alcatel lucent mobile wallet service - gsma mobile money summit 2010

Mobile WalletsBarriers and Opportunities to Revenue

Growth and churn reduction for MNO

By 2015, 1.4 billion people will be using mobile wallets - Edgar Dunn Company

2 | Touchatag |August 2009 All Rights Reserved © Alcatel-Lucent 20092 | Alcatel-Lucent MWS |March 2010

Alcatel-Lucent at a Glance

R&D PROFILE

Budget: €2.5 billion

Active Patents Held: More than 26,000

APPLICATIONS PROFILE

Subscriber data management: 190+ customers

Real-time payment customers: 210+ customers

20K+ services professionals

Ben VerwaayenChief Executive Officer

• Worldwide Presence: More than 130 countries

• Annual Revenues: €15.16 billion (2009)

• Employees: More than 77,000

• Employee Nationalities: More than 100

3 | Touchatag |August 2009 All Rights Reserved © Alcatel-Lucent 2009

Global but regional (country) specific STARTING point

Emerging Developed

Applications

Mobile money transfer

(P2P,P2B, G2P)

International money transfer

Coin replacement (parking, vending)

Proximity payment and marketing (loyalty & couponing)

Agent / Merchant network

MNO airtime agents

MTO network agreement

Bank / Post agreement

Innovative services (payment+ APIs): e.g remote ordering

Partnership with CC (issuing) or acquiring networks

RegulatoryBank lead regulation

Mirrored SVA

eMoney license

Mirrored SVA

SIM rental

TechnologyConvenience on low feature phone

Low cost & ubiqitous security Smart Phone and App Stores

Model B2C B2B2C / B2C

Hi Ch risGive me a ca ll before 11AM.John

**Advtxt**This Summer - Travel CaribbeanReal Adventures: Incredible Vacat ions & Great Gatewayswww.caribbean.co m

Hi Ch risGive me a ca ll before 11AM.John

**Advtxt**This Summer - Travel CaribbeanReal Adventures: Incredible Vacat ions & Great Gatewayswww.caribbean.co m

€ €


Hi ChrisGive me a call before 11AM.John

**Advtxt**This Summer - Travel CaribbeanReal Adventures: Incredible Vacat ions & Great Gatewayswww.caribbean.com

Hi ChrisGive me a call before 11AM.John

**Advtxt**This Summer - Travel CaribbeanReal Adventures: Incredible Vacat ions & Great Gatewayswww.caribbean.com

Alcatel-Lucent Mobile Wallet ServiceVision 1.4 billion wallets for banked and un-banked by 2015 (EDC, 2009)

Proximity payment

Remote ticketing

Mobile marketing

E- and M-commerce

Person to person paymentInternational remittance

Convenient, always on and integrated payment and marketing (wallet 2.0)

Access to financial services in under-banked countries


Alcatel-Lucent Mobile Wallet Service (MWS)For developed & developing countries

Proximity payment, loyalty & marketin

g


g

Person to person money

transfer


transfer

Remote ticketingRemote ticketing

Online micro-

payment

Online micro-

payment

Mobile Application

Contactless

SMS

USSD

WEB

gateway

INTL remittanc

e

INTL remittanc

e

Bill payment

Bill payment

Telco

Bill

CashIN/Out

agent

MWSMWS

APISMP

ACS SVA

wallet

MWSMWS

APISMP

ACS SVA

wallet

SaaS

Stored Value Application

Loyalty & Couponing

PCI Payment Gateway / SEPA

direct debit

Mirrored SVA

Rating & Billing integration

APIs


MNO 2

Developed marketsImportance of enterprise packages in B2B2C approach


g


g


transfer


transfer


Online micro-

payment

Online micro-

payment

MNO 1 Transport

Parking

Vending

Gifting

Retail fidelity

Mobile Application

Contactless

SMS

USSD

WEB

Payment gateway

Mobile Wallet Service

Mobile Wallet Service

Portfolio of Payment applications

E-store

….


API ExposureAPI Exposure

API Provider ManagementAPI Provider ManagementPrototyping/TestingDeveloper SupportDeveloper Support PublishingPublishing

Developed & developing marketsImportance of APIs

Location, Contacts & Presence

Location, Contacts & Presence

Application Enablers

Mobile WalletMobile WalletAuthentication –

Know Your Customer – SIM management

Authentication – Know Your

Customer – SIM management


g


g


transfer


transfer


Shopping list &

remote order

Shopping list &

remote order

SocialSecurity Pay-out

SocialSecurity Pay-out

Bill payment

Bill payment

Airtime top-upAirtime top-up

Loan repaymen

t

Loan repaymen

t


Application

Index Score*

Top applications

Mobile Video Monitoring 3

Two-Way Video Calling 3

HD Music Access 2.5

Info. Delivery Based on Your Location 2.5

Mobile phone as a Wallet 2.5

Movement Based Games 2

Multimedia Mailbox 2

Medium appeal

Mobile Social Networking Access 1.5

Photo Enabled Search Engine 1.5

Shared Music 1.5

Group Video Conferencing 1

Mobile Virtual Reality 1

Multimedia Ringback Tone 1

Product Specific Information Access 1

Multimedia Shared Calendar 0.5

Online Content Sharing Portal 0.5

Content Access From Multiple Digital Devices 0

Mobile Crowd Casting 0

Real-Time Content Sharing 0

Less appeal

Application

Index Score*

Top applications

HD Music Access 3

Mobile phone as a Wallet 3

Mobile Video Monitoring 3

Information Delivery Based on Your Location 2.5


Mobile Social Networking Access 2



Two-Way Video Calling 2

Medium appeal

Movement Based Games 1.5


Shared Music 1.5

Multimedia Shared Calendar 1

Content Access From Multiple Digital Devices 0.5

Multimedia Ringback Tone 0.5


Real-Time Content Sharing 0.5


Mobile Virtual Reality 0

Less appeal

4G/LTE European Market Research 2009 - Mobile Phone as a WalletAlcatel-Lucent Market Advantage End-User Research

Application

Index Score*

Top applications


HD Music Access 2.5

Mobile phone as a Wallet 2.5

Mobile Video Monitoring 2.5

Movement Based Games 2.5

Two-Way Video Calling 2.5



Medium appeal

Multimedia Ringback Tone 1.5

Shared Music 1.5

Information Delivery Based on Your Location 1

Mobile Social Networking Access 1

Real-Time Content Sharing 1

Mobile Virtual Reality 0.5



Content Access From Multiple Digital Devices 0


Multimedia Shared Calendar 0

Less appeal

% ranked 1st

Average monthly

price

15% 3.2 Euro

17% 2.5 Euro

14% 4.2 GBP

Extremely/Very InterestedQuite InterestedNot Very/Not At All InterestedMobile

Phone as a Wallet

Key Findings

Mobile Phone as a Wallet

Key Findings

“All EU citizens should be able to use their mobile phone as a mobile wallet by 2015”

EC VP for the digital agenda – Neelie Kroes, May 2010


Conclusion

1. Different starting application pending on consumer interest

2. Different go-to-market options

B2C for P2P

B2B2C approach via Vertical solutions (parking, retail, governmental agencies,..)

3. Make Money (ARPU by subscription/transaction) – KEEP Money (churn)

4. Open APIs to surround m-wallets with 3rd party VAS

5. From SIM rental, mirrored SVA up to eMoney license

10 | Touchatag |August 2009 All Rights Reserved © Alcatel-Lucent 200910 | NAR Business Development | November 2009

www.alcatel-lucent.comTHANK YOU

http://www.alcatel-lucent.com/mws

Proximity Payment Proximity loyalty and marketing

E- and M-commerce

Remote ticketing Person to person money transfer

International remittance