1. Mobile Location Services: Market Strategies Ovum Report 2000 Part D: Business Models Pasi Pekkinen pasi.pekkinen@navinova.com Navinova Oy Navinova Oy

2. Ovum Report 2000: Mobile Location Services 18.11.2015 / PP2 Key messages Revenue models: no generic solutionRevenue models: no generic solution Business model: no single modelBusiness model: no single model –different roles, responsibilities and reward structures Control over location infoControl over location info –disputes whether operator should provide –terminal-based solution may diminish operators’ roles

3. Ovum Report 2000: Mobile Location Services 18.11.2015 / PP3 Revenue models Variety of applications for variety of customersVariety of applications for variety of customers No overall agreements for business relationshipsNo overall agreements for business relationships –nor how, why and which way money flows Three main revenue modelsThree main revenue models –end user payment (airtime, premium usage, subscription) –content provider payment (advertising, sponsorship, coupon) –network operator payment (”no payment”)

4. Ovum Report 2000: Mobile Location Services 18.11.2015 / PP4 Apps & Revenue Models ModelChallengesFitting Apps End-userUsers expect - Tracking content to be free- Call routing 3rd partyUser tolerance- Information - News - Advertising No paymentUndervalued?- Information

5. Ovum Report 2000: Mobile Location Services 18.11.2015 / PP5 Business models Business models differ according to who is responsible forBusiness models differ according to who is responsible for 1.Measurement of position 2.Carriage of position info 3.Storage and carriage of position info 4.Creation and roaming of applications 5.Sourcing of content Two broad categoriesTwo broad categories 1.Operator centric 2.By-pass models

6. Ovum Report 2000: Mobile Location Services 18.11.2015 / PP6 1) Operator centric Operator central in the flow of location infoOperator central in the flow of location info Three variants:Three variants: 1.Operator  Third party: Purchaser  supplier 2.Operator allows applications to be developed and managed by third parties Operator may share revenues with application developer or infrastructure supplierOperator may share revenues with application developer or infrastructure supplier 3.Advertising and third party payments replace end user payments

7. Ovum Report 2000: Mobile Location Services 18.11.2015 / PP7 2) Bypassing operator Non-network solutions for location measurementNon-network solutions for location measurement 1.Terminal supplier-centred model –location measured by mobile terminal or attached device –position sent over network to application platform –user pays for the application provider 2.Proximity systems for location e.g. Bluetooth –may support third party payments –mean to deploy local advertising 3.Self-input models –user determines and sends location info