Vodafone and Ericsson: Building the Future of Converged Multimedia

March 29, 2008

Gabriel Tavridis, Dafina Toncheva, Alex Salazar, Dan Murillo

The challenge for Vodafone: The multimedia industry is growing, how will

Vodafone get a piece?

The Industry: it’s hot in here

Vodafone

Suppliers• Network

• MM Content

Competitors• MNOs• Cable

Market• $150B in 2011

• Few substitutes

BTE• Network• Content• Brand

Customers• Saturated

Multimedia Industry Value Web

Content Production Aggregation Distribution Portals &

SearchTransport &

DeliveryCustomer

Experience

Advertising

Issu

e

Vodafone risks becoming a pipe

Vodafone Strategy: Create value by expanding upstream

Distribution Portals & Search

Transport & Delivery

Customer Experience

Advertising

Strategic Initiatives

Infrastructure Improvements

Ubiquitous Content Delivery

Targeted Advertising

Interactive User Experience

Customer Scenarios

Before going to bed, Bob purchases an episode of CSI

Vodafone

Ericsson

• IPTV/VOD•Broadband•Authentication•Billing

InfrastructureImprovements

Reve

nue One-Time Transaction Revenue

On the train to work, Bob resumes watching CSI

Vodafone

Ubiquitous ContentDelivery

Ericsson

• Device Management • DRM • Handset

Reve

nue Subscription Fee & Data Service

At work, Bob receives a special offer for Celtics tickets

Vodafone

TargetedAdvertising

Ericsson

• CRM• Advertising Platform• LBS• Billing

Reve

nue Advertising Revenue & Transaction Fees

At the game, Bob snaps a photo & shares it with friends

Vodafone

Interactive User Experience

Ericsson

• Online Storage• Sharing Services

Reve

nue Bob: Subscription Fee & Data Service

Friends: Advertising Revenue

Enabling Technologies

Advertising PlatformAd

verti

sing

Pla

tfor

m

Data mining / User analytics

Customer segmentation

Targeted advertising to subscribers

Performance measurement

Bene

fits Boost mobile revenue

Anticipate subscriber needs

Software application: Managed-as-one

Ubiquitous Content DeliveryBe

nefit

s Drive data consumptionProvide unified customer experience

Multimedia content accessible from all devices

Online Storage/ SharingBe

nefit

s

Drive data consumptionEnhance customer experience

Gather data on user preferences

Ericsson Infrastructure

• Location info• Date info• Other metadata

Vodafone ARPU to increase as services get rolled out

ARPU Growth Projections, 2008-2012 € 2008 2009 2010 2011 2012Base ARPU/Month 43.9 42.6 41.3 40.1 38.9Advertising Platform 0.0 0.7 1.1 1.5 1.7Ubiquitous Content Delivery 0.0 10.0 12.0 13.8 15.2Online Storage & Sharing 0.0 2.0 2.0 2.1 2.1New ARPU/Month 0.0 55.3 56.4 57.4 57.8% Increase 0% 30% 37% 43% 49%

Ericsson total solution offering

Business Consulting

Integration & Network ServicesAdvertising

PlatformUbiquitous

Content DeliveryOnline Storage &

Sharing

Managed Services

Ericsson Tomorrow

Technology Provider

Vodafone Tomorrow

Multimedia Enabler

Vodafone Today

Mobile Carrier