2. 2 The New Era of Mobile Rob Conway Chief Executive Officer and Member of the Board, GSMA

3. © Copyright GSM Association3 New Era of Mobile Emerging markets shift and innovation take-up to address challenging environments Delivery Marriage: –Mobile broadband (3G + HSPA) Marriage of mobile with other industries –financial –Advertising –Entertainment “Made for Mobile”

4. © Copyright GSM Association4 3G for all – stoking the mass market 3G must be for all: –All users –All markets Grow well beyond the 100 GSM operators in 50 countries with 3G Stoke markets with a more affordable, feature-rich 3G handset “3G for All” handset contest Rated by 12 operators: Cingular Wireless, Globe Telecom, Hutchison 3G, KTF, MTN, Orange, Smart, Telecom Italia, Telefonica, Telenor, T-Mobile and Vodafone –Represent 620 million subscribers 19 terminals reviewed

5. © Copyright GSM Association5 “3G for All” – the winner is… LG! LG delivered a stylish, compelling, affordable and feature-rich handset About 30-40% price reduction from the average cost of a 3G terminal today Qualcomm supplied chipset Nokia handset – ”Highly Commended”

6. © Copyright GSM Association6 “Mobile Broadband”: 3G + HSPA The industry has got it right with High Speed Packet Access (HSPA) –Simple, sotware based –Compelling to use –Built in multiplier effect –149 networks in 69 countries –50% growth in the last 3 months 40 suppliers have launched 140 HSDPA-enabled devices 49 handsets, 35 data cards and 32 integrated notebooks Ease and cost effectiveness of rollout: 5 –10 times cheaper than WiMax 1 1. Source: Arthur D Little “(HSDPA) could mean data transfer speeds faster than many home broadband connections.” – Sunday Times, December 2006 “This is killer technology… HSPA delivers 3G as it should've been when the first networks were launched back in 2003. - Gabriel Brown, November 2006 “HSPA will account for the majority of mobile broadband networks worldwide over the next five years.” – Arthur D Little, January 2007

7. © Copyright GSM Association7 Significantly Faster Roll Out HSDPA 3 years quicker than 2G & 3G (Source: Wireless Intelligence) Networks Year 1Year 2Year 3Year 4Year 5

9. 9 Marriages that bridge industries and enrich the fourth screen mobile + financial mobile + advertising mobile + entertainment

10. © Copyright GSM Association10 “Perfect Fit for Mobile” Global Mobile Money Transfer $230bn in international remittances Over 200Mil migrant workers Many migrant workers are poor, un-banked or under-banked Access is difficult and costs high Mobile can reach where banks cannot and connect un-banked and under-banked. Banks need new access to customers and revenues. Operators get very attractive service feeding customer loyalty

11. © Copyright GSM Association11 The Value Equation - “Everyone Benefits” What do customers get: Ease of access Ease of use Messaging which comforts you –“know when sent, when received, all same day” Significantly lower costs What do governments get: –Financial transparency –Money to needy citizens –Hard currency Potential to: double the number of recipients of remittances to 1.6bn quadruple international remittances market by 2012

12. © Copyright GSM Association12 The Global Programme Partnership with financial institutions Complementary Partnerships Global Hub Level Partnership GSMA and MasterCard Worldwide to pilot a global hub to transfer mobile-enabled remittances between national payment systems Local/regional partnerships between operators and financial institutions Pilot for messaging and clearing and settlement functions at hub connected to local systems Approved by GSMA Board –Board Sponsors: Bharti (India) and Smart (Philippines)

13. © Copyright GSM Association13 “PayBy-Mobile” Mobilization of Payment Ripe for mobile payments – allow the purchase of goods and services by mobile phone –Banks can’t do it alone –Operators can’t do it alone –Complementary solution required Key “approach” is: Over The Air (OTA) download or pre-load of encrypted credit card information On to the trusted SIM –Banks trust smart cards! SIM interface to Near Field Communications to bank enabled point of sale terminal

14. © Copyright GSM Association14 Moving to World Wide Adoption “Virtual Card” issued by banks but ‘renting space on the SIM’ – leveraging mobile’s ubiquity, unique capabilities to support bank requirements Banks do what they do best - -- Operators complement GSMA Board approved this “Approach”-- –Board Sponsor-- KTF (Korea) –12 operators collaborating on specific requirements under the “Approach”

15. © Copyright GSM Association15 Personal Instant Messaging PIM – launched here last year to enable: –Ubiquitous Instant Messaging services to mobile consumers –Connect mobile community in excess of 2 billion –Connect with existing IM communities –Converge across mobile, fixed and internet Interoperable Services –Operators in Italy and Spain ready to launch –France, Germany and the UK to follow this year Asian Effort: –India launched –Malaysia, Pakistan, South Africa and Thailand to follow this year More announcements expected this week

16. © Copyright GSM Association16 Mobile + Advertising Advertising for the 4th Screen User survey stats show demand Moves advertising from interruption to engagement –Consumer opt in and more tailor-made Targeted and intimate with an immediate response channel But... highly fragmented approaches Need to Mobilize Advertising! Key is standardization: –formats –definition of inventory –measurement metrics –code of conduct Cross-industry approach Announcing: ”Mobile Advertising Forum”

17. © Copyright GSM Association17 “Made for Mobile” Mobile Bollywood Initiative India’s movie industry makes 1000+ films a year – and it’s going mobile Mobile video is big in India even with 2.5G –250,000 video downloads a day –Music, video, movie trailers, dialogues –Part of an integrated package that includes music (ringtones, ringback,fulltrack); images and games Downloads estimated to reach 5 million a day by 2008 GSMA, Hungama Mobile and Roamware have teamed up with leading Bollywood film maker, Sanjay Gupta, to premiere three Bollywood movies adapted for the mobile medium See them here today

18. © Copyright GSM Association18 “Made for Mobile” GSMA and Sundance Global Short Film Project For Mobile launched in New York on November 8th –Pilot project to showcase and extend the reach of the independent short film genre to mobile users worldwide Turning mobile into a new venue for cinematic entertainment –Not about using mobile for trailers or highlights but as an an entirely new medium for independent creative minds Five specially commissioned films by leading independent directors – 3-5 mins long. See them for yourselves “I’ve always loved short films and know many others would too, if only we could find the right venue. That’s why we introduced the Short Film Festival. I didn’t envisage back that the venue would be a cellphone but that is what we are looking at today.” Robert Redford