2. 2 hello Content, Services & Applications New Business Models & Revenue Streams Stephen Hope Orange Research & Innovation 2

3. 3 Contents  the traditional business model approach  2.5G to 3G  3G and beyond  the user perspective  the future business model  the new business paradigm  conclusion

4. 4 the traditional business model The Network Centric Approach

5. 5 The Network Entities

6. 6 The Mobile Network Entities Content Provider Platform Service Platform Terminal Application Provider Platform O&M System Management interface Traffic interface Access network Core Network web Management network Direct management of terminal by docking station and line or bluetooth 6

7. 7 The Actors

8. 8 End user Service provider OEM Application Provider Telecomms Manager Management interface Traffic interface Access network Core Network web Management network 3rd Party Application Provider Direct to the terminal Content Provider 8

9. 9 The Current Transaction Model

10. 10 Wireline Operator Regu- lators Users Roaming Network Operator SP NO Um WL RN Transaction Flow Service Provider “Clearcut Communications” Courtesy SDR Forum OEM System Suppliers OEMn Multi- Media Mgr Content Providers Application Providers MMM APn CPn Financial Institution FI Network Operator The Mobile Operator Business Model 10

11. 11 2.5G towards 3G The changing perspective

12. 12  fixed mobile internet convergence  home broadband for all  Wireline  Wirefree  terrestrial  satellite  bandwidth not an issue  focus on delivery of rich multimedia services  any technology  any time  any where  content is key Telecom Technology Trends

13. 13 Broadcast Technology Trends  digital broadcast technology revolution  DAB DVB-T DVB-S  support for return path  focus on delivery of rich multimedia services  any technology e.g.  terrestrial and Satellite  internet  mobile technologies e.g. 3G  any time  any where  “fuzzy” demarcation between operator and broadcaster  broadcast licences offered to telecom operators  content is key

14. 14 the next step? “ evolution from fixed, mobile internet convergence to fixed mobile internet broadcasting convergence” “ technology irrelevant to the user only content and services count”

15. 15 Converged Devices

16. 16 the world as we know it now “converged mobile internet devices” 16

17. 17 3G and beyond The User Centric Approach

18. 18 A New Paradigm?

19. 19 Data Rates vs. Mobility : The ITU-R Vision IMT-2000 Mobility Low High 1101001000 Peak Useful Data Rate (Mb/s) New Mobile Access New Nomadic / Local Area Wireless Access Enhanced IMT-2000 Enhancement 1. Systems beyond IMT-2000 will encompass the capabilities of previous systems Dashed line indicates that the exact data rates associated with systems beyond IMT-2000 are not yet determined. Digital Broadcast Systems Nomadic / Local Area Access Systems 2. New capabilities of systems beyond IMT-2000 3. Seamless inter-working 19

20. 20 AP Ultra high speed landline Common IP Core Network RGW AP AR MBWA DMB Legacy 2G. 3G Mobile Communication Pico-Cell Micro-Cell Macro-Cell Mega-Cell Linear-Cell AP AR Home WLAN AP Heterogeneous Radio Access Home Network Broadcasting PAN Ad-hoc Network C C Framework of Future Wireless Communication  Convergence over IP  Wireless and Wired  Mobile & Broadcasting  A single user equipment  Multi-functions  Portable  Heterogeneous Inter-working  User convenient network  User service continuity 20

21. 21 the user perspective Away from Converged Devices?

22. 22 introducing Jenny our B3G Orange customer Jenny - always connected! 22

23. 23 Jenny’s “Personal Distributed Environment”  at the heart of it -  the personal gateway  personal gateway + user devices  = Personal Area Network (PAN)  personal gateway + user devices + services  = Personal Distributed Environment (PDE)  Orange does what it does best  user device vendors make cool stuff

24. 24 customer benefits for the Personal Gateway  “it works with my camera, PDA and watch. I don’t have to settle for mediocre, lowest common denominator functionality”  “I can use it as more than a handset: could be a local router”  “my parents are happy, because the handset becomes a cheap fashion accessory - I can have one every month !”  I can watch the news! - I can listen to Terry Wogan!  personalisation not specialisation  I can make the print bigger !  I can make the keys bigger !  interact with your day to day environment  access for all

25. 25 Jenny goes to the Office 25