Paul ReddickVice President Business Development, Strategy & PlanningApril 20, 2005

Coming Soon … To a Mobile Phone Near You

2

Society

•Desire to be un-tethered

•Assumed access to “the world”

•Information/opportunity overload

Wireless Industry

•Wireless adoption

•Network bandwidth

•Phone capabilities

•Application/service development

Anywhere anytime access toknow, reach, transact and play

A need to relate all to self – Mobilize, personalize, localize

Macro trends

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• Location based services– The ability for the phone/user/network to know

the location of the device

• Near field communications

– The ability for the phone to be able to communicate with nearby objects

• Mobile payments

– The ability for the customer to authorize payments from the phone

Important service developments

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More than a “remote control for life”

Entertainment

PicturesMusicVideosGaming

Communications

VoiceEmail

IMChat

Information

Clock/watchInternet access

Contact list

Transactions

SchedulingPurchases

It’s personal.

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Local relevance- Multiplayer community games

- Locally generated content

- Geographically licensed content

U.S. Mobile Revenue$ millions

2004 2008 2004 20082004 2008

Mobile Games Mobile Music Mobile Video

204

1,356

316

1,402

53

3,234

Sources: InstatMDR (games & video), IDC (music)

Mobile Entertainment

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• Community Networks– Importance of social communities – Mobile communities/peers (e.g. Teens, Hispanic, Alternative,

Faith-based)– Builds strong loyalty, and enables viral word-of-mouth and

peer recommendations for products and services

Local relevance- Location filters on IM buddy lists and chat

- Friend finders

- Push to Talk to “areas”

- Mobile blogs

Communities and Communications

craigslist

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Mobile Information

Sources: http://www.wavemarket.com/products.html)

Local relevance– Mobile local search– Navigation / Mapping – Mobile yellow pages– Traffic / Weather Alerts– Points-of-interest– Events (Entertainment / Sports)

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Mobile Transactions – Targeted Advertising

Local relevance– Advertising pull (e.g. short codes)– VERY targeted advertising push– Movie ticket purchased while en route– Fast food purchased at POS

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• Tremendous capability coming “on-line”• Great utility for enhancing the local

experience for end users• Great opportunity for stimulating local

commerce for businesses, three to start with:– Integration of short codes into off-line

advertising– Paid local search for mobile– Embedded advertising into mobile multimedia

Summary

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?

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Mobile Payment ScenariosV

irtu

alP

hys

ical

Over the Air Proximity

Payment flow

Product flow

Existing merchant card payment process

Payment flow

Product flow

Virtual Lottery ticket purchased at convenience store

Food purchased from fast food merchantT-shirt purchased OTA and delivered home or movie ticket purchased in advance en route to theater.

Ring tone delivered to handset

Paym

ent flowProduct flow

Payment flow

Product flow

Existing merchant card payment process

Merchant

Merchant

Merchant

Merchant

OTA initiated via RFID poster

www.lordoftherings.com/ringtone