Gain Competitive Advantage & Maximise Revenues In The World Of Convergence Prague, 26 September 2007 Sirous Kavehercy Market Development Director Europe, Russia and Africa

Agenda Acision Introduction Generation 2.0 Transformation In Telecoms Service Bundling A Good Start For Convergence What Problem Should Convergence Solve? Steps Towards Successful Convergence

Acision Introduction

Generation 2.0

Transformation In Telecoms

Service Bundling

A Good Start For Convergence

What Problem Should Convergence Solve?

Steps Towards Successful Convergence

1964 1969 2002 June 2007

Acision… Is A Company Of Considerable Substance 1700 Employees On 5 Continents Revenues Of Approximately $0.5 Billion Customer Base Of 300 Mobile Operators Worldwide Global Organisation With An Excellent Customer Base And A Strong Customer Focus Strongly Positioned In The Value Chain And Able To Exploit The Convergence Opportunity A Comprehensive Portfolio Of Products And Services Sustaining Technological Advantage By Exploiting Innovation Experienced People With Deep Domain Knowledge Consistent Financial Performance With Aggressive Ambitions For Growth

Is A Company Of Considerable Substance

1700 Employees On 5 Continents

Revenues Of Approximately $0.5 Billion

Customer Base Of 300 Mobile Operators Worldwide

Global Organisation With An Excellent Customer Base And A Strong Customer Focus

Strongly Positioned In The Value Chain And Able To Exploit The Convergence Opportunity

A Comprehensive Portfolio Of Products And Services

Sustaining Technological Advantage By Exploiting Innovation

Experienced People With Deep Domain Knowledge

Consistent Financial Performance With Aggressive Ambitions For Growth

The Experts in Mobile Data Services Text Messaging Multimedia Messaging Voice/Video Messaging Converged IP Messaging Mobile Internet Mobile Advertising Intelligent Charging

Text Messaging

Multimedia Messaging

Voice/Video Messaging

Converged IP Messaging

Mobile Internet

Mobile Advertising

Intelligent Charging

Acision Track Record First Commercial SMS Message (1992) First Interactive Television Show Using SMS (2000) First Commercial MMS Message (2001) First 3G IP-based Messaging Solution (2002) First I-Mode gateway outside Japan (2003) First Commercial 3G VideoMail Service (2003) First Real Time Subs Behavioral Analysis Solution (2007)

First Commercial SMS Message (1992)

First Interactive Television Show Using SMS (2000)

First Commercial MMS Message (2001)

First 3G IP-based Messaging Solution (2002)

First I-Mode gateway outside Japan (2003)

First Commercial 3G VideoMail Service (2003)

First Real Time Subs Behavioral Analysis Solution (2007)

Generation 2.0

Generation 2.0

Consumers Are Transforming Telecom and Media Sectors

Resulting In A Telecom Jam!

Europe Usage Rate Per Age Segment

What Drives Youth Today? Participate – 1st Generation With Reality TV Viewer Voting Discover – 1st Generation That Grew Up With Internet Search Create – 1st Generation Who All Had Digital Cameras Share – 1st Generation To Grow Up With Napster, Kazaa Virtual – 1st Generation With Tamagotchi, 2nd Life, Warcraft Source: Tomi Ahonen Consulting

Participate – 1st Generation With Reality TV Viewer Voting

Discover – 1st Generation That Grew Up With Internet Search

Create – 1st Generation Who All Had Digital Cameras

Share – 1st Generation To Grow Up With Napster, Kazaa

Virtual – 1st Generation With Tamagotchi, 2nd Life, Warcraft

Source: Tomi Ahonen Consulting

Is Content King!? Publicised By Hollywood And Media Companies Mobile Has Become Another Distribution Channels For Media To Sell Their Content

Publicised By Hollywood And Media Companies

Mobile Has Become Another Distribution Channels For Media To Sell Their Content

“ Contact” Is King, Not Content

Service Bundling

Service Bundling

Service Bundling Broadband Has Been A Hub For Bundling Broadband Fixed Mobile TV Quad-Play Bundle Dual-Play Bundle Triple-Play Bundle

Broadband Has Been A Hub For Bundling

Operator Drivers For Bundling Common Goals Increase Customer Loyalty Customer Retention Matching Competitors “ Strategic” Drivers Increasing Customer Lifetime Value Winning Customers Broadband Land Grab

Common Goals

Increase Customer Loyalty

Customer Retention

Matching Competitors

“ Strategic” Drivers

Increasing Customer Lifetime Value

Winning Customers

Broadband Land Grab

Customer Drivers For Bundling Saving Money Predictability Of Bills Convenience Of One Vendor Challenges: Hidden Charges Complexity Loss Of Clarity Single Point Of Failure

Saving Money

Predictability Of Bills

Convenience Of One Vendor

Challenges:

Hidden Charges

Complexity

Loss Of Clarity

Single Point Of Failure

Service Bundles Dual-Play: Broadband + Phone Broadband + TV Broadband + Mobile (mainly mobile operators) Triple-Play Broadband + TV + Phone Broadband + TV + Mobile (not in Europe yet)

Dual-Play:

Broadband + Phone

Broadband + TV

Broadband + Mobile (mainly mobile operators)

Triple-Play

Broadband + TV + Phone

Broadband + TV + Mobile (not in Europe yet)

Quad-Players Broadband + TV + Phone + Mobile Europe Virgin Media (2006) Canada Videotron (Triple-play) With Rogers (Mobile) As A Joint Venture (2007) USA Verizon (2007) Time Warner Cable , Charter Communications , Bright House Networks With Sprint (Mobile) As A Joint Venture (2006)

Broadband + TV + Phone + Mobile

Europe

Virgin Media (2006)

Canada

Videotron (Triple-play) With Rogers (Mobile) As A Joint Venture (2007)

USA

Verizon (2007)

Time Warner Cable , Charter Communications , Bright House Networks With Sprint (Mobile) As A Joint Venture (2006)

di What Next?

Differentiate

Convergence ?

FMC Has Been A Good Start “ FMC Uptake Will Only Be Driven By Shifting The Focus To FMC's Features, Rather Than Its Potential For Cutting Costs. ” “ Integrating Voice And Video Into Mobile Applications Will Be The New Frontier For FMC. This Will Enable True Differentiation Between The FMC Offerings Of Today And The FMC Applications Of Tomorrow.” Source: Analyst House The Yankee Group, 14 September 2007

What Is Convergence? Cable Operators Offering Triple-Play? Mobile Operators Aiming For Quad-Play? 3 Launching X-Series? Apple Launching iPhone? LG Phone To Support You Tube? Vodafone Offering eBay, YouTube, MSN? Intel Introducing Mobile Internet Device? Microsoft and Nokia Bringing “Web” To Mobiles? Multi-million Dollar Roll Out Of IMS Infrastructure?

Cable Operators Offering Triple-Play?

Mobile Operators Aiming For Quad-Play?

3 Launching X-Series?

Apple Launching iPhone?

LG Phone To Support You Tube?

Vodafone Offering eBay, YouTube, MSN?

Intel Introducing Mobile Internet Device?

Microsoft and Nokia Bringing “Web” To Mobiles?

Multi-million Dollar Roll Out Of IMS Infrastructure?

“ If all you have is a hammer, then everything looks like a nail. Abraham Maslow,1965

What Problem Must Convergence Be Solving?

Business Models In Convergence Examine Characteristics Triple Play Convergence Broadcast Internet Fixed Mobile TV/Radio ‘ Any’ TV Paid Access Viewer Totals Inactive Advertising Ratings Service Access Relation To Individual Customer Revenue Competition Metrics Search, Community, Content ‘ Any’ PC Paid Access User Session Interactive Advertising Sessions Comms ‘ Any’ Line Paid Access ‘ Home’ Contract Lines Comms & Content ‘ My’ Phone Free Access Individual Contract Pay Per Use Customers Quadruple Play Convergence

Key Differentiator For Convergence Is It The Battle For The Home ? Is It The Battle For The Richest Set Of Services ? Is It The Battle For Most Access Channels ? Or Is It Simply The Battle For The Customer ? TV/Radio Fixed Mobile Internet

Is It The Battle For The Home ?

Is It The Battle For The Richest Set Of Services ?

Is It The Battle For Most Access Channels ?

Or Is It Simply The Battle For The Customer ?

1. What Drives Customer Choice? 2. What And Who Has The Best Chance Of Winning The Customer’s Attention?

Freedom & Flexibility Control & Personalization

Freedom

& Flexibility

Key Differentiator For Convergence “ Mobility Is Portable Identity Coupled With Ubiquitous Access To Your Telecommunications Services” Mobility TV/Radio Fixed Mobile Internet

Convergence Towards Mobility Examine Characteristics Service Access Relation To Individual Customer Revenue Competition Metrics TV/Radio (Anywhere) ‘ Any’ TV Paid Access Viewer Totals Inactive Advertising Ratings Search, Community, Content ‘ Any’ PC Paid Access User Session Direct Advertising Sessions Comms (Location) ‘ Any’ Line Paid Access ‘ Home’ Contract Lines Comms (Anywhere) ‘ My’ Phone Free Access Individual Contract Pay Per Use Customers Broadcast Internet Fixed Mobile Mobility Service Access Relation To Individual Customer Revenue Competition Metrics TV/Radio (Anywhere) ‘ Any’ TV Paid Access Viewer Totals Inactive Advertising Ratings Search, Community, Content ‘ Any’ PC Paid Access User Session Direct Advertising Sessions Comms (Location) ‘ Any’ Line Paid Access ‘ Home’ Contract Lines Comms (Anywhere) ‘ My’ Phone Free Access Individual Contract Pay Per Use Customers Broadcast Internet Fixed Mobile Mobility Service Access Relation To Individual Customer Revenue Competition Metrics TV/Radio (Anywhere) ‘ Any’ TV Paid Access Viewer Totals Inactive Advertising Ratings Search, Community, Content ‘ Any’ PC Paid Access User Session Direct Advertising Sessions Comms (Location) ‘ Any’ Line Paid Access ‘ Home’ Contract Lines Comms (Anywhere) ‘ My’ Phone Free Access Individual Contract Pay Per Use Customers Broadcast Internet Fixed Mobile Mobility

Business Model Of The Dominant Provider Of The Future Service Access Relation to Individual Customer Revenue Competition metrics Search, Community, Content Direct advertising Sessions Comms (Anywhere) ‘ My’ Phone free access Individual Contract pay per use Customers Mobility

Business Model Of The Dominant Provider Of The Future Mobility Requirements For Convergent Service Providers Service Access Relation to Individual Customer Revenue Competition metrics Search, Community, Content Direct advertising Sessions Comms (Anywhere) ‘ My’ Phone free access Individual Contract pay per use Customers Mobility Hybrid Revenue Model - Prepaid, Contract, Content, Advertising, 3rd Party Access Personalised Service Packages - Accessible Anywhere, Any Time Access Via ‘My’device - Portable Identity, Access Anywhere Customer Centric Process Ability - Mobility Rights, Services Mix, Security, Preferences Focus On Customers, Users And Session Numbers - Multiple Customer, Multiple Service Access

Business Model Of The Dominant Provider Of The Future Hybrid Revenue Model - Prepaid, Contract, Content, Advertising, 3rd Party Access Personalised Service Packages - Accessible Anywhere, Any Time Access Via ‘My’device - Portable Identity, Access Anywhere Customer Centric Process Ability - Mobility Rights, Services Mix, Security, Preferences Focus On Customers, Users And Session Numbers - Multiple Customer, Multiple Service Access Mobility Requirements For Convergent Service Providers

Remaining Competitive In A Converging World Payment Access Applications & Information Users Customer Intelligence Customer Intelligence Text Voice Instant Message Video Message Ring tones Wallpaper Browsing Download & streaming TV Enterprise applications Advertising M-commerce User Generated Content Gaming Individuals Family groups Enterprise groups Social communities Business communities Mobile Mobile IP Local Wireless Fixed IP Fixed Prepay Now pay Post pay PAYMENTS Charging Billing Rating Customer care Settlement

Steps Towards Successful Convergence

Steps Towards

Successful Convergence

Maximize Your Revenue From Existing Services

Maximize Your Revenue From Existing Services

Messaging Personalised Messaging Storage, Copy-forward, Diversion, Signatures, Nicknames Out Of Office Notes, Message Barring, Routing Features Personalised Greetings, Avatars, Visual VoiceMail Personalised Notifications (IM, SMS, MMS, E-mail) Parental Control, Black and White Listing Bringing Together Public And Private Messaging Connecting Existing Communities With SMS/MMS Users Step-stone To Converged Messaging

Personalised Messaging

Storage, Copy-forward, Diversion, Signatures, Nicknames

Out Of Office Notes, Message Barring, Routing Features

Personalised Greetings, Avatars, Visual VoiceMail

Personalised Notifications (IM, SMS, MMS, E-mail)

Parental Control, Black and White Listing

Bringing Together Public And Private Messaging

Connecting Existing Communities With SMS/MMS Users

Step-stone To Converged Messaging

Messaging Innovative Pricing Converged Payments Bundling Implement Loyalty Campaigns Internet Service Access Through Messaging eBay, Paypal Blogging, Communities Search

Innovative Pricing

Converged Payments

Bundling

Implement Loyalty Campaigns

Internet Service Access Through Messaging

eBay, Paypal

Blogging, Communities

Search

Mobilizing The Internet Optimise User Experience Control Browsing & Access Enable Communities Monetise Clarity of Pricing

Optimise

User Experience

Control

Browsing & Access

Enable

Communities

Monetise

Clarity of Pricing

Deploy Flexible Service Environments

Deploy Flexible Service Environments

Application And Access Ubiquity Flexibility To Introduce Variety Of Applications Quickly Across Variety Of Clients And Networks Devices Applications

Flexibility To Introduce Variety Of Applications

Quickly Across Variety Of Clients And Networks

Know Your Customer

Know Your Customer

Increase Customer Loyalty Achieving Customer Centricity Behaviour Lifestyle Characteristics Brand Preferences Personal Interests Consumption Patterns

Behaviour

Lifestyle Characteristics

Brand Preferences

Personal Interests

Consumption Patterns

Increase Customer Loyalty From B&W To Full Color Unlock The Potential Of Customer Data

Unlock The Potential Of Customer Data

Make Payments Work

Make Payments Work

Make Sure You Get Paid

Getting The Basics Right

Payments: Making It Work Create Offers That Look Simple To The User Provides Tariffs And Bundles To All Subscribers Delight Users With Relevant Loyalty Rewards Enable Consumers To Control Their Spend Per Service Quickly Implement New Service Packages Or Tariffs Attract New Users And Prevent Churn Monitor/Control Information On Your Network Real-Time Reduce Bad Debt And Close Fraud Windows Provide User Control & Total Revenue Capture

Create Offers That Look Simple To The User

Provides Tariffs And Bundles To All Subscribers

Delight Users With Relevant Loyalty Rewards

Enable Consumers To Control Their Spend Per Service

Quickly Implement New Service Packages Or Tariffs

Attract New Users And Prevent Churn

Monitor/Control Information On Your Network Real-Time

Reduce Bad Debt And Close Fraud Windows

Sirous Kavehercy Market Development Director --------------------------------------------------------- Mobile: +31 65252 6222 Email: [email_address] Website: http://www.acision.com Skype: sirous.kavehercy