Virtual SIM cardA brand-new technology in mobile telecommunication

2. Working principle

A core principle of this technology is to multiplex identification data from SIM cards of different mobile service providers combined in one virtual SIM-card.

Switching over from one mobile service provider to another is controlled by a special software which is installed on the virtual SIM card.

Conventional SIM/USIM-card

Virtual SIM-card

NEIRON.COM LTD

3. Physical Medium

A UICC-card that supports SIM/USIM or fits a conventional SIM-card may serve as a physical medium of the virtual SIM-card. In both cases they require a Java Card standard.

NEIRON.COM LTD

4. Java application

A Java application is a core of the virtual SIM card. It is responsible for algorithms of switching over between loaded SIM cards of different mobile service providers as well as for algorithms of loading new SIM-cards from a special server where they are stored.

NEIRON.COM LTD

5. SIM card loading

Loading a SIM card means receiving data for the Subscriber’s authentication in a mobile network of a new mobile service provider with assignment of a new phone number. These data may be transmitted as an encoded data package via SMS or Internet.

NEIRON.COM LTD

6. SIM Server

New SIM-cards are loaded from the SIM Server after a Java-application request. Nature of this request will be defined by an algorithm encoded in the Java App. If it’s necessary the User can manually load a new SIM card using one of the functions of his/her profile.

NEIRON.COM LTD

7. Numbering Capacity

To provide functioning of this technology the server is required to store data of a sufficient number of SIM-cards of different mobile service providers. To obtain these SIM cards it’s necessary to conclude with each mobile service provider the Agreement for numbering capacity provision and for registration of SIM-cards’ identification data in mobile networks of service providers.

NEIRON.COM LTD

8. Switching over domestic mobile service providers

One of mobile service providers registered on the virtual SIM card functions as a main service provider and others are used as stand-by. When a signal of the main provider is poor the virtual SIM card automatically switches over to one of alternative SIM cards of stand-by providers, connects to and registers in their network. Thus, the subscriber is always available. As soon as the main provider signal is strong the virtual SIM-card switches the subscriber back. Therefore, the subscriber can be available even if the main provider’s signal is poor or out of coverage at all.

NEIRON.COM LTD

9. Switching over abroad

When the Subscriber is going to another country the SIM Server offers to load a SIM card of a service provider of the country which the Subscriber travels to. The Subscriber receives the information on local rates by SMS or through the mobile application. In case the Subscriber agrees to communicate at local rates he or she receives a new SIM-card and registers in the new provider’s mobile network as if it is in its home region.

Manual loading of a new SIM from the user’s profile performed beforehand is an alternative way of switching.

NEIRON.COM LTD

10. “Unified Number” issue

To register a new provider in the network the Java Application every time activates a new SIM-card . Thus, a phone number of the User’s virtual SIM card is also changed. Friends and colleagues don’t know the User’s number and, therefore, they will be able neither to call him/her nor identify an incoming call.

NEIRON.COM LTD

11. Solution of the identification problem

The problem of incoming call identification when using a mobile device with the virtual SIM-card can be solved through updating a contact list of the Subscriber receiving the call.

Method 1 Current information on all phone numbers is stored in the User’s profile which can be accessed on-line. The SIM Server automatically adds new numbers to the User’s profile. Friends and colleagues of the Virtual SIM-card holder have to install a special software on their mobile devices. In this case new phone numbers will be automatically loaded to the contact list through the Internet.

Method 2 Current information on all numbers is stored on the SIM Server. Having received a new number the SIM Server sends recently updated electronic ID information in the vcard format to friends and colleagues subscribed to this updated data. The Vcard may be sent via SMS/MMS or via Internet. This method does not require installation of the special software to friends and colleagues’ mobile devices.

NEIRON.COM LTD

12. Solving a call completion problem

A problem of reaching the Subscriber using the Virtual SIM-card can be solved by setting up call forwarding from all non-active SIM-cards to the active one.

Setting up of call forwarding may be implemented by the SIM Server and does not overload the Subscriber’s mobile device. A command to set up call forwarding is sent by the mobile device right after Subscriber’s registration in a new mobile network.

NEIRON.COM LTD

13. Advantages for the Subscriber

The virtual SIM-card technology gives the following opportunities:

To expand considerably a coverage area in a domestic mobile service provider’s zone due to elimination of coverage areas with low signal strength (“coverage gaps”);

To save subscribers from expensive voice roaming charges and help them to communicate at local phone call rates in any country;

To save subscribers from expensive data roaming charges and help them to transfer data at local rates regardless of country of stay.

1.2.3.

NEIRON.COM LTD

14. Convenience

To make it convenient for Subscribers to use telecom services with implementation of the Virtual SIM-card technology it is required to provide them with:

Convenient replenishment of accounts of mobile service providers supporting and implementing the virtual SIM-card;

Convenient control of write-offs from the Subscriber’s mobile account.

Convenient system of notification on rates of a current mobile service provider;

The “one contact” principle to provide consulting and managing of conflict situations.

1.2.3.4.

NEIRON.COM LTD

15. Replenishment of mobile accounts

The virtual SIM-card technology is aimed at the Subscriber’s usage of telecom services provided by several mobile service providers. In case of the Prepaid system the Subscriber will have to maintain settled cash balance on accounts of all providers whose mobile services he or she uses. It is very inconvenient for the Subscriber.

The solution is creation of a Subscriber’s Unified Account with post-payment for every call. The Subscriber doesn’t have to replenish an account of each mobile service provider but the Unified Account that may be accessed by all service providers supporting the Virtual SIM-card.

The service provider writes off money from the Unified Account after termination of every call.

NEIRON.COM LTD

16. Managing write-offs from a mobile user account

A report on write-offs from the Unified Account is a service additional to the aforesaid account

This report consolidates billing data of all mobile service providers used by the Subscriber with the virtual SIM-card.

NEIRON.COM LTD

17. Notification on rates

The most convenient option for Subscribers is provision of unified tariffs or pricing schedules by all mobile service providers implementing the Virtual SIM-card

However, in some cases it will be impossible. Before loading SIM-card data of a service provider whose tariff differs from the unified tariff the Subscriber will receive SMS notification on rates or messages via special mobile application.

Loading of the SIM-card will be performed after User’s confirmation to communicate at this rate.

NEIRON.COM LTD

18. “One contact” principle

Notwithstanding the fact that the Subscriber uses services of several providers the Agreement has to be concluded only with the domestic mobile service provider.

Thus, the Subscriber doesn’t have direct contractual relationship with stand-by providers and all terms of cooperation shall be regulated by Agreements between the domestic mobile service provider and Neiron.COM LTD.

This approach allows implementation of the “one contact” principle engaging the domestic mobile service provider to manage all Subscriber’s issues which is very convenient for the Subscriber.

NEIRON.COM LTD

19. Advantage No.1 for the domestic mobile service provider

Establishment of an exceptional loyalty program that would ensure operating with better domestic mobile coverage and prevent subscribers from switching over to another service provider on psychological grounds.

NEIRON.COM LTD

20. Advantage No. 2 for the domestic mobile service provider

The Virtual SIM-card technology allows increasing cash flow due to financial compensation* paid by the stand-by provider and by the foreign provider after subscriber switches over to their network.

*a compensation rate is 30-50% of the total tariff amount.

NEIRON.COM LTD

21. Advantage No. 3 for the domestic mobile service provider

The Virtual SIM-Technology allows luring the most active and lucrative Subscribers of competitive mobile service providers.

(These Subscribers are as follows: frequently travelling people, people with higher demands to stable mobile communication).

NEIRON.COM LTD

22. Motivation of the stand-by provider

When the Subscriber is in areas of poor signal coverage of the domestic provider he or she automatically switches over to the stand-by provider and uses its mobile network.

Thus, the stand-by mobile service provider receives revenue from customers serviced by the domestic service provider.

NEIRON.COM LTD

23. Development stage

At the moment we have developed more than just a technology. We have created a mobile device prototype with the virtual SIM-card.

We also had our prototype successfully tested at Ural branch of the Open Joint Stock Company Rostelecom, OAO which is confirmed by the Exam Protocol No. 1 dd. September 09, 2013. We have also obtained Patent No. 2011141313 for this technology which is valid in the territory of the Russian Federation. Obtaining of an international patent is in process.

NEIRON.COM LTD

24. Task sharing

Functions of mobile service providers are as follows: To provide numbering capacity and register SIM-cards in networks

To allow setting call forwarding at the SIM server request.

To interact with the billing server of the virtual SIM-card (writing off from the Unified account, notification reports on writing off)

To provide consulting support for virtual SIM users.

Functions of LTD Neiron are as follows: To produce virtual SIM-cards

To manage and maintain SIM-server

To manage and maintain the Billing server

To conclude and support Agreements with domestic mobile service and stand-by mobile service providers

NEIRON.COM LTD

25. Introduction of the technology

We expect to introduce the technology as a special telecommunication tariff focusing on active mobile service users who have higher demands to the quality of mobile telecommunication and on frequently travelling subscribers. Advertizing and promotion of this tariff are expected to be implemented through marketing channels of the domestic mobile service provider.

In the longer term, all mobile telecommunication users may use this technology.

NEIRON.COM LTD

26. Terms of provision of the technology

Forms of technology transfer:

Long-term leasing of the technology with exclusive rights of domestic mobile service provider in the territory specified by the Agreement with provision of an access to the billing server.

Compensation for leasing of the technology :

• Line rental of 50$ for subscribing to the tariff

• 1% of income amount earned from tariff subscribers

NEIRON.COM LTD

27. Future development

The architecture of the virtual SIM-card allows storing an electronic digital signature (EDS) of the Subscriber and create electronic applications supporting the EDS identification.

These applications may be implemented in numerous spheres starting from state services, bank services and public transport cards to on-line shops providing one-click buying.

This sector promises a large number of development prospects for a new segment of e-commerce monetized by the commission fee from every transaction.

NEIRON.COM LTD

28. Development prospects

Thus, as a result of development of the Virtual SIM-card it will be transformed into one universal memory card including all package of daily tasks required by the customer: telephone calls, Internet, purchases, payment of taxes and fines, financial transactions, communication and training, etc.

NEIRON.COM LTD

29. Development prospects

A final step of the Virtual SIM-card development will be accumulation of data on Customers’ actions including geolocation, purchase history by means of e-commerce, interests and hobbies.

These data will allow creating an individual profile of personal development of each Customer and form market channels of a next generation where product offerings will be based on actual and recent information on current needs of the Customer and on forecasting his or her varying preferences.

NEIRON.COM LTD

30. Project products

We are focused on several key products that may be placed on the market both together and separately and may be offered to subscribers with different needs. These products are as follows:

1.DATA ROAMING . This product allows using data transmission service when the Subscriber is going out of a domestic provider region, at rates of a mobile service provider of the country he or she goes to. 2.VOICE+DATA ROAMING allows using voice telecommunication and data transmission services when the Subscriber is going out of the domestic provider region, at rates of a mobile service provider of a country of stay. 3.VOICE+DATA REGION – allows considerable extend of good coverage area inside the domestic region due to switching over to stand-by service providers in areas with low signal strength.4.EDS allows obtaining an electronic digital signature on the SIM-card and perform transactions using it.

NEIRON.COM LTD

31. Project team

Project manager:

Dmitry Gorbachev

+7 908 085 48 00 ‐ ‐E-mail: gorbachov@list.ruSkype: gorbachev-dmitry

NEIRON.COM LTD