1. Pág. 1 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry

2. Pág. 2 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry DISCONTÍNUOUS INNOVATION - TECHNOLOGY DISRUPTION 4In all markets, players compete through the introduction of innovations that trigger purchase attitudes. This process is known as continuous innovation. 4In high tech markets innovation is based on the creation of a complete different offer. This process is known as “Discontinuous Innovation”. Mobility has been this since the beginning of the last decade. In the 2000 decade wireless and home entertainment are taking the next wave.. Technology disruption triggers: 4Atipical growth for the player, independent of size, that has the technology. 4Value chain convergence modifying its structure. 4Natural evolution of processes and customer behavior habits. 4This process has been studied since early fifties, with reference models that help to understand them. 4In the last 50 years the US through its leading industry corporations has been taking advantage of this process Innovation Opportunity US traditional high tech leadership

3. Pág. 3 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry 4Consumer electronics (TV, Music Players, DVD, Photography and video) 4Telecommunication Operators (wireless and wireline) 4Media (Producers, Broadcasting, New Aggregators) 4Mobile terminal manufacturers 4 IT Hardware manufacturers (retail and enterprise) 4 IT Software manufacturers (operating systems and applications) 4Companies with large customer installed bases or brands (Banks, utilities, transportation…) INDUSTRY CONVERGENCE. WIRELESS AND HOME ENTERTAINMENT Sectors in convergence Europe has to push hard its strategic sectors in this new market

4. Pág. 4 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry 4Consumer electronics and IT : New devices focused on leisure (MM mobile, MP3, Portable DVD, TVman, Portable media players…) 4Home networks: several accesses for devices. Evolution to 4G concept. 4Standardization: Interoperability challenge. Content formats, exchange protocols, File formats. 4(MP3, WM9, WMA, Real, ACC(Apple), ATRAC3(Sony),... Digital Right Management: Microsoft, Real Networks, FairPlay (Apple), Nemo (InterTrust, Philips, Sony)… 4Access agnostic devices: Multiple access and ease of use TECHNOLOGY EVOLUTION The technology disruption is the result of many simultaneous advances in single technologies

5. Pág. 5 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry TECHNOLOGY DISRUPTION: MULTIMEDIA PORTABLE/HOME DEVICES 4This new category allows download, store, play multimedia services 4Key characteristics: 4Portable/small size. 4Flat screens: 2’2”, 5’1”… 4 wifi and UMTS connectivity 4Operating Systems: Microsoft, Mac, Symbian, MV Java y proprietary 4Manufacturers: Philips, Samsung, Fujitsu, Siemens, HP, Nokia, Motorola, Sony/Ericsson 4Options: 4Hard drive. Giga size 4Voice 4Peer2Peer communication and service sharing protocols. 4Video/photo “megapixel” camera. 4There is already a first generation in the market. Fujitsu Thomson Sony Archos Apple Samsung Creative A new category of personal multimedia devices

6. Pág. 6 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry NEW MULTIMEDIA SERVICE. 4The concept is based in two elements: 4Multimedia portable Device (MPD): Portable equipment that allow downloading, store, play multimedia services. PDA signature and wireless communications 4Personal Multimedia Services (PMS): TV, music, video, games… that are tailored to each individual that could be accessed from MPD 4MPD-PMS= new value for the customer: 4Personalization: 4Privacy 4Mobility inside and outside home 4New tracing capabilities WIFI UMTS The service could only be developed through the convergence of sectors

7. Pág. 7 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry A NEW SOURCE FOR VALUE 4New value on top to content and access and transport 4Business model change from massive return to individual return 4Audiences quantitative information. New marketing services 4Interactivity: Personalization, Participation linked with other media. 4Portability. Adaptation to different formats and different network functionalities 4New formats for media producers and advertising companies. 4New margins for massive potential audiences 4Mobile blog content sources ContentTransport12345 Traditional valueNew value 67 Europe has to push the development of its industry to get the new value

8. Pág. 8 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry TELECOMMUNICATIONS OPERATORS. EUROPE KEY ASSET Multimedia services Distributor. Multiaccess Multiplatform and multidevice To be a multimedia audiovisual service distributor, multiplatform, and multi device personalized and promoting on demand usage. Network services. Mobility functionalities Individuals inside home and nomadic New category in the value chain Customer Subsidy Service management capability Europe has a leading mobile market with advanced customers and behaviors. Telecommunication operators are key for pushing Europe to the new value market

9. Pág. 9 30.05.05ALBERTO CALERO/ JOAQUIN MOLLINEDO AMENA (AUNA) The role of innovation and research for the European ICT industry THE PRAGMATIC INTRODUCTION OF INNOVATION IN THE MARKET Amena is the leader in introducing added value services in the last years, introducing in the spanish market introducing before its competitors 36 services from the more than 80 that has its catalogue. The services are independent of the technology and the contents. The successful introduction in the market of new services is the key European Asset in innovation