“How to Generate Real Profit from Content Services “ John Aalbers Director, Next Generation Solutions Business

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 2 What is Content?

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 3 Digital Content Video Live TV Streaming Online Gaming Live Sports Music Adult Services XXX

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 4 Physical Content Theatre Tickets Vending MachinesM-Commerce Parking Fees Books, Videos, DVDs etc.

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 5 What is Content? Can be categorised in two ways: Digital Content Physical Content Some content will be created and provided by Network Operator directly Most content will be created and managed by 3 rd Party Content Partners and delivered through Network Operators

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 6 What is important to Content Partners? Operators need good quality Content Providers Operators must make it as easy and attractive for a Content Provider to deliver their content over the operator’s network Attractive Revenue share models Pricing Control Strong Self-care tools flexible product definition, launching and decommissioning Real-Time Access to accruing sales information

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 7 How can Content be managed profitably?

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 8 How will Operators make money? By charging for strong value-added services they can provide: Authentication and Authorisation services Delivery Payment and Billing services Quality Management Digital Rights Management Roaming handling

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 9 What is needed? A Solution to support the following: 1.Real Time Charging (Active Mediation) 2.Revenue Sharing (Settlement) 3.Partner Relationship Management Whilst, Maximising ROI on existing infrastructure Minimal disruption to their existing environments Easily Adaptable

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 10 What are the emerging Content Business Models?

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 11 Macro Business Models

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 12 What roles are involved in providing Content? Network Operator (NO) Provide Access and Transport services Content Aggregator (CA) Package and offer services from multiple content providers Content Provider (CP) Provide services that add value to access and transport services

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 13 What roles are involved in providing Content? Billing & Collections Provider (BCP) Issues bills and collects payment from customers Prepaid and Postpaid Also includes Authentication, Authorisation and Credit Reservation Financial Institution (FI) Banks, credit card or e-payment companies Clearing House (CH) Roaming Settlements Advertisers, Resellers, Content Owners

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 14 Who owns the Customer? Network Operator Content Provider Content Aggregator Branding and Customer Care

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 15 Service Delivery Branding and Customer Care Network Operator Content Provider Content Aggregator Order Delivery Service Delivery

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 16 Authentication and Authorisation Branding and Customer Care Service Delivery Network Operator Content Provider Content Aggregator Order Delivery Financial Institutes Billing & Collection Provider Authorisation & Charging

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 17 Invoicing and Payment/ Settlement Branding and Customer Care Service Delivery Network Operator Content Provider Content Aggregator Order Delivery Financial Institutes Billing & Collection Provider Authorisation Payment Invoice/ Payment Request Payment/Settlements Billable Event/Settlement

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 18 Three Basic Business Models Network Operator Content Aggregator Billing & Collection Provider Network Operator Centric Business Model Content Provider Billing & Collection Provider Content Provider Centric Business Model Content Aggregator Billing & Collection Provider Content Aggregator Centric Business Model

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 19 The Hybrid Model – The Current Trend Customer Relationship with Network Operator Billing/Charging performed by Network Operator Pricing under the control of the Content Aggregator/Provider Settlement based on Revenue Share Models Branding and Customer Care Service Delivery Authorisation Payment/Settlements Network Operator Content Provider Content Aggregator Order Delivery Financial Institutes Billing & Collection Provider Payment Invoice/ Payment Request

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 20 Micro Business Models

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 21 Retail Models “Content Value” based* “Network Usage” based Combination of Content Value and Network Usage based * Strong IP Mediation needed to ensure double billing does not occur

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 22 Wholesale Models Simple percentage based revenue share based on “Content Value” Overhead charge for “Network Usage (Mb etc.)” then percentage based revenue share Network Usage based charges only Multi-party settlement – Operator(s), Content Partner(s), Advertisers, Sponsors etc.

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 23 Content Charging, revenue Sharing and Partner Management Mediation Functionality Settlements Functionality PRM Functionality Content Charging, Revenue Sharing and Partner Management

© Independent Technology Systems Limited All rights reserved One-stop network profitability™ 24 Create record Provide Content Proceed? Price the Content Content Partner Receive Price Permit Content delivery Request Content Yes, proceed Check & Reserve balance Real-Time Active Mediation Content Settlements Balance Management Real-Time Active Mediation IN Pre-paid Credit/Debit Card Payment choice Choose Payment Option Confirm balance debit Retail Billing Real Time Rating Post Event Mediation

Thank you!