Powering Mobile Business

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Powering Mobile Business

• Mobile Messaging for North America Beyond
• William H. Dudley
• Product Manager, North AmericaCMG Wireless Data
  Solutions

April 2002
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CMG plc

• Is a London- and Netherlands-based 1 billion
  global provider of IT solutions with over 14,000
  employees
• Provides management consulting, outsourcing,
  system development and integration services for
  clients worldwide
• Was established in 1964, and now has offices in
  17 countries
• Is listed on the London and Amsterdam stock
  exchanges
• Continues its plans to grow its North American
  presence through its Wireless Data Solutions
  division

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The Market

• Mobile connections revenues continue to grow
  worldwide

• IP quickly replacing voice in wireline and
  wireless networks (most mobile connections are
  digital today)
• Carriers are fighting declining ARPUs
• Extended services can offset decline through new
  revenue channels
• Success of extended services approach dependent
  on
• Market barriers to entry
• Technology adoption

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Market Barriers

• North America still lags behind Europe and Asia
  in extended mobile services
• Many N.A. markets are still regional
• So many questions still
• How far off is a national or continent-wide
  mobile market? global?
• Can regional carriers learn to play together to
  grow the market?
• What technologies will ultimately win?
• What will the killer applications be?

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Technology Issues for 2002

• Despite many announcements, there is a major
  issue of CDMA vs. TDMA vs. GSM vs. iDEN
• Many carriers support multiple technologies
  within their own networks
• Migration to either GSM/GPRS/EDGE and
  CDMA/CDMA2000
• Previously, lack of SMS Interoperability has been
  biggest barrier to widespread SMS acceptance in
  the Americas. This is now being resolved.
• Defining Messaging Services for increased ARPU
• 3G still not reality for most users
• 2G mobile messaging technology (SMS) is gaining
  acceptance
• 2.5G messaging technology (EMS) being adopted
• 3G messaging technology (MMS) being tested and
  trialed
• Will need capabilities to interoperate among
  multiple generations

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SMS Interoperability Key to Messaging Success

• The ability to send messages to any wireless
  phone is paramount to offering more advanced
  services
• European and Asian operators have seen expanded
  revenues due to SMS alone

Source 3G Mobile July 25 2001, Volume3, nr 14
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Canada was First November 6, 2001
Canadas wireless operators aim to increase data
revenue by enabling cross-network SMS using
services provided by CMG. US carriers must
emulate their northern neighbors to unlock the
multibillion-dollar SMS revenue opportunity.
- Forrester Research, Inc. (11.08.2001)
American carriers are still gearing up for what
they expect to be an explosion of short-message
traffic.
- CNET News.com
The world's most popular mobile data service got
a boost on Tuesday when Canada's four wireless
operators said they would connect their systems
so that all 10 million subscribers can send text
messages to each other - Reuters
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Canadian Commercial Results So far

• On April 2nd, the CWTA announced commercial
  availability of inter-carrier SMS between the
  four major Canadian carriers.
• In the 1st 20 days, this resulted in roughly a
  20 increase in the number of inter-carrier
  messages between those four carriers.
• All messages were Mobile Handset Originated
• Heaviest traffic seems to be between the hours of
  1000PM and 0100AM and 0200PM and 500PM.

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An Explosion of SMS Interoperability Services

• 11/19/2001 ATT Wireless First to Break the
  Carrier Barrier
• 02/27/2002 Cingular to Offer Text Messaging
  Without Boundaries
• 03/01/2002 VoiceStream Expands Two-Way Text
  Messaging Service
• 03/19/2002 New Inter-carrier Messaging Solution
  for Sprint to Drive Text Messaging Growth in U.S.
• 04.09.2002 Verizon Wireless Deploys Platform To
  Manage Inter-Carrier Text
  Messaging Traffic
• In the United States

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Third Party SMS Interoperability Solutions

• Three Inter-Carrier Vendors, or ICVs, will carry
  the majority of the North American traffic.
• All of North America should be interconnected by
  End of June, 2002.
• Clear advantages to this model
• Interoperability vendor works as a third-party
  intermediary between competitive carriers.
• With Carrier support, multiple interoperability
  vendors are interconnecting their networks for
  even greater coverage.
• Strong business model for both carrier and
  vendor.
• CTIA, CWTA, SMS Forum are supporting this effort
  and providing support.

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North America Inter-Carrier SMS Providers

• CMG Canada 95 coverage
• Bell Mobility - Canada
• Microcell - Canada
• Rogers ATT Wireless Canada
• TELUS Mobility - Canada
• Inphomatch U.S.A. 47 coverage
• ATT Wireless - USA
• VoiceStream Wireless - USA
• Verizon Wireless - USA
• Illuminet/MobileSpring U.S.A 31 coverage
• Sprint PCS USA
• Cingular Wireless USA

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North American Inter-Carrier SMS
Microcell
Telus Mobility
CMG
Rogers ATT
Bell Mobility
Cingular Wireless
Other U.S. Canadian Carriers (TBA)
VoiceStream
MobileSpring/Illuminet
Verizon Wireless
Sprint PCS
InphoMatch
ATT Wireless
Other U.S. Carriers (TBD)
Legend
Typically SMPP over TCP/IP (Dependent upon
agreed to protocol with carrier)
Projected interconnectivity by End of June, 2002
SMPP over TCP/IP
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Mobile Messaging and Instant Messaging

• Growing in popularity
• In the U.S., VoiceStream Wireless is marketing
  AOL Instant Messaging on their wireless phones
  and is selling Nokia 3390 Gold handsets with an
  AIM client installed.
• North America is the worldwide leading user of
  AOL IM Some analysts say that AOL / SMS
  interoperability will also drive SMS traffic.
• Most other carriers offer Mobile AOL through
  either SMS or WAP.

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Taking SMS Interoperability Global

• CMG is working on numerous Inter-Carrier SMS
  deployments in South America, Europe, and Latin
  America.
• Brazil TCS and Global Telecom
• Brazil Maxitel and Telebahia (Telefonica
  group)
• Brazil Over 5 million wireless subscribers now
  enjoy inter-carrier SMS
• CMG is working with many other carriers in South
  America to provide inter-carrier SMS.
• The larger Global Carriers are taking note
  interconnecting their properties.

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The Wireless Messaging Industry Players SMSC
Market Share
Source Merill Lynch Research (2001)
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Tele- phony
Pull
Push
Wireless Service Broker
Internet
Cellular
Multi Media Messaging
Secure
Unified Messaging Commu- nications
Location
Mobile Messaging
Wireless Service Broker
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• CMGs Flagship SMSC Line
• Full Support for TDMA, CDMA, GSM, GPRS/EDGE,
  UMTS, CDMA2000
• Multi-Stack SMSC
• Inter-SMSC Router Achieving SMS
  Interoperability
• CMG provides both Standalone Hosted Solutions
• Integration Capabilities for SMS-based Service
  Providers
• Instant Messaging Platform Integration
• Full Support for Enhanced Messaging
• Integration with our Query Reporting Platform
• Integration with Payment Broker

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CMGs Hosted Inter-Carrier Solutions

• Enables connectivity to all technologies (iDEN,
  CDMA, TDMA, GSM, GPRS, UMTS, WAP-based Messaging
  and CDMA 2000)
• Supports SMPP Release 3.3, 3.4, and SMTP
• Carriers can update their own numbering plans
  supports wireless number portability
• SMSC/Carrier profiles
• Message conversion, segmentation
• Creation of billing records (CDRs)
• Simple billing models based on inter-carrier
  message volume
• Standard SNMP Alarms available to carriers as an
  option
• Flexible status and traffic reports delivered to
  carriers
• High-speed, redundant IP connectivity to all
  carriers
• The ISR is based on CMGs very successful,
  flagship SMSC product

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Mutual Benefits CMG Interoperability Services

• Increases mobile messaging revenue stream
• Low dependency of other carriers
• Additional revenue from other carriers
• Low risk and low operation costs
• Product has EVOLVED from proven technology
• ISR is a Long-term and strategic CMG product
• CMG can provide other, complimentary products
  SMSC, Wireless Service Broker, Multimedia
  Messaging

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Our Products
Our Services

• PROFESSIONAL SERVICES
• Systems Integration
• Solution Configuration
• Solution Deployment
• Solution Launch
• SUPPORT SERVICES
• TRAINING SERVICES

• Wireless Service Broker
• Short Message Service Center
• Inter-SMSC Router
• Cell Broadcast System
• Unified Messaging/Communications
• Multimedia Messaging Service Center
• EPPIX Customer Case and Billing System

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Our Portfolio
Users
Directory Server
Unified Communications
Cell Broadcast System
Real-time Analysis Query Reporting
RAS
Video Audio Streaming / Conversion
Inter-SMSC Router
GGSN
Provisioning Interface
Payment Broker
Virus Spam Control Center
Firewall
Secure Service Broker
Location Service Broker
External Applications
Applications
Framework
IP-based Connectivity
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William H. Dudley Product Manager, North
America Wireless Messaging Products 15303 Dallas
Parkway, Suite 1140 Addison, Texas
75001-4409 972.702.7520 bill.dudley_at_cmg-usa.com
www.cmg.com