This document discusses the opportunities for voice and search technologies to increase revenues from value-added services (VAS) in emerging markets. It outlines the large addressable market in countries facing issues like illiteracy and limited infrastructure. Two new segments are described - an existing saturated market and an upcoming segment of new, rural consumers. Speech and messaging applications tailored for local languages could drive adoption for this new segment. The document also examines the potential for services like agriculture information to provide additional income. Finally, it introduces Nuance's speech recognition and voice search technologies as ways for operators to simplify access to content and services in emerging markets.

1. Speech & Search – Impact on VAS Revenues
MOMO Bangalore
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2. Emerging Markets Landscape
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3. Closer Look on the Emerging Markets
Total Addressable Market = 455 million
Common Issues
On mobile phone adoption & usage Limited
Can I increase my
income through my Cash Flow
Illiteracy
phone? LOW COST! Limited Mobile
Network Coverage
Multiple
Geographic Price
Challenges Languages
Sensitivity
Different SMS > Voice Calls
Information Needs Prepaid > Postpaid
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Market data from Vital Wave™ Consulting

4. India’s Existing and New Mobile Market Segments:
Existing and Upcoming Segments
Existing Market Segment – want more New Upcoming Segment – the next
• Saturated market: mix of Billion
business and youth • New consumer: mix of urban and rural
• Future needs go beyond Voice • Needs are for low cost handset and
and P2P SMS voice
• “Give me more” • “Connect me”
• By 2011 • By 2011
– will grow to 150 million in years, at – will grow to 500 million in 3 years,
CAGR of 15% at a CAGR of 35%
• Driven by data services • Driven by Voice
– complement with superior user – enhanced with income-increasing
experience data services and infotainment
– support for rich media and user – support for local languages and
generated content voice navigation
• VAS offering - Search • VAS offering – speech and sms
based applications in vernacular
languages
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5. VAS and Rural Telephony – The UpComing Segment
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6. Different Approach for Low-Income Markets
Subscriber Basic Needs Appropriate Mobile Solutions
• Coolness/status • Phone design/colors, ringtones
Wealthy
• Individuality • Ringtones, emoticons, wallpapers, personalized screen themes
• Fun/entertainment • Gaming, watch TV/movies, listen to music/radio, download
This is the new
This is the news/information over the mobile
market!
• Security • Insurance
new market!
Middle Class
• Belonging/communications • Text (SMS/MMS, IM, Bluetooth), photo exchange, social networking
• Time with family • Conducting financial or other transactions over mobile
• Money • Lower voice and service costs (new business and financing
Subsistence
models)
Above
• Employment/job
opportunities • Mobile education applications/modules
• Education/skills • Access to job opportunities, vocational skills programs
• Aspirations / status symbol • Agriculture/economic development solutions
Subsistence
• Basic education • Public service announcements (partner with Gov’t/NGOs)
and below
• Basic health
• Food, water, shelter
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7. Example of UpComing Segment: The MeraNokia
Agriculture service in Maharashtra
Target segment Pain points Potential Services
Lack of basic
Customized
information
agriculture
Prices, weather, information
inputs, techniques
Total workforce
Agriculture Lack of additional Local information
803M income opportunities and news
516M
58% 43% Suppliers / buyers Product information
Info dissemination messages
Note: 2008 data Source: FAO database; China rural statistical yearbook 2008; BCG analysis 7

8. Opportunity in Rural – the untapped market
• A huge proportion of the population is illiterate
– Growth from rural sector (700m people) eg. Vernacular messaging and speech in vernacular
languages
– IFFCO/Airtel venture; ITC E Choupal; Reuters Market Light.
– According to Gartner, the village is not what it used to be: 70% of India’s population, 56% of
income, 64% of expenditure and 33% of savings come from rural India.
• Mobile information service for farmers
• Reuters-RML has 300K three months subscription; Nano Ganesh (mobile information portal) at USD
15 to USD 30 has 50000 customers
• Challenge: Not enough handsets with vernacular messaging capability
• Challenge: None of the speech engines in the market currently is tuned for rural dialects; Nuance has
Hindi and Indian English; Indian rural dialect should be available in NMSP and NVC
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9. India – Linguistic Geographies
Punjabi
Bengali
Gujarati
Marathi
Hindi
Kannada
Malayalam Telegu
Tamil
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10. Relevance of Search
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11. Current Mobile Landscape – Operator Challenges
• Aggressive voice pricing plans have been placing downward pressure on
subscriber ARPUs
– Bharti Airtel and Reliance recently announced unlimited local, long distance and
roaming voice plans
– Operators seek to leverage mobile data services to offset declining voice ARPU
• Mobile internet consumption is evolving beyond brief transactions (weather,
sports scores), to more time intensive interactions (mobile banking, travel
planning, social networking)
– In Mar 08, Reliance, along with Corporation Bank, launched mobile banking
services that enable account balance inquiries, check status queries and fund
transfers via mobile handsets
– Operators desire efficient marketing vehicles to promote new data value added
services
• Existing consumer frustration with accessing Customer Care cells (primarily
due to occasional network congestion)
– Frustration heightened among Pre-pay subs (_% total subscribers) who experience
longer wait times in Customer Care call queues
– Operators seek to improve subscriber satisfaction while lowering Customer Care
costs
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12. Market View:
Addressing a Growing Problem
Demand for “Feature Fatigue”
Advanced Features
#1 complaint: “Too many
functions I did not use”1
Consumers want
• More features 89% of users: Never use
• More data access or don’t know how to use
mobile search2
• More productivity
84% of users: Want
features that save time3
Simultaneously On the Rise
1 CMO Council: Feb. 2007 Global Mobile Mindset Audit™
2 Mobile Marketing Association
3 eBrain Market Research, July 2006
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13. What if?
• You could increase traffic to your portal by simplifying access to it...
• You could efficiently expose value added content and services to your
subscriber base to drive awareness and trial...
• Increase your mobile advertising revenue by delivering more impressions
to ad supported pages on your portal…
• You could migrate transactional data users to higher ARPU data plans by
promoting deeper discovery of premium downloadable content and
incentivizing impulse purchases…
• You could improve customer satisfaction and reduce churn by
empowering your subscribers to maximize the utility of feature rich
handsets and on your network…
• Reduce your CRM costs by diverting Customer Care calls to your portal
and enabling account self-service solutions…
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14. T9Nav - Simplifying Search at the Key Press Level
Example: Locate clock settings
•Spell “TIME”
•Press: 8 (tuv) 4 (ghi) 6 (mno) 3 (def)
•Choose “Clock (Time)” from the list
87% of users say T9 Nav makes
finding features easier.*
*2007 Research conducted by Strategy Analytics
Drastically reduces keystrokes needed to find
any feature, any content
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15. T9 Nav™ & the Consumer
Slow Navigation • Problem
76% of users: Would – Content searching (WAP browsing) is
abandon their mobile often slow and unsuccessful
search session after two
network connections1 • Solution
1 ActionEngine usability study - 2005
– Deliver targeted search terms
T9 Nav “Cuts the Deck” (keywords) intermixed with relevant
content in results lists
• Frequently queried content categories
are easily accessed (maps, news,
weather, etc.) with links that “cut the
deck”
• Since the keywords are stored on the
handset, they are returned
instantaneously, requiring only one click
to take the user directly to the content
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16. T9 Nav™ is Targeted Discovery
• Problem
– Consumers don’t use or buy what they can’t
find
• Solution
– T9 Nav™ unobtrusively promotes content
and services to users while they perform
normal handset tasks, like making phone
calls
• Discover billing information keywords while
dialing a phone number
• Discover mobile banking service while
searching for a calendar entry
• Discover a new mobile blog while silencing
your ringer
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17. Relevance of Search & Speech
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18. The Challenge of Mobile Search
Too Many Clicks!
Mobile Content, Application and Services
Must Be Quicker to Access and Easier to Use
Content Search Example
6 24 92
Clicks Clicks Clicks
0 0 3 5 0 1 2 5 0 3 1 0
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19. NVC 2.0 Solution Features
Messaging
Safely and Efficiently Dictate and Listen to e-mail and Text Messages
“What time is
the movie
Message Dictation tomorrow
“Send Text
Message” • Dictate e-mails and text messages smiley-face”
• Create e-mails of any length
• Higher accuracy/Reduced latency
• Easily edit messages before sending
“Read Message Reader
Message” • Reads back e-mails and text
messages with TTS
“Meet me at
• Natural-sounding dialog Powered by 9:00 in front of
Nuance TTS technology the theater”
“Forward
Inbox Navigation
To Patrick” • Check e-mails and navigate inbox
by voice
• Reply, forward, and delete messages
with simple voice commands
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20. NVC 2.0 Solution Features
Search, Web, Content
Quicker access to content and easier use with intelligent results
“Find “Find “Find
Business” Music” Movies”
Business Search Content Search Entertainment
• Search local • Search music, games, • Find movie listings and
business listings video and other other entertainment
• Speak your business premium content information
location or use GPS • Leverage Nuance’s
coordinates 1.2 million track music
search grammars
“Find “Get “Web
Directions” Weather” Search”
Directions Web Content Web Search
• Access navigation • Access Web content • Open and free-form
applications and maps including news, Search for information
• Speak destination weather, and sports through a carrier’s
parameters and be preferred search engine
taken directly
to the listing results
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21. Examples of Industry Research
Examples of Data We have
• 24% cell phone users desire voice-activated dialing on their next cell phone
– - Harris Interactive
• Navigation users: 46% use TTS and 19% use speech to input destinations
– ABI Research
• Customers are willing to pay more for devices that have improved usability
features such as predictive text
– Strategy Analytics Study
• Speech SMS usage for speech customers up 40% by month 8 of usage
– NVC 1.0 data
• After a few months of use, attrition rates for speech subscribers who pay
$6.00 per month drops to below 5%
– NVC 1.0 data
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22. Nuance Open Voice Search
Fully Automated Speaker Independent Technology
Nuance Open Voice Search allows mobile consumers to search for
content and information by simply speaking their request
“Say anything” search capability: enabling open-
ended search queries across multiple domains
Broad domain coverage: includes business listings,
music and content, and frequent web searches
Links to any search engine
Broadest device support, including smart phones and
feature phones
No training or enrollment required
iv e! Uniquely available with the “one button” access of NVC
l us
E xc 2.0
A new, more compelling
consumer search experience 22

23. Nuance Open Voice Search: NVC 2.0
The Easiest Experience…On All Devices
NVC 2.0 users access OVS for business listings, content and
mobile web search with just one click from phone idle
– “Call Scott” and the phone will dial Scott
– “Send Text to Scott; I’ll be 5 minutes late to the
meeting” and a text message addressed to Scott
ready to send will appear
– “Find ringtones; The Rolling Stones Satisfaction”
and the Satisfaction ringtone will be available for
download
– “Search Web; How many calories are in a
cheeseburger” and your browser will provide links just
like a text based search engine result
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24. Nuance Open Voice Search
Nuance Unveils Voice Search Prototype on iPhone
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25. Nuance Overview
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26. Who is Nuance?
• Leading provider of speech,
text input and imaging
solutions
• Founded in 1992 and publicly
traded on NASDAQ (NUAN)
• Headquartered in Boston,
Mass. with 5,200 employees
• 2009 revenue projected to
between $1.01 and $1.13
billion, up from $918.8 million
• More than 1000 filed and
pending patents
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27. Four Key Business Divisions
Enterprise Mobility and Dictaphone Imaging
Customer Services Healthcare
Improve customer voice search, Manual transcription PDF and document
care through messaging and in healthcare, workflow solutions
improved customer control capabilities legal and
self service for professional
mobile environments applications
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