mmCHANNEL - Cultural Diversity Concept Summary

May you require more information, please refer to : Cristobal Alonso

Headquarters/Southern Europe/Latam +34 607 271 961 Middle East +971 566457144

[email protected]

Marc Ian Rose Chief Commercial Officer Madrid + 34 659 269 142 Dubai +971 50 451 1829

[email protected]

“Building Through Interaction”

Digital Entertainment Solutions & Services - Cultural Diversity Concept

May 2009

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Due to market trends and consumer demands, service providers are attempting to find more innovative, multi-access channels to stimulate data take-up and to provide rich broadband and mobile content services to satisfy customers’ appetite for compelling experiences

However, a more encompassing solution that can radically approach the market, draw consumer attention by leveraging Social Media values and engagement models, best practice service relevancy and Consumer Interaction features is also needed in the long-run in order for a service provider to meet its strategic VAS goals and offset both direct and indirect competition

As well, the potential exist in many markets to target and focus the rising and specific Digital Entertainment needs of ethnic groups that exist within a particular customer base

These unique consumers demand more extended media asset offerings, tools and services that allow them to blend their entertainment experience with the culture of their location, as well as the culture of their tradition

Therefore, this Concept Brief intends to explain mmCHANNEL’s Cultural Diversity focus and present a viable service offering via a phased implementation approach

Executive Summary.

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Market Opportunity

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The International Organization for Migration has estimated the number of foreign migrants to be over 200 million worldwide today

The Middle East, some parts of Europe, small areas of South East Asia, and a few spots in the West Indies have the highest percentages of immigrant population recorded by the UN Census 2005 (in blue)

Europe hosted the largest number of immigrants, with 70.6 million people in 2005, the latest year for which figures are available

A substantial movement of people within the European Union occurs in strong patterns from former industrialized areas in Western EU and from poorer eastern countries of the EU to the richer countries of the western EU

As well, Africans continue to move out of the Northern and Central States to Spain and the southern nations of the African continent in steady fashion

NOTE: Blue represents migration in; orange represent migration out; green indicates no major shifts in migration patterns or demographics.

Significant opportunities exist in European and African markets where migrant workers have established a growing presence … and demand for VAS services.

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Specifically, Arab, African, Indian and Chinese consumers make up a large part of the customer base, lending to desires for their cultural, as well as local, content.

Most of Europe’s Muslims immigrated after 1945 or are the children or grandchildren of post-World War II immigrants.

Indians, in search of new opportunities and fierce local competition, are reestablishing with a tremendous presence in Europe and the Middle East

Within the Rainbow Nation demography, South Africa has an uncommon profile, marked by a heterogeneous population base, social policies brought on by the legacy of apartheid, diversity within ethnic groups and emigration

Historically, Chinese laborers have always migrated the globe; however, current trends show increase concentrations in Europe and the Middle East today

Immigrants when leaving their country also leave everything familiar: their family, friends, support network, and culture.

Therefore, a need and desire to maintain their traditions, languages, music, art and entertainment is paramount, in balance with the process of local socialization

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mmCHANNEL’s Approach to VAS

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mmCHANNEL enables an innovative vision that spans the world of media and digital entertainment, offering compelling user experiences, tools and services.

Music . All formats

Games

Video

Info-tainment

Images Marketing Messages

Events

Subscriptions

Recommend

Advertise Communities

UGC

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Our current portfolio of services ranges from digital content distribution to sophisticated content ingestion, service delivery and marketing support . . .

Scope of our service offering

mmPLAY Multimedia platform integrating leading technologies and content to provide a compelling mobile & on-line digital media experience

mmINTERACT Focused Community solution enabled by Widgets and UGC tools and services while leveraging Social Media marketing models

mmGAMING mmGAMING is a leading mobile gaming platform that manages Premium Games, Incentivized and Advergaming media asset and

solutions

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Perc

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1) Incentivized Game: methods like “Try before you buy, time or usage limited, other models”

+

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Community Concepts

… incorporating innovative and flexible features that maximize the life-cycle value of the digital entertainment media asset with attractive user options …

“Advergaming”

Incentivized Game

Premium Game

Months n 4 3 2 1 8 7 6 5

Deployment Rollout of features and distinct revenue options

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… culminating into a relevant Mobile Community that calls attention, stimulates consumer interaction, drives traffic, fosters loyalty and generates revenues…

Upload Management View Edition Promotion

• A mobile with video recording or a video recorder is all that is needed: just point, record and upload video clips from the mobile or a PC

• Once registered, users can post comments and rate videos while a resident talent scout provides ongoing commentary about the progress and performance of the submitted entries.

• The finalists are selected based on votes from users, Pop Idol´s judging panel and resident talent scouts

• There are monthly winners, a big year winner and different gigs around the country with a highly publicized finale

Case Study: Pop

Idol Services: for Local

Music

Content types (picture, audio, video)

Info of the files

Upload methods (MMS, Mobile Application, PC)

Classify per category

Tag the contents

Filtering the different content types

Streaming

Download

Subscribe

Content by tops

Conten of your friends

Share the content

Rate the content

Add to playlist

Set privacy settings

Prizes for top uploaders

Special features for most active users

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The technical feasibility of deploying a mobile content delivery platform (MCDP) depends directly on feasibility of the integration links

There will typically be two models of integration depending on the ownership degree:

• mmPlay is deployed and integrated with the necessary enabling platforms

• mmPlay is deployed through integration with the host operator Premium VAS services (SMS Premium, WAP Premium, remote payment if available, etc)

… all supported by a state of the art hosted service architecture, platform, channels and Content Management System that understands MVNO demands.

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Value Proposition

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Content acquisition & service

management

Advanced mobile & online front ends

Marketing and advisory services

Digital entertainment

service delivery solution

“The Technology”

“The WOW and usability factor”

“The back end and everyday work”

“The evolution and revenue enhancer”

In mmCHANNEL, we continue to focus on promoting all type of new initiatives and products with an end2end orientation towards our customers…

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In terms of Interactive Channels, the user experience begins with a simple and straightforward WAP Portal made available to consumers’ mobile handsets ...

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… and is complimented with a more elaborate Web Multimedia Portal, that fosters Content and Community components for subscribers and non-subscribers …

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Enhance brand awareness and market differentiation

Drive WAP penetration, traffic and stimulate customer acquisitions

Provide relevant digital entertainment content across different media types and evolving segments

Generate additional revenue streams, including innovative payment methods and advertising revenues

Provide compelling customer experiences across interactive channels and platforms

Manage the complexity, thus reducing the cost

mmCHANNEL is able to successfully launch and operate services via a multi-country approach

… providing a differentiated service and value proposition to the market.

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Content for Diverse Cultures

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In terms of Cultural Diversity, our Media Asset leverages international & regional Digital Content agreements with Arabs, Africans, Indians & the Chinese in mind …

AMC delivers a compelling content experience with leading Arab Music Artists and Games to mobile users; from Rap, Pop, Tarab, Electro and Folklore New Age.

Content Connect Africa provides content designed to reflect the cultural values of new media users in Africa. From international top40 dance hits to up and coming local talent.

Hungama provides the “ABCs” of Indian content, the most sought after music, games, trivia, wallpapers, and deep content from Bollywood and the globe.

JP Games helps Chinese companies find distribution in foreign markets. Leveraging the billion-dollar industry of high quality mobile content.

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… as well as the entire media asset catalogue from mmCHANNEL that brings the top Record Labels, Independents, Digital Games and ‘Infotainment’ providers …

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… offering the finest global, independent and national musical lineups …

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… and the most sought after mobile games for Premium, ‘Incentivized’ and Advergaming possibilities.

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OtherConsiderations

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Most MVNOs have targeted propositions and focus only on select segments

The usage of the WEB channel within these segments is usually heavier than MNOs’ customer base

There is no cannibalization fear and there are new business models to exploit

Mobile advertising, advercontent, UGC applications and ethnic content can be monetized

Therefore, Cultural Diversity approaches should focus on the following Critical Success Factors:

• Drive Brand Awareness through a Multi-media approach, keeping in mind the customer’s perspective

• Encourage User Involvement with the right content, tools and services

• Generate additional Revenue Streams through creative payment methods and inventory rotation

• Develop a compelling ‘Community Experience’ based on a keen understanding of the targeted segments

• Embrace the values of Social Media for the Focused Community; Attention, Relevancy, Trust, Interaction

• And most importantly, the Media Asset needs to PUSHED!

The business practice of most telcos is to play into existing hierarchical social structures; however, focused approaches targeted to ethnic segments are viable.

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While many service provider brands only emphasis low cost pricing, there are good examples of MVNOs who promote attractive, clear and targeted VAS offers.

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Simyo hit the market differently – getting the right price but complemented with an attractive and simple mobile internet offer (both access and multimedia).

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More opportunities arise as MVNOs use the WEB channel as a powerful distribution channel, enabling Web2Mobile propositions (non-clients included)…

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…opening the door for advertising experiences: fun, simple, attractive and interesting both from the consumer point of view and potential Ad Clients.

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Ad possibilities.

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MoVidi enables users of multimedia phones to post and watch video clips without the need to install special software or tools

The service runs on a wide range of mobile phones, from older lower-end phones such as the NOKIA6230i to modern high-end devices such as the Sony Ericsson K850i

A “Best Of The Day” and a “Last Uploaded” section on the start-page guarantees entertainment from the first click, making the user a part of the MoVidi community instantly

The results have been their ability to generate stickiness and a sense of community; this fosters trust, loyalty and attention

Upload Management View Edition Promotion

In terms of Community Experiences, UGC applications, tools and services supported by targeted campaigns can give an MVNO an edge hard to match.

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Next Steps

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Receive feedback from this presentation and its content

Understand clearly the strategic focus of existing Value Added Services approach

Understand clearly the perception and potential for launching a Cultural Diversity concept, defining the scope and approach for additional Digital Entertainment phases

Receive more clarification of any pending questions and assumption of roles over the value chain

Finalize the Cultural Diversity service offer

Next steps ….

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“Building Through Interaction”