Digital Convergence Vision and Architecture. Timo Poikolainen Vice President, Marketing Technology Platforms Nokia

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1 Digital Convergence Vision and Architecture Timo Poikolainen Vice President, Marketing Technology Platforms Nokia 1 NOKIA T.Poikolainen/May 2004

2 Agenda Mobile Industry - Digital convergence Horizontal Software Platform Mobile Services 2 NOKIA T.Poikolainen/May 2004

3 Mobile phone subscriptions globally, millions 2,000 Towards the 2 Billion Milestone 2 billion in 2008! 1,800 1,600 1,400 Current global penetration 20 % 1,200 1, Source: Nokia e 3 NOKIA T.Poikolainen/May 2004

4 Mobile is capturing an important share of voice traffic Mobile traffic, NA Fixed 1998 Fixed voice traffic, % 0 Czech Republic Italy Portugal France UK Germany Source: McKinsey 4 NOKIA T.Poikolainen/May 2004

5 Unleash the potential of 2 billion users! Growth will come from more and new users - and more and new use 5 NOKIA T.Poikolainen/May 2004

6 Win-Win-Win Business Models Increasingly based on partnerships Cooperation across industries Generating opportunities for all players 6 NOKIA T.Poikolainen/May 2004

7 Voice went goes wireless - GSM Text Messages Mobile voice WAP Browsing Corporate SMS 7 NOKIA T.Poikolainen/May 2004

8 Digital Convergence Started GPRS & EDGE Radio Gaming Multimedia Messages Seamless voice Push to Talk Rich Call Internet Browsing Digital Content Download Corporate connectivity Vertical Applications Home Entertainment Connectivity Share Pictures, Music and Video 8 NOKIA T.Poikolainen/May 2004

9 Life goes mobile - Multiaccess Visual Radio Interactive on-line gaming Multimedia Messages Seamless voice Push to Talk Rich Call Mobile meetings Internet Browsing Digital Content Download Rich Media Delivery Real Time Video Sharing Home Entertainment Connectivity Corporate connectivity Vertical Applications Share Pictures, Music and Video 9 NOKIA T.Poikolainen/May 2004

10 Agenda Mobile Industry - Digital convergence Horizontal Software Platform Mobile Services 10 NOKIA T.Poikolainen/May 2004

11 End-to-End Platform Architecture User Interface TERMINAL Symbian OS Nokia OS Series 60, 80, 90 Platforms Series 40 User Interface User Interface Core Applications Service Enablers User Interface Interoperable E2E Protocols SERVER Core Applications and Service Enablers Service Enablers J2EE Application Server Other App Env. C++ App Env. Java (CDC) E2E Java Middleware Java (CLDC) Standardized Programming Interfaces E2E Java Middleware Common Platform Services.NET Server Components Developer Productivity & Tools 11 NOKIA T.Poikolainen/May 2004

12 Powerful Segmentation and Differentiation on Nokia Platforms World s Largest Volume Opportunity Series 40 Platform Series 60 Platform Series 80 Platform Series 90 Platform Nokia OS Symbian OS 12 NOKIA T.Poikolainen/May 2004

13 Nokia Developer Platforms World s Largest Volume Opportunity Series 40 Developer Platform mass-market Java applications and content for mobile devices Series 60 Developer Platform Java applications, C++ and rich content for the Symbian OS-based Series 60 smart phones Series 80 Developer Platform Java applications, and C++ and rich content for the Symbian OS-based Series 80 communicator devices Series 90 Developer Platform Java applications, and C++ and rich content for the Symbian OS-based Series 90 mobile media devices 14 devices by 7 vendors Over 40 Developer Platform devices launched Nokia targets to ship approximately 100 million Developer Platform devices in 2004 Nokia shipped 70 million Developer Platform devices in NOKIA T.Poikolainen/May 2004

14 Open Terminal Software Platform best of breed on each layer Add-on Applications Applications User Interface Java Symbian 14 NOKIA T.Poikolainen/May 2004

15 Series 60 is the Leading Smartphone Platform Add-on Applications Series 60 is a Symbian OS based Smartphone platform Leading Smartphone platform 7 licensees cover the global markets supplying 60% of global volumes 14 launched interoperable devices Over 100 Operators selling Series 60 devices Over 2000 applications available Series 60 Platform Series 60 Platform Applications User Interface Symbian OS HW & Cellular SW (1 Source: IDC NOKIA T.Poikolainen/May 2004

16 Series 60 for Business Use HTML browsing: Secure access to Intranet Document readers VPN and virus protection Java and Symbian: Business process applications Vertical applications Automatic polling & push Data access: GPRS and EDGE Presence and location Calendar Office in the phone Over-the-Air synchronization of PIM SyncML device management Full feature PC Suite MMC hot swap Off-line mode USB Data sync MS Exchange Lotus Oracle 16 NOKIA T.Poikolainen/May 2004

17 Differentiation and segmentation without platform fragmentation Operator service differentiation 1.UI themes & Branded graphics 2.Preloaded content and applications Siemens Sendo 3. Branded operator service portal 4.Operator specific settings 5.Enriched platform applications (e.g postcard app) TMO Nokia 17 NOKIA T.Poikolainen/May 2004

18 18 NOKIA T.Poikolainen/May 2004 Innovation

19 Faster time-to-market with lower cost Series 60 Is on Track to Volumes Reference implementations Complete Design Model Reduction of Bill of Materials All markets and radio technologies supported Series 60 Platform High-End GSM/GPRS Multimode GSM/WCDMA CDMA Build high value-add for key stakeholders Operator differentiation Superior usability and ARPU generation Business opportunities for Developers Series 60 Platform Mid- Range Low- End High--End Mid- Range Low- End 19 NOKIA T.Poikolainen/May 2004

20 Agenda Mobile Industry - Digital convergence Horizontal Software Platform Mobile Services 20 NOKIA T.Poikolainen/May 2004

21 Success case: Macrospace Alpha Wing game by Macrospace: 1,200,000 sold in less than a year (March 2004) 91 % of java downloads on Nokia devices Average selling price 4 Euros Macrospace games available on 50+ operators worldwide, for example: Source: Kristian Segerstråle Head of Products and Services Macrospace 21 NOKIA T.Poikolainen/May 2004

22 Java is the leading mobile application development environment Over 85 mobile operators worldwide have deployed Java download services* (December 2003) Over 200 million Java enabled handsets on market by beginning 2004* Over 200 Java handset models by 27 mobile device vendors on the market* Over 3 million developers* 8 10 Mar03 Dec03 Americas Mar03 Dec03 Mar03 Dec03 EMEA APAC & China Global mobile download business was 2.7 Billion in : ~10 Million Java downloads globally / month ** 2004: ~15 Million Java downloads globally / month ** Source: * Sun Microsystems ** Nokia estimate 22 NOKIA T.Poikolainen/May 2004

23 Nokia Best Connects the Developers to the Global Market Place Available through 110 channels in 50+ countries Cumulative over downloads (Feb 2004), 6$ / unit Source Ilkka Paananen, CEO Sumea Ltd.

24 BBC Journalists Using Nokia Series 60 Devices BBC has given to 40 reporters Nokia 3650 devices that utilise enhanced 3rd party video capture software (40 minutes of video can be captured and then sent on to BBC servers for play-out) This is all part of the revolution in which mobile technology is transforming what we do Adrian Van Klaveren, Head of Newsgathering, BBC News This tool provides us with a great back-up device. It will be at its most valuable when an unexpected story breaks, conventional video crews maybe hours away and for the first time we can generate video from a mobile phone in high enough quality to broadcast on our news programmes and enhance our reporting. Justen Dyche, Project Manager and News Director, BBC News Bus crash in East Yorkshire before the arrival of the satellite truck 24 NOKIA T.Poikolainen/May 2004

25 Service evolution opens large number of opportunities photo and audio messaging video messaging Push-to-talk Real time video sharing Person-to-person services Basic browsing, rich terminal personalization Basic applications Short videos Enhanced browsing, versatile applications Full Internet browsing experience, high-value videos Content-to-person services Secure corporate connectivity Messaging and mobile e- mail Improved performance and usability for SMEs Business services 25 NOKIA T.Poikolainen/May 2004

26 We have seen the phenomenal growth of SMS Monthly SMS traffic Millions Source: EMC/Nokia 26 NOKIA T.Poikolainen/May 2004

27 changing consumer behavior takes time 27 NOKIA T.Poikolainen/May 2004

28 28 NOKIA T.Poikolainen/May 2004 but this change has started

29 29 NOKIA T.Poikolainen/May 2004 THANK YOU

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