Wireless Information Network September 2003

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Wireless Information NetworkSeptember 2003
Next Generation Mobile Services for the Marketing
Industry
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MMS Demonstrations

• Please note
• 1) Any demonstrations used in this presentation
  are used for example purposes only.
• None of these services are live, nor are there
  any plans to launch them as consumer-facing
  services.
• They serve purely as a proof of Wireless
  Information Network Ltds capability for sending
  marketing messages to a mobile phone via MMS.
• In no way do they represent the views or
  feelings of the companies concerned.
• 2) These demonstrations are currently available
  only to subscribers of O2 or Vodafone who have
  handsets that have been enabled for MMS and GPRS
  usage.

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Agenda

• 8.50am Personal Introductions
• 9.00am Purpose of Seminar
• 9.15am What is MMS?
• 9.25am Strategy Analytics
• The MMS Market Today
• 9.45am Possible Campaigns and Case
  Studies
• 10.15am Q A

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Personal Introductions

• Name
• Company
• Title
• Reasons for Attending

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Purpose of the Seminar
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To equip forward-looking advertising and
marketing executives with the latest information
available on MMS and next-generation mobile
technologies and encourage them to start
developing strategies for the deployment of
campaigns.
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1. Why should WIN be telling us about this?

• UKs Leading Developer and Facilitator of Mobile
  Messaging Services for the last 14 years
• Operator of one of the UKs Most Robust and
  Reliable SMS Gateways Used by
• Operators and Telcos
• Media Corporations
• Marketing Agencies
• Blue-chip Organisations

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Why should WIN be telling us about this?
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Why should WIN be telling us about this?

• Profitable and Well-Financed Organisation led by
  an Experienced Management Team
• Trusted Preferred Partner to all 4 of the Major
  UK Mobile Operators

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Why should WIN be telling us about this?

• In late 2002, WIN purchased its own MMSc enabling
  it to send MMS messages to any mobile network
  worldwide
• WIN has spent the last 9 months researching and
  developing message delivery and formatting
  techniques to provide the best possible
  user-experience

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2. Why are they telling me now?

• MMS is Fast Approaching Tipping Point
• The Technology is Ideally Suited to the
  Marketing Industry
• Handsets are already in the hands of
  high-spending, early adopters
• Brands are Already Questioning and
  Experimenting
• Time to Develop Strategies

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What is MMS?
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Key Features
A New Channel for the Automatic and Immediate
Delivery of Rich Content to a Mobile Handset

• Extended Text
• Photos
• Animations
• Sound

DEMO 1 To see for this for yourself, please try
sending FEATURES to 82222.
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Limitations of MMS

• Messages must currently be limited to 30
  KB of data
• Audio clips are non-standard and must be
  kept very short
• All consumers must possess an MMS handset
• Handsets must have been enabled by the
  operator
• Cannot currently be sent to T-Mobile.
• Special Permission must be received from
  Orange

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The Future

• New technologies will allow the
  transmission of streamed video via MMS
• Latest audio compression tools will allow
  effective use of audio in marketing and content
  messages
• Limitations on content type and file size
  will be relaxed
• Handset penetration will become
  mass-market
• Full cross-network capability by Q4 2003

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The MMS Market Today
Nitesh PatelSenior AnalystStrategy Analytics Ltd
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Content To Drive US5 Billion MMS Opportunity

• Sept 2003

Nitesh Patel, Senior Analyst, Global Wireless
Practice 44 1908 423621
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Agenda

• Strategy Analytics Global Wireless Practice
• Current Cellular Data Usage
• MMS Status W.Europe
• MMS Forecasts Devices, Users, Revenues
• Conclusions

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Global Wireless Practice
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Wireless Internet Applications Personalisation
Major Non-Comms Revenue Source
Total Data Revenues US2.6B
P2P Messaging Revenues US1.9B (75)
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Wireless Internet Applications Content Revenues
Increasing

• TV voting and interaction between SMS and other
  well known media has increased profile of SMS
  and.
• Purchasing premium rate content such as
  ringtones, icons, via SMS is becoming
  increasingly popular.
• Orange example suggests that average spending on
  content services is 0.80/subscriber/month.
• D2 Vodafone in Germany has suggested that 30 of
  its total SMS revenues are premium content.

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Wireless Internet Applications MMS Deployment
Status Q3, 2003

• MMS services introduction by all major GSM
  operators in W.Europe.
• Domestic MMS interconnect between carriers has
  occurred in major W.European markets, such as the
  UK, France and Germany. Carriers in these markets
  are actively developing international MMS
  connectivity.
• Operators such as Telenor have opened their MMS
  platform up to third party content providers to
  deliver their MMS content. Other major operators
  are also opening up.
• Operators have chosen to market MMS as Photo
  Messaging in order to draw consumer awareness.
  Most have launched additional MMS based services
  such as MMS photo albums, MMS photo developing
  solutions, MMS wall paper, MMS games and MMS news
  and information alerts.
• Most operators have extended their free MMS
  campaigns. In order to promote services to non
  MMS users and boost low usage figures.
• 3 is the only operator in the UK to have launched
  video messaging over MMS to date.

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Wireless Internet ApplicationsMMS Usage
Statistics

• P2P MMS usage is slowly gathering momentum,
  although operators such as Telenor and Mobistar
  have had to offer free MMS in order to raise
  usage levels.
• In Japan NTT DoCoMo has reported an average of
  between 3-4 messages/photo messaging enabled
  handset in June 2003, through its I-shot service.
• Norwegian operator Telenor has reported that
  between May and July MMS messages have increased
  from 160,000 to 1.35 million per month. MMS was
  been offered for free from 1st June, 2003.
• Belgian operator Mobistar has reported that users
  are sending 15 MMS/Month/User in June 2003 and
  that 20 of MMS was going to its rival Proximus.
  Handset packs contain 100 free MMS over 10
  months.
• In May 2003 Telecom Italia Moviles reported that
  on average MMS handset owners were sending 6 MMS
  messages and receiving 9 MMS during the month of
  March. It also claims that its current MMS
  handset owners are currently spending more on
  data services than non MMS handset owners.

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Wireless Internet Applications Lessons From Asia
- Photo Messaging Prospects
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Wireless Internet Applications Basic MMS Pricing
Levels
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Wireless Device Strategies Handset Sales by
Feature 2001 - 2008
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Wireless Internet Applications W.European MMS
Handset Installed Base

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Wireless Internet Applications MMS Forecasts
W.Europe
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Wireless Internet Applications MMS Revenue
Forecasts W.Europe
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Wireless Internet Applications MMS Key Point
Conclusions

• MARKET IS SHAPING UP WELL
• Significant momentum by both operators and
  vendors to drive MMS handsets into their
  subscriber bases
• Issue of interoperability between networks will
  be resolved entirely in the next 12 months
• Decent levels of up-take so far, given the low
  number of MMS handsets currently.
• BUT
• MMS handset interoperability needs to be
  resolved
• Speed of deployment of MMS to low end prepaid
  users
• Operators will face pressure on device subsidies.

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What Types of Campaign can MMS be used for?
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Peer-2-Peer Messaging (P2P)
Heavily Pushed by the likes of Vodafone Live! and
O2 Active

• Limited Uses
• Photo Messaging
• Extended Text Messages
• Birthday Greetings
• Business on the Move
• Viral Campaigns
• (following email phenomenon)

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Application-2-Peer Messaging (A2P)
Offers information and content delivery
opportunities. Yet to be exploited.

• Limitless Uses
• Advertisements
• Direct Marketing
• Barcodes and Vouchers
• Detailed Product Information
• Sponsored Content Delivery

• Postcards / Greetings Cards
• Cartoons
• News Services
• Travel / Weather Information
• Directions / Mapping

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Examples of A2P Campaign Types

• Request for More Information Campaign

Scenario High-spending businessman sees a
roadside poster for the latest Audi A3 from his
taxi window. He likes the look of the new car
and has promised his wife an upgrade. So he
makes a mental note to Audi visit the website
when he get home tonight. Then he sees the
message in the bottom right hand corner
For more information, text AUDI to 82222.
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Example 1 - Audi A3
For More Information text AUDI to 82222
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Examples of A2P Campaign Types

• Content Alerts Service

Scenario A film fanatic is leaving the cinema
and is handed a flier by a Universal Pictures
representative. For free pre-release information
on the upcoming Peter Pan movie and all Universal
Pictures feature films across the next 12
months, just text PETER to 82222 Consumer
receives one message a month informing him of a
upcoming release with synopsis, cast lists,
running time information etc.
Result Over the course of the next year, the
film-goer watches 30 more films at the cinema,
including 4 extra Universal movies.
For More Information text AUDI to 82222
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Example 2 Peter Pan 2003
To see this live demonstration please send the
text message PETER to 82222.
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Example 3 Get Fit By Christmas Sponsored by
Virgin Active
Weekly fitness plans sent to your mobile to get
your body in shape for Xmas. Register online or
send FITNESS to 82222.
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Peer-2-Application Messaging (A2P)
Opportunities to integrate mobile with other
media channels and interact better with consumers

• Uses
• Event Interaction
• Customer Feedback Route
• MMS Postcards
• Innovative On-Pack or Website Promotions

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Example 4 - Cadburys Creme Egg

• How do you eat yours?
• Send a photo of you or your mates scoffing on a
  Cadburys Creme Egg to CremeEgg_at_cadburys.com and
  you could be meeting the cast of Coronation
  Street in LA!
• The most original and interesting photos will be
  shown on the Cadburys Creme Egg website.
• If yours is one of 10 best pictures selected by
  Tina Hobley from the Street, you will be jetting
  off with a friend to visit the set and the cast
  on the Xmas special in California.
• So, there's no excuse for not buying one - the
  only question then is, "How do you eat yours?"

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MMS Case Studies

• Premium TV / Empics
• Vodafone / Radio 1
• Yeoman Group

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Sports Alerts

• First cross-network MMS trial in the UK
• Pictures and enhanced text commentary delivered
  to the handset within minutes of the action.
• Half-time and Full-time round ups with photos
  from tomorrows back pages
• Initial trials with Nationwide League extended to
  two of the premier clubs

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Example Message Layout
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Supported by
PARTY Like The Stars Send a Picture Message
of Yourself with your Name to vodafone_at_mmswin.co.u
k before 5pm Today for a Chance to Win Exclusive
VIP Area Access with Hospitality for You and a
Mate. 15 Pairs up for Grabs
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Supported by
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Yeoman Group

• Yeoman is the leading provider of traffic and
  navigation information
• Looking to add value-added mobile services using
  existing content
• Traffic Maps summarise major delay spots on
  subscribers journey
• Destination Maps - specific maps of requested
  destination down to individual buildings
• Route Finder - colour maps, detailed driving
  instructions, journey distance and duration
  information and traffic alerts
• Services aimed at roadside assistance and
  directory enquiry organisations

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Example Messages
JOURNEY DETAILS From Bude Holiday Park, Maer
Lane, Bude, CORNWALL, EX23 9EE
Traffic incidents A 10 minute delay on the M5,
from Junction 26 to 25 caused by heavy traffic.
Driving Directions Start on an unnamed road with
Bude Holiday Park to your left. Continue for 400
yards. At the end of the road, turn
right. Continue for 1 mile through POUGHILL. Turn
left onto CHURCH STREET. Continue for 90 yards.
At the end of the road, turn left.
To The Feathers, 5-7 Wote Street,Basingstoke,Ha
mpshire,RG21 7NE
Departure 02-Jun-2003 1015 Expected arrival
02-Jun-2003 1339 Distance 184.7 miles Duration
3 hours 26 minutes
Description Your journey will take you along the
A361, heading East, the M5 to junction 25, the
A303, heading East past ANDOVER, and the M3, into
BASINGSTOKE exiting at junction 6.
etc
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For More Information Contact

• Ben King
• Business Development Manager
• Wireless Information Network Ltd
• benking_at_winplc.com
• Tel [phone]