CTIA 2002, "That\'s Entertainment", Jean Barrette, Speaker

1. That’s M-tertainment!
Jean Barrette, Eng., MBA
General Manager
Bell Mobility Investments

2. Corporate Venturing Vehicle for Bell Mobility
❙ Goal is to create strategic value for Bell Mobility, Canada’s
wireless Leader
❙ Focus is on wireless Internet
❙ Targeting mainly North American companies
❙ BMI brings operating knowledge from its wireless operations
❙ Vehicles are
– R&D accelerator for early stages
– Equity for later stages
– International Services
First in North America to: First in Canada to:
•Launch CDMA Internet Browser & Instant •Trial Location Based Services
Messaging •Offer wireless internet banking and online shopping
•Personalize content services •Launch Digital Data-to-Go
•Integrate wireless ecare •Mobilize your business by bringing SAP, Siebel,
•Offer wireless conference call service GroupWise, Exchange and Lotus
•Trial 1XRTT
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

3. Wireless Entertainment: What is it?
What I am Doing Wirelessly When I am not Working!
- Bandwidth Requirements +
Segments
Type of Entertainment
Short-Burst Images Music Video
Dating & Games &
-
Time Filler
Chat Gambling
•Comedy •Pictures
•Casino
•Thought of •Drawings
•Trivia
Ability to Pay
the day •Cartoons
•Action
•Logos
•Classic
Social
•Icons
•Sport
•Role Play
Delivery Mechanism
Avid
SMS SMS Embedded WAP
IM WAP
MMS SMS Download Streaming Streaming
MMS IM MMS Download Download
+
Hardcore
Multi-Player
Download
WAP ++
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

4. Revenue and Subscriber Forecasts
Market is Significant for Games
Revenues 2001 2006
• The US market has room for
growth due to the popularity of
Worldwide
Datamonitor $ 950M $ 17.5B Internet and computer games
(Aug 2001)
combined with low mobile
Ovum $ 125M $ 4.4B
penetration
(Oct 2001)
Datamonitor $20M $ 3.04B
US
(Feb 2002)
• In 2001, 30% of the Swedish
Wireless Gamers 2001 2006
population were playing games
on their mobile devices
Datamonitor 120M 510M
Worldwide
(Feb 2002)
• While 22% of World Wide
Arc Group 43M 850M wireless subs played games in
(June 2001)
2001, 42% are expected to play
Yankee 5M 66M in 2006
US
(May 2001)
Source: Datamonitor, Ovum, Yankee Group, Arc Group
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

5. Bell Mobility Experience
Engine of Growth for Wireless Internet
Mobile Browser Hits by Quarter, 2001
(Millions)
❙ 25% of customers 90
80
with dot com ready 70
60
handsets are active 50
data users 40
30
20
❙ Mobile Browser hits 10
-
topped 185 million in Q1 Q2 Q3 Q4
2001, approximately
Mobile Browser Hits Usage, 2001
400% growth
January 2001 December 2001
❙ Games and
entertainment Entertainment
represent nearly half (14%) Other Entertainment
(50%) (50%)
of all Mobile Browser
hits Other
(86%)
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

6. Pricing Models by Operators
What Will You Pay for Wireless Entertainment?
SMS
❙ What is the customer willing to
Free Content
pay?
Charged at SMS rate
Charge at premium
❙ Entertainment cost per hour: Hardcore
Download
– Movie: $3 to $5
Subscription Avid
– CD: $.25 to $3
Pay per download
Social
Pay per packet
– Console Game: $.5 to $.9
WAP Time Filler
– Cable TV: $.2 to $.75
Air time charge
– Internet: $.07 to $1.5
Pay per Use Will not play
Premium bundle
Source: Ovum, Accenture, Bell Mobility
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

7. Value Chain
Migration from Traditional to Wireless Creates Opportunities
Traditional Game Value Chain (retail)
Customer
Console
Publisher Distributor Retailer
Developer
= New Role
Online Game Value Chain
= Strength
Telecom, Customer
PC
Publisher Portal
Developer
ISP, Cable
Wireless Game Value Chain
Online Game Value Chain
Platform/ Publisher/ Network Service Handset Customer
Developer Portal
Application Provider Aggregator Operator Provider Provider
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

8. Value Chain:
Who is doing What
Platform/ Game Value Chain
Online Publisher/ Network Service Handset Customer
Developer Portal
Application provider Aggregator Operator Provider Provider
Infrastructure/Handset Play
= New Role
= Strength
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

9. Value Chain:
Who is doing What
Platform/ Game Value Chain
Online Publisher/ Network Service Handset Customer
Developer Portal
Application provider Aggregator Operator Provider Provider
Publisher/Aggregator
= New Role
= Strength
Brands:
Movies, Toys, Comics, TV, Console Games, Printed Media, Sports
(Disney, Paramount, Warner Brothers, Much Music, Marvel, Sony, Sega, …)
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

10. Value Chain:
Who is doing What
Platform/ Game Value Chain
Online Publisher/ Network Service Handset Customer
Developer Portal
Application provider Aggregator Operator Provider Provider
Developer
= New Role
= Strength
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

11. Value Chain:
Who is doing What
Platform/ Game Value Chain
Online Publisher/ Network Service Handset Customer
Developer Portal
Application provider Aggregator Operator Provider Provider
= New Role
= Strength
Brands:
Movies, Toys, Comics, TV, Console Games, Printed Media, Sports
(Disney, Paramount, Warner Brothers, Much Music, Marvel, Sony, Sega, …)
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments

12. Summary
Investment Opportunities within an Increasingly Crowded
Space
❙ Early stages of the industry
❙ Enablers such as Java/BREW, 1XRTT, better
devices will drive growth and revenues
❙ Time Fillers and Social Players represent
significant potential because of their sheer size
❙ Value Chain
– Console providers are focused on their market
– Platform/App. Developers want to become
Consoles of tomorrow
That’s M-tertainment! • Jean Barrette • Bell Mobility Investments