GoNext is a mobile internet service provider (MISP) in Israel that has experienced rapid subscriber growth. It provides internet access and content to subscribers over cellular networks. GoNext earns revenue through monthly subscription fees, airtime usage, premium content like downloads and financial services. It localizes content for the Israeli market and identifies popular applications and content to focus on like email, chat, games and location-based services. GoNext avoids pitfalls by working closely with carriers, focusing on mass market usability over technology, and limiting risky business models in favor of steady growth.

1. 1
GoNext
Making a
Mobile ISP Work
Ofer Sheinkin
VP R/D and CTO
Ofer.Sheinkin@gonext.co.il
Comverse
User Forum
2002

2. 2
What is Mobile Internet?
It is not the familiar Internet
Over the cellular phone
It is a Complimentary, Not A
Replacement Service

3. 3
• Popular (High penetration)
• Available at all times
• Personal handset
• Relevant to customer location
• Compact devices which combines
cellular phone + PDA + Internet
Advantages of Mobile Internet

4. 4
• A number of daily connections (3-4)
• Each time for a short period (1-2
minutes)
• Focused search for information
Mobile Internet - Habits of use

5. 5
Company Profile
 Core business
 Ownership
 Content
 Language
 Protocol
 Security
 Hand Sets
 Cellular portal, MISP, PC portal, ISP
 51% Pelephone, 49% Suny.com
 All leading contents on the Internet
 Hebrew, English
 SHTML & WAP
 SSL
 Browser supported cellular phones -
all manufacturers

6. 6
Subscribers
(Thousands(
12
22
39
54
64 70
79
90
100
114
133
151
160
180
190
201
221
245
260
0
50
100
150
200
250
300
sep nov jan mar may jul sep nov jan mar

7. 7
Mobile Internet Users
(Thousands(
11
19
29
37
72
93
101
116
129
161166
181 185 190
200
225
259
272
295
0
50
100
150
200
250
300
sep nov jan mar may jul sep nov jan mar
Extra 35K Users derived
from 1st
month free policy

8. 8
Rapid Subscription Growth Rate
• January 2000 – Decision to Create
GoNext
• July 2000 – ISP License & Commercial
Launch
• December 2000 – 44,000 subscribers
• December 2001 – 201,000 subscribers
• March 2002 – 270,000 subscribers

9. 9
Income Model
1. Monthly payment for MISP services
2. Air time
3. Up2day (content via SMS)
4. Premium content:
• SMS
• Image & Melody Download
• Real time on-line stock quotes
5. Commission for:
• Banking
• e-Commerce transactions

10. 10
Major Applications
• E.Mail
– For every sub. based on his
Cellular No.
– E.Mail Notification
– SMS Delivery through E-
Mail
• Inter Operator SMS
services
• Prerecorded SMS
messages
– including Jokes
• Chat
– Including Amigo Chat – A
Voice Based Chat
• Personalization
• Voice Dial
– from Mobile Internet
– from SMS Messages
• ZaZa Box
– Image & Melody Download
• Up2day
– Information via SMS
• Diary, phone book, tasks,
memos
• Next2u
– Location based servises
• ICQ including LBS
• Personal Mobile Site
Builder
• My Bill
– An Electronic Bill Presentment
service
• Traffic Conditions and
Routes
• Financial Services

11. 11
Content
• Revenue Sharing
with Content
Providers
• Hebrew Content
– including Hebrew
editing
• All the leading
Internet Brands
– in Israel
– and worldwide
– 300 sites in Hebrew
– 150 sites in English
• Simple site design
• 15 new sites every
month
• Push Content
• Strict QA standards
– Before a site is launched
– Periodically
• Possibility to
connect to any site
on the Internet

12. 12
How We Did It?
• A Subsidiary with Mobile ISP /
Mobile Portal focus
• GoNext inside
– Every Handset includes a browser
• Concentrate on the Mass Market
• Provided Localization of the site
to Hebrew, including Hebrew
input & editing

13. 13
How We Did It?
• Identified Market Segments and
optimized content
• Concentrate on “Money Making”
Applications & Content
• Find what the User wants by User
Surveys and Statistics Analysis
• Teach usage patterns using
games

14. 14
Avoid The Pitfalls
• Carriers Move Slowly
– Regulatory Issues
– Service Standards
– Scalability & Multi site issues
• Don’t Focus on Technology Buzz-
Words
– W@P, GPRS, 3G

15. 15
Avoid The Pitfalls
• Weak Handset vendors support
• Don’t Focus on Business Sector
– Early Adopters of Communications, Not
Internet
• Avoid Get Rich Quick schemes
– Limit the initial adoption of the service

16. 16
Thank You
Ofer Sheinkin
VP R/D and CTO
Ofer.Sheinkin@gonext.co.il