Obstacles and Opportunities in Commercialization

IEEE

Burnaby, BC

19 November, 2010

© 2008-2010 Wavefront™ 1

+ Wireless Market Overview and Opportunities— Global Overview

— Canada/USA Market

— British Columbia Market

— Key Industry Trends

+ Obstacles to Developing Wireless Solutions— Market Feasibility Study

— Distribution Model

— Which OS Platform

— Testing, Usability, Legal

+ How does Wavefront Help?+ Other Resources Available

— Universities

— BCTIA, DigiBC, Centre4Growth, Acetech…

— DFAIT, EDC, BDC, NSERC, SRED…

Agenda

© 2008-2010 Wavefront™2

Mobile Connections By Region

© 2008-2010 Wavefront™3

Source: Mobile Voice and Data Forecast Pack: 2010–15 © OVUM 2010

Total Global Connections: 5.3 billion (2010)

Global Mobile Revenues

© 2008-2010 Wavefront™4

Source: Mobile Voice and Data Forecast Pack: 2010–15 © OVUM 2010

Total Global Revenue: $906 billion (2010)

Top 5 Mobile Operators

© 2008-2010 Wavefront™5

Source: Data taken from company reports

Metric Canada USA MexicoMobile Subscribers

24,004,000 298,502,000 84,720,000

Mobile Penetration

71% 96% 78%

# of Major Mobile Operators

3 4 4

Network Technology

GSM & CDMA

GSM & CDMA

GSM & CDMA

ARPU $649 $595 $161

Prepaid 21% 22% 86%

Source: Mobile Regional and Country Forecast Pack: 2010–15 © OVUM 2010

Canada / USA / MexicoWireless Markets

Average Revenues

© 2008-2010 Wavefront™7

Source: Mobile Regional and Country Forecast Pack: 2010–15 © OVUM 2010

Canada/US Carrier Market Share

© 2008-2010 Wavefront™8

Source: CWTA wireless facts and figures 2010Source: Strategy Analytics – Based on company reports

Canada/US Handsets By Manufacturer

© 2008-2010 Wavefront™9

Source: comScore MobiLensDoes not include Mexico

© 2008-2010 Wavefront™10

British Columbia

+ ICT British Columbia Sector– 7,244 companies

– Employing >52,000 people

– Generating >$11.5B in revenues

+ Wireless Association

+ Accelerators

+ Key Wireless/New Media Companies

Opportunities

© 2008-2010 Wavefront™11

+Key Trends— Smart Phone Growth

— Location Based Services

— Machine to Machine Growth

— Next Generation Networks

— Mobile Commerce

North America: Smartphone Market

© 2008-2010 Wavefront™12

Source: Smartphone forecast 2009–15 © OVUM 2010

+Downloaded number of apps to go from 7 billion in 2009 to 50 billion by 2012[1]

+Mobile apps to be a $17.5 billion market by 2012

[2]

+Apple iPad sales have hit 3 million mark within 80 days with already 11,000 apps[2]

Mobile Applications

© 2008-2010 Wavefront™13

Sources: [1]Steve Jobs at Apple WWDC June 2010, [2]Chetan Sharma Consulting

+Directions and route finding

+Location based search

+Location based advertising

+Tracking people and assets

+Augmented reality

Location Based Services

© 2008-2010 Wavefront™14

Ericsson estimates 50B devices by 2020

Machine to Machine Growth (M2M)

© 2008-2010 Wavefront™15Source: Ericsson Vision 2020

© 2008-2010 Wavefront™16

Next Generation Networks

+ 2G (GPRS/EDGE/CDMA)– <300 kb/s

+ 3G (UMTS/EV-DO)– 384 kb/s – 2 Mb/s

+ 3.5G (HSPA)– 3.6 – 7.2 Mb/s

+ 3.5G (HSPA+)– ~21 Mb/s

+ 4G (LTE, WiMax)– 20 Mb/s – 1 Gbps

© 2008-2010 Wavefront™17

Next Generation Networks

Source: Mobile Technology Split Forecast Pack: 2010–15 © OVUM 2010

+Mobile Commerce— m-commerce began in 1997 with a mobile-capable Coca

Cola vending machine

— Now includes shopping, tickets, payments, banking

— Much of m-commerce is done now in Japan currently – changing as it catches on globally

— m-commerce will reach $150 billion in 20121

— 1 in 5 U.S. adult mobile phone owners have used their cell phone for m-commerce in the past month2

Opportunities

© 2008-2010 Wavefront™18

Source: 1 Mobile Payments Market Forecast © OVUM 2010 | 2 May 2010 U.S. Mobile Consumer Briefing, MMA

Top Things to Consider When Developing a Mobile Solution

© 2008-2010 Wavefront™ 19

Obstacles

© 2008-2010 Wavefront™20

+Commercialization Obstacles— Market understanding

— Market connections

— Usability

— Testing

— Money/people/stuff

+Has it been done before?

+What is different about your solution?

+What is the problem you are trying to solve?

+Have you talked to live potential customers?

+Available market or size of the problem?

+How much investment to get to the first sale?

+How much technical risk?

Market Feasibility Study

© 2008-2010 Wavefront™21

+Distribution Models

— Application Stores

— Direct engagement with mobile operators

— Direct to customers

Distribution

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+Monetization

— Paid download

— Freemium

— Advertising supported

— In-application purchases

— Brand supported

Distribution – Application Stores

© 2008-2010 Wavefront™23

+#1 issue for selling through app stores— Currently 295 different “calculators” on iPhone App Store

+How to improve discoverability?— Blogs, press release, app review sites

— Being featured

— Viral campaign: Contests, YouTube video

— New app releases/updates

— Leveraging and building own social communities/fan sites: OpenFeint, Apple Game Kit

Distribution – Discoverability

© 2008-2010 Wavefront™24

+ How To Engage With Mobile Operators— Understand their market and how your solution fits

— Understand where your solution fits into:

+ Network

+ Device

+ Consumer

+ Enterprise

— Understand what drives marketing departments versus sales departments

— Utilize developer programs of mobile operators, platform provider AND device manufacturers

Distribution – Mobile Operators

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+B2B+Web+Sales Representatives

Distribution – Direct Sales

© 2008-2010 Wavefront™26

Which Platform?

© 2008-2010 Wavefront™27

Source: Canalys estimates © Canalys 2010Data includes Mexico

Which Platform?

© 2008-2010 Wavefront™28

Source: Canalys estimates © Canalys 2010Data includes Mexico

© 2008-2010 Wavefront™29

Which Platform?

+ Native App– Native apps are platform specific

+ Custom UIs+ Access to device hardware

(example: accelerometer)+ “Offline” ability+ Higher adoption+ Longer User Sessions

Android BlackBerry OS iOS Symbian webOS Windows MobileCompany Google RIM Apple Nokia HP/Palm MicrosoftHandsets (World) 8.5M 20M-plus 42M 50M 2.5M 30MHandsets (NA) 3M 18M 10M 1M 2M 6MTablets? Coming Rumoured iPad Unknown Likely Yes, then cancelledGrowth Very High Steady Steady+ Slow Uncertain SteadyIssues Fragmentation Approval Approval Growth Uncertain Future Pending refresh

+ Or Web App?– Web apps are platform agnostic

+ Develop once for all devices+ No approval process+ Higher “stickiness”+ Lower maintenance costs+ Shorter development cycle

Source: GigaOM Pro – App Developer’s Guide To Choosing A Mobile Platform

+ Software— Emulators— Remote access to devices for testing— Hands on testing— Testers for hire (mob4hire)— What carriers look for

+ Hardware (embedded modules)— SIM electrical (pre-screen if possible)— RF performance (mainly for embedded antennas)

+ Total Radiated Power/Total Radiated Sensitivity - (TRP/TRS)

+ Self Interference— FCC/IC/CE Specific Absorption Rate (SAR) testing

Testing Your Solution

© 2008-2010 Wavefront™30

© 2008-2010 Wavefront™31

Usability

+ A usable design is:– Learnable– Efficient– Memorable– Simple– Intuitive– Visible– Consistent

+ A usable design:– Prevents the user from making

a mistake– Is always in control by the user– Is never in control of the user

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+Things to consider— NDA— Patent protection— User agreements— Privacy protection

Always seek professional advice

Legal

© 2008-2010 Wavefront™32

How does Wavefront help?

© 2008-2010 Wavefront™ 33

About Wavefront

© 2008-2010 Wavefront™34

Wavefront is a commercialization centre based in Vancouver

accelerating the growth of Canadian wireless and new media

development companies. Wavefront is a non-profit

organization established with seed funding from BC

Provincial, Federal Governments and private companies.

Wavefront improves the speed-to-market and delivery of

mobile applications and devices by providing emerging

companies with a single point of access to shared

commercialization services.

Wavefront also helps facilitate international companies that

want to make Vancouver their jumping off point for entry into

the North America wireless market.

Accelerated Commercialization

© 2008-2010 Wavefront™35

Waveguide™

Business Seminars

Waveguide™

TechnicalWorkshops

Incubation Services

BusinessAdvisoryServices

Information

Resources

Handset Test

Services

Advanced TestingServices

Global Connectio

ns

© 2008-2010 Wavefront™

Mobile Industry Advisory Services

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+ Business Advisory Services— Sales and Distribution Strategy— Marketing and Public Relations— How to Access Funding— Developer Program Management— Demonstration Facilities— Connections to Mobile Ecosystem Players

+ Information Resources— Appstore Wiki— Device Database— Market Research— Competitive Analysis

© 2008-2010 Wavefront™

Testing & Accreditation Services

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+ Handset Test Services

— Wavefront Handset

Library 350+ phones

connected to Canadian

mobile operators

— Remote Handset Testing

1000+ handsets

connected to live global

networks

— Mobile Crowd Testing &

Marketing Research

© 2008-2010 Wavefront™

Testing & Accreditation Services

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+ Advanced Testing Services— Access to live European 2G/3G

network at Orange Developer Centre in Vancouver

— Access to carrier-grade HSPA+ test network

— Advanced test equipment for complex network simulation & RF testing

— State-of-the-art usability lab & services

— SAR RF & EMC Compliance Testing

— Access to highly skilled wireless & data engineering teams

© 2008-2010 Wavefront™

Global Market Linkages

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Agreements with International Wireless Clusters

+ Cambridge Wireless (UK)

+ PACA Mobile (France)

+ Finnmob (Finland)

+ Israeli Mobile Assoc (Israel)

+ Swedish Mobile Assoc (Sweden)

+ MCPC (Japan)

+ HKWDC (Hong Kong)

+ AIMIA (Australia)

+ Mobiquest (Singapore)

+ Silicon Valley Telecom Council (US)

Resources

© 2008-2010 Wavefront™40

+Who Else can Help in BC?— Academia:

+ UBC, SFU, BCIT, Uvic…

— Associations:

+ BCTIA, DigiBC, Centre4Growth, Acetech…

— Government:

+ DFAIT, EDC, BDC, NSERC, SRED…

Thank You

Brad LoweCommunity Engagement

ManagerTel: +1.778.331.2001

E-mail: brad.lowe@wavefrontac.com© 2008-2010 Wavefront™ 41