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Evolution towards Personalized M-Commerce

ServicesJune 21, 2006

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Agenda

• Agenda Redknee Key Facts Operator Market Dynamics Delivering Personalization Personalization Use Case

Multi-Device Support Summary

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Redknee Key Facts

Redknee is a leading global provider of communication

software solutions that enable network operators and

service providers to enhance their delivery of innovative and value creating services

(e.g. mobile commerce, voice, messaging, content, data)

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Drivers of Personalization

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Subscriber Essential Service Attributes

• Successful services embody interrelated user values of:• Conspicuous value

Value and operation of service is immediately appreciated • Profound simplicity

Presentment of only essential controls and information• Self-evidence

Controls are intuitive, context sensitive, and adaptive

Requirement - Improve services per the key user values:• Personal

Tailored to the individual & adaptive

• Localized Information relevant to the subscriber’s current location

• Timely Relevant to the subscriber’s current activities and not delayed so

that it becomes a nuisance or irritant • Actionable

React to and control a service in an intuitive manner

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Segmentation

No Segmentation

Demographic & Contextual

Segmentation

Cost ConsciousMedia Savvy College

Pre-teen Clique

Self-employed

InternationalCompany

Concert/Event

Prepaid

Consumer Postpaid

Business

The Ultimate Goal of Personalization – ‘Demographic of ONE’

Typical Segmentation

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@ homeVoice / Internet / IPTV

In-flightVoice / Internet

@ officeVoice / Corporate Network

WirelessVoice / Multimedia

Wireless Data / Corporate / Personal

Service transparency and rating intelligence spans multiple access technologies

Subscriber is both the focal point and point of control

Key metric is subscriber ‘Mind Share’

Subscriber Centric Perspective on Multiple Access Technologies

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Delivering Personalization

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Value of Personalization

• Personalization is the delivery of context Location / Presence / State Subscriber profile / preference information

• Benefits of Context Increases contextual relevance to subscriber Enables services to adapt to the subscriber’s

behavior or mode of operation Facilitates distillation of information and

increases value to subscriber while minimizing network resources

Creates stickiness and increases mind-share of services enable via operator’s infrastructure

Service differentiation and reduced churn

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Personalization

PERSONALIZATION

Personalization increases service value by transparently tailoring service behaviour to reflect user attributes, state and preferences.

A Personalized transaction is a higher Value transaction

USERPROFILE

HG Member 1

HG Member 1

HG Member 1

‘MACRO’ SERVICE

LOCATION

PRESENCE

PRIVACY

PREFERENCES

DEVICE CAPABILITY

GROUPS /CONTACTS

AGEVERIFICATION

PERSONALIZEDSERVICE

GOOGLE: “Restaurant”

Results: 6,121,233 restaurantsfound

Indian restaurant 200m away. Turn left at Green Street. John is less than 500 metres away. Would you like to call him.

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Current Situation

• Current infrastructure does not enable personalization in an effective or efficient manner

Multiple islands of subscriber data

Duplication of user data with no value added functionality

Difficult to access subscriber information (e.g. via an API)

Increased OPEX costs to manage and maintain subscriber data

Difficult to ensure consistency of the user experience

• Latent and growing demand for personalized services

Multi-media devices entering main-stream

Third Party Applications at edge of network are growing exponentially

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Redknee Perspective on Personalization

• Unified Profile Server Enhances and optimizes the

value of every transaction through relevance and context

Allows for the proactive selection of preferential content

Enforcement of all statutory and subscriber privacy criteria

Protects mission-critical network infrastructure

Supports and monetizes SLA’s to content providers via open-APIs

Aggregation and federation of information cumulatively increases client stickiness

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Role of Personalization in a M-Commerce Environment

• Carriers have a central role in the m-commerce value chain: As a trusted intermediary Support of micro-transactions The provision of value added services and information

Subscriber context and preferences

CSCFGGSN

HSS

Internet

Core Network Infrastructure

IMS Value Chain

SGSN

ServiceDevelopmentEnvironment

Carrier and 3-rd Party Application Developers

Open Object Oriented APIs (CORBA, SOAP-XML)OSA, Parlay, OMA Web Services

Applications (VPN, MultiSIM)

CAMEL P4,IP Multimedia Service Control, or Vendor Specific

Services Include: · Traditional IN Services (Prepaid, VPN, PNS)

· Contextual Services (Location/Presence)

· Community-of-Interest Based Services (multi-player gaming, chat)

· Content Based Services (Applications, Streaming, MP3s)

IntelligentDevices

SIP or pre-SIP TCP-IP

Convergent Real-Time Monetization

Copyright (c) - Redknee

UnifiedProfileServer

Service Rights Management Framework

User Profile and Context Web Services APIs (Presence, Preferences, Terminal Information etc.)

State of subscriber is dynamically used to optimize services in Real-Time

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Personalization Use Case

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Multi-SIM – Solution Overview

• Multi-SIM SolutionSupport of up to six

devices via a single service contract

Simultaneous seamless support of ALL services on ALL devices

Presentment of a single dialable number (MSISDN)

Intuitive and proactive delivery of services (per active device and/or per subscriber profile)

Real-time status and control capabilities

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• Unexpected viral adoption 23% of enterprise 9% of consumer

• Increased market leading ARPU metric

Residential Customers: 27 € /month Business Customers: 43 € /month Multi-SIM Customers: 66 € /month

• Increased usage of data services Residential Customers: 20 % Business Customers: 25 % Multi-SIM Customers: 40 %

Multi-SIM – Subscriber Metrics

0

50000

100000

150000

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8

Forecast Actuals Break-Even

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• Higher Revenue by virtue of higher availability and service / rating transparency

“Multiple devices lead to a higher availability – Multicard customer have 50% more incoming calls than the average O2 customer.”

“With O2 Multicard, customers have at least one device for every occasion. This results in 25% more mobile originated call than the average user has on the O2 network.”

• Greater retention via a truly differentiated service

“O2 Multicard customers get used to have several mobiles available for their convenience. No other operator can currently offer a service as flexible and smart as O2 Multicard.”

Multi-SIM – Operator Perspective

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Conclusion

• Focus on subscriber centric values

• Extend principles of relationship marketing and mass customization to the mobile environment

• Enable a Seamless Subscriber Experience

• Reinforce the position of the Network Operator as an identity provider

• Meet and exceed all applicable privacy considerations

• Market Success is a natural byproduct

• IMS is NOT a prerequisite!

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Redknee HQ2560 Matheson Blvd East, Suite 500

Mississauga, ON L4W 4Y9 Canada

http://www.redknee.com