8/8/2019 Mobile VAS Webinar
1/22
11/09/2009
Click to edit Master titlestyle
Click to edit Master subtitle style
04/08/2010
Mobile VAS in Growth MarketsCurrent trends and requirements to enablemass market adoption of services
Shailendra Pandey, Senior Analyst
Mobile Content & [email protected]
8/8/2019 Mobile VAS Webinar
2/22
Informa 2009 Industry Survey:Q. What will be the key topics, countriesor companies in 2010?
8/8/2019 Mobile VAS Webinar
3/22
France Telecom is 3x bigger than GoogleVodafone is 66x the size of Facebook
04/08/2010
23.6
1
70.1
66.5
0
10
20
30
40
50
60
70
80
Google Facebook France Telecom Vodafone
Online versus mobile operator 2009 revenues ($bn)
8/8/2019 Mobile VAS Webinar
4/22
04/08/2010www.informatm.comConfidential
4
Global Mobile VAS Market
Informa Telecoms & Media estimates that the Global mobile VAS market was worthUS$200 billion in 2009. Over the next five years, the market is expected to grow at a
CAGR of 14.2% and generate revenues of around US$340 billion in 2014.
Global Mobile VAS Revenues, 2008-2014
(US$ bil.) 2008 2009 2010 2011 2012 2013 2014 CAGR (%)
Global Total 175.2 200.8 224.1 249.0 276.8 307.0 340.8 14.2%
Source: Informa Telecoms & Media
0
20
40
60
80
100
120
140
160
2008 2009 2010 2011 2012 2013 2014
Asia Pac
North America
Western Europe
Eastern Europe
Latin America
Middle East
Africa
8/8/2019 Mobile VAS Webinar
5/22
04/08/2010www.informatm.comConfidential
5
Emerging markets are driving growth
The emerging markets offer a strong growth potential and investment
opportunities for the telecoms industry. 15 emerging markets now togetheraccount for more mobile subscriptions than rest of the world and this trendwill continue over the next five years.
15 high-growth mobile markets: China, India, Indonesia, South Africa, Nigeria, Egypt, Turkey,Israel, Saudi Arabia, Brazil, Mexico, Argentina, Russia, Poland and the Ukraine.
8/8/2019 Mobile VAS Webinar
6/22
04/08/2010www.informatm.comConfidential
6
Emerging markets are also accounting for growingshare of Mobile VAS revenues
It is estimated that these 15 markets between them generated around 28%of the global mobile VAS revenues in 2009, and the revenue contribution by
these high-growth markets will continue to increase over the next five years.In 2014, these 15 markets are expected to account for close to 36% of theglobal mobile VAS revenues.
Global mobile VAS revenues, the 15 high-growth markets vs. the rest of the world, 2008-2014
8/8/2019 Mobile VAS Webinar
7/22
04/08/2010www.informatm.comConfidential
7
Global Mobile VAS Market, 2009 & 2014
Source: Informa Telecoms & Media
40.9%
11.9%
39.8%
7.3%
US$200 billion, 2009 US$340 billion, 2014
53.2%
11.3%
33.7%
1.8%
Mobile messaging
Mobile entertainment
Mobile Internet
Others
8/8/2019 Mobile VAS Webinar
8/22
46.7%
13.2%
32.9%
7.2%
Mobile messaging
Mobile entertainment
Mobile Internet
Others
04/08/2010www.informatm.comConfidential
8
Mobile VAS Market 2009
Source: Informa Telecoms & Media
Asia Pacific US$83 billion
80.5%
3.5% 14.0%
2.0%
Africa US$4.5 billion
79.2
%
5.4% 9.5%
5.9%
Middle East US$7 billion
66.2%
10.1%
20.8%
2.8%
Latin America US$10.8 billion
53.0%
10.6%
33.1%
3.3%
Eastern Europe US$15.1 billion
8/8/2019 Mobile VAS Webinar
9/22
More data traffic, but each MB brings inprogressively less revenue
2Q07-2Q09 - Traffic volume up by 900x
Flat-rate reduced revenue/Gb from US$5,600 to $11!
Equivalent of just $0.01 per Megabyte in 2Q09
Source: Operator; Informa Telecoms & Media
0
200
400600
800
1,000
1,200
1,400
1,600
1,800
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Totaltr
affic(Terabyte)
RevenueperGigabyte
(US$)
Traffic and revenue/GB trend for an Asian operator
Revenue per Gigabyte Total traffic
HSPA and flat-rates launched in 3Q07
8/8/2019 Mobile VAS Webinar
10/22
A business case for LTE?
04/08/2010
8/8/2019 Mobile VAS Webinar
11/22
Mobile VAS Market Development
From infrastructure-based competition to service-based competition
2G & 2.5G 3G and 3.5G
Voice-dominated Data-dominated
Focus on acquisition Focus on retention
One size fits all Market segmentation
Operator portals App stores
Pay-per-use Subscription or bundled
Source: Informa Telecoms & Media
how toensure good
rev/MB Reducechurn andSACs
For revenuesor just todifferentiate
Customofferings forevery user
8/8/2019 Mobile VAS Webinar
12/22
Factors Impacting Mobile VAS Provision
Emerging markets
SMS, IVR and USSD based services
Low-margin, high-volume VAS
Demand mostly for local, vernacular
content
Handset-agnostic service deployments
Developed markets
Data-rich apps, multimedia services
High-margin, low-volume VAS
Strong demand also for popular global
content
Handset-dependent service deployments
04/08/2010
Source: Informa Telecoms & Media
8/8/2019 Mobile VAS Webinar
13/22
04/08/2010www.informatm.comConfidential
13
Examples of Innovative Mobile VAS in Growth Markets
Source: Informa Telecoms & Media
CountryServiceProvider Service Category
China China Mobile Rural Information Service
South Africa MTN Please Call Me
Bangladesh GrameenPhone CellBazaarKenya Safaricom M-Pesa
Turkey Turkcell, Avea Mobile Signature Service
China China Mobile Fetion
South Africa Mxit Mxit
Nigeria Globacom Glo Caller Tune Personalisation
Utility
Social Networking
8/8/2019 Mobile VAS Webinar
14/22
04/08/2010www.informatm.comConfidential
14
8/8/2019 Mobile VAS Webinar
15/22
04/08/2010www.informatm.com
Confidential
15
Mxit Mobile Social Networking Service
Source: Informa Telecoms & Media
Most widely used mobile socialnetworking service in South Africa.
The service platform has been extendedinto a range of new areas beyond simplemobile chat and IM features.
Now a number of organisations are usingthe platform to deliver different servicesincluding maths education through aprogram backed by Nokia South Africa.
8/8/2019 Mobile VAS Webinar
16/22
04/08/2010www.informatm.com
Confidential
16
8/8/2019 Mobile VAS Webinar
17/22
04/08/2010www.informatm.com
Confidential
17
GrameenPhones CellBazaar Service
Source: Informa Telecoms & Media
Allows users to buy or sell goods usingtheir mobile phone.
To sell something, users post theinformation on CellBazaar site via theirmobile phone and buyers can then contact
them on their mobile.
There is no extra charge for using theservicejust the standard SMS/WAPcharges.
8/8/2019 Mobile VAS Webinar
18/22
Future growth embedded devices, M2M andvertical/enterprise sectors
Embedded devices M2M
Vertical sectors
HealthcareEducationGovernmentUtilitiesTransport
Operators need toensure that their M2Mdivisions work withenterprise units Getting the right
platform and businessmodel will be crucial
M2M serviceproviders saw50-100%revenue
growth in 2009
The cost of embedding acellular modem needs tocome down from $30 tobelow $10 to make this
vision a reality
8/8/2019 Mobile VAS Webinar
19/22
04/08/2010
Future growth - using mobility to power emerging marketeconomies
Emerging markets are rich inpotential for mobile payments,education, health, utilities andgovernment.
Market fragmentation andcompetition between operators,handset manufacturers andfinancial institution risks slowing
the emergence of these newservices.
8/8/2019 Mobile VAS Webinar
20/22
Concluding remarks
3G services will boost data ARPU but SMS and IVR will continue to playa crucial role in driving mass market VAS usage in emerging markets.
Future growth in emerging markets will depend on the operators,handset vendors and content providers ability to work together.
Operators apps strategies will help them differentiate but also
compromise their existing content strategies and portals.
Flat-rate mobile broadband cant be a long term strategy. Smart pricingand attractive VAS will be necessary for long term growth.
M2M and vertical enterprise sectors will be key drives for future growth.
8/8/2019 Mobile VAS Webinar
21/22
Further reading...
New for 2009, Mobile Value Added Services inGrowth Markets strategic report from InformaTelecoms & Media addresses and analyses the highgrowth emerging mobile markets and the opportunitiesto drive data ARPU through innovative and attractive
mobile value added services in these markets.
This report will also provide you with detailedinformation and analysis on mobile VAS (ValueAdded Services) currently being offered in growthmarkets; the number of users, amount of usage, and
the revenues these services are generating; and whatchallenges and opportunities mobile industry playershave in these markets.
04/08/2010www.informatm.com
Confidential
21
Mobile Value Added Servicesin Growth Markets
Available to clients through theMobile Content & Apps channel
of the Intelligence CentreLogin http://ic.informatm.com
Also available from our onlinestore:www.informatm.com/mobileservices
8/8/2019 Mobile VAS Webinar
22/22
Make better business decisions
Thank you
More information on our Mobile VAS market research at
https://commerce.informatm.com/reports/main/mobile-value-added-services-in-growth-markets.html