Sila Communications
The leading provider of wireless applications
services
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Sila Communications
A leading wireless data solutions provider
Corporate
Overview
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Powerful Asset Base at Formation
Aether
•
•
•
•
IFX
$15mm
Technology license
Strategic marketing
relationship
Reuters
60%
40%
Sila
•
•
•
•
Futures Pager
$22mm
Content agreement
Strategic marketing
relationship
• Dominant European provider of wireless financial information
services, with over 14,000 customers
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Sila
solutions
Sila
Corporate
solutions
Overview
Unmatched Pedigree
• Aether Systems owns 60%
– US-based wireless data specialist with
focus on vertical applications
– Leverage business models,
partnerships, technology
• Reuters Group owns 40%
– World’s largest news and TV agency
with 10,000 stories/2m words daily in
22 languages
– Financial data from 267 exchanges
– Leverage marketing power, especially
with financial institutions
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Aether Systems - the story so far
Wireless ASP Center
· Design/Development · Customer Service · WAP Enterprise
· Network Operations Center · Product Fulfillment
Technology/Software Products
Financial
Charles Schwab
Merrill Lynch
Bear Stearns
Reuters
National Discount
Brokers
Morgan Stanley
Dean Witter
FX
TD Waterhouse
Cyberbills
Transportation
Supply Mgt.
Office Depot
MAC Papers
Physician Sales & Service
NuCo2
Suntory Water Group
Response Services (AAA)
US Postal Service
Home Grocer
WebVan
MCI (VANS Group)
Supply Line
Ferguson Enterprises
· AIM · Unified Messaging · Wireless Web Delivery
· ScoutSync · ScoutWeb · ScoutIT ·ScoutBuilder
Field
Sales/Service
Seibel Systems
Sony
Coca Cola
Oracle
Papel Giftware
AC Nielson
Extensity
Security Source
Procter & Gamble
Healthcare
Becton Dickinson
Wake Forest
University
Medtronic
Sonic Innovations
WIRELESS CONSUMER SERVICES
OmniSky · BellSouth Wireless · Palm.Net · Nextel · Metrocall (Inciscent) · Bell Atlantic Mobile
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Other Industries
GTE
US DOD
Northrop Grumman
NowSpeed
AT&T
Spyglass
MCI/Worldcom
Sila
Corporate
solutions
Overview
Market
opportunity
Pan-European Presence
City
Employees
London (Group)
93
London
32
Paris
3
Lisbon
1
Madrid
10
Amsterdam
Copenhagen
Ireland
Stockholm
4
Oslo
3
Helsinki
2
Singapore
4
Denmark
France
Switzerland
Portugal
Finland
Estonia
Latvia
Lithuania
United
Kingdom
Netherlands
Belgium Germany
Luxembourg
21
9
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Sweden
2
Frankfurt
Totals
Norway
Italy
Spain
184
Serviced countries
Data Centre location
Office locations
Planned Data Centre location
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Market Opportunity and Position
The Emerging Value Chain
Applications &
Services
Middleware & Enablers
Network & Equipment
Service
Enablers
Embedded
Handset
Software
Digital
Content
Server-based
Infrastructure
Wireless
Networks
Network
Infrastructure
•
•
•
•
•
•
Paging networks
•
Wireless LAN
•
Wireless circuit data •
Two-way packet data •
Access
Devices
•
•
•
•
• Stock quotes, news,
directories, weather
reports, flights
schedules, etc.
WAP services & gateways
Wireless e-mail gateways
Transactional integrity
Security & encryption
• Wireless network
operators
• Voice & data services providers
Cellular phones
Two-way pagers
Wireless modems
PDAs
Handheld computers
Laptops
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• Wireless site design
• Wireless integration
and hosting services
• Handset mobile
operating systems
• SIM-based applications
Mobile
Portal
• Content
aggregation
• M-commerce
Sila
Corporate
solutions
Overview
Market
opportunity
Sila Market Opportunity
Wireless: from Voice to Data
Wireless Traffic: Voice vs. Data
Wireless Traffic by Application
7.000
6.000
3.064
5.000
4.000
1.651
3.000
Voice
2.024
2003
1.295
2.863
2001
738
2000
0
51
3
390
1999
1.000
3.935
219
2002
2.000
Data
Source: Merrill Lynch estimates
Data Traffic on Mobile Networks to Account for
45% of Total Traffic by 2003 (vs. < 2% Today)
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100%
80%
60%
40%
20%
0%
1998 1999 2000 2001 2002 2003
713
1998
Gigabytes of Traffic/Day
8.000
Other
Inform ation Based
Location Based
Video
Mobile Com m erce
Web Access
E-Mail Messages + Graphics Attachm ent
E-Mail Messages + Ordinary File Attachm ent
E-Mail Messages
SMS
Voice
Source: Merrill Lynch estimates
Basic Mobile Data Service Take up Will Lead to
Generation of New Services (Information,
Communications, Entertainment and
Transaction)
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
SILA Solutions Focus
1. Outsourcing corporate wireless data solutions
–
–
–
–
Extending mission critical applications to mobile devices
Design, implementation, hosting, support
Future proof approach: network, device, security agnostic
Initial focus on financial services (e.g. wireless trading)
2. Providing wireless carrier services
–
–
–
–
Loyalty services as first entry point
Attract/retain high ARPU – low churn subscribers
SIM card-based applications
Portal services and applications
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Sila
solutions
Sila
Corporate
solutions
Overview
2
Market
opportunity
Mobile operator services
• Mobile operators need to
–
–
–
–
Attract the best Subscribers - High Value & Loyalty
Reduce new subscriber acquisition cost
Sell more data traffic
Establish continuing loyalty Link to Network
• Using techniques to
– Provide continuing incentive for Increased Use of Data Services
– Use VAS to increase network specific dependency and Induce Higher
Loyalty Than Simple Voice Services
– Induce Migration to WAP phones
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Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Loyalty program
Differentiation
Phases
Phase II
Price
Phase I
Coverage
Phase III
Value Added
Services
£
Competition and
Market Saturation
increase over time
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Sila
Corporate
solutions
Overview
Market
opportunity
Whose loyalty do we wish to
attract?
Traffic generation
Need for Data traffic
cost acceptance
Business users
Investors
Free news and sports
Free financial information
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Others
Sila
solutions
Sila
Corporate
solutions
Overview
Loyalty issues
Quality to price ratio
Complexity to change
Intensity of use
Network specific VAS
Service price
Call rates
Low bandwidth
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications solution
T H E S U B S C R I B E R:
High Quality
Transaction
Information
Services
CORE VAS
Service Quality
calls/month
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•
No Information charge
- for core value added services only
•
No telephone charge
- for core value added services only
•
Personalised Services
- Individual service configurations
T H E N E T W O R K:
•
Attract new High Value Subscribers, e.g. business, professional and data
segment
•
Generate sustainable loyalty from all existing subscribers
•
Allocate minimal bandwidth per subscriber for free services
•
Maintain focus on core competencies
Sila
Corporate
solutions
Overview
The technical solution.
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila’s SIM-based Technology
The Trojan Horse
• General application platform resident in the mobile
phone
–
–
–
–
–
Data decompression and presentation
Subscription control
Dynamic memory capacity management
Authentication and encryption support
Platform enhanced steadily, including transactions
• A ‘land-grab’ on the card for space, with pride of
place for new applications
• Privileged provider of specific applications to carriers’
subscribers
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Sila
Corporate
solutions
Overview
Key Strategic Partnerships
Mobile
Operators
Technology
Mobile
CMG
Operator
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Sponsors and Affiliates
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications
•
Content Handling in Real time
•
Subscription management, including device configuration
•
SIM toolkit application for presentation
•
Trading and transactions
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Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications
Information system data flow - overview
External
content
SIM card
App_n
Sila data
centre
App_1
Cell
Broadcast
centre
SMS
Centre
Database
Subscription filter and decompression
CB
SMS
Patent pending
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GPRS
...
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications
Content handling in real-time
External
content
Feed
Feed
handler
Feed
handler
handler
SnapQuote
Server
SMSC
Transmitter
Broadcast
Scheduler
CBC
Transmitter
Patent pending
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Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications
Subscription management
SMS
Config
Billing
information
Wap
Config
Internet
Config
Extract
process
SMSC
Transmitter
Network
SMS
Centre
Patent pending
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Sila
Corporate
solutions
Overview
Sila Communications
SIM toolkit application
SIM card
App_n
App_1
Database
Subscription filter and decompression
CB
SMS
GPRS
Data feed
(CB / SMS / GPRS / …)
via GSM 2+ handset
(data download) to SIM
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...
Patent pending
Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Sila Communications
SIM toolkit application - data presentation
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Patent pending
Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications
MobiQuote - Trading and transactions
External
content
SIM
front end
Mobiquote
Core trading
WAP
front end
Web
front end
Trading
partners
Patent pending
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GSM
Modem pool
Internet
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sila Communications
Central infrastructure
Broadcast
Scheduler
External
content
SnapQuote
Server
CBC
Transmitter
Network
Cell Broadcast
SMSC
Transmitter
Network
SMS Centre
Subscription
Server
SIM
front end
Mobiquote
Core trading
Trading
partners
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GSM
Modem pool
WAP
front end
Web
front end
Patent pending
Internet
Sila
Corporate
solutions
Overview
Sila Communications
The loyalty program
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
Market size

Revenues
Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Sources of Revenue:
 Sila Financial Services

Loyalty Improvement

Market Share Increase
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sources of Revenue
Sila Financial Services:
Basic Assumptions:
•Own mobile population at 30/06/2000
10
m.
•Growth rate
•
Year 1
Year 2
50%
30%
•Yearly fee / subscriber
–free service
–fee liable
10,8
180
£/year
£/year
•See “Expectation Case” (II) for details
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Year 3
25%
Year 4
20%
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sources of Revenue
Sila Financial Services:
• Subscriber Projection:
• Revenue Projection:
800
14.000
12.000
Revenue (in UK£'000nds.)
Subscriber (in 000nds)
700
600
500
400
300
200
10.000
8.000
6.000
4.000
2.000
100
0
0
End of
Year 1
End of
Year 2
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End of
Year 3
End of
Year 4
Year 1
Year 2
Year 3
Year 4
Sila
solutions
Sila
Corporate
solutions
Overview
Sources of Revenue
Loyalty Improvement:
Basic Assumptions:

Cancellation rate:

Improvement
15%
25% of Sila subscribers cancellation rate, 3.75 % p.a.
Or
10% of overall cancellation rate, 3% p.a.
360 UK £ p.a.

Revenue per subscriber:

See “Loyalty Quantification” (V) for details
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Market
opportunity
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sources of Revenue
Loyalty Improvement:
30
10.000
Revenue (in UK £ '000nds.)
9.000
Subscribers 000nds.
25
20
15
10
5
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
0
Year 1
Year 2
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Year 3
Year 4
Year 1 Year 2 Year 3 Year 4
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sila
solutions
Sources of Revenue
Market Share Increase:
Basic Assumptions:
Market size at 30/06/2000
10 millions (excl. own)
Growth rate
Year 2
Year 1
50%
Revenue per subscriber
30%
Year 3
25%
Year 4
20%
360 UK £ p.a.
Sila market share of financial services estimates
Year 1
10%
Year 2
15%
See “New market share” (IV) for details
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Year 3
20%
Year 4
25%
Sila
Corporate
solutions
Overview
Market
opportunity
Sources of Revenue
Market Share Increase:
• Revenue Projection:
• Subscriber Projection:
80.000
Revenue (in UK £ '000nds.)
Subscribers (in '000nds)
250
200
150
100
50
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
0
End of
Year 1
End of
Year 2
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End of
Year 3
End of
Year 4
Year 1 Year 2 Year 3 Year 4
Sila
solutions
Sila
Corporate
solutions
Overview
Market
opportunity
Sources of Revenue
1000
100.000
900
90.000
Revenue (UK £ 000nds.)
Subscribers 000nds
Total revenues generated
through Sila services
800
700
600
500
400
300
200
100
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
0
Year 1
Year 2
Year 3
Sila Services
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Year 1 Year 2 Year 3 Year 4
Year 4
Sila Loyalty
Sila Mk. Share
Sila
solutions
Summary
Corporate
•
•
•
•
•
Complete solutions
Powerful pedigree
Key agreements signed
Pan-European coverage
Leading wireless provider for
financial services
• Experienced team
• Ambitious goals
• Speed to market
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Sila
Corporate
solutions
Overview
Market
opportunity
Product
•
•
•
•
•
Hardware independent
Broadcast vs point-to-point
Compression advantage
Wireless trading systems
Mobile operator loyalty
schemes - for no cost
• Enterprise wireless data
centres
• SIM card for new services
Sila
solutions
Sila Communications
The leading provider of wireless applications
services
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