unplugged. switched on sila communications the leading provider of wireless applications services

unplugged. switched on

Sila Communications

The leading provider of wireless applications services


Sila Communications

A leading wireless data solutions provider

Sila solutions

Market opportunity

Corporate Corporate OverviewOverview


Powerful Asset Base at Formation

• Dominant European provider of wireless financial information services, with over 14,000 customers

AetherAether ReutersReuters

SilaSila

• IFX• $15mm• Technology license• Strategic marketing

relationship

• IFX• $15mm• Technology license• Strategic marketing

relationship

• Futures Pager• $22mm• Content agreement• Strategic marketing

relationship

• Futures Pager• $22mm• Content agreement• Strategic marketing

relationship

60%60% 40%40%

Sila solutions

Sila solutions

Market opportunity

CorporateCorporateOverviewOverview


Unmatched Pedigree

• Aether Systems owns 60%– US-based wireless data specialist with

focus on vertical applications

– Leverage business models, partnerships, technology

• Reuters Group owns 40%– World’s largest news and TV agency

with 10,000 stories/2m words daily in 22 languages

– Financial data from 267 exchanges

– Leverage marketing power, especially with financial institutions

Sila solutions

Sila solutions

Market opportunity



Aether Systems - the story so far

Charles Schwab

Merrill Lynch

Bear Stearns

Reuters

National Discount Brokers

Morgan Stanley Dean Witter

FX

TD Waterhouse

Cyberbills

Office DepotMAC PapersPhysician Sales & ServiceNuCo2Suntory Water GroupResponse Services (AAA)US Postal ServiceHome GrocerWebVanMCI (VANS Group)Supply LineFerguson Enterprises

Becton Dickinson

Wake Forest University

Medtronic

Sonic Innovations

GTE

US DOD

Northrop Grumman

NowSpeed

AT&T

Spyglass

MCI/Worldcom

Seibel Systems

Sony

Coca Cola

Oracle

Papel Giftware

AC Nielson

Extensity

Security Source

Procter & Gamble

Financial Field Sales/Service

Transportation Supply Mgt.

Healthcare Other Industries

WIRELESS CONSUMER SERVICESOmniSky · BellSouth Wireless · Palm.Net · Nextel · Metrocall (Inciscent) · Bell Atlantic Mobile

Technology/Software Products · AIM · Unified Messaging · Wireless Web Delivery· ScoutSync · ScoutWeb · ScoutIT ·ScoutBuilder

Wireless ASP Center · Design/Development · Customer Service · WAP Enterprise · Network Operations Center · Product Fulfillment

Sila solutions

Sila solutions

Market opportunity



Portugal

Spain

France

GermanyNetherlands

UnitedKingdom

Denmark

Norway

Sweden

Finland

BelgiumLuxembourg

Ireland

Data Centre locationServiced countries

Office locationsPlanned Data Centre location

Switzerland

Italy

Estonia

Latvia

Lithuania

Pan-European Presence

London (Group) 93

London 32

Paris 3

Lisbon 1

Madrid 10

Amsterdam 2

Copenhagen 21

Frankfurt 9

Stockholm 4

Oslo 3

Helsinki 2

Singapore 4

Totals 184

CityCity EmployeesEmployees

Sila solutions

Sila solutions

Market opportunity



Server-basedInfrastructure

Embedded Handset Software

Service

Enablers

MobilePortal

Digital

Content

Network Infrastructure

• Paging networks• Wireless LAN• Wireless circuit data• Two-way packet data

Access Devices

• Cellular phones• Two-way pagers• Wireless modems• PDAs• Handheld computers• Laptops

Wireless Networks

• Wireless network

operators

• Voice & data services providers

• WAP services & gateways

• Wireless e-mail gateways

• Transactional integrity

• Security & encryption

• Wireless site design

• Wireless integrationand hosting services

• Handset mobileoperating systems

• SIM-based applications

• Stock quotes, news,directories, weather reports, flights schedules, etc.

• Content aggregation

• M-commerce

Network & EquipmentMiddleware &

EnablersApplications &

Services

The Emerging Value ChainSila Market Opportunity and Position

Sila solutions

Sila solutions

Market Market opportunity opportunity

CorporateOverview


Sila Market OpportunityWireless: from Voice to Data

Wireless Traffic: Voice vs. DataWireless Traffic: Voice vs. Data Wireless Traffic by ApplicationWireless Traffic by Application

1.2952.024

2.8633.935

351

219

1.651

3.064

738390

713

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

1998

1999

2000

2001

2002

2003

Voice Data

Gig

ab

yte

s o

f T

raff

ic/D

ay

Data Traffic on Mobile Networks to Account for 45% of Total Traffic by 2003 (vs. < 2% Today)

0%20%40%60%80%

100%

1998 1999 2000 2001 2002 2003Other

Information BasedLocation Based

VideoMobile Commerce

Web AccessE-Mail Messages + Graphics Attachment

E-Mail Messages + Ordinary File AttachmentE-Mail Messages

SMSVoice

Basic Mobile Data Service Take up Will Lead to Generation of New Services (Information, Communications, Entertainment and Transaction)

Source: Merrill Lynch estimates Source: Merrill Lynch estimates

Sila solutions

Sila solutions

Market Market opportunity opportunity

CorporateOverview


SILA Solutions Focus

1. Outsourcing corporate wireless data solutions– Extending mission critical applications to mobile devices

– Design, implementation, hosting, support

– Future proof approach: network, device, security agnostic

– Initial focus on financial services (e.g. wireless trading)

2. Providing wireless carrier services– Loyalty services as first entry point

– Attract/retain high ARPU – low churn subscribers

– SIM card-based applications

– Portal services and applications

Sila solutions

Sila Sila solutions solutions

Market opportunity

CorporateOverview


2 Mobile operator services

• Mobile operators need to – Attract the best Subscribers - High Value & Loyalty– Reduce new subscriber acquisition cost – Sell more data traffic– Establish continuing loyalty Link to Network

• Using techniques to– Provide continuing incentive for Increased Use of Data Services – Use VAS to increase network specific dependency and Induce Higher

Loyalty Than Simple Voice Services– Induce Migration to WAP phones

Sila solutions


Market opportunity

CorporateOverview


DifferentiationPhases

Phase ICoverage

Phase IIPrice

Competition andMarket Saturationincrease over time

Phase IIIValue Added

Services

Loyalty program

£

Sila solutions


Market opportunity

CorporateOverview


Whose loyalty do we wish to attract?

Business users

Investors

Others

Traffic generationNeed for Data trafficcost acceptance

Free news and sportsFree financial information

Sila solutions


Market opportunity

CorporateOverview


Loyalty issues

Quality to price ratioComplexity to changeIntensity of useNetwork specific VAS

Service priceCall ratesLow bandwidth

Sila solutions


Market opportunity

CorporateOverview


Sila Communications solution

Service Quality calls/month

High Quality Transaction

Information Services

CORE VAS

T H E S U B S C R I B E R:

• No Information charge - for core value added services only

• No telephone charge - for core value added services only

• Personalised Services - Individual service configurations

T H E N E T W O R K:

• Attract new High Value Subscribers, e.g. business, professional and data segment

• Generate sustainable loyalty from all existing subscribers

• Allocate minimal bandwidth per subscriber for free services

• Maintain focus on core competencies

Sila solutions


Market opportunity

CorporateOverview


The technical solution.

Sila solutions


Market opportunity

CorporateOverview


Sila’s SIM-based TechnologyThe Trojan Horse

• General application platform resident in the mobile phone– Data decompression and presentation– Subscription control– Dynamic memory capacity management– Authentication and encryption support– Platform enhanced steadily, including transactions

• A ‘land-grab’ on the card for space, with pride of place for new applications

• Privileged provider of specific applications to carriers’ subscribers

Sila solutions


Market opportunity

CorporateOverview


Key Strategic Partnerships

TechnologyTechnology

Mobile Mobile

Sponsors and AffiliatesSponsors and Affiliates

Unplugged.Switched on.

Mobile OperatorsMobile

Operators

Operator Operator

Sila solutions


Market opportunity

CorporateOverview

C M G


Sila Communications

• Content Handling in Real time

• Subscription management, including device configuration

• SIM toolkit application for presentation

• Trading and transactions

Sila solutions


Market opportunity

CorporateOverview


Sila CommunicationsInformation system data flow - overview

Externalcontent

SMSCentre

Sila data centre

Cell Broadcast

centre

SIM card

Subscription filter and decompression

App_1

Database

CB

App_n

SMS GPRS ...

Sila solutions


Market opportunity

CorporateOverview

Patent pending


Sila CommunicationsContent handling in real-time

Externalcontent

BroadcastScheduler

CBCTransmitter

Feed handlerFeed

handlerFeed handler

SnapQuoteServer

SMSCTransmitter

Sila solutions


Market opportunity

CorporateOverview

Patent pending


Sila CommunicationsSubscription management

Extractprocess

SMSCTransmitter

NetworkSMS

Centre

InternetConfig

WapConfig

SMS Config

Billing information

Sila solutions


Market opportunity

CorporateOverview

Patent pending


Sila CommunicationsSIM toolkit application

SIM card

Subscription filter and decompression

App_1

Database

CB

Data feed (CB / SMS / GPRS / …)

via GSM 2+ handset(data download) to SIM

App_n

SMS GPRS ...

Sila solutions


Market opportunity

CorporateOverview

Patent pending


Sila CommunicationsSIM toolkit application - data presentation

Sila solutions


Market opportunity

CorporateOverview

Patent pending


Sila CommunicationsMobiQuote - Trading and transactions

Externalcontent

MobiquoteCore trading

SIMfront end

WAPfront end

Webfront end

Tradingpartners

GSM Modem pool

Internet

Sila solutions


Market opportunity

CorporateOverview

Patent pending


Sila CommunicationsCentral infrastructure

Externalcontent

BroadcastScheduler

CBCTransmitter

MobiquoteCore trading

SIMfront end

WAPfront end

Webfront end

SnapQuoteServer SMSC

TransmitterSubscription

Server

Tradingpartners

NetworkCell Broadcast

NetworkSMS Centre

GSM Modem pool

Internet

Sila solutions


Market opportunity

CorporateOverview

Patent pending


The loyalty program

Market size

Revenues

Sila Communications

Sila solutions


Market opportunity

CorporateOverview


Sila Financial Services

Loyalty Improvement

Market Share Increase

Sources of Revenue:

Sila solutions


Market opportunity

CorporateOverview


Basic Assumptions:

•Own mobile population at 30/06/2000 m.

•Growth rate• Year 1 Year 2 Year 3 Year 4

•Yearly fee / subscriber

•See “Expectation Case” (II) for details

Sila Financial Services:

Sources of Revenue

10

50% 30% 25% 20%

–free service £/year

–fee liable £/year

10,8

180

Sila solutions


Market opportunity

CorporateOverview


Sila Financial Services:

Sources of Revenue

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

Re

ven

ue

(in

UK

£'0

00

nd

s.)

Year 1 Year 2 Year 3 Year 40

100

200

300

400

500

600

700

800

Su

bsc

rib

er

(in

000

nd

s)

End ofYear 1

End ofYear 2

End ofYear 3

End ofYear 4

• Subscriber Projection: • Revenue Projection:

Sila solutions


Market opportunity

CorporateOverview


Loyalty Improvement:Sources of Revenue

Basic Assumptions:

Cancellation rate:

Improvement

of Sila subscribers cancellation rate, 3.75 % p.a.

Or10% of overall cancellation rate, 3% p.a.

Revenue per subscriber: UK £ p.a.

See “Loyalty Quantification” (V) for details

15%

25%

360

Sila solutions


Market opportunity

CorporateOverview


Loyalty Improvement:Sources of Revenue

0

5

10

15

20

25

30

Su

bsc

rib

ers

000

nd

s.


0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

Re

ve

nu

e (

in U

K £

'00

0n

ds

.)


Sila solutions


Market opportunity

CorporateOverview


Market Share Increase:Sources of Revenue

Basic Assumptions:

Market size at 30/06/2000 millions (excl. own)

Growth rate

Revenue per subscriber UK £ p.a.

Sila market share of financial services estimates

See “New market share” (IV) for details

Year 1 Year 2 Year 3 Year 4Year 1 Year 2 Year 3 Year 4

Year 1 Year 2 Year 3 Year 4Year 1 Year 2 Year 3 Year 4

10

50% 30% 25% 20%

360

10% 15% 20% 25%

Sila solutions


Market opportunity

CorporateOverview


Market Share Increase:Sources of Revenue

0

50

100

150

200

250

Su

bsc

rib

ers

(in

'000

nd

s)

End ofYear 1

End ofYear 2

End ofYear 3

End ofYear 4

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

Re

ve

nu

e (

in U

K £

'00

0n

ds

.)


• Subscriber Projection: • Revenue Projection:

Sila solutions


Market opportunity

CorporateOverview


Sources of RevenueTotal revenues generated

through Sila services

0

100

200

300

400

500

600

700

800

900

1000

Su

bsc

rib

ers

000n

ds


0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

Rev

enu

e (U

K £

000

nd

s.)


Sila Services Sila Loyalty Sila Mk. Share

Sila solutions


Market opportunity

CorporateOverview


Summary

• Complete solutions• Powerful pedigree• Key agreements signed• Pan-European coverage• Leading wireless provider for

financial services• Experienced team• Ambitious goals• Speed to market

• Hardware independent• Broadcast vs point-to-point• Compression advantage• Wireless trading systems• Mobile operator loyalty

schemes - for no cost• Enterprise wireless data

centres• SIM card for new services

Corporate Product

Sila solutions


Market opportunity

CorporateOverview


Sila Communications

The leading provider of wireless applications services

unplugged. switched on sila communications the leading provider of wireless applications services

Documents

wireless data specialist

sila communications

languages financial

technology reuters group

worlds largest news

tv agency

stories2m words

powerful asset base