T-109.4300Thoughts and learnings from the mobile industry. Niklas von Knorring,Technology Consultantniklas.knorring@satama.com

Lecture Contents

Introduction (15 min)

• Me

• Satama

Mobile Business 101 (10 min)

what are the challenges in the mobile domain

Service examples (45 min)

• Directory Services

• Mobile Digital Audio

• Mobile LBS

Wrapup (5 min)

SATAMAInteractive PlcCorporate Presentation

# 4. Copyright April 19, 2023 Satama. All rights reserved.

Satama at a Glance

Satama helps its customers do better business both in converging media and in the workplace

Satama is a financially solid, growth-seeking company• Net sales in 2006 €35,8 million and

operating profit €0,2 million.

• Satama's long-term financial objective is to grow net sales of over 20 percent annually with of operating profit of over 10% of net sales

• Return on investment more than 20%

Satama’s 350 experts are specialized in business development, design, and technology

Satama consists of three business areas: Marketing, Productivity, Mobility

With a large international footprint, Satama delivered over 1000 projects in 23 countries in 2006

Satama has helped hundreds of its clients to execute pivotal change, including Nokia, Vodafone, KPN, TUI Nordic and TeliaSonera

Satama’s CEO is Mr Jarmo Lönnfors

Helsinki

Stockholm

Tampere

Amsterdam

Düsseldorf

Turku

Our Vision

We combine talent with technology to make work and customer dialogue simple, fun and profitable.

Satama is a marketing technology

services company.

Our businesses

MarketingPlan & Insight, Dialogue,

involvement, Analytics and

measurement, Interactive

marketing, Rich Media

ProductivityStrategy & Service Design,

Microsoft Solutions, Open

Source Solutions, Support

Services

MobilityMobile marketing, Mobile

publishing, Self-service,

Business solutions

Our Customers Are Leading Companies Globally and Locally

Marketing Technology

Services

Our Offering

CustomerBranded communication and dialogue

Digital workplace

Employee

Attract RetainSell DevelopMarketing

Technology Services

Our offering

Campaigns eCommerce

Analytics

LoyaltyPrograms

CRM

AdvancedIntranets Business

Intelligence

SearchMarketing

SearchOptimization

Self-service Extranets

Online strategies Customer insight

CustomerBranded communication and dialogue

Digital workplace

Employee

Attract RetainSell DevelopMarketing

Technology Services

Mobile Business 101

Trends

Application trends:

• Directory Services

• Music

• Web

• Games

• Navigation & LBS

• Mobile TV

• Instant Messaging

• VOIP

• RFID and Barcodes

Platform trends:

• Platform landscape remains ultra fragmented (”reverse long tail” - need to support 300 handsets in order to make profit)

• Symbian vs others (MS Smart Phone, Linux, iPhone)? And does it matter?

• Platforms are constantly evolving – moving target

Business trends:

• Premium SMS continues to rule the ARPU-land

• Games rule application land

Market Fragmentation – concentric circles – business 101

What is the population of the target country?

What is the handset penetration?

Which operators will be supported?

Which handsets within this operator (Finland – less bundling)

Technology: J2me, symbian, WAP, SMS?

Application special needs: MMS, Location, Bluetooth, etc etc.

Basic target segmentation: youth, male, female, business…

Which channels do you intend to use?

What proportion of potential users do you intend to convert into users?

Here is roughly your potential user group size

Add the development peculiarities of the mobile domain…

Device fragmentation

• Porting, porting, porting!

• long and costly projects

Effects

• Application development is very costly

• Games rule the application domain – with very few exceptions

• Long tail applications cannot be developed – only major hits survive

Hard to find a balance between users and application…

Lessons Learned

Mobile Services, emerging fragmented market: ’off the shelf’ model is risky and difficult -> create solutions.

Create solutions where 80% of the effort goes into common features & functionality, and 20% go into customization.

Handling platform fragmentation is a key issue. How to get large enough market shares? How to manage 300 versions of the same software?

MobileDirectory services

End user spending on mobile content 2000-2007

Directory services represent a ~20% market share ot the total pie

Directory services include: number inqueries, car registration, tax info, etc

Currently majority is number services (last year’s data: 87%)

DirectoryServices

Source: Mobile Services market in Finland 2005, Min of transport and communications

Person number inquiries

87 %

Yellow pages4 %

Other directory services

9 %

Source: Prisma Research, 2005

Directory service market in 2004

market value mainly SMS based number inquiries

yellow pages moving to search engines

personal tax info service has been a success

steady growth for car registration info

Directory service market value in 2004 (total 18 M EUR)

Mobile search in Finland

Other databasesYellow pages

Technologies

Service and content

providers

SMS

WAP

Java, Symbian

FonectaEniro

NumeronettiDirecta

…

Service pricing for end-user

Typically premium priced SMS

Directory services

SMS

WAP

Java, Symbian

FonectaEniro

NumeronettiDirecta

…

SMS

WAP

FonectaElisaZed…

Car registration info, personal tax info, etc.

Person name, number and address inquiries

Address, number, service and company search

Number inquiries Search engines

Internet and WAP browsing

WAP

Symbian

Nokia

Google

etc.

Typically premium priced SMS Typically premium priced SMS Typically free of charge (except for data transfer

fee)

Search engines

Why should I use a Mobile Service?

Convenient. The mobile service at handis the most convenient way to accesscritical information in the situation.

Automatic. The mobile service runsautomatically after installation.

Addictive. The mobile service is addictiveand fun enough to inspire frequent usage.

If a Mobile Service does not offer any of these qualities, it is difficult to see thatanyone would care to use it.

Case PomoPalvelu - Background

General

• The PomoPalvelu application takes mobile telephone number searching services to the next level

• The application was developed for Symbian Series 60 and 80 phones.

• Currently supported phone models: most S60 2nd & 3rd edition, Nokia communicators

Key features

• Automatic identification of unknown callers (memory-resident application)

• Real-time listing of all unknown numbers from received/missed calls and text messages

• Effortless search of both personal and corporate phone numbers or information about phone number holders

• Sophisticated and easy-to-use results display

PomoPalvelu – ”Caller ID++”

Receiving a call

• When a call from an unknown number is received, a search request is made

• The calling number is unknown if it cannot be found from the phone’s Contacts or the application’s Results list

• The automatic identification feature operates even when the application is not running

Displaying the result

• Information about the caller is presented almost instantly, while the call is still alerting

Other • The ”normal” applicaton UI provides means to search for

persons on demand” [UI screens left out to save space ;) ]• Further info:

http://www.pomopalvelu.fi

Business model

• The application complements existing SMS services – offers similar search functions

• The application is free to download (or offered in an operator bundle / pre-installed)

• All transactions are charged by premium SMS’s, NumeroNetti earns per transaction (as does the operator, in fact)

• For NumeroNetti, the beef is that the use is so easy (even automatic), that the ARPU per user is estimated to be much higher than for an SMS-service user

Billing example

...even if the business model is ”difficult”, i.e..

1,00 Eur to end user

0,80 Eur VAT

0,70 Eur operator’s billing fee

0,55 Eur operator charges 0,07 Eur for incoming & outgoing sms’s (service request & response)

0,55 Eur to the service provider

(from which possible content-owner fees, copyright fees, etc. are deducted)

… SMS billing is still the most convenient way to charge for cheap pay per use services.

Data is the Next Intel Inside

-Tim O’ Reilly

Mobile Digital Audio

Mobile Music – a Perfect Match?

Always with you

Personal

Connected

Internet enabled

Enough capacity

Extendable

”Not good enough?..just yet”

Good audio qualityand codec support

Digital Music Today

Digital Music is more than just music:

• Automatic cover arts and song names

• Communities, UGC

• Toplists, playlists

• Music Recognition

• Metadata

• … also a personal statement

-> Just to have a simple music player on the phone is not enough!

Last.fm – the social music revolution

Pandora – the music genome project

Sony Ericsson Walkman Range

Music Phones and Music Services

Gracenote Mobile Music ID – Identifies ”any” song in a few seconds!

All music guide

Massive online music metadata database

Free to use for personal non-profit use

License fees for commercial use

Also check out:

musicbrainz.org, freedb.org (community based)

gracenote.com (apple uses this in iTunes)

The Mobile Angle in Digital Audio

Create Internet enabled applications, mobile devices are Internet-enabled by default:

• Visual Radios, Internet Radios, ”Spod Tronics”

• Music ID – song recognition anywhere

• Mobile Music Download shops without need for PC (E.g. Elisa Jukebox)

Create Content Creation applications, mobile devices are great for spur of the moment content creation (just like SMS or MMS):

• Blog / podcasting from your phone

Music Station

MusicStation offers all relevant Mobile Music application features:On device music download, Pay per week billing model, Music communities,

Music Recommendations, Download playlists … is it an iPod killer?

Data is the Next Intel Inside

-Tim O’ Reilly

Location Based Services

Location Based Services – the principle, and problems

Issues leading to high cost:

• Complex platform

• Handset & platform landscape

• Service Optimization

• Database population

High cost of use - value proposition?

LBS Platform

Coordinates

Filtered Content

Plazes.com - User Created LBS Data

Plazes - UGC (User Generated Content) implemented in the LBS domain

Smart to go – freebies and pay as you go

Basic features (map, route planning) come for free but user must pay for:

• Turn-by-turn navigation

• City Guides

Especially turn-by-turn navigation is a must feature if you intend to use this application ’for real’

A basic maps and navigation application. Competition from both stands alone navigators and other mobile apps. Major advantage: pre-installed on phones.

A few application and service examples…

Some are innovative .. Some are not!

Data is the Next Intel Inside

-Tim O’ Reilly

Social Phonebooking

Phonebook meets IM, meets calendar, meets social networks

Brings rich presence into phonebook application

…and to the web.

Available for S60 devices, MIDP coming soon

www.jaiku.com

Messaging Services

www.3jam.com – a group SMS service. Free of Charge.

Difficult to use, user needs to know keywords, names, etc.

Also, see http://www.txtmob.com/

Productivity – SMS reminder service

SMS Based reminder service.

Sends you calendar events to your mobile phone

That’s it … pretty simple, is it useful?

www.bitbomb.com

Micropayment on your mobile

Not a novel idea…

Has been tried many many times before.

Will this one work – judge for yourself!

https://www.textpayme.com/us/secure/index.tpm

Fring

Talk to your Skype and google talk contacts over mobile… nice!

Presence, messaging, everything.

www.fring.com

MobiTV – TV on your phone

TV on your phone over data networks

www.mobitv.com

Not available in finland-

Sonera has a similar service