It is with great pleasure that we present to you a brand new edition of the Netsize Guide 2010, Mobile Renaissance. For the first time in its 9-year history the book is now updated in its publication year with five new interviews and hot new 2010 telecommunications market data. We´ve kept the original 2009 data, providing you with a unique quarterly view on the mobile telecommunications market trend in 40 countries globally.

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We´d also like to stay in touch with you via social media. Follow @NetsizeCorp and @NetsizeGuide on Twitter. You can also visit our Netsize Guide microsites – Mobile Renaissance and the Netsize briefing room on MSearchGroove – where you are welcome to post your suggestions regarding new topics and trends you feel we should explore in the Netsize Guide.

We are confident you will benefit from the content and case studies we are covering in our upcoming projects, and we look forward to learning what content and companies you would appreciate most.

Netsize offers mobile payment solutions based on operator billing (through premium SMS, MMS and WAP for example) for 100 mobile operators in 28 countries, reaching over 1 billion billable subscribers worldwide, and provides mobile messaging, with SMS and MMS delivery to over 200 countries.

Netsize was founded in 1999 by Stanislas Chesnais, who will remain as CEO. Prior to this capital increase, Gemalto already held 24% of Netsize. Headquartered in Levallois Peret, near Paris, France, Netsize employs approximately 180 people. Netsize will continue to operate as a stand-alone company within the Gemalto Group.

Olivier Piou, Chief Executive Officer of Gemalto, stated: “Gemalto invested in Netsize back in 2001 and was the first and largest outside investor in Netsize. It is natural extension of our long term relationship that Gemalto now becomes Netsize’s majority shareholder. Netsize’s mobile payment platform complements our rapidly expanding mobile software and services offering.”

“Netsize has been a pioneer in mobilizing business and commerce” commented Philippe Vallée, Executive Vice President for Telecom at Gemalto. “Netsize’s “one click” mobile payment solution is a key brick in enabling the monetization of mobile phone downloads and app-stores”.

Stanislas Chesnais, Founder and CEO of Netsize, added “Gemalto’s investment will facilitate our expansion into new markets such Latin America, Africa and South East Asia. We look forward to leveraging Gemalto’s digital security technology to make mobile payments even more pervasive and convenient”.

Investor Relations
Vincent Biraud
M.: +33(0) 6 08 48 33 23
vincent.biraud@gemalto.com

Corporate Communication
Rémi Calvet
M.: +33(0) 6 22 72 81 58
remi.calvet@gemalto.com

About Netsize
Netsize is a leading mobile communications and commerce enabler. Netsize solutions include Mobile Messaging, with SMS and MMS delivery in 200 countries; Mobile Payment through operator-based billing (Premium SMS, MMS and WAP) in 28 countries; and Mobile Content Management platforms with publishing & editing tools to manage messaging services and mobile Internet portals. Netsize manages more than 60 million mobile transactions per month for 800 customers worldwide, including Fortune 500 companies. With 180 employees in 10 offices worldwide, Netsize provides both robust technical infrastructure and marketing expertise to support this successful deployment on a global scale.

For more information about Netsize please visit www.netsize.com

About Gemalto
Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2008 annual revenues of €1.68 billion, and 10,000 employees operating out of 75 offices, research and service centers in 40 countries.

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.

Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as subscriber identification modules (SIM), Universal Integrated Circuit Card (UICC) in mobile phones, smart banking cards, smart card access badges, electronic passports, and USB tokens for online identity protection. To complete the solution we also provide software, systems and services to help our customers achieve their goals.

As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.
For more information please visit www.gemalto.com.

The largest mobile network operator is Vodacom (52% market share, source: Vodacom), MTN is second (35% market share, source: MTN) and Cell C, a subsidiary of Saudi Arabia’s Oger Telecom, is third (4.2 million subscribers, 8.8% market share, source: Cell C). Some 7% have 3G subscriptions.

Mobile, anyone?

South Africa is a very attractive market for mobile services. According to a report from Frost & Sullivan, demand for mobile content services in South Africa will grow by an average of 15 per cent per year until 2013.

It is also the most advanced mobile territory in Africa, with a European-style infrastructure, and consumers whose first introduction to telecoms and the web comes from mobile. Mobile broadband usage is as common as fixed line.

The Mobile Marketing Association recently released some interesting statistics about the phenomenal growth in this market and the current state of mobile adoption in South Africa, as summarized in an article by 20fourLabs.

South Africa is a nation sparkling with confidence, higher than many parts of the world (source: Bureau for Economic Research), and with great ambitions as the 2010 World Cup is gripping this sports mad country!

Launching mobile content services in South Africa

In November Netsize launched its mPayment operator-based billing solution with South Africa coverage with MO premium and MT premium billing. On Vodacom and MTN (total 87% market share) both MT and MO premium are available, and a long number for sending and receiving messages.

Multiple price points per short code are possible. MO premium is available on Cell C with a single price point per short code. For the most common price points shared short codes will be available.

Applications …

Popular mobile applications include banking (money transfer services), advertisement (mobile marketing) and entertainment (content/infotainment and social networking).

Whereas traditional direct marketing and online marketing is costly and less effective due to the language situation and lack of broadband access, mobile is providing an alternative marketing channel. Direct and personal, it has the widest reach of all in this vast country.

With 4 times more people using sms than email, it is clear that in this country the mobile is everyone’s “first screen.”

Regulatory aspects

As most countries, South Africa has put in place industry self regulation. The WASPA Code of Conduct promotes fairness and decency in dealings with subscribers and members in the content value chain.

Advertising must follow the rules in the Advertising Code of Conduct, with clear communication on pricing matters. Operators have set some specific rules as well in particular for MT subscription services.

Online seminar

If you would like to know more on how to launch mobile content services in South Africa and Netsize mobile messaging, billing and marketing solutions, we invite you to view the Netsize online seminar on South Africa at www.netsize.com.

“Direct consumer charging by mobile operators remains the favorite purchasing method of consumers to get entertainment content or to access services over SMS or Mobile Internet/WAP media,” says Stanislas Chesnais, Chairman and CEO, Netsize.  “We witness 800% transaction volume growth year-to-year mainly held up by Mobile Internet/WAP services growth.  Our higher aggregation level enables the best revenue pay-out to publishers.  Covering more than 100 mobile operators in 28 countries makes Netsize the global market leader.”

“The Netsize mPayment solution enables publishers and content providers to achieve 12% more revenue in comparison with other implementations, thanks to an in-depth knowledge of the operator’s payment platforms,” says Stanislas Chesnais. mPayment also enables reaching any consumer worldwide over alternative methods such as credit card, PayPal™, and other e-Wallets.

“The automatic and transparent consumer authentication makes mobile purchasing easy and avoids users from having to open an online account.  The secured transaction is initiated from a single click without entering sensitive data which ensures the best transaction achievement ratio.  The ease of use and convenience quickly recognized by consumers enables mobile handsets to be the tool for purchasing physical goods,” says Stanislas Chesnais.

Analytics is an integral part of the mPayment solution.  mPayment Analytics provides customers with a billing and payment dashboard with three statistics views.  The summary view shows the key performance indicators such as revenue and transaction quantity split by country and handset model.  The real-time statistics view shows all processed transactions allowing users to filter up to twenty criteria.  The customized statistics view enables users to build his view by service, country, operator, or business model (subscription or pay-per-use).

Hutchison 3G started in May 2003 with the brand Drei as the first sole mobile multimedia provider in Austria. Drei offers multimedia products such as video calling, music videos and mobile television on the UMTS-mobile and in addition provides the classic ways of communication such as voice calling, SMS and MMS.

With 94% of Austria covered with its UMTS service, and all its mobile handsets equipped with access to Facebook, Google and eBay, Drei is particularly targeting the heavy mobile internet consumer.

Netsize provides operator-based billing through premium messaging (MO as well as MT) on all four network operators. End user price points start from €0.20, up to €10.00.

The use of MT premium however is subject to a few operator regulatory limitations. Drei for instance does not allow MT premium charging for services where the user can use a web browser (mobile or PC) to make a purchase commitment or receive the content / information service.

Operators generally prefer that content providers use WAP billing instead of premium messaging for content services billing. WAP billing has many benefits, as it enhances the user experience, increases transaction clarity and trust, and improves campaign conversion rates. Netsize Online Payment, our platform for operator-based WAP billing in 15 countries, provides a single aggregated access to all operator billing systems.

Since summer 2008 A1 Mobilkom, Austria’s largest operator, has been banning the use of MT billing for new content services entirely, in favour of WAP billing. As of March this year, they have now revised this full ban to allow the use of MT premium again for pure text services that do not make use of a WAP push message to download content from WAP or web, and that cannot make use of WAP billing. As a most trusted Mobilkom partner, Netsize can help content providers with deploying new MT billing services, subject to strict regulations.

Mobile communications and commerce enabler Netsize today announced that Gameloft, a leading developer and publisher of video games on mobile phones and consoles, will be implementing its mPayment mobile payment solution. This pan-European agreement enables Gameloft customers to purchase games directly via premium SMS or from the Gameloft WAP shop.

In choosing Netsize, Gameloft is taking advantage of the company’s pan-European coverage in WAP billing wherever the offer is available at operators. In the UK, Netsize is an accredited payment intermediary and has implemented the latest proposed Payforit features in its mPayment solution

Netsize mPayment for Payforit lets mobile phone users buy goods and services using their mobile phones and charge the amount directly to their phone bill or deduct it from their pre-pay credit. Gameloft customers will benefit from greater pricing flexibility and more transparent billing. Netsize makes it easier for publishers to integrate mobile payment into their games because of a single integration API. This provides access to all available operator WAP and Premium SMS billing methods, as well as alternative payment methods.

“Mobile payment is critical to our business and our decision to work with Netsize is based on how their platform enables us to give our customers the best buying experience,” says Eve Arakelian, B2C Director, Gameloft. “Netsize provides a solid platform solution that does just that while at the same time being able to handle very large transaction volumes in the most efficient way.”

The new agreement builds on a long and close working relationship between the two companies. Gameloft has grown its European business using Netsize mobile solutions including Premium SMS, Standard Bulk SMS and WAP Billing since 2003.

Ludovic Maupain, VP Marketing and Operator Partnerships, Netsize added: “We’re delighted to be deepening our relationship with Gameloft. Gaming is a key growth segment in mobile value added services globally and Netsize has supported Gameloft in its successful deployment across Europe based on the breadth of our offering in bidirectional messaging, SMS billing and WAP Billing”.

The Gameloft agreement highlights the even wider global opportunities for Netsize in supporting mobile game operators and services. Informa Telecoms and Media estimates that the number of mobile game users worldwide will exceed 100 million in 2009 and is growing by 15% annually. Total mobile game revenues are estimated to reach US$ 4.8 billion globally in 2009 (Source: Informa)

Netsize recently announced that its online payment solution is now fully Payforit 2.0 compliant, making Netsize one of the few accredited payment intermediaries across all UK operators. Payforit is an online payment service that provides a common framework for charging consumers for content and services through the mobile internet and is supported by mobile operators including Vodafone, Orange, O2, 3 and T-Mobile.

About Gameloft
Gameloft (EPA:GFT) is a leading international publisher and developer of video games for mobile phones and consoles. Established in 1999, it has emerged as one of the top innovators in its field. The company creates games for mobile handsets equipped with Java, Brew or Symbian technology. The total number of games-enabled handsets is anticipated to exceed four billion units by 2012. Gameloft games are also available to players on WiiWare and DS, Microsoft’s Xbox LIVE Arcade, Apple’s iPod, iTouch and iPhones, and PCs.

Through agreements with major telephone wireless carriers, handset manufacturers, specialized distributors and its online shop, Gameloft has a distribution network in over 80 plus countries.

Netsize, a leading mobile commerce and communications enabler, has introduced its market-leading WAP billing solution, Netsize Online Payment, to Finland, paving the way for content providers and merchants to address an additional 5 million subscribers across the mobile networks operated by Sonera, Saunalahti, Elisa, and DNA. Launched just four years ago, Netsize Online Payment lays the groundwork for an efficient global commerce ecosystem, enabling content providers and merchants to sell goods and services to users worldwide regardless of their make or model of mobile device.

“Finland is an important addition and complements our footprint, which now covers key markets across Europe. Some 320 million subscribers across 33 networks and 11 countries are now part of the addressable market for content providers, brands, and merchants who can charge for their goods and services from a mobile Internet site or an on-device portal through our Netsize Online Payment solution,” observed Ludovic Maupain, VP Marketing & Operators Partnerships, Netsize.

The Netsize Online Payment solution allows content providers, merchants and brands to sell goods and services via mobile Internet sites, as well on-device applications. They can charge consumers for transactions on a pay-per-use basis or as a subscription package.

Netsize provides a single billing interface and manages the payment process with each payment provider, whether they are mobile operators using methods such as online Premium WAP or Premium SMS, or alternative payment providers that charge credit cards. In all cases, the Netsize Online Payment solution offers end-user authentication, payment page design and hosting, and end-to-end payment processing from charging through to settlement with the payment service providers

“The fragmentation of the mobile Internet – and the proliferation of payment methods and schemes – makes it difficult for content providers and merchants to sell their goods and services to a global customer base,” Maupain explained. “The Netsize Online Payment solution removes this complexity by providing content providers and merchants a single connection to the payment platforms in place across mobile operator networks, as well as other providers.”

To further streamline identification and payment processes and improve the end-user experience, Netsize removes the usability barrier to buying goods and services using a mobile phone. To this end, Netsize relies on the mobile operator’s authentication solution to retrieve the MSISDN (Mobile Subscriber Integrated Services Digital Network Number) – the number to the SIM card that uniquely identifies the subscription to the network.

Having verified this information, and so determined the identity of the individual subscriber, the Netsize solution does not require the user to log in or input additional information using the phone keypad to the complete the transaction. Put simply, the automated approach to end-user authentication offers an unmatched “one-click” purchasing process for both pay-per-use and subscription services.

Beyond making mobile commerce a no-brainer for consumers, the Netsize Online Payment solution enables consumers to purchase goods at Netsize Online Payment Finland offers at price points ranging from 0,35€ up to as much as 20€.

About Netsize solutions

Netsize now offers mobile merchants a full m-commerce solution including mobile store access with SMS & MMS direct marketing solutions (mGateway), mobile store builder with content and service management platform (mSuites), and mobile payment based on WAP, P-SMS or credit card billing (mPayment). The Netsize Online Payment solution is currently live in the U.K. (Payforit), Germany, France (Gallery), Spain, Italy, Portugal (Dimo), Belgium (PlazZza), Sweden, Norway, Australia, and Finland. Netsize connects to mobile operators’ billing systems and recently added the capability to charge via credit and debit cards worldwide, allowing content providers, brands, and merchants to reach a global base of mobile users.