1. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #1 [OMA-Template-SlideDeck-20050101-I] Submitted To: MEM Date:23 Sep 2005 Availability: Public OMA Confidential Contact:Lijun Zhao, zhaolijun@chinamobile.comzhaolijun@chinamobile.com Source: China Mobile OMA-MEM-2005-0045-Business_Model_Study Business Model Study in Mobile E-mail X USE OF THIS DOCUMENT BY NON-OMA MEMBERS IS SUBJECT TO ALL OF THE TERMS AND CONDITIONS OF THE USE AGREEMENT (located at http://www.openmobilealliance.org/UseAgreement.html) AND IF YOU HAVE NOT AGREED TO THE TERMS OF THE USE AGREEMENT, YOU DO NOT HAVE THE RIGHT TO USE, COPY OR DISTRIBUTE THIS DOCUMENT.http://www.openmobilealliance.org/UseAgreement.html THIS DOCUMENT IS PROVIDED ON AN "AS IS" "AS AVAILABLE" AND "WITH ALL FAULTS" BASIS. Intellectual Property Rights Members and their Affiliates (collectively, "Members") agree to use their reasonable endeavours to inform timely the Open Mobile Alliance of Essential IPR as they become aware that the Essential IPR is related to the prepared or published Specification. This obligation does not imply an obligation on Members to conduct IPR searches. This duty is contained in the Open Mobile Alliance application form to which each Member's attention is drawn. Members shall submit to the General Manager of Operations of OMA the IPR Statement and the IPR Licensing Declaration. These forms are available from OMA or online at the OMA website at www.openmobilealliance.org.

2. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #2 [OMA-Template-SlideDeck-20050101-I] Outline Overview of Mobile Email Market Value Chain Business Model Analysis Service Strategy and Standardization Expectations

3. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #3 [OMA-Template-SlideDeck-20050101-I] Email is one of the most important Internet applications Email 85.6% News 62.0% Search engine 65.0% Software downloading / uploading 37.4% Webpage information 49.9% Online chatting 42.6% BBS, Community forum 20.8% Personal website hosting 4.9% E-Government 2.0% Internet games 15.9% Online purchasing 6.7% Short message 2.3% Online education 6.3% E-magazine 7.3% IP Telephone 1.0% Online Hospital 0.6% Online Banking 5.1% Stock trading 3.4% Online auction 0.7% Ticket / Hotel reservation 0.5% Online Video Conference 0.4% VOD 3.9% Living broadcasting 2.2% Multimedia entertainment (MP3, FLASH, etc.) 8.0% Telnet 0.7% Information promulgation 2.3% Online promotion 1.3% Online sales 1.6% Informatized system （ ERP, CRM, SCM)0.6% Online recruitment 3.5% Internet database 0.8% School/class mate BBS 14.8% Others 0.2% source: Gartner data

4. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #4 [OMA-Template-SlideDeck-20050101-I] Statistic for Applications Types of email accounts that are used most frequently Accounts provided by working organizations11.0% Individual free accounts 81.3% Individual charged accounts 5.8% Accounts presented by others 1.0% Others 0.3% No email account yet 0.6% Emails will be sent to Family people 21.7% Relatives 16.6% Friends 73.2% School/class mates 54.6% Colleagues or work mates 65.8% Others 0.9% Aspects that charged email users consider the most Reliability 36.8% Speed 7.3% Security and stability 30.4% Capacity 8.5% Multiple receiving modes (POP3/Mobile Phone) 3.4% Anti-Virus 2.7% Spam filtering 4.5% Do not care 3.3% Others 3.1% source: Gartner data

5. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #5 [OMA-Template-SlideDeck-20050101-I] Now we focus on... Mobile Email Wireless Computing Internet CONVERGENCE Mobile Email meets all requirements: Mobility, Safety, Real time

6. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #6 [OMA-Template-SlideDeck-20050101-I] Mobile Email Market in China Mobile Email market data ： Email amount : 20/day/person Email size : 4 ～ 20K Email receive time (based on GPRS) : 10s Read Attachment on mobile terminals : <10% Mobile Email forecast Enterprise market Mass market Enterprise Market Mobile Email users

7. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #7 [OMA-Template-SlideDeck-20050101-I] Mobile Email shall have great impacts in the next few years Small/medium Enterprises Public users Non-secure Mobile Email,WAP push, MMS Email, SMS mail notification Large/medium SOEs MNC Secure Mobile Email Mobile Email applications Customers MNC: Multinational Corporation; SOE: State-owned Enterprise Different Market segmentation for all kinds of Mobile Email Applications

8. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #8 [OMA-Template-SlideDeck-20050101-I] Value Chain

9. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #9 [OMA-Template-SlideDeck-20050101-I] Enterprise Market User Enterprise Device Vendor Solution Provider Carrier Enterprise Customer Mobile Email Value Chain In corporate market, five players are involved in mobile email service.

10. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #10 [OMA-Template-SlideDeck-20050101-I] Mass Market User SP mailbox Device Vendor Solution Provider Carrier Consumer User Mobile Email Value Chain In mass market, five players are involved in the service.

11. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #11 [OMA-Template-SlideDeck-20050101-I] Business Model Analysis

12. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #12 [OMA-Template-SlideDeck-20050101-I] Mobile Email Logical Architecture

13. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #13 [OMA-Template-SlideDeck-20050101-I] Business Model A Mobile Network Internet GSN Mailbox TCP/IP/HTTP Value Chain Mobile email Proxy Operator Proxy owned and managed by SP Note: Today in proprietary solutions, proxy is typically the NOC (Network Operating Center)

14. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #14 [OMA-Template-SlideDeck-20050101-I] Business Model A (cont.) Solution provider leads the business because of the NOC, solution platform and branding ownership.

15. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #15 [OMA-Template-SlideDeck-20050101-I] Business Model B Mobile Network Internet Mobile email Proxy GSN Value Chain Enterprise Push Mail GW + mail server Operator Proxy owned and managed by enterprise Note: Today in proprietary solutions, proxy is typically the NOC (Network Operating Center)

16. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #16 [OMA-Template-SlideDeck-20050101-I] Business Model B (cont.) Enterprise controls the whole project because of the buy side position.

17. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #17 [OMA-Template-SlideDeck-20050101-I] Business Model C Mobile Network Internet Mail GW GSN Mailbox TCP/IP/HTTP Value Chain Mobile email Proxy Operator Proxy owned and managed by carrier Note: Today in proprietary solutions, proxy is typically the NOC (Network Operating Center)

18. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #18 [OMA-Template-SlideDeck-20050101-I] Business Model C (cont.) Carrier leads the business because of the NOC ownership and standard definition.

19. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #19 [OMA-Template-SlideDeck-20050101-I] Pros and Cons for Operators ProsCons Model A Service / support can outsourced to third party Benefit from the traffic fee Service provided by third party (no branding) Shared revenue / licenses Limited control over service quality First line for customer complaints Security is TBD and must be carefully reviewed Model B Increased traffic without needing operator investment Can build relationship / packages with enterprise No service branding Limited control over service quality Segmental market Bit pipe Model C Unified service branding Maintain customer relationship Can provide more services No additional licenses Security controlled by operator Service quality controlled by operator Need enterprise sales channels to offer service

20. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #20 [OMA-Template-SlideDeck-20050101-I] Preferred Deployment Model Enterprise/SP Carrier GPRS, UMTS RAN Email Server GPRS, UMTS RAN Mobile Email GW Mobile Email Proxy

21. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #21 [OMA-Template-SlideDeck-20050101-I] Preferred Business Model Service Providing Operator provide platform and service Business Supporting Operator maintain the system Partner provide background service and support. Business Charging Operator set up the tariff system and charge the service Marketing expansion Operator cooperate with all partners to develop the whole market.

22. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #22 [OMA-Template-SlideDeck-20050101-I] Service Strategy and Standardization

23. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #23 [OMA-Template-SlideDeck-20050101-I] Terminal Strategy Stage 1:Proprietary device/client Solution differentiation Lock in effect Stage 2:Carrier standard(OTA download ) Avoid lock-in effect by vendor Low maintenance and switching cost Stage 3: International standard ( native client ) Device vendor take care the client side effort More device support

24. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #24 [OMA-Template-SlideDeck-20050101-I] Platform Technology Strategy Vendor proprietary solution Not favored by carrier Accepted by some enterprise Carrier standard Not favored by solution vendor because of the effort to adapt to carrier’s standard International standard Welcomed by enterprise and carrier

25. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #25 [OMA-Template-SlideDeck-20050101-I] Expectations

26. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #26 [OMA-Template-SlideDeck-20050101-I] Push standardization work together International standard body defines open standard as soon as possible Device vendor build-in standard conformance native push email client in their mobile device Deploy solution ASAP in the meanwhile based on open specifications (e.g. P-IMAP) with clients that can be OTA upgrade to follow the standard once stable

27. © 2005 Open Mobile Alliance Ltd. All Rights Reserved. Used with the permission of the Open Mobile Alliance Ltd. under the terms as stated in this document. OMA-MEM-2005-0045Slide #27 [OMA-Template-SlideDeck-20050101-I] Thank You