NEXT GENERATION DEVICES

Jim Conti, Vice President

DigitWireless

• “The market for stand alone handhelds is stagnant, but the market for telephony-enabled devices is increasing rapidly”

• Alex Slawsby, Research Analyst, IDC

• RCR, 3/31/2003

Sneakerphone

New category, appealing to youth market and more casual business attire

Largest color screen of any converged device

Choice of left or right shoe models

Auxilary battery option in opposite shoe

PDASet Top BoxWeb Pad

Games Console

WID

MessagingContacts

Agenda

Secure personal data

Fax

Corporate data

Internet

WAP Phone

Universal Internet Access

Work PC

Home PC

Why are the Devices important

406 Million handsets in 2002 446 Million projected by end of 2003 43% of handset sales=new subscribers in 2002 Terminals are the gateways to services and

applications Terminal functionality is increasing Ease of use=USE Mobile Applications (HDTV)

Device Categories

Basic PhoneEnhanced Phone

RIM client Blackberry*, AIMSmart phone

Microsoft Smart phone OS*Clamshell type PDA

Handspring TreoTablet PDA

Basic phone:-51%Enhanced: 22%Smart phone: 189%Clamshell PDA: 134%Tablet PDA: 156%

050,000

100,000150,000200,000250,000300,000350,000400,000450,000

2003 2005

Basic PhoneEnhanced PhoneSmart phonesClamshell PDATablet PDASource:Gartner Dataquest, January 2003

Market Drivers

• The Wireless Carrier: Mobile data and contentGaming, news and information, m-commerceEnterprise Applications Youth focus and adoptionIncreased advertising (American Idol)2.5G/3G networks are launching

Messaging, USA/Europe, SMS. MMS, IM1 Billion SMS messages per month (GSM Association)

Mobile email (carrying 2 devices)RIM Blackberry/Treo success

Market Drivers

Falling Handset Prices Market penetration and falling voice revenues Data speeds are coming up Competition and number portability Device availability and options Content providers New and innovative ODM’s Portal providers

SMS.ac, UPOC, Fox TV, Club Nokia

Market Resistance

• The Wireless CarriersWireless coverage/voice and dataCarrier rollouts/Market License

Technology of networks (GSM/CDMA)Education

Consumer and Point of SaleMobile experience versus “PC”Lack of content and the “killer application”Lack of devices to support network and contentConfusing and non-competitive Pricing models

Market Resistance

• The Handsets and DevicesLack of processing powerScreen sizeNetwork compatibility issues (within

carrier)GSM vs. CDMA (some Analog)Size“2 devices”, one for voice and one for dataUser Interface*

Market Resistance

• User Interfaces for Mobile Data Input**Triple TappingPredictive Software:Tegic T9, iTap, ZiStylus basedHandwriting RecognitionVoice RecognitionKeyboards (“PC like”)

Accessories: Folding, chatboard, etc.QWERTY, universal?

NEXT GENERATION DEVICES

What’s new?

• Research In Motion– Blackberry 6210

– Mobile email

– GSM/GPRS

– Voice (speaker and mic)

– Full QWERTY

– Web applications

– No pricing

•PC E-Phone

•10 ounces with a 640x480 display on a 4" LCD touch-sensitive screen.

•Cost $1,500 to $2,000 range initially but expects prices to fall to around $1,200.

• Kyocera 7135– Clamshell PDA

– CDMA only

– Palm OS

– Wireless email

– Surf the web

– MP3 player

– $699 (no service)

• Panasonic GD**– Prototype*

– Ti OMAP

– Fastap keypad

– Camera

– Messaging

– Data Capable

– No price published

• Wildseed– Kyocera “Kurv”

– “Smart skins”

– MP3 player

– Airtext messaging

– Camera

– Internet browser

– No pricing

• Orange SPV Smart phone– MSFT Smart phone OS

– Ti OMAP

– GSM only

– Color screen

– T9 predictive text

– MSN capable

• Palm Tungsten– Palm OS

– Ti OMAP

– Voice and Data

– Color Screen

– Graffiti

– Full keyboard

– $549

• Handspring Treo– CDMA/GSM

– Palm OS

– Web browsing

– Full QWERTY

– Color screen

– Email and Organizer

– $299-$399

“We absolutely see this as where the market is going”-Joe Sipher, VP of Marketing

• Tablet PC– Notebook evolution

– Pen based text

– Slate or Convertible designs

– Windows XP

– No voice capability

– $1600-$3000

MOBILE FUTURES

MOBILE FUTURES

Thank You

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