Okay, let's go ahead and get started. Welcome to session 721, Mobile Success Stories. We have three great presenters for you here today with great stories to tell in the mobile space. We have Jean-Philippe Fournier from Bouygues Telecom. We have Alec Hendry from MTV Europe. And we have Pierre Barbau from Sprint. So with that, I would like to first introduce Jean-Philippe Fournier.

And I will try and work the clicker. So with that, I'll give this to you. Okay. Thank you. Good afternoon. I'm Jean-Philippe Fournier working for the Department for New Technologies at Bouygues Telecom. For those who attended the previous session, I'll try not to be too repetitive on some slides that my colleague presented.

A few words about Bouygues Telecom for those who might not know. We are a GSM French mobile carrier. We have six million customers. GSM GPRS network is available nationwide in France. So we achieved 99% population coverage. And for those of you who travel to Europe and have a GSM phone, you might know what's nationwide coverage. The feeling of a nationwide coverage is pretty different than here. We launched iMode in 2002 and we happen to be the largest iMode carrier outside Japan. With 700,000 iMode users, that's a mark that we reached this week.

We are preparing an Edge network rollout. I'll say a few words later on in the presentation about it. And we are not a public company, we are a subsidiary of a group, the Bouygues Group, which is a unique combination of a telco, a mobile carrier, and a media company. In the Bouygues Group, you have TF1, which is the largest TV channel in France and Europe.

You have subsidiaries of TF1 or Eurosport. If you want to look at the Super Bowl, if you're in Europe, then you'll definitely switch to Eurosport. It's a Europe-wide sports channel. We also operate satellite TV channels. We have a satellite TV bouquet with about 16 channels belonging to TF1 and many other media activities.

A few words about the mobile market in France. Two major players, Orange and SF4, are competing with us. SF4 is about to become Vodafone later this year. On the left side you'll see the market share for voice users. So you see that Orange is the largest mobile courier in France with about 50% market share. SFR has 30% and both couriers SFR and Orange began operations in 1991 whereas we began in 1996. That's why the difference mainly.

We have then about a 20% market share for voice users. On the right side of the slides I presented the data only subscriptions. What's interesting is that despite the fact that we are the smallest courier regarding data services we have a pretty good market share and very good penetration. It's a fair competition between Orange, SFR and us on these services.

One of the main reasons we could achieve as a small courier to play an equal game with R-Range and SFR is that we rely on iMode, which gives us possibilities we could not expect to have on our own. So a few words about iMode is that it's been launched, of course, in Japan by Docomo in 2000, I guess, maybe not accurate, but 2000 or 2001. That was the first data services offering that has been popular. And during the time that European couriers were struggling with the web services, Docomo was doing very, very well in Japan. And they have now tens of millions of subscribers in Japan only.

So iMode services have expanded overseas. They've been rolled out by nine couriers around the world and outside Japan. And more couriers are joining every year. And all these couriers formed a group called the Alliance. Which aim is to specify and to maybe adjust the iMode systems to adapt it to their local markets.

iMode is based mainly on the clear separation of the roles between content providers and carriers. The point we want to be clear on is that we are not a content provider. We don't want to provide our customers our own content. We can't do it. It's not our job. And iMOD relies on standard technologies that we like: HTML, email. So no MMS, no telecom originated standards.

A few words about the iMode ecosystem, why iMode is pretty well working in Europe. The customer is of course center of the place, the central role. And we as a courier, we Allow the content providers to distribute their contents to the end users through our network. That's just what we do.

We don't do any content creation. We don't host any content providers or we don't host any of our own content on our servers. It's really, we are offering a pipe for people to web, to browse iMode sites. That's all. But we are trying to do it our best.

One thing where we are pretty good at and where we are trying to help our content providers is that we have a unique relationship to our customers. Our customers get a bill from us, by us, each month, so they know who their carrier is and at this point we have also a huge Customer Care and Customer Relationship Department. So that's one of our strengths. And we want to allow the content providers, big ones or small ones, to benefit from this.

The iMOD model is pretty clear. We share the content providers get 86% of the subscription fees. So a typical subscription fee is about between one and three euro a month. So if you want to get weather for your location in France, then you would pay one euro a month to a weather content provider. So that's pretty fair. And we pay back 86% of this one euro to the content providers. And we keep the money for the packet traffic.

So the key for success of our iMode services is that through iMode we have the ability to specify and to adjust handset specifications to our local market. That's something that our competitors are beginning to do. For example, you see Vodafone is working more and more closely with their handset providers, which give them the ability to do so as well, to control the handsets, control the features, and to specify, for example, the file formats they want to use.

It guarantees for the end users, it guarantees a consistent experience throughout, across all the handsets that they could buy from us. So you get for example on each iMode handset you have a hard key which is always the same place on the handset and you'll find it on any iMode handset. So if I change my handset, if I upgrade, I'll still find the same navigation menu, always the same ergonomics.

So we want to keep it simple for end users. And most of them don't have PCs at home so that's maybe their unique data device. So we really want to make it a very simple experience so that they can enter the data world as easily as possible. Thank you.

Something very important for our content providers is that we guarantee the content providers that their content will look exactly the same across all our handsets. I was discussing this with Alec from MTV right before the session. If MTV gives us a picture, then we guarantee them that the same picture will look exactly the same on our latest handsets and on the handset that we launched two years ago when we launched iMode.

So that's a burden that the content providers don't have to take care of. And they pretty much appreciate the homogeneity of iMode handsets. That, of course, reduces drastically the content productivity. It reduces the production costs for them so they can concentrate on their job, which is mainly produce content. And that's building the success for our data services. One word about the content providers.

Copyright Control Management: iMode has a very simple but very efficient feature which allows a content provider to protect its content. And we ensure the content provider that the content won't go out of the phone. It's stuck. As soon as you download a picture, for example, and the content provider protects it, then you won't be able to take it out through infrared or Bluetooth.

A list, a non-exhaustive list of iMODE services. What you'll find are pretty interesting and practical information. You'll find weather, you'll find news, you'll find finance, stock quotes for those interested in it. You'll find real-time traffic information for Paris. For those who know Paris, that might be very interesting to have this information next time you come to France. There are more than 250 services and there are more than 200 content providers working with us on iMODE.

We offer also Java-based services. We're using the slightly different version of Java from Docomo, which name is Doja, but has almost the same capabilities than Java.

We've just launched video services beginning of June. Of course, it's MPEG-4 based. That's why we are here working with QuickTime and Apple because all the iMode handsets that are supporting videos are using the standard, supporting the standard.

You can download, it's a download service, so you can download 100 kilobytes of video on our portal. Clips are approximately 15 seconds long. And you can then, oh that's video mail, sorry. Maybe I'll go through. Yeah, video clip download. So you can download clips that are 100 kilobytes long and the duration is approximately 15 seconds.

And the users pay for a subscription, pays a subscription fee to be able to download three or four or five clips each month from the same content provider.

In addition to the subscription, the users pay traffic, 1 euro cent per kilobyte. So, we've been trying to help our content providers to make the best videos for our video download service.

And we've been giving them guidelines, tools to help them encode efficiently their content into our MPEG-4 file format. And that's why we recommended QuickTime Pro for all our content providers. Because we found it's a very simple and easy to use tool that also allows directly to set the content protection feature supported by iMode.

Video mail. Besides video download, you can capture a movie on your phone and send it through email as an attachment to any compatible phone or to any email address you want on the web. On the other side, the Mac user or the PC user just needs to have QuickTime installed on his desktop and can see your movies.

The first network is GSM with very limited data support. It evolves to GPRS. That's what we've deployed and now we are There are two after GPRS deployment. There are two alternatives You can go either for a network upgrade and go for edge or you can go for whole completely new network that is UMTS So you have two options, Edge versus UMTS or 3G.

So to have a better throughput than with the current GPRS network, you have to deploy one of these two networks. UMTS networks offer very high capacity, pretty high speeds, but there's a but. They assume a huge upfront deployment cost because it's a brand new network. You have to deploy your network from zero.

You can't just upgrade your radio sites. You have to make new radio sites and you have to build new hardware on top of it. To give you an idea, if we are to deploy a 3G UMTS network in France, we have to pay 6 billion euros, 6 billion.

A bit more than six billion dollars for it. That's exactly what our GSM, the whole GSM network cost to us about six years ago when we deployed it. So that's something that's still very money demanding. The problem is with, if you go today for a 3G deployment, you have very few,

That's something that might make a huge difference in the first years of UMTS deployment between us and our competitors. That's our strength. So, of course, UMTS is an option for us, but in a few years from now, we expect to increase our revenues first using the edge network, and then we'll think again what we'll be doing for a UMTS deployment.

A table where a few of the main features of, compared features of 3G, UMTS and Edge. So the bandwidth is For the first deployments of 3G is 128 kbps what you'll get in a radio cell. It will evolve of course up to 384 kbps that might evolve in the next month or next years. But on the edge side you will get 200 kbps from the first day the edge is deployed.

The coverage, as I said, for 3G is more focused on metropolitan areas because of the huge investment to deploy the network, whereas Edge will be available nationwide. And the handsets, that might still be an issue for 3G carriers because they're still pretty expensive. They're new. It's a brand new network, brand new technologies.

So, as you know, brand new technologies are sometimes difficult to start with. So, they're pretty expensive this time as well. Whereas for Edge, only asks for a radio upgrade of the handsets and you can use your today's very stable GPRS handsets and upgrade them to Edge. If you're a handset manufacturer of course.

Multimedia Services Evolutions: What we will use Edge for is to allow for longer video clips, better quality. You will be able to have larger pictures, larger videos. You will be able to go from QCIF to QVGA. Video streaming is also an alternative on which we are currently working.

And of course, you might as well increase the quality together with picture size and duration. You'll be able to allow higher bit rates for your video and codes. An alternative we are also looking at is MPEG-4 H264 support, also called AVC, something we are currently looking at to reduce the bandwidth for a given quality.

And something that we see coming also is stereo handsets. You'll get a better audio but also you'll have a two-channel sound on the coming handsets. So for us it requires more network bandwidth to download two channels instead of one. So for example currently we play, if you're using an AAC device, mono, you are able to download 32 kbps encoded audio files. But with stereo you have the simplicity to double it.

The future? Today we speak about download services. We're speaking for tomorrow about streaming services that might allow you to see real-time video coming to your phone. But there's also another path to follow which is broadcast networks are coming to mobile handsets. That's something that we will see happening in the next two years. There's a standard that's been specified currently which name is DVBH, Digital Video Broadcast for Handhelds.

And that's a possible candidate for these mobile broadcast networks. The point for us is we make money using video download. We make money using video streaming. We make money using video streaming on our networks because the packets simply goes through our pipes, our network. The day that the broadcast network will be on and you'll be able to watch TV on your handsets, it might change two things. The first one is that our users might not download the videos from our website. But our iMode site does. But rather watch it directly on the TV channels.

And the other one is also since customers will spend more time watching TV on their phones, revenues will, they will spend less time using our iMode services. So that's something today that we see as a possible threat. But we also see this as a very exciting alternative. And a very exciting way of expanding business for us. We just need to find new business models. But we're sure we'll find some interesting ways to use it.

A few words about what we're doing with QuickTime. So as I said, QuickTime Pro has been recommended for MPEG-4 content creation because of its ease of use, first of all. It has a very large audience as an MPEG-4 player. If you receive a video mail sent from an iMode handset on your PC or Mac, it's always better if you have QuickTime to be able to read it. That's why it's a player of choice for us. It's an inexpensive encoder that does a very good job compared to some very more expensive encoders. And of course, it's a free player. Thank you, Apple.

And it has this nice feature that our content providers love, that is they can protect their content using this MPEG-4 encoder. We are also evaluating with time streaming architecture because streaming might be a service that we could roll out on an edge network. We found out it's a highly interoperable solution.

For example, we can stream videos in PIC4 format on these small Nokia handsets. It's not an Apple handset and it's not a Nokia server, so that's things that we just love. Before this, you had to buy a packet video streaming server and a packet video client on your handsets. something that's not always very easy to do. It's a very reliable hardware platform. I won't tell you too much about this, but I'm pretty sure you agree. And it's a telco-grade architecture.

What's next with QuickTime? Of course, we'd love to evaluate the first MPEG-4, MPEG-264 and CADRs from QuickTime as soon as they're on the market. And something we could work together on also is DVB-H digital video broadcast is coming. DVB-H is an IP-based broadcast network. So the hardware you would use to operate a DVB-H network is pretty close to what you're using today to stream video on a cellular network.

So QuickTime could be the architecture we might use to operate these kind of networks. And also, I think, Since TF1 is one of our sister companies in the Bouygues Group, they are very much focused on TV and they are promoting very heavily HDTV in France. And their point is to go for MPEG-4 AVC or MPEG-264 for HDTV very soon. And for them it's also very interesting to have the same end-cutters, the same tools ranging from HD broadcasts down to mobile broadcasts. So these are directions we would love to go into, to look into with our Apple fellows. Okay, that's it. Thank you.

Thank you, Jean-Philippe. Next, we're going to invite Alec Hendry to come up and speak. Excuse me. He will speak about his experience as a content provider in the mobile space. Thanks, it's great to be here today to show you some of the services we're offering in the UK for MTV Mobile. We're doing quite a lot of different stuff which I'm hoping you'll find quite interesting.

I'm going to show you some of the different services we've got, give a quick overview of some of the mobile technology, but I think we've covered some of that already so I'll try and skip through that to get through the session. Mobile usage, what people are doing with mobile in the UK, and then try and move on to some of the more new technologies we're doing with video production for 3G services. So I'm the operations manager for MTV UK in Ireland and I look after the services we run on websites, interactive TV and mobile phones.

In MTV Europe, we've got a wide set of distribution across the regions and we've got multiple genre channels so we can quite target specific audiences with different tastes of music. It's actually grown since last week when we bought some new music stations. But there's around 27 different music feeds across Europe, all originating from London, and with different regions around Europe contributing local feeds. It's actually nine specific to the UK, so we've got quite a big task dealing with our music channels: MTV Hits, MTV Two, MTV Bass, Dance, TMF, VH1, VH1 Classic and the newest of which is VH2.

And we're in just under 120 million households across Europe, so we've got a really wide distribution. So anything we do on air with our promotions, we can really target mobile users by discussing our services on air. I'm having to look at the screen by the way because I've left my glasses back in England and I can't see that one down there.

We offer quite a wide range of multi-platform services. Currently the latest statistics are that 53% of UK homes have digital services to receive their TV transmissions. Whether that's on digital satellite, which is the predominant platform, digital cable, and the most recent platform which is digital terrestrial, which is on a free view service and has about 4 million viewers on digital terrestrial and that was a real drive over Christmas on set-top boxes. It's a crowded music market. There's 25 different music channels in the UK alone, 9 of which are MTV.

So we have a real tough time competing in the market. So the interactive services we offer are kind of a big differentiator to our competitors. I think it's only the Skype platform who have their own things. We also have three music channels which also have interactive services. We also use it to extend the viewing experience so we're not just targeting people who are sat in front of the TV, but they can go away with their phone or go online afterwards after they're watching the channel and interact with MTV that way. So we've got various websites for the different channels.

We've got a very advanced interactive TV service that lets people enter competitions, read the latest news, all while they're sitting there watching the TV. And we've got games. There's one in the middle there, Seymour's Turbo Couch, which you actually play over the videos while you're watching the channel.

And on the end there is our Ringtones app that lets people, while they're watching the TV, find out about what ringtones we've got available and they can text straight off the screen and receive their ringtone to their phone. And a whole range of mobile services which I'll go in depth with in a moment.

I think we've covered the main technologies. In the UK we've mainly got GSM, GPRS, WAP, and 3G services are just sort of starting and some interesting stuff happening there. Data speeds, which is a bit ridiculous, but it shows the fact that the 3G services are way ahead and we can do some really fun stuff with video.

There's over 50 million mobile subscribers in the UK, so it's got quite high penetration across the UK region. There's six major network operators, so it's quite a competitive market. There's Orange, O2, T-Mobile, Virgin Mobile, Vodafone, and the newest of which is Three, which is a dedicated 3G service provider. Vodafone launched a 3G data card for business users earlier on this year and 3 launched over a year ago. And they've now got, the figures are probably about a month or two old, but around 400,000 subscribers on the 3 network.

Data usage is definitely increasing in the UK. Text messaging in the UK and across Europe is really quite a mad phenomenon. In the UK alone we've got 21 billion messages sent per month and that just keeps increasing. Data usage has certainly increased after GPRS with MMS technologies from camera phones where people are sending their pictures around to each other or other mobile content such as little video clips.

We've seen a kind of little resurgence in the use of WAP because of the increased speed you get over GPRS. So there's now little WAP portals that a lot of the operators are operating. MTV have our own sort of slimmed down version and it's currently estimated that only around 12% of UK mobile users are data users so there's room for growth there.

So we've kind of got a two-pronged approach to mobile for MTV. We've got everything we do for our on-air channel. We could do a wide range of things here. We've got voting, chat, on-screen games, competitions and feedback. And I'll show you a quick video in a sec which shows some of those services that we use where people can actually interact with what's happening on the screen.

I think the first one in this video clash where people can actually vote which video is going to play next on the channel. There's Matchmaker which is a kind of interactive game where you text your name and the person you like and it gives you a percentage score based on how matched you are.

It's all based on numerology but not quite sure about that. And it comes back with a little statement about how much you're in love with them or something like that. And you also get it sent back to your phone at the same time so you get the instant response and something on screen. As an example of our presenters promoting use of a computer.

We've got a competition and there's text drugs and rock and roll which is on MTV2 where you can text in messages and they appear on the screen over the program. And I'll run that now. We've had some volume? The M-TV has shaped music television 20 years ago, and now M-TV is shaping music television of the future.

Okay, so that's just an example of a few of the different services. I mean, they've been really successful. We've now rolled those out all the way across Europe. Matchmaker, for instance, there's getting around three or four thousand SMSs an hour just in the UK, so we've been really pleased with that.

And we're just sort of extending the Text Drugs Rock and Roll format there into photo chat, so you can go online to our websites, upload your photo, you put in your mobile number and it stores all that information about you. And then when you text your message into the screen, it'll bring a little picture up in the corner, and people seem to be really liking that.

We also do subscription services via SMS, so advertisers who we have partnered with, if you've opted in to receive messages, we can send out messages on behalf of them. We also send out mail alerts, so when an artist that you've signed up with comes onto TRL or one of our shows, we'll text our audience to let them know what's happening.

We've also got sort of mentioned a sort of products area where we're doing stuff that isn't directly affecting what happens on air. So we've got business to business deals with most of the operators in the UK. And if we haven't, we're in talks with them. So that's where we're doing video content for various mobile portals and providing sort of chart information. I think we provide charts to O2, who have a digital media player which downloads MP3s.

We've also been doing deals with handset manufacturers such as Motorola, where we deliver content that comes on the phone when you buy it out of the shop directly. And then we've got our business to consumer services. So we're selling ringtones off our own websites, through interactive TV and through on-air promotions.

So they've done really well for us.

So some of the other products here, wallpapers. So actually I've got an example there of how we actually have to format some of these sometimes for the different layouts on the phones. So there's a typical jackass wallpaper and there's some of our MTV UK presenters. People just love to personalize their phone with this kind of stuff and show it off to their friends.

Now I'm going to move on to sort of more of the video content which is the stuff that I'm having quite a lot of fun with at the moment. And just a little montage of some of the kind of content we're putting out on two and a half networks and 3G phones.

So, one of the main things we've been trying to do is create a really good user experience by putting little packages together of content. Reversioning some of the MTV shows, producing specific content for the mobile, and it's doing really well for us. I'll just run you through some of the packages so you can kind of see what kind of content we offer. This is the MTV What's Hot package. This is all on 3G, these ones. It's two minutes, we do two a week. It's kind of reviews and recommendations of new artists that are coming out, new singles, what's going on tour, fashion, hot topics.

We've got the best of MTV, which is about a minute and a half to two minutes. We do three of these a week and we use a lot of stuff that's been out from the channel, say from the previous week. So if there's a guest that's been on a show, we'll edit together a little package with them, either from the show itself or after the show's gone out, we'll do a little backstage interview with them. So it's kind of unique content you can only get on the phone.

Live Lounge, which is a longer piece, it's up to four minutes, and we deliver around 12 of these a month. These are all exclusive MTV Live performances, either from our archives, and we've got stuff going back years and years, or the latest performances, either from America, which we've licensed over to the UK, or from our own TRL UK shows. We also do specials such as the MTV Europe Music Awards, the MTV Video Music Awards, basically any awards that are going. There's always something fun happening.

And probably the most updated one is the MTV News package, which is a two-minute package. It goes out every day, Monday to Friday. And that normally consists of around three news items. And I thought it would be interesting to sort of just walk you through how we produce some of this content.

So for MTV News, the normal MTV News team goes and produces that on behalf of us. So they'll use the same news format that they use on air. So to the viewer, it's the same kind of look and feel. It's the same presenter. They understand what's going on. But we reshoot it in the studio just after they've done the normal news.

Tighter headshot to kind of maintain the action. And they remove a lot of the smaller crawls and the moving backgrounds. It's recorded live, and we get it delivered on a DigiBeater to us to manipulate. And I've got a short clip here that just shows that process. Now with money comes fast cars and of course women. Well, not if you're 14 years old and known as Harry Potter.

Now, what do you think was Jamilia's favourite thing about shooting her latest video of a sea in her boy's eyes? Being in Cuba? Nope. Loads of blokes she paid to be in their schools. We went on set to clean up the mess. Well, just before I go, a big happy birthday to the delicious Kylie Blogue. I've got your present right here. That's it, I'll back you up with more news directly to your mobile.

And that generally goes out to the viewers about 6 o'clock each day as a single package. And the actual news item, generally the same news package on air goes out an hour later, so they kind of get exclusive to their phone first. But with our other packages that I showed you, we edit all that in-house, we do our own shooting, we go out with DV and shoot all our interviews.

We use a desktop Final Cut system, which has really impressed the business because they've suddenly gone, "Wow, you can do all of this on that machine and we don't have to go into Soho and spend a fortune with an editing house." So it's a G5, Blackmagic 10-bit uncompressed, we come in at the highest quality we can, because if we want to archive this kind of content for later use, we want to make sure we've got it in the highest quality possible. And we can come in direct off DV cameras, which means we don't have to dub from one format to another. We use DigiBeater and SP as the main tape source and laying off for archiving.

I probably won't go into this too much detail, but you need to say we've got to do some work to make sure the content looks right on the phone, so we've got to make sure that we reframe the shots so that there's not so much going on in the frame.

We try and avoid fast cutting where possible, but we have actually found with the 3G services that the picture quality is so good that we can do a lot of that kind of MTV style zooming in action. One of the biggest things we do do though is redo any titling because normally if it's too small it won't show up, so instead of it being a lower third it's the lower half of the screen on the phones.

One of the biggest issues we've found is the devices don't have that much storage capacity at the moment, so that's why we're only doing two or three minute packages. The sound is not great on the phones themselves. The speakers aren't really designed for that kind of playback, but if you plug in the headphones you get pretty good audio quality. Most people don't do that when they're showing it to their friends and correcting video levels to make sure it looks good.

Okay, so this is a brief bit about how we get it onto the phone. All our 2.5G content we encode directly out of Final Cut using QuickTime 3G. As I mentioned previously, for some of the download options on the 2.5 phones, we have to make sure the file size is quite small otherwise the viewer has to wait quite a long time for the file to come down.

So I think we've seen a few of these already today, of the video rates, equivalent frames per second and the lengths. But T-Mobile are sort of trying to open up that format at the moment and they've sort of said, "Let's try and see if we can make a bigger file format to give longer content." So we're playing around with that at the moment. I'll try and give you a quick demo, if we can go over to that.

So it's just weird little clips that people seem to like to download and show to their friends. The actual show itself is a little bit ruder than that, but thankfully on the phone we've only got a little short space of time to show stuff, so we cut a lot of that out. If we can switch back to the slides.

For three in the UK, what they've actually done is they've appointed BBC Technologies as a sort of gatekeeper towards all the content providers. So we actually currently, we go out as an MPEG-2 format at a really high data rate and we send that over to them and they check it over for us and do the encoding and pass it off to the phones. It's an MPEG-4 format on the 3G phones and there's a little bit here about the differences between the 3G and 2G content, which I think is just basically obvious if I show you the actual footage.

So I will now move on to a 3G example. There's a few different phones in the UK for 3G at the moment. This is the sort of original one, which is the sort of clamshell design, quite bulky. But this one's even bulkier. This is the sort of more business phone with a little touchscreen. But the video quality on the screen is pretty good. So I'll try and show you an example of this.

So that's a little clip from the news there. You can see the motion is quite good. It moves along quite well. Frame rate keeps up. Obviously these aren't streaming from here because I can't do that, but back in the UK, you've got the choice of either downloading it to the phone and storing it to watch later or streaming it in real time. And the quality comes down at just about the same rate. Can we switch back to the slides? So, what have been our main findings? Well, we found that mobile is integral to our viewers' lives. It's their main source of what they get out and what they do.

Most of our viewers are quite young, they're demanding, and now the scary thought is some don't even remember a time before SMS. And the latest stats show that 25% of UK 7-10 year olds now actually own a mobile phone. We don't actively target under 16, we can't under X-DIS rules, under Ofcom, but we can't help it sometimes, you know, they're going to text in and it's down to their parents to make sure they're using it in the right way.

The demographic research has been very strange. Three subscribers are generally 25 to 35 year old males. They're all downloading pop music. So they're the kind of people who tell everyone, "Yeah, I really like cool music." And then they're secretly going off and downloading a bit of Britney Spears to chill out on. Device constraints, we found that, as I've mentioned before, the sound isn't so good on the devices.

For instance, on this one, the speaker is at the back, so if you're looking at it, you're not getting the sound in your face. So people are using their headphones, but they generally don't. So we're trying to make sure that just the video quality is there so that people can show it off.

They've got short attention spans, so they don't like to sit there and wait for it to download, but even more so, the content itself has to be quite snappy, very visually appealing. And thankfully that's something we can deliver. The other very important thing we found is the navigation to the content.

It's all very well having this great content on your system, but if people can't get to it, then they're never going to find it. So we've got our editorial team in place who've done a lot of work to work out how people in one line of text are going to understand what this content is and therefore how they're going to go and download it.

The status symbols of the moment, the phones, they're not sort of widespread as yet. These are the two sort of very strange looking phones, the Nokia, very strange fashion looking phone. But they want content they can show their friends, they want up-to-date content, and the kind of content you've downloaded on the phone does make a statement about who you are.

If you've got loads of Jackass and Daddy Sanchez clips, then you're probably going to be kind of a bit funky and a bit crazy, whereas if you've got a whole load of live lounges by Queens of the Stone Age and a whole load of other old content, then that kind of says something about you as well.

We've done very well. We're second only to football in the UK. There was a slide earlier that sort of showed football and then adult entertainment, but thankfully we're actually beating adult entertainment in the UK, which is quite pleasing. The download estimates have been up. I can't give you exact figures, can't release those, but the percentage each month is just going up and up as new subscribers come on board and the awareness of the 3G phones is happening.

It's just been announced today, I believe, that Orange are launching a 3G service towards the end of this month in the UK. Vodafone is going to be September. So as the main operators come on board, it's going to become more and more common. And subscribers do seem willing to pay for the extra content. And we've seen a lot of requests from other regions around the world who've seen our content within MTV and now would like to use that. So we're trying to help them build their 3G businesses.

The future? Well, it's standards-based and thankfully QuickTime is definitely looking towards that. And there's a good workflow at the moment we get out with using Final Cut and QuickTime. The handsets are going to get better. I mean, the biggest stumbling block seems to be battery life at the moment.

I've had to change my phone battery twice today when I've been showing people video clips. And the storage is going to hopefully improve as well. As I said, the main networks seem to be deploying towards the end of this year in the UK. and it's going to be a big market. That's it. Thank you.

So we've talked a little bit about professional mobile success, mobile content, and now I'd like to invite Pierre Barbau to talk a little bit about the success that Sprint has had with their consumer messaging service. So with that, Pierre. Thank you, Aliza. And I'm not sure if I've ever been in a tighter spot. I sit between MTV and I'm told there's a party at the Apple campus tonight. So we'll try to be brief and walk through a few of these slides here with you.

Essentially, we're here to share with you a little of our learnings from picture mail and, more importantly, video mail as it applies to our experiences with QuickTime. And to, I hope at the end of the day, look at the future of mobile marketing. And I hope that I leave you with the impression that our relationship with Apple, and particularly around the QuickTime product, has been very helpful to us and to our customers.

Give you a sense of where the camera phone has been and where it's going. And of course here we assume camera and in part of these, of course, our video enabled handsets. We got excited about what happened last year into this year. Going forward, there's a lot more growth ahead and the side of the company I come from, we're really focused on the personal communication, visual communication aspect of our business. So this is really the path that we're following in the coming few years.

If you look at video messaging as a segment, it too has a great deal of growth ahead. We're really just getting started in 2004, as you can see. We launched our service in November of last year and By the end of 2009, it's estimated there will be over 30 million users in the United States of video messaging, handset-based video messaging. In that same period, it's expected the potential market associated with video messaging will reach over $2 billion. So it's really something of importance to us and we're quite committed to it.

This is actually a much better improvement to my original slides, so thanks for doing that. Basically a timeline of kind of where we've been. Launched our services in August of '02, first camera attachment in the United States. Arguably there were more camera attachments launched in the United States than perhaps any market in the world. I'm not quite sure what caused that, but there seemed to have been a lot of those.

We quickly followed with our first integrated camera phone in November of '02. And most of you, again, have seen the progression from there. So now we are very much into an integrated device. Still images, video now are becoming one and the same. Become pretty much a standard across our image capturing devices. Any questions on this? No?

We have three models in the market today that support video.

Some of you may have some of these just out of curiosity. How many of you might have one of these models? We have one customer, two. Okay. You work for the company. That doesn't count. I think the gee whiz here and what really is exciting, as Aliza and I talked about some months ago, is there's going to be an unprecedented amount of personal videos taken as a result of these devices. I think in history, never before will there have been so many personal videos captured on an electronic device, far beyond the camcorders or anything like that. So it really presents quite an opportunity and opens up new markets and new ways that you can use these videos.

The overall experience again has to be very tight, very integrated. Those of you who have the Sprint camera phones will know, we like to think there are some parallels in our approach to how I think Apple does certain things with your devices. We really spend a lot of time and energy to make them better as far as the user experience goes. Everything we do we design with the customer in mind first. The technology in many instances comes second.

And of course in the United States, unlike Europe, the presence of the personal computer continues to play a dominant role in what's going on. So if I look at the picture mail service, primarily the still picture sharing, the PC continues to be a, you know, it's holding its own. Some people thought that by now its share of the picture messaging would have diminished much more than it has. I never thought that.

I really believe that it will hold its own. This comes with video, of course, there are not a lot of video phones out there to share to. So you can just imagine the lion's share of what's being shared now is done to email. So, and PC email for that matter.

So, Lisa got a phone call from us, I don't know Lisa was it sometime last summer, in that time frame, as we were preparing to launch Video Mail. Video Mail and Picture Mail are also off the platform by a company called LightSurf that we work hand in hand. They're our partner in our design and our implementation. And as we were designing and building the product, our engineering teams were faced with a challenge.

The challenge was, you know, here we had MPEG-4 files, you know, what clients, what PC-based client or software should we use and recommend to customers to support the ability to receive and view the videos. And the decision was made really based on the product. And the decision was made really based on the quality and the, I would also say, the willingness of Apple to work with us to really, again, go the extra step to make the user experience of making it possible to download the software better, easier.

And in turn, today when you receive a video from Sprint Video Mail, what we do is we'll sniff out and find out if, we'll determine if you do or don't have QuickTime on your PC. And that's the next thing you see automatically, the recommendation of you, we recommend you download this particular software. Lisa tells me that it's a successful engagement, not knowing exactly how successful it is. It's something that's been good for Apple as it has been for us.

Again, going forward, what we're trying to really achieve is create a mass market. And that's what we're trying to do. And that's what we're trying to do. We're trying to create a mass market for these devices, for these applications. You're going to start seeing us do more with the technology, again, providing customers what they want, better quality, longer videos. You're going to see us also drive down the prices of the handsets, which will in turn make it possible for more folks to get involved. And as you know, there are some improvements coming to the wide area networks, which will increase the bandwidth as well.

We're also corner of our eye, we're looking at the PC and how it is directly going to play with the device as well. You talked about memory. I think a lot of those things are going to get addressed in the near future. So we're really very much in tune with trying to bring, again, at the end of the day, a better user experience and a better product. That is it. And that was yours, actually.