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What’s Really Going on in Mobile & Why Africa Is Ahead of the Game

Bill Wolfe

Chief Strategy Officer, Clickatell

November 13, 2013

Evolution of Mobile Services

CONFIDENTIAL 2

Mobile

Service

Evolution

Moneti -

zation Models

(MNOs,

Aggregators,

Enablers)

Voice

Communication

(Synchronous)

Mobile Phones for

synchronous voice

telephony; initial

growth of SMS in

EU

Dates

Mobile Phones

become ubiquitous;

exponential growth

of SMS; First clunky

smart phones

1990 - 2000 2000 - 2007

Milestones 2002: US

SMS

Interconnect

Per minute billing;

per message billing

by operators;

almost no VAS

2008 - 2012

Ubiquity of Mobile

& SMS Messaging

(Asynchronous)

Packages and

Bundles; SMS

packages; VAS

bundles; per msg.

billing for A2P SMS

“BYOD”

Proliferation of

Smart Phones &

Tablets

Smart phones have

exponential growth;

apps &cloud” are

born; rise of OTT

msg.; “ BYOD

becomes standard

Flat fee App billing

becomes standard;

commoditization of

SMS messaging

progresses

2013 - ???

“Bring Your Own

App” Proliferation of

Apps & more devices

Apps will become

ubiquitous; SMS no

longer only means

of ubiquity; rise of

app enablers; HW:

“Internet of things”

Per msg. billing is

dead; freemium+,

flat fee models,

analytics and geo-

based advertising

The Mobile Web is Dead – Mobile Solutions are Alive and

Well

CONFIDENTIAL 3

The web was not designed for mobile

• Keyboards, large screens, mice

Mobile –

virtual keyboard interaction

tiny screens

mice???

• Rich media design, Flash, multiple nested pages

Mobile –

simple solutions

A web based paradigm actually slows users engagement for mobile

Why is the Jump Start Direct to Mobile Important

CONFIDENTIAL 4

• Broadband is actually a drag on mobile enablement

• Rich “keyboard and screen” designs do not adapt well to mobile

• Wrong screen size

• Multiple incarnations required, making creation and maintenance more

expensive

• Broadband is expensive

• Network cost for operators and users

• Device cost for users

• Mobile is the user preference (operators too)

• Key monitizable values are enhanced with mobile, diminished in broadband

• Geo location

• Transaction on demand

• Only mobile appeals across the economic spectrum and is consumable by

everyone

• Built in transaction capabilities

Mobile is a Long Tail Technology

CONFIDENTIAL 5

Communication

Transactions

Appliffication

Tools

Value Exchange

Notify

Identity

CRM Push Notifications

Communities

Payments

SMS

Authentication

Loyalty

Multiple overlapping phases

• Simple services

• Early network engagement

• Inexpensive smartphones – removing the

device barrier

• WiFi plus traditional mobile – users adapt

• Applification – end users, business win

GT Bank VTU Solution (Nigeria)

An immersive mobile experience.

The first of its kind in Nigeria.

VTU (virtual top-up) is the most popular product/service used on the Mobile

banking App.

It is convenient, trusted and pinless and can be loaded onto any Nigerian

cellphone account specified by the App user.

Exponential sales growth since the launch.

VTU provides an additional revenue stream that contributes funds toward

the cost of developing and maintaining the App.

VTU is not just a product, but also a reward and promotional mechanism.

Using the App is a cost effective solution for the client

Conclusions

CONFIDENTIAL 7

• World-wide we are exiting the phase of fixed Internet and moving into the stage

of mobile Internet

• Smart Phones will dominate, BYOD

• Desktop to pocket – always on to always engaged

• Geolocation search and presence are increasingly important

• We are moving from web centricity to app centricity – mobile has inherent

components today

• Multiple delivery options, off line apps generate desire for on line engagement

• Stored value for many services – Airtime, VTU

• Low cost devices make the desirable obtainable

• Mobile has moved from a singular delivery vehicle to cornucopia of user

available options

• User acceptance and preferences – dual use of devices

• Geographies tend to center around a particular solution

• The long tail of mobile deliver means carriers can engage early and drive

experience

• Free wins!!

Why Africa Is Ahead of the Game

CONFIDENTIAL 8

• MNOs, Business & End Users understand and trust how an immersive mobile

experience works

• GT Bank

• The region will not go through the confusion of transitioning from

web/broadband centricity to mobile

• Focus on service, not just device

• Current engagement will drive more desire, with more options

• Hybrid Mobile/WiFi

• Low cost devices removes the barrier

• Transaction on demand is not new for consumers

• Unprecedented room to grow both horizontally and vertically

• 253M subs today growing to 346M subs by 2017 *

• Penetration is still at only 31% *

• Prepaid data utilization continues to grow

• Emerging applification experience & low cost smart devices * GSMA report as cited in China Post November 13, 2013

CONFIDENTIAL 9

Questions?

& Thank You