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Subject:  Re: PUMA, INSP, AETH and PHCM Date:  9/3/2000  1:42 PM
Author:  scrim1 Number:  4112 of 8783

PHCM is in a royalty game. doesn't not own WAP. It's an open standard. There will be no gorilla in the WAP browser or gateway space.

Browse-It™, turns html into wml allowing web sites to be displayed on wireless devices without using a third party web site (such as Infospace's wireless portal that aggregates content).

I don't see Browse-It™, replacing Infospace. The carriers don't want their users going off to third party web sites. They want their users staying on their WAP websites much like Aol has done with their service. Infospace provides content, services, and technology to the carriers to allow them to make wireless web happen (ie getting promotions, get stock quotes, email, finding the nearest ATM, ect..). Infospace basically provides a portal in a box. The carriers don't want their users going off to Yahoo for email, stock quotes, ect.. Infospace get a licenses fee from the carrier and also gets 5 to 25% of any transaction. So if Joe Bob's car shop runs a promotion and you go in a buy something. Infospace gets a nice piece of the transaction. So does the carrier. This is why Infospace is working on adding more merchants to their merchant services. So far they have 2M merchants. The more merchants INSP has the more promotions that can be run across INSP affiliates. The more promotions means the more likely a carrier will want to go with Infospace. There are over 10M merchants in the United States doing over 3.7 trillion in commerce.

If the users go off to another portal (Excite), it makes the carriers just that dumb pipe. Over time, it's possible that the wireless portal will be worth more than the pipe itself, hence, many of the carriers will be more than happy to partner with Infospace to get access to INSP platform. Instead, i see Browse-It™ and Infospace working together or coexisting. Infospace will provide the wireless portal and be the Yahoo of wireless web, while, Browse-It™ will allow users to acess other websites not formated for WAP or other third party websites.

Infospace solution allows users to customize what they see on their cell phone from their computers. Since
it's easier to impute data on the computer, you can set up your portfolio on the PC and then access your
portfolio from your phone.

PUMA's value chain is very strong, with such partners and customers as NOK, PALM, NTTDocomo, its software works with all the major wireless platforms iMode, PALM, Symbian/Psion, etc

So it Infospaces. AT&T Wireless, GTE, SBC, ALLTEL, VoiceStream, AirTouch, Verizon. Infospace claims 88% market share in the United States. Around 50% share in Europe. Infospace will make roughly 1-3 dollars per user per month.

Here are some other links that talk about INSP competitive advantages.

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