Contents:

Slide no. 7. Document map – Executive summary 8. Executive summary 9. Document map – Introduction 10. Introduction 11. Document map – Service evaluation process 12. Leading non-voice services from around the world have been evaluated by an expert panel in order to derive the top ten 13. Shortlisted services were evaluated on the basis of market potential, effectiveness of implementation and suitability for reproduction 14. Document map – The top ten services 15. The top ten list encompasses diverse non-voice services 16. Number 1: Vodafone Casa FASTWEB (Vodafone Italy) 17. Vodafone Casa FASTWEB combines home-zone voice tariffs with fixed broadband 18. Mobile operators can benefit substantially from offering fixed broadband services 19. Vodafone Casa FASTWEB is well placed to capture a significant share of the fixed broadband market in Italy 20. In partnership with FASTWEB, Vodafone has quickly and cost effectively developed a high-speed broadband service using LLUB ADSL2+ and fibre 21. The bundling and pricing of Vodafone Casa FASTWEB encourages FMS 22. Mobile operators in other markets may need to adapt the approach adopted by Vodafone Italy 23. Number 2: SMS (O2 UK) 24. O2 UK offers SMS bundles for prepaid and contract tariffs 25. O2 UK leads the world in messaging ARPU 26. Compared to other UK operators, O2 has achieved a substantial increase in SMS volumes without a significant drop in pricing 27. O2 UK has overtaken O2 Ireland as the leading SMS ARPU generator 28. O2 UK targeted the youth segment earlier than other UK operators and offers a number of features to encourage SMS usage 29. O2 UK shows that operators can still do better with SMS 30. Operators must try to drive SMS volume without substantial price cuts 31. Number 3: Mobile TV and Video Streaming (3 UK) 32. 3 UK offers a wide variety of broadcast TV and video clips using W-CDMA streaming 33. Customers can buy themed bundles of content containing TV and video 34. 3 UK is exploiting the demand for mobile TV and video services 35. Mobile TV and video have helped 3 UK to achieve the highest 3G market share in the UK and the highest nonvoice RPU in the world 36. Breadth, depth and branding of content are key to the success of mobile TV and video from 3 UK 37. 3 UK has a track record of offering popular mobile TV and video content in order to attract customers 38. 3 UK uses W-CDMA streaming to deliver a combination of broadcast and unicast TV services 39. Video clips consume much less capacity and generate much higher revenue per megabyte than broadcast TV channels 40. Mobile TV and video services have strong potential in other developed markets 41. Number 4: BlackBerry Email and IM (T-Mobile USA) 42. T-Mobile offers a range of BlackBerry tariffs, including bundles with large allocations of voice minutes 43. There are significant opportunities for email and IM in both enterprise and consumer markets 44. Mobile email and IM revenues will increase significantly 45. T-Mobile offers BlackBerry terminals that are stylish and easy to use 46. T-Mobile has developed BlackBerry services, which are underpinned by high-quality service and aimed at enterprises and consumers 47. Developed countries offer the greatest opportunities for mobile email and IM services 48. Number 5: Mobile Broadband (Sprint Nextel, USA) 49. Sprint Nextel offers mobile broadband access using CDMA2000 EV-DO Revision A 50. Mobile broadband has significant potential in developed and developing markets 51. Sprint Nextel’s focus on achieving high throughputs and wide availability is unusual and commendable 52. Sprint Nextel has a clear strategy and effective marketing to target enterprise customers, although its WiMAX plans create uncertainty 53. Success with mobile broadband may require substantial investment 54. Mobile operators must consider the threat of mobile broadband to revenues from existing voice and messaging services 55. Number 6: Mobile TV Broadcasting (3 Italy) 56. 3 Italy was the first operator in Europe to launch commercial mobile TV broadcasting 57. 3 Italy offers a variety of prepaid and postpaid mobile TV tariffs, along with free handset promotions 58. There is compelling evidence of consumer demand for mobile TV broadcasting 59. 3 Italy’s DVB-H service has grown steadily and generates significant ARPU 60. 3 Italy has developed an end-to-end mobile TV platform offering good-quality service to 75% of the Italian population 61. 3 Italy offers only a small number of mobile TV handsets, but will avoid the need to change these in the future 62. 3 Italy combines mainstream TV with premium channels and made-for-mobile content 63. 3 Italy has also generated useful revenue from advertising 64. Most operators will be unable to emulate 3 Italy in acquiring a cheap DVB-H licence and infrastructure 65. Number 7: EZ Chaku-uta Full (KDDI, Japan) 66. EZ Chaku-uta Full was the first full-track download service in Japan, where mobile phones dominate the music download market 67. EZ Chaku-uta usage has increased steadily since its launch and is a useful revenue stream alongside other services 68. EZ Chaku-uta Full benefits from (and has helped to drive) take-up of KDDI’s high-performance CDMA2000 EV-DO network 69. All new CDMA2000 EV-DO handsets support EZ Chaku-uta Full and offer sophisticated capabilities 70. EZ Chaku-uta benefits from a wide range of content and a variety of services that stimulate downloads and encourage mobile phones as music players 71. Flat-rate data tariffs have encouraged customers to use the service 72. There are good opportunities to reproduce the success of EZ Chaku-uta in other markets, but there will be competition 73. Number 8: Cyworld Mobile (SK Telecom, South Korea) 74. Cyworld Mobile builds on a highly successful fixed Internet portal 75. Cyworld demonstrates the massive potential of fixed and mobile online community portals 76. Cyworld is an excellent example of fixed–mobile convergence 77. The growing success of MySpace and other socialnetworking sites highlights the global opportunities 78. There are opportunities for joint ventures with Cyworld, MySpace and other emerging community portals 79. Number 9: DCMX mobile payment (NTT DoCoMo, Japan) 80. NTT DoCoMo offers a variety of mobile payment options 81. Mobile payments have potential, given the magnitude of credit-card purchases and the rapid adoption of the DCMX service 82. NTT DoCoMo has invested in a credit-card company and seeded a large number of FeliCa-equipped handsets and payment terminals into the market 83. Sophisticated security measures, such as fingerprint authentication, make DCMX more secure than conventional credit cards 84. DCMX can be used to make either small or large payments and offers other benefits 85. Mobile payment services will require substantial investment and are far from ‘quick wins’ 86. Number 10: MiniCall BubbleTALK ‘voice SMS’ (Vodafone Egypt) 87. Vodafone’s MiniCall service allows voice messages to be sent like SMS messages 88. While it is early days for ‘voice SMS’ services, the initial signs are encouraging 89. MiniCall is easy to use, affordable and complementary to other messaging services 90. There are significant opportunities for ‘voice SMS’ services, particularly in developing markets 91. Document map – Lessons from the top-ten services 92. Successful services are characterised by high-quality end-to-end implementation 93. Several services in the top ten, including the Number 1, demonstrate the importance of mobile operators looking beyond their core business 94. Near-ubiquitous 3G coverage is an important enabler of revenue growth from non-voice cellular services in developed markets 95. Handsets play a critical role in the delivery of mobile services 96. Mobile messaging continues to be important, but operators must not become distracted by picture and video messaging 97. Many of the top ten services have required substantial investment 98. User-generated content and convergence between fixed and mobile services are becoming increasingly important 99. In developed markets, significant investment may be required as mobile operators push beyond their traditional businesses 100. In developing markets, there is strong growth potential in proven services, using standard mobile terminals 101. Document map – Actions 102. Actions for mobile operators [1] 103. Actions for mobile operators [2] 104. Document map – Authors, copyright and glossary 105. Authors 106. Authors (continued) 107. Acknowledgements and copyright 108. Disclaimer 109. Glossary of terms [1] 110. Glossary of terms [2] 111. Glossary of terms [3] 112. Document map – Lists of figures and tables 113. List of figures 114. List of tables