1. Integrating mobile with other media Opportunity for mobile operators and the role they should play Reg Cox

2. For this interview I looked at several opportunities for mobile operators to integrate mobile with other media

Voucher redemptionis store

Sponsored alertsto consumer base

Smart posters

Access controlsystems for car parks and buildings

Self payment for shoppingin supermarkets

1 2 3 4 5 Opportunities Considered Preliminary read-out

Merchant infrastructure and phone capability in place today

Propositions such as Vodacomss call me will require significant back end integration

Will require NFC enabled phones and a smart poster ecosystem

Again will require NFC enabled phones

Will require bar code scanner capability on terminals and ecosystem involving banks

Make use of existing capability in the high street and back end systems along side significant mobile operator investment in handset subsidy

Focus of todays discussion Reg Cox 3. Orange may be able to pull together a commercial proposition but the industry still has a long way to go, operators such as orange need to continue to push on four wider agendas Reg Cox 4. Voucher redemption in store is a short term deliverable proposition with all ecosystem players technically ready to go Reg Cox Selects free coffee and any other items Teller types voucher number into PoS terminal Voucher validated and receipt printed 5. Voucher redemption in store can be more compelling and offer a better UE with the advent of NFC and new ecosystem players 1. Tap poster 2. Claim coupon online 3. Redeem coupon at POS Reg Cox 6. What is really important is that Orange develop this proposition around the fundamentals of advertising

Advertiser pays per user interaction

Consumer is targeted at Point of Purchase

Real time personalisation of offers

Viral nature of promotion can be encouraged, e.g. pass voucher to friends

Merchant can learn and adapt the campaign in real time

Reg Cox 7. Orange are leaving money on the table by not pursuing this opportunity Telecoms market matrix WE 2009 (Millions) -Analysis Mason 2010 Potential voucher redemption opportunity for Orange 84m p.a. by 2014 $625m Europe 2011 mobile redemption 10xGrowth2014 Value $100m Global Voucher redemption 2011 (Millions) -Juniper Research 2010 Assumed Coupon revenue share of 10% (~Cost of handling coupon) Target 25% on mobile Mobile advertising growth rates -Strategy Analytics 2009 Reg Cox $1bn Value of coupons redeemed on Orange 8. Recommendations for delivery of voucher redemption in store commercial proposition

Programme set up and exec sponsorship

• Start June

• Scope and ecosystem design

• Budget

• Looking for results by end Autumn 2010

Actively seek ecosystem partners

• Technology / concept partners willing to invest

• Internal technology teams impacted by trial

Business Development

• Identify and approach brands and advertising agencies (enterprise sales)

• Business model approval

Not close enough to understand

• Understand role of Barclaycard

• Global v UK enabler access (Targeting enablers etc)

• NFC technology readiness

• Open or closed pilot (GSMA / MNO)

• Privacy concerns

• Other Operating companies in FT Group

Reg Cox