Mobile Software Global Trends

Gian Luca Cioletti

1 © 2008 Nokia

Mobile Software Forum December 16, 2008, St. Petersburg

2 © 2008 Nokia

Mobile Software Global Trends

•What is changing in the markets

•Business models

•Distribution channels

•Summary

3 © 2008 Nokia

Forum Nokia Business Development Team EMEA

Gian-Luca Cioletti

Jure

Sustersic

Jarkko

Tolvi

Patrick

Dalez

Kirill

Zelenski

Rahim

Zaknoun

Benjamin Roszczews

ki

Leader,

Business Development

Location Based Services and Near Field Communicatio

n

Enterprise and Business Mobility

Multimedia CIS MEA Personal Productivity and

Utilities

UK and Ireland, Italy,

Turkey

Alps and Adriatic, South

East Europe

Finbaltics, Germany,

Netherlands

French speaking

territories, Spain, Portugal

Russian speaking territories

Middle East and Africa

Scandic, Poland, Czech Republic,

Slovakia

+358503423554

+358504869523

+358408037360

+358503891632

+358504801487

+358407009694

+358504823831

4 © 2008 Nokia

Forum Nokiathe preferred partner for

mobile developers communities

Our Vision

Forum Nokia’s Roles

•Technical support, providing developers with tools and technical information for a better, easier and faster development on top of Nokia’s platforms

•Create business opportunities for mobile developers

6 © 2008 Nokia

Big Opportunity number 1: mass market

The world in 2010: EUR 100 billion* revenue for core markets

* Nokia and external analysts´ estimates

Digital imaging

Communities

Video & TV

NavigationGaming

Music

Messaging

7 © 2008 Nokia

Big Opportunity number 2: enterprise market

The world in 2010: EUR 90 billion** Nokia and external analysts´ estimates

PPMSCM

Office Suite

CRM

ECM

ERP

Other ApplicationE-mail

DCC

Web conference & Team collaboration

8 © 2008 Nokia

Current and Future Use of Mobile Services, Worldwide (Gartner Q4, 07)

9 © 2008 Nokia

D! client on Nokia phones, some facts…

•Downloads, global markets•Europe, China, MEA, SEAP, India

•Downloads, EMEA markets•Russia, UK, Saudi Arabia, Egypt,

UAE, Iran, Ukraine, Italy

10 © 2008 Nokia

How important are mobile applicationsto the purchase of a handset?

• 86% of panelists said the possibility to install applications to mobile devices is important.

• Almost half of panelists installed add-on applications during the study.

Source Smartphone 360 study 2007

11 © 2008 Nokia

0

80

100

120

Min

ute

s /

Day /

User

20

40

60

Great potential for non-voice services on Nokia devices

Source: Nokia Smartphone 360

* At least twice per week during the panel period

Low Mid High

Other

Navigation and Maps

Multimedia/Gaming

Browsing

PIM

Messaging

Voice

12 © 2008 Nokia

Why does mobile and Nokia matter to developers?

•More than 3 billion mobile phones worldwide - one for every two people on the globe

•Expected to jump to 4 billion by 2010 - roughly triple the number of personal computers

•Approximately 4% of mobile phone users are actively downloading mobile applications.

•Symbian OS device owners are much more likely to be downloaders. In certain EMEA countries, 23% of them are active downloaders.

•Over 900 million Nokia handsets are in use around the world

•More than 150 million S60 smartphones shipped

• Data service usage is rapidly increasing worldwide, principally driven by mobile internet

• Data revenues amount now almost 20% of total revenues globally

• As growth slows down in mature markets, global operators expand to Emerging markets for future growth and service differentiation, mobile VAS market is booming in emerging markets

• Rising the interest to replicate Emerging markets’ business models based on low costs and low tariffs also in more mature markets

• Carriers are dominant distributors of content and applications in their domestic markets

Operator’s ARPU global trends are downward, but…….

14 © 2008 Nokia

Flat rate data pricing stabilizing in most markets

Operator Country GB/Jan GB/JulAustralia Telstra 1 1Austria A1 3 3Bulgaria M-Tel 1,5 1,5Croatia Vipnet 1 1France Orange 1 1France SFR 1 1Germany O2 5 5Germany T-Mobile 5 5Hong Kong1010 1 1Italy TIM 1 0,5Italy Vodafone 10 15Kuwait Zain Lithuania Omnitel 1 1Malaysia Maxis Netherlands T-Mobile 1Portugal Vodafone 1 1Singapore M1 South Africa Vodacom 3 3Switzerland Swisscom 1,5 1,5U.K. H3G 1 1USA AT&T 5

20 € 40 € 60 €0 €Jan 07July 08

15 © 2008 Nokia

Business models & distribution channels

Licensing

Advertising

Subscription

The application store boom….

Content ProvidersRetailers

Operators

Forum Nokia Business Development Team EMEA was consulting Turkcell in setting up their application market place.

On the portal it has been deployed already more then 100 mobile applications from Forum Nokia developers and more are in the pipeline waiting for the deployment.

From the following link: http://www.uygulamapazari.com/StoreFront/Index.aspx?lang=2 you will find the application portal in English

LAUNCHED TURKCELL PORTAL PROVIDING FORUM NOKIA MOBILE APPLICATIONS TO ABOUT 35 MILLIONS TURKCELL SUBSCRIBERS

TELENOR GROUP AND FORUM NOKIA JOIN FORCES

Forum Nokia Business Development Team EMEA reached an important agreement with Telenor Group.

Forum Nokia will start promoting applications and services to Playground, the application portal for Telenor Group.

Playground portal is used by operators belonging to the Telenor Group to select and deploy new applications and services in the markets.

You will find more information from the following link: http://playground.telenor.com/node/887, and the article regarding the agreement at the following link: http://playground.telenor.com/node/899

Summary

The ways people use their phone are changed

The mobile is still the preferred device

Mobile applications can offer new dimensions and more value

The business will be big enough for all the ecosystem

Thank you

19 © 2008 Nokia