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September 2005 September 2005

ConfidentialConfidential

Mobile Location and Navigation:Mobile Location and Navigation:

Is Now the Time for Mass Market Success?Is Now the Time for Mass Market Success?

Ronen Soffer, Executive VP, TelmapRonen Soffer, Executive VP, Telmap

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The (Real) Mission

To bring To bring (Mobile Mapping, Content and)(Mobile Mapping, Content and)

Navigation to Mass Market Navigation to Mass Market

UsersUsers

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What it Takes

Understanding Understanding NavigationNavigation

Understanding Understanding MapsMaps and and ContentContent

Understanding Understanding PhonesPhones

Understanding Users Understanding Users And…And…

Understanding the Understanding the BusinessBusiness

People

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Navigation

Is mission-critical and real time!Is mission-critical and real time!

Used in a moving carUsed in a moving car

No “expert users”No “expert users”

Used to run on RTOS onlyUsed to run on RTOS only

Relies on location sensor/s (…)Relies on location sensor/s (…)

HMI hungry (audio, display etc)HMI hungry (audio, display etc)

Did anyone say “network”?!...Did anyone say “network”?!...

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And So We Must Have

Correct routesCorrect routes

Intuitive driving instructionsIntuitive driving instructions

Optimal map-matchingOptimal map-matching

Professional guidanceProfessional guidance

Data delivery Data delivery FormatFormat

MethodologyMethodology

CompressionCompression

((The Technology to Enable)The Technology to Enable)

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Maps and Content

Maps for orientation and content, vs.Maps for orientation and content, vs.

Maps for NavigationMaps for Navigation

Content isContent is A destination and its attributesA destination and its attributes

A parameter for route to takeA parameter for route to take

Something on route to…Something on route to…

Static and dynamicStatic and dynamic

Owned, managed and branded by ?Owned, managed and branded by ?

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It’s a Phone…

Limited display, audioLimited display, audio

Limited CPU and memory, storageLimited CPU and memory, storage

Networks, platforms and OSsNetworks, platforms and OSs

But then again:But then again:

It has data, plus messaging and voiceIt has data, plus messaging and voice

It can be carried outside the carIt can be carried outside the car

Everybody has one! (but which one?...)Everybody has one! (but which one?...)

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People Need

Maps and guides made Maps and guides made digitaldigital

and and mobilemobile

Content to be Content to be freshfresh and and richrich

Navigation to be Navigation to be professionalprofessional A usable application A usable application (Applications?...)(Applications?...)

SimpleSimple distribution, activation distribution, activation

A A good price / modelgood price / model

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Business / Value Chain Aspects

Single deviceSingle device Medium-range phonesMedium-range phones Education and marketingEducation and marketing Channels (retail, telco, OTA)Channels (retail, telco, OTA) Branding (white vs. own)Branding (white vs. own) Data costsData costs What the carrier wants (and doesn’t) What the carrier wants (and doesn’t) ……

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Case Study: MIRS

iDEN - Nextel International - IsraeliDEN - Nextel International - Israel

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Bottom Line

Penetration and UsagePenetration and Usage

Subscriber AcquisitionSubscriber Acquisition

Business ImpactBusiness Impact ARPUARPU

ChurnChurn

Net addsNet adds

Brand nameBrand name

Navigations Per User Per Month

-2

0

2

4

6

8

10

Jul. Aug. Aep. Oct. Nov. Dec. Jan.

-

10,000

20,000

30,000

40,000

50,000

Jul. Aug. Aep. Oct. Nov. Dec. Jan.

Telmap Navigator Users

Navigator Navigator LaunchLaunch

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Usage

Penetration and UsagePenetration and Usage

54.2% Value Active* 54.2% Value Active* Above 40% remain value active after one quarterAbove 40% remain value active after one quarter

New User ActivityNew User Activity 7.5 sessions with 36 transactions per month7.5 sessions with 36 transactions per month

Lasting subscriber (at least one quarter)Lasting subscriber (at least one quarter) 7.9 Navigations per user per month (14 transactions)7.9 Navigations per user per month (14 transactions)

User during exploration phase (1User during exploration phase (1stst month) month) Doing 4 times more POIDoing 4 times more POI

3 times more my location3 times more my location

64% more navigations64% more navigations

* Obtaining significant value

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Bottom Line

Penetration and UsagePenetration and Usage

Subscriber AcquisitionSubscriber Acquisition

Business ImpactBusiness Impact ARPUARPU

ChurnChurn

Net addsNet adds

Brand nameBrand name

-

2,000

4,000

6,000

8,000

10,000

12,000

Jul. Aug. Aep. Oct. Nov. Dec. Jan.

Mirs Net Adds

Navigator Navigator LaunchLaunch

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The Operator’s Perspective

““Our Success is Largely due to the Our Success is Largely due to the

partnership formed between Mirs and partnership formed between Mirs and

Telmap”Telmap”

Abrasha Burstyn, MIRS CEOAbrasha Burstyn, MIRS CEO

Business ImpactBusiness Impact ARPUARPU – 4.9% Increase in ARPU (network wide) – 4.9% Increase in ARPU (network wide)

ChurnChurn – 87% Decline in Churn amongst Navigator users – 87% Decline in Churn amongst Navigator users

Net AddsNet Adds – Lion Share of new subscribers are attributed to – Lion Share of new subscribers are attributed to

Navigation offeringNavigation offering

Brand NameBrand Name – Most Loveable ads, Best GPS, Technology – Most Loveable ads, Best GPS, Technology

Pioneer, Best Business Solutions, GPS for EveryonePioneer, Best Business Solutions, GPS for Everyone

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The Users

Trust/ReliabilityTrust/Reliability

RelevancyRelevancy

RecommendationsRecommendations

SatisfactionSatisfaction

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The Users

RelevancyRelevancy

“Navat Koli” is the Telmap Navigator branded name

Which 3G Service?

Use GPS in 'Navat koli' ,

61.3%

All / none, 5.7%

Don’t know, 0.7%

Video confrence,

17.7%

Ringtones, 3.7%

watch TV, 11.0%

61.3%Would like to use “Navat Koli”

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The Users

SatisfactionSatisfaction

“Navat Koli” is the Telmap Navigator branded name

25.7% 25.0%

19.3%

10.3%

17.0%

2.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Verysatisfied

Satisfied Somewhatsatisfied

Dissatisfied Verydissatisfied

Don't know

70%Are Satisfied

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31.7% 30.7%

10.0% 10.3%15.7%

1.7%

0.0%

10.0%

20.0%

30.0%

40.0%

Definitely Yes Probably Probablynot

Definitelynot

Don't know

Would You Recommend "Navat Koli" to a Friend?

72.4%Would Recommend

The Users

RecommendationsRecommendations

“Navat Koli” is the Telmap Navigator branded name

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The Users

Trust/ReliabilityTrust/Reliability

“Navat Koli” is the Telmap Navigator branded name

23.3%

35.7%

17.3%

7.0%10.3%

6.3%

0.0%

5.0%10.0%

15.0%

20.0%25.0%

30.0%

35.0%40.0%

Completlyreliable

VeryReliable

QuiteReliable

Not veryReliable

Notreliable at

all

Don'tknow

76.3%Find it reliable

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The Project

Turn Key SolutionTurn Key Solution Hosted, Content aggregate, operated by TelmapHosted, Content aggregate, operated by Telmap

Pre-installed on devicesPre-installed on devices Motorola i830, i860, i850Motorola i830, i860, i850

Efficient MarketingEfficient Marketing Simple Audio-Visual NavigationSimple Audio-Visual Navigation Flat Rate pricing Flat Rate pricing

€€3 per month (no data charges)3 per month (no data charges) Pricable options (speed cam, traffic etc.)Pricable options (speed cam, traffic etc.)

Major Campaign (TV, Papers, etc.)Major Campaign (TV, Papers, etc.) Linked Brand Name to GPS to everyoneLinked Brand Name to GPS to everyone

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Summary

Most Valuable Mobile Navigation SolutionMost Valuable Mobile Navigation Solution Focus on Mobile Users Tailored for Focus on Mobile Users Tailored for

OperatorsOperators Dramatic Business Impact:Dramatic Business Impact:

Penetration, Usage, SatisfactionPenetration, Usage, Satisfaction

Ready Ready Hosted Solution and Available HandsetsHosted Solution and Available Handsets Service Business ModelService Business Model

Simpler, Easier, BetterSimpler, Easier, Better

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September 2005 September 2005

ConfidentialConfidential

Thank you!Thank you!