Mobile VAS
A Global Perspective
Andrew Bud
Global Chair, Mobile Entertainment Forum
Executive Chairman, mBlox Inc.

MEF Business Confidence Index
• Quarterly survey of mobile entertainment business mood
• executed by KPMG
• Worldwide across MEF membership
• nearly 100 respondents
• all parts of the value chain
• all continents
• Detailed, numerical analysis of status and forecasts
• 15 questions on categories, geographies, performance, marketing, headcount
• Provides a sense of trend over time
• First results published at Mobile World Congress
• Second results revealed today

Revenue growth predictions over the next 12 months
60% 54%
BCI 2 at 31 Mar 09
50%
45%
40% BCI 2 Mean Growth
35% Predicition 28%
31%
30% BCI 1 at 31 Dec 08
20% 17%
17% BCI 1 Mean Growth
14% Prediction: 27%
10% 12% 7%
1%
0%
Analyst & Content Owner Content Provider Technology Telco Networks &
Consultant Provider Billing
2

Movements in global revenue split in next 12 months
Russia & C Asia
1.5% 47%
North America W Europe
25% 8% 34% 10%
E&SE Europe Japan
6% 7% 3% 10%
China
Africa & M East 1.5% 98%
8% 10% Indian sub cont
C&S America 5% 6% APAC
5% 40% 9.5% 4.4%
Percentage change in
total revenue share Australasia
forecast over next 12
months vs actual
1.6% 33%
revenue share in
previous 12 months

Confidence in content types
Social Networking
Video
Games
Music
Infotainment
Ringback Tones
Q4 08 – BCI 1
Ringtones Q1 09 – BCI 2
Very Slightly Very
Neutral Slightly
Optimistic Optimistic Pessimistic
Pessimistic
4

Mobile Internet Services Booming
• EU lagging behind US due to low data plan penetration. 19.7% of US
mobile owners browsers for news and info compared to 13.5% of EU5.
• Steep rises in mobile internet being spearheaded by social networking,
261% year on year growth.
• Applications show second highest annual growth rate at 121.3%.
iPhone 3G
Launched
Sourcet: Comscore MobiLens
Data: Three month average ending March 09
Country: EU5 (UK, DE, FR, ES + IT) - N= 70,964

Smart Pipe Enablers
• Major strategic shift coming to the mobile operator model
• the “two-sided business model” - selling capabilities wholesale
• worth ~$250bn worldwide (Telco 2.0)
• “Enabling services” supplied by operators to VAS providers
• operators become “Smart Pipes” not “Dumb Pipes”
• empowering D2C providers with...
• ...network capabilities, location, handset APIs, presence, subscriber info……
• Driven by technologists and apps stores today
• Global demand for a business framework, context,
requirements
• MEF Initiative will provide these

Regulatory Evolution
• Worldwide tightening of consumer protection
• Big increases in fines in several countries
• New challenges from affiliate marketing practices
• Coping with micro-billing
• Conflicts between internet practices and mobile operators
• New regulatory codes and organisations under development
• MEF is busy

About the Mobile Entertainment Forum
MEF is the global trade body for
the Mobile Entertainment industry
MEF exists to represent the interests of enterprises
along the mobile entertainment value chain.
MEF delivers value through:
MEF Insights - provide competitive advantage
MEF Initiatives - change the industry
MEF Policy - protects the industry
MEF Parties - network the industry
Launching MEF Italia to focus on local needs
8

MEF contacts:
Andrew Bud, MEF Global Chair / mBlox
Alberto Ciarniello, MEF EMEA Vice Chairman / TIM
Sarah Roberts (sarah@m-e-f.org), EMEA General Manager
m: +44 7971 188758