Mobile Services Evolution Crossing the chasm Sub-Regional Seminar on IMT-2000 Warsaw, October 2-4 2001 1 Crossing the chasm Handset growth vs. Infrastructure growth Market penetration Casual perception of market Chasm With the infra market huge build-out is needed before market is made Traditional take-up rate for handset business Point where mass market can be made because of cost / value balance Time 2 Critical success factors for mobile services Creating value Services Tornados Evolution at Different Clock Speeds Gain End User Acceptance Create Business Model by portfolio of central applications and services with clear value: simple tafiffing and revenue sharing Use Key Technologies as invisible enablers for services 3 Mobile terminal services environment Making the mobile services tornado happen Key user benefits Key applications Key function Key technologies Common transport 4 Mobile, real time, life enhancing, easy and familiar to use, fun and fast Messaging and email Games and personalisation Web content and downloads Content transport and messaging Downloadable applications Content search and access MMS Java xHTML From WAP/WSP to WAP NG (TCP/IP) Our value addition to the mobile services environment Harmonised Client-Server Offering Client Mobile Network/ Connectivity Servers/Middleware Content/Applications 5 Messaging, Browsing and Streaming Synchronising service and technology evolution Example: Mobile Games Evolution Handset games WAP Games GPRS WAP Push xHTML Colour Screens Java based Games Online interactive games Colour Screen MMS Java Graphic Intensive Games Games content streaming Streaming GPS Positioning Terminal Application Platforms Network 6 WAP Gateway Chat & Community Mobile Advertising GPRS NETWORK (always on) Multimedia Messaging Location Based Services WCDMA NETWORK (R’99) Secured Mobile Payment Digital Rights Management R’4 and R’5 Increase ARPU by segmenting service delivery High profitability will come from a balanced services portfolio with effective use of Quality of Service Higher Quality Higher value Higher revenue & profit High impact to Network capacity Service Price WCDMA New Revenue EGPRS Market pressure for lower tariffs and higher quality HSCSD Revenue with standard services GPRS EGPRS WCDMA New Revenue Usage of service - Volume 7 Very low delivery cost Attractive tariffs Very high volumes Higher revenue & profit No/Low impact to Network capacity Lifestyle needs will drive service evolution What can we do today? Lifestyle Needs Service Creation Strategy Total Disposable Income New Revenue Sources Lifestyle Target ARPU Lifestyle Service Offer € Advertising Promotion Mobile Spend Added Value Sell 3G GPRS SMS SMS WAP GPRS WAP > 550 Million SMS capable GSM terminals 8 WCDMA EDGE Clock speeds Example: Messaging 9 PHASE 1: Service Boost Christmas 2001 PHASE 2: Next Phase Services Summer 2002 PHASE 3: Advanced Services Christmas 2002 Based on improved access capabilities, new service features like WAP Push, WTAI Based on MMS capability, xHTML, Color, Java Based on improved access capabilities Drive Mobile Data Growth Increase Mobile Data Usage Increase ARPU Merji Khorchidian +48 601 294 608 Director, Customer Marketing North, Central and Eastern Europe merji.khorchidian@nokia.com 10