TeliaSonera’s view on
the mobile content
business
Mobile and Broadband
Showcase, Kista 9.12.2008
Juhani Kivikangas
Head of New Content Business
Business Area Mobility Services
1

Agenda
• Current content market status
– TeliaSonera market footprint
– Usage behaviour
• TeliaSonera’s content strategy
– The operator role and purpose of content
– Top 3 content focus areas
– Business framework – mobile web 2.0
• Comments and questions
2

Strong Mobile leadership
Finland
Subscriptions 2,573,000
Market share 40%
Norway
Subscriptions 1,573,000 Estonia
Market share 32% Subscriptions 755,000
#1 Market share 48%
#2
Sweden
Subscriptions 5,091,000
#1
Market share 48% #1 Latvia
Subscriptions 1,017,000
#1 Market share 49%
#3 #1
Denmark
Subscriptions 1,485,000
Market share 24%
Lithuania
Subscriptions 1,0965,000
Spain
Market share 43%
Subscriptions 627,000
Market share N/A
Total Mobile subscriptions
15,086,000
Marketshare approx. per 30 June 2008. Market share based on customers
3

SurfPort has over 1,5 million unique users per
month
• TeliaSonera’s mobile portal
SurfPort runs in 7 markets and
for 10 brands
• Over 10% of total customer
base use SurfPort
#2
SWEDEN NORWAY FINLAND
SWEDEN NORWAY FINLAND LITHUANIA ESTONIA DENMARK SPAIN
4

Main usage reason: “Keeping up with news
and results” and “Pass time”
What is you first main reason for using SurfPort?
Source: SurfPort customer survey by GFK, September 2008
5

Usage situation: “One the move” and “nothing
else to do” dominate
Where/when do you use SurfPort the most often?
Source: SurfPort customer survey by GFK, September 2008
6

Agenda
• Current content market status
– TeliaSonera market footprint
– Usage behaviour
• TeliaSonera’s content strategy
– The operator role and purpose of content
– Top 3 content focus areas
– Business framework – mobile web 2.0
• Comments and questions
7

TeliaSonera’s role in content
Towards End users
• Help to explore and access Internet from a
mobile device
• Best content aggregation
• Access to self services tools
• Ensuring cost control
Towards Content providers
• Market window, traffic generator and sales
channel
• Billing enabler
• Co-marketing possibilities
Towards Advertisers
• Inventory for ads and smart media channel
8

What is the main purpose with Content for
TeliaSonera?
• Acquisition tool – campaigns and content bundles
providing differentiation
• ARPU driver - stimulation of mobile data usage,
content sales revenues and mobile advertising
• Customer retention – TS unique services will build
loyalty and long term relation with customers
9

Key success factors
• Help end users get started - pre-configured
handsets/clients
• Improve end-user experience and interface
• Ensure clear data pricing models with cost
control
• Actively participating in development
of new business models
• Common content management and
distribution
10

Content focus areas
1. Mobile Payment
2. Mobile advertising
3. Music
4. “Application Store”
11

1. Mobile payments
• Drive mobile payment usage for
non-mobile consumed content as
tickets, public transportation,
physical goods
• NFC will boost mobile payments as
consumers associate the \"cool
factor\" and convenience with remote
mobile payments.
• Drive towards the “mobile wallet”
vision, where the mobile phone
replace credit cards, loyalty cards,
keys etc.

Mobile payment success stories
Estonia – 63 % of all parking payments in Sweden – 2,2 million SMS tickets for
Tallinn is done via mobile phone! public transportation sold in Oct 2008,
193% increase
Top list of CPA customers:
1. Ericsson IPX
2. Public transportation
3. Mblox
4. Echovox
5. Netsize
6. Aspiro
7. Unwire
8. M-Quest
9. Jeansson Media
10. Apello
10.12.2008 13
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2. Mobile advertising
• Fastest growing media channel*
• Large potential media channel*
• Fastest growing
• Accurate and detailed follow-up
• Accurate and detailed follow-up
• Alreadyadvertising in Mobile 5 markets
• Mobile in show with use in
and in 7 by 2009
reach-packet and Surf Open
• Platform for advertising and search
and ad-sales provided by a global partner
• Inventory on SurfPort in Sweden
and Denmark is sold out for Nov!
* acc.to IRM institute -08
* acc.to IRM institute
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”Mobile reach package”
• Co-operation between TeliaSonera and the other local
operators in Sweden, Estonia and Lithuania
• Advertisers can reach all mobile customers on the
opertor portals in one shot
• Made mobile marketing easier in planning, guidelines
and standards, and common metrics and measurement
• The same ad zones in the same portal categories for all
operator portals
• CPM price model
• Adidas on board as the first
advertiser
15

3. TeliaSonera music – extensive coverage
Offering Coverage
• TeliaSonera local branded shops • 7 countries
• Dual delivery (PC & Mobile) • 11 pay-per-download music shops
• Differentiate by pre-releases, • 7-digit download figure (full track)
exclusive content, sponsorships etc • 70 million consumers
16

4. ”TeliaSonera Application Store”
• ”One-click” distance to easy used services
• Intuitive downloading and provisioning of
services
• Helps sorting among coming 3rd party
applications
• Additional inventory for advertising business
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The Four Areas of the ”TeliaSonera
Application Store”
My Favourites Top Services
Example of first page Promotional area for
when launching. TS chosen services
All downloaded & (MSN, Mobile TV,
subscribed services Music etc)
May also include
promotions
Services & Example of
application shop micro services
List of TeliaSonera’s Ordering taxi in
own and 3rd party Helsinki area
applications, e.g. games. (Finland)
Widgets / micro services
(e.g. tickets, weather, parking,
SL, taxi)
19

Mobile web 2.0
- four steps to build
future business
20

Step 1 – TS mobile channels
Clients
t
m en
p ay
M- atio
n
g
N avi
Chat rated Co
ntent
Gene
User
Games
TV
Music
SurfPort
21

Step 1- Manage the end-user interface in
TeliaSonera’s mobile channels
• Take ownership of the mobile interface
using customer-friendly Clients and Softkeys
to our services
22

Step 2 – Editorial work
Clients
Editorial
t
m en
p ay
M- atio
n
g
N avi
Chat rated Co
ntent
Gene
User
Games
TV
Music
SurfPort
23

Improve service attractiveness and customer
experience by editorial work (2)
• E.g. Music shop
Music store with 4 million songs
Dual delivery
Mobile access Broadband access
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Step 3 – off portal browsing
Clients
Editorial
t
m en
p ay
M- atio
n
g
N avi
Chat rated Co
ntent
Gene
User
Games
TV
Music
SurfPort
SurfOpen
25

Step 3- Improved customer experience for off-
portal browsing SurfOpen
• Makes it easier to reach the open internet
• Toolbar for easy surf, incl search and home
• Makes up to 70% faster mobile surfing
• More than 50% of the Lithuanian population
has used Surf Open
• Surf Open will be launched in all TS markets
during 2009
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Step 4 - Advertising
Clients
Editorial
Advertising Framework
t
m en
p ay
M- atio
n
g
N avi
Chat
UGC
Games
TV
Music
SurfPort
SurfOpen
27

Step 4 - Mobile advertising landscape
Advertisers
Local ad seller Prime ad seller
Local ad seller
Local ad seller
Prime ad network/platform
Value screen Surfport Surfopen Search Mobile Shop
Mobile Shop
Mobile Shop
Banner ads Banner ads Banner ads Sponsored Banner ads
Banner ads
Banner ads
(+search) (+search) (+search) links ads (+search)
(+search)
(+search)
Customer profiling/ CRM / Datamining / Location info / …”enablers”
28

How to make money in the “new world”
Content
€
Enablers
€
Access & Advertising
Traffic € €
29

This will be the operator role
Clients
Editorial
Advertising Framework
in Mobile world 2.0
t
m en
p ay
M- atio
n
g
N avi
Chat
t
onten
ated C
Ge ner
User
Games
TV
Music
SurfPort
SurfOpen
30

Thank You!
Time for comments
and questions
juhani.kivikangas@teliasonera.com
31