Voice Mail & Call Completion Workshop Santiago, Chile - June 2008

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Market Status and Major Trends Product Based Strategy Latin America Voice Mail ECC WHC “ A” Party Services “ B” Party Services Call Completion Strategy Europe Asia Latin America NM MCC

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Methodology & Sample Size Research Agency SMarketing, a leading research company Method CATI system interviews (to home telephone, mobile phone numbers not considered). Country Mexico Location Mexico City, Monterrey and Villahermosa Target Mobile phone owners. The interviewees were naturally random selected from 18 to 54 years old, to observe the representative user profile distribution and conformation. Language Spanish (native) Interview length 20 minutes Time period March – April 2007 Interviews Mexico City 125 Monterrey 125 Villa Hermosa 125 Interviews Full Users 75 Retrievers 75 Depositors 75 Non Users 150

Preferred Method of Communication When Can’t Get Through… Q. 7.- Which one of these statements best describes you? -D & F- (%) 0% 20% 40% 60% 80% 100% 75* 75* 150 DEPOSITORS FULL USERS 23 21 25 43 43 44 3 3 4 9 11 7 21 23 20 Total In General, SMS is preferred over Voicemail I prefer leaving a voicemail message over written message/ multimedia message/if I can't get through I prefer using SMS over voicemail if I can't get through I prefer using MMS over voicemail if I can't get through I know that the person I'm calling can see they have a missed call through caller ID so I Don't leave or send a message I will try to call the person again if I can't get through

Reasons for Preference Q7 More immediate Easier Less expensive Less personal More personal More reliable Don't want to talk to machine Other Prefer voicemail to SMS/MMS/Mobile email Prefer SM S to voicemail Prefer to call again % N=35 N=65 N=32 74 63 37 20 49 54 20 3 40 48 43 15 29 57 22 6 Voicemail values: immediate, easier, more reliable 50 53 22 19 59 63 28 3

Barriers for Depositing Voicemail Messages Q. 20. Which of the following reasons describe why you Don't LEAVE VOICEMAIL messages for others? -R & NON- Multiple response Base: 37 41 35 38 33 40 40 31 44 46 51 44 56 52 58 Total Retriever Non User 225 75 150 Person I’m calling does not retrieve messages straight away I use another communication mechanism Don’t know who I’m leaving the message for The warning message reminds me that my call will have a cost Don’t want to speak to an answer machine Guaranteed delivery is the main barrier The regulatory message is NOT a leading barrier

Barriers for Retrieving Voicemail Messages Q. 22. Which of the following reasons describe why you Don't retrieve voicemail messages left for you? -D & NON- Total 225 Depositor 75* Non User 150

Increasing Deposits Willingness to leave messages if… Q. 21.- Please use the scale below to state if you would be more or less likely to leave a voicemail message for others if… -ALL- Be much more willing to leave the message (100) Be slightly more willing to leave the message (75) Be neither willing nor unwilling to leave the message (50) Be slightly unwilling to leave the message (25) Be much more unwilling to leave the message (0) Average rating Immediacy , guaranteed delivery & Personalization are key issues 11 5 6 5 6 4 1 2 18 10 5 7 33 24 26 29 32 62 57 58 83.13 84.33 81.4 67.53 0% 20% 40% 60% 80% 100% If you heard the phone owner name instead of the automated warning If you knew that the person you're calling will hear the message immediately If you knew that your call will be returned If you knew that the person you're calling will receive an immediate phone warning, after leaving your message. 375 375 375 375

Increasing Retrievals Willingness to retrieve messages if… Q. 23.- Please use the scale below to state if you would be more or less likely to retrieve a voicemail message if... - ALL- Pricing, ease of use & more info on voicemail are key issues 5 4 5 5 2 2 3 3 9 9 14 11 23 28 33 41 61 57 46 40 77.0 77.9 82.5 82.7 0% 20% 40% 60% 80% 100% Pricing was lower Easier to retrieve a message I had more information about the features of voicemail I had more information about the benefits of voicemail Much more likely (100) Slightly more likely (75) No more likely or unlikely (50) Slightly less likely (25) Much less likely (0) Average rating

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Chile – Market Dynamics Source: LATIN AMERICA MOBILE DEMAND - June 2008, Pyramid Research MOVISTAR and EPCS are closely tied in first and second place. Claro is third and also has a lower ARPU but the introduction of the iPhone can change its position in the market.

Response to the iPhone iPhone Instinct Voyager Operator AT&T Sprint Verizon Handset vendor Apple Samsung LG Touch screen Yes Yes Yes Icon based menu Yes Yes Yes Launch Jun-07 Jun-08 Nov-07 Wi-Fi Yes No GPS Yes Yes Yes Camera 2 megapixels 2 megapixels Video recording No Yes Yes 3G No Yes Yes MMS No Yes Yes Music player Yes Yes Yes Music Store iTunes Sprint Music Store V Cast music store Stereo Bluetooth No Yes Yes IM No No Yes Visual Voice Mail Yes Yes Threaded SMS Yes Yes Price $600 $299.99* $299.99

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Voicemail Usage Segmentation - Worldwide Source: Worldwide Averages from Operators Marketing Workshops, Internal Name, 2006 No Voicemail 42% Mass Users ~29% Light Users ~21% Heavy Users 8% Voicemail Usage 3+ messages per day 0.5-3 messages per day <0.5 message per day

Latin America Voicemail Usage Segmentation Source: EPCS Voicemail statistics Non Users 51% Light Users ~34% Mass Users ~14% Heavy Users 1% Voicemail Usage 3+ messages per day 0.5-3 messages per day <0.5 message per day

Voicemail Usage Segmentation Source: Worldwide Averages from Operators Marketing Workshops, Internal Segments Revenue Contribution Mass Users ~52% Light Users ~8% Heavy Users 40% Voicemail Revenues No Voicemail 42% Mass Users ~29% Light Users ~21% Heavy Users 8%

Revenue Generation by Segment *Based on Charged seconds of usage. EPCS VM statistics.

Traffic Generation VS Revenue Generation

Revenue Generation per User *Based on Charged seconds of usage. EPCS VM statistics.

Call Generation per User *Based on Charged seconds of usage. EPCS VM statistics.

Total Revenue Generation per Segment *Based on Charged seconds of usage. EPCS VM statistics.

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Market Segmentation – VM users Young Professionals Visual Voicemail – tech savvy, trendy, high income Non users MCC & Notify Me - price sensitive, immediacy, A party solution Corporate Users Premium Voice Mail – efficient, multi access, immediate delivery

Segmentation based solutions Usage ARPU Segment Plan Call Completion Visual VM Goal No VM Low Youth Prepaid WHC/NM MCC “ A” Party services, price sensitivity. Light Users Low Youth Prepaid WHC/NM MCC “ A” Party services New and exciting, trendy services. Mass Market Medium Youth Prepaid WHC/NM Mass Market Medium Young professionals Prepaid WHC/NM VM 2MMS New services that don’t require high end handsets. Make traditional services exciting and trendy, increase VM usage. Heavy Users Medium/High Youth Postpaid WHC/NM Heavy Users Medium/High Young professionals Postpaid WHC/NM 3G Mbox Loyalty, for subscribers that may want the iPhone but don’t want to switch. Heavy Users High Corporate Users Postpaid WHC/NM Client VVM Corporate solutions such as Blackberry or high end handsets like Nokia N95.

MCC Service Description Immediate, guaranteed message delivery to handset Lets callers send expressive voice messages to non-Voicemail subscribers

MCC Service Flow Voice Message “ Hi Mark, Michelle here, I was wondering what you are doing tonight?” Instead of network prompt, Michelle hears the MCC service prompt Voice message pushed to Mark’s handset. Receipt SMS Michelle (A Party) Mark (B Party) “ Hi, this is a new express service. Don’t hang-up, record your message now for instant delivery.” Mark plays Michelle’s voice message. Michelle is calling Mark “ Hi Mark, Michelle here, I was wondering what you are doing tonight?” Mark is unavailable & has no VM

MCC Service Flavors Flexible retrieval methods MMS SMS Michele is calling Mark, Mark is unavailable & has no VM, Michele is routed to the MCC service MMS push to handset 1 SMS notification & (free) dial-in 2

Notify Me – Service Flow: Unreachable 1 Alex is calling Lynda, who is Unreachable (out of coverage, out of battery, turned off the phone) 2 The moment Lynda becomes available, Alex gets an SMS notification: Alex Lynda ------- Lynda -------- The Number you tried to call +972548769543 is now available Press “send” to call Options Exit

Notify Me - Service Flow: Busy Alex 1 Grandma is calling Alex, who is busy on another call (Busy, Call Waiting) 2 The moment Alex becomes available, Grandma gets an SMS notification: Grandma ------- Alex -------- The Number you tried to call +972548769543 is now available Press “send” to call Options Exit

Case Studies WHO CALLED, NOTIFY ME, CALL RETURN

WHC&NM – Telecom Serbija VMS+WHC +NFM P ea k/hour traffic per month VMS+WHC VMS+WHC+ NFM+CM

Deactivation Analysis For Auto-activated Users Deactivation rate grows smaller from week to week… 2 months from service activation, 88% are still active!

Introduction Market Status and Major Trends VM Market Research Chile market analysis VM Usage Analysis Analysis and recommendations Case studies Business Case Summary/Q&A

Call Completion Presence Map South Africa Mexico El Salvador Chile Argentina Guatemala Germany Romania Portugal Netherlands Ukraine Spain France Macedonia Czech Switzerland Colombia Nicaragua Serbia Australia Uruguay Taiwan Sweden New Zealand Russia Brazil Mozambique Nigeria Cameroon UK Italy Botswana Indonesia Malaysia Honduras Jordan Ivory Coast Morocco Rwanda Mali Hungary Peru Austria Bulgaria China Greece Croatia Albania Who Called Notify Me Multimedia Call Completion Over 250M Licenses Sold to More than 130 Customers Worldwide

Thank you Raúl Castañón Martínez PRODUCT MARKETING [email_address] www.comverse.com