May 2009 - Online Newsletter

Beyond Voice - Future of Mobile VAS • Weathering the Storm • LBS-based Mobile Marketing • New Opportunities in the SDP Market • Innovation Drive • Personalized Call Management More »

In This Issue Executive Message Weathering the Storm

03

LBS-based Mobile Marketing

05

Industy Outlook New Opportunities in the SDP Market

07

Innovation Drive

09

Mobile Marketing: Donning a New Hat

11

Product Focus Personalized Call Management

15

Leveraging SMS to Attract Additional Data and Voice ARPU

19

Events 6th Annual Media And Telecommunications Convergence Conference 2009

22

Mobile VAS Forum 2009

23

West & Central AfricaCom 2009

24

VAS Asia 2009

25

AfricaCom 2009

26

GSM>3G Middle East 2009

27

Press Releases Telenity and Datatronics Expand Partnership to Latin America

28

Telenity and Life:) Sign a Four Year Frame Agreement

29

Eagle Mobile Selects Telenity’s Advanced Messaging Applications

30

Telenity Appoints Yogesh S. Bijlani as VP Sales APAC

31

Contact Us Corporate Headquarters

EMEA Headquarters

APAC Headquarters

Telenity Incorporated 755 Main Street, Building 7 Monroe, CT 06468 USA Phone: +1 203 445 2000 Fax: +1 203 268 1860

AHL Serbest Bolgesi, No. 472 Yesilkoy, Istanbul, Turkey Phone: +90 212 468 2100 Fax: +90 212 465 0910

509, 5th Floor, World Trade Centre, Babar Road, Connaught Place, New Delhi – 110001, India Phone: +91 11 4152 6886 Fax: +91 11 4152 6887

www.telenity.com For more information on Telenity and its products please contact [email protected] Telenity and Canvas are registered trademarks of Telenity

Executive Message

Weathering the Storm By Gurol Akman, CTO, Telenity, Inc. There is no doubt we are going through one of the worst global economic downturns. For quite some time now, we have been witnessing a large number of companies steadily trying to reduce cost/expenses as well as re-structure/strategize in an effort to cope with the adverse changes taking place. Many credible sources predict that the current economic and market adversities are here to stay for an extended period, well into 2010.

agreements currently in place. Also, there is no better time to pay closer attention to enhancement requests filed by our customers, as each one of these requests carry the potential of generating new purchase orders. While much of the credit in the above fronts goes to our dedicated employees, our brand new issue tracking and knowledge management system (KMS) plays an integral role in coordinating their efforts and optimizing our internal/external support systems. Investing into a state-of-the-art KMS was a choice on the side of the executive leadership of the company whereas making it work in record time was a result of our talented staff. As of this writing, there is hardly any doubt in our minds that this investment will go a long way in ensuring increased customer satisfaction and loyalty.

These unfavorable conditions seem to present unique challenges and opportunities for the executive leadership/management teams as well as employees of all businesses and Telenity is no exception to this. The mainstream challenge is being what specific measures should be taken to weather this storm with the least amount of damage when one cannot even predict how long it will Another highly effective measure last. A more aggressive challenge involves cost effective and efficient Gurol Akman, CTO involves whether and how a delivery of our products/solutions company can emerge stronger from to our customers. Some of the We thrive on the complex this storm. Commonly known rememajor recent initiatives we put in dies include cost control, cost world of our customers to place on this front include better reduction, increased productivity prioritization of our customer build the simplest products. and efficiency. While these measneeds (facilitated via business and ures may be quite effective and technology consultancy services), necessary, they are likely to fall short of addressing all staged delivery of product releases to site (employing the above needs; hence, necessitate additional agile development methodologies), exhaustive testing (custom-tailored) ones. Also, the way a particular and validation of products in our labs (using automated measure gets applied may make a huge difference in its test frameworks), and advanced training of our local effectiveness. partners (by our subject matter experts) for more effective and timely product delivery and postIn our opinion, one key measure involves striving for installation support. increased customer satisfaction and nurturing of existing customer relations during these times. This includes providing them with premium support services, regardless of the severity of the trouble tickets or other queries issued by them and/or the service level

May 2009 / 03 Copyright © Telenity, Inc. 2006-2009

Executive Message

Weathering the Storm By Gurol Akman, CTO, Telenity, Inc. Speaking of cost-effectiveness, there is no better time for us to take a harder look at all third-party hardware/software costs incurred and try to squeeze every bit of performance out of them in an attempt to optimize our overall CoGS. Similarly, comprehensive benchmarking and performance optimization of company products/technology are likely to pay off dearly. For the past six months or so, we have been spending a good chunk of our time and resources in measuring, analyzing, and finetuning all third-party components that we rely upon. We further have been working diligently to create cost-effective alternatives to avoid potential vendor lock-in. As stated earlier, while sound measures like the ones mentioned above may prove to be sufficient for survival, they may fall short of ensuring that we emerge from these difficult times as a clear winner. That is because growth in business requires a never-ending quest for new business models whereas growth in technology requires constant investment in R&D. Let me be the first one to hint you that despite all the bad weather we continue to invest in both areas by evaluating applicability of latest business models (such as revenue sharing, managed services, SaaS) to our business and expanding our canvas family of products (in messaging, SDP, VAS, and LBS domains) for further competitive differentiation. Stay tuned for more news… To sum it all up, our core strategy for these tough times relies on trying harder to improve our current ways of doing business by delivering higher quality products and supporting them at premium levels, and continuing to raise the technology bar for ourselves and our partners. Our next wave of growth largely depends on our ongoing exploration and experimentation with emerging business models and continued investment in new product design.

May 2009 / 04 Copyright © Telenity, Inc. 2006-2009

Executive Message

LBS-based Mobile Marketing An Interview with Yogesh Bijlani, VP APAC Sales, Telenity, Inc. India is a booming mobile market with over 15 million subscribers being added every month and the current mobile density almost touching 40%. With the current slow down impacting all spheres, the advertising industry is looking very closely at the ubiquitous mobile screen that offers it both addressability and personalization. Even though it is still in a nascent stage in India, its potential is well understood. Telenity Inc. being a market leader in Location Based Services and driving the solution development of Location Based Marketing and Advertising is at the fore front in addressing some of the unique needs of the India market. Below is an interaction of Yogesh S. Bijlani, Vice President Sales, Asia Pacific at Telenity with a leading telecommunications publication in India.

on this by delivering advertisements to the subscriber of their interest, at a time convenient to him and possibly at the relevant location. The key growth drivers enabling this service are first a viable business model that allows subscribers to receive relevant marketing information for free. (As of today, the whole mobile service is a paid model where you have to first pay and then receive the service.) Secondly, simplicity across all handsets in the bearers that the subscribers are comfortable with. Yogesh Bijlani, VP This means for the bulk of the users, APAC Sales the service should be enabled on voice, SMS and USSD that work on We constantly listen to our all handsets. For the high end users, customers to provide them it is enabled as MMS, WAP links and Video. The third key driver is a with right solutions for their mechanism that enables the opergrowth. ator to easily capture the usage behavior of the co-opted subscribers and share it with the adverYou have been very closely tisement owners. Successful services like free involved in the evolution of Value Added Services subscription alerts provided by My Today or free CRBT and its success in India. What have been the clear with Ad content being used by millions of customers Mega trends and the reasons for their success? are examples that highlight the above mentioned The two mega trends of VAS in India in the last few years growth drivers. are Caller Ring Back Tones and Infotainment Subscriptions with the former having crossed the 20% Could you elucidate on the various forms of mobile penetration mark and the latter slowly inching towards marketing? What are the some of the global trends the same penetration. The reasons for success are the specifically in US/UK/Japan? same that makes us so optimistic about the success of mobile marketing in India – the vibrant music and Though various forms of mobile marketing have been infotainment culture that is so visible across all media of introduced in different markets, we observe a universal radio, television, movies, on the net and now the trend in all countries where the service has been mobile. successful and it is all linked to FREE. Telenity recently did a study of Mobile Marketing in 11 Countries and the result was as follows: How do you see the Mobile Marketing concept in India? What according to you are the key growth ? 88% of surveyors were willing to receive mdrivers? coupons for free Mobile Marketing as a concept is very relevant to India ? 86% liked advertising if it enabled them to keep as it enables subscribers to get information that is service cost down relevant to them, possibly at the right time, the right ? 51% were willing to receive push advertising of location and for FREE. For the mobile operators and preferred categories advertisement owners, it is an opportunity to capitalize

May 2009 / 05 Copyright © Telenity, Inc. 2006-2009

Executive Message

LBS-based Mobile Marketing An Interview with Yogesh Bijlani, VP APAC Sales, Telenity, Inc. In western world, the concept of Bluetooth Marketing has gained immense heights. How do you see its relevance in India? Viral marketing has been successful in India but limitations of Bluetooth as a technology and issues of spamming will result in limited success. What are new technologies in mobile marketing space? What are the various challenges associated with it? Telenity sees the emergence of USSD as a very relevant and popular technology for mobile marketing. It has various features and functionality that make it very relevant for mobile marketing. ? It works on all GSM handsets ? It is unobtrusive and appears as a flash on the mobile screen ? It has a browser with a menu and sub trees USSD services like subscription alerts, prepaid recharge services are already being offered by all the operators in India and browsing on USSD is enabled for free. Telenity being a dominant solution provider for the USSD portfolio is seeing a lot of demand from the Indian subcontinent. Location Based Advertising is another very relevant technology in this space as it enables reaching the right customer, at the right time and location. This is a push service that is event driven where the user receives a notification (IVR, SMS, USSD, MMS) based on his preference, location or movement. For example, a person who has chosen “restaurants” as his interest area for mobile advertisements will receive a mobile coupon alert giving him discount information as he passes near a Mc Donald’s outlet. For some consumers, Mobile Marketing is a breach of privacy. What are your views and what needs to be done to ensure the privacy of consumers? The fundamental basis of Mobile Marketing is that the service is offered only to those subscribers that have opted for it. Within that segment it should also work only when you receive advertisements of products that you have an interest in and have chosen the same. In the case of Telenity’s Location Based Mobile Advertisement Platform, customers opt on a USSD browser to receive ads from options like Movies, Restaurants, Apparel, Food Items, Household Items or All of the above. Depending on their chosen option, they receive push alerts when they are in the vicinity of commercial shops or Malls as IVR, SMS on entry level handsets and MMS and Video on high end handsets.

May 2009 / 06 Copyright © Telenity, Inc. 2006-2009

What role does VAS services play in accelerating the Mobile Marketing space in India? How are these two interrelated? VAS and Mobile Marketing are interrelated. VAS in India is defined as all services besides peer to peer voice calls that the subscribers are willing to pay for. This includes P2P SMS and all kinds of infotainment and entertainment services. Mobile Marketing on the other hand is any sponsored infotainment or entertainment service that the subscriber can receive for free and is paid by the enterprise for his target audience. What are your initiatives in this space? As mentioned, Telenity is a global leader in Location Based Mobile Advertising and technologies like USSD that are very relevant in the Mobile Marketing space. We have already deployed the service with BSNL and would be launching similar services with a couple of private operators in the next few months. The main functionality of this service is that it automatically broadcasts advertisement, promotion information, etc. via SMS/USSD messages to subscribers of their preferred category when they travel within a defined commercial region. As the service is free and the information is received via SMS/USSD it is accessible to the operator’s complete subscriber base. What are your future projections for India market? Do you see any issues for operators/marketers? We all know that India is a prepaid mobile market where at any given time one third of the mobile subscriber base is sitting on a balance of sub Rs. 10. But even this 100 million base wants to consume infotainment, wants to engage with the mobile screen, wants to choose preferred categories, receive alerts but for FREE. The issue is to enable an ecosystem that is viable for all the partners in the value chain. Yogesh Bijlani is a seasoned telecom executive with over 18 years of business and technical expertise including regional management, sales and marketing of telecom network solutions in India and throughout South Asia. Having a mix of strategic insight, analytical mindset and a strong technical background, Yogesh Bijlani has an acute understanding of the market needs for new services and technology deployments and has been actively involved in the convergence of entertainment and Internet on the mobile. Having joined Telenity in 2009, Yogesh leads the business development and sales operations activity for Location, Messaging, Value Added Services (VAS) and Service Delivery (SDP) solutions in the Asia Pacific region.

Industy Outlook

New Opportunities in the SDP Market Kristofer Kimbler, The Moriana Group

SDP Market 2009-2012

Drivers for SDP Market Growth

The Service Delivery Platform (SDP) market has enjoyed substantial growth, from just $0.1 billion in 2002 to nearly $1 billion in 2008. In the recently published Analyst Report, SDP Market 2009-2012 Moriana (www.morianagroup.com) forecasts that, despite the current economic downturn, this market segment will steadily grow year-by-year and will exceed $3 billion in 2012, as the result of increasing mobile saturation in the emerging markets and growing penetration of broadband access services in the mature markets.

There are several factors that will drive the growth of Service Delivery Platform market in the coming years. Communication Service Providers (CSPs) will require more openness, extendibility and flexibility from such service platforms to quickly boost their service delivery capabilities and will be more alert in avoiding vendor lock-ins. This will also drive adoption of SDP for new classes of services including VoIP, IMS and NGN rich communications, IPTV, VoD, mobile commerce, mobile banking, mobile payment, mobile advertising, as well as convergent and real-time charging.

Not surprisingly, the SDP market segment has attracted all leading Network Equipment Providers, System Integrators and IT infrastructure suppliers as well as innovative Independent Software Vendors (ISVs) and Application Providers. Due to strategic importance of SDP investments, large Telecom and IT suppliers consider this relatively small market segment as key to their business, because it is ‘added value’ driving the sales of their core offerings. This is also becoming apparent for relatively new SDP players such as Huawei.

However, the most important SDP market growth is expected to be in the emerging markets. The global number of mobile subscribers will increase from 3.3 billion in the beginning of 2008 to over 5 billion in 20112012. This will mainly come from markets such APAC, LATAM and MEA. Due to the increasing saturation, Mobile Network Operators (MNOs) in these markets will no longer enjoy rapid revenue growth from expanding subscriber base. They will have to find new ways of increasing ARPU through attractive service bundling, mobile content and advertising and advanced services to their prepaid customer base.

Even after the intense period of merger and acquisitions, including those happening among leading Network Equipment Providers (Alcatel-Lucent, NokiaSiemens Networks) and Enterprise IT suppliers (OracleBEA-Sun), there is still healthy and intense competition in the SDP market. The recent Moriana market research has shown that there were over 300 SDP deployments by the end of 2008. Several innovative ISVs, such as Telenity successfully compete in this market by using their unique capabilities and differentiators and by focusing on specific markets and applications.

May 2009 / 07 Copyright © Telenity, Inc. 2006-2009

Industy Outlook

New Opportunities in the SDP Market Kristofer Kimbler, The Moriana Group

New SDP Opportunities in the Emerging Markets Mobile content and messaging services, mobile commerce and money transfer, mobile advertising and real-time charging will be main classes of SDP applications in the emerging markets. Mobile Network Operators (MNOs) will also look for cost-efficient alternatives to traditional IN-based solutions for voice services including both Next Gen IN and VoIP platforms. There will be substantial growth from data services over mobile networks because in many places in Asia, Africa or Latin America wireless is, and for many years to come will be, the only access to Internet.

Kristofer Kimbler Executive Editor

According to the Moriana forecast, APAC will be the single biggest contributor accounting to nearly 50% of all SDP investments in 2012. Africa and Latin America are other geographical areas where the SDP market is poised to grow. For example, once the basic mobile voice service gets deployed, there will be demand for personalized content services (prayer time alerts, horoscope, etc.) and content download. Real-time charging, advertising, content downloads and mobile wallet-type services will have also significant impact on the SDP market growth in these regions.

May 2009 / 08 Copyright © Telenity, Inc. 2006-2009

For ISVs like Telenity, there is a great potential in providing a standard-based, pre-integrated SDP with set of ready-todeploy services to Tier 2/3 MNOs in the emerging markets. These types of prepackaged SDPs can both simplify the deployment and cut the CAPEX and OPEX costs for these MNOs. This concept will be obviously most attractive in the areas of value -added voice and messaging services, mobile content and real-time charging. However, the flexibility of SDP platforms will certainly allow agile vendors to provide many new attractive offerings in the areas of location-based services, mobile advertising or multimedia.

Industy Outlook

Innovation Drive George Bevir, Deputy Editor, CommsMEA With operators facing ever tougher competition and falling ARPU, Serif Beykoz, Telenity's general manager for Europe, Middle East and Africa, tells CommsMEA how operators can boost revenues by offering next generation services. COMMSMEA: HOW DID TELENITY DEVELOP AS A COMPANY, AND HOW IS THE COMPANY DEVELOPING IN THE REGION? Serif Beykoz: Telenity was established in 2001 in the US, and after that it came to Turkey and acquired a company called Telsoft. Telenity invested in Telsoft and enlarged the engineering team and devised a new roadmap for value added service platforms and applications.

Serif Beykoz, GM, Telenity EMEA

We are one of the ten biggest SDP companies in the world. We have contributed a lot to one of the largest Turkish operators, for whom we provided the main part of their SDP two years ago and it is running very well. Since then, we have enhanced our solution and made a slight improvement to our SDP. We have provided SDP solutions to Nawras with a tier two solution. We have provided similar SDP solutions for tier two and tier three operators, and we can also contribute a lot to tier one solutions.

Since then, over the last six or seven We stay committed to the years, we have been generating and success of your business. producing our own platforms servAll our solutions are based on the ing wireline and wireless operators “Canvas®” platform. Canvas provides 60% of the and we are developing VAS applications and platforms functionality of applications, including distribution, for them. We have four main offices, with headquarters fault management, statistics, error handling and in the US, and offices in Turkey, India and Dubai. We database management. So whenever you want to have several enlargements planned, the first one of create a new application, you don’t have to worry which is in the United Arab Emirates. We have opened a redeveloping these functionalities. Dubai office to serve the area better; we have several operations in the region and supporting them from the Dubai office will be much easier and faster. COMMSMEA: IN WHICH OTHER COUNTRIES CAN TELENITY PRODUCTS AND SERVICES BE FOUND? Serif Beykoz: We are now in 30 countries serving over 35 COMMSMEA: WHAT ARE THE MAIN BUSINESS AREAS operators globally. In the Middle East, we are working THAT TELENITY IS INVOLVED IN? with Etisalat, and in Oman with Nawras. We are also Serif Beykoz: We have three main business lines in providing solutions in Egypt, Kuwait, and Saudi Arabia Telenity. The first one is the messaging group, providing where we work with both Mobily and STC. Also, we are very stable messaging platforms. The second group is working very closely with Zain Group; they have 22 the service delivery platform (SDP) and the location different operations and six or seven of them are group, and the third business line is value added service working with us at the moment. So we are quite applications, like “Canvas PayForMe™”, which is a call powerful in the region and with the Dubai office I think collect application for mobile subscribers. We have this should be reinforced giving better post-sales another product, “Canvas SmartConnect™”, which is a support. personalized call management service which helps operators realize new revenue streams by effectively managing call termination.

May 2009 / 09 Copyright © Telenity, Inc. 2006-2009

Industy Outlook

Innovation Drive George Bevir, Deputy Editor, CommsMEA We are supporting all kinds of standards, that is very important for us. We are not producing just for one country but for the world. We are supporting all the communication and IT standards. There is a lot being said about convergence and we are ready for this mobile convergence; telecommunication and IT services are coming together and we are ready for it.

In crisis times operators prefer to work with us to stop the decline of ARPU. For instance, our very stable SMS system creates 10% of the overall revenue in many operators. And we have deployed over 15 SMSCs worldwide, so we can claim that we are generating 3.5% or 4% of all SMS traffic through our system. It's very stable and very future wise, it is a very economical solution.

COMMSMEA: WHICH SERVICES ARE MOST POPULAR, AND WHAT ARE OPERATORS’ ASKING FOR? Serif Beykoz: The main one is Canvas PayForMe, it’s very popular. Canvas PayForMe, Mobile Collect Call Service, allows wireless subscribers to easily initiate mobile reverse charge calls without the involvement of an operator - through a simple USSD message followed by the target MSISDN, an SMS message or a call - which makes the service available even while roaming. It works like this: If I don’t have any credits left, I still can call you, and you pay for the call. For example, when I call you, the sysytem sends you a message asking whether you want to accept a collect call from me. If you don’t want to accept the call, you just select no, and hang up. If you accept the call, we get connected and you will be charged for the duration of the call. It’s very popular in the Middle East and Africa region.

We also see increasing popularity of location-based services, mobile marketing and mobile payment services. The most important LBS services are buddyfinder, navigation, tracking and local search. We have had increased demand for our Canvas PFS, Location-based People Finder Service especially in India and South Asian countries.

ARPU decline is a very big problem for all operators and they still get their main part of ARPU from voice. What we can do is stop the decline with targeted value added services. This is the main differentiator for operators, even for 3G operators. For 3G, the main service is data plus video. We can provide 3G services like video services and we have four or five of them already (e.g. video mail, video ringback tones, etc.).

May 2009 / 10 Copyright © Telenity, Inc. 2006-2009

We also see increasing popularity of location-based services, mobile marketing and mobile payment services. The most important LBS services are buddyfinder, navigation, tracking and local search. We have had increased demand for our Canvas PFS, Locationbased People Finder Service especially in India and South Asian countries.

Industy Outlook

Mobile Marketing: Donning a New Hat Jatinder Singh, May 2009, Voice & Data The number of mobile subscribers is way exceeding that of Internet users. This is turning the third screen into a personalized marketing device. Business has only two functions-marketing and innovation-the famous management guru, Peter Drucker once said. And if we analyze the ambit of mobile marketing, it seems to encompass both these objectives. In the bleak economic scenario where marketers are battling to get people to open their wallets, utilizing digital channels to reach consumers, in an innovative manner is gaining huge significance. Currently, India boasts of over 370 mn mobile users (which is expected to double in the next three years). Approximately 30 mn of these users access mobile Internet-the largest in Asia. Considering this, the country offers huge potential to marketers to reach their audiences in a direct and personalized way. Today, the number of mobile subscribers has surpassed that of Internet users. This is fast turning the mobile device into a vital marketing medium. Particularly significant for operators in India as ARPU is relatively low and they are banking upon alternative channels to increase ARPU in rural and semi-urban markets.

Watch this Space In February 2001, when London staged the world's first conference to discuss mobile advertising, not all were convinced about its prospects. However, as cellular subscribers started to outnumber TV sets and desktop/laptop population, operators and advertisers realized significant buoyancy in its effectiveness to promote their products and services. “With almost every third person in India being mobile now, mobile marketing becomes the most effective channel to reach the end user,” says Madhusudan Gupta, senior research analyst, Gartner. In a recent survey carried out by Telenity, over 51% consumers were willing to receive push advertising of preferred categories. The survey was done in eleven key markets which also revealed that majority of consumers liked mobile marketing if it enabled them to keep service costs down. “When it comes to TV or radio, no one is sure about the end consumer, however in mobile, we can identify our target consumers and can get the best juice out of the campaign,” says Zubin Dubash, AVP, VAS, TTSL.

“The concept of mobile marketing holds the promise of providing an additional revenue stream to operators who are looking for ways to deal with continuously declining ARPUs,” says Sunil Rajshekhar, president & COO, Times Internet.

The Problem

“Although cellular numbers are increasing, ARPU is declining as voice rates continue to fall. Mobile operators are looking at VAS to augment their ARPUs,” adds Vishwadeep Bajaj, co-founder and CEO, ValueFirst.

“The main obstacle is that this is a very new media channel. And hence the advertising ecosystem is not fully conversant about the technicality and functionality of this channel,” says Debasis Chatterji, CEO, Netxcell.

So far, mobile marketing in India has not been able to pick up as compared to the western world. The approximate budget allocation for this medium as of now is 2-3% of the total advertising budget in India.

May 2009 / 11 Copyright © Telenity, Inc. 2006-2009

Industy Outlook

Mobile Marketing: Donning a New Hat Jatinder Singh, May 2009, Voice & Data However, with easy accessible services and Internet on cell phones, it is witnessing a growth rate of over 200% per annum and is poised to reach greater heights in the years to come. “Mobile marketing is a nascent but rapidly growing industry in India. In the last one year we have seen the market more than double, given the efforts of all key components of the mobile media ecosystem,” says Anuj Kumar, executive director (South Asia), Affle. Aakash Moondhra, head, telecom and retail verticals, Baring Private Equity Partners says, “At present the market is small, somewhere between Rs 50-100 crore. However, as the benefit per rupee spent is on the higher side in this space, the medium holds a great potential.” The concept has already grabbed enough eyeballs in matured markets. For instance, in Spain 76% of mobile phone owners receive ads; in France over 62%; and in Japan 54%. More importantly, the estimate suggests that as the concept of mobile marketing matures so does the user involvement. In Japan, nearly 45% of mobile phone owners are believed to click on ads they receive on their phones today. In the US, brands hold mobile property which is urbanized along with data-rich network and hence, has more prospects for advertisers. However, in the UK, revenue generation is comparatively low because of lingual challenges. Says Anil Sardana, MD, Tata Teleservices, “In the coming days, targeted advertisement will emerge as a big ticket application. For example, the Big Bazaars of India want to announce a sale where the customer will gets 50% discount if he/she gets to the store within six hours or so. We can offer such Big Bazaars an advertisement application that follows a highly segmented approach and which would be delivered to the customers living within, say, 5 km of the stores.”

May 2009 / 12 Copyright © Telenity, Inc. 2006-2009

Trendy is In Besides people in the metros, people in rural area are also recognizing the potential of a mobile phone. And it has undoubtedly become the single largest platform to reach an individual in an effective and personalized manner. In the last couple of years, many new players have mushroomed in this space. However, not many have been able to generate significant margins. “If mobile service operators are to leverage this opportunity they would have to rapidly provide wider spread mobile packet access. Also, they have to enable interfaces that advertising value added application infrastructure providers can leverage to access subscriber profile and location information,” says Sajal Gupta, VP, Aricent. “The prospects of mobile marketing are huge in India. However, it has yet to take off in a splendid manner. There has to be innovative business models, otherwise RoI is not going to be a cakewalk,” says Krishna Durbha, head, VAS business & marketing, Reliance Communications. The company has recently implemented an integrated carrier-class mobile marketing software platform termed Neon on its network as part of its tie-up with Flytxt, a mobile advertising and marketing technology provider. Apart from using mobile marketing for existing products, it also offers mobile advertising solutions for other companies as well. Among various mobile marketing channels globally, SMS is the trendiest because of its ubiquitous nature Also, mobile coupons are gaining recognition as part of the overall marketing campaign; the coupons are emailed and then can be redeemed at specific vendor machines. There is growing interest in location in terms of time, place and occasion where people shop, and experts believe that mobile is an ideal medium for this.

Industy Outlook

Mobile Marketing: Donning a New Hat Jatinder Singh, May 2009, Voice & Data Other marketing media holding strong appeal include MMS, Bluetooth, adver-gaming, full-screen interstices and audio advertisements that can take the form of a jingle before a voicemail recording. While Bluetooth marketing has been around for quite some time, MMS is still in its early days and yet to make a strong statement. “Bluetooth could be for a niche segment that can do well at high foot-fall areas. But it would have to discover methods where the interaction is continuous once the customer is out of Bluetooth coverage. It would have a limited scope in India for niche segments,” states Rajiv Madhok, director, One97 Communications.

"There has to be innovative business models otherwise RoI is not going to be an easy cakewalk" Krishna Durbha, head, VAS business & marketing, Reliance Communications

"Bluetooth could be a niche segment that can do well at high foot-fall areas but interactions have to be continuous when customer is out of its coverage"

USSD services are another area gaining traction in the market. It includes subscription alerts, prepaid recharge services, etc. Location based advertising is another very relevant technology to which enables reaching the right customer, at the right time and location.

“This is a push service that is event driven where the user receives a notification (IVR, SMS, USSD, MMS) based on his preference, location or movement. For example for a person who has chosen “restaurants” for receiving mobile advertisements will receive a mobile coupon alert giving him discount information as he passes near a McDonald's outlet,” says Yogesh Bijlani, vice president, sales, Asia Pacific, Telenity.

"Today most campaigns are in SMS, in English which rural India can not easily understand"

"In the coming days, targeted advertisement will emerge as a big ticket application"

C Mohan Ram, MD, Lattice Bridge Infotech

Anil Sardana, MD, Tata Teleservices

Rajiv Madhok, director, One97 Communications

Security is another pitfall in the way of successful marketing campaigns using the technology. “As people tend to keep their Bluetooth off due to the fear of transmission of spams and viruses, it really can't become a mass marketing instrument,” says Tim Williams, co-founder & executive VP, worldwide sales, Flytxt. At present, companies like Cafe Coffee Day, Pantaloon, Levis, Adidas and Pepsi have offered mobile content free of cost and discounts via Bluetooth in India. Among new segments, in-game advertising is one of the fastest growing areas. According to the Yankee Group, revenues are predicted to grow from $732 mn by 2010, up from $56 mn in 2005.

There is also another business model where companies such as mGinger, mGarlic, YouMint, 160by2, etc, are providing SMS advertisement services in which a consumer will receive ads of only those particular products or services that he is interested in buying. Interestingly, it also pays the consumer depending upon the ad he receives in a particular day. However, most of these companies have not been able to succeed in a big way. “Although it is interesting to see what the global trends are, it is important that operators focus on channels and needs of their own country. For instance, implementing a mobile email based campaign may not be suitable if the majority of your subscribers are avid SMS users,” underlines Ronan Casey, CTO, Asia Pacific, Acision.

May 2009 / 13 Copyright © Telenity, Inc. 2006-2009

Industy Outlook

Mobile Marketing: Donning a New Hat Jatinder Singh, May 2009, Voice & Data

Forward March The success of any mobile marketing initiative solely depends upon the end user who also expects to make interactivity selections as per his decision. “User privacy should be the key concern for all service providers. At any level it should not be compromised and an effective mechanism should be in place for the same,” says Kiran Konduri, co-founder, Asklaila. Agrees Jagdish Mitra, CEO, Canvas M “Advertisements should be specific to consumer interests and demographics mentioned during sign-up.” While mobile marketing does seem like a possible cause of the breach of privacy, it does not necessarily have to be so. The key to this in opting for DNDs (donot-disturb) and DNCs (do-not-call) registry which give the option of not receiving promotional messages and/or information. Therefore, to reach consumers without breaching their privacy, companies will have to look for more innovative models. “Like all other forms of marketing, there are things to keep in mind: online, which includes email spam, display advertising, pop ups; offline, which includes junk mail reaching your home. Hence mobile marketing will also have its share of junk. Responsible companies however rely on options when it comes to direct marketing,” says Ashish Gupta, managing director, Helion Advisors. Further, rural segments also represent a vast opportunity for personalized advertisement. As this space is maturing, marketers can actually educate farmers and villagers about the best quality seeds, ways to keep crops healthy and so on. However, barriers related to language and education would be a key concern here.

May 2009 / 14 Copyright © Telenity, Inc. 2006-2009

“Today most advertisement campaigns are in SMS in English, which rural India cannot easily understand. Voice adverts is the future, where this dependency would be removed. But voice calls are still not as cheap as SMS,” says C Mohan Ram, managing director, Lattice Bridge Infotech. In a country that represents over one third of the mobile subscriber base with an average balance of Rs 10, there is still a huge demand for infotainment. People also want to connect to the third screen and want selected ads and alerts but for free. The major challenge is to build an ecosystem with constructive partnership to communicate with highly targeted and profiled users for mobile marketing. Jatinder Singh [email protected]

Product Focus

Personalized Call Management Connecting with Subscribers to Capture New Revenues White Paper

Does Voice Still Matter? With the slow down of world economy, service providers are signaled that they will need to find new tools and creative ways to offer new types of services leveraging existing investments in voice and messaging infrastructure. Based on industry forecasts, the number of global mobile subscribers will expand from almost 2.5 billion at the end of 2007 to 3.5 billion by 2012, with the majority of growth occurring in Middle East and Africa (MEA), Asia Pacific (APAC) and Central America and Latin America (CALA) regions. While this growth remains mainly through subscriber acquisition, it is not sustainable in the long run for revenue generation. Carriers must adopt innovative service models to generate enough revenues from upselling to existing and new users.

“Still the killer mobile application, voice services are expected to reach $734 billion in 20121.“ Clearly, voice services have been the killer application so far as they account for the lion's share (80%) of total revenues - a significant revenue contributor estimated to reach $734 billion in 2012. However, this growth is slowing down due to the commoditization of voice services. For several years now, we have been hearing that the, “The share of voice revenues and average revenue per user (ARPU) are declining while the data revenues are increasing”. This trend has forced operators to consider different opportunities to increase subscriber ARPU. In fact, this is statistically true. However, the question remains whether the operators have tried their fullest potential to capture all the voice revenues. Calls that do not connect subscribers immediately due to unavailability of the called party or coverage area represent a significant potential for new revenue streams if acted upon with the right set of solutions.

For years, voicemail and missed call alert services seemed as the basic and standard value added services for every telecommunications network. The revenue benefit derived from voicemail comes from incremental uplift in voice/text (up to 10% ARPU from subscribers who use the service), missed call notification or a ringback to the user. After basic dial tone in wireline networks or airtime in wireless networks, voicemail and missed call alert should be two of the most important services in terms of revenue and subscriber retention. However, most operators are not currently exploiting these services to their fullest potential and lack the right penetration levels to generate additional ARPU. This paper articulates how service providers can further boost their revenues by offering personalized intelligent call management solutions comprising both of these key services. The voicemail penetration is very high (90%) in mature markets such as North America and Western Europe but very low (1% to 15%) in the rest of the world. This results in low voicemail service revenues due to the large number of non-voicemail users. In order to address this segment, operators should carefully examine their customer behavior and understand why they are not using voicemail service.

“Calls that do not connect subscribers immediately due to unavailability of the called party or coverage area represent a significant potential for new revenue streams if acted upon with the right set of solutions. “

1 Portio Research, 2008

May 2009 / 15 Copyright © Telenity, Inc. 2006-2009

Product Focus

Personalized Call Management Connecting with Subscribers to Capture New Revenues White Paper Different geographies have distinct types of users. At first, it seems obvious to relate customer behavior to cultural differences and think that there is not much an operator can do. Is it really the case? The simple answer is yes, but in reality there is more to it than just simply saying that the voicemail usage is low due to cultural reasons. There may be more fundamental reasons behind low voicemail usage, including: ? Most People think that the voice message will not

reach to the called party immediately ? People think that the receiver of the message will not listen or pay attention to it ? Complex message deposit/retrieval practices are annoying for subscribers ? Subscribers do not want to listen to long greeting messages ? People think that they will get charged for listening to the voicemail due to calling party pays ? People do not like to leave messages to complex systems. Instead, they prefer to call the person back later. However, creating voicemail usability and habit, and combining it with missed call notification is a challenging, yet a rewarding task for operators to overcome.

The Solution – Personalized Intelligent Call Management Like in any system, most subscribers always prefer simplicity versus complexity. To create usage habit among subscribers, operators should focus on providing a voicemail service that is initially simple and easy-to-use rather than offering advanced and complex features which are difficult to understand and adapt.

May 2009 / 16 Copyright © Telenity, Inc. 2006-2009

Best practices in introducing a voicemail service with “ease-of-use” components include:

? Familiarity: Forward all incoming calls to the voicemail, missed call alert or temporary voicemail systems free of charge on different conditions: no answer, out of coverage or busy. ? Choices: Offer friendly greetings such as “Record a message” or “Hang up for missed call alert” to called party. ? Connect: Create instant voicemail box for all users or send direct voice message. ? Simplicity: Eliminate long personal greetings and offer simple IVR menus, short announcements and simple personalized notifications. e.g., VM to MMS, SMS and out dial options. ? Immediate: Fast message delivery and retrieval These alternatives can easily be implemented to boost call revenues immediately. The key is to offer customers “ease-of-use” with simple features that will increase the voicemail service adoption, usage and hence the new call rates. This of course does not mean that the voicemail system should not have advanced features. As Telenity, we believe that Personalized Intelligent Call Management encompassing voicemail and missed call alert type services is a very crucial component for operators and subscribers. To this end, Telenity has developed Canvas® SmartConnect™, Personalized Intelligent Call Management Suite, which helps operators create usage behavior first and then introduce advanced call management and completion features as the customer usage behavior matures. The key to success in introducing any new service is to first appeal with basic features to create the usability habits of mass users. With voicemail, enhanced features such as increased message management options, extended notification services, parental control, call screening, time and day based call management rules etc. can be alternatively positioned later to maintain user levels, increase loyalty and service penetration.

Product Focus

Personalized Call Management Connecting with Subscribers to Capture New Revenues White Paper

Bringing Simple Service to Life – How Does It Work? 1. A Party calls B Party 2. In case B Party's phone is switched off or out of coverage, A Party hears the modified unavailability announcement from the MSC at no charge. The announcement would be like “The person you have called cannot be reached at the moment, please try again later or wait for 2 seconds to record your message” 3. A Party on his first attempt Slams down the call without leaving any message ? When B Party turns on the phone, he/she gets a missed call notification with the information on who called while ? at the same time A Party gets notified that B party is now available 4. A Party on his second attempt Waits for 2 seconds and leaves a voice message after the beep sound ? B Party turns on the phone and immediately gets the voicemail as a multimedia message (MMS), ? A Party again gets notified that B Party is now available. 5. A Party calls B Party who is not carrying a multimedia MMS enabled handset: ? Waits for 2 seconds and hears the beep sound and leaves a voicemail ? B Party receives this voicemail message as VoiceSMS and is able to listen immediately without making any call to the voicemail system. A party also gets notified of B Party's then-availability. As illustrated in the sample case above, these simple service scenarios of Canvas SmartConnect solution with effective call management capabilities capture all those calls that would have been lost otherwise, and help increase airtime usage and maximize voice revenues of the operators. The above use-case is fully customizable based on operators' and markets' choice while the described scenario is already proven to be very successful. The possible add-on features can be automatic connect on busy and automatic call back when available.

Revenue Potential Subscriber Growth Year Year 1 Year 2 Year 3

20%

Monthly

% Voice

Uncompleted

Subscribers 800,000 960,000 1,152,000

ARPU $10 $10.18 $10.36

Revenues 90% 90% 90%

Calls 20% 20% 20%

Revenues $86,400,000 $105,546,240 $128,935,287

Retained Calls Call Completion 10% 10% 10%

Increase

Increase

ARPU/Mon $0.18 $0.18 $0.19

Revenues $1,555,200 $1,899,832 $2,320,835

Through a real business case example, we will now show how much additional ARPU an operator can potentially generate from call completion services that can contribute to their overall revenues. Operator X with $10 of ARPU has 20% uncompleted calls in the network and it generates 90% of its revenues through voice services. This operator decides to provide voicemail and missed call notification services to all users and as a result turns 10% of uncompleted calls into new airtime revenues. When we do the calculation: 10% of 20% is equal to 2% of total calls and 2% of 90% equals to 1.8% of total revenues.

The solution enables service providers to capture additional revenues of about 1.8% of their total revenues.

Basically Operator X can increase its revenues by 1.8%, which is $0.18 increase in ARPU of $10.

May 2009 / 17 Copyright © Telenity, Inc. 2006-2009

Product Focus

Personalized Call Management Connecting with Subscribers to Capture New Revenues White Paper As more users start benefiting from voicemail system, operators will start enjoying increasing revenues. This will also bring an inevitable need for voicemail capacity expansion, which will be a key point for operators when they are making their initial system selection. Operators should utilize a low-cost, easily scalable system with a proven success for high capacity usage.

Case in Point A leading GSM operator realized the importance of voice revenues lost due to non-voicemail users in its network is significant opportunity to improve on. The operator offered a “Simple Voicemail” service but positioned it differently. The focus was on “ease-of-use” and “immediate access” in order to increase service usage first by offering basic voicemail service to all the users for free. With this “Simple VoiceMail” service: Callers leave a short voicemail message (30 to 45 seconds long knowing that the called party will get his/her ? message immediately) Then the called party is notified via SMS to retrieve the message ? Once the message is retrieved it is automatically deleted for good ? Additionally, in order to increase the message retrieval rates, the operator delivers voicemail messages via MMS to ? the called party. As a result of this new service introduction, the voicemail penetration rates were increased by 5 times in 8 months. The take rate was incredible but more importantly voicemail usage behavior was created among operator's users.

May 2009 / 18 Copyright © Telenity, Inc. 2006-2009

Product Focus

Leveraging SMS to Attract Additional Data and Voice ARPU Global messaging marketplace is growing at a rapid pace and mobile messaging revenue is expected to reach $212 billion by 2013. Short Message Service (SMS) is still the predominant messaging service with ever increasing short message exchanges among subscribers and bringing the highest revenue to operators. In their recent report “Leveraging SMS to Attract the Low End of the Income Scale”, Pyramid Research predicts that SMS revenues will far exceed the revenues of other higher-end data services such as mobile broadband for years to come especially in the Middle East and Africa (MEA). The report also predicts that this development will go beyond the revenue opportunity coming directly from peer-to-peer SMS and that it will create new ways for operators in the highly competitive and usually low-income markets of the MEA to capitalize on subscribers’ new familiarity with SMS in order to increase not only their data ARPUs, but their voice ARPUs too.

“Our recent report covering the Middle East and Africa (MEA) Leveraging SMS to Attract the Low End of the Income Scale looks at how operators in MEA can leverage the SMS platform to boost revenue from the largest, lowest-income subscriber segments. In the region, Peer-to-peer SMS accounted for about 60% of total mobile data revenue in 2008, and we predict that it will continue to be the largest single contributor to data revenue over the forecasted period (2009-2013). The fast subscriber growth that MEA operators are witnessing — a 39% annual CAGR over the past four years and a forecast 8% annual CAGR from 20092013 — is posing some serious challenges related to network efficiency and declining ARPU. However, over the next four years, SMS-based services will be a powerful tool that operators can use to target the large base of lowincome subscribers and generate higher revenues from both data and voice, adding up to a minimum of US$6bn in new annual revenue by 2013,” Dearbhla McHenry, Badii Kechiche, Pyramid Research.

Key Findings of "Leveraging SMS to Attract the Low End of the Income Scale" indicate that: Catering to the low end of the income scale is ? inevitable, and so is the resulting decrease in voice ARPU. Leveraging an already existing or a new SMS platform, coupled with USSD technology, to launch a slew of attractive services makes business sense and can make the transition less drastic. SMS-based initiatives can have a direct, positive ? and quantifiable effect on operators’ KPIs such as ARPU and churn, with prepaid ARPU rising as much as 6%. These initiatives can also help with other important indicators, such as network congestion, CRM and brand identity. While SMS-based initiatives have competitive ? implications, the outcome is not necessarily a winlose situation. Low-cost services that make sense to subscribers and respond to their needs have a potential to expand the total market as opposed to redistributing subscribers and revenue. So are you ready to maximize your SMS revenues and profitability from this most popular mobile messaging application? Will you be able to take advantage of the largest single contributor to data revenues and address the largest, lowest-income subscriber segments in MEA? Are you ready to launch new services with SMS and USSD technologies?

May 2009 / 19 Copyright © Telenity, Inc. 2006-2009

Product Focus

Leveraging SMS to Attract Additional Data and Voice ARPU Or… Are you struggling with: ? Frequent peaks of subscriber traffic volumes that your systems can not handle ? High OPEX of legacy messaging servers deployed in your network that drain your resources ? Lack of next generation network readiness ? Inflexible routing, load balancing and geographical distribution capabilities ? Revenue Assurance problems caused by non-real time charging interfaces Don’t be alarmed! Telenity has the right messaging solutions to help you solve all of the problems above and move forward. Telenity’s Canvas® Converged Messaging Solutions enhance revenues from P2P and A2P messaging with a modular, scalable next generation IP based architecture designed for offering SMSbased services and CAPEX and OPEX savings.

canvas MMSC - Multimedia Messaging Service Center ? Network agnostic, all-IP based multimedia messaging ? Advanced media adaptation, video support and MMS routing services ? Full 3GPP standards compliance

canvas UMS - Unified Messaging System with Voice, SMS, MMS, Email, Fax, Video Mail ? Scalable and reliable solution ? Easy integration with other Canvas voice services ? Multiple subscriber interfaces for message recording and management; WEB and IVR ? Subscriber based settings, address books, and personalized messaging

Canvas Converged Messaging Solutions include:

canvas SMSC - Short Message Service Center and canvas SMSR - SMS Router ? Next generation, IP-based, high performance and distributed short messaging ? First delivery attempt, SMS routing, IP-offload, and advanced SLA management features ? One stop integration point for charging, subscriber database and third party service management solution ? Advanced messaging services such as Subscriber based screening (black) lists, Message delivery settings (SMS Diversion/Forwarding), Message Copy (Carbon Copy), Subscriber and Customer Care Web Portals, Out-of-Office SMS, etc.

canvas USSD Service Center - Interactive Mobile Services ? USSD Gateway with pre-packaged service options ? Flexible, graphical service creation environment with interactive menu service templates

May 2009 / 20 Copyright © Telenity, Inc. 2006-2009

canvas MSGW - Messaging Gateway ? Single solution to manage all (text, binary, multimedia) messaging services SMSC, MMSC and USSD connectivity ? Uses standard network interface protocols with flexible routing and charging capabilities ? One-time OSS/BSS (charging, reporting) integration for all messaging applications ? Advanced SLA, congestion, and traffic control Telenity’s Canvas Converged Messaging Solutions help operators offer innovative P2P and A2P messaging services, while helping them increase revenues and reduce/maintain costs.

Product Focus

Leveraging SMS to Attract Additional Data and Voice ARPU Canvas Converged Messaging Solutions – Value Proposition Gracefully handle traffic peaks to assure additional/no lost revenues with a scalable and adaptive messaging ? server Modular design allowing flexible feature selection and deployment options ? Increase your ARPU by enabling more applications without system overload or service outage ? Reduce your maintenance costs with a standards based system that works on off-the-shelf-components that ? do not require proprietary hardware or software knowledge Get your network ready for next generation now with a future proof, network agnostic solution that supports ? both legacy and next generation networks

? “Add to” or “Replace” your existing messaging systems, with a solution that can co-exist with your current investment and grow for future

? Maximize your revenue assurance and minimize fraud with a high performance and fault tolerant real time charging capability to cover the entire messaging traffic

? “Green” solution supporting low power consumption with high performance resulting in lower OPEX

Canvas Converged Messaging Solutions Overview

Telenity’s Canvas Converged Messaging Solutions help operators offer innovative P2P and A2P messaging services, while helping them increase revenues and reduce/maintain costs.

May 2009 / 21 Copyright © Telenity, Inc. 2006-2009

Events

6th Annual Media And Telecommunications Convergence Conference 2009 Amman, Jordan The 6th Annual Media And Telecommunications Convergence Conference 2009 organized by the Arab Advisors Group is taking place during June 1-2 at the Four Seasons Hotel, in Amman, Jordan The 6th Media and Telecoms Convergence Conference builds on the success of Arab Advisors Group's Annual Media and Telecoms Convergence Conference held in Amman over the past five years. The convergence of media, telecom and information technology pushes the hitherto disconnected players in the three sectors towards operating in an increasingly merged segment. This convergence carries threats to existing revenue and business models, but also bears new opportunities for new models. Arab Advisors Group’s 6th Media and Telecoms Convergence Conference 2009 is the ideal forum for networking, discussions and debates on the convergence trends underway in the Arab media and telecom markets.

Date: June 1-2, 2009 Location: Amman, Jordan Telenity will speak at the 6th Media and Telecomms Convergence Conference 2009. On day 2, at 12:45pm, the presentation given by Mr. Serif A. Beykoz, General Manager EMEA at Telenity will focus on Growing Mobile VAS Business in Arab World. Come out and meet the Telenity team who will be available to discuss your needs for converged messaging, value added services and service delivery solutions. To arrange a meeting with the Telenity team at the 6th Media and Telecoms Convergence Conference, please email us at [email protected]

May 2009 / 22 Copyright © Telenity, Inc. 2006-2009

Events

Mobile VAS Forum 2009 Miami, FL, USA

The Mobile VAS Forum 2009 organized by Informa Telecoms & Media is taking place during June 9-10 at the Sonesta Bay Front Hotel Coconut Grove, in Miami, FL, USA. Mobile VAS Forum is the exclusive event focused on Latin-America’s VAS experiences to bring together the key players of the mobile industry. With decreasing voice ARPU in upcoming years, the strategic need for developing successful VAS products to ensure a resilient and sustainable revenue generation has become critical in Latin & Central America and the Caribbean. Mobile VAS Forum 2009 aims at sizing up this challenge and identifying which business opportunities are being created or underused, and how the players could or should explore these alternatives. Evolving from the well established Mobile Messaging & VAS Americas, this major conference focuses on the alternatives and opportunities for revenue growth through value added services. Addressing the critical issues to increase revenue for mobile operators and the whole value chain, this summit tackles acknowledged world class case studies, winning strategies to develop and roll out new products, business opportunities and a deeply and comprehensive networking driven agenda. The agenda covers all VAS topics, such as SMS and MMS boosting strategies, business models for mobile marketing and advertisement, mobile payment, content products, music, games, mobile TV, entertainment, 3G services and others products available for the telecom market.

Date: June 9-10, 2009 Location: Miami, FL, USA Telenity will exhibit at Stand 5 and speak at the Mobile VAS 2009 event. On day 1, during the VAS Services and Trends in this Economic Times, the presentation given by Mr. Nitin Patel, VP Strategic Marketing at Telenity will focus on Gaining Competitive Advantage with VAS and Messaging. Come out and meet the Telenity team who will be available to discuss your needs for converged value added services, messaging, and service delivery solutions. To arrange a meeting with the Telenity team at the Mobile VAS 2009 conference and exhibition, please email us at [email protected]

May 2009 / 23 Copyright © Telenity, Inc. 2006-2009

Events

West & Central AfricaCom 2009 Abuja, Nigeria

The West and Central AfricaCom 2009 6th annual and the regions largest telecoms event is taking place during June 1718, 2009 in Abuja, Nigeria. West and Central Africa Com 2009 comprises a 2 day, 6 streamed conference agenda and an exhibition floor. West and Central Africa’s only communications Congress and Exhibition, the event hosts 1,500+ telecoms decision makers. A panel of 50+ visionary speakers including 20+ CxO level operators lead a 2 day strategic conference featuring 5 streams and 4 keynote sessions while 80+ leading international vendors showcase their solutions in the co-located exhibition floor.

Date: June 17-18 Location: Abuja, Nigeria Telenity will be exhibiting at Stand E02 with its partner CIS Nigeria/Rt2i and showing demonstrations of its converged value added services solutions including Mobile Collect Call, Personalized Call Management, and Location-based People Finder Service. Come out and meet the Telenity and CIS Nigeria/Rt2i teams who will be available to discuss your needs for converged messaging, service delivery and value added services. To arrange a meeting with the Telenity and CIS Nigeria/R2ti teams at the West and Central AfricaCom 2009 conference and exhibition, please email us at [email protected]

May 2009 / 24 Copyright © Telenity, Inc. 2006-2009

Events

VAS Asia 2009 New Delhi, India

The VAS Asia 2009, 5th International Conference and Exhibition is taking place during July 10, 2009 at the Le Meridien Hotel, in New Delhi, India. Over 330 million people in India now own mobile phones which are poised to reach 500 million by 2010. India is the second largest and fastest growing cellular market in the world. With ever rising cellular subscribers, voice is increasingly becoming a commodity. Service Provider's are experiencing low ARPU's and high subscriber churn rate. Over the last 6 years, the Indian telecom industry has realized the importance of Mobile Value Added Services. Given the declining ARPU and increasing competition among operators, it is imperative to focus on alternate revenue streams. That is where there is a felt need for capitalizing on the Value Added Services (VAS) Market. Propelled by the need to bring in service differentiation, operators are deploying new value added services in order to satisfy the growing demand of Indian consumers. There is an increased transformation of business models with an aggressive focus on VAS. Mobile VAS currently contributes 9% to the operator's revenue which is expected to reach 12% by June 2010. This is attracting wireless operators, handset manufacturers, content developers, music & film companies, cartoon artists, game makers and musicians for ring tones, music, gaming, sports, mobile imagery, WAP, wall papers, logos, SMS based contests and streaming audio and video. Celebrating 5th Anniversary of VAS Asia 2009 International Conference & Exhibition, the convention will create the best forum in India for all players of the value chain where business is bound to happen!

Date: July 10, 2009 Location: New Delhi, India Telenity will have a speaking session and exhibition stand at VAS Asia 2009. In its booth, Telenity will have demonstrations of converged services solutions. Come out and meet the Telenity team who will be available to discuss your needs for converged value added services, messaging and service delivery. To arrange a meeting with the Telenity team at the VAS Asia 2009 event, please email us at [email protected]

May 2009 / 25 Copyright © Telenity, Inc. 2006-2009

Events

AfricaCom 2009 Cape Town, South Africa

The AfricaCom 2009 is taking place during November 11-12, 2009 in Cape Town, South Africa. Now in its 12th year, AfricaCom is the longest established and the largest annual Pan-African telecoms event. This event comprised of a high-level conference and co-located exhibition is the best place to meet and build new contacts in the region. Having evolved to reflect the current market dynamics, the event embraces the entire telecommunications landscape in both its multi-streamed congress and accompanying exhibition. The conference provides both an overview of the general trends of the market, and specialist streams on the key aspects of the telecoms market such as: technology evolution, regulation, new business models, value-added services and marketing strategies. It is attended by senior representatives of the continent’s leading operators, regulators, investors, telecoms solutions providers and analysts. Year-on-year, the event continues to offer African telcos the chance to meet new and existing suppliers of the highest calibre, discuss the future direction of their business and plan for their expansion.

Date: November 11-12 Location: Cape Town, South Africa Telenity will be exhibiting at Stand C12 and showing demonstrations of its converged value added services solutions including Mobile Collect Call, Personalized Call Management, and Location-based People Finder Service. Come out and meet the Telenity team who will be available to discuss your needs for converged messaging, service delivery and value added services. To arrange a meeting with the Telenity team at the AfricaCom 2009 conference and exhibition, please email us at [email protected]

May 2009 / 26 Copyright © Telenity, Inc. 2006-2009

Events

GSM>3G Middle East 2009 Dubai, UAE

GSM>3G Middle East 2009 is taking place during December 7-8, 2009 in Dubai, United Arab Emirates. As the GSM Middle East and Gulf markets continue to expand, this event in its 14th year will provide unique networking opportunities and set the regional telco agenda. GSM>3G Middle East 2009 event will bring together wireless operators, vendors, developers and industry leaders from across the world to discuss future strategies, business models, and the challenges and opportunities facing today’s wireless services. Attendees will benefit from a much deeper and invaluable learning experience and understand in greater detail the key technological and commercial opportunities within the Middle East & Gulf telecoms market.

Date: December 7-8, 2009 Location: Dubai, UAE Stand: 108 Telenity will be exhibiting at the GSM>3G Middle East 2009 conference and exhibition. Telenity will have demonstrations on converged value added services solutions including personalized call management, locationbased people finder service and video services. Come out and meet the Telenity team who will be available to discuss your needs for converged messaging, service delivery and value added services solutions. To arrange a meeting with the Telenity team at the GSM>3G Middle East 2009, please email us at [email protected]

May 2009 / 27 Copyright © Telenity, Inc. 2006-2009

Press Releases

Telenity and Datatronics Expand Their Partnership to Latin American Telecom Market Telenity and Datatronics to Offer Messaging and Valued Added Services to Latin American Operators Monroe, CT – March 25, 2009 - Telenity, a leading provider of next generation converged services platforms and applications for communications networks and Datatronics, a telecommunications value-added reseller in Spain, announced today that they have expanded their partnership to address Latin American telecom market. Under the new partnership, Datatronics will distribute Telenity’s converged messaging and value added services (VAS) in Latin America in addition to Europe. Latin America’s telecoms market remains among the high growth potential ones. According to industry analysts, the total mobile data VAS revenues will rise from $4.5billion in 2008 to USD $6billion in 2010, CAGR 31%. VAS accounts for 9% of the mobile services revenues in Latin America. Short Message Service (SMS) traffic continues to be the main component of data services, and today still accounts for 50% of mobile operators’ non-voice revenues in Latin America.

“Combining Telenity’s global market experience and leading converged services solutions, and Datatronics’ over 12 years of experience in providing systems integration to the telecommunications sector, this strategic partnership will bring next generation messaging and VAS that much closer to Latin America.”

The extension of an ongoing cooperation, this partnership will provide Latin American wireless operators with access to Telenity’s converged messaging and VAS solutions with experienced localized support, system integration and maintenance services from Datatronics. Telenity and Datatronics already share a mutual successful history with Telefonica in Spain and similar partner success is expected to materialize in the Latin America’s mobile market.

May 2009 / 28 Copyright © Telenity, Inc. 2006-2009

“Combining Telenity’s global market experience and leading converged services solutions, and Datatronics’ over 12 years of experience in providing systems integration to the telecommunications sector, this strategic partnership will bring next generation messaging and VAS that much closer to Latin America,” said Oscar González, Vice President of Sales and Business Development at Datatronics Telecom. “Latin American mobile market represents a great potential for messaging and VAS solutions. As we continue to increase our footprint in the region, it is crucial that we build the right partnerships to support our deployments and to ensure the success of our customers,” said Enrique Gomez, Director of Sales, Americas and Telenity. “Datatronics has an excellent track record in system integration and in the region. Joining our solutions, as well as, our sales and market development teams together with Datatronic’s system integration expertise will offer an ideal solution for mobile operators looking to enhance their services offering and increase their revenues.” About Datatronics Datatronics is a VAR and System Integrator leading supplier of solutions for the fixed and wireless market, leveraging more than 12 years experience in telecoms networks and telecoms value added services. Datatronics Telecom Division provides technologies and solutions in the field of Signaling, Messaging, NGN & VoIP, Roaming, Interconnection and Mobile Video Services. Headquartered in Madrid, Spain, Datatronics has international business in EMEA and LATAM.

Press Releases

Telenity and Astelit Sign a Four Year Frame Agreement Monroe, CT – February 16, 2009 - Telenity, a leading provider of next generation converged services platforms and applications for communications networks, announced today that Astelit, Ukraine’s third largest mobile operator providing communication services under the life:) brand, chose Telenity’s Canvas® CSP, Converged Services Platform including a content management system (CMS), common management and provisioning framework, third-party access and messaging gateways, and subscriber portal functionalities. In addition to Canvas CSP, the four year frame agreement signed by Astelit and Telenity also includes voicemail system enhancements and capacity upgrades on advanced messaging solutions including SMSC, MMSC, and USSD Service Center. This multimillion dollar agreement is the result of long lasting trust and strong relationship Telenity has built with Astelit over the years. With this contract in place, Telenity now supports over 75% of life:)’s value added services (VAS) infrastructure.

“With their proactive approach, Telenity understood our needs and offered us a costeffective and efficient solution that will help us support our subscribers now and in the future.”

“We are delighted to have signed this agreement to provide Astelit with our service delivery platform solution and capacity upgrades on a variety of messaging applications, “ said Serif A. Beykoz, General Manager Europe, Middle East and Africa at Telenity. “Astelit is a growing operator with a customer base of around 11 million subscribers. With our proven advanced messaging applications and service delivery components, Astelit will be able to differentiate itself with innovative content services, supported by a reliable and high performance messaging infrastructure.”

“We needed a flexible content management system capable of handling a wide range of enhanced value added data services for both of our prepaid and postpaid subscriber base. With their proactive approach, Telenity understood our needs and offered us a cost-effective and efficient solution that will help us support our subscribers now and in the future,” said Tansu Yegen, General Director of Astelit. Telenity’s Canvas CSP, Converged Services Platform enables network operators and service providers to develop and deploy innovative services in accelerated periods with little overhead. Astelit will utilize the following components of Canvas CSP to offer content based advanced value added services to its subscribers: Content Management Server (CMS) - Provides a ? secure, flexible and comprehensive environment to aggregate, host and deliver content from multiple parties/sources Common Management and Provisioning ? Framework (CMPF) - Centralized and flexible data repository comprising platform, service, partner, subscription (personalization), identity, security, and policy management data as well as OAM&P aspects of it Access Gateway (XSGW) - Allows secure and ? policy-controlled single-point of access to the service enablers within the SDP environment Subscriber Portal - Provides Web/WAP interface ? to access content and services with enhanced personalization capabilities About Astelit life :) The Ukrainian mobile services operator Astelit life :) is the leading operator on the market in terms of new customers acquisition, serving 10,7 million subscribers (as of Q3 2008). Astelit life:) network covers the territory where 93,7% of population lives. Astelit life:) provides roaming opportunities in 168 countries via 411 roaming partners. The operator was the first in the market to introduce EDGE technology and today Astelit life:) offers large EDGE coverage – 64,6% of the current network’s sites support EDGE. Astelit life:) offers high quality mobile services for all segments of the Ukrainian society. Currently the rational expenses for mobile communications are of great significance to any subscriber.

May 2009 / 29 Copyright © Telenity, Inc. 2006-2009

Press Releases

Eagle Mobile Selects Telenity’s Advanced Messaging Applications Canvas SMSC and USSD Service Center Ensure Capacity and Service Flexibility for Eagle Mobile Monroe, CT – February 12, 2009 - Telenity, a leading provider of next generation converged services platforms and applications for communications networks, today announced that Eagle Mobile, the newest Albanian mobile operator, chose Telenity’s advanced messaging solutions including Canvas® SMSC, Short Message Service Center and Canvas USSD Service Center to handle its rapidly growing messaging traffic and enable the introduction of new USSD and SMS-based innovative services. Telenity’s Canvas Converged Messaging Solutions enhance revenues from Person-to-Person (P2P) and Application-to-Person (A2P) messaging with a modular, scalable next generation IP based architecture designed for CAPEX and OPEX savings.

“Since the launch of its operations in March 2008, Eagle Mobile captured 12% share of the total market in Albania and continues its solid growth. Their selection of our SMSC and USSD Service Center applications to support their rapidly growing customer base and SMS traffic proves the solid reputation Telenity has in the market for high performance and reliable messaging solutions,” said Serif A. Beykoz, General Manager Europe, Middle East and Africa at Telenity. “This is the start of a new relationship for us and we are committed to supporting Eagle Mobile on all avenues as they become a leading operator.”

Copyright © Telenity, Inc. 2006-2009

First delivery attempt, SMS routing, IP-offload, and ? advanced SLA management features One stop integration point for charging, subscriber ? database and third party service management solution

“Telenity’s SMSC will significantly improve our ability to gracefully handle SMS traffic peaks and offer higher service quality to our subscribers. Telenity’s USSD Service Center will allow us to enhance our offering with new flexible and easy-to-use innovative messaging services.”

“As a new operator in the Albanian market, it’s extremely vital for us to build a reputation as a reliable and innovative service provider. Telenity’s SMSC will significantly improve our ability to gracefully handle SMS traffic peaks and offer higher service quality to our subscribers,” said Ali Taskin, CEO at Eagle Mobile. “And Telenity’s USSD Service Center will allow us to enhance our offering with new flexible and easy-to-use innovative messaging services.”

May 2009 / 30

Canvas SMSC offers a next generation, IP-based, high performance and distributed short messaging system with:

Canvas USSD Service Center offers a USSD gateway with pre-packaged services and a flexible, graphical service creation environment with interactive menu service templates and USSD Menu Browser capability.

About Eagle Mobile Eagle Mobile is the newest operator of the mobile telephony that entered into the Albanian telecommunication market on March 2008. Since the signing of the Shares Purchase Agreement between the Albanian government and the Turkish Consortium composed of Calik Group and Turk Telekom, the Albanian consumers are benefiting highly qualitative reliable services, the latest technology and incredible service packages offered by Eagle Mobile. As of year end in 2008, Eagle Mobile subscriber base reached 260,000 representing over 11% of the total market. Eagle Mobile made the fastest entrance to Albanian telecommunication market by giving a wide range of services in such a short time of six months. For further info: http://www.eaglemobile.al/en/default.aspx

Press Releases

Telenity Appoints Yogesh S. Bijlani as Vice President of Sales for Asia Pacific Region Monroe, CT and India – January 23, 2009 - Telenity, a leading provider of next generation converged services platforms and applications for communications networks, announced today the appointment of Yogesh S. Bijlani as the Vice President of Sales for Asia Pacific Region. In his new role, Bijlani will be responsible for broadening Telenity’s footprint in the region across Messaging, Value Added Services (VAS) and Service Delivery (SDP) solutions. “Since we established our offices in India in 2005, Asia Pacific has been one of our key focus regions and to date we’ve had great success with strategic customers like BSNL and Airtel,” said Roger Whitham, General Manager for Americas and Asia Pacific at Telenity. “Asia Pacific is a diverse and innovative marketplace. Yogesh’s vast experience in technology and customer segments will be a tremendous asset as we further establish the Telenity brand as the preferred partner of service providers for next generation services.”

“Telenity already has a solid reputation in India, as well as, in Eurasia and Middle East and Africa (MEA) for understanding customer needs and requirements and offering innovative services. We will take that message to the entire Asia Pacific region.” said Bijlani. “We plan to capitalize on our relationships with regional partners in extending our reach into the region.”

Prior to joining Telenity, Bijlani was the Vice President of Sales for South Asia at Bharti Telesoft. He has also served as India Country Head for Veraz Networks and in executive sales and marketing management positions with UTStarcom, Lucent Technologies, Nokia, Star TV and Digital Equipment India. Yogesh S. Bijlani and other Telenity executives will be available for meetings at Mobile World Congress 2009, 16-19th February, at Stand B151 in Barcelona, Spain. About Telenity Telenity is a leading provider of next generation converged services and applications for communications networks. Telenity's market ready software solutions include: integrated advanced messaging (SMS, MMS, USSD) applications, innovative value added services (personalized call management, mobile collect call, missed call notification, voice/video mail, multimedia ringback tones, location-based people finder); and reusable service delivery components (messaging gateway, 3rd party access gateway and location gateways) enabling rapid service creation and deployment. Headquartered in USA, Telenity's worldwide customer base includes network operators, service providers and application providers serving over 300 million customers. Telenity partners with global and regional network equipment providers, system integrators and computing platform manufacturers. Learn more about Telenity's Canvas® family of converged services solutions at www.telenity.com and download a copy of Telenity’s online newsletter Telescope.

Bijlani’s over 18 years of business and technical expertise includes regional management, sales and marketing of telecom network solutions in India and throughout South Asia. Having a mix of strategic insight, analytical mindset and a strong technical background, Bijlani has an acute understanding of the market needs for new services and technology deployments. Bijlani holds an MBA from Indira Gandhi National Open University (IGNOU) and Bachelors degrees in Electronics and Telecommunications from Pune University in India.

May 2009 / 31 Copyright © Telenity, Inc. 2006-2009

May 2009 - Online Newsletter

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