Using S60 to increase revenues in mature markets

Innovation and Open Source from an operator perspective

Telefónica Móviles España

Devices Innovation
April 25th, 2007
 Index

01 Operator challenges in an open environment

02 How S60 helps operators to succeed

03 Summary

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Operator challenges in an open environment

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 01 Current environment
Data services beyond SMS

SMS no longer is the unique relevant data bearer (TEM)

3G and 3.5G is here (TEM)

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 01 Current environment
Advanced devices, more enablers
25

Millions

Smartphone market is expected
to exceed 250 million units in 20 Others
RIM
2008 15
Linux
Palm

Smartphones of today are small 10

MS
Symbian MOAP

computers connected to internet Symbian UIQ

S80/ 90
5 S60

03'Q1
03'Q2
03'Q3
03'Q4
04'Q1
04'Q2
04'Q3
04'Q4
05'Q1
05'Q2
05'Q3
05'Q4
06'Q1
06'Q2
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06'Q4
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 01 Current environment
Openess as the key on the new ecosystem

Main players are taking this path with different level of
commitment and evolution:
Technical User Generated
Certain Content
Development of
Technical
Open APIs some core
Knowledge Communities
technology
Shared With the
within
Partners Web 2.0
OpenSource

Openess as developer Openess as Openess as

Openess as partnership
community growing tool a source of innovation a part of the business model
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 01 Current environment
Customer perspective
“I understand telcos and ISP tariffs”

“I know that my
mobile phone is
like a little
computer
connected to
Internet”

“Data services are

good for me,
as the voice and
SMS”

“I belong to an open world, with endless choice”

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 01 Current environment
Operator perspective

Traditional barriers have been removed and the

competitive environment is complex:
— Third party access to device’s operating system
— Endless choice by customers
— Defensive strategies will not work in the long term

Operators need to provide superior value to succeed:

— Delight the customers with the best care and services
— Using effectively customer knowledge
— Giving the best experience through technology

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 01 Capturing innovation
And the Open Source role

Innovation is one of the roots of sustainable competitive

advantage

Innovation is derived from diverse groups with specialized
expertise
— The greatest breakthrough for open source is applying
collaborative methodologies for development
— Inherent in collaborative practices could be a greater opportunity
for innovation than competitive practices

But not only software!!!
— Shared and superior knowledge (i.e Wikipedia)
— User Generated Content

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How S60 helps operators to succeed

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 02 Innovation and Open Source
The browser and the “Write once - runs everywhere” promise revisited

One of the best mobile browsers in the market with an Open

Source Core:

— Reliable: Tested by the community

— Committed to standards
— Interoperable: Proven on desktop Apple Safari Browser S60 Web Browser

environments (Safari) KHTML web core engine (Open Source)

With full HTML support, AJAX and other open protocols like
RSS, the promise of “write once - runs everywhere” for
convergence applications looks feasible

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 02 Innovation and Open Source
Open C: Bringing open source methods and current applications to mobile

Telefónica welcomes the announcement of S60 to provide

more than 4000 C function calls with its Open C
environment, allowing the industry (and the community):
— To easily port relevant applications within the mobile environment:
– Apache Web Server
– Python and Perl execution environments
— To reduce the current differences between connected PCs and
mobile phones is key for converging applications
— To be closer to the Open Source methodology , commitment with
standards and quality of generated software
— To increase the competitiveness on the application market

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 02 S60 as source of differentiation
Operator Variant

Unique user experience allows operators to:

— Increase the commitment with the brand
— Have a consistent Movistar user experience: look & feel
— Simplify the access and promote new services and applications

New enablers available on S60 allows the remote updating of

all this stuff, creating:
— Deep segmentation, on the limit, customer by customer
— “Updated Value” of the Operator Variant concept

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Summary

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 03 Summary

We are entering in a brand new environment, within a new way
of understanding of the mobile communications by the
customers

The sources of differentiation from the operator perspective are

also new and we need to evolve to keep relevant on the new
ecosystem

S60 is an outstanding tool that could help operators to capture

innovation, reduce the time to market and the fragmentation,
and provides sources for a deep differentiation

Telefónica Móviles España

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