery in 210 countries” “647 aircraft and 45,000 vehicles”

13. Change the consumer proposition Driving New User Behaviour – Creating Demand

14. Change the consumer proposition Three Applications Focus Areas Enablers Bearers MMSCameraJavaBrowserDRMBluetooth WAP GPRS ImagingEntertainmentConnectivity

15. Two typical consumer scenarios 1. Share the moment - Instant Imaging

16. Consumer proposition example: Instant emotions available at any time Capture / Edit / Send MMS Email WAP View Store

17. Two typical consumer scenarios 2. Get entertained while waiting

18. The consumer needs to know about the opportunities Show clear examples

19. Demonstrate the USP in store

20. A new partnership model Stimulate consumer demand The handset supplier as appetizer and facilitator Embedded Games Great games available “out of the box” Downloadable Games A few more “teasers” available from handset supplier or operator Downloadable Games Premier games available from operator / SP

21. A new partnership model Importance of partnerships Partnerships are crucial to stimulate consumer uptake Open standards, not limited to one solution

22. A new partnership model Content partner options

23. A new partnership model Handset suppliers Content Providers Provide content Provide products 3-party WIN-WIN agreement 3-party WIN-WIN agreement Operators

24. Handset Suppliers Content Providers Operators Entertainment Connectivity Imaging Drive the market together Change the consumer proposition

25. The Handset Opportunities