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- The Business market is a “rich” market. Why?- The first mobile phones were for Business people the price was 24,000 Finnish Marks in 1987 (approximately EUR 4,560)
- The world’s first GSM call was made in 1991 and the first mobile “killer app / service” the SMS message was sent in 1992- The second mobile ”killer app /service” was the e-mail, in 2008 the market was estimated for $3,5 billion
- Why Black Berry succeed in the Enterprise business sector?
- The mass market is a “poor” market (and volume market), but…- In the emerging markets most of the mobile services are SMS based and to support the business- In 2008 the SMS market was $130 billion and expected to be $224 by 2013- In 2006 China Mobile made $100 million in 10 minutes when the Chinese year changed and Chinese sent over 1 billion SMS.
- Apple app store: over 190.000 apps, over 4 billion downloads average price ~ $2,5, but over 70% of the downloads are free apps
- an operator independent channel for app distribution
- Facebook => connect the app / brand to the community- but the most important thing is the cycle of a company => in the past the death valley was 3-4 years and now 1-2 years
- In the past operators “owned” the subscribers, the buz. model was based on calls and SMS, now is data traffic, they see only bits, how to differentiate themselves, how to keep loyalty in their subscribers?
- Operator started to build their own app stores and started to offer flat data rates
- They reduced the share from 85/15 to 50/50 or even more for developers.
- Roaming still a barrier for mobile apps and services usage.
From the operator point of view:
Voice ARPU Progression, 2004-2009 ($)
Non-Messaging Data ARPU Progression, 2004-2009 ($)