ENSURING MASS MARKET SUCCESS FOR NEW SERVICES

Birju Patel, Senior Director, Partnership Management

April 2007
WHERE WERE THESE COMMENTS HEARD AND ABOUT WHOM?

They are parasitic

They are driving the bandwidth incentive problem
We need to be more like them
Partnering is a key to moving forward

Comments overheard in the hallways at Telco 2.0

talking about:
THESIS

If you have a new or existing service;

working with a Broadband Service
Provider CAN provide a profitable mass
audience for your service

Right Right Better

Service Experience Results
BSPs STRUGGLING TO OFFER A FULL VAS PORTFOLIO TO SUBSCRIBERS

 ARPU decreasing
 Can’t deliver sufficient new (IP) services quickly or efficiently
 BSPs are looking for flexible, credible partners in order to deliver new services
 Beyond Desktop Security they have not had financial success

Churn

Customer acquisition cost

Cost of new services

ARPU
CONSUMERS WANT A TRUSTED ‘BRAND’ TO GUIDE THEM

 Security fears & lack of trust

 Complicated, uncommon user experiences
 Multiple billing relationships
 No clear support or maintenance

Users want simplicity be it from their BSP, Microsoft, Yahoo or Google

THE BROADBAND SERVICE PROVIDER CHANNEL

Strengths
Access to millions of users
Leverage strong brand and trusted consumer relationships
Existing billing and live support capability
Open to sharing costs and revenue than ever before
Typically choose only one partner per product category
“PLUGGING IN” IS HARD TO DO IN PRACTICE

Challenges
Alignment from many, many stakeholders
Slow TTM -- Inflexible infrastructure
Often need access to some form of live support
Each implementation is different
OUR FIRST MANAGED VAS WAS DESKTOP SECURITY

Typically driving $10-$30M annually in top-line for single VAS category

Our most successful customer has generated over $100 million in VAS
revenue since launch
Penetration rates up to 40% of embedded base in key accounts
Managing just under 10M managed desktop services EVERY day
RADIALPOINT PROVIDES VAS AND SERVICE OPTIMIZATION
Existing BSP
Services
Optimal Service Experience Managed Service Delivery to
End-user via the BSP

New ISVs
Services

Radialpoint
Services
 RADIALPOINT’S OPTIMAL SERVICE EXPERIENCETM METHODOLOGY

OPTIMIZING EACH PIECE OF THE VAS LIFECYCLE TO MAXIMIZE PROGRAM ROI

PLATFORM CAPABILITIES
Awareness capabilities are inexpensive and yield results quickly
Auto-install provides the best customer experience and financial results

VAS Subs

700,000

$32M
600,000 Auto Install

500,000

Awareness
400,000
Campaign
$21M
300,000

200,000
$13M
100,000

0
Oct 05

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SERVICE EXPERIENCE - AWARENESS
SERVICE EXPERIENCE – SUBSCRIPTION AND FULFILLMENT SERVICE
SUBSCRIPTION AND FULFILLMENT SERVICE -- RESULTS

Used to fulfill: 81% activation achieved

Not used to fulfill: Only 8.4% activation achieved

100.00%
Not Activated
19.0%
Activated

91.6%
50.00%

81.0%

8.4%
0.00%
Not Used Used
 RADIALPOINT’S OPTIMAL SERVICE EXPERIENCETM METHODOLOGY

OPTIMIZING EACH PIECE OF THE VAS LIFECYCLE TO MAXIMIZE PROGRAM ROI

 CONCLUSION

Working with a service provider CAN provide a

profitable mass audience for your service
+Radialpoint Services
+ Existing BSP Services
+ Select ISV services Optimal Service Experience TM

Radialpoint has deployed technology to help you do this.

 Birju Patel
Senior Director, Partnership Management

birju.patel@radialpoint.com