1. Applications Development Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan William Jones CEO Global Village Ltd

2. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Rapid adoption of broadband and mobile services is fuelling applications development The key drivers and enablers for growth of these applications and services are: –Search –Personalisation –Security –Payment Systems –DRM –Media Literacy –Authentication –Rights and licensing framework

3. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Broadband mobile (3G) leads the way Introduction of flat rate services has encouraged take up of rich content applications over mobile –Polyphonic ringtones, music clips and full song downloads are especially popular. –New mobile content offerings such as electronic Manga (comics) and e-learning provide new revenue opportunities. –Growing popularity is attracting new advertising revenue opportunities. –Services blend elements of subscription, micro-payment, advertising and sponsorship business models.

4. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Games Games sector in Japan and Korea dynamic and competitive – forefront of innovation Pioneered ‘items selling’ business model – Free game is attached to a community site which drives profits –MMORPGs (Massively Multiplayer Online Role Playing Games) are communities with strongly bonded users –Players are encouraged to buy items to personalise their avatars or games characters –Profits from sales of items and avatars exceeded profits for online subscription games by 12 times in 2005 for Namco Additional community type services offered to their players – meet and chat online and targeted channels for e-commerce Fast broadband connections and access to very low cost micro payment systems have been critical enabling factors

5. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Music Services allow customers to download or stream music to a variety of fixed and wireless devices –Operators are aiming for the same market as iPod/ iTunes –KDDI has mobile phone with 4 Gigabyte hard disk drive which can store 2000 songs Key to success is workable payment and security systems –Flat rate rental models for users are easy to use eg Melon (Korea) –Music copyrights holders are compensated in consistent and transparent way –KDDI in Japan use a security system linked to the mobile number of the user to give comfort and protection to the music industry

6. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Community, Social Network Services and User Generated Content Huge growth of both blogs and community sites in Japan and Korea are reliant on secure payment, identity and trust Cyworld – community portal used by 25% of Koreans –Users create and decorate their own personal space –They use the space to network with friends and relatives –Profits are made from selling small items or furniture to decorate their space –Cyworld is used to store and share photos, meet new cyber friends, play role playing games and to trade items

7. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Community journalism OhmyNews (Korea)- an online newspaper where majority of content is supplied by general public – 35,000 citizen reporters Free at point of use, supported by an advertising business model and premium product which contains breaking or special news Contributors are paid $5-$15 depending on how high the article is ranked on the website

8. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan IPTV and VOD Various models in development and yet to be fully launched. Service DescriptionService offering Hanaro (Korea) Interactive IPTV portalHobbies, games, kids TV, music, news, lifestyle, entertainment, community. NHK (Japan) Server type IPTV set top box Integrates DTT, broadband and PVR to deliver personalised, interactive, on demand services. Nippon TV (Japan) Broadband portal for accessing archive content online and via mobile 3D animated shopping arcade portal where content is categorised by mood. 38,000 hours of news films, 172,000 hours of programmes. Softbank (Japan) IPTV content aggregation service Core services: video streaming, VOD, video search. Key content genre: sport, animation, news, Korean & Taiwanese channels.

9. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan IPTV and VOD Key success factors for IPTV and VOD vary by content, platform, network and terminal and may include: –Billing and payment systems –Pre -subscription and credit card billing –Intelligent ad servers –Powerful video search –Recommendation engines Unresolved rights issues and regulatory uncertainty are hindering the aspirations of many to launch full multi- channel IPTV services based on IP multicasting

10. Global Watch is a DTI service managed by Pera Exploiting the broadband opportunity: lessons from South Korea and Japan Mobile TV In Korea there are 300k satellite DMB customers and Terrestrial DMB was launched in December. –D-DMB expected to grow into significant niche market –Will incorporate automotive telematics and traffic information/ navigation systems In Japan KDDI is launching simultaneous broadcast to mobile from next month (April) –Current broadcast law prevents mobile operators from charging extra for mobile TV –Network operators want to combine mobile TV viewing with web browsing to make the business model viable. –Live programs will be used as triggers to direct the viewer to sites for services/ e-commerce via mobile. –Linked advertisements, collaboration with TV stations and sales of on air tunes will provide the revenue streams