i Park London Services Korea Roadshow Oct

i. Park London – Services Korea Roadshow Oct 2004 • Telecom / Wireless • Market Intelligence and Opportunities • EU, Europe and Middle East • Korean IT Promotion Agency (KIPA) • i. Park London –Alliance and Business Manager • Jim O’Reilly Joreilly@iparklondon. com

Europe and Middle East- Fragmented Market with Opportunities

Deep and Qualified International IT Business Experience • Jim O’Reilly • i. Park. London Korean IT Alliance and Business Manager. 16 years in IT/Telecoms Management. • Lived and worked in IT Venture in Korea (1999 -2002). • Supported approx 40 Korean IT Vendors across different sectors in 11 countries in EU, CIS, Middle East.

About i. Park London • Single point of contact for large Portfolio of Korean IT Vendors seeking Business in Europe • Create Alliances and Partner opportunities for Korean IT Vendors with Horizontal and Vertical Markets • Prepare Korean Vendors for Sales and Marketing , Business and Sales Channel Development and Demand identification in Europe. • Act as Sales Lead prospecting and Generation Team • Establish Service Providers (Logistics, Pre/Post Sales Support) • Plan Events and Engage Partners at Exhibitions • Seek Projects and Create demand via PR and Evangelizing • Physical and Legislative services for Portfolio companies resident in i. Park.

i. Park London Resident Com 2 us • Mobile Digital Content Developer • Before i. Park Early revenue, Existing relationships with UK • Vodafone reference • One Person working from Home • Need for speed and build on early success • Challenges Limited resource, Global commitments, Continuity and follow up were a problem

Com 2 us Action Plan • Worked closely with i. Park Digital Content Manager to deliver : • Tenancy Agreement • Identify and action new opportunities via intensive Telemarketing programme. • Maximise existing contacts for meetings • O 2, Orange Vodafone, T Mobile, aggregators. • Explore Brand opportunities e. g. Agassi Tennis, other EA opportunities. • Attendance at European Events • Passport, Company registration, Work Permit , Legal Support • Portal Development • Research • Purchasing of Company resources

Com 2 us Current Status • Fully serviced office –London • London has multi-lingual population and great access to major European cities • Expanded Team, UK Managing Director, Multilingual • Marketing Manager, UK Games developer/QA • Further ongoing relationships with all major operators • Ongoing PR and Editorial • Increasing Revenues

This is the most important message Today

Why Alliance and Partnerships • From personal Korean Venture experience – Alone is brave but not always the most achievable option • Telecoms/Wireless Sector – Decision makers want to reduce the number of points of contact. and simplify. • Need to Reduce Cost of complexity- Due to many new handsets, platforms etc – Forming Alliances e. g Java Verification Program across Europe Operators • Convergence of devices- Handsets for TV, Streaming, Wifi, VOIP

Alliances • Strategic Alliances Global Content Providers have Data revenues but their management teams are still small but growing. Some operators prefer aggregators/service providers to manage relationships and impact of new technologies. • E. g Vodafone- AMS Mobile Games Aggregator in UK • E. g. Mforma Global Publishing and applications • Looking for Early stage partnerships. Even at Chipset design and Production • E. g ARM, Qualcomm, TI example HDTV to handsets.

International Soft Landing – Door Opening Support Strategies • To help you make deals , the i. Park approach can compliment your offer with related market stories and related portfolio solutions to gauge initial interest softly , before introducing your product and solution. • This is particularly valuable when approaching Telco’s and Carriers when meeting opportunities are rare and Sales lead times long. • We can also maximise existing relationships to be accurate, prevent sales conflict and show we respect the Euro Partners Development schedules and timelines. • Even Tiger Woods has a Coach

Rules of the Game • i. Park invests time to find out the rules of doing business with the large partners to understand the decision making process and uses this to support the Korean Vendor strategy and targeting. • Partners share with us because we represent a large world class portfolio of Korean IT Vendors with mass market revenue potential. • We can save them time and money by supporting the whole Business cycle. • Try the Market – Hot desk opportunities- Use London as a Cheap access Hub to Europe for an intensive short period.

Wireless Issues • • • Marketing Devices, UIs, Browsers Quality Interoperability Regulation WLAN Impact Value Chain Evolution Changing Ecosystem Enterprise Level Wireless Solutions Wireless-Wireline Displacement

KIPA/i. Park Digital Content Channels i. Park. London has relationships with the European Operators Process & Role Step / Player Establishing Channel Selecting Content Localization & Customization Marketing & Service Operator (Carrier) Make the Channel On SVC Portal Select content QC on Localized content Service the content KIPA/i. Park Agreement with The Operator Aggregate Applicant content Supporting Localization cost Supporting Marketing Cost Propose Content for the Channel Localizing & Customizing Selected Content Revised content CPs Output Mobile Channel on WAP/WEB of Oper. Revenue

3 G-UMTS

UMTS Roadmap

Excellent Research at www. umts-forum. org (show 3 G –Roadmap pdf)

Wireless Best of 2004 Games UK • • Best Mobile Game - Fatal Force- Macrospace • • • Others. Pat Cash Pro Tennis –Kuju Balloon Headed Boy-Morphene MX Unleashed-THQ Unleashed Cannons Tournament-Macrospace( **Multiplayer) Pub Pool-lomo Lemonade Tycoon-Jamdat Jumbo Rumble-Sumea Interactive FIFA 2004: Mobile International Editor. Distinctive Developments Splinter Cell: Pandora Tomorrow. Gameloft • • •

Wireless Best of 2004 Awards UK-Phone and apps Phone of the Year-Winner Nokia 7610 Others Samsung D 410, Samsung E 800, LG U 8110 (Best 3 G phone mass market phone) Best Handset Retailer –Carphone Warehouse. Others O 2 Stores Best Mobile Service –AQA Any Questions Answered (www. aqa. issuebits. com) Others Paspic –Online photo booth (www. paspic. com), Phone. Saved (www. phonesaved. com), backup your phonebook. Mapaphone LBS maps etc Best Network Operator –Orange Best Network Portal O 2 Active , O 2 Revolution is also interesting

Wireless Best of 2004 –PDA -accessories UK • • Best PDA/Handheld. Dell Axim X 30 Others Palm Zire 72, HP i. PAQ h 2210, Toshiba e 800, Sony Clie PEG-UX 50 • • Best Smartphone Sendo X Others Nokia 6600, SPV C 500, Sony Ericsson P 900, Siemens SX 1 • • Best Accessory Motorola Portable Wireless Speaker HF 800 Others Panasonic EB-BHX 70 -Bluetooth headset, Nokia 610 Car Kit, Bluespoon Digital –Headset, O 2 DMP , Digital Media Player

Summary -How does i. Park Work with Europe Wireless Operators • Digital Content Search for new Genre content- e. g Girls , Network Gaming, 3 D • Understand future technology roadmap and match content to specific handsets • • Korean Vendor Roadshows 1: 1 events e. g London Sweden Regular content portfolio updates • Wireless Apps- Market driven • Identify and work with Project Managers, Revenue stories first. R&D and Project Managers second • Hardware/Software Retail and Distribution ( Examples)

Telecoms-Networking

June 2004 DSL 79% penetration in the EU Region -Total 23. 24 Mn, All Broadband 29. 6 Mn Ref ECTA- See Spreadsheet for more details

Jun 2004 DSL EU 25 Countries

West Europe Influences East • Its not as simple as looking on the Map • Each country has its own unique Telecom opportunities and also a number of related Business networks which are not always obvious. • • Deutsch Telecom owns Hungarian Telecom Turkish Telecom owns Bulgarian Telecom Greece Telecom has stake in Armenia France Telecom has stake in Polish Telecom

Market Affects • Some Network Managers in East buying decisions are controlled by Western parent. This is also a good indicator of strength of Foreign investor and preferred partner strength in that country. • E. g. Poland-France Telecom connection , Sagem (France) are also pushing USB ADSL modems at low prices. Uptake of other Gateway and IP devices affected as USB has no extra ports for extra devices. • • With smaller countries –track and research projects via Finance sources. E. g. World Bank/EU supported E. g. Lithuania • Fragmented Markets can mean opportunity for Korean Small and Medium Vendors

i. Park Telecoms Country Knowledge and Missions for -2004 • Turkey About to deregulate. Istanbul 12 million-Population- Some similarities with Korea. 75% of population < 35 • Lithuania – • Poland – • Broadband increasing, ISDN dominates. Like local technologies UK – • Low internet penetration. GSM Network. Government may drive Broadband Germany – • Mature trials of Triple play and Gateways , Broadband maturing Yemen – • Broadband VOIP increasing France – • Polska Telecom dominates- slow uptake for broadband- France influence Hungary – • New entry into EU –at beginning of broadband cycle Broadband take up increasing , ISP’s looking for value added applications Ireland – Dublin and Cork are tow main cities with potential

European Network Intelligence –DSLAM • British Telecom recently signed with Marconi for NGN. Looking for Value added applications for softswitch • In the past foreign /(chinese) vendors have fallen at first stage by not meeting the specs. Now they are much better prepared and price competitive • France Telecom strong with Alcatel

Metro Ethernet • Requires a lot of education in the Market because the buyers are Regional and not always as technical e. g Local Government • - New Budgets, therefore and Case studies from Korea will be very important-e. g. Councils , Housing associations Sales strategies are evolving and it’s a long sales cycle.

Enterprise In some respects Eastern and Western European markets have similar buying habits. The Network Managers in Poland are educated and like to buy high end – e. g. Cisco • Gov influence in promoting broadband - similar to Korea in Sweden, Finland • General Requirements are for Gigabit on back bone and 100 Meg at PC • Volumes in the market are there. • The fact that Cisco offers proprieraty technology does not matter to some buyers. • Resellers do not make much margin on Hardware, they make the money on the services. • Therefore as a vendor you need to have very good local presence and support. • Early adopters are still there where functionality and price is good

What are Service Providers Spending On (A-I) ?

What are Service Providers Spending On (J-Z) ?

Network Research • http: //www. itu. int/home/index. html • http: //www. lightreading. com/ • http: //www. 3 gnewsroom. com/html/whitepapers/year_2004. shtml • i. Park KIPA Research on Networks and providers

i. Park/KIPA generate Strategic Relationships and Sales Enquiries. • Keep KIPA/ i. Parks informed • We need to be constantly updated to who the best Korean Vendors are on Sector by sector basis. • We can then match demand with your ability. • Make sure we know your best Sales stories. Marketing and Technical information.

Recent Product /Sales Enquiries via i. Park • Micro DSLams- Price per port competition $22 upwards- Upward and scaleable path of Related products is important • T 1/E 1 Routers – Must have CE Mark • Home Gateways –Bluetooth/Wifi- Convergence is key • VOIP/SIP Gateways • VOIP SIP /MGCP Phones- Partner ability • IMS Terminals and accessories to add to Home Gateways

Convergence- Fixed /Wireless Consumer devices Korea Goal for 10 million Smart Networked homes by 2007 • We are interested to know what you are doing in this area • Similarly is your company involved with Wide Broadband Wi Bro? • What is happening with Bluetooth in Korea ? • i. Park would like to promote and make strategic partners for you in this area as early as possible.

Networking Company Profiles Cisco , Zy. XEL • What does a good Model Look like- ? • 90% of 20 bn through 40, 000 Cisco partners • 4600 sales leads generated 108 m in Small and medium business and 23 m in Enterprise. • For low price competition then track Zy. XEL

Zy. XEL • Zy. XEL’s products are available through multiple channels in many countries around Europe. Pricing varies widely. For the P 791 R SHDSL bridge/router CPE, for instance, rrrp € 211+VAT ($260, via distributor in Germany), rising to $360 in the UK. With discounting of 45% off these levels then approx distributor pricing in Europe is in the order of $143 for this model. Grey market pricing is possibly as low as US$120. • Zy. XEL’s 16 -port IES-1000 (with 2 x SAM-1008 8 port modules) DSLAM sells into the distributor channel as low as US$2000 fullyloaded.

Sales and Marketing • Join teams –similar to those that succeeded on joint projects in Korea • Agents and partners can give you independent scalability and speed, versus more profit margin. • Going alone may reduce the size of the opportunity and reduce the time window against competition • Revenues - Be Realistic – At the start then one sales and marketing person per 1 Million dollars of business in a year in Europe is extremely good • Incumbent Teleco’s have Testing labs(BT, France Telecom)-Paying to have products evaluated may be a good option

T & C’s • Clear Payment terms – – more flexible for East Europe ? • This is true for all Korean IT Vendors – Be a Deal Maker not a Deal Breaker – Expecting large orders at first is unrealistic and can be a barrier to entry which your competitor will welcome. • Need a clear Samples Policy – Back the sample up with detailed specs and previous testing information • Training programs – Resellers make money from Value added services. – local support/certification of engineers is expected.

Conclusion Partnering for Europe starts in Korea for fuller solutions, Identify and Invest in quality Partners in Europe (Channel, SI, OEM) Fragmented Markets mean opportunity because Korean Vendors have up to date mass market revenue stories that other Vendors do not • Put together support teams, packages of vendors and products. • Prepare Well in Korea • Buyers want WORLD Class solutions • • Look at the Verticals for VDSL, Multimedia, VOIP

Follow Up Thank You Looking forward to hearing your best Sales and Marketing opportunities Joreilly@iparklondon. co m