Wireless Data: A Mature Market?24th September 2003

Wireless Data Market Today in Belgium

> Today’s wireless data market today is driven mostly by SMS, despite the implementation of new protocols and services by the operators

> About 9,5 million SMS are exchanged daily between users, representing a market of more than € 400 million per year for the mobile operators

> Premium SMS: very high growth 10 million premium SMS in 2001 30 million premium SMS in 2002 80 million premium SMS in 2003, representing about a € 60 million turnover

> The premium SMSmarket allowed businesses to start profitable services in the following domains: Interactive TV/Radio Chat services Entertainment services Marketing services Micropayments Content/news services

> WAP & MMS services are today marginal

Short Term Evolution

> SMS market growth will arrive soon at a maturity stage in the coming 18 months

> New technologies and protocols will however maintain the market in the long term, but the killing apps are probably well known today LBS will be the major improvement in terms of new applications,

although coupled with existing apps MMS will bring along more conviviality and content quality to existing

apps WAP over GPRS will provide a more convenient way to propose the

same existing applications

> We can say that the stage of maturity business wise, is not far from now

> What will dramatically change, however, is the way users will consider their handset

Characterstics of today’s profitable applications

> Business model is based on shared revenue between the operators and the intermediaries. MMS and WAP will most probably follow the same scheme.

> The average transaction amount is 0,7 €> The profitable apps generate high volumes.> The targeted segment is extremely responsive

Teenagers Youg adults

> Are based on immediate response/result

Key Success Factors

> Immediate consumption product> Simplicity of use/easiness of subscription> Take advantage of the impulsive reaction> Large marketing coverage

TV & Radio are the most effective media to generate immediate response by the end-user

Print is OK for entertainment and news services Web advertising has not demonstrated a great

efficiency so far

Case: Interactive TV

Call TV @ RTL