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1 German American Business Association Mobile Internet Strategy Series /11/2009 Panelists: Holger Luedorf, Senior Director - Strategic Partnerships, Yahoo! Mobile Willie Jow, Vice President - Business Operations & Mobility Products, Sybase Prashant Chatterjee, Director - Mobility & Industry Analytics, SAP Nischal Piratla, Chief Scientist - Mobile Services & Platforms, T-Labs USA Moderator: Daniel Kellmereit, CEO Detecon Inc. Deutsche Telekom Group Deutsche Telekom Group

2 A Brief History of the Internet Fixed vs Mobile Internet The traditional fixed Internet transitioned from a closed model dominated by ISPs to an open model dominated by software service providers. Will the mobile Internet follow? Awareness ? Closed Internet Open Internet Closed Mobile Internet Open Mobile Internet Beginning of service Most content through service provider portal News and basic communications services ( , messenger, etc.) Service and application providers such: as Yahoo, Google, Microsoft, Amazon, Ebay, startups, etc. Basic service Most content through service provider portal News and basic communications services ( , carrier messenger, etc.) Service and application providers such: as Yahoo, Google, Microsoft, startups, Apple? Nokia? Carriers? Today Early ISPs such as: America Online, Deutsche Telekom, British Telecom, etc. Proliferation of services Most content from major news and search portals run by software players Dot-com crash shows need for monetization Advanced communication services (status, t social groups) Tier 1 carriers such as: NTT DoCoMo, Deutsche Telekom, Vodafone, etc. Proliferation of services Well-known software players transfer to mobile Carriers and OEMs want to enter service space Advanced services like status, LBS, etc. mature Time Page 1

3 Ecosystem and Key Players Competitive Challenges New players from the software and internet space bring new mobile competencies which threaten to put carriers at a competitive disadvantage for the mobile service opportunity. Service Scale Global Reach Millions of Unique Visitors Dec Major Markets Ecosystem Innovative Services Global Mobile IM Revenues (US $B) TV Mobile Store Services Apps Partners Computer Entertainment Online Content Source: comscore, Detecon Research, Strategy Analytics, Ovum Page

4 Smartphones Vendors Since 2007 BlackBerry has doubled and Apple has tripled its market share at the expense of Nokia, Motorola, Sharp and Fujitsu. Global Smartphone Market Share Q Palm Fujitsu 2% Sharp 5% Others Sony Ericsson 14% 6% Motorola 2% Samsung HTC 10% Apple BlackBerry Source: Strategy Analytics 2009 Page 3 Nokia 49% 12% 2% 2% 4% 7% HTC 9% Apple Nokia 40% 16% BlackBerry Nokia 15% 1% 37% 2% 1% 4% 6% HTC 10% Apple 20% BlackBerry

5 Smartphones OS Symbian declines. Microsoft stagnates. Apple, BlackBerry and Android rise up. Global Smartphone OS Market Share Q Microsoft BlackBerry Others Apple 12% 12% 10% Source: Strategy Analytics 2009 Page 4 Symbian 6 Android Symbian Symbian LiMo 9% 1% 15% Apple 2% 1% 9% 2% Android 4% 1% 41% 49% LiMo 7% 1% 1 12% Microsoft Apple 16% 1 18% BlackBerry Microsoft BlackBerry

6 Mobile Internet Usage Usage per OS The iphone and Android phones clearly generate the most mobile web traffic of all smartphones relative to sales. Handset Sales Compared to Mobile Internet Usage 65% Handset Sales Mobile Web (AdMob) HTML (Net Applications) 52% 36% 4 7% Symbian Source: AdMob 2009 Page 5 17% 12% 9% 8% 9% 9% 9% 5% 6% 2% 2% 2% 1% 2% RIM Windows iphone Palm Android Other

7 Android vs. iphone Comparison of functionality Both the iphone and Android support a similar range of apps, but Android has the edge in location while the iphone leads in media. 22% Android iphone 17% Direct Comm. 11% 20% Indirect Comm. Source: Detecon Analysis Page 6 14% 14% 12% Video 20% Audio 22% 32% Images 62% Navi. and Location 32% 32% Percentages represent the number of apps within the sample set that support each feature; each app can potentially support multiple features 10% Update Info 39% 35% Browser -Based 5% Back- End Admin. 5% 0% Front- End Admin All categories are well covered by both platforms, Android has a larger number of locationbased applications The iphone generally has more media applications, such as those dealing with images, video and audio. Android is more multi-functional, each Android app handles 2.2 functions, while each iphone app handles 1.8 functions

8 Mobile Enterprise Results of Ovum EVUA study: Which applications matter? Mobile , field force automation and M2M are widespread. Supply chain management, fleet management and mobile marketing are on the agenda. Which mobile data applications does your company currently use or plan to use? Mobile office/mobile 84% 16% Field sales force automation 49% 39% 7% 5% Currently use Don t use now but plan to Don t in next use 2 years and don t plan to M2M 44% 15% 12% 29% Don t know Field service automation 31% 1 25% 31% Dispatch/command control 24% 1 21% 42% Supply chain management 1 32% 9% Tracking and fleet management 1 17% 28% Mobile marketing 9% 24% 24% Other location-based applications 5% 2 15% Source: Ovum EVUA 2008 Page 7 46% 42% 4 57%

9 Mobile Enterprise Corporate user survey results Most corporate users want enterprise applications on their cell phone but are not convinced by the solutions currently available. What users think 82% Mobile access to corporate applications is crucial 76% Current virtualization interfaces are inadequate 67% I want the same access to applications from mobile and laptop 38% 6% Source: Open Kernel Labs 2009 Page 8 My IT department is behind the times in mobile enterprise applications My mobile enterprise applications are intuitive to use

10 Social Network Centric Phones INQ1 integrates social networks. Skype phone sold over 700,00 times since launch in Twitter feature announced for this Summer. Source: Page 9 RIES.PPT TERNET STRATEGY SER GABA_MOBILE INT

11 The Apple vs. the Android Model User experience vs. freedom At Apple user experience trumps openness, at Android it s vice versa. iphone Android Restrictive SDK One handset maker One device, one screen size One carrier per market Little app customization Strict graphic guidlines Open SDK 8-10 handset makers About 20 devices end of 2009, multiple screen sizes Multiple carriers Plenty of customization options, e. g. carrier branding Little rules Limited options, superior and consistent user experience Source: Detecon Inc. Page 10 Many options, fragmented, inconsistent user experience

12 Thanks for attending! contact: Daniel Kellmereit CEO Detecon, Inc. 128 Spear Street, 4th floor San Francisco, CA

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