1. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20001 Wireless Internet: Market Trends and Strategies Regina Wong Consultant ARC Group - Bradstone Brook - Shalford- Surrey - GU4 8HR - UK Tel: +44 1483 57 15 89 - Fax: +44 1483 57 13 27 - www.the-arc-group.com Analysis. Research. Consultancy GSM Congress Asia Pacific 2000, Singapore

2. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20002 ARC Group l A subsidiary of the Informa Telecoms Group l Seek to help our clients identify, assess and profit from business opportunities in the communications sector, with a strong focus in the areas of mobile communications, mobile internet and digital broadcasting l Products: –Strategic Research Reports eg. Wireless Internet, Content & Applications, Future Mobile Handsets –Consulting –e-briefs (Telecoms conference summaries) –Industry Surveys eg. WAP, Bluetooth

3. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20003 Agenda l Market Size and Scope: growth and usage l Market Positioning and Strategies l Revenue and Pricing Models l Conclusion

4. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20004 Market Size and Scope How Many? How Fast?

5. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20005 Mobile Data Users Worldwide Mobile data usage led by Western Europe

6. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20006 Mobile Internet Applications Usage

7. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20007 Mobile Subscribers by Technology

8. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20008 Market Positioning & Strategies What? How? With Whom?

9. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 20009 The evolving industry value chain The traditional telecoms value chain The current mobile internet value chain Traditional Portals/ Aggregators Operators and ISPs VendorsEnd-users Content Providers Application Service Providers Content Providers Application Service Providers Enabling Technologies Mobile Portals/ Aggregators Enabling Technologies Mobile Service Providers Vendors Market share & Revenues End-users

10. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200010 Partnerships Access Operators Service Providers MVNOs Mobile ISPs Vendors Network Mobile terminals Application Providers Aggregators Portals Middleware and Platform providers Players’ bargaining position in partnership reflected by the size of their bubbles Content Providers New value chain Customer loyalty and generation Rapid market deployment

11. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200011 Issues to consider l Market environment- needs, tastes, values, target market l Position along the value chain l Competitive strategies l Establishing partnerships l Services and information that appeal to consumers l Pricing and revenue generation l Getting the message across to consumers

12. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200012 Segmentation of Terminal Market PHONES Low End Mid Range High End Communicator ORGANISERS PDA HPC PORTABLE COMPUTERS Small Notebook 1998 High bandwidth small screen phone VAS Mobile small screen VAS Mobile medium screen Smartphone/PDA large screen Application specific equipment or terminal with bluetooth Application specific terminal with built-in or plug-in wireless data or voice data module 1999 2001 Time Entry level phone very limited data High bandwidth small screen phone VAS Handsets Multi-sub segments Medium to large screen High end Smartphone Application specific equipment or terminal with bluetooth Application specific terminal with built-in or plug-in wireless data or voice data module Mini notebook with built-in wireless module Bluetooth Enabled 2005

13. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200013 Revenue & Pricing Models Earning the $$$

14. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200014 World wide ARPU by Application WAP Industry Survey 2000: 60 operator respondents

15. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200015 Mobile Data as share of monthly ARPU (in 2000) (WAP Industry Survey June 2000) Number of Operator respondents: 60

16. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200016 Mobile Data as share of monthly ARPU (in 2003) (WAP Industry Survey June 2000) Number of Operator respondents: 60

17. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200017 Two most common revenue models for mobile content provision (WAP Industry Survey June 2000) 2% 9% 19% 15% 16% 13% 11% 15% Free, ad driven Free, sponsor driven Free, operator paid Flat fee access to all svs. Subs. to selected services Volume based usage fee Per transaction charge Other Number of industry respondents: 300

18. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200018 Conclusion l Mobile internet offers service providers new market and revenue opportunities l Keys to maximizing these opportunities –position along value chain –market conditions –getting the message across to consumers l Market inhibitors –terminal design and supply –network capacity –shortcomings of current technology l Change consumers’ perception of the mobile phone

19. Copyright ARC Group 2000 September 2000Regina Wong- GSM Congress Asia Pacific 200019 Latest Report Wireless Internet: Applications, Technology and Market Strategies Worldwide Market and Technology Developments 2000-2005 Publication date: September 2000 Thank You! Regina Wong-Consultant rwong@the-arc-group.com