New Patterns in Global Mobile Telephonyworldtel.mobi/media/prod_s3_pub/upload/new... · New Patterns in Global Mobile Telephony A Comparative Review of Webtel.mobi and Growth in the

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New Patterns in Global Mobile Telephony

A Comparative Review of Webtel.mobi

and

Growth in the International Mobile Market

Prepared by Frost & Sullivan

May - June 2009

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TABLE OF CONTENTS

PREAMBLE ................................................................................................................................................................ 3

1. Market Challenges .......................................................................................................................................... 5

2 Industry Dynamics– Substitute Products ....................................................................................................... 6

3 Webtel.mobi – Overview and Assessment .................................................................................................. 11

4 Webtel.mobi – Market Valuation ................................................................................................................. 38

5 Insights on Mobile Communications Market Growth .................................................................................. 42

6 Directions of Growth for the Mobile Industry ............................................................................................. 49

7 Analysis of Target Demographics ................................................................................................................. 50

APPENDIX A............................................................................................................................................................ 53

Comparative Analysis Case Studies ....................................................................................................................... 53

APPENDIX B .......................................................................................................................................................... 120

About Frost & Sullivan ......................................................................................................................................... 120

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PREAMBLE

The objective of this document is to provide an in-depth analysis of new patterns in global mobile telephony, with a

focus on the key groups of service providers.

Against this landscape and based on a market approach valuation, Frost & Sullivan will also assess Webtel.mobi‟s

potential value.

The evaluation is an indicative measure of Webtel.mobi‟s value in the context of current market factors and

economic condition based on Frost & Sullivan‟s analysis.

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Section A

Review of

the Specialized Mobile Provider

Webtel.mobi

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1. Market Challenges

There are two key challenges to further growth in the mobile market. The first one relates to the supply side

and the other is related to the demand side, discussed in turn below.

1.1 Mobile Network Operator (MNO) Incumbencies

Given the historic dominance of MNOs the mobile industry has often seen incidences of anti-competitive

behaviour. These practices – which the European Commission has sometimes described as predatory -

take different shapes and forms. The incumbent MNO stance long espoused by several mobile operators

can also be detrimental to this market as this prohibits collaboration across the value chain. The

incumbency has also led to a limited understanding of user behaviour and demand.

This situation is gradually becoming more and more topical, as pressure groups such as “Terminate the

Rate” http://www.terminatetherate.org/Pages/Homepage.aspx try to bring pressure to bear in an effort to

force down MNO prices. To date, particularly due to the MNOs strong positions in this market, little has

been achieved by such pressure groups, and even the European Commission only achieved partial

victory and concessions from the European mobile industry, despite several years of intense action at

very significant cost.

The silver lining to the cloud, however, is the rise of challenger products. New alternative providers in the

form of mobile virtual network operators (MVNOs) and specialized mobile providers (SMPs) have

entered into the foray and are today, giving the mobile operators a run for their money.

These new players through innovative business models and services are offering more competitive and

compelling services to the end users. Such competition is forcing operators to slowly open up and

collaborate. Operators are also beginning to accept the potential commoditisation of voice and SMS

services.

Hence, focus areas for operators are primarily on competitive tariffs and value-added services. In both

areas, the new players seem to have greater agility and a competitive edge, as they are not encumbered

by legacy networks and obsolete skill sets.

http://www.terminatetherate.org/Pages/Homepage.aspx

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2 Industry Dynamics– Substitute Products

The provision of voice and messaging traffic in recent times has not only been carried out by mobile network

operators. New players/participants are today also able to offer voice and messaging solutions. The current

landscape of mobile voice and text providers can, therefore, be described through the four primary categories

of participants, namely:

- Mobile network operators

- Mobile virtual network operators

- Mobile IP-based providers (mobile VoIP providers)

- Specialized mobile providers (SMPs)

The comparative case studies between Webtel.mobi and well-known MNOs as appended (please refer to

Appendix A) provide the reader with strong insights into the differential operational and pricing strategies

between the mobile network operators and a Specialized Mobile Provider.

As a global Specialized Mobile Provider, Webtel.mobi is positioned to compete directly with MNOs

internationally, and the primary comparisons have, therefore, been against incumbent MNOs in the leading

international markets.

However, in order to provide and illustrate the positioning of Webtel.mobi in relation to all products in the

international mobile telephony market, this chapter will focus on the other three categories, namely Mobile

Virtual Network Operators, mobile VoIP providers, and other Specialized Mobile Providers.

The aim is to illustrate the industry sphere and the position of Webtel.mobi‟s proposition within the total landscape. Five main criteria are used to analyse these providers namely: methodology of service delivery,

quality of service, price, coverage, and specific user requirements if needed.

2.1 Mobile Virtual Network Operators (MVNOs)

MVNOs provide mobile services and applications without owning the access rights to the spectrum.

Consequently, MVNOs acquire those rights from MNOs (that is, the MVNO uses the infrastructure and

services of an MNO together with its own MVNO branding).

However, the agreement between MNO and MVNO can vary based on the network components owned

by the MVNO. It is possible to set up an MVNO having a certain control on the network infrastructure,

because the organization has some skills and knowledge on mobile technologies. This could be the case

of fixed-telecommunication providers that want to enter into the mobile market.

On the other hand, it is possible to have organizations without any skill of mobile networks, which rely

completely on the MNO. This is the case of supermarket chains, media companies, and banking

institutions, just to mention a few examples.

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Considering their dependence on sponsoring mobile network operators, MVNOs can be seen as an

extension of MNOs. An MVNO offers voice and text via an MNO‟s network. Its coverage is linked to the

MNO‟s coverage. In most of the cases MVNOs tend to be national operators. The quality of service

depends on the agreement between the MVNO and the MNO. Price has been historically the key

element of differentiation for an MVNO. The strategy was to enter the mobile voice and text market with

aggressive price plans.

The concept of MVNOs initially grew in North America and Europe. Virgin Mobile UK was amongst the

first European MVNOs, established in 1999. With the Directive 2002/21/EC, the European Union pushed

the establishment of MVNOs across its member states with the aim to open the European mobile market

to competition. However, the phenomenon of MVNOs is gaining momentum in other regional markets, as

illustrated by the chart below.

Currently, price still remains a strong strategic factor for MVNOs. However, there is the need to re-design

strategies, particularly in Europe and North America. Diversifying the offer by introducing mobile value-

added services is a common practice. Virgin Mobile UK, Universal Mobile in France, Poste Mobile in Italy

and Mobilefunk in Germany are examples of MVNOs with a combined offer of voice, messaging, and

innovative services.

Other MVNOs design their strategies around aggressive price plans for specific social groups. These can

be clientele, for example in the case of supermarket and banks and groups of people with common

interests. This is the case of the ethnic MVNOs. An ethnic MVNO is an MVNO that focuses on minority

communities and offer them advantageous packages in terms of voice and messaging.

Global MVNO Subscribers by Region

-

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

2007 2009 2011 2013 2015 2017

Su

bs

cri

be

rs, b

illio

ns

NA LA Europe Africa AP

Source: Frost & Sullivan

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The main focus is to offer limited specific advantageous tariffs to promote communications with friends

and relatives in their country of origin. Lebara Mobile in the United Kingdom, Mobisud in France, Ay

Yildiz in Germany and Belgium are some examples of ethnic MVNOs. Tracfone in the United States

provides migrant communities with special offers.

2.2 Mobile VoIP Providers

Mobile VoIP refers to a delivery method of mobile voice traffic via transportation of IP packets. Examples

of mobile VoIP providers are Skype mobile, Truephone, Fring, and similar products.

The key difference from the traditional method used over the cellular network is the use of the data

protocol IP and the packet switched data networks of the mobile operators. A recent development of

mobile VoIP is the use of Wi-Fi networks, also known as voice over Wi-Fi (VoWi-Fi).

As discussed in the „Global Mobile Market Overview‟ report, mobile VoIP has experienced difficulties in

attracting the attention and the adoption of critical mass of mobile users. This is due to three main factors

discussed below.

i. Costs for Consumers

Mobile VoIP has tried to transfer the Internet-based VoIP model into the mobile space. The objective

being to try to offer VoIP services for calls over the mobile device at a lower rate than that offered by

mobile network operators.

However, the use of VoIP over mobile requires a data package. Consequently, the user has to pay the

call tariff to the VoIP provider and the data tariff to the mobile network operators.

Mobile data tariffs are high (in the case of roaming, these are much higher than standard mobile call

costs) and, in many cases, the pricing mechanisms are not transparent to the user.

ii. Quality of Service

Being an IP-based service, the quality of service depends on the latency, which, in turn, depends on the

bandwidth of the connection and the prioritization routing policies. In many cases, the existing packet

switching data networks of mobile operators do not perform well in terms of latency and routing priorities.

This can result in unsatisfactory call quality.

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iii. User Interface

Although mobile VoIP user interfaces have improved in the last two years, the mobile VoIP software

installation, settings, and features are often still not user-friendly.

Despite these three challenges to face, there are many mobile VoIP providers in the market all

competing to seize market share from the same niche market group, but without mainstream success

despite years of attempting to do so and tie-ups with some MNOs.

This does not seem set to improve in the foreseeable future, particularly when one takes the

(enforceable) anti Mobile VoIP approaches by MNOs into account, examples of which are detailed on the

following links:

http://help.vodafone.co.uk/system/selfservice.controller?CMD=VIEW_ARTICLE&ARTICLE_ID=72318&PARTITI

ON_ID=1&CONFIGURATION=1000&CURRENT_CMD=BROWSE_TOPIC&SIDE_LINK_TOPIC_ID=1009&SIDE

_LINK_SUB_TOPIC_ID=5975&SIDE_LINK_TOPIC_INDEX=null&SIDE_LINK_SUB_TOPIC_INDEX=null

http://www.iphonefreak.com/2009/04/t-mobile-germany-bans-skype-on-the-iphone.html

http://blog.tmcnet.com/blog/tom-keating/voip/tmobile-blocks-voip-again.asp

2.3 Specialized Mobile Providers (SMP)

In the „Global Mobile Market Overview‟ report, the rise of Specialized Mobile Providers in the mobile

voice and messaging markets was highlighted.

These providers adopt innovative telephony switching technologies to allow high-quality call-back

solutions. Unlike MVNOs, they are not linked to mobile network operators. Calls are not IP-based and,

consequently, high mobile data tariffs are not a barrier for users.

The key competitive advantage of Specialized Mobile Providers lies on the quality of the technology

adopted, that, in turn, ensures the quality of the call, the usability of the user interface of the service, and

the ability to offer aggressive pricing plans, particularly for international traffic. In fact, the borderless

nature of Specialized Mobile Providers makes them well suited for this kind of traffic.

This new generation of mobile voice and messaging products is gaining momentum in the mobile arena.

Webtel.mobi is located in Europe, and is a pioneer Specialized Mobile Provider, which is specifically

structured to operate globally and provide full-spectrum voice and SMS services in the same manner as

an MNO (that is, to allow. local, international, and roaming calls and texts from mobile to mobile as well

as mobile to landline)..

http://help.vodafone.co.uk/system/selfservice.controller?CMD=VIEW_ARTICLE&ARTICLE_ID=72318&PARTITION_ID=1&CONFIGURATION=1000&CURRENT_CMD=BROWSE_TOPIC&SIDE_LINK_TOPIC_ID=1009&SIDE_LINK_SUB_TOPIC_ID=5975&SIDE_LINK_TOPIC_INDEX=null&SIDE_LINK_SUB_TOPIC_INDEX=null



http://www.iphonefreak.com/2009/04/t-mobile-germany-bans-skype-on-the-iphone.html

http://blog.tmcnet.com/blog/tom-keating/voip/tmobile-blocks-voip-again.asp

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In North America there are other Specialized Mobile Providers such as Jajah, GlobalTel, Actelephone

and Telequant – but unlike Webtel.mobi they still combine mobile VoIP with their Specialized Mobile

Provider activities, (so do not compete directly with MNOs), and are more focussed on national markets

than on global operations.


3 Webtel.mobi – Overview and Assessment

Webtel.mobi is a Specialized Mobile Provider that offers low-cost and high-quality voice and messaging services

to any Internet-enabled mobile users anytime and wherever they are in the world.

Users do not need to download any software in order to enable the service. A user just needs a basic WAP

connection in order to access Webtel.mobi.

The service does not include data transfer and, consequently, the users are not charged for data traffic. The

service does not include roaming costs, because Webtel.mobi‟s system architecture avoids any form of roaming.

3.1 Webtel.mobi– System Architecture

The core of the Webtel.mobi‟s system architecture is a Next Generation Switch that routes calls and

texts. The data entered by the caller i.e. recipient‟s number is routed toward secure servers which, in turn,

pass the data to the Next Generation Switch. The switch, then, enables the connection.

The chart below shows the system architecture and how it works in the cases of calling and text

messaging services.

Next

Generation

Switch

Caller enters the

recipient’s number, and then clicks “Call”

Secure servers and the next generation switch route the call

The next generation switch

connects the caller and the

recipient over a secure line

Calling

1

2

3 3

OR

Secure servers


Source: Webtel.mobi. Graphics: Frost & Sullivan

3.2 Webtel.mobi – Method of Operation Comparison

The layout and method of operation of the Webtel.mobi handset interface for making calls or sending

texts are structured to closely replicate a standard MNO mobile phone‟s handset interface. The

Webtel.mobi handset interface for other frequently used functions is structured to be easier to use

than a standard MNO mobile phone‟s handset interface. A descriptive comparison is shown over the

page.

Texter enters the

recipient‘s number, types the message, and clicks on

“Send”

The next generation switch

sends the message to the

recipient

Text messaging

1

2

Next

Generation

Switch

Secure SMS servers and the next generation switch route the call

Secure servers


Webtel.mobi Handset Interface Standard MNO Handset Interface Making a call Making a call User enters the number to call, clicks User enters the number to call, presses

on the “Call” button. the “Call” button.

Sending a text Sending a text User enters the number to text, clicks User selects the “Menu” option, selects on “Text” button, types text, clicks on the “Messages” option, selects the the “Send” button. “Create Message” option, types text,

selects the “Options” or “Select Number” button, enters the number to text,

selects the “OK” or “Send” button.

Selecting a contact Selecting a contact User clicks on the “Choose Contact” User selects the “Menu” option, selects

button, selects the contact, and clicks the “Contacts” option, selects the on the “Choose Contact” button. “Search Contacts” option, selects the

contact, selects the “Options” option, selects either the “Call” option or the “Text” option.

Adding a contact Adding a contact User clicks on the “Add Contact” User selects the “Menu” option, selects

button, inserts the contact, and the “Contacts” option, selects the clicks on the “Add Contact” button. “Add Contact” option, inserts the

contact, selects the “Options” option, selects the “Save” option.

Deleting a contact Deleting a contact User clicks on the “Delete Contact” User selects the “Menu” option, selects

button, selects the contact, and clicks the “Contacts” option, selects the on the “Delete Contact” button. “Delete Contact” option, selects the

contact, selects the “Delete?” or “Confirm Delete” option.

Checking call history Checking call history User clicks on the “Call History” button. User selects the “Menu” option, selects

the “Call Register” or “Logs” option, selects the “Dialled Numbers” option.

Checking call cost history Checking call cost history User clicks on the “Call History” button. Not possible with prepaid contracts.

With post-paid contracts, user selects the “Menu” option, selects the “Settings” option, selects the “Cost Settings” option, selects the “Call Costs” option.


Checking text history Checking text history User clicks on the “Text History” button. Not possible on prepaid contracts. Not possible on post-paid contracts.

Checking text cost history Checking text cost history User clicks on the “Text History” button. Not possible on prepaid contracts. Not possible on post-paid contracts.

Checking call credit Checking call credit

User clicks on the “Call Credit” button. Not applicable on post-paid contracts. On prepaid contracts, user dials the Topup number, waits for prompt, selects

an appropriate number for a credit balance prompt. Alternatively, user texts a code number and the balance shows on the handset. Not possible while roaming.

Checking text credit Checking text credit

User clicks on the “Text Credit” button. Not possible on prepaid contracts. Not possible on post-paid contracts.

Other than the above, additional unique attributes with regards to the Webtel.mobi Handset Interface

is that the user can alter his or her own phone number for calls and texts, as follows:-

If a user has multiple mobile phones and numbers: The user can verify several numbers,

and – from his or her same Webtel.mobi account and handset interface - select which one to

use as the “From” number when initiating a call or sending a text. His call or text will then

originate from the phone and phone number which he / she has chosen for a particular call or

text.

If a user rents a local mobile phone in a new country when travelling: The user can then

verify the number, and then enjoy even greater savings on international calls and texts – from

his or her same Webtel.mobi account and handset interface – as these calls will then be

international calls and texts as opposed to roaming calls and texts. The user can also do this

without verifying the number if he / she wants to use the mobile only for calls and not for

texts.

For mobile-initiated landline to landline calls between direct landline numbers: If

travelling or at the office or home, a user can enter his or her landline number in the “From”

section, and can then initiate a call from a landline number via his or her same Webtel.mobi

account and handset interface.


For mobile-initiated landline to landline calls from an switchboard / hotel landline: If

travelling or at an hotel where the call to the hotel will go to the reception and not directly to

the user‟s room, the user can enter the number that he or she wishes to call to in the “From”

section (i.e. his or her home or office number) – meaning that the call will first ring at that

number. That person can then ask for the user by name when the call is put through to the

hotel reception. This can all be done via his or her same Webtel.mobi account and handset

interface.

These features thereby provides a handset interface that is completely flexible, and which also facilitates the

use of multiple numbers from the same account for regular and ad-hoc / one-off additional mobile and

landline numbers.

3.3 Webtel.mobi – Geographic Reach and Pricing

Webtel.mobi can be defined as a global Specialized Mobile Provider. The concept of local operations

does not apply to Webtel.mobi‟s model. Any user can call from any part of the world and the terms and

conditions of the service do not change.

Webtel.mobi at present has a larger collective geographic footprint than any mobile provider worldwide.

Due to the global coverage, Webtel.mobi‟s users are able to use the service at the same costs wherever

they are in the world. They also do not incur any roaming cost, which makes the offer particularly

appealing for mobile users who often incur high and non-transparent costs for international and roaming

calls.

Additionally, as already mentioned, Webtel.mobi does not use data traffic in the same way as mobile

VoIP providers. Consequently, users do not incur very high data tariffs and roaming data tariffs when

making calls or sending texts. The only data cost for using Webtel.mobi is approximately 1 Euro cent for

the connection to http://www.webtel.mobi

It is also very important to highlight that the Webtel.mobi calling time is charged per second, and not

rounded off to the next minute or 30-second increment even if a fraction of a second is used– which is the

standard charging structure for MNOs. This means that a user pays only for the exact time he or she

used the Webtel.mobi service – and this is a significant additional cost-saver. Appendix A illustrates the

clear competitiveness of Webtel.mobi‟s tariffs. Further tariff information can be found on

http://www.webtel.mobi/pc/rates.html.

http://www.webtel.mobi/

http://www.webtel.mobi/pc/rates.html


3.4 Webtel.mobi - Target Market and End-user Segmentation

Webtel.mobi‟s “Affiliate Programme”– aptly known as the Virtual Specialized Mobile Provider (VSMP)

programme is a bespoke ability which Webtel.mobi has developed in order to directly and accurately

target specific customer segments across different geographic regions.

The Webtel.mobi product cuts across all target demographics in terms of its value-proposition. However,

the VSMP programme enables Webtel.mobi to nevertheless tailor its product offering to highly specific

target market sectors in a manner which is unable, at this time, to be replicated by any other mobile

provider internationally.

The VSMP programme is discussed in more detail in the section of this document entitled “Webtel.mobi –

The Virtual Specialized Mobile Provider (VSMP) Programme”.

3.5 Webtel.mobi - Satisfaction of Required Criteria

Webtel.mobi satisfies the criteria of usability, quality of service, and low service costs. This implies that it

has the ideal conditions to address groups of users with specific needs, particularly in terms of costs and

service interface. In addition to that the solution can be customized for serving specific social groups.

3.6 Webtel.mobi – Management

Webtel.mobi has an extremely strong management team, which includes former board members of

leading multinational companies, a senior partner of a major firm of attorneys, a senior executive from a

major international media group, chartered accountants, and a former Minister of Finance of a G8 country

(since deceased).

3.7 Webtel.mobi – Corporate Structure

Currently, Webtel.mobi is a division of the company Worldbizonline.com Limited, which is domiciled in

and operating from the Bailiwick of Guernsey, Channel Islands. It is in the process of being de-merged

into its own company– Webtel.mobi Limited– also domiciled in and operating from the Bailiwick of

Guernsey, Channel Islands. Further details on Webtel.mobi‟s corporate structuring are in the paragraph

below entitled “Unique Corporate Structure Attributes”.


3.8 Webtel.mobi – Product Upgrades and Enhancements

As part of the de-merger process, the Webtel.mobi technical platform has been replicated in a stand-

alone platform, separate from the Worldbizonline.com Limited technical platform. This process is almost

complete.

The replicated platform is also being translated into 18 additional languages, which are German, French,

Italian, Portuguese, Spanish, Polish, Russian, Dutch, Arabic, Turkish, Mandarin, Bahasa Malaysia,

Japanese, Hindi, Korean, Bahasa Indonesia, Vietnamese, and Tagalog.

3.9 Webtel.mobi – Unique Corporate Structure Attribute

Webtel.mobi has achieved success in implementing a working and proven 21st Century decentralised

corporate structure, whereby the requirement for fixed assets, premises, and personnel has been

minimised through the utilisation of contracting personnel, leasing of equipment or premises, and

application of modern communication technology for corporate communication. As a result, the company

and its personnel are able to operate with minimal costs from diverse multinational locations, while still

maintaining professional corporate structure and management to a high level.

3.10 Webtel.mobi- Market Positioning

From the mobile users‟ point of view, Webtel.mobi is an international provider of reference for low-cost

local, international, and roaming mobile calls and texts.

In these market sectors, Webtel.mobi competes directly with MNOs, as shown in Appendix A.

However, in order to fully examine the positioning of Webtel.mobi in the international mobile telephony

marketplace, the following part of this study will illustrate Webtel.mobi‟s positioning with the other primary

categories within the international mobile telephony sector, namely MVNOs, mobile VoIP providers

(MVPs) and other SMPs, by means of case studies on primary example companies within these sub-

sectors.


3.11 Comparative Case Studies – Webtel.mobi versus MNOs

Four comparative case studies between Webtel.mobi and the following operators are presented in

Appendix A.

Bharti Airtel – India (Asia)

Verizon Wireless – USA (North America)

Vodafone UK – UK (Europe)

Vodacom – South Africa (Africa)

These case studies demonstrate Webtel.mobi‟s commercial, operational, and geographic competitive

advantages over MNOs in all major international markets.


3.12 Webtel.mobi versus MVNOs

3.12.1 Virgin Mobile UK

Virgin Mobile UK is currently the most successful MVNO in Europe and the fifth largest mobile

operator in the United Kingdom, with almost 6 million subscribers. It not only offers simple voice and

text plan, but also bundled services that include mobile value-added services. In terms of

international voice traffic, Virgin Mobile‟s offers vary from 15 pence per minute to 80 pence per

minute. The chart below shows a comparison between Virgin Mobile‟s international tariffs and

Webtel.mobi‟s tariffs for calls from the United Kingdom to other countries in the world.

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

Eu

ro c

en

ts p

er

min

ute

Call from UK

International Calls Comparison

Webtel.mobi Virgin Mobile UK

Source: Webtel.mobi and Virgin Mobile UK.

Webtel.mobi‟s international call offering is more attractive than that of Virgin Mobile by 5.3 to 247.8

percent. The same is the case in respect of international text messaging: with Virgin Mobile‟s cost

averaging 20 pence per text, and Webtel.mobi‟s cost averaging 5 pence per text.

Webtel.mobi also presents more attractive pricing than Virgin Mobile in terms of:

Roaming calls and texts

Local calls to other networks and landlines

Local texts

Webtel.mobi‟s coverage in the United Kingdom is also significantly wider than that of Virgin Mobile,

and it satisfies all criteria for usability, quality of service, and low service costs.

Consequently, Webtel.mobi offers a better value-proposition than Virgin Mobile UK.


3.12.2 TracFone Wireless

TracFone is currently one the largest mobile virtual network operators in the United States. At the end

of 2008, TracFone had 11,192,000 subscribers. TracFone users have to buy and activate a Tracfone

cell phone and a Tracfone “Plan” in order to activate and use the service. The activation can go

through a number transfer if the user subscribes to another operator. Alternatively, the user

subscribes to the service via the TracFone Website. He or she creates an account, sets up the phone

and activates the service. Once the service is activated, the user can buy airtime. Airtime can be

bought via TracFone‟s Website, via the mobile phone or subscribing to monthly plans. Prepaid

wireless phones and prepaid wireless airtime cards are also available at over 70,000 retailers

throughout the United States. Tracfone advertises itself as offering the lowest cost mobile rates in the

United States.

The salient points when comparing Tracfone and Webtel.mobi are:

Tracfone‟s geographic coverage only covers certain areas of the United States– not the whole

country. Webtel.mobi‟s geographic coverage in the United States is 100 percent- far more

extensive.

Tracfone‟s call costs within the United States average Euro 0.15 cents to Euro 0.30 cents per

minute– charged per minute. Webtel.mobi‟s costs are Euro 0.035 cents per minute– charged per

second.

Tracfone only allows international calls to limited destinations, and mostly only to landlines.

Webtel.mobi provides unrestricted international calls texts to mobiles or landlines.

Tracfone does not allow international text messaging. Webtel.mobi allows unrestricted

international text messaging.

Tracfone does not allow international roaming. Webtel.mobi allows unrestricted international

roaming.

Users have to buy a Tracfone handset to use the Tracfone service. (various models and prices

on their site).

Tracfone $9.99 Plan allows 50 minutes talk. Webtel.mobi $9.99 Plan allows 203 minutes talk.

Tracfone $19.99 Plan allows 100 minutes talk. Webtel.mobi $19.99 Plan allows 407 minutes talk.

Webtel.mobi‟s international offer is much more extensive than that of Tracfone‟s. The Tracfone service

is limited in coverage and service both locally and internationally, and is more expensive than

Webtel.mobi.

Consequently, Webtel.mobi offers a better value-proposition than Tracfone.


3.12.3 Lebara Mobile Group

Lebara Mobile Group offers mobile services as an MVNO specialized in international traffic in the

United Kingdom, Switzerland, Spain, Belgium, the Netherlands, Sweden, Denmark, Norway, and

Australia.

The strategic focus is to offer convenient domestic bundles and aggressive international traffic plans to

these communities. The chart below shows Lebara Mobile UK‟s tariffs for mobile-to-mobile traffic

between the United Kingdom and China, India, and Poland. These three countries have been chosen

because there are large groups of Chinese, Indian, and Polish expatriates in the United Kingdom.

Lebara Mobile UK is a challenging competitor for Webtel.mobi in relation to specific expatriate

communities‟ traffic from the United Kingdom to the countries selected above. However, Webtel.mobi is

more attractive in pricing for:-

Traffic from those countries to the United Kingdom

International roaming calls

Text messaging


Overall, in terms of overall flexibility and breadth of use, as well as in terms of pricing for roaming and text

messaging costs, Webtel.mobi offers a better value-proposition than Lebara mobile.

In summary, these case studies demonstrate Webtel.mobi‟s commercial, operational, product and geographic

competitive advantages over MVNOs.

3.13 Webtel.mobi versus Mobile VoIP Providers

As covered in the „Global Mobile Market Overview‟ report and chapter 2.2 of this document, Mobile VoIP

providers at present are not fully capable of competing in the mainstream international telephony market. As

such, they cannot be considered as mainstream competitors to Webtel.mobi (or to MNOs, MVNOs or SMPs

in general), and are, therefore, not listed or described in detail in this document.


3.14 Webtel.mobi versus other SMPs

3.14.1 Jajah

Jajah is used as the comparative SMP to Webtel.mobi, as they are very similar in terms of service

propositioning. Jajah is financed by Sequoia Capital, Intel Capital, Deutsche Telekom and Globespan

Capital Partners.

Jajah was launched in March 2006, with the aim of providing an “easy-to-use Web-activated calling”1

solution allowing consumers with Internet access to make phone calls. The company claims to have 15

million users worldwide.

Jajah works anywhere there is an Internet connection. It works on most handsets and it does not

require any software installation. The provision of low-cost telephony tariff remains Jajah‟s core

business.

Jajah‟s tariffs have been compared in the graph below with Webtel.mobi‟s for international calls

between Brazil, Russia, India, China (BRIC), South Africa, the United Kingdom, and the United States.

Source: Jajah and Webtel.mobi. Note: Data Elaboration by Frost & Sullivan. Note: Jajah prices are included of VAT

The chart shows that Webtel.mobi provides lower pricing than Jajah, particularly in the case of BRIC

countries. Webtel.mobi also offers also a lower cost text messaging service to Jajah. The following

aspects are also of particular relevance in a comparison between Jajah and Webtel.mobi.

1http://www.jajah.com/corporate/story/


VoIP Numbers

In order to provide low international call rates to its users, Jajah provides its users with a “local” (that

is, the United States) VoIP number for their international contacts.

If a user wants to call a person in Japan, Jajah will provide the user with a local USA VoIP number to

call.

The user then calls the “local” VoIP number, and the call is switched over VoIP to the international

number.

This system restricts the ability of the user to use the “local” number when roaming, as it is no longer

a “local” number.

The mixing of Mobile VoIP aspects in a specialised mobile provider offering dilutes its SMP offering.

Geographic Coverage

According to Jajah‟s call pricing list, there are 91 countries which are not represented, (most in

emerging market countries), and therefore, in those countries the Jajah service cannot be used.

In Jajah‟s previous website, it was stated that users phoning from these countries would have to pay

generally over one and a half Euros per minute. In Jajah‟s current website, no reference has been

made to this, and no explanation for the countries not being serviced has been provided.

Webtel.mobi provides its services to and from all of the countries not covered by Jajah, and does so

at clearly reflected rates.

Webtel.mobi, therefore, has much wider international geographic coverage than Jajah, and provides

transparency as to call costs.

Call Costs

On Jajah‟s previous Website it stated – “Applicable rates are displayed during the call and may vary

depending on the operator”. and “Rate comparisons are based on JAJAH surveys of typical call costs

… Data was gathered from publicly available websites of representative carriers in the specific

countries. Savings for the JAJAH community worldwide is calculated using typical JAJAH savings in

major countries”.

Although these comments have been removed from Jajah‟s current website, its illustrated and actual

pricing models have not changed.

The pricing reflected on the Jajah site does not include VAT and other taxes, and does not state

whether the costs reflected are for desktop-initiated calls, VoIP calls, or whether the charges include

both legs of a mobile-initiated call or only the one leg (that is, half the cost).

On Jajah‟s current Website, its own “Sample Rate Comparison” charges conflict with its own “Rates”

charges.

Therefore, the actual costs for a Jajah mobile-initiated call remain unclear from the illustrated

charges, and can only be ascertained when calling.


Text messaging Length and Cost

Jajah text messages have a variable character limit per text – from 124 characters to 145 or 148

characters (depending on the country to which it is sent).

A standard and universally-accepted norm for a single text message length is 160 characters per

SMS (that is 29 percent more text messaging space).

Jajah does not provide details of its text messaging costs, stating that “The price for sending the SMS

varies, depending on the destination”.

For recipients being able to reply to a text message sent from Jajah‟s platform, Jajah states that “If the

recipient of the message will reply to the SMS, you won’t get it”.

The Jajah text messaging service is, therefore, not transparent enough to comment on, but clearly

does not apply generally accepted norms in respect of text messaging, and is possibly a text

messaging or instant messaging hybrid.

Webtel.mobi provides clear pricing for its text messaging service, 160 character text messages, to all

destinations, to which recipients can reply. In tests done to date, Webtel.mobi has also provided

these text message services at consistently lower costs than that of Jajah.

Webtel.mobi‟s service is more transparent than that of Jajah, has more competitive pricing, a wider

range of calling and text messaging service, wider geographic coverage, and does not mix mobile VoIP

with SMP services.

As such, Webtel.mobi has a commercial, pricing, product and geographic competitive advantages over

Jajah, and an overall better value-proposition.


3.15 Webtel.mobi – Unique Selling Points

3.15.1 Market Dominance in terms of international Geographic footprint.

It has the widest international footprint, with the same low operational costs, providing the same

rates, on all makes and models of mobile phones, and the ability to market in, and do business in,

any country

.

3.15.2 Lowest call and text cost of any provider internationally.

Its call and text rates together average 80 percent less than any other provider internationally.

3.15.3 Lowest operational costs versus revenues ratio within the mobile industry.

With operational costs versus revenues ratio of 0.07 percent (average) per country, as opposed to 70

to 80 percent for other MNOs, it presents an undisputed saving (and value) of 70 to 80 percent of

revenues per country.

3.15.4 No requirement for licence fees.

With licence costs per country varying from several billion Euros to tens or hundreds of millions of

Euros, its non-requirement of license fees represents a saving (and/or value) of 195 countries‟

potential licence fees.

3.15.5 No requirement for masts

Non-requirement of masts results in additional savings (or value)

3.15.6 No requirement for retail outlets/premises/staff

In addition, a saving of hundreds (or thousands) of retail outlets - with accompanying infrastructure

and staff to man and administrate this structure - results in significant saving (and/or value).

3.15.7 No requirement to provide or subsidise/Non-requirement of providing or subsidizing handsets

(or provide SIM cards or contracts)

Again without having to provide or subsidise handsets significant savings are achieved

3.15.8 Unique VSMP implementation ability

It has the ability to obtain captive client bases at no cost, with a seven to fourteen day turnaround

time for implementation, and the follow-on advantage that the affiliate markets the product under its

own name to take advantage of its brand/client loyalty (thereby allowing for the most effective user-

targeted marketing possible).


3.15.9 Ability to position for signature international events at no cost

Due to its structure, Webtel.mobi can establish VSMPs for stand-alone events (for example, the

Olympic Games, the FIFA Soccer World Cup, etc) without having to pay the prohibitive fees usually

required, and can access the attendants of such events and accrue the value of having a bespoke

service associated with or tailored to the event.

3.15.10 Further financial benefits

No requirement to charge VAT to end users; therefore, it has the ability to pass further cost

savings on to end users

No requirement to pay corporate tax

3.16 Webtel.mobi – Virtual Specialized Mobile Provider (VSMP) Programme

3.16.1 Introduction to the VSMP Programme

The flexible structure of Webtel.mobi‟s solution allows the company to appoint and activate VSMP

affiliates internationally and at will. Through this capability, Webtel.mobi has achieved not only a

larger coverage than any mobile provider internationally, but also:

The capability to become the largest mobile provider in the world in terms of the number of local,

national and international mobile providers (VSMPs) operating under its auspices

Direct access to the largest pool of potential clients in the world, of any mobile operator, through

worldwide and sector-wide VSMPs that have existing and direct relationships with their own client

bases.

The capability to appoint and own VSMPs internationally is currently unique to Webtel.mobi, and is

possible only due to Webtel.mobi‟s corporate structuring being planned from inception to be able to

implement this programme. This structuring cannot at present be replicated by any other mobile

provider due to administrative, structuring, legal, technical, and other restrictions. This places

Webtel.mobi in the unique position of having no direct competitors at this stage.

It is estimated that the time required for this capability of Webtel.mobi to be replicated would require a

minimum of 18 months to two years for development and structuring, and would cost in excess of

Euros 400 million.


3.16.2 VSMP Programme Description

The concept of MVNOs is already established and well known. As discussed earlier, MVNOs have

proven to be extremely effective in the international mobile marketplace, but have the following

restrictions:

They require a long time to structure and implement.

They are extremely expensive to set up.

Currently they operate off the infrastructure of MNOs, they have as a legacy all of the restrictions

of an MNO operation versus an SMP operation in terms of licence fee requirements, and huge

infrastructure and personnel requirements and expense.

The VSMP programme operates in the same manner as an MVNO programme, with the following

strategic differences:

The only entity in the international mobile market that currently has the capability to implement a

VSMP programme is Webtel.mobi.

Webtel.mobi is able to set up a VSMP in totality, anywhere in the world, within two weeks, at no

significant cost to either Webtel.mobi or the VSMP.

The VSMP is able to provide its services to its client base in the same borderless manner as

Webtel.mobi, and has (and passes on to its users) all of the various USPs and advantages

inherent in the Webtel.mobi service.

3.16.3 Method of Implementation

Due to the structure of Webtel.mobi, the implementation of a VSMP programme is an efficient and

rapid process, as described below:

A potential VSMP is identified and approached.

Upon agreement, Webtel.mobi constructs the bespoke VSMP sites and service. The technical

and other requirements for this have been streamlined, so implementation takes only two weeks

from inception to completion.

The VSMP service is tested, and then made live.

Webtel.mobi is responsible for technical support.

The VSMP is responsible for administrative support, user liaison, and marketing of the service to

its existing user base. This is usually merely a continuation of the VSMP‟s established activities,

as they often have their own established user base that they already support/communicate with.

The VSMP receives a percent of all calls and text messaging spend via its service. This is a

lucrative alternative source of revenues with minimal capital outlay.


Entities which have become, and can become, VSMPs include:

Universities and tertiary/other educational institutions

Consumer organisations

Retail and wholesale organisations

Trade and professional member organisations

International social networking entities

Medium and large corporations

Significant businesses or entities in local, regional, or national context

3.16.4 VSMP Unique Attributes

The VSMP programme has unique attributes, which can only be implemented by means of the

Webtel.mobi VSMP Programme, as discussed below.

The programme provides the ability to effectively engage directly with extremely specific user

groupings. MNOs and MVNOs have, for many years, been attempting to engage with specific

potential user groups, but have not been able to do due to the general coverage or nature of

their service offering. However, by appointing a specific organisation which already has an

existing membership base of, and direct relationship with, a very specific user group,

Webtel.mobi gains direct bespoke access to an extremely targeted user group. Other than this, it

also gains the existing brand loyalty and support which the VSMP already enjoys among its

existing user/member base, which will influence its users‟ usage of a service which is their own,

and for their/their organisation‟s own benefit (as well as providing lower rates). This constitutes a

breakthrough in the quest for direct access to extremely targeted user bases.

The programme provides the ability to appoint one or more national VSMPs in any country

internationally

The programme provides the ability to appoint VSMPs for bespoke organisations within a

country, or bespoke international organisations.

The programme provides the ability to provide bespoke structuring packages to suit the specific

requirements of specific VSMPs or their unique user bases.

The programme provides the ability to be the only entity at present, which can appoint and

implement as many and as varied a number of VSMPs, as required, at no considerable cost, in

any country in the world which not only markets to their own established membership bases. It

also provides these membership bases with a product that lowers their calling and text

messaging rates by an average of 80 percent - while still generating a high percent of revenues

for the VSMP.


3.16.5 Current Implementation of the VSMP Programme

The VSMP programme was initiated according to a three phase approach, as described below.

Phase 1 was the initial appointment of regional organisations with localised member bases

Phase 2 involved the appointment of medium sized national and international organisations with

national or international member bases.

Phase 3, which is also currently in process, is the appointment of large multinational

organisations, with large member bases spread throughout the world.

Phase 1 has seen the appointment of eight VSMPs with a combined membership base in excess

of 2.3 million persons.

Phase 2 has resulted in the progressing of discussions with 11 potential VSMPs, which are at

the stage where they await a final decision from their boards to implement. Their combined

membership is in excess of 30 million persons.

Phase 3 has seen the progression of discussions with two potential VSMPs with a combined

membership of 180 million persons.

To date, there has been a 99 percent success rate of entities, which are offered a VSMP

appointment taking up the appointment.

The VSMP programme has resulted in appointment of, finalisation of discussions with, or

progression of discussions with, entities in more than 40 countries, which have a combined total

membership of 212 million persons– all within 60 days of the initiation of the VSMP programme.

3.16.6 Special Event VSMPs

As a result of the VSMP capability which Webtel.mobi has created, it is also able to establish Special

Event VSMPs internationally, which are able to provide calling and text messaging services to captive

markets during special events.

Examples of such special events are:

2010 Winter Olympic Games in Vancouver

2010 Soccer World Cup in South Africa

2012 Olympic Games in London

As well as all similar sporting and other international and national events.


The VSMPs set up for these special events can be set up by Webtel.mobi at no cost, and without the

requirement to pay sponsorship fees. They can be set up within two to three weeks, either under the

direct control of Webtel.mobi, or managed by a local entity of substance, which will be appointed as a

VSMP for the specific event.

They will be branded for each event, and bespoke pricing and/or packages for persons visiting the

event will be provided per event.

Webtel.mobi has already established the URLs for more than 75 special event and national VSMPs.

3.17 Webtel.mobi – Unique Marketing Programmes

3.17.1 Introduction to Webtel.mobi’s Unique Marketing Programmes

“Success is a direct result of knowing how to market a brand and having the right people

representing the brand” Greg Norman

“Next to doing the right thing, the most important thing is to let people know you are doing

the right thing” John D. Rockefeller

The quotes mentioned above clearly reflect the need for good marketing.

Webtel.mobi has strategically focused its initial unique marketing efforts on both user signup and

creating brand awareness through leveraging of unusual and creative marketing strategies based on

sound marketing principles that will achieve exponential worldwide marketing benefit at minimal cost

to company.

The unique marketing strategies for user signup are the VSMP and Special Event VSMP

programmes, as described in the previous section. This section describes two unique marketing

programmes aimed primarily to promote global brand awareness, with user signup as a secondary

consideration.

http://www.woopidoo.com/business_quotes/authors/greg-norman-quotes.htm

http://www.woopidoo.com/business_quotes/authors/john-rockefeller-quotes.htm


3.17.2 International Viral Video Competition

The aim of this strategy is to brand the name and activities of Webtel.mobi (primarily in the 18 to 35

year old demographic group), in a manner which is cost-effective, targeted, international, and geared

toward obtaining a positive view of the brand name among the target demographic market.

Generally speaking, the customary manner to achieve this would be a combined of a television and

print media advertising campaigns, spread over multiple countries, in ad-breaks on television

programmes airing in prime time, and in youth-oriented magazines. This would have to be done

simultaneously in multiple countries in multiple languages. The cost of such international campaigns

typically starts at US$100 million.

To achieve a similar result, but in a unique manner, Webtel.mobi has:

Appointed two leading brand companies in the viral video marketing sector: Unruly Media

(http://www.unrulymedia.com/) and Zooppa (http://www.zooppa.com/)

Implemented an international viral video competition to create videos on the advantages of

Webtel.mobi in respect of its primary services (that is,. local calling and text messaging,

international calling and text messaging, roaming calling and text messaging, geographic

footprint and ease-of-use)

With one of the highest levels of prize money in the history of the Internet, valued at £50 000

(which is the same cost for producing one bottom-end marketing video)

The above activities have resulted in:

What the experienced viral marketing companies predict will be an extremely high number of

international entrants in a viral video competition

A positive reaction toward Webtel.mobi from the 18 to 35 year old demographic internationally

Entrants from more than 11 countries

Discussion of this competition among Zooppa 40 000 members and their friends, above 1,000

video production entities, online and offline media, and an overwhelming positive view of the

company‟s progressive approach

A projected 50 to 100 video entries, which represents either a saving or a gain of £5 million to

£10 million, as one video would cost the company between £50,000 and £100,000 to produce

Guaranteed and ongoing publicity for the two months of the competition and beyond

Thereafter a guaranteed viewing of the winning video by 500,000 persons, and a projected

viewing of the winning video by 2.5 million persons

Thereby achieving branding coverage, marketing and that is worth a large sum of money.


A synopsis of the viral marketing competition campaign is provided below:

The aim of this marketing strategy is product branding of Webtel.mobi, according to the terms of

the Competition Brief, which can be seen at: http://zooppa.com/contests/webtelmobi

The projected number of entrants ranges from 50 to 100

The number of persons exposed to the competition (and the brand to date) is a combination of

Zooppa members, production teams contacted by Unruly Media, and persons who have viewed

press releases, media reports, and blog postings on the competition. This is, estimated to total

about 30 000 persons, in 11 countries

The guaranteed (by Unruly Media) number of views of the winning video is 500 000

The projected (by Unruly Media) number of views of the winning video within three months is 2.5

million

The campaign primarily targets the 18 to 35 year old demographic group

Unruly Media runs the International viral top 20, (http://viralvideochart.unrulymedia.com/) and is

considered one of the leaders in the Viral Video marketing sector.

The campaign is proving to be extremely successful. There are international discussions on the

competition in multiple languages. Additionally, even though video advertisements are usually only

placed in the last two weeks of the two month period, several initial video advertisements have

already been placed - see: http://www.zooppa.com/ads/webtelmobi

Webtel.mobi will be awarding the prizes for the best video advertisements at the “Webtel.mobi

Cannes Viral Film Festival”, which Webtel.mobi has set up by itself. It is projected that this award

ceremony itself will result in international media exposure and goodwill towards the Webtel.mobi

brand from the 18 to 35 year old demographic, which value and exposure will far exceed the cost

thereof.

http://viralvideochart.unrulymedia.com/

http://www.zooppa.com/ads/webtelmobi


3.17.3 Global Media Event

The aim of this strategy is to achieve the blanket/saturation branding the name and activities of

Webtel.mobi internationally to the levels of household brands like Coca Cola and Microsoft

This is done through international and multilingual television advertising in prime time in all countries.

Typically, this would be very challenging to achieve, as it would usually require an international TV

advertisement campaign that would:

Be interesting to a wide range of age and income groups

Be contextually different advertisements per country and culture

Require multilingual dubbing for the advertisements

Need to obtain local or international TV/big screen/television or film stars to guarantee interest

and viewing across all countries/cultures/ages/income groups

Have to allow repeated prime time airing of the advertisements in all countries internationally and

simultaneously

All of which would cost in excess of US$1.5 billion to US$2 billion

In order to achieve the same result, but without incurring a hefty outlay, Webtel.mobi has structured a

Global Media Event that will achieve all of the above, over a period of four days, at a cost of

approximately £250,000. It will also, as a subsidiary activity, result in driving user signup to

Webtel.mobi. The challenges are:

To generate an international television insert which in and by itself will be so unusual, interesting

and exciting that it will guarantee the generation of sufficient interest across

national/cultural/demographic boundaries to ensure maximum viewership worldwide.

To ensure that coverage of this event will be broadcast on more than 500 television channels, in

all countries worldwide, in multilingual format, in prime time without paying for it

Webtel.mobi is addressing these challenges by:

Staging the first man-powered intercontinental flight in history, with a person exiting an aircraft

over Africa and flying across the Atlantic Ocean with wings on his back to land in Europe

Having the entire event Webtel.mobi blanket-branded, including the aircraft, wings, helmet,

jumpsuit, helmet, and landing zone

Entering into an agreement with the Associated Press Television News (http://www.aptn.com), to

telecast the event to more than 500 television channels internationally (with syndicated channels

quadrupling the number of channels that will broadcast it)


The event will be aired globally across all countries and in all languages, as editorial during prime

time news. This means, the event will be viewed by an international audience, in excess of 1 billion

viewers globally

In addition to the television coverage, the event will be reported on by almost every print media

medium in the world on the day after the event. It will also be covered/reported on by several hundred

online forums, blogs, and publications both before and after the event.

The event is expected to obtain international saturation media coverage to a value exceeding US$1.5

billion.

Furthermore and equally importantly, videos and photos of the event will be available for viewing and

downloading free-of-cost from the webtel.mobi/pc site, but only to members of Webtel.mobi. This will

result in driving additional user signup.

3.18 Webtel.mobi – Strategic Marketing Strategy

The strategic marketing strategy adopted by Webtel.mobi calls for the extension of its strategic global

reach by means of VSMP establishment, prior to the implementation of marketing programmes to

increase individual user numbers on the Webtel.mobi of VSMP platforms.

This required strategy for driving up individual user numbers is a matter of well-established process and

well-known marketing methodologies, being the bespoke structuring of particular “text packs” or “talk

packs” which bundle a predetermined number of either text messaging or talking minutes into a pack, for

a specified monthly payment.

These packages – structured to cater for the varying potential markets - along with corresponding

marketing campaigns in print, electronic or internet media, are standard operating procedures for

increasing user bases in the global mobile market. The only major variable between mobile companies in

respect of these campaigns is the price differential between providers.

As Webtel.mobi has a global competitive advantage in several calling and text messaging brackets, and

as mobile users are agnostic in respect of provider and are driven primarily by cost considerations, the

result of standard marketing campaigns by Webtel.mobi would be a steady increase in client levels

according to historical market norms.


However, as the formulation and implementation of these strategies require as much - if not more – time

than the securing or establishing of VSMPs, Webtel.mobi‟s First Phase marketing strategy is to

concentrate on securing or establishing VSMPs as opposed to driving up individual user numbers.

This strategy has been adopted as securing a national (or large) VSMP by Webtel.mobi is in their

assessment the same as a MNO securing a national licence. As a comparison, for a national license to

be secured by an MNO, the following applies:-

The payment of the license to national authorities in order to be able to provide the service in the

country, to access potential clients.

The establishment of a national retail and mast infrastructure in order to be able to provide its

services directly to users.

The employment of personnel, and the purchase of handsets through which to provide potential

users with access to the MNOs SIM cards and network.

The differences between Webtel.mobi securing a national VSMP and an MNO securing a national

license are as follows:-

Neither the national VSMP nor Webtel.mobi has to pay a national license fee in order to be able

to provide the service in the country, to access potential clients.

Neither the national VSMP nor Webtel.mobi have to establish a national retail and mast

infrastructure in order to be able to provide its services directly to users.

Neither the national VSMP nor Webtel.mobi have to employ personnel, or purchase handsets,

through which to provide potential users with access to the national VSMPs service and network.

The similarities between Webtel.mobi securing a national VSMP and an MNO securing a national licence

are as follows:-

Securing a national VSMP which is an established national company or entity with a national reach

secures the same advantages and possibilities as a national license for an MNO. That is,

Webtel.mobi – through the national VSMP - has access to a marketplace where it can provide its

essential service to users. It is therefore a given that Webtel.mobi – through the national VSMP - will

increase its user base steadily provided that it remains competitive in price and service delivery.

The most important marketing consideration then, for Webtel.mobi, is to secure national (and Special

Event & other large) VSMPs, as all other marketing campaigns thereafter are well-known and proven

marketing processes, as in the first paragraphs of this section.


Added considerations for Webtel.mobi‟s decision to first secure multiple national, special event and other

VSMPs prior to concentrating on driving up individual user numbers are as follow:-

Webtel.mobi is at this time able to roll out the VSMP programme globally, and wishes to capitalise

on this market dominance to the maximum prior to any other competitors altering their own

business models to try to replicate it.

Many VSMPs will already be competent in marketing, and will be able to effectively market their

services without the requirement for Webtel.mobi to either assist them or to implement marketing

on their behalf. For example, many industry-specific VSMPs already have a user-base with which

they currently communicate regularly.

It is, in this first phase of marketing, of far higher value for Webtel.mobi as a brand to establish

many VSMPs with lower initial user numbers than to have fewer VSMPs with higher user

numbers.

The time and effort taken to drive up user numbers within one VSMP is far better utilised to secure

many VSMPs with much higher potential user numbers, which user numbers can be steadily

increased through the implementation of standard marketing campaigns in the second phase of

marketing.

Webtel.mobi initiated the VSMP programme by establishing VSMPs with smaller organisations such as

universities and industry-specific entities, in order to prove and refine the VSMP concept.

It has since progressed to national and special event VSMPs, and has established its first national VSMP,

and is in discussions with others.

It is currently in discussions with potential special event VSMPs for the 2010 Soccer World Cup and

similar international events, and is also in negotiations with online companies that have very large

existing client bases.


4 Webtel.mobi – Market Valuation

Frost & Sullivan has a strong standing as an independent research and consulting company, whose brand

name is widely recognised and respected as a global leader in this area. Our 800 analysts continually track

the global and regional markets to identify emerging technologies, and monitor country specific economics

and demographic factors

We have expertise and experience in developing quantitative databases to track and gauge key industry

metrics. Frost & Sullivan provides extensive research coverage of the European fixed and mobile industries,

and has expertise and experience in conducting benchmarking and best practice analysis.

Frost & Sullivan is able to field a multi-national team of consultants and analysts with extensive knowledge of

the local markets and hands-on experience from working with many of the operators included in the scope.

We are also able to interact with most of the operators.


Frost & Sullivan has extensive experience, over an extended period, of providing market and product

valuations and assessments, and M&A services, on both buy side and sell side, within the international ICT

sector.

Based on Webtel.mobi‟s unique selling propositions (USPs) and B2B2C business model, Frost & Sullivan

sees great potential and opportunity for the company‟s international growth. Particularly in the current global

downturn, there is tremendous demand for lower cost services (on the consumer side) and alternative

revenue streams (on the business side).

At this pre-commercial launch stage, Frost & Sullivan‟s indicative valuation of Webtel.mobi as a uniquely

placed global SMP is within the range of US$6.2 billion to US$8.2 billion.

The range reflects a low to high annual growth variance. The valuation is derived based on a ten-year net

present value assessment of projected cash flow based on the following key assumptions:

An initial ARPU average in the first year of US$13.00, declining by US$0.30 annually

A staggered subscriber take up with a conservative initial take up range of 2 to 10 percent in the first year

of total VSMP addressable market

An annual average subscriber growth of rate of 27 percent

A declining profit margin from 45 to 28 percent over ten years (reflecting market realities, product life

cycle and increase in competition)

The primary sources of our evaluation are:

Relevant Webtel.mobi USPs according to the Guideline Companies‟ Approach

Parallel industry participants‟ growth rates

Recent industry M&A transactions

Global average ARPUs based on Frost & Sullivan‟s research

Webtel.mobi‟s three-year indicative financial projections

A good analogy to the situation of Webtel.mobi is the overwhelming international success and proliferation of

GMail/Yahoo Mail/Hotmail over the original regional or national ISP or server based e-mail services. These

global Web-based e-mail services have several billion e-mail account holders and users, without having to

invest in primary connectivity infrastructure. The fact that these Web-based services are free to join, and are

low or zero cost compared to the original ISP-based e-mail services, led to exponential international growth,

and international market dominance in terms of user numbers and growth, over regional or national traditional

ISP-based e-mail services.

As users, especially in the age group of 18 to 35 years, are already used to initiating online services via a

mobile phone interface, and can become rapidly accustomed to initiating calls via an Internet interface,

Webtel.mobi‟s competitive tariffs and innovative marketing campaigns will certainly attract a strong subscriber

base.


The ability to ride on any telecommunications infrastructure through a basic IP connection provides

Webtel.mobi with significant cost and operational advantage, as well as immediate market dominance in

global reach.

In conclusion, Frost & Sullivan sees Webtel.mobi as a potential sector-influencer in the international mobile

space. Through a global service which is highly competitive in price, reliable, easily accessible, contract free,

and which currently holds international market dominance in terms of its geographic coverage and VSMP

programme, Webtel.mobi is able to proliferate its SMP services worldwide at little or no cost.

Its remarkably low operational cost base, decentralised yet effective corporate structure, and other market-

first USPs set it apart from current competing entities in the international mobile market.


Section B

Growth in the

International Mobile Market


5 Insights on Mobile Communications Market Growth

Our regional analysis of the mobile communications markets2 has shown sharp differences of market

behaviour and technology adoption across the five continents. These varied market conditions impact

business opportunities in different ways. As different regional areas are in different stages of market

development, the room for growth for mobile network operators (MNOs), mobile virtual network operators

(MVNOs), mobile content providers, mobile service providers, mobile technology providers, and other players

vary accordingly.

Despite the differences, the global mobile ecosystem can be divided in two key areas of development in

terms of mobile communications. If mobile penetration and usage of value-added services are used as

indicators of development stages, the area that includes Western Europe, North America, Australia, Japan

and South Korea can be considered in an advanced stage of development. Latin America, Africa, Middle

East, and the rest of Asia on the other hand can be considered in a catching-up stage of development. The

next two chapters will analyze these two macro areas in terms of the market participants‟ growth, mainly in

relation to MNOs and MVNOs. It is important to keep in mind that differences are present within these two

macro areas.

5.1 Revenues Growth Analysis – Markets in Advanced Stage of Development

Market areas that are developed display two common features. The first one is the mobile penetration, which,

in many cases, largely exceeds 100 percent. The second one is the availability of value-added services and

mobile devices that enable a multimedia mobile experience3. In this context, MNOs are designing strategies

where the core is not anymore voice and text, but multimedia services and value-added services for

consumers and enterprises. The main aim of these strategies is to counterbalance the decrease in revenues

from voice and text, with new source of revenues from innovative services. In the long term, revenues from

innovative services will increase; becoming more relevant for MNOs.

2 Refer to „A Global Mobile Market Overview – trends, challenges and new players‟ by Frost & Sullivan, May 2009

3 These two features cannot be fully met in some geographical areas. For example, some Eastern European countries present

some delays, particularly in terms of adoption of mobile value-added services.


The charts below forecast the mobile voice ARPU and the mobile non-voice ARPU for the top five European

markets.

Source: Frost & Sullivan, 2009

Despite these trends, voice and text still remain the cash cow for mobile network operators. Having said that,

revenues are beginning to decrease, as competition becomes stronger. Innovative and low tariff solutions are

challenging existing packages and solutions. Emerging market participants such as MVNOs, mobile VoIP

providers, and specialized mobile providers (SMPs) such as Webtel.mobi are becoming a real threat to the

dominant role of MNOs.


The chart below shows the increasing importance of MVNOs in Europe and North America4.

Global MVNO Subscribers by Region

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The charts below illustrate the stagnating market situation, where revenues from voice in the advanced stage

development areas begin to taper, while revenues from SMS will experience slight growth in the period 2009

to 2017.

Global Mobile Voice Traffic Revenue by Region

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4 Regulation has also impact on voice and text revenues. This aspect is particularly relevant in Europe, where the European

Commission has decisively pushed reduction in roaming charges for voice and SMS. However, regulation will be addressed in a specific paragraph of this study.


Global SMS Revenue by Region

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In terms of traffic volume, the charts below illustrate that revenues from domestic traffic will remain flat and

revenues from international traffic will grow. SMS revenues, on the other hand, will continue to grow

domestically and internationally. This difference is also due to the fact that SMS is used for other types of

services and applications.

Global Mobile Domestic Voice Traffic Revenue by Region

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Global Domestic SMS Revenue by Region

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5.2 Revenue Growth Analysis – Catching-up Stage of Development Markets

Mobile penetration in development markets is below 100 percent and therefore, the main strategic focus is

subscriber additions. Consequently MNOs‟ strategies are designed around voice and text packages.

However, because of the poor status of telecommunications infrastructures, value-added services are being

developed in parallel to voice and text services. For example, mobile payments solutions have a relevant

development in these areas. The case of M-Pesa in Kenya is a successful example. Mobile Internet is also

having an unprecedented diffusion in these areas. The mobile device becomes the main, in some cases the

only access point for the Internet.


The chart below illustrates this growth in Asia in particular.

Global Internet Data Revenue by Region

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From the point of view of revenues from voice and text, these markets will see growth over the period 2009 to

2017. The chart below shows the growth in voice revenues in Africa, Asia Pacific, and Latin America.

Revenues from domestic and international traffic are expected to grow as well. A similar analysis can be

applied for revenues from SMS.

Global Mobile Voice Traffic Revenue by Region

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6 Directions of Growth for the Mobile Industry

Mobile communications is experiencing a paradigm shift. Users‟ mobile experience was largely based around

voice and messaging communications based on GSM technologies and other technologies not designed for

IP traffic. MNOs were then the almost exclusive owner of the mobile communications market.

At present, users‟ mobile experience is changing. Mobile phones do not mean only voice and text

communications. Mobile phones are intelligent devices able to offer a variety of services from traditional voice

and text to multimedia and productivity applications. In addition, the advent of innovative technologies and the

implementation of anti-competitive regulation have opened the once MNOs‟ exclusive domain to other

participants.

Voice and text can be offered by a variety of players with different technological background. The future of the

mobile industry is made of a convergent experience of value-added services, communications services, and

multimedia services offered by a variety of players that form a network of diverse players. This scenario also

requires new business models and new sources of revenues.

This paradigm shift is driven by the following main factors.

The diffusion of mobile and wireless technologies (3G, 3.5G and beyond) and intelligent switching and

routing technologies that allow high speed connectivity and, in turn, the efficient use of the Internet on

the mobile

The availability of smart devices with increasing intelligence and capacity

The large adoption of mobile Internet that will also push the implementation of value-added services for

mobile devices over the Internet

The rise of social networking and mobile communities that will push a new set of services designed

around users and social groups of users

Increasing openness of mobile platforms to allow developers‟ creativity; the phenomenon of the

Applications Stores is an example

The advent of advertising as a lucrative business model for the industry

This paradigm shift is happening at different speeds in different markets because of the regional differences

discussed in previous chapters.


7 Analysis of Target Demographics

Identifying specific segments of consumers with specific needs is a strategic task in highly competitive mobile

communications markets. In these markets, the competition does not just lie in the ability to reach large mass

of consumers, but also into the capacity to deconstruct the mass of consumers into segments that have

specific communication behavior and needs.

Consequently, mobile voice and messaging providers have to be able to design an offer flexible enough to

meet requirements of different social groups of users. This chapter will discuss this issue in detail.

7.1 Mobile Users Segmentation

The usage patterns of mobile voice and messaging services can reflect user behaviour beyond

communication trends. It can identify communities of users that share common interests, needs, and

beliefs, i.e. homogenous groups. For the purpose of this analysis, mobile users are classified in three

main social groups, as discussed below.

- Business-oriented users. These could be professionals that use mobile communications frequently

and in different places for the fulfilment of their job function. These could also be SME employees. An

SME can be considered as a business community of users with particular needs in terms of mobile

communications.

- Community groups. These are social groups that share beliefs, provenience, ways of living, and

traditions. These could be ethnic minorities, temporary migrants, students, and local community groups.

- Special interest groups. These are social groups that share common interests such as football fans,

frequent travellers to specific places, magazine readers, and affiliates to organizations.

7.2 User Requirements

The consumption behaviour of the social groups depends on four fundamental requirements, as

discussed below.

- Service costs. The lower the cost of service, the more appealing it becomes for the users. This is

mandatory for community groups. Most of them do not have high disposable incomes, therefore the

low tariff is essential for them to be able to afford the service. Service costs are also important for

business-oriented and interest groups. However, they are likely to pay more in return of high-quality

and specific features.


- Usability of the service. Ease of use is fundamental to adoption. This is valid for all the groups. An

easy access interface from anywhere at anytime is essential. Calling should require just two simple

and easy steps: insert the destination number and call. Additional steps can only irritate the user.

Additional functionality can be added if required, and have to be easy to perform. The initialization of

the service should be immediate. Downloading applications and then setting up the software can

discourage some groups of users.

- Quality of the service. This is obviously essential for all groups, while some segments may have

higher tolerance levels.

- Social group-oriented features. While the previous three criteria can be considered essential for the

uptake of the service, this criterion can further differentiate the service. The idea is to offer specific

features that meet specific social groups‟ needs. An example is to provide a special offer for intra

group calls/SMS to members of a social group.

Webtel.mobi satisfies the three criteria offering a low-cost service at high usability ensuring quality of

service. Through the VSMP Programme, Webtel.mobi also provides special packages for specific

social groups.

7.3 End-user Education

The void of supply and demand interaction in previous years has contributed to the mismatch between

services offered and end-user requirements. At present, several operators have invested in analytics

and end-user forums to better understand their target market. However, such efforts are still in its

nascence. Messages pertaining to new produces and services are still fairly poor. A strong example is

the difference in quality of service between VoIP and traditional mobile voice services. Many users

have signed up with various discounted VoIP providers only to find very poor quality of services. Hidden

costs are also endemic of such services. As operators begin to realise the value of clear and relevant

communication, end users today have a better understanding of the different types of services. The

growth of the Internet has also made information more widely accessible.


7.4 EU Legislation on the Mobile Voice and Messaging Services

During the last three years, the main objective of the European Commission in the area of mobile voice

and messaging services has been the reduction of tariffs and additional costs for European end users.

During 2008, the European Commissioner for Information Society and Media transformed this motive

into formal action with the reduction of roaming costs for voice and SMS. This action was driven by two

main reasons. The first reason was to ensure transparency and low roaming cost for end users. The

second one related to the vision of a single European information space, where services and

applications are harmonized in order to meet the needs of all European users. The other areas of

intervention were data tariffs and roaming data costs. On March 24, 2009, the European Parliament

reached an agreement with the Council Presidency for the following measures.

7.5 Reducing Roaming Tariffs

The directive does not force roaming tariffs to comply with rates set by the EU, but sets ceilings

beneath which mobile operators could compete by offering lower prices. The text stipulates that home

operators may charge their customers for roaming phone call:

From July 1, 2009: a maximum of €0.43 per minute (excluding VAT) for outgoing and a maximum

of €0.19 per minute (excluding VAT) for incoming roaming calls;


of €0.15 per minute (excluding VAT) for incoming roaming calls;


of €0.11 per minute (excluding VAT) for incoming roaming calls.

From July 1, 2009, operators would have to charge their customers by the second but can apply an

initial minimum charging period of 30 seconds.

Lower-cost Data Roaming Services

MEPs and the Council Presidency agreed with the Commission that a text message (SMS) sent while

roaming should cost a maximum of €0.11 (excluding VAT) from July 1, 2009. Other data roaming

services (such as sending emails and pictures or web-browsing from mobile phones or laptops) will be

regulated at wholesale level, that is, there will be a price cap for the rates the host operator charges a

roaming customer‟s home operator, calculated on a kilobyte basis:

From July 1, 2009: a maximum of €1.00 per megabyte (excluding VAT); From July 1, 2010: a maximum of €0.80 per megabyte (excluding VAT); From July 1 2011: a maximum of €0.50 per megabyte (excluding VAT).”5

The third area pertains to mobile termination rates. Measures have been postponed to 2012.

5 European Parliament Press Release 20090324. “Mobile Roaming: MEPs reach political agreement with Council Presidency”


APPENDIX A

Comparative Analysis Case Studies

These case studies demonstrate Webtel.mobi‟s commercial, operational and geographic competitive

advantages over MNOs in all major international markets.

Bharti Airtel – India (Asia)

Verizon Wireless – USA (North America)

Vodafone UK – UK (Europe)

Vodacom – South Africa (Africa)

These comparative analyses are based on a combination of service provider websites and reports, publicly available information as at May and June 2009, well as primary data obtained from the respective service providers.


CASE STUDY I - INDIA

WEBTEL.MOBI vs. BHARTI AIRTEL Bharti Airtel Introduction Bharti Airtel Limited, a group company of Bharti Enterprises, is Asia‟s leading integrated telecom services provider with operations in India, Sri Lanka, the Seychelles and the Channel islands with an aggregate of 100 million customers. Bharti Airtel‟s mobile business provides mobile services across 22 telecom circles in India, with many of the country‟s lowest calling and text messaging rates. Bharti Airtel was the first private company to achieve this coverage in India. It has taken the company 14 years (since establishment in 1995) and in excess of 10 Billion Euro (cumulative annual costs / expenditure since 1999) to reach this point. Webtel.mobi Introduction Webtel.mobi is a Specialized Mobile Provider that is in the process of launching its low-cost mobile voice and text services in all countries internationally. It provides a hybrid internet-initiated mobile calling and text messaging service. This enables it to provide ultra low cost mobile voice and text services to all web-enabled mobile phones worldwide, at rates of Operational Efficiency which are unparalleled in the mobile market. Due to the fact that its service is available to all internet-enabled mobile phones on all networks worldwide, it maps on to the combined international coverage of all mobile providers.

A. Bharti Airtel’s Voice and SMS Revenues, and Market Capitalisation

Voice Revenues 2008-2009 – 4.283 Billion Euro

SMS Revenues 2008-2009 – 181 million Euro

Market Capitalization as of May 2009 – 21.4 Billion Euro

Operating costs 2008-2009 – 4.164 Billion Euro


B. Service Availability 1. National Geographic Coverage Comparison: Webtel.mobi vs. Bharti Airtel

Percentage of Coverage within India

Webtel.mobi‟s national geographic coverage fully overlaps all 23 telecom circles within India. 2. International Geographic Coverage Comparison: Webtel.mobi vs. Bharti Airtel

Number of countries in which the companies have their own operation

Webtel.mobi has a significant international geographic footprint compared to Bharti Airtel – Webtel.mobi in 195 countries, and Bharti Airtel in 4 countries. The Webtel.mobi service is available in all countries internationally, on all web-enabled mobile phone makes and models. This vast disparity gives Webtel.mobi a competitive advantage over Bharti Airtel in terms of international geographic coverage.

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C. Operational Efficiency 1. Comparative Operating Costs as a Percentage of Revenue

Webtel.mobi (Global) vs. Bharti Airtel (Country)

Financial analysts study operating cost as a percentage of revenue to judge the operational performance of the business and also for comparison between companies. It is noted that higher the operating costs, the lower the profitability of the company. As shown as percentage of revenues, Bharti Airtel operating costs are 80 percent higher than those of Webtel.mobi. Therefore, on a relative cost scale, Webtel.mobi has a competitive advantage over Bharti Airtel.

2. Comparative Operating Costs as a Percentage of Revenue Webtel.mobi (Country) vs. Bharti Airtel (Country)

The operating cost per country is derived by dividing the total operating cost by the geographic presence (provision of own-brand services). Bharti Airtel provides its service in 4 countries. Hence, the operating costs of Bharti Airtel per country is 18 percent (72 percent divided by 4 countries). Webtel.mobi provides its services in 195 countries. Hence, the operating costs of Webtel.mobi per country is 0.07 percent (13.7 percent divided by 195 countries). Therefore, again on a relative cost scale, Webtel.mobi has a competitive advantage over Bharti Airtel.

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D. Webtel.mobi Unique Selling Points vs Bharti Airtel / Indian market 1. Widest coverage in India Webtel.mobi is available to all web-enabled mobile phones on all networks in India. 2. No requirement for licence fees Due to it being internet-initiated telephony, Webtel.mobi currently does not have to pay licence fees in

India. 3. No requirement for masts As the Webtel.mobi service is internet-initiated, it is not necessary for it to erect masts. 4. No start-up costs, infrastructure, staff or premises As the Webtel.mobi service is accessed via the internet, it does not need retail outlets, premises or

staff to deliver its service to users. Certain countries/operators however may choose to block access to selected websites. Such practices are non-competitive and typically subject to legislative review/action.

5. No Requirement for handset subsidising or SIM cards As Webtel.mobi is accessed from all existing internet-enabled mobile phones, it does not have to

subsidise and distribute handsets and SIM cards in order to provide users with its service. 6. No Requirement to charge VAT to end-users As Webtel.mobi provides its services from Guernsey – where neither local or non-resident company

are charged VAT or required to charge VAT – it is able to provide its services to end-users without charging them VAT.

7. Unique Affiliate marketing strategy and ability Due to Webtel.mobi‟s structure, it is able to provide local companies with their own branded

Specialized Mobile Provider product, with only seven days lead time to full operation. 8. Extremely significant reduction of costs for calls & texts Webtel.mobi enables users to enjoy extremely significant cost savings on International and Roaming

calls and texts. 9. Webtel.mobi can be used from all handsets and networks internationally Webtel.mobi‟s service is able to be used from web-enabled mobile phones on all Mobile Providers‟

networks when roaming. 10. Webtel.mobi has the same cost structure internationally Webtel.mobi‟s service is available at the same cost in all countries, so there is no disruption or change

in cost or charging whether in the local country or travelling / roaming.


11. Webtel.mobi has easily obtainable and clear price lists Unlike Bharti Airtel, Webtel.mobi‟s price lists are clear. 12. Users can join and use the Webtel.mobi service free of charge Users can join Webtel.mobi free of charge – and obtain limited free credit to test the service when

joining. There are no costs to use the service other than the costs of calls. 13. Webtel.mobi end users do not have to enter into a contract Users do not have to enter into a contract to use Webtel.mobi, and can join and use it, or not use it, or

leave it, at their choice. 14. Webtel.mobi’s service can be used on “Locked” handsets Webtel.mobi is able to be used on “Network Locked” handsets, at no extra cost to the user. 15. Webtel.mobi facilitates international calling on blocked handsets Webtel.mobi empowers users whose handsets are blocked for international calling to make

international calls – at no extra cost to the end-user. 16. Webtel.mobi facilitates international calling on blocked handsets Webtel.mobi empowers Bharti Airtel Pre-Paid users to use their phones for International Roaming

Calls (calls activated by browser / laptop / netbook). 17. Webtel.mobi’s call charges remain the same regardless of time or day WM‟s service does not have “Peak” or “Off Peak” times during the day with varying cost levels, or a

different cost over weekends or during the week. The same low rates are applicable 24/7. 18. Webtel.mobi’s call charges are “per second” not “per minute” WM‟s call charges are per second, and not “per minute or part thereof”. This represents a further

significant cost saving for clients, and also means that they really only pay for the calls that they make / texts that they send.

19. Webtel.mobi’s call charges and records are available in real time All Webtel.mobi call records and charges are able to be accessed by the user in real time without any

waiting period.


E. Tariff Comparisons The charts below illustrate the differences in voice and SMS tariffs between Webtel.mobi and Bharti Airtel. A point worth highlighting is that voice calls made via Webtel.mobi are charged by the second in comparison to Bharti Airtel who charges per minute or part thereof. Charges per second translate into highly significant savings for users, translating into being charged for a full minute of calling even if one only uses one second of a minute when calling. Note : The tariff calculations below takes into account the following:

The Webtel.mobi WAP sites are optimised to render at less than 0.020MB (20KB) in size. Conservatively, we have included 25KB of GPRS traffic to interact with Webtel.mobi's voice platform, with mobile operators typically charging 0.88 Euro cents for 100KB of GPRS traffic and 1.5 Euro cents per minute for every incoming call (while roaming) within India.

Webtel.mobi (Euro cents/ minute) tariffs include all surcharges by the mobile operator for roaming GPRS traffic per minute, roaming incoming call charges and call charges levied by Webtel.mobi.

Bharti Airtel’s tariffs include service tax, surcharges and CESS of 35 percent.

Bharti users are typically charged approximately 25 Euro cents for 25 KB while travelling abroad. This has been added to the Webtel.mobi cost for the first minute.


1. International Voice Calls within local network: 1.a) Mobile to Mobile

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Prepaid & Postpaid Bharti Airtel(Euro cents/minute)

For most international calls terminating on a mobile network, Webtel.mobi‟s tariffs are more competitive. Calls made to China and Canada for example cost 76 percent less than those made over Bharti’s cellular network. Webtel.mobi has a significant competitive advantage over Bharti Airtel for most International Mobile to Mobile calls. 1.b) Mobile to Fixed Line

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Except for calls made to UAE and certain Middle East countries, Webtel.mobi‟s voice solution is the ideal economical platform for international voice calls terminating on a fixed line network. Though mobile terminating calls to the UK and Australia were costlier using Webtel.mobi as observed in the previous chart, it is noticed that Webtel.mobi voice calls terminating on a fixed line to the UK and Australia were found to be more than 21 percent lower than Bharti Airtel. Based on the above chart, Webtel.mobi‟s calls cost between 21 to 76 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for most International Mobile to Fixed line calls.


1.c) Mobile Initiated – Fixed Line to Fixed Line

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Prepaid & Postpaid Bharti Airtel (Eurocents/minute)

Other than calls to UAE, Webtel.mobi‟s tariffs are more competitive. Further, Webtel.mobi provides a service (not offered by Bharti Airtel), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to an international fixed line so as to avoid paying incoming roaming charges to a large extent. Based on the above chart, Webtel.mobi‟s calls cost from 21 to 76 percent less than Bharti Airtel. Webtel.mobi has a strong competitive advantage over Bharti Airtel for most Mobile Initiated Fixed Line to Fixed Line calls.


2. International Voice Calls while Roaming Domestically: 2.a) Mobile to Mobile

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For most domestic roaming international calls terminating on a mobile network, Webtel.mobi costs are nearly 80 percent less than Bharti Airtel for calls made to China and Canada. Webtel.mobi has a significant competitive advantage over Bharti Airtel for most International Mobile to Mobile calls. 2.b) Mobile to Fixed Line

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Domestic roaming voice calls terminating on a fixed line to the UK and Australia made via Webtel.mobi were found to be more than 28 percent lower than Bharti Airtel. Based on the above chart, Webtel.mobi‟s calls cost from 28 to 80 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for most International Mobile to Fixed line calls.



Other than calls to UAE, Webtel.mobi‟s tariffs are more competitive. Further, Webtel.mobi provides a service (not offered by Bharti Airtel), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to an international fixed line so as to avoid paying incoming roaming charges to a large extent. Based on the above chart, Webtel.mobi‟s calls cost from 21 to 76 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for most Mobile Initiated Fixed Line to Fixed Line calls.

3. International Roaming: 3.a) Mobile to Mobile With regard to international roaming mobile-mobile voice calls, it is quite evident from the chart above that Webtel.mobi not only provides significant cost savings of up to 75 percent in comparison to Bharti Airtel during the first minute of the call, but also provides further savings if the call continues for longer than 1 minute.

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Postpaid Bharti Airtel (Eurocents/minute)


Additionally, Bharti Airtel does not enable its prepaid users to make outgoing calls while travelling abroad, but Webtel.mobi enables them to do so from the Webtel.mobi platform – thereby outperforming Bharti Airtel‟s own service offering to its own clients off its own system.(with the call initiation taking place from a browser / laptop / netbook/ PC). Webtel.mobi has a significant competitive advantage over Bharti Airtel for Mobile to Mobile calls. 3.b) Mobile to Fixed Line International roaming voice call costs terminating on a mobile number in India is almost similar to the costs charged for voice calls terminating on a fixed line as indicated in the chart above for both Webtel.mobi and Bharti Airtel post paid subscribers. Based on the above chart, Webtel.mobi‟s calls cost up to 79 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for Mobile to Fixed Line calls.

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3.c) Mobile Initiated – Fixed Line to Fixed Line Based on the above chart, cost savings offered by Webtel.mobi to a number of countries are up to 500 percent in comparison to international roaming voice calls made over Bharti Airtel‟s network. Webtel.mobi has a significant competitive advantage over Bharti Airtel for Mobile Initiated Fixed Line to Fixed Line calls. 4. International Mobile-to-Mobile SMS

4.a) Within Domestic Network Standard international SMS‟ for Bharti Airtel users is 8.5 Euro cents for most countries. Standard International SMS‟ for Webtel.mobi users is 4.5 Euro cents for most countries –which is significantly lower (88%). The above chart takes into account of the mobile user (for Webtel.mobi site) connecting through a GPRS/EDGE network and not via a Wi-Fi network. Based on the above chart, Webtel.mobi‟s texts cost at

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least 88 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for International Text / SMS sending.

4.b) Domestic Roaming Domestic roaming international SMS charges for both Webtel.mobi and Bharti Airtel are similar to standard international SMS costs when the user is not roaming within India. Based on the above chart, Webtel.mobi‟s texts cost at least 88 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for International Text / SMS sending.

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4.c) International Roaming

International roaming subscribers using Webtel.mobi have a cost saving of more than 987 percent when compared to Bharti Airtel pre-paid users in sending an international roaming SMS back to India and a cost saving of more than 500percent(from most countries) over Bharti Airtel post-paid users. Based on the above chart, Webtel.mobi’s texts cost from 500 to 987 percent less than Bharti Airtel. Webtel.mobi has a significant competitive advantage over Bharti Airtel for International Roaming Text / SMS sending.

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Prepaid Bharti Airtel (Eurocents/minute)



F. Ease of Registration Comparison of Service Utilisation Requirements:

Bharti Airtel Pre-paid Bharti Airtel Post-paid Webtel.mobi

Self-Attested Photograph Self-Attested Photograph Internet enabled mobile phone

Identity Proof Identity Proof Working mobile phone number

Proof of Address Proof of Address Sign up online for free

Activation Charges of average Euro 0.75 for the starter pack (One-time)

Activation Charges of average Euro 4.6 (One-time)

No Activation Charges. Must have a prepaid or postpaid contract with a mobile provider

No monthly contract charges Monthly Contract Charges of average Euro 2.5 per month - excluding call and text costs (No security deposit required for inter-state roaming within India)

No monthly contract charges

Mobile users buy recharge coupons to top up their card. Alternatively the dealer can directly recharge the user‟s prepaid card using his/her mobile. On doing so, both the user and the dealer will receive an SMS in a few seconds confirming the recharge

Mobile users pay their monthly contract charges and monthly call charges in arrears by debit order

Load credit on Webtel.mobi‟s website

Once users top up their card, they are obliged to exhaust the credit anywhere between 30 to 90 days. Some life-time validity vouchers require users to charge the card every six months

Calls are post-paid Credit purchased does not expire

Security deposit of 110 Euro to activate international roaming.

Monthly charge of Euro 2.3 for activating international roaming

Security deposit of 110 Euro to activate international roaming

International roaming available to all users at no cost


G. Summary

Webtel.mobi‟s services in and from India are reliable and provide optimum quality for voice and text messaging services.

Webtel.mobi enjoys a strong competitive advantage over Bharti Airtel in terms of the majority of voice services and text / SMS services.

Given that Webtel.mobi is available on all networks, it enjoys a competitive advantage over Bharti

Airtel in terms of Service Availability for National and International Geographic coverage.

Further, relatively speaking, Webtel.mobi enjoys a competitive advantage over Bharti Airtel in terms of Operational Efficiency for National and International Operating Costs.

Webtel.mobi‟s service provides ease of user registration and clear tariffs. Webtel.mobi is extremely well positioned to make a significant impact on the mobile voice and text

market in India.


CASE STUDY II - USA

WEBTEL.MOBI vs. VERIZON WIRELESS

Verizon Wireless Introduction Verizon Wireless, a joint venture of Verizon Communications and Vodafone, is the largest mobile operator in terms of revenues and customers in the US market. Verizon Wireless constitutes nearly 57 percent of the consolidated revenue in Verizon and currently has more than 86.6 million customers (March 2009) subscribed to its services. Verizon Wireless recently completed its acquisition of Alltel Wireless in a deal valued at $28.1 billion and is aggressively working on completely integrating Alltel‟s network operations and billing systems. Verizon Wireless has been one of the key enablers in the adoption of CDMA and EVDO technology worldwide and is currently conducting 3G LTE field trials with Ericsson and Alcatel-Lucent. The firm intends to commercially launch the world‟s first and largest 3G LTE services having an aggressive roadmap of commercially launching the service in 20 to 30 US markets during the second half of 2010. Webtel.mobi Introduction Webtel.mobi is a Specialized Mobile Provider that is in the process of launching its low-cost mobile voice and text services in all countries internationally. It provides a hybrid internet-initiated mobile calling and text messaging service. This enables it to provide ultra low cost mobile voice and text services to all web-enabled mobile phones worldwide, at rates of Operational Efficiency which are unparalleled in the mobile market. Due to the fact that its service is available to all internet-enabled mobile phones on all networks worldwide, it maps on to the combined international coverage of all mobile providers.

A. Verizon Wireless’ US Service and Data Revenues, and Market Capitalisation

Service Revenues 2008-2009 – 32.21 Billion Euro

Data Revenues 2008-2009 - 8.98 Billion Euro

Non-Messaging Service Revenue 2008-2009 - 5.21 Billion Euro

Market Capitalization of Verizon as of June 2009 – 58.76 Billion Euro

Operating costs 2008-2009 – 26.7 Billion Euro


B. Service Availability

1. National Geographic Coverage Comparison: Webtel.mobi vs. Verizon Wireless

Percentage of Coverage within the US

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Webtel.mobi‟s national geographic coverage is in par with Verizon Wireless having more than 90% population coverage.

2. International Geographic Coverage Comparison: Webtel.mobi vs. Verizon Wireless


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Webtel.mobi has a significant international geographic footprint compared to Verizon Wireless – Webtel.mobi in 195 countries, and Verizon Wireless in 1 country. The Webtel.mobi service is available in all countries internationally, on all web-enabled mobile phone makes and models. This vast disparity gives Webtel.mobi a competitive advantage over Verizon Wireless in terms of international geographic coverage.



Webtel.mobi (Global) vs. Verizon Wireless (Global)

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In terms of operating costs as a percentage of revenues, Verizon Wireless‟ operating costs are substantially higher than those of Webtel.mobi. Therefore, Webtel.mobi has generated, on a relative cost scale, positive returns for the investors.

2. Comparative Operating Costs as a Percentage of Revenue

Webtel.mobi (Country) vs. Verizon Wireless (Country)

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As Verizon Wireless has network operations only in one country worldwide, its operating cost as a percentage of revenue is 71.6 percent. Webtel.mobi provides its services in 195 countries. Hence, the operating cost of Webtel.mobi per country is 0.07 percent (13.7 percent divided by 195 countries). Therefore, again on a relative cost scale, Webtel.mobi has operated with far more efficiency than Verizon Wireless in the US as well.


D. Webtel.mobi Unique Selling Points vs. Verizon Wireless USA 1. Widest coverage in the US

Webtel.mobi is available to all web-enabled mobile phones on all networks in the US. 2. No requirement for licence fees

Due to it being Internet-initiated telephony, Webtel.mobi currently does not have to pay licence fees in the US.

3. No requirement for masts

As the Webtel.mobi service is internet-initiated, it is not necessary for it to erect masts. 4. No start-up costs, infrastructure, staff or premises

As the Webtel.mobi service is accessed via the internet, it does not need retail outlets, premises or staff to deliver its service to users. Certain countries/operators however may choose to block access to selected websites. Such practices are non-competitive and typically subject to legislative review/action.

5. No Requirement for handset subsidising or SIM cards

As Webtel.mobi is accessed from all existing internet-enabled mobile phones, it does not have to subsidise and distribute handsets and SIM cards in order to provide users with its service.

6. No Requirement to charge VAT to end-users

As Webtel.mobi provides its services from Guernsey – where neither local or non-resident company are charged VAT or required to charge VAT – it is able to provide its services to end-users without charging them VAT.

7. Unique Affiliate marketing strategy and ability

Due to Webtel.mobi‟s structure, it is able to provide local companies with their own branded Specialized Mobile Provider product, with only seven days lead time to full operation.

8. Extremely significant reduction of costs for calls & texts

Webtel.mobi enables users to enjoy extremely significant cost savings on International and Roaming calls and texts.

9. Webtel.mobi can be used from all handsets and networks internationally Webtel.mobi‟s service is able to be used from web-enabled mobile phones on all Mobile Providers‟




11. Webtel.mobi has easily obtainable and clear price lists Unlike Verizon Wireless, Webtel.mobi‟s price lists are clear and have no hidden costs. 12. Users can join and use the Webtel.mobi service free of charge Users can join Webtel.mobi free of charge – and obtain limited free credit to test the service when



international calls – at no extra cost to the end-user. 16. Webtel.mobi’s call charges remain the same regardless of time or day WM‟s service does not have “Peak” or “Off Peak” times during the day with varying cost levels, or a

different cost over weekends or during the week. The same low rates are applicable 24/7. 17. Webtel.mobi’s call charges and records are available in real time All Webtel.mobi call records and charges are able to be accessed by the user in real time without any

waiting period. 18. Webtel.mobi provides its users to stay connected in several international countries

Webtel.mobi‟s services can be used in more than 195 countries worldwide in comparison to Verizon Wireless, which can be used only in 40 countries worldwide.


E. Tariff Comparisons

The charts below illustrate the differences in voice and SMS tariffs between Webtel.mobi and Verizon Wireless.

Note:

An average of 25% is taken into consideration for total taxes on top of the monthly bill as some states such as New York charge 33% on top of the monthly bill.

Existing standard rates per message/call taken into account. Promotion offers and value plans not considered. We have included 25KB of EVDO traffic to interact with Webtel.mobi's voice/SMS platform

accruing an average cost of 4.28 Euro cents for Verizon Wireless postpaid subscribers. Verizon Wireless charges $1.99 per MB for its postpaid subscribers for Mobile Web.

We have included 25KB of EVDO traffic to interact with Webtel.mobi's voice/SMS platform accruing an average cost of 84.49 Euro cents for Verizon Wireless prepaid subscribers. Verizon Wireless charges its prepaid subscribers $0.99 for Mobile Web per day (not on a pro-rata basis).

For international roaming, approximately 45% is taken into consideration for total taxes and international roaming surcharges.

For international roaming, we have included 25KB of data traffic to interact with Webtel.mobi's voice/SMS platform accruing an average roaming cost of 5.2 Euro cents in Canada, 13 Euro cents in Mexico and for the rest of the world at 52 Euro cents. This is only applicable for Verizon Wireless postpaid subscribers having a monthly mobile broadband subscription.

Verizon Wireless does not provide its prepaid users mobile broadband/Web while roaming internationally. Hence for prepaid users to make calls using Webtel.mobi, it would require call initiation from a browser / laptop / netbook using an alternative network such as Wi-Fi.

Webtel.mobi charges per second. Verizon Wireless charges per minute or part thereof. Webtel's one-off charge of 5 Euro cents to connect calls is not taken into consideration.


1. International Voice Calls within local network:

1.a) Mobile to Mobile

Except for calls made to Canada, Webtel.mobi‟s voice solution is the ideal economical platform for international voice calls terminating on a mobile network. Calls made to China and Hong Kong for example cost between 1695 to 1707 percent less than those made over Verizon Wireless’ network. Webtel.mobi has a significant competitive advantage over Verizon Wireless for most International Mobile to Mobile calls.

Verizon Wireless charges an average cost of 84.49 Euro cents for its prepaid subscribers to access 25KB of EVDO traffic for interacting with Webtel.mobi's voice platform. On the other hand, Verizon postpaid subscribers are charged 4.28 Euro cents to access 25KB of EVDO traffic for interacting with Webtel.mobi's voice platform.

1.b) Mobile to Fixed Line

It is noticed that for Verizon prepaid subscribers using Webtel.mobi, costs for international calls terminating on a fixed line in Canada are far higher than using Verizon Wireless‟ cellular network. Comparatively for calls made to other international countries terminating on a fixed line, Webtel.mobi‟s call costs between 411 to 1678 percent less than Verizon Wireless.

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Prepaid and Postpaid Verizon (Euro cents/minute)

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Prepaid and Postpaid Verizon (Euro cents/minute)


2. International Roaming:

2.a) Mobile to Mobile

With regard to international roaming mobile-mobile voice calls, it is quite evident from the chart above that Webtel.mobi call costs between 15.7 to 61.2 percent less than Verizon Wireless towards calls made from several international countries.

2.b) Mobile Initiated – Fixed Line to Fixed Line

Webtel.mobi provides a service (not offered by Verizon Wireless), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to a fixed line so as to avoid paying incoming roaming charges to a large extent. Webtel.mobi‟s mobile initiated – fixed line to fixed line service negates incoming roaming charges on the mobile phone and thus provides tremendous cost savings up to 733 percent over Verizon Wireless services from several international countries.

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3. International Mobile-to-Mobile SMS within Local Network

3.a) International Countries

Standard international SMS costs for Verizon Wireless postpaid and prepaid users are 22 Euro cents to most international countries from the US. Whereas, standard international SMS‟ for Webtel.mobi users with a Verizon post-paid mobile subscription is 8.78 Euro cents to most countries and Verizon prepaid subscribers using Webtel.mobi are charged an average of 88.99 Euro cents to most countries. The huge cost is attributed to the fact that Verizon Wireless charges an average cost of 84.49 Euro cents for its prepaid subscribers to access 25KB of EVDO traffic for interacting with Webtel.mobi's SMS platform. On the other hand, Verizon postpaid subscribers are charged 4.28 Euro cents to access 25KB of EVDO traffic for interacting with Webtel.mobi's SMS platform.

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4. International Roaming Mobile-to-Mobile SMS


Except for SMS‟ made from Canada and Mexico back to the US, Webtel.mobi is a costly proposition for sending SMS to the US from several international countries when roaming.

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Prepaid and Postpaid Verizon(Euro cents/msg)



Verizon Wireless Pre-paid Verizon Wireless Post-paid Webtel.mobi

No ID proof required when purchasing online.

Identity Proof required All that is required is an Internet enabled mobile phone with a working phone number

No address proof required when purchasing online.

Proof of Address required Sign up online for free

A 17.67 Euro activation fee may apply. Prepaid phones also cost from 13.43 Euro to 106 Euro.

Initial device charges may apply. 24.74 Euro activation fee could be waved off for large accounts or businesses.


No credit checks, long-term contracts or deposits.

Monthly Contract Charges can vary from 28.27 Euro to 98.97 Euro (Unlimited Everything)


Mobile users can recharge their phones online, at Verizon Wireless shops, or at other partner retailers.

Mobile users pay their monthly contract charges and monthly call charges.

Load credit on Webtel.mobi‟s website.

Prepaid stored value expires in 30 days to one year. If balance expires, unused portion is forfeited.

Calls are post-paid. Credit purchased does not expire.

Domestic roaming per minute rate is 14 Euro cents. International roaming for SMS is 35 Euro cents per sent SMS and 3.5 Euro cents per received SMS.

No domestic roaming charge. International SMS generally costs 17.67 Euro cents to send and 14 Euro cents to receive.

International roaming available to all users at no cost.


G. Summary

Webtel.mobi‟s services in and from the US are reliable and provide optimum quality for voice and text messaging services.

Webtel.mobi‟s services can be used in more than 195 countries worldwide in comparison to Verizon

Wireless, which can be used only in 40 countries worldwide.

Webtel.mobi enjoys a strong competitive advantage over Verizon Wireless in terms of the majority of voice services and text / SMS services.

Webtel.mobi‟s mobile-initiated fixed –fixed line service provides its users huge cost savings than

Verizon Wireless for voice calls when roaming internationally.

Webtel.mobi‟s service provides ease of user registration and clear tariffs.

Webtel.mobi is extremely well positioned to make a significant impact on the mobile voice and text market in the US and provide even further cost savings to its users once Verizon Wireless and other US mobile operators alike reduce the cost of using mobile web.


CASE STUDY III - UK

WEBTEL.MOBI VS. VODAFONE UK Vodafone Introduction Vodafone Group, founded in 1985, is the world‟s largest mobile operator in terms of total revenue (46.0 Billion Euro) with equity interests in 27 countries across Europe, the Middle East, Africa, Asia Pacific (APAC) and the United States. As of 31 March 2009, Vodafone had approximately 302.6 million proportionate customers worldwide and as part of its growth strategy it will continue investing in markets within APAC, Africa and the Middle East -thereby enabling it to be the world‟s largest mobile operator in terms of total customers as well. The UK mobile market is almost equally divided amongst four operators -Vodafone, T-Mobile, Orange and O2, with Vodafone UK having approximately 18.7 million customers and a 26.0% market share. By virtue of its relative network rollout, Three UK has had a constant market share of approximately 5.0% in the last five years. As a summer promotion offer, from 1 June until the end of August 2009, Vodafone Passport UK users will not need to pay roaming charges for text and voice services in 35 European countries and also to countries such as Australia and New Zealand. Webtel.mobi Introduction Webtel.mobi is a Specialized Mobile Provider that is in the process of launching its low-cost mobile voice and text services in all countries internationally. It provides a hybrid internet-initiated mobile calling and text messaging service. This enables it to provide ultra low cost mobile voice and text services to all web-enabled mobile phones worldwide, at rates of Operational Efficiency which are unparalleled in the mobile market. Due to the fact that its service is available to all internet-enabled mobile phones on all networks worldwide, it maps on to the combined international coverage of all mobile providers.

A. Vodafone UK’s Voice and SMS Revenues, and Market Capitalisation

a. Vodafone UK Voice Revenues 2008-2009 – 3.6 Billion Euro

b. Vodafone UK SMS Revenues 2008-2009 – 1.0 Billion Euro

c. Market Capitalization of Vodafone Group as of June 2009 – 71.34 Billion Euro

d. Vodafone UK Operating costs 2008-2009 – 5.9 Billion Euro


B. Service Availability 1. National Geographic Coverage Comparison: Webtel.mobi vs. Vodafone

Percentage of Coverage within UK

Webtel.mobi‟s national geographic coverage is in par with most UK operators having more than 99% population coverage. 2. International Geographic Coverage Comparison: Webtel.mobi vs. Vodafone


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Webtel.mobi has a significant international geographic footprint compared to Vodafone – Webtel.mobi in 195 countries, and Vodafone in 27 countries. The Webtel.mobi service is available in all countries internationally, on all web-enabled mobile phone makes and models. This vast disparity gives Webtel.mobi a competitive advantage over Vodafone in terms of international geographic coverage.

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Webtel.mobi (Global) vs. Vodafone (Global)

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In terms of operating costs as a percentage of revenues, Vodafone‟s operating costs are substantially higher than those of Webtel.mobi. Therefore, Webtel.mobi has generated, on a relative cost scale, positive returns for the investors.


Webtel.mobi (Country) vs. Vodafone UK (Country)

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Vodafone Group's total operating cost as a percentage of revenue is 85.7%. Taking into account only Vodafone UK operations we arrive at an operating cost of 95.6%. Webtel.mobi provides its services in 195 countries. Hence, the operating cost of Webtel.mobi per country is 0.07 percent (13.7 percent divided by 195 countries). Therefore, again on a relative cost scale, Webtel.mobi has operated with far more efficiency than Vodafone UK.


D. Webtel.mobi Unique Selling Points vs. Vodafone / UK market 1. Widest coverage in the UK

Webtel.mobi is available to all web-enabled mobile phones on all networks in the UK. 2. No requirement for licence fees

Due to it being internet-initiated telephony, Webtel.mobi currently does not have to pay licence fees in the UK.
















11. Webtel.mobi has easily obtainable and clear price lists Unlike Vodafone, Webtel.mobi‟s price lists are clear and have no hidden costs. 12. Users can join and use the Webtel.mobi service free of charge Users can join Webtel.mobi free of charge – and obtain limited free credit to test the service when





waiting period.


E. Tariff Comparisons The charts below illustrate the differences in voice and SMS tariffs between Webtel.mobi and Vodafone UK.

Note

15% VAT taken into account for Vodafone's standard rate per minute for both post-paid and pre-paid services.

Existing standard rates per minute taken into account for both post-paid and pre-paid services.

Promotion offers, Vodafone International, Vodafone Passport and International Call Saver are not taken into account as it is not included in all price plans (or/and) is an opt-in service (or/and) is limited to a particular time period.

The above data takes into account of the mobile user (for webtel.mobi site) connecting through a GPRS/EDGE network and not via a Wi-Fi network.

GPRS traffic of 25KB has been considered to interact with Webtel.mobi's voice platform. The Webtel.mobi WAP site is "made-for-mobile" optimised to render at less than 0.020MB (20KB) in size.

Webtel.mobi (Euro cents/ minute) costs include: - All surcharges by the mobile operator for GPRS traffic per minute + Incoming Mobile calls + Call charges levied by Webtel.mobi.

Webtel.mobi charges per second. Vodafone UK charges by the second only after charging a minimum call charge of 17 Euro cents.

Webtel.mobi's one-off charge of 5 Euro cents to connect calls is not taken into consideration.


1. Local Voice Calls in the United Kingdom: 1.a) Mobile to Fixed Line and Mobile to Mobile (Non-Vodafone Networks)

It is noticed that for mobile to fixed line calls within the UK, Webtel.mobi provides cost savings up to 12 percent over Vodafone post-paid and prepaid subscribers. For mobile calls made to non-Vodafone networks, it is noticed that Webtel.mobi provides cost savings up to 6.2 percent over Vodafone post-paid subscribers.

Note: * The comparisons above are only valid for:-

Users who do not take out a package which includes bundled free texts or calls. Users who have taken out a package which includes bundled free texts or calls, and who

have exceeded their free text or call limit.

0

5

10

15

20

25

30

35

40

45

Mobile to Fixed

line

Mobile to Mobile

(Non-Vodafone

Netw orks)


Vodafone Prepaid (Euro cents/minute)

Vodafone Postpaid (Euro cents/minute)



For most international calls terminating on a mobile network, Webtel.mobi‟s calling costs are far more competitive. Calls made to China and Canada for example cost 731 percent less than those made over Vodafone’s network. Webtel.mobi has a significant competitive advantage over Vodafone for most International Mobile to Mobile calls.


It is noticed that for Vodafone prepaid users, costs for international calls terminating on a fixed line in Russia, China, India and Hong Kong are lower than Webtel.mobi. However, Vodafone UK‟s prepaid charges are set to increase from July 3rd 2009 onwards and will have the same price points of Vodafone post-paid users as indicated in the chart above. Comparatively for calls made to other international countries, Webtel.mobi‟s call costs between 335 to 723 percent less than Vodafone.

0

20

40

60

80

100

120

140

160

180

UK to U

SA

UK to C

anad

a

UK to R

ussia

UK to C

hina

UK to H

ong

Kong

UK to C

osta

Rica

UK to K

orea

UK to In

dia

UK to A

ustra

lia

UK to U

AE


Prepaid Vodafone (Euro cents/minute)

Postpaid Vodafone (Euro cents/minute)

0

20

40

60

80

100

120

140

160

180

UK to U

SA

UK to C

anad

a

UK to R

ussia

UK to C

hina

UK to H

ong

Kong

UK to C

osta

Rica

UK to K

orea

UK to In

dia

UK to A

ustra

lia

UK to U

AE






Other than calls made to India, Webtel.mobi‟s charges are far more competitive than Vodafone prepaid users to several international countries. As indicated in the chart above, Webtel.mobi‟s calls cost from 335 to 723 percent less than Vodafone (both prepaid and postpaid) to most international countries. Webtel.mobi has a strong competitive advantage over Vodafone for most Mobile Initiated Fixed Line to Fixed Line calls.

0

20

40

60

80

100

120

140

160

180

UK to U

SA

UK to C

anad

a

UK to R

ussia

UK to C

hina

UK to H

ong

Kong

UK to C

osta

Rica

UK to K

orea

UK to In

dia

UK to A

ustra

lia

UK to U

AE





3. International Voice Calls within local network (From July 3rd 2009 onwards): 3.a) Mobile to Mobile

From July 3rd 2009, Vodafone will be charging both its prepaid and post-paid subscribers 170 Euro cents per minute for all international calls to non-European countries. As indicated in the chart above, Webtel.mobi‟s calls cost from 341 to 735 percent less than Vodafone (both prepaid and postpaid) to several international countries. Hence, Webtel.mobi will have a significant competitive advantage over Vodafone for most International Mobile to Mobile calls from July 3rd onwards.


As indicated in the chart above, Webtel.mobi‟s calls cost from 335 to 731 percent less than Vodafone (both prepaid and postpaid) to several international countries terminating on a fixed line. Hence, Webtel.mobi will have a significant competitive advantage over Vodafone for most International Mobile to fixed line calls from July 3rd onwards.

0

20

40

60

80

100

120

140

160

180

UK to

USA

UK to

Can

ada

UK to

Rus

sia

UK to

China

UK to

Hon

g Kon

g

UK to

Cos

ta R

ica

UK to

Kor

ea

UK to

India

UK to

Aus

tralia

UK to

UAE




0

20

40

60

80

100

120

140

160

180

UK to

USA

UK to

Can

ada

UK to

Rus

sia

UK to

China

UK to

Hon

g Kon

g

UK to

Cos

ta R

ica

UK to

Kor

ea

UK to

India

UK to

Aus

tralia

UK to

UAE






As indicated in the chart above, Webtel.mobi‟s calls cost from 685 to 5473 percent less than Vodafone (both prepaid and postpaid) to several international countries. Hence, Webtel.mobi has a strong competitive advantage over Vodafone for most Mobile Initiated Fixed Line to Fixed Line calls.

0

20

40

60

80

100

120

140

160

180

UK to

USA

UK to

Can

ada

UK to

Rus

sia

UK to

China

UK to

Hon

g Kon

g

UK to

Cos

ta R

ica

UK to

Kor

ea

UK to

India

UK to

Aus

tralia

UK to

UAE





4. European Voice Calls within local network: 4.a) Mobile to Mobile

For international calls made to European countries, it is noticed that Webtel.mobi calls cost from 157 to 196 percent less than Vodafone prepaid users and from 187 to 231 percent less than Vodafone post-paid users.


For international calls made to European countries terminating on a fixed line, it is noticed that Webtel.mobi provides significant cost savings up to 393 percent over Vodafone prepaid subscribers and up to 452 percent over Vodafone postpaid subscribers.

0

20

40

60

80

100

120

UK to G

erman

y

UK to S

pain

UK to Italy

UK to F

ranc

e

UK to A

ustria

UK to B

elgium

UK to S

weden

UK to N

orway

UK to D

enm

ark




0

20

40

60

80

100

120

UK to G

erman

y

UK to S

pain

UK to Italy

UK to F

ranc

e

UK to A

ustria

UK to B

elgium

UK to S

weden

UK to N

orway

UK to D

enm

ark






Webtel.mobi provides a service (not offered by Vodafone), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to a fixed line. This as a result enables Webtel.mobi users to benefit from huge cost savings up to 3300 percent over Vodafone service offerings.

0

20

40

60

80

100

120

UK to G

erman

y

UK to S

pain

UK to Italy

UK to F

ranc

e

UK to A

ustria

UK to B

elgium

UK to S

weden

UK to N

orway

UK to D

enm

ark





5. European Voice Calls within local network (From July 3rd 2009 onwards): 5.a) Mobile to Mobile

From July 3rd 2009, Vodafone will be charging both its prepaid and post-paid subscribers 113 Euro cents per minute for all international calls to European countries. As indicated in the chart above, Webtel.mobi‟s calls cost from 169 to 232 percent less than Vodafone (both prepaid and postpaid) to several international European countries. Hence, Webtel.mobi will have a significant competitive advantage over Vodafone for most International European Mobile to Mobile calls from July 3rd onwards.


For international calls made to European countries terminating on a fixed line, it is noticed that Webtel.mobi provides significant cost savings up to 452 percent over Vodafone. Hence, Webtel.mobi will have a significant competitive advantage over Vodafone for most International European Mobile to fixed line calls from July 3rd onwards.

0

20

40

60

80

100

120

UK to

Ger

man

y

UK to

Spa

in

UK to

Italy

UK to

Fra

nce

UK to

Aus

tria

UK to

Belgiu

m

UK to

Swed

en

UK to

Nor

way

UK to

Den

mar

k




0

20

40

60

80

100

120

UK to

Ger

man

y

UK to

Spa

in

UK to

Italy

UK to

Fra

nce

UK to

Aus

tria

UK to

Belgiu

m

UK to

Swed

en

UK to

Nor

way

UK to

Den

mar

k






Webtel.mobi provides a service (not offered by Vodafone), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to a fixed line. This as a result will enable Webtel.mobi users to benefit from huge cost savings up to 3605 percent over Vodafone service offerings from July 3rd 2009 onwards.

0

20

40

60

80

100

120

UK to

Ger

man

y

UK to

Spa

in

UK to

Italy

UK to

Fra

nce

UK to

Aus

tria

UK to

Belgiu

m

UK to

Swed

en

UK to

Nor

way

UK to

Den

mar

k





6. International Roaming outside of Europe: 6.a) Mobile to Mobile

With regard to international roaming mobile-mobile voice calls, it is quite evident from the chart above that Webtel.mobi provides cost savings of up to 18 percent towards calls made from several international countries. However, it is noticed that roaming voice call made from China, Australia and South Africa to the UK cost comparatively higher than Vodafone‟s cellular roaming network. Note: Vodafone UK charges its customers £5 per day for up to 15MB when roaming internationally in most countries. However, this package does not include VoIP services within certain countries in Europe and Australia. In order to use VoIP using Vodafone‟s network in these countries, mobile users are charged separately at £5 per MB, with a 5p minimum charge for each data session. Webtel.mobi is not a VoIP service provider but rather a specialized mobile provider providing Internet-initiated telephony service. Hence, its users will not be required to pay such steep prices for mobile Internet when roaming abroad.

0

50

100

150

200

250

300

USA to U

K

Canada

to U

K

China

to U

K

Hong K

ong to

UK

UAE to U

K

Austra

lia to

UK

South

Afri

ca to

UK

Mex

ico to

UK

Isra

el to

UK


Postpaid and Prepaid Vodafone (Euro

cents/minute)



Webtel.mobi provides a service (not offered by Vodafone), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to a fixed line so as to avoid paying incoming roaming charges to a large extent. Webtel.mobi‟s mobile initiated – fixed line to fixed line service negates incoming roaming charges on the mobile phone and thus provides tremendous cost savings up to 971 percent over Vodafone services from several international countries.

7. International Roaming within Europe: 7.a) Mobile to Fixed Line

For roaming calls made from several European countries terminating on a UK fixed network, it is noticed that Webtel.mobi provides cost savings from 9 to 27 percent than those made over Vodafone’s cellular network.

0

50

100

150

200

250

300

USA to U

K

Canada

to U

K

China

to U

K

Hong K

ong to

UK

UAE to U

K

Austra

lia to

UK

South

Afri

ca to

UK

Mex

ico to

UK

Isra

el to

UK


Postpaid and Prepaid Vodafone(Euro cents/minute)

0

10

20

30

40

50

60

70

Ger

man

y to

UK

Spain to

UK

Italy

to U

K

Franc

e to U

K

Austri

a to U

K

Belgium

to U

K

Sweden

to U

K

Norway

to U

K

Denmar

k to

UK





Webtel.mobi‟s innovative mobile initiated – fixed line (user‟s current roaming location) to a fixed line service provides cost savings of 1341 percent over Vodafone‟s services from all European countries when roaming.

8. Local Mobile-Mobile SMS: 8.a) Within UK

For local SMS‟ made within the UK, it is noticed that Webtel.mobi provides significant cost savings of 41.6 percent over Vodafone prepaid subscribers and 70.1 percent over Vodafone postpaid subscribers.


• Users who do not take out a package which includes bundled free texts or calls. • Users who have taken out a package which includes bundled free texts or calls, and who have

exceeded their free text or call limit.

0

10

20

30

40

50

60

70

Ger

man

y to

UK

Spain to

UK

Italy

to U

K

Franc

e to U

K

Austri

a to U

K

Belgium

to U

K

Sweden

to U

K

Norway

to U

K

Denmar

k to

UK



0

2

4

6

8

10

12

14

16

Local Text Within

the UK


Prepaid Vodafone (Euro cents/msg)

Postpaid Vodafone (Euro cents/msg)


9. International Mobile-to-Mobile SMS within Local Network

9.a) International Countries outside of Europe

Standard international SMS costs for Vodafone postpaid and prepaid users are 27.3 Euro cents to most international countries from the UK. Whereas, standard international SMS‟ for Webtel.mobi users is 4.55 Euro cents to most countries. Hence, Webtel.mobi has a cost saving of 500 percent compared to Vodafone's service.

10. International Roaming Mobile-to-Mobile SMS

10.a) Roaming within Europe

Standard international roaming SMS‟ for Vodafone postpaid and prepaid users are 65.33 Euro cents from most European countries to the UK. Standard International SMS‟ for Webtel.mobi users is 9 Euro cents per message from most countries. Hence, Webtel.mobi has a cost saving of 626 percent compared to Vodafone's service.

0

5

10

15

20

25

30

UK to U

SA

UK to G

erman

y

UK to F

ranc

e

UK to C

hina

UK to H

ong

Kong

UK to S

weden

UK to N

orway

UK to In

dia

UK to A

ustra

lia

UK to U

AE


Prepaid and Postpaid Vodafone(Euro cents/msg)

0

10

20

30

40

50

60

70

Ger

man

y to

UK

Spain to

UK

Italy to

UK

Franc

e to

UK

Austri

a to

UK

Belgium

to U

K

Swed

en to

UK

Nor

way

to U

K

Den

mark

to U

K


Prepaid and Postpaid Vodafone (Euro

cents/msg)


10.b) Roaming outside of Europe

Except for a few countries, international roaming SMS‟ costs incurred from most countries to the UK for Vodafone postpaid and prepaid users are approximately 78 Euro cents, which is far greater than the average international roaming SMS‟ for Webtel.mobi users capped at 30 Euro cents per message. Hence, Webtel.mobi has a cost saving of 160 percent compared to Vodafone's service.

0

10

20

30

40

50

60

70

80

90

100

USA to U

K

Canada

to U

K

China

to U

K

Hong K

ong to

UK

UAE to U

K

Austra

lia to

UK

South

Afri

ca to

UK

Mex

ico to

UK

Isra

el to

UK


Prepaid and Postpaid Vodafone(Euro cents/msg)



Vodafone UK Pre-paid Vodafone UK Post-paid Webtel.mobi

Identity Proof required Identity Proof required All that is required is an Internet enabled mobile phone with a working phone number

Proof of Address Proof of Address Sign up online for free

No Activation Charges No Activation Charges No Activation Charges. Must have a prepaid or postpaid contract with a mobile provider

No monthly contract charges Monthly Contract Charges can vary from £10 (SIM contract) to £80 (Contract with Blackberry for 18 months)


Mobile users can recharge their phones online, at banks, at Vodafone shops, at supermarkets and other retailers.

Mobile users pay their monthly contract charges and monthly call charges in arrears by debit order


Most packages require users to exhaust their credit anywhere between 30 to 90 days.

Calls are post-paid Credit purchased does not expire.

From July 2009, prices have to harmonize with EU directive on roaming and the tariff will be: €0.43 for outgoing calls in the EU, €0.19 for incoming roaming calls. Roaming cost for SMS will be €0.11.

From July 2009, prices have to harmonize with EU directive on roaming and the tariff will be: €0.43 for outgoing calls in the EU, €0.19 for incoming roaming calls. Roaming cost for SMS will be €0.11.



G. Summary

Webtel.mobi‟s services in and from UK are reliable and provide optimum quality for voice and text messaging services.

Webtel.mobi enjoys a strong competitive advantage over Vodafone in terms of the majority of voice services and text / SMS services.

Given that Webtel.mobi is available on all networks, it enjoys a competitive advantage over

Vodafone in terms of Service Availability for National and International Geographic coverage.

Webtel.mobi‟s mobile-initiated fixed –fixed line service provides its users huge cost savings than Vodafone for voice calls.


Webtel.mobi is extremely well positioned to make a significant impact on the mobile voice and text

market in the UK.


CASE STUDY IV – South Africa

WEBTEL.MOBI vs. VODACOM SOUTH AFRICA

Vodacom Introduction Vodacom, a 50:50 joint venture of Vodafone and local landline operator, Telkom, is a leading African service provider operating across five countries: South Africa, Tanzania, the DRC, Lesotho and Mozambique. For the year ended 31 March 2009, Vodacom had a subscriber base of 39.6 million customers and reported revenue of 4.84 Billion Euro. Vodacom SA is the clear market leader in South Africa with regard to total customers and revenue, and its 27.6 million customers has helped the organisation maintain its leadership position with a 53 percent market share in South Africa. The operator is most often at the forefront of new products for the mobile market such as its location-based service, The Grid, and call collect services to contract clients. Its comprehensive data offerings have allowed the company to attract new subscribers and retain high-end subscribers and increase the uptake of contracts. It is for these very reasons why Vodafone is interested in increasing its stake in Vodacom to 65 percent and expand its services across Africa as part of its growth strategy in emerging markets.

Webtel.mobi Introduction Webtel.mobi is a Specialized Mobile Provider that is in the process of launching its low-cost mobile voice and text services in all countries internationally. It provides a hybrid internet-initiated mobile calling and text messaging service. This enables it to provide ultra low cost mobile voice and text services to all web-enabled mobile phones worldwide, at rates of Operational Efficiency which are unparalleled in the mobile market. Due to the fact that its service is available to all internet-enabled mobile phones on all networks worldwide, it maps on to the combined international coverage of all mobile providers.

A. Vodacom’s Voice and SMS Revenues, and Market Capitalisation

e. Vodacom Voice Revenues 2008-2009 – 2.9 Billion Euro

f. Vodacom Messaging Revenues 2008-2009 – 211 Million Euro

g. Market Capitalization of Vodacom as of June 2009 – 7.18 Billion Euro

h. Vodacom Operating costs 2008-2009 – 3.2 Billion Euro


B. Service Availability 1. National Geographic Coverage Comparison: Webtel.mobi vs. Vodacom

Percentage of Coverage within South Africa

0%

20%

40%

60%

80%

100%

120%

Webtel.mobi Vodacom SA

Webtel.mobi‟s national geographic coverage is in par with Vodacom SA having more than 98 percent coverage. 2. International Geographic Coverage Comparison: Webtel.mobi vs. Vodacom


Webtel.mobi has a significant international geographic footprint compared to Vodacom – Webtel.mobi in 195 countries, and Vodacom in 5 countries. The Webtel.mobi service is available in all countries internationally, on all web-enabled mobile phone makes and models. This vast disparity gives Webtel.mobi a competitive advantage over Vodacom in terms of international geographic coverage.

0

50

100

150

200

250

Webtel.mobi Vodacom



Webtel.mobi (Global) vs. Vodacom (Global)

In terms of operating costs as a percentage of revenues, Vodacom‟s operating costs are substantially higher than those of Webtel.mobi. Therefore, Webtel.mobi has generated, on a relative cost scale, positive returns for the investors.


Webtel.mobi (Country) vs. Vodacom South Africa (Country)

Vodacom‟s total operating cost as a percentage of revenue is 79 percent. Taking into account only Vodacom SA operations we arrive at an operating cost of 15.8 percent. Webtel.mobi provides its services in195 countries. Hence, the operating cost of Webtel.mobi per country is 0.07 percent (13.7 percent divided by 195 countries). Therefore, again on a relative cost scale, Webtel.mobi has operated with far more efficiency than Vodacom SA.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Webtel.mobi Vodacom

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Webtel.mobi Vodacom SA


D. Webtel.mobi Unique Selling Points vs. Vodacom / South African market

1. Widest coverage in South Africa

Webtel.mobi is available to all web-enabled mobile phones on all networks in South Africa. 2. No requirement for licence fees

Due to it being internet-initiated telephony, Webtel.mobi currently does not have to pay licence fees in South Africa.
















11. Webtel.mobi has easily obtainable and clear price lists Unlike Vodacom, Webtel.mobi‟s price lists are clear and have no hidden costs. 12. Users can join and use the Webtel.mobi service free of charge Users can join Webtel.mobi free of charge – and obtain limited free credit to test the service when





waiting period.


E. Tariff Comparisons The charts below illustrate the differences in voice and SMS tariffs between Webtel.mobi and Vodacom SA.

Note o 14% VAT taken into account for Vodacom's standard rate per minute for both post-paid and

pre-paid services. o Existing standard rates with peak rates per minute taken into account for both post-paid and

pre-paid services. o Promotion offers, Vodafone Passport and International Call Saver are not taken into account. o The above data takes into account of the mobile user (for Webtel.mobi site) connecting through

a GPRS network and not via a Wi-Fi network. o GPRS traffic of 25KB has been considered to interact with Webtel.mobi's voice platform. The

Webtel.mobi WAP site is "made-for-mobile" optimised to render at less than 0.020MB (20KB) in size.

o Webtel.mobi (Euro cents/ minute) costs include: - All surcharges by the mobile operator for GPRS traffic per minute + Incoming Mobile calls + Call charges levied by Webtel.mobi.

o Webtel.mobi's one-off charge of 5 Euro cents to connect calls is not taken into consideration.



For most international calls terminating on a mobile network, Webtel.mobi‟s calling costs are far more competitive. Calls made to Russia and Hong Kong for example cost up to 458 percent less than Vodacom’s prepaid users and 92.45 percent less than Vodacom’s postpaid users. Webtel.mobi has a significant competitive advantage over Vodacom (both prepaid and postpaid) for most International Mobile to Mobile calls.


For most international calls terminating on a fixed line network, Webtel.mobi‟s calling costs are far more competitive. Calls made to UK and Canada for example cost 270 percent less than Vodacom prepaid users and 64.5 percent less than Vodacom postpaid subscribers. Webtel.mobi has a significant competitive advantage over Vodacom for most International mobile to fixed line calls.

0

20

40

60

80

100

120

140

SA to U

K

SA to U

SA

SA to C

anada

SA to C

hina

SA to R

ussia

SA to H

ongko

ng

SA to C

osta

Rica

SA to In

dia

SA to A

ustra

lia

SA to U

AE


Prepaid Vodacom (Euro cents/minute)

Postpaid Vodacom (Euro cents/minute)

0

20

40

60

80

100

120

140

SA to U

K

SA to U

SA

SA to C

anada

SA to C

hina

SA to R

ussia

SA to H

ongko

ng

SA to C

osta

Rica

SA to In

dia

SA to A

ustra

lia

SA to U

AE






Webtel.mobi‟s charges are far more competitive than Vodacom to several international countries. As indicated in the chart above, Webtel.mobi‟s calls cost from 80 to 370 percent less than Vodacom postpaid users and 415 to 1777 percent than Vodacom prepaid users to most international countries. Webtel.mobi has a strong competitive advantage over Vodacom for most Mobile Initiated Fixed Line to Fixed Line calls.

0

20

40

60

80

100

120

140

SA to U

K

SA to U

SA

SA to C

anad

a

SA to C

hina

SA to R

ussia

SA to H

ongk

ong

SA to C

osta

Rica

SA to In

dia

SA to A

ustra

lia

SA to U

AE





2. International Voice Calls to African Nations within local network: 2.a) Mobile to Mobile

Except for Lesotho, it is noticed that for most African nations, Webtel.mobi calls cost from 12 to 168 percent less than Vodacom postpaid users and from 193 to 466 percent less than Vodacom prepaid users.


For international calls made to African nations terminating on a fixed line, it is noticed that Webtel.mobi provides significant cost savings up to 464 percent over Vodacom prepaid users and up to 167 percent over Vodacom postpaid subscribers.

0

20

40

60

80

100

120

140

160

180

SA to A

lgeria

SA to L

ibya

SA to G

hana

SA to M

ozam

bique

SA to L

esotho

SA to T

anzani

a

SA to D

RC

SA to E

gypt

SA to Z

ambia




0

20

40

60

80

100

120

140

160

180

SA to A

lgeria

SA to L

ibya

SA to G

hana

SA to M

ozam

bique

SA to L

esotho

SA to T

anzani

a

SA to D

RC

SA to E

gypt

SA to Z

ambia






Webtel.mobi provides a service (not offered by Vodacom) where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to a fixed line. This as a result enables Webtel.mobi users to benefit from huge cost savings up to 801 percent over Vodacom prepaid users and 319 percent over Vodacom postpaid subscribers.

0

20

40

60

80

100

120

140

160

180

SA to A

lgeria

SA to L

ibya

SA to G

hana

SA to M

ozam

bique

SA to L

esotho

SA to T

anzani

a

SA to D

RC

SA to E

gypt

SA to Z

ambia





3. Local Calls when International Roaming: 3.a) Mobile Initiated – Fixed Line to Fixed Line

Except for Mozambique and UAE, it is noticed that for most local calls made when international roaming, Webtel.mobi calls cost from 71 to 1124 percent less than Vodacom prepaid users and from 90 to 763 percent less than Vodacom postpaid users.

4. International Roaming: 4.a) Mobile to Mobile

Except for Mozambique, it is quite evident from the chart above that Webtel.mobi provides cost savings of up to 190 percent over Vodacom users towards calls made from several international countries terminating on a South African mobile network.

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Austri

a

Brazil

Franc

e

Ger

man

y

Kenya

Moz

ambiqu

e

Namib

ia

Portu

gal

Sweden

Tanza

nia

UKUAE


Prepaid Vodacom (Euro cents /minute)

Postpaid Vodacom (Euro cents /minute)

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

Austri

a to S

A

Brazil to

SA

Franc

e to S

A

Ger

man

y to

SA

Kenya

to S

A

Moz

ambiqu

e to S

A

Namib

ia to

SA

Portu

gal to

SA

Sweden

to S

A

Tanza

nia to

SA

UK to S

A

UAE to S

A






Except for Mozambique, it is quite evident from the chart above that Webtel.mobi provides cost savings of up to 190 percent over Vodacom users towards calls made from several international countries terminating on a South African fixed line network.

4.c) Mobile Initiated - Fixed Line to Fixed Line

Webtel.mobi provides a service (not offered by Vodacom), where users can enjoy a mobile initiated – fixed line (user‟s current roaming location) to a fixed line so as to avoid paying incoming roaming charges to a large extent. Webtel.mobi‟s mobile initiated – fixed line to fixed line service negates incoming roaming charges on the mobile phone and thus provides tremendous cost savings up to 2137 percent over Vodacom services from several international countries.

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

Austri

a to S

A

Brazil to

SA

Franc

e to S

A

Ger

man

y to

SA

Kenya

to S

A

Moz

ambiqu

e to S

A

Namib

ia to

SA

Portu

gal to

SA

Sweden

to S

A

Tanza

nia to

SA

UK to S

A

UAE to S

A




0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

Austri

a to S

A

Brazil to

SA

Franc

e to S

A

Ger

man

y to

SA

Kenya

to S

A

Moz

ambiqu

e to S

A

Namib

ia to

SA

Portu

gal to

SA

Sweden

to S

A

Tanza

nia to

SA

UK to S

A

UAE to S

A





5. Local Mobile-Mobile SMS: 5.a) Within South Africa

For local SMS‟ made within South Africa, it is noticed that Webtel.mobi provides significant cost savings of 31.3 percent over Vodacom users (both prepaid and postpaid).


• Users who do not take out a package which includes bundled free texts or calls. • Users who have taken out a package which includes bundled free texts or calls, and who have

exceeded their free text or call limit. 6. International Mobile-to-Mobile SMS within Local Network:


Standard international SMS costs for Vodacom postpaid and prepaid users are 8.91 Euro cents to African nations and 15.51 Euro cents to other international countries from South Africa. Whereas, for Webtel.mobi, users are charged 4.93 Euro cents to most international countries. Hence, Webtel.mobi provides cost savings up to 214 percent compared to Vodacom’s service.

0

1

2

3

4

5

6

7

8

Peak Rate


Prepaid and Postpaid

Vodacom (Euro cents/msg)

0

2

4

6

8

10

12

14

16

18

SA to L

esotho

SA to T

anzani

a

SA to D

RC

SA to U

SA

SA to U

K

SA to U

AE

SA to S

pain

SA to G

erm

any

SA to C

hina

SA to In

dia

SA to A

ustra

lia


Prepaid and Postpaid Vodacom(Euro cents/msg)


7. International Roaming Mobile-to-Mobile SMS:


Except for Mozambique, it is quite evident from the chart above that for SMS‟ sent from international roaming countries, Webtel.mobi provides cost savings of up to 364 percent over Vodacom prepaid users and up to 265 percent over Vodacom postpaid users.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Austri

a to S

A

Franc

e to S

A

Ger

man

y to S

A

Kenya

to S

A

Moz

ambiqu

e to

SA

Nam

ibia to

SA

Portu

gal to

SA

Swed

en to

SA

Tanza

nia

to S

A

UK to

SA

UAE

to S

A


Prepaid Vodacom (Euro cents /msg)

Postpaid Vodacom (Euro cents /msg)



Vodacom SA Pre-paid Vodacom SA Post-paid Webtel.mobi

No identity proof required Identity Proof required All that is required is an Internet enabled mobile phone with a working phone number

No proof of address required Address proof no longer required since 2008 Sign up online for free

No Activation Charges 8.51 Euro connection fee and 9.21 Euro for the SIM


No monthly contract charges Packages vary from 16.58 Euro to 135 Euro for individual users


Mobile users can recharge their phones online, at ATMs, at Vodacom shops, at supermarkets and other retailers, and through telephone/cell phone banking

Mobile users pay their monthly contract charges and monthly call charges in arrears by debit order only


The credit value of the voucher is valid for the airtime window on the voucher from the date of redemption

Calls are post-paid Credit purchased does not expire.

SMS Roaming = 21.94 Euro cents to 65.82 Euro cents depending on country

Local Rates based roaming: only available in UK, France and Portugal. Same charges as the post-paid basis

No flat tariff roaming for prepaid users

Roaming at local international rates i.e. local rates at the country you are travelling – customers are required to preload their phones with local airtime before travelling or carry local recharge vouchers with them. This service is available in Austria , Brazil, France ,Germany ,Kenya ,Maldives ,Mozambique ,Namibia ,Portugal, Slovenia, Sweden, Tanzania, UK and UAE

There are four roaming options:

1. Local Rates based roaming: Albania, Australia, Czech Republic, France Germany, Greece, Hungary, Ireland, Italy Malta, Netherlands, New Zealand, Portugal Romania, Spain, UK. The cost is 1.53 Euro connection fee per call + local (SA) peak, off net call rates. This is for calls made to networks within that country or to SA. Receiving calls is a flat fee of 1.53 Euro

2. SMS roaming: 24.13 Euro cents ; With a Vodafone partner network it costs 21.5 Euro cents

3. Flat Tariff roaming: Charges are based on type of package and region being visited. Typical charges within Africa = 57 Euro cents for local call and 2.5 Euro for international calls. 52 Euro cents to receive calls. All charges are per minute

4. Roaming at local international rates i.e. local rates at the country you are travelling – customers are required to opt out of the default roaming system (systems 1 or 3). They are then charged at the local service providers rates.



G. Summary

Webtel.mobi‟s services in and from South Africa are reliable and provide optimum quality for voice

and text messaging services.

Webtel.mobi enjoys a strong competitive advantage over Vodacom in terms of the majority of voice

services and text / SMS services.

Given that Webtel.mobi is available on all networks, it enjoys a competitive advantage over

Vodacom in terms of Service Availability for National and International Geographic coverage.

Webtel.mobi‟s mobile-initiated fixed –fixed line service provides its users huge cost savings than

Vodacom for voice calls.


Webtel.mobi is extremely well positioned to make a significant impact on the mobile voice and text

market in South Africa.


APPENDIX B

About Frost & Sullivan

A Growth Partnership Company

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class

positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the

CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and

implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering

with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Comprehensive Industry Coverage

We offer comprehensive coverage of major market sectors, ensuring that we are fully equipped to provide clients with

a complete assessment of opportunities, both inside and outside their current marketplaces. This uniquely broad

perspective allows us to quickly and effectively support clients in identifying and qualifying new growth opportunities.

Global Perspective

We leverage our global perspective and presence to support clients and help them capture business opportunities

faster and with less risk. Our 800 analysts continually track the global and regional markets to identify emerging


technologies, and monitor country specific economics and demographic factors, to offer clients a complete view of the

global landscape.

The ICT Practice



Our People

Frost & Sullivan has a strong standing as an independent research and consulting company, whose brand name is

widely recognised and respected as a global leader in this area.

We have expertise and experience in developing quantitative databases to track and gauge key industry metrics.

Frost & Sullivan is already producing regular data trackers across regions and has well established contacts and

processes that may be leveraged and replicated.

• Frost & Sullivan provides extensive research coverage of the European fixed and mobile industries.

• Through these syndicated research programmes, we already possess a large amount of the

information needed by the project.

• This also means that we are able to gather background industry information from in-house experts,

and that we would be able to leverage an existing network of contacts.

• Frost & Sullivan has expertise and experience in conducting benchmarking and best practice analysis

and in advising European telecom operators on the basis of those best practice examples.

• Frost & Sullivan is able to field a multi-national and multi-linguistic team of consultants and analysts

with extensive knowledge of the local markets and hands-on experience from working with many of

the operators included in the scope. We are also able to interact with most of the operators in their

local languages. Profiles of our key team members who contributed to this study are as follows:


Project Manager: Sharifah Amirah

Sharifah Amirah joined Frost & Sullivan in 2005 and is currently based in London. She leads Frost & Sullivan‟s EIA Telecoms research team. The team‟s focus is on identifying new service areas for industry players to maximize current investments. Her personal research interest includes mobility and convergence services, data retention and

environmental sustainability within telecoms.

Prior to joining Frost & Sullivan, Sharifah had gained 6 years of Telecoms corporate strategy and business

development experience in South East Asia. She has led business units within regional public listed

telecommunication companies, overseeing a spectrum of ICT products and services. Her strong financial background

is reflected through her involvement in numerous corporate exercises as well as participation in the Malaysian 3G Bid

and the market liberalisation process – providing input in the financial modelling of both. Sharifah has also had

hands-on operational telecoms experience, having been responsible for the pioneer launch of Broadband services in

Malaysia.

Her financial and operational experience in both the Asian and European Mobile & Fixed Telecoms sectors enables

her to provide strategic inputs into our client‟s business models as well as growth strategies. Some of the key clients

she interacts with include Nokia, LG, HTC, Sony Ericsson, CISCO and IBM, Telefonica-02, France Telecom and BT.

Sharifah also engages with our Financial Services clients e.g. Goldman Sachs, Barclays Capital and Legatum

particularly in discussing trends and opportunities in the Mobile sector.

Recent relevant project involvements:

Global Leading Mobile Network Operator: Led a project team to develop a country specific market entry strategy

for fixed enterprise services. This included a comprehensive competitive landscape of both fixed and mobile

operators as well as a 5 year market forecast for each country.

Global Mobile Solutions Vendor: Provided a comprehensive market overview and forecast. Analysed competitive

solutions and business models. Developed brief case studies of customer deployments in Europe, Africa and Asia.

Derived a go-to-market strategy for the vendor and its partners. Published a white paper to serve as marketing

collateral for the vendor.

Global Enterprise and Consumer Vendor: Reviewed the vendor‟s business model and estimated the market sizes for four key European markets. Analysed the distribution strategies and engaged with the vendor‟s channels to understand the competitive landscape at the distribution and customer level. The competitive analysis included

product feature, support and price comparisons. The project goal was to help the vendor improve its channel

management in each of the four countries.

Sharifah has over the past few months chaired and presented at various industry conferences in Europe and Asia,

within the Fixed-Mobile Convergence space covering topics such as Wireless Broadband, Mobility as well as Eco-

Telecoms. She has also recently co-published several research papers including Mobile Instant Messaging,

Environmental Sustainability within Telecoms, European Broadband markets and is currently overseeing a market

analysis of multi-play services across Europe. She has been quoted by various media houses including FT.Com and

Forbes.

Sharifah holds a Bachelors degree in Accounting and Finance (Hons) and a Masters degree in Gender and Social

Policy from the London School of Economics. She is also qualified as a Certified Internal Auditor (Institute of Internal

Auditors, IIA).


European Industry Analyst: Saverio Romeo

Saverio Romeo is a Research Analyst with the Frost & Sullivan Europe Information & Communication Technologies

Practice. He focuses on monitoring and analyzing emerging trends, technologies and market behavior in the mobile

and wireless communications in Western and Eastern Europe. He also studies the impact of EU regulation and

government technology policies on the mobile industry, and applications of mobile technologies in vertical markets.

Since joining Frost & Sullivan in March 2007, Saverio has completed the following studies: European Mobile

Communication Outlook, Mobile Virtual Network Operators: Emerging Players in the European Mobile Market,

Exploring The European Market of Mobile Smart Devices, Exploring the EU Research Policy in Pervasive and

Ubiquitous Computing and European Mobile Premium Content Market. As part of his research, Saverio interacts with

a long list of European and Global mobile service providers, application providers, vendors as well as the regulators.

He has also contributed as a mobile subject matter expert in consultancy projects with clients from both the mobile

industry as well as the financial services sector.

Recent relevant experience includes:

Financial Services Company : An assessment of mobile data tariffs in Sweden and Germany in order to

measure the implications of flat data tariffs. This also involved an analysis of mobile operator business

models and target segments.

Telecoms Regulator : An assessment of the content-rich mobile device eco-system in order to identify

growing areas in terms of revenues, technological trends, companies‟ strategies. The project was divided in three phases: assessment of the market size, assessing the main technological trends, and a competitive

analysis.

Prior to this, Saverio was a Research Consultant at Technopolis Group and Scientific Officer Assistant at DG

Information Society, European Commission. He brings with him a deep knowledge of Information Society policies at

European level with particular emphasis on future emerging technologies.

European Industry Analyst: Luke Thomas

Luke Thomas is Programme Manager with Frost & Sullivan‟s ICT Europe practice, specialising in wireless content and applications, and wireless broadband technologies over the past five years. His area of expertise include market

research and consulting on WiMAX, VoWLAN, 3G LTE, 4G, femtocells, UMA, IMS, mobile messaging, mobile multi-

media data applications, Fixed-Mobile Convergence (FMC), Unified Communications and Presence information in the

European market. His current research service is focussed on the impact of Mobile VoIP on the European mobile and

wireless industry.

Recent Publications Include:

• European Femtocells Markets- Not Quite There Yet February 2009

• European Mobile Broadband Markets: Melee between December 2008 3G LTE & Mobile WiMAX

• European Mobile Messaging Markets June 2008

Luke holds a Bachelor of Engineering in Computer Science, an MBA from the University of Wales (UK), and

certification in E-Marketing from the Chartered Institute of Marketing (CIM) in the UK.


European Industry Analyst: Yiru Zhong

Yiru Zhong is an analyst with Frost & Sullivan‟s ICT Europe practice, specialising in business models in the telecommunications, internet and media space. In particular, she has a global perspective of the mobile industry,

where her extensive insights of Asian markets complement her analysis from a European perspective.

Yiru is based in London, United Kingdom. She has four years of experience working in Europe and has a strong

understanding of newly emerging products and services in the telecoms/media space. She has strong interest in the

business strategies that mobile operators and non-traditional operators such as MVNOs, media and internet

companies have to adopt as the sector evolves. Prior to Frost & Sullivan, Yiru worked for Pyramid Research in

London, covering the telecommunications sector for Asia.

Some of the relevant expertise includes:

Understanding the to-market approach including partnerships with players in the eco-system, of two European mobile operators.

Uncovering OSS/BSS opportunities in a convergence environment

Viability of DVB-H services in Russia

Global MVNO market for conditions for profitable operators, investigating the service offerings, MNO host partnerships, pricing strategies and eco-system partnerships.

Offensive strategies to deploy new 3G services in a competitive and saturated market in order to reassert its market share.

Yiru has an MSc in Economics from the London School of Economics in UK. Her specialisation was in Competition

Economics within Industrial Organisation.

North American Industry Analyst: Brent Iadarola

As the Industry Director for Frost & Sullivan‟s Mobile Communications Group, Mr. Iadarola researches and analyzes

emerging, next generation wireless technologies & applications that enable the mobile Internet revolution. The scope

of his work deals with all aspects of the mobile value chain; from delivery infrastructure and communication

management, to end user content and applications. Mr. Iadarola has authored numerous syndicated reports and

articles in the areas of Location-based Services (LBS), Mobile Enterprise Applications, and Mobile Resource

Management (MRM) Markets. Mr. Iadarola has served as a Charter Member of Mobile Enterprise‟s Magazine‟s Editorial Advisory Board and has been a speaker at CTIA on such topics as Location-based Services.

Reports Authored:

Mobile Resource Management (US, 2004, 2005, 2006)

Location-based Services Markets (US 2002, 2003, 2004, 2005, 2006)

Next Generation Mobile Office (US, 2004)

Premium Downloadable Content & Applications (North America, 2003)

Next Generation Mobile Enterprise Markets (North America, 2002)

Next Generation Mobile Network Deployments (World, 2002)

Mobile Internet Access Markets (North America, 2001


APAC Industry Analyst: Marc Einstein

Marc Daniel Einstein is a Senior Industry Analyst with Frost & Sullivan‟s ICT Research team. Marc leads Frost & Sullivan‟s wireless research team in Asia Pacific and has particular experience covering topics such as WiMax, 3G

networks and applications, Low ARPU market strategies and mobile device trends. He is based in Frost & Sullivan‟s Singapore office.

Relevant Project Experience:

• Advised a prominent Malaysian operator on its wireless broadband strategy

• Expanded Frost & Sullivan‟s wireless market coverage to several new emerging markets such as Vietnam, Laos, Cambodia, Myanmar, Sri Lanka and Pakistan

• Led a workshop for a large Indonesian mobile operator focusing on wireless technologies and

applications suitable for sub-US$5 ARPU markets

• Profiled investment opportunities in the WiMax segment in 20 Asia Pacific markets for a Japanese

financial institution

• Forecasted wireless capital expenditures in 18 Asia Pacific markets by wireless technology for a

Chinese wireless equipment vendor

Marc graduated with both a Bachelor of Arts and a Bachelor of Science in Business Administration with

concentrations in Finance, Marketing and Spanish from Washington University in St. Louis and was a visiting student

at Rangsit University in Thailand. In addition to his native English, Marc speaks Spanish, French, Portuguese and

Thai and is a basic speaker of Japanese and Mandarin.

African Industry Analyst: Birgitta Cederstrom Nicholson

Birgitta Cederstrom Nicholson is a Programme Manager with the Frost & Sullivan Africa ICT Practice. She focuses

on monitoring and analyzing emerging trends, technologies and market dynamics in the Information Technology and

Telecommunication market in Africa and building relationships with stakeholders. She has over 18 years of ICT

experience internationally and locally in Africa.

Since joining Frost & Sullivan in January 2009, Cederstrom Nicholson is managing a study in Business Process

Optimization (BPO). Prior to this, Cederstrom Nicholson was a Managing Director at Corus Technologies

International and prior to that, Mrs. Cederstrom Nicholson has been sales director/ manager within ERP/BI and CRM

at Epicore, CS Holdings and Bytes Business Solutions.

She has been involved in implementations and advisory service to De Beers, Anglo Gold, National Treasury,

Vodacom, Cell C, Ericsson, CapeSpan, I&J, L‟ormarins, Haute Cabriere, Pep Clothing, Nestle, Melitta, Beiersdorf, Fromagerie Bell, and Molnlycke.

Her particular interest for 2009 is around BPO/Outsourcing, Network Security, Biometrics, Relationship Management

and Business Intelligence to make Growth. Birgitta currently is based in Cape Town, and speaks Swedish, English,

Norwegian, Danish, German, and French.

Birgitta holds a degree in Information Commerce and ICT from the University of Lund, Sweden and a Diploma in

Marketing from Nicolaiskolan, Sweden.


African Industry Analyst: Lindsey Mc Donald

Lindsey Mc Donald has been employed as an ICT analyst in Frost & Sullivan‟s African office since 2005. She joined Frost & Sullivan following a 4 year tenure as a market analyst with Factiva and MBendi.

Lindsey has delivered several syndicated and bespoke research projects across a number of different industries,

including over-the-counter pharmaceuticals in developing African countries, smart card technology adoption, fire

detection systems and mobile telecommunications. Her recent ICT projects include analyses of South Africa‟s IT infrastructure outsourcing markets, opportunities for open source software in South Africa and capital expenditure

trends amongst sub-Saharan African fixed line telecommunications service providers.

Her research experience has given her wide ranging exposure to many sub-Saharan African markets. She is an

accomplished interviewer and constantly in demand from African project teams.

Lindsey is an established expert in the local ICT sector and has presented papers at industry events such as the 2008

Broadband Summit, and Strategic Outsourcing for Telecoms Operators 2007. Her comments have also appeared in

media such as Engineering News, Business Day and Summit TV. Lindsey is based in Cape Town, and speaks

English, Afrikaans, and French.

Lindsey possesses an MA (International Relations) and a BA (Hons) from the University of Stellenbosch (South

Africa).

African Industry Analyst: Spiwe Chireka

Spiwe Chireka has worked in Frost & Sullivan‟s ICT practice since 2007. Her research has focused particularly on

developments in African markets outside of South Africa and contact centres.

Her most recent studies include analyses of the sub-Saharan African internet service provider market and the Kenyan

call centre market. She has also profiled the South African markets for contact centre equipment and collaborative

business tools. The African mobile telecommunications industry is one of her key research interests, including the

markets for mobile internet, handsets and mobile operating systems.

Spiwe worked in various positions during her studies, including in software development and support services for a

software firm in Cape Town. Her background and experience in IT and related subjects have provided her with a

thorough understanding of the industry.

As an expert on ICT-related issues in Africa, Spiwe has appeared as a regular commentator on CNBC Africa. Her

comments have also appeared in top publications such as Business Day and Computer Business Review. Spiwe

speaks English, Shona, and French, and is based in Cape Town.

Spiwe has gained the following qualifications:

BCom (Hons) (Information Systems) – University of Cape Town (South Africa)

BSc (Information Technology) – University of Cape Town (South Africa)

Post Grad Dip (Enterprise Management) - University of Cape Town (South Africa)


African Industry Analyst: Mpho Moyo

Mpho Moyo joined Frost & Sullivan in 2007 as an analyst in the Information and Communication Technologies (ICT)

sector. She is passionate about development on the African continent, particularly in the telecommunications sector.

Mpho has already gained extensive experience in the sub-Saharan African ICT market, having completed both

syndicated and bespoke studies on a range of subjects from CAPEX and OPEX trends across the continent‟s mobi le

markets to the potential for IP PBX in South Africa. She was also engaged on studies that looked at the broadband

markets in both West and East Africa. She is currently completing an analysis of the IT infrastructure outsourcing

market in Nigeria.

Before joining Frost & Sullivan, Mpho worked for the Zimbabwe Environmental Regional Organisation. She was part

of a project team that looked at how to institutionalise cross-border trading for developmental purposes. She also

focused on rural development projects.

Her appreciation of the dynamics particular to the African continent and its markets make Mpho a valuable member of

the Frost & Sullivan ICT team. Mpho is based in Cape Town, and speaks English, Shona, Ndebele, seTwsana, and

French.

Mpho holds a Masters as well as a Bachelors in Social Science in International Relations from the University of Cape

Town (South Africa).

Latin American Industry Analyst: Andrés Sciarrotta

Andres Sciarrotta joined Frost & Sullivan in January 2006, Andrés is responsible for the Mobile & Wireless

communication team in Latin America.

Andrés has vast experience on working on projects that provides insightful information on the market that create

growth opportunities. His work ranges from forecasting emerging markets, creating competitive profiles,

understanding the role of ICT in diverse industries, to consumer behavior, brand recognition and demand focus

analysis. Andrés has worked with clients in the ICT industry, mainly from the mobile & wireless market, but also

worked with the Satellite, broadband and retail markets.

Prior to this, Andrés worked as a researcher at the Argentinean Ministry of Economy and Production as well as

several ONGs focus on research. He brings with him an important research background. His research experience has

given him deep understanding of the Latin American market, but also of other markets around the globe. He is an

accomplished interviewer. Andrés is fluent in Spanish, English and Italian and has a conversational competence in

French.

Andrés has become an authority for the mobile and wireless market in Latin America and has been quoted in top

medias in Argentina, Brazil, Chile, Colombia, Peru, Mexico and Uruguay.

Andrés holds a BSc in Political Science and Government from UTDT university in Argentina and a Master in

International Relations from the Università di Bologna. Andrés has lived in Bologna, London, Paris and currently he is

based at his home town Buenos Aires, Argentina.


Senior Consultant - Europe: Jon Kr Stephansen

As a Senior Consultant in Frost & Sullivan‟s ICT Practice in EIA, Jon is responsible for leading and delivering Growth Consulting projects for multiple clients. Additionally, Jon is proactively developing new and nurturing and managing

existing client relationships. Jon has worked on a diverse range of consulting assignments ranging from business plan

development, financial projections, go-to-market strategies, market sizing, sales optimisation, competitive analysis,

partner and channel strategy, etc. Some of his key clients include Deutsche Telekom, Panasonic, IBM, Motorola and

BT.

Prior to joining Frost & Sullivan, Jon founded and led a Canadian based company specialised in wireless alert

solutions and mobile content. He has extensive experience as a management consultant, working out of Norway and

Germany, and as a project manager and business analyst for a software house.

Jon holds an MSc in Business from the Norwegian School of Economics and Business Administration. He is fluent in

English, German and Norwegian, has a working knowledge of Swedish and Danish and a basic understanding of

French. Jon has living and working experience from the Nordic countries, Singapore, Germany, South Africa, South

Korea, USA, Canada and he is currently based in London, UK.

Senior Consultant – APAC: Calvin Lee

Calvin Lee is a Senior Consultant of Frost & Sullivan‟s ICT Consulting Practice team. His expertise lies in strategic consulting projects for service providers and telecommunications equipment vendors, as well as various public sector

ICT governing bodies and regulators in the APAC region.

Relevant Project Experience:

• Recommended wholesale products business orientation to a local telecommunication operator

• Developed Customer Needs Management strategies to a China telecommunication vendor

• Participated in IPO drafting for a local telecom service provider

• Identified market opportunities in fixed line value added services to a China telecommunication

vendor

• Conducted market survey and recommended strategy in directory enquiries service to a local telecom

service provider

• Assessed the telecommunications service opportunities in the Indo-China markets to a leading

Korean telecom service provider

Before joining Frost & Sullivan, Calvin Lee was working with the Maxis Communications as an engineer for Mobile

Planning Department. Prior to that he was a graduate trainee to the same company . He has an MPhil from the

reputed University of Cambridge.

VOIP Subject Matter Expert: Elka Popova

Elka Popova is an Industry Manager with the Frost & Sullivan North American Information & Communication

Technologies Practice. She focuses on monitoring and analyzing emerging trends, technologies and market behavior

in the enterprise solution and carrier infrastructure markets in North America and globally.

Since joining Frost & Sullivan in May 2000, Elka Popova has completed several research studies and consulting

projects on VoIP residential, business and wholesale services, enterprise unified messaging platforms, carrier

enhanced messaging platforms, speech technologies and enterprise telephony equipment services.

Prior to this, Popova was a Market Intelligence Analyst at Visitalk.co. She brings with her in-depth understanding of

VoIP, network convergence and advanced applications.

Elka Popova has received acclaim for her research through articles and quotes published in the San Francisco

Chronicle, Speech Technology Magazine, Software Magazine and Enterprise VoIP Planet.

Documents

New Patterns in Global Mobile Telephonyworldtel.mobi/media/prod_s3_pub/upload/new... · New Patterns in Global Mobile Telephony A Comparative Review of Webtel.mobi and Growth in the