1. £ € ¥ € @ @ $ From Dumb Terminals to Smart Clients The Evolution of mCommerce mCommerce on Legacy and Future Messaging Systems mCommerce on Legacy and Future Messaging Systems Patrick O’Callaghan Vice President pocallaghan@network365.com All trademarks acknowledged

2. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € That’s not how it works! A Note from the organizers – Please keep your mobile phones switched on! Please tell me who won. (I have to mail them the prize!) Of course, we rely on the technology….

3. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € m Zone™ from Network365 Allows operators and service providers to host on-line shopping Commerce over WAP, web and Messaging Users have simple, secure access to a range of products and services Devices –Phones, PDAs, Pocket PCs, pagers, palmtops Protocols –WAP, Web, Pocket Web, i-mode, SMS, USSD Networks –GSM, PDC, TDMA –  GPRS, W-CDMA, cdma2000 “ For shopping the [ m Zone] system is the simple s t and mo s t attractive offering ” The Sunday Business Post

4. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € SmartHub for Messaging Corporate Message Board SMS Chat Server Personal Distribution Lists Information Services User Profile Self- Care

5. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Marketing Marketing can turn customers’ needs into profit But “Customer Expectation Inflation” forces you to keep improving And shareholder demands require that you trim costs Your challenge is to differentiate yourself “ New business models, not technology will drive wireless growth ”. Forrester Research

6. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Trading Trade is not new Distance trading is not new Key factors: –quality of supply –extent of demand Selling over mobile channels is like selling by any other medium “ Everything is worth what the buyer will pay for it ”. Publius

7. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Elements of Strategy Know your customers And keep them! Attract customers from the competition Be innovative and surprise them Build loyalty Be the leader: decide to make your mobile offering the best show in town “ e-Business is about business strategy ”. Enterprise Ireland

8. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Back to the Future The non graphical web was quickly superseded in the mass market “The short life of Web TV” Mobile communications will combine personality with easy access Future messages will be richer and more attractive Be prepared for Change “It’s the medium that’s changed - not the business ”. SFA

9. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Using SMS for Commerce Customer opts in for promotions Merchant initiates transaction Customer buys with a single return message or ignores the offer Works well in congested areas and on 2G networks 3G-proof “Since earliest times, people have congregated in the market place” The Irish Time s

10. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Extending mCommerce with Cell Broadcast Still opt-in Interfaces to OTAP Many channels available Instant location element Excellent for large populations and concentrations Also works for promotions, competitions, chat and information services

11. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Promotion over SMS Has already generated peaks for Valentines day, Mother’s Day U2 Allocation sold out in under 20 minutes Works best when promotion is timely and appropriate Helps close the deal

12. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € The Applications Challenge Increased functionality and speed of service Performance bar raised by better infrastructure Customer expectations increase Content, language and currency will all be local Mobile businesses will know more about customers “Network365 are enabling operators to maximise the value of their relationship with the consumer." Sofia Gacham UBS Warburg

13. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € The Operator’s Challenge Generating interest Encouraging local and varied content Holding Subscriber interest Giving satisfaction Maintaining investment Widening revenue stream Maintaining margins “ Mobile c ommerce will increase traffic over ope r ator networks, strengthen customer relationships, and reduce churn” Lehman Brothers

14. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Alternative Business Models Operators charge content providers for access to their channel Content providers charge a subscription for the service NTT DoCoMo is unique in becoming a clearinghouse for these subscriptions Integration to billing systems as an electronic purse Differential charging for messages “ The survivors are not necessarily the biggest, nor the brightest, but the most adaptable ” Charles Darwin

15. $ ¥ Copyright©1999-2001 Network365/ network365.com @ € Wireless Messaging There may be no killer apps, but there are winning apps Messaging can be an application in itself or a method of deploying applications Be pragmatic – you do not have to wait for the ultimate infrastructure “ I did not delay” Alexander the Great

16. £ € ¥ € @ @ $ Thank You network365.com View our on-line demonstration at: network365.com/demos.htm Network365 Ltd, Glencormack Business Park, Kilmacanogue, Co. Wicklow, Ireland. Tel: +353 1 276 4500, Fax: +353 1 276 4533. info@network365.com