Innovate – Monetizing Mobile Broadband and OTT Speaker Michael Martinsson, Fixed Broadband and Convergence Market Category Driver. Presentation from the Broadband World Forum, Amsterdam, 2012.

1. Monetize broadband
and over-the-top
Michael Martinsson
Head of Marketing, Fixed Broadband & Convergence
Ericsson
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

2. Coming up with a
great idea is just
the beginning of
innovation
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

3. now
mobile data growth
6.3 billion doubled between q1 2011
mobile and q1 2012
subscriptions
35 Billion apps
downloaded
3g > 1 billion q2 2012
50% of smartphone traffic
on ericsson networks
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

4. Sharing global experience
Ericsson Business
Consumer Logics
Lab workshops
Partner in Traffic and
Operator Market Data
Innovation Report
Labs
Monetizing Mobile Broadband andCommercial in confidence | © EricssonEricsson AB 2012
Monetize Broadband and OTT | OTT | Commercial in confidence | © AB 2012

5. Innovation. growth.
MARKET DEVELOPMENT DIVERSIFICATION
New market
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing market
Existing Products New Products
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

6. Innovation. growth.
MARKET DEVELOPMENT DIVERSIFICATION
New market
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing market
Existing Products New Products
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

7. Market penetration
Exchange for services Win airtime Lower price
› Entel customers collect › Turkcel callers hear ad › Telering users receive
points when using instead of ring tone 2 to 3 ads by SMS/
operator services when calling users MMS on weekdays
I got MBB
for my
points I accept to
Win free
Airtime by receive ads to
accepting to lower my bill
receive ads
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

8. Innovation. growth.
MARKET DEVELOPMENT DIVERSIFICATION
New market
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing market
Existing Products New Products
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

9. Product development
How much data volume How fast can you
download or upload?
can you use?
What applications (music, video, etc) can you get?
Volume Time Location Content Terminal Speed
Which terminals
How long and/or when
can access data service?
can you use data service?
Where can you use data service?
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

10. Shared data plans
Monthly Account Access Monthly Line Access Per Device
Example: Unlimited Talk & Text with Example: Monthly access fee per
8 GB Shared Data device
$40 $30
$20 $10
USB modem
Mobile Hotspot
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

11. Apps and cloud services
Unlimited social network Premium music service Premium app packages
› Telcomcel customers › Telia customers buys › 12 Swapables today. 1-
pay a flat fee per day, a Spotify premium 2 included in base
week or month subscription bundled packages. Can be
with Telia access changed every month.
› Zero rated data
All I want is to
stay close to my
Panther 26 Tariff
friends I bring my Samsung Galaxy S2
jukebox 200 minutes
on the go Unlimited Texts
750 MB of Internet
Two Swapables
£26 a month
Source: Teliasonera.com; Telkomsel.com; Orange.com
Monetizing Mobile Broadband andCommercial in confidence | © EricssonEricsson AB 2012
Monetize Broadband and OTT | OTT | Commercial in confidence | © AB 2012

12. Innovation. growth.
MARKET DEVELOPMENT DIVERSIFICATION
New market
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing market
Existing Products New Products
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

13. Market development
Connected Cars Personal Navigation Fleet Management
› GM OnStar and › Vodafone provides › Orange UK provides
operators offers TomTom a single service providers with
connected services to global SIM SIM cards and
6 million cars connectivity
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

14. Innovation. growth.
MARKET DEVELOPMENT DIVERSIFICATION
New market
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing market
Existing Products New Products
Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012

15. Open-up for innovation
Content / Service Provider
Broker
Network Operator
Platforms Partners
Platforms
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

16. Let’s re-think business
MARKET DEVELOPMENT DIVERSIFICATION
New market
Premium
Invisible Management
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing market
Add One-trick- Here &
Incentivist on pony Now
Existing Products New Products
Monetize Broadband and OTT || Commercial in confidence || © Ericsson AB 2012
Monetize Broadband and OTT Commercial in confidence © Ericsson AB 2012

17. Monetize Broadband and OTT | Commercial in confidence | © Ericsson AB 2012