2. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 1 OF 26 INTEGRATING M-COMMERCE PAYMENTS WITH THE MOBILE OPERATOR´S BILL BERTHOLD RUF | 29th September 2004 Berthold.Ruf@one.at +43 699 1 699 3847 www.one.at

3. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 2 OF 26 50,10 %17,45 %17,45 %15 % ABOUT ONE ONE GMBH - Third Mobile Operator in Austria - First GSM-1800 Provider - Currently approx. 970 Employees - 4 Shareholders

4. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 3 OF 26 ONE MILESTONES GPRS Regional Launch ONE Newsflash Take ONE ONE 99 Launch f-ONE Take Two Launch i-ONE ONE High Speed Dual VPN ALL IN ONE Cockpit U-Bahn Coverage ONE Webshop National Launch ONE FOR ME UMTS Licence Quick Load ONE Pocket Plus ONE takes over eWave WAP 0307101103021112010705091112021110091204 19981999200020012002 06 Cooperation with LIWEST ONE Compass ONE Smart SIM ONE Mobile Office Easy 1102 MMS 2003 04 ONE GmbH 07 Re-Launch www.one.at Launch ONE WLAN

5. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 4 OF 26 CUSTOMERS A 12/98 < 30,000 customers B 06/99 200,000customers C 12/99 500,000customers D 06/00 830,000customers E 12/00 1,300,000customers F 06/011,500,000customers G 12/01>1,600,000customers H 12/02>1,600.000customers I09/03>1,700.000customers J 07/04>1,800.000customers ONE CUSTOMERS 1.5 MILLION MOBILE | 150,000 i-ONE | 145,000 f-ONE. BADECFGHI J

6. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 5 OF 26 Mobile Shopping ONE‘s m-commerce solution

7. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 6 OF 26 ONE Mobile Shopping Partners

8. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 7 OF 26 Usage of M-Payment @ ONE – Strong increase of mpayment usage – No special advertising for mpayment so far

9. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 8 OF 26 M-Commerce Use Case: Coke Vending Machine

10. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 9 OF 26 M-Commerce Use Case: Coke Vending Machine Order Delivery PurchaseConfirmation

11. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 10 OF 26 M-Commerce Use Case: Java Game Download (1) Payment Information and Acceptance Select Game

12. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 11 OF 26 M-Commerce Use Case: Java Game Download (2) Install... and Enjoy! Payment Confirmation - Start Download

13. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 12 OF 26 M-Commerce Use Case: ONE‘s CANTEEN (1) 1. Register by SMS a short time before paying: Send an empty SMS to 8377 Pay at the checkout simply by giving the last 4 digits of your mobile phone number 2. Directly after payment you will receive a confirmation SMS. Registration is only valid for a maximum of 10 minutes.

14. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 13 OF 26 M-Commerce Use Case: ONE‘sCanteen (2) - Registration only valid for one location - Registration only valid for 10 minutes - Users receive a confirmation SMS stating the amount - Cancellation can be made directly at the checkout - Detailed list of payments and complaint feature at the user self-administration tool M-Commerce Use Case: ONE‘s CANTEEN (2)

15. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 14 OF 26 CustomerMerchantPayment PlatformONE back-office Start payment Clearing request Clearing response Merchant request Payment result Merchant delivers the goods/content to customer Customer authorization (including PIN/TAN authentication) Customer identification (Web) Identification & Authorization Validate balance (prepaid) and expenditure limits Payment channel Lock transaction amount until capture Payment channel Charge customer Payment channel Capture Extract MSISDN or User ID WAP Gateway LDAP Merchant response (with Transaction ID) Redirect URL Payment result response Redirect URL to merchant Go to success URL PAYMENT OVERVIEW

16. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 15 OF 26 M-Payment Architecture – Overview

17. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 16 OF 26 Many attractive Services drive the Business – Be prepared for individual Merchants as well as Merchant-Aggregators – Key Account Manager / Technical Account Engineer – Merchant Monitoring and Restrictions – Flexible automatic merchant settlement – Flexible automatic merchant aggregator settlement

18. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 17 OF 26 Billing and Settlement – Pre-priced events – Merchant manages the price of every transaction – Tax issues – different tax per product (tax override) – tax exempt customers or merchants – Multi Revenue Sharing – Multi Party Event & Individual Rating Tariffs

19. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 18 OF 26 ONE Bank – Since June 2004 ONE has a banking license – Necessary to guarantee payments to the merchant

20. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 19 OF 26 COOPERATION WITHIN OPERATORS IS BETTER FOR CUSTOMERS, MERCHANTS AND OPERATORS

21. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 20 OF 26 COOPERATION AMONG OPERATORS HELPS GAINING CRITICAL MASS COOPERATION IS KEY – Parking, Ticketing (for public transport) – News, Games DON‘T WANT TO COOPERATE – community, exclusive mobile content NEED TO COOPERATE? – mobile time recording; fleet management (closed usergroup) – Physical Goods

22. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 21 OF 26 MIA | M-COMMERCE INTERFACE AUSTRIA – open standard jointly developed – almost all Austrian operators participate – Specifies technical interface merchant/operator Mobile Phone Subscribers Mobile Phone Subscribers Mobile Phone Subscribers Mobile Phone Subscribers Connected Merchants Connected Merchants Connected Merchants Connected Merchants One Interface Tele.ring Interface T-mobile Interface Hutchison Interface Joint functional and technical integration

23. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 22 OF 26 TECHNICAL DETAILS OF MIA – Based on exchanging XML-documents between merchant and operator (specification defines DTD‘s and gives XML- examples) – Connection between merchant and operator done via https – Open for all possible channels: SMS, WAP, WEB – Customer may be redirected from merchant to operator for explicit authentication (PIN/TAN-entry...) – May be used for micropayments and macropayments

24. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 23 OF 26 1. First inter-operator standard which is already live 2. ONE has connected all its m-commerce partners via MIA 3. T-mobile Austria uses MIA for ticketing, lotto and other services 4. Tele.ring and “3” (Hutchison) to follow soon MIA- SUCCESS STORY

25. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 24 OF 26 MIA-Homepage http://mia.co.at – Free download of Java/Perl toolbox + manuals – Latest MIA- specification – FAQ – Test-Shop to test MIA-transactions – Access to test-server – Contact

26. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 25 OF 26 LESSONS LEARNED – Many merchants – especially for content – are very interested in doing m-commerce with operators – Flexible merchant interface and banking license important – Attractive services are the key for successful m-commerce – MIA is the first life-standard for m-commerce and already successful – Try to use standards wherever possible

27. M-COMMERCE FROM AN OPERATOR POINT OF VIEW | BERTHOLD RUF PAGE 26 OF 26