Corporate Overview

1
Ringbacks Karaoke Tones Beyond Ringtones,
The latest music entertainment for cellular
callers CANTO 2006, Punta Cana, Dom. Rep. 21
June 2006 Porfirio Suarez Director of Business
Development, Latin America Caribbean

• Corporate Overview

2
Agenda

• Why talk about Ringbacks Karaoke Tones?
• Trends in Mobile Data and Content revenues
• Ringback y Karaoke Tones Service Description
• Technical Implementation Methods
• Business Models to Consider
• InterOP Technologies Overview

3
Trends in Mobile Data and Content Revenues
4
(No Transcript)
5
U.S. Mobile Subscriber Monthly Consumption of Content and Applications, July 2005 U.S. Mobile Subscriber Monthly Consumption of Content and Applications, July 2005 U.S. Mobile Subscriber Monthly Consumption of Content and Applications, July 2005 U.S. Mobile Subscriber Monthly Consumption of Content and Applications, July 2005
Activity Projected Percentage U.S. Change From
Activity Monthly Mobile Previous
Activity Reach (000s) Subscribers () Survey ()
Sent or received text message 67,542 37.3 0.1
Retrieved news and information via browser 24,325 13.4 6.6
Used personal e-mail 20,359 11.3 2.6
Used photo messaging 18,752 10.4 10.5
Purchased ring tone 17,551 9.7 1.4
Used mobile instant messenger 17,375 9.6 0.1
Used work e-mail 10,461 5.8 8.5
Purchased wallpaper or screensaver 6,955 3.8 5.7
Downloaded mobile game 6,233 3.4 4.7
Source MMetrics Inc., 2005 Source MMetrics Inc., 2005 Source MMetrics Inc., 2005 Source MMetrics Inc., 2005
6
Wireless Feature Interest Wireless Feature Interest
Wireless Feature/Service Households
Wireless Feature/Service Interested
Wireless Feature/Service ()
Receive local weather and/or traffic alerts through text messaging 20
Download ringtones 18
Ringback service (a song clip plays for callers instead of a basic ring) 16
Use a wireless phone to make dinner or hotel reservations 16
Access the latest news, weather, sports, etc., from newspapers or other publications 13
Make small purchases, such as using vending machines or public transportation, by entering a code on a wireless phone 13
View regular television shows over a wireless phone 10
View short clips or highlights of TV shows, newly released movie previews, or sporting events on a wireless phone 7
View sports programs, such as ESPN, over a wireless phone 6
Source TNS Telecoms, 2005 Source TNS Telecoms, 2005
7
Ringtones Global Statistics

• The Ringtone market was worth just 3.2 billion
  in 2003.
• Lions share of personalization segment which
  will be worth 6.5 billion in 2008 - or 9.3
  billion if you include Ringback Tones as well.
• 2.8 billion in Ringbacks Revenue by 2008!
• Market for mobile entertainment in general will
  be worth a whopping 27 billion in 2008.

8
Mobile Music Market

• For Cellular Subscribers
• Started with Ringtones
• Mobile Music downloads are taking off!
• For Cellular Callers
• Ringbacks is the next step for expanding the
  mobile music experience to cellular callers

9
(No Transcript)
10

• Replace the ringing sound traditionally
• heard by the calling party.
• Provide a highly personalized
• service for each unique subscriber.
• Subscribers can entertain callers
• with popular, customizable
• content while they await an answer.

11
Ringbacks are Network Based

• Retention tool
• You cant take it
• with you!

• Works with entire
• customer base.
• Profitability is realized
• with modest penetration.

No handset roadblocks to limit penetration and
complicate roll-out.
12
Ringbacks Represent Increased
Carrier Revenue Opportunities
13
Carrier Branded Web Provisioning
Subscribers can easily access Ringbacks using a
simple web interface, with access to Karaoke
Tones, Music, True Tones, Sounds, Sports
Anthems, and more.
14
Universal Access to Your Account

• Multiple Subscriber User Interfaces

• Web-based User Interface
• SMS
• WAP
• IVR
• Carrier Customizable
• Branding
• Content Categories/Genre
• Content Selection

15
Superior Platform Architecture

• Unlimited Scalability Technology TrueScale
  Streaming

Enables and supports an UNLIMITED number of
content downloads, both platform-wide, as well as
at the subscriber level.
Content Control Administration System (CCAS)
Fresh content is regularly pushed out to
carrier administrator for review and selection.
16
Additional InterOP RBT Functionality

• Control the experience for each caller based on
  day of the week, or even time of day.
• Playlist and shuffle feature.
• Track content purchasing trends by title and
  genre.
• Optional ring overlay feature.
• Optional caller greeting feature.
• Notify subscribers of approaching content
  expiration dates via email or SMS.

17

Introducing
18
Carrier Branded User Interface

Subscribers can easily access Karaoke TONES
using a simple web interface
19
Fun, Easy to Use, and Intuitive
Subscribers sample Karaoke TONES with or
without Lyrics
Easily mix and adjust vocal tracks
Subscribers use their Wireless phone to record
and save
20
Flexible Technology

• Utilizes TrueScale streaming technology
• 500,000 selections per server
• 6,000 simultaneous connections per server
• IVR trunking flexibility
• Use any standard E1/T1 technology
• Leverages standard IP streaming protocols for
  maximum inter-vendor compatibility

21
Karaoke TONE Content Creation

• Karaoke content ranging from POP, Rap,
• Hip-Hop, Country to Seasonal hits.
• Pull from vast library of existing
• Karaoke libraries.
• Full lyric synchronization, music and
• vocal tracks.
• New Karaoke content produced each
• month pulled from Billboard top 100
• and UK charts.

22
Ringback TonesImplementation Methods
23
Ringback Tones Implementation

• Three primary Implementation Methods
• 1.) Standard Telephony
• 2.) IN Triggers
• 3.) Switch Modification

24
Standard Telephony

• Utilizes tromboning mechanism
• Requires RBT platform to remain in the call
• Short term savings are quickly overwhelmed
• by resource inefficiency.
• Several methods have been used
• Steering digits
• CSMSC modification

25
IN Triggers

• Utilizes standard SCP based IN networking
• Resource efficient method of deployment
• RBT platform remains out of the call
• May require an expensive network wide upgrade.

26
Switch Modification

• Switch patch or feature which creates an internal
  IN trigger in the switch
• Resource efficient as RBT platform remains out
  of the call
• Full benefits of IN method, without the network
  wide upgrade.
• Minimal Impact on CDR creation.

27
IncomingCall
1
28
Business Models to Consider
29
Carrier Revenue Models

• Postpaid Subscribers Examples
• Monthly Subscription Fee 0.99 - 2.99
• Multiple Ringback Content Downloads 0.99 -
  2.99
• Prepaid Subscribers
• 1) Apply same model as postpaid
• Monthly Subscription Fee 0.99 - 2.99
• Multiple Ringback Content Downloads 0.99 -
  2.99
• 2) Market as pure content play
• Single/integrated price for
• share of service subscription fee 1.99/30
  days
• default Ringback Content Download 2.99/60 days
• Valid for (1, 2, 3) months of Ringback Service

30
Ringbacks Purchase Models

• Platform
• Purchase Platform
• Carrier keeps majority or all of monthly fee
• Revenue Share Agreement
• Platform provider keeps majority of monthly fee
• Content
• Revenue Share with Content Provider

31
InterOP Technologies Overview
32
InterOP Technologies...

• Established Market Leader in Hosted Messaging and
  Data Services in North America.
• Over 100 Product Deployments with 35 Wireless
  Carriers in North America in under 4 Years.
• Corporate Headquarters in Ft. Myers, Florida

33
A Long History of Success

• InterOP is the culmination of over 2 decades of
  innovative success as an application development
  firm, and a wireless carrier.
• Chairman James A. Dwyer is founding member and
  former Chair of CTIA.
• Launched and operated the first commercial
  non-test Cellular network in the U.S.
  (Indianapolis-1984)
• Primary influence on Federal Communications
  Commission to reward multiple Cellular licenses
  per U.S. market in 1979.

34
(No Transcript)
35
InterOP Technologies- Summary
Complete ownership and control of the technology
and systems, coupled with a carriers mindset
makes InterOP a tremendous carrier resource.

• Proven, long-term success in the wireless
  industry.
• Reliable, carrier-grade systems.
• Innovative, revenue-focused application design
• Rapid development cycle

36
Thank You!
Porfirio Suarez GSM 1 305 496 7781 psuarez_at_intero
ptechnologies.com www.interoptechnologies.com