Wireless Data – Doing It Right

WirelessWireless DataData –– Doing Doing ItIt RightRight

Andy Seybold Barney Dewey Jim Hobbs [email protected] [email protected] [email protected]

www.4mobility.com

Active Content—A Success Formula Four Screens of Electronic Content Digital Rights Management (Guest Speaker) Bryan Campbell, Director, Technical Standards Digital Media Distribution, Qualcomm Mobile TV, Location-Based Services, Messaging Wireless Applications Development Consumer Application Development (Guest Speaker) Wayne B. Yurtin, President & CEO, Rocket Mobile Wireless Application Segments and Publishing Challenges Enterprise Wireless Applications Enterprise Application Development (Guest Speaker) Dave Birnback, CEO, Vaultus Mobile Technologies Push-To-Talk Predictions

Don’tDon’t PortPort DesktopDesktop ExperiencesExperiences toto HandheldHandheld ComputersComputers

AndyAndy SeyboldSeybold —— [email protected] [email protected]

3G Network adoption will be driven by applications 2G network adoption driven by voice, SMS 3G Operators need to entice 2G customers to their 3G networks as quickly as possible 3G networks deliver voice, messaging, applications less expensively (and with more capacity) than 2G systems Operators have huge investment in 3G Capex and want to populate the networks as quickly as possible Operators are pushing games, photos, video, audio, other applications to entice customers to try 3G We believe there is a set of killer applications that can help drive this adoption

Displays Input capabilities

Display Need to take advantage of every pixel Small size often requires different layout of information Color enhances readability Input Mobile applications need to anticipate better than desktop Keyboard preferred by many for messaging applications BrowsingBrowsing

Integrated within applications (e.g. Date Book) Transparent entry—either from desktop application or directly on the wireless device Automatically updated on all devices Seamless Automatic notification and alerts of changes

Flight to Dallas Enter in Microsoft Outlook Airline, flight number and hotel Resulting actions on mobile device Departure and arrival times appear in calendar Any changes create an alert and notification Dallas weather icon summary in calendar Notification of unusual weather conditions Driving directions from airport to hotel in calendar Restaurant list within 3 miles of hotel Preferences allow a short, targeted list

Clear Time — Evening in Dallas is free Resulting actions — based on personal preferences Professional sports games dropped into calendar or Concerts dropped into calendar or Films dropped into calendar Additional capabilities Ticket link Directions Drive to client Resulting actions Directions again News icon Order status summary White page look-up from contact list

User experience is critical for success Need new approaches for handheld devices Browser should be last resort for application interface Some 3G operators believe that with higher-speed data services the mobile browser has been reborn! Usability is the most important factor for success Wireless data will explode when user interface solution is developed

HowHow ManyMany ScreensScreens inin OurOur lives?lives?

The next big buzz At least three screens in our lives today TV screen PC screen Mobile phone screen Some believe we should include the movie screen Wireless industry and content providers working to provide access to ALL these screens The mobile screen, in this vision, becomes the command-and- control screen for the other screens in our lives

Wireless screen becomes command-and-control device Just like your TV/home theater remote is your command-and- control device for your home entertainment In Japan and elsewhere, wireless phones are used for financial transactions including banking, paying for services and goods, etc. In some parts of the world you can pay for your parking using your wireless phone And there is a lot more coming… You have seen the beginning of this with the purchase of ring tones, games, video and audio services But we have only just begun…

In addition to existing services you will be able to Purchase video services delivered by other networks MediaFLO DVB-H (Digital Video Broadcasting-Handheld) IPDC (Internet Protocol Datacasting) Purchase a DRM (Digital Rights Management) token via your wireless phone and download the content To your home theater To your wireless device To your PC To a friend’s home theater

Biggest impediment is Digital Rights Management (DRM)—NOT technology There are at least three competing DRM standards Wireless operators do not want to become wireless pipes Watched wired telecom industry reduced to wired pipes Much activity in this area—many ideas and experimentation It is clear that our wireless devices will become command-and-control devices for content regardless of where it is viewed DRM pricing remains a concern, GSM association pushing back on suggested DRM pricing Wireless operators want to avoid the Internet fiasco where content is stolen Operators are being pro-active DRM prices have been trimmed once A DRM expert is next on our agenda

BryanBryan CampbellCampbell Director,Director, TechnicalTechnical StandardsStandards DigitalDigital MediaMedia DistributionDistribution Qualcomm,Qualcomm, Inc.Inc.

Bryan Campbell Director, Technical Standards Qualcomm, Incorporated 206

DRM Primer | Wireless Data University | September 26, 2005

Topics for Today

– Technical and Business Anatomy of DRM

– Wireless DRM Landscape

– Q&A DRM Primer | Wireless Data University | September 26, 2005

DRM’s Value Proposition

• DRM is a flavor of Content Protection – Controls who has access to content and under conditions – Captures the commercial value of the content – Enables intuitive use cases for digital content – Provides mechanisms for governed digital sharing

• Distinct from other applications of security – For DRM the attacker is also the customer!

• DRM is one element among many required to deploy a digital content service – Content discovery & device capability negotiation, – Common CODECS & file formats, – Purchase, billing & delivery, etc… DRM Primer | Wireless Data University | September 26, 2005

Separation of Rights & Content

Rights Objects or Licenses are targeted or bound via asymmetric encryption to a device, user or domain and typically include: • Rules for how content can be used – Rights Expression Languages (REL) Content Object Rights Object typically XML based Content ID Content ID – Permissions Service URL • , , , , , , etc… CEK – Constraints • , , , etc… • Content Encryption Key (CEK) – Unlocks the content – Typically asymmetric algorithms • Service Metadata – URL for refreshing rights • Content ID (or Group ID) – Maps Rights Object to the Content Object DRM Primer | Wireless Data University | September 26, 2005

Typical DRM Flow

Content Server Publishing Content 1. Encryption 1. Content encryption

2 2. Catalog and metadata . C a ta 3. Send offers, keys and usage lo g 3 rules to Rights Issuer U .

s K a e g y e s

R a u n l Purchasing Content d e 5. s Storefront 4. Discover and purchase 4. Pu 5. Content delivery rc ha Rights se 6. Request Rights Object Issuer 6. 8. Sharing Content 7. Freely Distribute Protected 7. Content 8. Other Devices Authenticate and request their own Rights DRM Primer | Wireless Data University | September 26, 2005

Content Distribution with DRM

Certificates Content Issuer PKI CO

Rights CO Issuer RO RO

• Security Mechanisms – Public Key Infrastructure (PKI) targets Rights Objects (RO’s) to devices – Symmetric encryption of content within a Content Object – Protocols for rights acquisition leverage certificates for mutual authentication

• Sharing Content – Free distribution of inert Content Objects – Recipient device then acquires it’s own Rights Object from the Rights Issuer DRM Primer | Wireless Data University | September 26, 2005

Previewing Content

Content Issuer CO CO

Rights Issuer

• Download the content and acquire a ‘Preview’ Rights Object – DRM Primer | Wireless Data University | September 26, 2005

Purchasing Content after a Preview

Content Issuer CO

Rights Issuer

• Download the content and acquire a ‘Preview’ Rights Object –

• To then buy the content you need not download the content object again – Simply acquire another Right Object with broader permissions •

• This mechanism is often called a Rights Object Refresh and can be used to enable many use cases and business models. DRM Primer | Wireless Data University | September 26, 2005

Establishing a DRM Domain

Domain Key

Content PKI Issuer

Rights Issuer RO RO

• Domains provide for easy content sharing between a user’s or group’s many devices. – Rights Issuers typically manage domains but domains can be managed by devices as well.

• The Domain Key is first sent to each authorized device| DRM Primer | Wireless Data University | September 26, 2005

Distributing Content to a DRM Domain

Domain Key

Content PKI Issuer CO

Rights RO Issuer RO CO

• Domains provide for easy content sharing between a user’s or group’s many devices. – Rights Issuers typically manage domains but domains can be managed by devices as well.

• The Domain Key is first sent to each authorized device|

• Once the domain is established, content and rights targeted to that domain may now be shared with no interaction with the rights issuer. DRM Primer | Wireless Data University | September 26, 2005

Subscriptions Management in DRM

Parent RO PKI Rights Issuer Parent RO Content RO Content RO Content RO

Subscription Renewal Via Parent Object

Rights Refresh CO CO CO

• In this example the Content Rights Objects are Child Rights Objects – inheriting permissions and constraints from a Parent Rights Object

• Parent/Child Rights Objects ease subscription service management – Rights Issuer may issue one Parent Rights Object with permissions for all content in subscription – And perform a Rights Refresh to update access to all content DRM Primer | Wireless Data University | September 26, 2005

Bringing DRM To Market Requires

• Common Specifications – enabling a interoperable install base of devices and applications

• And a ‘Trust Model’ – describing an adequate (secure) implementation • Compliance and Robustness Rules

– giving content owners confidence in the technology • Licensing which may provide remedies to content owners for instances of non- compliance in a service or product.

– governing and managing the required certificate authority • Issuing or signing keys • Overseeing the revocation process DRM Primer | Wireless Data University | September 26, 2005

Example Robustness Rules

1.3 Keep Secrets and Maintain Integrity. Participating Product Implementations shall be manufactured in a manner that is clearly designed to (a) effectively frustrate attempts to discover or reveal Device Private Keys and other Confidential values as described in the Confidentiality and Integrity Table in Appendix X and (b) detect unauthorized modifications of values identified as requiring integrity protection in the Confidentiality and Integrity Table in Appendix X and stop the usage of such values if such unauthorized modification is detected.

• Trust Models of Note – 4C for CPRM – 5C for DTCP – AACS for HD-DVD and Blu-Ray – CMLA for OMA DRM 2.0

• Most viable proprietary solutions include similar (often identical) language in their license terms in order to address content provider requirements DRM Primer | Wireless Data University | September 26, 2005

Mobile DRM Landscape

• An emerging market initially with many players – Driven initially by the PC/Internet players – Sony, RealNetworks, Apple, Microsoft, etc… – And characterized by a lack of interoperable solutions

• But mobile phone volumes are impacting the market – OMA has defined an open standard DRM – Wireless operators will deploy their next generation services on OMA or one of the proprietary alternatives which achieve a large enough install base.

• And as IPTV and Mobile Broadcast come to market, traditional and new broadcast content protection providers are joining the fray. – PVR features with playback on multiple devices (e.g. TivoToGo) may drive richer DRM-type functionality into conditional access and service protection solutions.

• Several DRM solutions will likely survive and somehow coexist implying – Support for two or three DRM’s on a given device, – Service management of different device DRM capabilities In the network, – Or perhaps through more ornate interoperability frameworks? Thank You

Bryan Campbell Director, Technical Standards Qualcomm, Incorporated [email protected] Questions,Questions, Comments,Comments, Information,Information, RebuttalsRebuttals

MobileMobile TVTV Location-BasedLocation-Based ServicesServices (LBS)(LBS) MessagingMessaging

JimJim HobbsHobbs —— [email protected] [email protected]

Reception of digital TV signal indoors or when in motion difficult on handhelds using terrestrial network with small antenna. Two solutions being tested : Separate mobile broadcast network (DMB, DVB-H, ISDB-T, MediaFLO) or delivery through 3G WANS (vCAST, MobiTV) Nokia ran early pilot, 41% liked, charged $6 monthly fee Big question is what business model to adopt Some view as killer app for 3G, still unproven medium Time-shifting “boredom busters?” 3G TV: too little, too soon?

Sprint/Nextel Idetic’s MobiTV (November 2003) Won 2005 Emmy for Engineering Development Verizon Wireless vCast Using CDMA2000 1xEV-DO Cingular Idetic’s MobiTV Limited capability/channels 10 to 30 frames per second high-bandwidth phones 2 frames per second low-bandwidth phones Separate subscription + typically suggest unlimited data plan

FUTURE potential enablers Multiple transmission routes Multiple input, multiple output multiplexing (MIMO) Receive data from more than one base station within device range 4G Prototypes (NTT: Variable Spreading Factor (VSF)-Spread OFDM) 32 high-definition video streams traveling at 20 kilometers per hour 100 megabits on move, gigabit when static Still experimental, must become standard (no one can go it alone) Japan and China signed MOU August 24 to work together on 4G NEARER-TERM mobile TV enhancements Texas Instruments planning to introduce OMAP processor interfaced chip called Hollywood in 2007 Capable of displaying video at digital TV resolutions from DVB-H and ISDB-T dedicated networks at 25 to 30 frames per second Qualcomm integrating TV resolution capabilities into CDMA chipsets Deploying MediaFLO network to go online nationwide in 2006

Technology developers Capabilities, power, cost Handset manufacturers Usability Content providers License fees Advertising Publishers Compilations Advertising Operators Unique offerings Usability Spectrum

Network-based, handset-based and hybrid positioning solutions 10 to 12 million consumers have GPS Like camera phones, GPS-enabled phones will exceed single-purpose camera devices Typically enabled using smartphones LBS among top consumer choices for new applications LBS over-hyped during dot-net boom GM OnStar is poster child Hidden enabling technology in many future apps Operators may petition FCC for another E911 waiver

Navigation Friend Finder (presence) Asset Tracking/Logistics Dispatch Security Emergencies (E911) Traffic Monitoring ACTIVE CONTENT

Wireless Service Operator

PSAP

Privacy issues may slow some applications Over-hyped before available (1999-2000) Wireless operators will fight to control and charge for location information Slows adoption Wireless operators fail to meet E911 deadlines again What’s the motivation? Will the FCC impose fines for not complying? Probably! Trend for GPS -based handset location technology Best accuracy except in urban canyons Technology dramatically improved since 1999

Very functional technology for operator to use internally for network optimization, customer service/QoS E911 systems not designed for dense geographic LBS transaction-type loading May help meet global challenge of finding products and services for low RPU markets Eventually a big driver to enhance mobile applications

Short messages SMS—Short Messaging Service Instant Messaging Includes buddy list and presence AOL and Yahoo! have solutions Wireless email & email-enabled applications Seamless connectivity to primary email address May or may not include attachments RIM’s BlackBerry, Good Technology are leaders RIM and GOOD support MS Exchange MMS (Multimedia Messaging Service) Picture mail Video messaging Music

Device Security Over-The-Air (OTA) application management Synchronization IT Manager Automation (role administration) Remote Monitoring/Troubleshooting

WayneWayne B.B. YurtinYurtin PresidentPresident && CEOCEO RocketRocket Mobile,Mobile, Inc.Inc.

• Important a few years ago • Absolute necessity now • Either… - “A Great App” or - “A Great Branded App - Not the old days where so so Apps w/strong brands were satisfactory • Quality, Quality, Quality • User Experience is King Rule #2 – Technology Isn’t Everything

• iPod Mini vs. Toshiba MEGF10L MP3 Player

• Same goes for Wireless Apps • Music Recognition App Example: - Walt Mossberg Demo - “AT&T already did this…” - IVR-based, no user interface, poor user experience - 2 million carrier app downloads in 9 months • User Experience is King, but so is the Carrier… Rule #3 – Carriers are Swamped

• Don’t waste their time • Carrier Centered Design - Operators always looking for innovation - Involve them in your App - Don’t show it too early, but also not too late - When you do, make sure it’s SOLID

• Find multiple champions @ each Operator • Pick your battles (opportunities) carefully • Top tier company example • Create an emotional attachment to your App Know who you are. And who you aren’t…

• Are you a Developer? A Publisher? Both? • Where are your development strengths? - Java - BREW - Series 60 • International Distribution - The allure of getting on as many decks as you can across as many geographies as you can - The pitfalls - Porting costs have become the largest expense for many companies (more than development costs) Market Development

• Technology Partners - They can be your best BizDev Resources - Utilize them! - QUALCOMM example

• Content Partners who believe - National Geographic example for us - Leveraging their strengths Great Apps

• Personalization & Customization • Reduce barrier of entry for new consumers • Extend your reach to just the mobile experience • Use what you have at your disposal: - SMS and MMS capabilities - Microphone input • Utilize the wireless data capabilities - Surprise to date - Ringtone App examples - Ability to make data calls during low usage hours Great Wireless App Characteristics

• They need to be… - Entertaining & Intuitive - Less is more, keep it focused - Satisfy the users desires & expectations - Satisfy the Carrier/Operator desires & expectations - Quality is so very important w/consumer devices - Make it fun – Rocket examples Summary

• Start with great grapes • It’s not about the technology, but about how you package all the pieces • The Operators are your most valued partner • Know your strengths and what you can/can’t do • Guerilla Market Development – use your partners • Be unique with your App (UI to feature set) • Keep it fun! Who Is Rocket Mobile?

• Rocket Mobile develops and markets multimedia and messaging software for mobile phones

• Our software is designed for either:

- OTA download directly by consumers

- Factory pre-load by Handset OEMs Our Customers and Partners for Wireless Company Focus

RocketRocket Mobile Mobile SoftwareSoftware for for mobile mobile phones phones

Handset OEM Business PublishingPublishing Business Business Handset OEM Business Apps & Content FactoryFactory pre-load pre-load Apps & Content Thank You. Q&A… Questions,Questions, Comments,Comments, Information,Information, RebuttalsRebuttals

10 Minute Break After Q&A

BarneyBarney DeweyDewey —— [email protected] [email protected]

Consumer Enterprise Messaging Messaging SMS SMS Email Email Instant messaging Instant messaging Push-to-talk Push-to-talk Location-based services Operations support Entertainment CRM (Customer Relationship Gaming Management) Multiplayer SFA (Sales Force Automation) Information FFA (Field Force Automation) ERP (Enterprise Resource Planning) Vertical Business specific Dispatch

$5,000

$4,500

$4,000

$3,500

$3,000 Graphics & Themes Ringtones $2,500 Utilities & Media $2,000 Gaming $1,500

$1,000

$500

$0 2002 2003 2004 2005 2006 2007 2008 2009

Source: Zelos Group, 2004

Consumer

WML HTML BREW Java SMS MMS SMIL UJML Flash S60 Palm PPC RIM

Verizon Sprint Cingular Nextel T-Mobile ALLTEL

Public Internet

Source: Vindigo Studios Publisher

300,000,000

250,000,000 Total subs

200,000,000

150,000,000

100,000,000 Java

50,000,000

BREW 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

Installed base of Brew/Java handsets (source: Zelos Group, 2004)

100%

90%

80%

70% Carrier deck 60% Online 50% Traditional media + premium SMS OEM bundling 40% Retail store (prepaid or kiosk) 30%

20%

10%

0% 2004 2007

SMS MMS xHTML BREW, Java

Communication Text message Picture message Web mail IM client

Personalization Monophonic ring Wallpaper Catalog of ring Active tones tones screensavers

Entertainment Joke of the day Photo of the day Celebrity news Action game

Information Severe weather New auction Price comparison Interactive map alerts listings site

Rights- holder Publisher Aggregator Operator Developer

Examples NFL Vindigo Qualcomm Cingular Madonna Zingy Nokia Verizon Electronic Jamdat Handango Sprint Nextel Arts Disney Sennari Knockabout Source: Vindigo Studios Landmat

OperationsOperations SupportSupport

M-Commerce

Web Browsing

CRM

PIM

Remote Monitoring

SFA

Corp. Back-end

Email/Messaging

Email w/Attachments

0% 5% 10% 15% 20% 25% 30% 35%

In your opinion, how much time would this wireless data solution save you on your job each day?

Percentage Choice Answered

1 – 2 hours 38.3% 30 – 60 minutes 34.8%

2 – 3 hours 16.5%

Less than half hour 7.0%

3 – 4 hours 3.5% More than 4 hours 0.0%

+ Salary + Benefits + Furniture, Equipment, Facilities + Other Allocated Expenses ≈ $120K to $300K/year/employee ≈ $1 to $3 per minute per employee

AVERAGE SAVINGS

6052 minmin perper dayday x $2 per minute cost ≈ $120$10$4 per per per day day day per per per employee employee employee or or or ≈ $2,600$216$86 per per per month month month per per per employee employee employee

+ Salary + Benefits + Furniture, Equipment, Facilities + Other Allocated Expenses ≈ $120K to $300K/year/employee ≈ $1 to $3 per minute per employee

AVERAGE SAVINGS

60 min per day x $2 per minute cost ≈ $120 per day per employee or ≈ $2,600 per month per employee

+ Salary + Benefits + Furniture, Equipment, Facilities + Other Allocated Expenses ≈ $120K to $300K/year/employee ≈ $1 to $3 per minute per employee

AVERAGE SAVINGS

5 min per day x $2 per minute cost ≈ $10 per day per employee or ≈ $216 per month per employee

+ Salary + Benefits + Furniture, Equipment, Facilities + Other Allocated Expenses ≈ $120K to $300K/year/employee ≈ $1 to $3 per minute per employee

AVERAGE SAVINGS

2 min per day x $2 per minute cost ≈ $4 per day per employee or ≈ $86 per month per employee

Messaging is most obvious winner Email, SMS, IM, picture mail Consumers Entertainment-focused applications Gaming gaining in popularity Actual applications always changing Enterprise Extension of enterprise applications to wireless Messaging Operations support (SFA, FFA, CRM, etc.) Need more creative wireless applications

DaveDave BirnbackBirnback ChiefChief ExecutiveExecutive OfficerOfficer VaultusVaultus MobileMobile Technologies,Technologies, Inc.Inc.

Three Areas Where Firms are Focusing their Efforts:

Sales/CRM Field Service Performance Management Dashboards

 2005, Vaultus Mobile Technologies Mobilizing “Packaged Solutions” & Custom Solutions

Mobilizing Packaged Solutions

Sales/CRM: Siebel, SAP, PeopleSoft/Oracle, SalesLogix, Onyx, Pivotal, Goldmine

IT Help Desk / Field Service: Remedy, Peregrine, Magic, Heat, CA Service Center

Performance Mgmt. Dashboards: Cognos , Business Objects, Oracle, SAP, IBM Data Warehouses

Mobilizing Custom-Built Solutions

Approval Workflow (HR, PO, IT Change Requests, Travel)

Employee Directory, Inventory Applications, Alert Applications

Custom Sales/CRM, IT Help Desk, and Performance Management Reports

 2005, Vaultus Mobile Technologies Critical Success Factors…

Optimize User Experience and Productivity

Application functionality should be the same – whether online or off-line 1 – 2 second response time - regardless of wireless coverage

Rapid Navigation to any data in the application

Navigation should be simple and intuitive 2 – Clicks to all application data

Lower Cost of Implementation and Maintenance of Mobile Applications

Application Studios can cut application development and maintenance in 1/2 Mobile platform should enable reuse of core components across applications

Centralized Control of all Mobile Users, Applications, and Data

One IT “Control Panel” for all Mobile Applications One Security Model for all mobile users, applications, data, and devices

 2005, Vaultus Mobile Technologies The Components of a Mobile Infrastructure

BES/MDS Corporate Firewall Sales System

Internet

Data Mobile Wireless Warehouse Application Network Server

Internet

IT Help Desk Proxy Server

 2005, Vaultus Mobile Technologies Sample Sales / CRM Application

Fast Navigation via View company/contact Quickly navigate thru data customizable tabs info via a single screen via BlackBerry wheel

 2005, Vaultus Mobile Technologies CRM on Blackberry: AIG

Business Issues: Missed revenue opportunities due to lack of timely updates to customer information

Increase Production per rep while maintaining costs

Solution: Deploy CRM system on Blackberry to transform downtime into call note capture and customer information update time

Make all rep account information available on Blackberry.

Results: Increased CRM data accuracy and completeness by 100%, providing improved targeting of marketing programs and increased market share

Increased account rep capacity by 2 meetings per week

 2005, Vaultus Mobile Technologies Sample Service Management Application

Fast Navigation via Consolidated view Accept, update, forward, “specific tabs ” on the of ticket detail via a or close tickets with just home screen single screen “one click ” of the BlackBerry wheel

 2005, Vaultus Mobile Technologies IT Help Desk Today

SLA’s are difficult to report due to lack of accurate data about the trouble ticket process

Costs are too high for Field techs, multiple devices (cell phone, pda, pager)

Inefficient use of field tech time due to lack of visibility into new tickets open at current location

Field Techs are doing “free” trouble tickets, because they never get added to the system

 2005, Vaultus Mobile Technologies IT Help Desk Process With Mobile Devices

Accept, reassign, Submit new Help Desk case Group/individual Diagnose request Help Desk assigned to group notified of new Help Desk reassignment of case or individual Help Desk case case Help Desk case

Requester notified Update Close or Re-open End about case Help Desk Help Desk case resolution case

BENEFITS OF USING MOBILE DEVICES • Faster acknowledgements – reduced number of escalations

• Faster resolutions – increased capacity to handle new help desk cases

• More complete case updates and accurate time stamps – increase SLA reporting accuracy

• 1 device for alerting & working with tickets – reduce cost of technology to support field techs

 2005, Vaultus Mobile Technologies IT Help Desk: National City Bank

Business Issues:

Lower Cost of technology used by IT HelpDesk field Techs

Increase capacity of Trouble ticket process, maintain cost, meet SLA goals

Solution: Leveraged Blackberry platform for device consolidation

Deployed ability to interact with tickets via blackberry, enabling real-time updates to tickets and improved Field Tech efficiency

Results: Consolidated 3 devices (cell, pda, pager) into one device, reducing costs

Increased tech capacity by 10% by recovering 30 minutes/day of downtime

 2005, Vaultus Mobile Technologies Performance Management

Reporting DataDashboards Applications Warehouses Critical Success Factors

1. Instant access to sales , product , and organizational performance data in ANY database 2. View performance by day , week, month , quarter , and year 3. Compare performance vs. “plan ” 4. Quick drill-down from division- region-district-rep. 5. Customizable dashboard views 6. Data refreshed automatically

 2005, Vaultus Mobile Technologies Sample Reporting Dashboard Screens One Hand Navigation Quickly Drill Down Generate Your Own via “Tab” Interface to Specific Data Graphs and Charts

 2005, Vaultus Mobile Technologies Proper Formatting of Data is Critical…

“Dashboard View ” Division, Region, District, Store, Dept. This Year | Last Year Sales | Sales Yesterday’s Sales

Compare Actual Sales This Week Sales vs. “The Plan ”

This Month Sales Comparison of This Year vs. Last Year This Quarter Sales

Customizable This Year Sales Sales Summary

 2005, Vaultus Mobile Technologies Sample Retail Application: Store Sales Reporting

Get to any data with just two “clicks” of the wheel View REGION Performance View STORE Performance

Division Region District  2005, Vaultus Mobile Technologies Store Dept. Performance CIOs Want a Way to Consolidate Mobile Application Support

Sales/CRM Data Field Reporting Other Applications Warehouse Service Applications Applications

Advanced APIs and Integration Wizard Vaultus Mobile Solution

Mobile Communication & Application, Device Application Studio Synchronization Platform & Security Manager

BlackBerry (BES/MDS) Server

Managers

Field Service Techs Mobile Workers  2005, Vaultus Mobile Technologies How to Get Started: We Recommend Pilots

“Application Connector” Customization

End-User Requirements

Draft Develop Mobile Requirements Application Project Document Tasks BlackBerry Client Integrate and Test

Install/ Rollout

Pilot Rolled 3 - 4 weeks out to users

 2005, Vaultus Mobile Technologies Vaultus Mobile Technologies Overview Software firm based in Boston. Spin off from M.I.T.

Investors: RIM, IDG, Allen & Co, Investcorp, China Industrial Bank

Vaultus software enables companies to run their existing Enterprise applications on Blackberries & PDAs

What’s Unique about our Technology?

Patent Pending Compression Technology (10/1ratio) • 100mb of PC data stored in 10mb of handheld memory • 80,000 records on BlackBerry; 200x more data than previously possible

Online & Offline Mobile Data Security • Lease Key Technology protects enterprise data when Radio Signal is OFF

Mobile Application Studio • Graphical tools for developing and maintaining Mobile Applications

 2005, Vaultus Mobile Technologies Our Clients are from Diverse Industries…

• State Street Corporation • U.S. Senate

• AIG Insurance • Provident Financial • McMillan Publishing • Prudential Investments • Hearst Communications • National City Bank • Mercer Consulting • ING • Ricoh Copiers • AT&T • Tiffany Jewelers • TJX (Marshalls / TJMaxx Retailer)

• Republic Services (2 nd largest Waste Mgmt. firm in the U.S.)

• Werner Enterprises (2 nd largest Transportation firm in the U.S.)

• Unifirst (Largest Uniform Supply firm in the U.S.)  2005, Vaultus Mobile Technologies For More Information

David Birnbach

Vaultus Mobile Technologies (617) 399-1112 [email protected]

 2005, Vaultus Mobile Technologies Questions,Questions, Comments,Comments, Information,Information, RebuttalsRebuttals

AA KillerKiller EnhancementEnhancement forfor VoiceVoice

AndyAndy SeyboldSeybold —— [email protected] [email protected]

Push-to-talk technology has been used in two-way radio systems since 1930s Talk button must be continuously pressed while talking Cannot hear others while talking Only one person can talk at a time In some systems, person who wants to talk has to wait for a beep before speaking PTT is used in all police, fire, EMS, business radio systems

Family Radio Service: One user pushes button, other users listen. First user lets go of PTT button, second user can then respond by pushing his/her own PTT button. Only one person can talk at a time. Communications occurs on the same channel (simplex).

Public Safety works the same way. One person talks, others on the channel listen. Can be direct between units or via a repeater system to increase the range. PTT provides one-to-one and one-to-many communications.

Nextel has been offering PTT services over its iDEN network since its inception Nextel’s brand: Direct Connect Originally a regional service nationwide One-to-one and one-to-many (group) services Industry standard other wireless network PTT systems will be measured against The reason Nextel has the highest ARPU and one of the lowest churn rates Nextel has done a great job of marketing affinity group PTT services (e.g., contractors net) Other wireless network operators are entering PTT marketplace

Verizon Wireless Launched service in 2003 Uses technology based on Voice over IP (VoIP) on the packet- data portion of the network Service includes group and one-to-one PTT services across the entire network Recently enhanced its service offering Rumored to be looking at other vendors Sprint PCS Launched service in 2003 Also uses data channel and packet data for VoIP service Service includes group and one-to-one PTT services across the entire network

Alltel Launched service February 2004 Uses voice channel for PTT Kodiak Networks provides PTT system Includes one-to-one and group PTT services anywhere on the Alltel network Groups may be set up on the phone Orange (UK and Europe) First European GSM network operator to launch PTT services Uses Kodiak Networks PTT system More competitors coming

Cingular will announce PTT plus advanced voice services on its network (Rumor) Technology will be provided by Kodiak Networks Handsets from Samsung, Motorola, others Targeting two groups Existing Nextel and commercial PTT customers New teen market, especially groups Not simply PTT, also instant full-duplex conferencing, one-to- many voice mail, instant voice messaging, presence (real time) Could be first true-nationwide serious competitor to Nextel (Sprint Nextel) If? When? How much?

Kodiak is ONLY PTT system other than Nextel that uses voice channel and not VoIP on the data channel This is important because it works across all technologies In GSM/UMTS world works on handsets on both In CDMA world works on cdmaOne, 1X, EV-DO and their handsets Works on analog systems ONLY PTT system that works across every network and technology VoIP systems work only where there are data services VoIP does NOT work well on slower data services or even current version of EV-DO

Feature set is changing as more networks roll out PTT More advanced voice services Convert PTT into full-duplex conference call with single button Send voice mail to group without ringing phones Presence: see who is available before PTT session Instant voice-messaging services

Sprint PCS Ready Link $15/mo. Verizon Wireless PTT Included in total packages starting at $59.95/mo. Alltel Touch2Talk $5/mo. = 100 minutes one-to-one/50 minutes group $10/mo. = 500 minutes one-to-one/100 minutes group $20/mo. =unlimited one-to-one/100 minutes group Nextel Direct Connect At least 100 minutes included in all wireless plans, most include unlimited Direct Connect one-to-one and group minutes

Time (Seconds) Nextel Verizon Sprint Alltel

Set-up time 0.8 to 1.0 6.2 to 7.8 3.6 to 9.8 2.4 to 3.2

Volley Time >1 1.9 to 2.4 1.2 to 1.5 > 1

System Latency >1 3 2-3 > 1 Conversation time (to complete) 30 52 to 72 36 to 45 30

Note: Verizon claims to have improved its system recently but no new tests have been run to verify this

By year’s end or early 2006, most if not all major wireless network operators will offer PTT Most major phone makers are or will be building PTT phones There is a movement to standardize PTT so it will work across networks (today it is network-specific) PTT can contribute to increased ARPU UNLESS network operators engage in PTT price wars PTT will be part of standard wireless network feature set by mid- 2006 Differences between systems (set-up and volley times) will lessen over time PTT systems will include buddy lists indicating who is available for PTT conversation (some do now) PTT becoming part of larger package of instant voice services

Commercial PTT (as opposed to private radio systems) Is great for what it is and does Can be used for non-mission-critical communications Can be used to off-load private networks of admin and other non-essential traffic What Commercial PTT is NOT Not suited for primary dispatch for mission-critical or emergency communications dispatch functions Private systems can be managed by dispatch center and traffic prioritized, not so with commercial PTT Private systems generally not affected by other customers overloading or crowding, not so with commercial PTT It is important to understand the differences!

ForFor TheThe WirelessWireless IndustryIndustry

Voice remains killer application Operators with the lowest capex/opex = most profit Push-to-talk newest voice application Wireless data capabilities building CDMA2000 1xEV-DO, EDGE, UMTS (WCDMA/HSDPA) High-value applications for mobile phones Java 2 Micro Edition (J2ME) Qualcomm’s BREW Smarter phones develop Symbian PalmSource Windows Mobile Smartphones and PDAs more powerful All phones smarter with better color screens

Applications drive market, not technology Enterprise applications SMS (short messaging on handsets) Growing momentum in U.S. Most popular wireless data application in Europe, Asia IM (Instant Messaging) Chance to replace SMS in U.S. as messaging standard End-to-end solutions drive data uptake (and 3G networks) Thumb keyboards becoming data input standard Usability, usability, usability!

In the U.S. there “new” wireless spectrum will be auctioned in the near future Returned NextWave spectrum (auction completed) More spectrum next to PCS band (available after incumbents are moved to new spectrum) 700-MHz TV spectrum (not available until 2009 or beyond) More spectrum being considered Incumbent wireless companies will not be alone at the bidders’ table Microsoft, Intel, perhaps others may make a play

Industry consolidation will continue Cingular/AT&T merger was first Sprint/Nextel completed and integration in process Look for network operators that need more spectrum to merge with those that have it spectrum is currency of wireless success Those who believe spectrum issues will go away because of new technologies on the horizon are just plain wrong! Software-defined radios will NOT cure spectrum issues Spectrum is a finite resource!

Sprint/Nextel merger will create a new dynamic Nextel Sprint’s existing networks will be enhanced with its large 2.5 GHZ spectrum ownership (80% of the country) Allows Sprint Nextel to recast itself into a wireless broadband company that provides any and all types of voice, data, video, audio and other services to homes, businesses, those who are mobile Can it pull this off? It has the spectrum and the desire, but it has a long way to go and a lot of work to do!

As network consolidation continues, more MVNO players In addition to Virgin Mobile, AT&T (wireline), Disney, AOL, EarthLink, Yahoo!, ESPN, even MSN will be selling phones and services using existing networks Advantages for wireless operators are lower cost of customer acquisition, lower churn Look for wired and cable operators to play Some networks will share resources Cingular and T-Mobile sharing Ceases when Cingular/AT&T Wireless merger is completed Some smaller networks might stay with 2.5G for voice and low- speed data offering high-speed over “big-boy” networks

Intel, WiMAX Forum trying to convince all who listen How will they compete with networks with “sticks” already in the ground, wires and fiber on poles, and cable in the ground? Asking for hundreds of Megahertz of spectrum to be made available around the world Deafening hype about an unproven technology, business model that does not appear to be well thought out What impact will Qualcomm acquisition of Flarion have on WiMAX?

A Reiteration New technologies take longer to be commercialized than anyone working on them believes There can be a huge difference between what works in the lab and what works in the real world Most technology advances are incremental in nature Look for Intel to take control of WiMAX It wants and needs a wireless technology over which it has control Unfortunately, some bad decisions will be made by politicians who do not understand technologies and believe what they are being told by others (non-technology folks) There are ways to protect the rights of existing wireless operators and still provide plenty of opportunity for new technologies to be developed, tested, and proven!

Playing politics, NOT engineering supervision Pro broadband over power lines (BPL) A potentially disruptive technology (and not in the good sense!) On an unlicensed spectrum kick, even to the point of giving away spectrum already in use (TV channels) for unlicensed use BEFORE it addresses or fixes existing interference issues It is politics as never before. Damn the technology assessments. What is good for the party is good for the FCC!

Watch this space closely for more examples of this!

Voice pricing continues to fall as 3G voice capacity comes on line Data pricing morphs into all-you-can-eat plus transaction pricing for premium services All-you-can-eat pricing falls below $50 per month Verizon now offers $59.95 on a two-year contract Adding VoIP to wide-area mix creates more pricing issues for wireless operators Networks want to drive cost of bits down Today about $0.10 per Megabyte Goal: Sub-one-cent per Megabyte