2 The New Era of Mobile Rob Conway Chief Executive Officer and Member of the Board, GSMA.

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The New Era of MobileThe New Era of Mobile

Rob ConwayChief Executive Officer and Member of the Board, GSMA

© Copyright GSM Association 3

New Era of MobileNew Era of Mobile

• Emerging markets shift and innovation take-up to address challenging environments

• Delivery Marriage: – Mobile broadband

(3G + HSPA)

• Marriage of mobile with other industries – financial

– Advertising

– Entertainment

• “Made for Mobile”


3G for all – stoking the mass market 3G for all – stoking the mass market

• 3G must be for all:– All users

– All markets

• Grow well beyond the 100 GSM operators in 50 countries with 3G

• Stoke markets with a more affordable, feature-rich 3G handset

• “3G for All” handset contest

• Rated by 12 operators: Cingular Wireless, Globe Telecom, Hutchison 3G, KTF, MTN, Orange, Smart, Telecom Italia, Telefonica, Telenor, T-Mobile and Vodafone

– Represent 620 million subscribers

• 19 terminals reviewed


““3G for All” – the winner is…3G for All” – the winner is…LG!LG!

• LG delivered a stylish, compelling, affordable and feature-rich handset

• About 30-40% price reduction from the average cost of a 3G terminal today

• Qualcomm supplied chipset

• Nokia handset – ”Highly Commended”


““Mobile Broadband”: 3G + HSPA Mobile Broadband”: 3G + HSPA

• The industry has got it right with High Speed Packet Access (HSPA)

– Simple, sotware based– Compelling to use– Built in multiplier effect– 149 networks in 69 countries– 50% growth in the last 3

months

• 40 suppliers have launched 140 HSDPA-enabled devices

• 49 handsets, 35 data cards and 32 integrated notebooks

• Ease and cost effectiveness of rollout: 5 –10 times cheaper than WiMax1

1. Source: Arthur D Little

“(HSDPA) could mean data transfer speeds faster than many home broadband

connections.”– Sunday Times, December 2006

“This is killer technology… HSPA delivers 3G as it should've been when the first networks were

launched back in 2003. - Gabriel Brown, November 2006

“HSPA will account for the majority of mobile broadband networks worldwide over the next

five years.”– Arthur D Little, January 2007


Significantly Faster Roll OutSignificantly Faster Roll Out

0

20

40

60

80

100

120

140

160

180

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20

2G 3G

HSDPA (Deployed) HSDPA (Planned/Estimated)

HSDPA 3 years quicker than 2G & 3G

(Source: Wireless Intelligence)

Ne

two

rks

Year 1 Year 2 Year 3 Year 4 Year 5

9

Marriages that bridge industries Marriages that bridge industries and enrich the fourth screenand enrich the fourth screen

mobile + financialmobile + financialmobile + advertisingmobile + advertising

mobile + entertainmentmobile + entertainment


““Perfect Fit for Mobile”Perfect Fit for Mobile”Global Mobile Money TransferGlobal Mobile Money Transfer

• $230bn in international remittances

• Over 200Mil migrant workers

• Many migrant workers are poor, un-banked or under-banked

• Access is difficult and costs high

• Mobile can reach where banks cannot and connect un-banked and under-banked.

• Banks need new access to customers and revenues.

• Operators get very attractive service feeding customer loyalty


The Value Equation - “Everyone Benefits”The Value Equation - “Everyone Benefits”

What do customers get:

• Ease of access

• Ease of use

• Messaging which comforts you– “know when sent, when received, all

same day”

• Significantly lower costs

• What do governments get:– Financial transparency– Money to needy citizens– Hard currency

Potential to:

• double the number of recipients of remittances to 1.6bn

• quadruple international remittances market by 2012


The Global ProgrammeThe Global ProgrammePartnership with financial institutionsPartnership with financial institutions

Complementary Partnerships

• Global Hub Level Partnership

• GSMA and MasterCard Worldwide to pilot a global hub to transfer mobile-enabled remittances between national payment systems

• Local/regional partnerships between operators and financial institutions

• Pilot for messaging and clearing and settlement functions at hub connected to local systems

• Approved by GSMA Board– Board Sponsors: Bharti (India)

and Smart (Philippines)


““PayBy-Mobile”PayBy-Mobile”Mobilization of PaymentMobilization of Payment

• Ripe for mobile payments – allow the purchase of goods and services by mobile phone

– Banks can’t do it alone– Operators can’t do it alone– Complementary solution required

• Key “approach” is:

• Over The Air (OTA) download or pre-load of encrypted credit card information

• On to the trusted SIM– Banks trust smart cards!

• SIM interface to Near Field Communications to bank enabled point of sale terminal


Moving to World Wide AdoptionMoving to World Wide Adoption

• “Virtual Card” issued by banks but ‘renting space on the SIM’ –

• leveraging mobile’s ubiquity, unique capabilities to support bank requirements

• Banks do what they do best --- Operators complement

• GSMA Board approved this “Approach”--– Board Sponsor-- KTF

(Korea)

– 12 operators collaborating on specific requirements under the “Approach”


Personal Instant MessagingPersonal Instant Messaging

• PIM – launched here last year to enable:

– Ubiquitous Instant Messaging services to mobile consumers

– Connect mobile community in excess of 2 billion

– Connect with existing IM communities– Converge across mobile, fixed and

internet

• Interoperable Services– Operators in Italy and Spain ready to

launch– France, Germany and the UK to follow

this year

• Asian Effort:– India launched– Malaysia, Pakistan, South Africa and

Thailand to follow this year

• More announcements expected this week


Mobile + AdvertisingMobile + AdvertisingAdvertising for the 4th ScreenAdvertising for the 4th Screen

• User survey stats show demand

• Moves advertising from interruption to engagement

– Consumer opt in and more tailor-made

• Targeted and intimate with an immediate response channel

• But... highly fragmented approaches

• Need to Mobilize Advertising!

• Key is standardization:– formats– definition of inventory– measurement metrics– code of conduct

Cross-industry approach

Announcing:

”Mobile Advertising Forum”


““Made for Mobile”Made for Mobile”Mobile Bollywood InitiativeMobile Bollywood Initiative

• India’s movie industry makes 1000+ films a year – and it’s going mobile

• Mobile video is big in India even with 2.5G

– 250,000 video downloads a day– Music, video, movie trailers, dialogues– Part of an integrated package that

includes music (ringtones, ringback,fulltrack); images and games

• Downloads estimated to reach 5 million a day by 2008

• GSMA, Hungama Mobile and Roamware have teamed up with leading Bollywood film maker, Sanjay Gupta, to premiere three Bollywood movies adapted for the mobile medium

• See them here today


““Made for Mobile”Made for Mobile”GSMA and SundanceGSMA and Sundance

• Global Short Film Project For Mobile launched in New York on November 8th

– Pilot project to showcase and extend the reach of the independent short film genre to mobile users worldwide

• Turning mobile into a new venue for cinematic entertainment

– Not about using mobile for trailers or highlights but as an an entirely new medium for independent creative minds

• Five specially commissioned films by leading independent directors – 3-5 mins long. See them for yourselves

“I’ve always loved short films and know many others would too, if only we could find the right venue. That’s why we introduced the Short Film Festival. I didn’t envisage back that the venue would be a cellphone but that is what we are looking at today.” Robert Redford

2 The New Era of Mobile Rob Conway Chief Executive Officer and Member of the Board, GSMA.

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