GLG News by Council Members who Sell Consumer Electronics

· The kid’s phone market is a tough business · Kids aspire to be older yet have specific needs and limitations · Because of the small kids-phone market size, devices are often limited in variety and appeal

 · KDDI is in search of growth beyond its mature, competitive home market · The company is looking to establish an MVNO in the US targeting Japanese consumers · The US MVNO economics are challenging at best, and with a small target audience, KDDI will find it very difficult to...

· Advertising shapes most forms of media and communications · The mobile phone has thus far been a personal, private device largely free from advertising · The economics are quite compelling and it is a matter of time before advertising appears on mobile handsets

· US mobile market is expanding (subscribers are up to 210 million with 143 million handsets sold in 2006) · Mobile operators want to increase mobile data revenue, not just subscribers and handset sales · Mobile handsets need to be subsidized, and compelling applications need to emerge,...

Apple’s entrée into the Smartphone market has raised the bar for traditional handset manufacturers. There is now a significant competitor adding a fresh (non-mobile phone OEM / ODM) perspective to the mobile user experience. This can only benefit users in the long run. Some key implications: ·...

1. Apple and AT&T will earn more after the sale than on it2. The cost of making the phone is not the cost of goods to providers

1. Without carrier subsidies, consumers will pay more for phones2. Too many choices will confuse consumers3. Quality of service experience may suffer4. Carriers will find ways to recoup the lost revenue

- Unlocking phones is a positive step toward customer ‘freedom’ - The US market, however, is predicated on device subsidies and long-term contracts - Until the subsidy-contract cycle is broken, unlocking phones will not have a significant impact

1. From Socket AM2 to AM2+ and Cities Core Platform From Socket 939 to 12072. From 90 nm to 65nm3. Agena and Kuma, 4 Cores Platform, Stars

With the closing of Mobile ESPN the industry is rethinking the MNVO value proposition. At first glance MNVOs seemed like a welcome addition to the mobile landscape - well-branded companies delivering services that appeal to customer segments the large operators service poorly or outright neglect without...