John MahoneyChief Operating Officer

Brainstorm

Mobile Business Opportunity

Mobile Multimedia Awards & Showcase

Agenda

1. Background

2. What applications will there be in the future?

3. Why develop these?

4. What technologies will enable these?

• Over 10 years technical and operational experience with large scale, transaction processing systems.

• We develop, host and manage, cost-effective, high quality Mobile Internet applications.

• First to develop SMS based information services in 1995 (for BT Cellnet).

• Created first DTI web site in 1995. Also web site for British Chamber of Commerce and BSI.

• Devised, and hosted ‘Global Class Room’ for Henley Management College early 1990’s. Amongst first electronic ‘distance learning programme’.

About Brainstorm...

200

400

600

800

2000 2001 2002 2003 2004

Million Subscribers

Internet - Future

Year

PCAccess

Mobile Internet

Changing Sources of User Revenue

Time

ARPU

2G 2.5G 3G

Transport and Connectivity

Content and Value Added Services

Based on data from UMTS forum - October 2000

Mobile Wireless and the Internet

• By 2003*, more mobile terminals will access the Internet than PCs

• Mobile access extends Internet reach/usage.

• Mobility drives new applications and services.

* Source: Dataquest/ Gartner Group

The Generation Gap

Generation:

1G

2G

2.5G

3G

4G

Analogue networks

Digital networks (GSM)

General Packet Radio Service (GPRS)

Universal Mobile Telecommunications System- IP based network

802.11b, bluetooth, satellites + 3G + 2.5G

Base StationSystems(cell sites)000’s

Mobile SwitchingCentre 00’s

Fixed NetworkOperator e.g. BT

Basic Elements

Base StationSystems(cell sites)000’s

Mobile SwitchingCentre 00’s

Fixed NetworkOperator e.g. BT

Basic Elements

WWW

Mobile Facts - GSM

• GSM introduced 1994

• Global standard (largely)

• Supports voice, data, text messaging

• 20k plus cell sites in UK

• Over 560 operators in 142 countries

• Over 400 million users and expected to rise to

700+ million by end 2003

• 40m mobiles in UK

• Circa £10bn investment in UK so far

• £23bn committed on licenses alone for 3G

Changing Sources of User Revenue

Time

ARPU

2G 2.5G 3G

Transport and Connectivity

Content and Value Added Services

Based on data from UMTS forum - October 2000

12 steps to deliver mobile content …

Mobile DevicesMobile Devices

MVNO MVNO

Mobile OperatorsMobile Operators

ContentContent

ApplicationsApplications

HostingHosting

ISPsISPs

Mobile PortalsMobile Portals

Customers Customers

AggregationAggregation

InfrastructureInfrastructure

DistributionDistribution

KPN

AOL

The Value Stack

Value

Fixed

2G

2.5G

3G

PTTsISPsContent

Equipment Vendors

ASPs

Hosting

Technologies

Mobile OperatorsContent Service Providers

PTTs Equipment VendorsISPs

wASP

Portals

wASP

PortalsMobile OperatorsPTTs

ContentISPs

Equipment Vendors

wASP Equipment Vendors

Mobile Operators

Service Providers

ISPs

PTTs

Portals Content

Content Value

Applications of the Future

Some BLUE SKY ideas:

• accurate real-time speech to text

• automatic analysis of electrocardiograms and blood tests

• real-time language translation

• intelligent computerised personal assistants

• ubiquitous access to the world’s knowledge bases

• enhanced vision and hearing through implants

• ability to download your memory / personality

Applications of the Future

Some sectors to look at:

• Finance and banking

• Entertainment

• Publications and Media

• Gaming

• Retailing

• Life Style

How are we going to do all this?

Communication Technologies

Time

Pro

du

ct

develo

pm

en

ts

Analogue

Voice

1985 1994 2000 2002 2005

WAP

GPRS

UMTS(3G) Multimedia

GSM Voice

SMS

GSMData

Bluetooth

HSCSDEDGE

802.11b

Today

Mobile Facts - SMS

• Allows text messages to be sent and received between all UK network’s mobiles anywhere in the world.

• Supports 160 characters.

• Single charge regardless of geography (c.12p per message)

• Immune to congestion.

• Confirmation of delivery available.

• Supports data transfer (ring tones and logos etc)

• Store and forward capability

• Discrete

Mobile Facts - WAP

WAP allows true Mobile-Internet convergence.

It manages the constraints of limited bandwidth, delay and less powerful terminal - CPU, memory, screen size and power consumption.

It’s an open standard designed especially for mobiles to display Internet/Intranet information .

Supported by over 75% of the world’s leading mobile manufactures.

Internet pages need to be written in WML (Wireless Mark-up Language).

Internet content and service ‘information’ delivered via a variety of transmission services.

Mobile Facts - Bluetooth

Bluetooth is a standard for the wireless transmission of data between devices by the use of short range radio waves

Bluetooth uses Globally regulated radio spectrum at 2.4GHz.

Range of 10 meters.

721Kbit/s max data rate.

Mobile devices require specific Bluetooth receivers either as an attachment or built-in.

Available 2001 (limited supply)

Bluetooth got its name from the 10th Century Viking King - Harald Bluetooth!

Mobile Facts - GPRS

GPRSGPRS

It’s an overlay onto today’s existing mobile phone network, using existing base stations

User can logon to a range of data networks and servers e.g. Corporate LAN, ISP, e-mail provider, etc

Internationally agreed standard. An asymmetric IP PDN (Packet Data Network). Connected to other packet data networks High speed 171kbps (in theory) On line all the time*.

Internet SP

(WWW)

Company Corporate LANs

Third Party Data Network

GSMGSM

GPRS – The Evolution to Mobile Packet Data

1. Circuit Switched Data

CircuitSwitched

Call duration (Billable)

Call established

Call terminated

Data Bursts

• Costly - except for file transfers• Vulnerable - session lost if call dropped• Slow - 9.6kbit/s @ radio interface, 7.2kbit/s achievable

GPRS – The Evolution to Mobile Packet Data

Packet Switched Data

CircuitSwitched

GPRS

• Shared channel - lowest cost but variable delay• Retained session - potentially for long periods : “always on line”

• With compression, typically 64kbit/s peak rate service perceived

GPRS Data Transmission Speeds

Raw data rates in Kbit/s:

• assumes error free channel, and excludes overheads

Timeslots: CS1 CS2 CS3 CS41 9 13 16 212 18 27 31 433 27 40 47 644 36 54 62 865 45 67 78 1076 54 80 94 1247 63 94 109 1508 72 107 125 171

CS = Coding Schemes

How will Users Connect?

GPRS Terminal Devices for the Mobile Office?

GPRS Terminal Devices for the Mobile Office?

Handset

Office worker on the move – the Killer Ap.

GPRS - Applications

GPRS bearer service will enable applications in the following segment areas:

Telemetry Messaging e-mail Access to the World

Wide Web Job Scheduling and

Despatch Vehicle Location

Services Information services E-commerce

WAP vs GPRS

GPRS is not a competitor to WAP.

GPRS can be used as a bearer for WAP. GPRS alone does not facilitate the access to the Internet. It is best compared to a means of delivery in desktop terms. WAP Gateway's and Browsers are still required to deliver the content.

Mobile Facts – UMTS (3G)

UMTS is........

........Universal Mobile Telephone System

• Currently in development phase

• Expected around 2002 (limited coverage)

• Operates at 2.1GHz

• 2Mbits and above data rates with global roaming

• Allows multimedia and video

• Applications on the move !

What is new with 3G?

• Devices – Screen size, storage capability– Multi-media– Video (stills and clips)– Music (download, store

and play)• Increased speed

– File download / WEB browsing – Improved mobile internet experience– Graphics, speed, shopping

experience• Improved

personalisation

UK 3G Mobile Plans

• Launch Services will include a number of exciting and compelling products and applications based on core capabilities e.g

• Video clips• Postcards• Mobile office products

– intranet access– fast e mail download– fast file download– group working

• Find and guide services• Mobile Music• Advertising• m-commerce

Increasing Data Rates

UMTS

GPRS

ISDN

PSTN

GSM

0 10 sec 1 min 10 min 1 hour

photo report video

clip

web photo video

clipreport

video clip

report

video clip

report

video clip

report

photo

photo

photo

web

web

web

e-mail

e-mail

e-mail

Transmission Time

Application Fit

Consistent throughput Bursty throughput

High th

rough

put

Low throughput

Telemetry

StreamedVideo

InteractiveMulti-Media

UMTS

GSM

HSCSD

GPRS

Info Services

Slow-scanVideo

M-Commerce

File/Image

TransferLAN Access

E-mail

WWWBrowsing

The Future …

Sites for Research

1. www.ayg.com

2. www.computer.org

3. www.mformobile.com

4. www.mobileinfo.com

5. www.mobilestreams.com

6. www.wap.com

7. www.wirelessinanutshell.com

8. The Age of Spiritual Machines – Ray Kurzweil

John MahoneyBrainstorm

London School of Economics

Thank you!

john.mahoney@brainstorm.co.uk

Mobile Business Opportunity

Mobile Multimedia Awards & Showcase