1. 1 © 2003, Mobile Ecosystem State of the Wireless Industry Pacific Research Institute Conference April 15, 2003 Mobile Ecosystem Mark Lowenstein, Managing Director Phone: 781-416-WRLS Email: mlowenstein@m-ecosystem.com

2. 2 mobile Dashboard © 2003, Mobile Ecosystem Key Themes 1.Industry Competitive, Growing, Innovative 2.Catalysts Being Put in Place for Next Generation of Products and Services 3.Unique Economics, Challenges

3. 3 mobile Dashboard © 2003, Mobile Ecosystem Industry Growing and Competitive Fastest growing, most competitive segment of telecom MOU growth outpacing subscriber growth New reality economics # of Competitors

4. 4 mobile Dashboard © 2003, Mobile Ecosystem Prices Declining, Users Satisfied CPI ChangePerception of Value

5. 5 mobile Dashboard © 2003, Mobile Ecosystem Network Investment High, Service Improving Source: Telephia Network Capex as % of Revenue Historic Avg: 20% of revs. Last three years: 30-35%

6. 6 mobile Dashboard © 2003, Mobile Ecosystem Catalyst 1: The “Always On” Ecosystem Always On User Experience Presence Management Simultaneous Voice and Data Immediacy, Reliability Persistent Connection Devices Support always on Thicker clients Persistence Networks Circuit/IP Moving to all IP Pervasive computing Integration of WLAN Standards/ Protocols OSs Open standards Billing/OSS Security Applications MMS Games Mobile Office Early multimodal Evolve to multimedia

7. 7 mobile Dashboard © 2003, Mobile Ecosystem Catalyst 2: Compelling New Devices Becoming JAVA-based More robust PIM, Web apps GPRS, CDMA 1X, iDEN devices 64MB memory huge differentiator Integrated modems on the way Tighter integration with MSOFT wireless strategy Thera adds voice capability Platform for multimedia Integrated phone, messaging, PIM, Web New email client Will support always-on CDMA 1x Pocket PC Color screens Robust OSs RIM 5810 TREO 300 More memory Thicker clients Operator support Nokia 9290 Sidekick

8. 8 mobile Dashboard © 2003, Mobile Ecosystem Catalyst 3: New Frameworks, New Models New protocols facilitating applications customizatio n Development s in OS WAP 2.0 New Application Toolkits

9. 9 mobile Dashboard © 2003, Mobile Ecosystem Industry Challenges Nature of a growing, competitive industry High capex, opex burden Key FCC requirements Different economics than other telecom sectors Factors unique to the U.S. market

10. 10 mobile Dashboard © 2003, Mobile Ecosystem Q & A Thank You