The Worlds Top Ten Non-voice Services for Mobile OperatorsAlastairBrydonandMarkHeathwithWindsorHoldenandTonyLavender2DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ExecutivesummaryThetoptenservicesExecutive summaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited20073ExecutivesummarylThetoptencomprisesservicesthatleadtheworldinmarketpotential,implementationandsuitabilityforreproduction.Theywillhaveenduringappealtocustomersandrevenuepotentialforoperators.lThetoptencontainsamixofexistingservices,suchasSMSandBlackBerryemail,andnewservices,suchasmobilepaymentandmobileTV,showingtheimportanceofexploitingexistingopportunitiesaswellasdevelopingnewrevenuestreamsforthefuture.lTheNumber1serviceisdeliveredusingDSL,notcellulartechnology.lMobilemessagingiscurrentlythemajornonvoicerevenuegenerator,anditscontinuedimportanceisreflectedinthefactthatthreeofthetoptenservicesaremessagingrelated.l3GtechnologyisfundamentaltomobileTVstreaming,mobilebroadband,musicdownloadsandmultimediacommunities,whicharemajoropportunitiesindevelopedmarkets.TheWorldsTopTenNon-voiceServicesforMobileOperatorsExecutivesummaryThe worlds top ten non-voice services1.Vodafone Casa FASTWEB,Vodafone (Italy)2.SMS,O2 (UK)6.Mobile TV Broadcasting,3 (Italy)3.Mobile TV and Video Streaming,3 (UK)4.BlackBerry Email and IM,T-Mobile (USA)5.Mobile Broadband,Sprint Nextel (USA)7.EZ Chaku-uta Full,KDDI au (Japan)8.Cyworld Mobile,SK Telecom (South Korea)9.DCMX Mobile Payment,NTT DoCoMo (Japan)10.MiniCallVoice SMS,Vodafone (Egypt)The top ten non-voice services provide unique insight into the growth opportunities for mobile operatorsAnalysysResearchLimited20074DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:IntroductionThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited20075IntroductionlWithdownwardpressureonvoiceARPUs,mobileoperatorsneedtofindwaysofincreasingthereturnfromnonvoiceservices.However,despiteanabundanceofnonvoiceserviceinitiativessincetheintroductionofGPRSand,morerecently3G,manyoperatorshavefailedtobringaboutasignificantincreaseinnonvoiceARPU.1lFacedwithanincreasinglydiverserangeofnonvoicechoices,mobileoperatorsneedtoidentifyandimplementthoseservicesthataddthemostvaluetotheirbusinesses.lInparticular,mobileoperatorsneedtoanswerthefollowingquestions:wWhichwellestablishedandnewnonvoiceservicesarelikelytohavethegreatestbenefitsfortheirbusinesses,forexampleintermsofARPU,profitability,andtheacquisitionandretentionofcustomers?wWhataretheleadingexamplesofdifferenttypesofservice,suchasmobileTV,musicandbroadbandInternetaccess?wHowcantheseservicesbeimplementedmosteffectively?wWhatchallengesmustoperatorsovercomeiftheyaretoimplementtheseservicessuccessfully?wAretheservicessuitableforreproductionandimprovementinothermarkets?1Forfurtherdetailsofvoiceandnon-voiceARPUtrends,seeHeath,M.andBrydon,A.withHolden,W.,Mobile Operator Performance Benchmarks,AnalysysResearch(Cambridge,2006).TheWorldsTopTenNon-voiceServicesforMobileOperatorsIntroductionAnalysysResearchLimited20076DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ServiceevaluationprocessThetoptenservicesExecutivesummaryService evaluation processAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited20077LeadingnonvoiceservicesfromaroundtheworldhavebeenevaluatedbyanexpertpanelinordertoderivethetoptenDiverseserviceswereconsidered,forexample:Shortlistedserviceswerereviewedonthegroundsof:lpreviousresearchlglobalcontactslcompanyreportslindependentreviewslconferenceslquantitativeandqualitativeassessmentlservicesscoredagainstthreecriteria:marketpotential,implementationandsuitabilityforreproductionlbest-in-classservicesselected(toavoidrepetitionofsimilarservicesinthetopten)Leadingserviceswereidentifiedusingvarioussources,forexample:lnetworkoperatorserviceslthird-partyserviceslwellestablishedserviceslnewservicesServiceevaluationServicenominationGlobalservicesShortlistToptenTheWorldsTopTenNon-voiceServicesforMobileOperatorsServiceevaluationprocessAnalysysResearchLimited20078Shortlistedserviceswereevaluatedonthebasisofmarketpotential,effectivenessofimplementationandsuitabilityforreproductionEnd-userdemandTake-upUsageARPURevenueRevenuepermegabyteProfitabilityforoperatorsversusaffordabilityforusersChurnreductionServiceavailability/coveragePerformance/qualityofserviceQuality/valueofcontentTerminal/handsetcharacteristics/capabilitiesPricingPromotion/brandingEaseofuseCustomerserviceDifferencesinmarketdemand,revenuepotential,etc.CompetitiveenvironmentTechnologyRegulationInvestmentrequiredSize/globalpresencerequiredPotentialfordifferentiationIntellectualpropertybarriersMarket potentialImplementationSuitability for reproductionMeasurements of the potential (or actual) size of the opportunity, such as:Assessment of end-to-end service implementation, including:Factors affecting reproduction by other operators or markets, for example:TheWorldsTopTenNon-voiceServicesforMobileOperatorsServiceevaluationprocessAnalysysResearchLimited20079DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ThetoptenservicesThe top ten servicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited200710ThetoptenlistencompassesdiversenonvoiceservicesSuitability for reproductionMarket potentialImplementation1. Vodafone Casa FASTWEB Vodafone (Italy)2. SMS O2 (UK)7. EZ Chaku-uta Full KDDI au (Japan)9. DCMX Mobile Payment NTT DoCoMo (Japan)10. MiniCall BubbleTALK Voice SMS Vodafone (Egypt)6. Mobile TV Broadcasting 3 (Italy)3. Mobile TV and Video Streaming 3 (UK)8. Cyworld Mobile SK Telecom (South Korea)4. BlackBerry Email and IM T-Mobile (USA)5. Mobile Broadband Sprint Nextel (USA)82%85%87%85%76%89%85%83%74%59%76%70%74%82%84%80%60%64%73%66%78%77%82%79%53%85%81%73%62%60%81%68%59%60%77%65%52%61%73%62%RatingTheWorldsTopTenNon-voiceServicesforMobileOperatorsThetoptenservicesAnalysysResearchLimited200711Number 1:VodafoneCasaFASTWEB(VodafoneItaly)TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber1:VodafoneCasaFASTWEB(VodafoneItaly)Fixedbroadbandservicesoffermobileoperatorsanewrevenuestream,potentialchurnreduction,protectionfromconvergedservicecompetitionandsupportforFMSstrategiesVodafoneslargecustomerbaseandstrongbrandputitinagoodpositiontoacquirebroadbandcustomersinItalywherebroadbandpenetrationislowFASTWEBhasachievedhighlevelsofbroadbandARPUinItalyPartnershipwithFASTWEBisaquick,cost-effectiverouteintofixedbroadbandLLUBimplementationofADLS2+andfibreenablesstrongservicedifferentiationwithfastdataratesCombiningthestrongbrandsofVodafoneandFASTWEBhelpstoattractcustomersIntegrationwithVodafoneCasaFMStariffsstrengthensthemotivationforcustomerstorelinquishfixedvoiceservicesOthermobileoperatorsshouldconsiderameansofdeliveringfixedbroadbandservicesOperatorsarealreadyadoptingavarietyofsolutions,includingresaleof(andbitstreamaccessto)incumbentoperatorservices,LLUBandpartnershipOperatorsneedtochooseanappropriatebroadbandsolutionaccordingtotheirsizeandlocalmarketcharacteristics.LLUBhascostandcapabilitybenefits,buttheupfrontinvestmentmaydetersmalleroperatorsMarket potential82%Implementation87%Suitability for reproduction85%Serviceevaluation85%FixedbroadbandservicesoffermajoropportunitiesformobileoperatorsTheVodafone/FASTWEBpartnershipcombinesthetechnicalbenefitsofunbundledADSL2+andfibrewithwellknownbrandsandexistingcustomerstoattractbroadbandcustomersin ItalyAnalysysResearchLimited200712VodafoneCasaFASTWEBcombineshomezonevoicetariffswithfixedbroadbandlInSeptember2006,VodafoneandFASTWEB(Italyslargestalternativebroadbandprovider)launchedajointventuretodeliverfixedbroadbandservicestoVodafonescustomers.ServicesaresoldthroughVodafonesownretailchannelswithtechnicalsupportfromFASTWEB.lVodafoneCasaFASTWEBcustomerscombineoneofthevoicetariffsshowninTable1withoneofthebroadbandtariffsshowninTable2.TheWorldsTopTenNon-voiceServicesforMobileOperatorsADSLFlatADSL RicaricabileActivationprice(includingmodem)Standardservice(6Mbit/sdownlink)freeADSL2+service(20Mbit/sdownlink)EUR80(USD102)Standardservice(6Mbit/sdownlink)EUR45(USD57)ADSL2+service(20Mbit/sdownlink)EUR125(USD159)UsagepriceUnlimitedEUR10(USD25.43)permonth100hoursfreethenEUR1.50(USD1.91)perhourTable 2: Vodafone Casa FASTWEB ADSL tariffs, March 2007 Source: Analysys Research, 2007VodafoneCasa ZeroVodafoneCasa PiMonthlypriceEUR9.99(USD12.71)EUR19.99(USD25.43)Callsincluded1500minutesofmobilecallsfromthehometofixednumbers1500minutesofmobilecallsfromthehometofixednumbersandVodafonemobilesAdditionalconnectionchargespercallEUR0.15(USD0.19)EUR0.15(USD0.19)Table 1: Vodafone Casa voice tariffs, March 2007Source: Analysys Research, 2007ServicedescriptionNumber1:VodafoneCasaFASTWEB(VodafoneItaly)AnalysysResearchLimited200713MobileoperatorscanbenefitsubstantiallyfromofferingfixedbroadbandservicesTheWorldsTopTenNon-voiceServicesforMobileOperators2Fordetailedanalysisoftheopportunitiesformobileoperatorsinfixedbroadbandservices,seeBrydon,A.andHeath,M.withWood,R.,Mobile Operator Strategies for Fixed Broadband,AnalysysResearch(Cambridge,2007).Figure 1: Pro-rata annual spend on fixed broadband services, per broadband household, 1Q 2006 Source: Analysys Research, 2007lOfferingfixedbroadbandserviceswillallowmobileoperators2to:wincreaseARPUbytakingadvantageofhouseholdspendonfixedbroadbandservices,asshowninFigure1wbundlefixedbroadbandwithmobileservices,whichcanhelptoreducemobilechurnwcompeteagainstfixedoperatorsandotherorganisations,suchasbroadcastersandretailers,whichofferbundlesoffixedandmobileserviceswestablishakeypartoftheirFMSstrategy,bybreakingtheretaillinkwithincumbentfixedoperatorswachievegreatercontrolofthecostandqualityofbroadbandconnectionstofemtocells,iftheychoosetoadoptthisarchitecture.MarketpotentialNumber1:VodafoneCasaFASTWEB(VodafoneItaly)AnalysysResearchLimited200714VodafoneCasaFASTWEBiswellplacedtocaptureasignificantshareofthefixedbroadbandmarketinItalyTheWorldsTopTenNon-voiceServicesforMobileOperatorsFigure 2: Household penetration of fixed broadband services in selected countries, September 2001 to September 2006 Source: Analysys Research, 2007lAtthelaunchofVodafoneCasaFASTWEB,theItalianbroadbandmarketwaslaggingbehindsomeotherdevelopedmarkets,asshowninFigure2,leavinggreaterscopeforVodafonetoseizeasubstantialshareofthegrowingmarket.lWith26.2millionmobilecustomersinItalyattheendof2006,VodafoneiswellplacedtoattractthesecustomerstoitsDSLservice.Furthermore,FASTWEBwasalreadyItalysleadingindependentbroadbandsupplier,with1millioncustomersattheendof2006.lTheaveragebroadbandrevenueperhouseholdinItalywasEUR17.7(USD22.5)permonthin2006,whileFASTWEBmanagedtoachieveresidentialARPUofEUR66.4(USD84)inDecember2006.In2006,VodafoneItalysmobilevoiceARPUwasEUR21.0(USD26.7)andUSitsmobilenonvoicewasARPUEUR4.80(USD6.1).MarketpotentialNumber1:VodafoneCasaFASTWEB(VodafoneItaly)AnalysysResearchLimited200715lFASTWEBhasabroadbandnetworkthatcoversawidearea.Itsservicesareavailableto80%oftheItalianpopulation.lWirelesstechnologies,suchasCDMA2000EVDO,WCDMAHSDPAandWiMAX,canprovideadequatebroadbandaccesswherethereisnofixedalternative(forexampleinruralareasordevelopingmarkets).However,thesewirelesstechnologiescannotmatchtheperformanceorcostpermegabyteofDSLforalargenumberofcustomers.Therefore,itwouldnotberealisticforamobileoperatortocompetedirectlywithfixedbroadbandservicespurelyonthebasisofthesetechnologies.lFASTWEBhasimplementedanLLUBnetworkusingfibreandADSL2+,enablingittodeliverdownstreamdataratesofupto20Mbit/stocustomers.Someoperators(includingVodafoneUK)haveoptedforresaleof,orbitstreamaccessto,incumbentnetworkoperatorDSLservices,whichlimitsthescopefordifferentiation.3lLLUBcanbemuchcheaperthanbitstreamaccessorresaleforthedeliveryofbroadbandservicestoalargecustomerbase.VodafoneItalycanbenefitfromLLUBwithFASTWEB,withoutmakingitsownupfrontinvestmentinLLUBequipment.InpartnershipwithFASTWEB,VodafonehasquicklyandcosteffectivelydevelopedahighspeedbroadbandserviceusingLLUBADSL2+andfibreTheWorldsTopTenNon-voiceServicesforMobileOperators3Fordetailsofthecharacteristicsandcostsofdifferentimplementationoptionsforfixedbroadbandservices,see Brydon,A.andHeath,M.withWood,R.,Mobile Operator Strategies for Fixed Broadband,AnalysysResearch(Cambridge,2007).ImplementationNumber1:VodafoneCasaFASTWEB(VodafoneItaly)AnalysysResearchLimited200716ThebundlingandpricingofVodafoneCasaFASTWEBencouragesFMSlVodafoneCasaFASTWEBbuildsontheexistingVodafoneCasaFMStariffs,whichencouragecustomerstousetheirmobilesforvoicecallsinthehomewithbundlesofcheapcalls.lVodafoneoffersprepaidandpostpaidversionsofVodafoneCasaFASTWEB,recognisingthatprepaidservicesareverypopularinItaly.lVodafonehasavoidedpricecompetitionwithotherfixedbroadbandservices.Itoffersbundlesofservicesthatarepricedatanattractivelevelforconsumers.However,thebundlesarenotsocheapastocompromisetheprofitabilityofthefixedandmobileelements.Vodafoneaimstoattractcustomerswithitsuniquecombinationoffixedandmobileservicesratherthanitscheapservices.Incontrast,OrangeUKoffersfreebroadbandservicesformobilecustomerswhospendmorethanGBP30(USD38)permonth.ThesebroadbandservicesareinevitablyacosttotheOrangebusiness.lSomefixedbroadbandservicesofferedbymobileoperators,suchasVodafoneAtHomeintheUK,offerfixedvoicecallsaspartofthepackage.Whilethishelpstostrengthenthemarketpropositionforthecustomer,itmayweakentheroleofmobileservices.Instead,VodafoneCasaFASTWEBreliesontheexistingVodafoneCasavoicetariffs,whichofferfixedratecallsfrommobilephoneswhileinthehome.TheWorldsTopTenNon-voiceServicesforMobileOperatorsImplementationNumber1:VodafoneCasaFASTWEB(VodafoneItaly)AnalysysResearchLimited200717MobileoperatorsinothermarketsmayneedtoadapttheapproachadoptedbyVodafoneItalyTheWorldsTopTenNon-voiceServicesforMobileOperatorslMobileoperatorsinallmarketscanbenefitfromfixedbroadbandservices.However,differentsolutionsmaybeneededindifferentsituations.OperatorscanlearnfromVodafoneCasaFASTWEBandexamplesinothermarkets,asshowninTable3.SuitabilityforreproductionDescriptionStrengthsWeaknessesVodafone Casa FASTWEBVodafone(Italy)lPartnershipwithFASTWEBofferingdifferentiatedservicesbasedonLLUBADSL2+andfibrelEUR10(USD12.72)permonthforunlimitedusagelUpto20Mbit/sdownlinkdataratelCombinationofVodafoneandFASTWEBbrandslIntegrationwithVodafoneCasavoicetariffsl20Mbit/soptionexpensiveforcustomerslSinglebillcouldappearexpensivelOperatorsinothercountriesmaynotbeabletofindapartnerlikeFASTWEBVodafone at HomeVodafone(UK)lDSLbitstreamaccesstoBTsnetworklGBP25(USD47)permonthforunlimitedbroadbandusageandfixedvoicecallstoUKlandlineslPriceincludeslinerental,tobreakthecustomersrelationshipwithBTlSeparatebillsformobileandbroadbandtoavoidbillshocklCheapfixed-networkcallscouldweakenFMSstrategylBitstreamaccesslimitsprofitabilityanddifferentiationfromBTservicesOrange BroadbandOrange(UK)lUndertakingitsownLLUBandofferingfreebroadbandaccessandvoicecallsfromthefixedlineformobilecustomerspayingGBP30(USD56)ormorepermonthlLLUBenablesservicedifferentiationandlowcostiftake-upisgoodlSmalloperatorsmaynotbeabletojustify(orrisk)up-frontinvestmentinLLUBlFreebroadbandmaybeunnecessaryandisasignificantcostTable 3: Strengths and weaknesses of Vodafone Casa FASTWEB and fixed broadband services from other mobile operators Source: Analysys Research, 2007Number1:VodafoneCasaFASTWEB(VodafoneItaly)AnalysysResearchLimited200718Number 2:SMS(O2UK)TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber2:SMS(O2UK)Messagingisthelargestcontributortonon-voiceARPUinEuropeandtheUSAInWesternEurope,SMSgeneratedEUR14.4billion(USD18.3billion)inrevenuein2006O2UKleadstheworldinmessagingARPU;averageSMSARPUwasGBP6.30(USD11.82)permonthinthelastthreemonthsof2006ClearfocusonSMSmarketleadershipEarlyavailabilityofSMSbundlesforprepaidandpostpaidcustomersStrongmarketingandpromotion,particularlytargetingyoungcustomersonprepaidtariffsSignificantvolumeincreasesachievedwithoutsubstantialpricecutsEasytoreplicateindevelopedanddevelopingcountries,duetothealmostuniversalavailabilityofSMSNotdependenton3GnetworksorsophisticatedhandsetsIncreasingthevolumeofSMSmessageswithoutmakingsubstantialpricecutsisthekeytosuccessMarket potential76%Implementation85%Suitability for reproduction89%Messagingcontinuestoproducethemajorityofnon-voiceARPUformostmobileoperatorsO2UKgeneratesthehighestmessagingARPUintheworldandhasincreasedthevolumeofSMSmessageswithoutsignificantlyreducingpricesServiceevaluation83%AnalysysResearchLimited200719O2UKoffersSMSbundlesforprepaidandcontracttariffslAstandardO2UKSMSispricedatGBP0.10(USD0.19)permessage.IfprepaidmobilecustomersbuySMSbundles,knownasBoltOns,theeffectivepricepertextmessagecanbesignificantlylowerthanthis,asshowninTable4.However,thepricepertextmessageisstillmaintainedattherelativelyhighlevelofGBP0.07 (USD0.13)permessageorabovefortheMessaging50andMessaging100options.lContractcustomersarealsoofferedSMSbundles,whichareslightlycheaperthanthoseofferedonprepaidtariffs.Forexample,aBoltOnincluding50messagesispricedatGBP3.0(USD5.6)permonth,whichisequivalenttoGBP0.06(USD0.11)pertextmessageiftheallocationisfullyused.TheWorldsTopTenNon-voiceServicesforMobileOperatorsBolt OnPriceEffective price per text message (if allocation is fully used)Messaging 50GBP3.99(USD7.49)GBP0.08(USD0.15)Messaging 100GBP6.99(USD13.11)GBP0.07(USD0.13)Messaging 200GBP9.99(USD18.74)GBP0.05(USD0.09)Messaging 400GBP11.99(USD22.49)GBP0.03(USD0.06)Table 4: Bolt On tariffs for O2s prepaid tariffs in the UK, March 2007 Source: Analysys Research, 2007Number2:SMS(O2UK)ServicedescriptionAnalysysResearchLimited200720O2UKleadstheworldinmessagingARPUTheWorldsTopTenNon-voiceServicesforMobileOperatorslMessagingcurrentlyrepresentsthedominantsourceofmobilenonvoicerevenueinmostcountries.InWesternEurope,SMSgeneratedUSD18.3billioninrevenuein2006.lO2UKleadstheworldinmessagingARPU.lInthelastthreemonthsof2006:wO2UKsaveragemonthlySMSARPUwasGBP6.30 (USD11.82),asshowninFigure3wthevolumeofmessagessentbyO2UKcustomersincreasedby30%comparedwiththelastthreemonthsof2005wO2UKscustomerseachsentanaverageof97textmessagespermonth(an18%increasesincethelastthreemonthsof2005)wrevenueperSMSwasGBP0.06(USD0.12).Figure 3: Messaging monthly ARPU for selected operators, 4Q 2006 Source: Analysys Research, 2007Number2:SMS(O2UK)MarketpotentialAnalysysResearchLimited200721ComparedtootherUKoperators,O2hasachievedasubstantialincreaseinSMSvolumeswithoutasignificantdropinpricinglO2hassignificantlyoutperformedotherUKoperatorsinthelevelof(andrateofgrowthin)messagingvolumes(whicharedominatedbySMS),asshowninFigure4.Theaveragenumberofmessagespercustomerpermonthinthesecondquarterof2006wasnearlydoublethatofVodafoneandOrange,andoverthreetimesthatofTMobile.lWithsimilarnumbersofcustomers,O2managedtoachievetwicethemessagingrevenueofOrangeandabout2.5timesmorethanTMobile,asshowninFigure5.lDespiteachievingthehighestincreaseinthenumberofmessagespercustomerpermonthofalloperators(24%fortheperiod1Q2005to2Q2006),O2sufferedonlyamodest7%declineinrevenuepermessage.Figure 5: Quarterly revenue from SMS and MMS messages for UK operators, 1Q 2005 to 2Q 2006 Source: Ofcom and Analysys Research, 2007Figure 4: Quarterly volume of SMS and MMS messages for UK operators, 1Q 2005 to 2Q 2006 Source: Ofcom and Analysys Research, 2007MarketpotentialTheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber2:SMS(O2UK)AnalysysResearchLimited200722O2UKhasovertakenO2IrelandastheleadingSMSARPUgeneratorTheWorldsTopTenNon-voiceServicesforMobileOperatorslO2GrouphasactivelypromotedSMSservicesintheCzechRepublic,Germany,IrelandandtheUK.lIn2005,O2IrelandgeneratedthehighestSMSARPUintheworld,withanaverageofUSD12.4permonth,comparedwithUSD10.7forO2UK.lO2UKhasnowsurpassedO2IrelandintermsofbothSMSARPUandSMSvolume.WhiletheaveragenumberofSMSmessagessentbyeachO2mobileuserinIrelandincreasedby9%inthethreemonthstoDecember2006,to87permonth,intheUKtheaveragenumberincreasedby18%inthesameperiod,to97permonth.InDecember2006,revenueperSMSwasUSD0.12inboththeUKandIreland.lAccordingtoMikeShort,VPofResearchandDevelopmentatO2,partofthereasonforthepopularityofSMSinIrelandwasthepricepremiumofvoicecalls,whichhasnowbeenreduced.ThestrongUKresultshavearisenfromtargetedmarketingefforts.Figure 6: SMS ARPU for O2 operators, 4Q 2005 to 4Q 2006 Source: Analysys Research, 2007Number2:SMS(O2UK)MarketpotentialAnalysysResearchLimited200723O2UKtargetedtheyouthsegmentearlierthanotherUKoperatorsandoffersanumberoffeaturestoencourageSMSusagelMikeShort,VPofResearchandDevelopmentatO2,saysthatoneofthemajorreasonsforO2ssuccesswithSMSwasitsearlytargetingofyouthcustomers,whotypicallyuseprepaidtariffs.O2wasthefirstoperatortoofferSMSBoltOns,makingitveryeasyforyoungpeopleonprepaidtariffstobuyabundleofmessagesforasmalladditionalcost.Itconfigureditstariffstoappealtoteenagers,studentsandpeopleintheirearly20s,andundertookextensivemarketingfocusedonthesecostconsciousgroups,forexamplepromotingthefactthattextmessagesarecheaperthanvoicecalls.O2UKundertookWebbasedcustomertargetingandsentoutawidevarietyofpromotionalmaterialwithmonthlybills,targetedatparentsandchildren,highlightingthecosteffectivenessofSMSandBoltOns.lO2offersavarietyofSMSbasedservicestoindividualsandcompanies,tostimulateSMSusage.Forexample:wtext alerts, news and information(suchassportsresults,horoscopes,jokesandgossip,breakingandnationalnewsupdatesandmoviereviews)sentdirectlytomobilephoneswiththeO2InfoTxtservicewfixed-to-mobile text messaging,allowingcompaniestosendtextmessagestolargenumbersofpeople(forexampletocustomers,suppliersorworkforce)atreducedrateswstatus messaging,lettingworkersreporttheircurrentstatustoanofficebasedcontrollerbydiallingashortcodeontheirmobilehandset.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber2:SMS(O2UK)ImplementationAnalysysResearchLimited200724O2UKshowsthatoperatorscanstilldobetterwithSMSlSMSisattractiveformobileoperatorsbecause:witdoesnotrelyon3Gnetworksordedicated(orexpensive)terminals.Itcanbeusedonallmobilehandsetsandisavailabletoallusersonboth2Gand3Gnetworkswitcangeneratemuchhigherrevenuepermegabyte(andhenceprofit)thanvoicetelephonyandmostemergingdataservices.O2sSMSmessagesgeneraterevenueofUSD786permegabyte,whileaoneminutevoicecallpricedatGBP0.20(USD0.38)generatesonlyUSD2.7.lIntheshortterm,therearesignificantopportunitiesinmanydevelopedmarketstoemulatethesuccessofO2andincreasethevolumeofmessageswithoutsignificantlyreducingprices.InWesternEurope,servicerevenuefromSMSwillincreasefromUSD23.3billionin2006toUSD24.57billionin2008.5lTheopportunitiesforSMS(orothertextmessagingservices)arediminishedinmarketswhereoperatorshavehistoricallychargedlowpricesformessaging,forexampleinJapan,wheremessagesarechargedaccordingtotheirdataconsumptionratherthanpermessage.lTherearesubstantialrevenueopportunitiesforSMSindevelopingmarkets,inlinewithmobilepenetrationgrowth.OperatorsindevelopingmarketsmustlearnfromthesuccessoftheleadingWesternEuropeanoperatorsandavoidunderpricingmessaging.TheWorldsTopTenNon-voiceServicesforMobileOperatorsSuitabilityforreproduction5Holden,W.,Person-to-Person Mobile Messaging in Western Europe: forecasts and analysis 200611,AnalysysResearch(Cambridge,2006).Number2:SMS(O2UK)SuitabilityforreproductionAnalysysResearchLimited200725OperatorsmusttrytodriveSMSvolumewithoutsubstantialpricecutsTheWorldsTopTenNon-voiceServicesforMobileOperatorslMobileoperatorsmustgivesufficientattentiontoSMSservicedevelopmentandmarketing.Bundledpricingcanbehighlyeffectiveatincreasingvolumes,whilestandardpricingofindividualmessagesshouldbekepthigh.lSMSARPUgrowthiscriticallydependentonmobileoperatorsdrivingvolumegrowthwithoutasubstantialdropinrevenueperSMS,whichO2hasachievedsuccessfully,asshowninTable5.lThereareopportunitiestodevelopaportfolioofmessagingservices,includingmobileemail,mobileinstantmessagingandbubblemessaging,allofwhichfeatureinthetoptenservices.lMobileoperatorsshouldavoidundueemphasisonmultimediamessaging.InWesternEurope,servicerevenuefromSMSwillstillbeoversixtimesthatofMMSby2011.6OperatorSMS price declineSMS volume increaseO27%24%Orange36%17%T-Mobile18%18%Vodafone15%17%Table 5: SMS price declines and volume increases for UK mobile operators, 1Q 2005 to 2Q 2006 Source: Analysys Research, 20076Holden,W.,Person-to-Person Mobile Messaging in Western Europe: forecasts and analysis 200611,AnalysysResearch(Cambridge,2006).Number2:SMS(O2UK)SuitabilityforreproductionAnalysysResearchLimited200726Number 3:MobileTVandVideoStreaming(3UK)TheWorldsTopTenNon-voiceServicesforMobileOperatorsMarketresearchindicatesdemandandawillingnesstopayformobileTVandvideoEarlyintroductionofmobileTVandvideoservicesenabled3todifferentiateclearlyfromitscompetitorsanddevelopthelargest3GcustomerbaseintheUKMobileTVandvideoservicesareakeyelementoftheservicemixthathasenabled3UKtoachievethehighestmobilenon-voiceARPUintheworldatGBP13.44(USD25.21)permonthin2006Popularcontentfromleadingproviders3hasthewidestW-CDMAcoverageintheUKat90%ofthepopulationVideoclipsachieveabalancebetweendemand,usageandrevenuepermegabyte,butstreamedchannelswillrunoutofcapacityifusagegrowsstrongly3islookingintobroadcasttechnologyoptionstocomplementW-CDMAstreaminginthefutureMobileTVandvideowillbepopularworldwideifoperatorscansecurepopular,brandedcontent.ThiswillbemostdifficultforsmalloperatorsOtheroperatorsalsooffermobileTVandvideousingstreaming,althoughmanyaretoofocusedonbroadcastchannelsonlyMobilenetworksmusthavegoodcoverage,andlargeoperatorsmayquicklyneedtomovetobroadcastingtechnologiesinordertoaccommodatethemostpopularcontentMarket potential74%Implementation84%Suitability for reproduction82%80%Aline-upofpopularcontent,includingbroadcastchannelsandvideoclipsondemand,withavarietyofwaystoselectandpayforcontent,appealingtodifferenttypesofcustomerW-CDMAisacost-effectivesolutionformobileTVandvideowhilepenetrationandusagearelowNumber3:MobileTVandVideoStreaming(3UK)ServiceevaluationAnalysysResearchLimited2007273UKoffersawidevarietyofbroadcastTVandvideoclipsusingWCDMAstreaminglSince2003,3UKhasusedthestreamingcapabilityofitsWCDMAnetworktodelivervideoclipsofpopularcontentand,morerecently,broadcastTVchannels.lCurrentcontentincludesmainstreamTV(forexample,ITV),sport(forexample,BarclaysPremiershipfootball),music(forexample,MTV),adultcontent(forexample,Playboy),childrenscontent(forexample,Nickelodeon)andusergeneratedcontent(SeeMeTV,whichallowsuserstosubmittheirownvideoclipsforotherstowatch).lCustomerscanaccessandpayfor3sTVandvideocontentinanumberofways:wad-hoc video clips and music videos.Typicalexamplesincludefreenewsandweather,BarclaysPremiershiphighlightsforGBP0.49(USD0.92),musicvideosforGBP0.99(USD1.86),videoclipsfromZoomagazineatGBP1.49(USD2.80)andusergeneratedvideocontentforGBP0.10(USD0.19)wpay-per-view mobile TV channels.Forexample,standardchannelssuchasITV1,FHMandNationalGeographiccanbeviewedfor24hoursforGBP0.49(USD0.92)each.Premiumchannels,suchasadultcontent,areavailableforhigherprices,forexampleGBP5.99(USD11.24)for12hourswmobile TV channel subscriptions.Forexample,asubscriptionto15standardTVchannelsispricedatGBP5(USD9.38)permonthwthemed service bundles.Userscanaddthemedbundlesofcontenttotheirmobileservicesubscriptions,whichincludeTVandvideoaspartofawidercollectionofcontent,asshownonthenextslideinTable6.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber3:MobileTVandVideoStreaming(3UK)ServicedescriptionAnalysysResearchLimited200728CustomerscanbuythemedbundlesofcontentcontainingTVandvideoTheWorldsTopTenNon-voiceServicesforMobileOperatorsPrice per monthTV and video contentOther content included in the priceTV ChannelsGBP5 (USD9)l15standardTVchannels:6degrees,AardmanTV,Bravo,FHMTV,ITN,ITV1,ITVPlay,Kerrang!,KissTV,MTVSnax,MTVTrax,Nickelodeon,ParamountComedy,VidZoneandZoneRealitylNoneNew Music ClubGBP5 (USD9)lUptothreemusicvideo(ormusictrack)downloadspermonthlUnlimitedmusicTVfromKiss,MTVandVidZonelUptothreemusictrack(ormusicvideo)downloadspermonthlUnlimitedaccessto100000non-DRMmusictrackslWeeklynewmusictextalertVideo PackGBP5 (USD9)lSkySportsvideoslVideoclipsofallBarclaysPremiershipgoalslVideohighlightsofeveryUEFAChampionsLeaguematchlSelectedcontentfromSoccerAMandFootball365TVl20minutesofvideocallstoother3UKcustomersl20videomessagestoother3UKcustomersSportGBP5 (USD9)lVideoclipsofallBarclaysPremiershipgoalslLivesoccercommentarybytextlGoalalertsforeveryPremiershipclublSportnewsalertslCricketwicketandscorealertsTable 6: Mobile TV and video content available from 3 UK Source: Analysys Research, 2007Number3:MobileTVandVideoStreaming(3UK)ServicedescriptionAnalysysResearchLimited2007293UKisexploitingthedemandformobileTVandvideoserviceslTraditionalTVisapowerfulforceintheconsumermarket.AcrossWesternEurope,householdpenetrationofTVisover97%,andpayTVhasgrownstronglyinrecentyears.lEarlymobileTVandvideoserviceshaveprovedpopular.ThefirstmobileTVandvideoondemandserviceswerelaunchedinSouthKoreain2002,tocoincidewiththelaunchofCDMA20001EVDO3Gtechnology.MobileTVandvideoserviceshelpedSouthKoreatoachievethefastesttakeupof3GservicesintheworldandveryhighlevelsofdataARPU.Forexample,bymid2004,SKTelecomhadover5million3Gsubscribers,ofwhomnearly3millionsubscribedtoitsmultimediaJuneservice(includingmobileTVandvideo),andannualdataARPUofalmostUSD200.lMobileTVhasahigherprobabilityofearlytakeupandrevenuegenerationthanothermobileservices,because:wmobileTVappealstothemassmarket,whereasotherservices,suchasgames,mayonlyappealtoaminorityofuserswTVisalreadywellunderstoodbyusers,whereasothermobileservices,suchasMMSandmobileInternet,arenewconceptsthatwilltaketimetocultivate.ReplicatingthetraditionalTVexperienceonamobilephonewillcreateapopularservicewcontentproviderscanpromotemobileTVservicesthroughtheirexistingTVchannels,forexampleadvertisinghighlightshowsoradditionalmaterialavailablethroughmobileTV.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber3:MobileTVandVideoStreaming(3UK)MarketpotentialAnalysysResearchLimited200730MobileTVandvideohavehelped3UKtoachievethehighest3GmarketshareintheUKandthehighestnonvoiceARPUintheworldTheWorldsTopTenNon-voiceServicesforMobileOperatorsl3UKhasbenefitedfromtheearlylaunchofmobileTVandvideoservices:wbydifferentiatingits3Gservices,mobileTVandvideohelpeditscustomerbasetogrow,asshowninFigure7wasacorenonvoiceservice,mobileTVandvideohavehelped3UKtoachievetheworldshighestnonvoiceARPU,asshowninFigure8.lParticulareventshavecreateddemandfor3UKsmobileTVandvideoservices:wcoverageofthe2006FIFAWorldCupstimulated3.6millionmobileTVandvideoviewingsoveritsfourweekdurationwtherewere3.5millionstreamsofBigBrothervideofootageduringthe2006series,withanaverageviewingtimeof9.3minuteswtherewere10millionmusicvideodownloadsinthefirstsixmonthsoftheservice.Figure 7: Growth in 3G customers for 3 UK and Vodafone UK, March 2004 to March 2007 Source: Analysys Research, 2007Figure 8: Monthly non-voice ARPU of selected operators around the world, 2006 Source: Analysys Research, 2007Number3:MobileTVandVideoStreaming(3UK)051015202530VodafoneGermanyCingularWirelessUSAOrangeFranceVodafoneUKNTTDoCoMoJapan3UKNon-voiceARPU(USD)01234Mar-04Mar-05Mar-06Mar-073Gcustomers(million)3VodafoneMarketpotentialAnalysysResearchLimited2007313UKhasatrackrecordofofferingpopularmobileTVandvideocontentinordertoattractcustomersDateContentSep 2003SecuredtherightstoshowUEFAChampionsLeaguesoccerhighlightsto2007Oct 20033andVodafonesecuredtherightstoshowFAPremierLeaguesoccerhighlightsto2007Jun 2004LaunchedSkySportsserviceJul 2004OfferedmobilevideohighlightsoftheWimbledontennistournamentandOpenGolftournamentNov 2004LaunchedmobilevideoclipsfromTheXFactortalentshowJan 2005LaunchedmobilevideoclipsfromCelebrityBigBrotherSep 2005SignedthefirstmobileTVdealinEuropewithWaltDisney,tooffermobilehighlightsofLostOct 2005LaunchedSeeMeTVNov 2005SignedadealwithITVtoshowmainstreamcontent,includingCoronationStreet,EmmerdaleandImACelebrityGetMeOutofHere!Jun 2006OfferedfreeaccesstothreemobileTVchannelscoveringFIFAWorldCuphighlightsanddiscussionAug 2006SignedanexclusivedealtostreamITV1(theUKsmostpopularcommercialTVchannel)on3UKmobilesNov 2006LaunchedSkyMobileTV,offeringupto27channelsfromBSkyBNov 2006CollaborationwithSlingMediatoenablecustomerstoviewtheirhomeTVchannelsontheir3GhandsetsMar 2007Extendedrangeoffree(advertising-funded)video,includingnews,comedy,gossip,animationsandfilmTable 7: Selected highlights from 3 UK mobile TV and content evolution Source: Analysys Research, 2007TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber3:MobileTVandVideoStreaming(3UK)ImplementationAnalysysResearchLimited2007323UKusesWCDMAstreamingtodeliveracombinationofbroadcastandunicastTVserviceslIntheshortterm,streamingdataprovidesacosteffectivemeansofdeliveringamixofbroadcastandondemandmobileTVandvideoservicestoasmallnumberofusers,particularlyasusageislikelytoberelativelylow.lCoverageiscriticaltothesuccessofmobileTVandvideo,and3hasthewidest3GcoverageintheUK,announcing90%populationcoveragefrom7250radiositesinFebruary2007.3beganimplementingHSDPAacrossitscoveragefootprintinthesecondhalfof2006andwillcompletethisinthefirsthalfof2007.lBroadcastingTVchannelscanconsumesubstantialnetworkcapacityinaWCDMAnetworkifmultiplecustomersinthesamecellwanttoreceivethesamechannel.Theremaybeparticularproblemsdeliveringhighprofileliveevents,suchasbreakingnewsstoriesormajorsportingevents.Aspenetrationandusageoftheserviceincrease,itwillbecomeessentialfor3tohaveabroadcastingtechnologysolutiontocopewithdemand.In2006,3UKjoinedwithVodafone,TelefnicaandOrangetotrialtdTVtechnologyfromIPwireless,whichenablesWCDMAoperatorstomodifytheirWCDMAnetworksinordertobroadcastTV(andradio)content.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber3:MobileTVandVideoStreaming(3UK)ImplementationAnalysysResearchLimited200733MobileTVandvideoserviceshavestrongpotentialinotherdevelopedmarketslTVhasuniversalappeal,andmobileTVandvideoservicescouldbesuccessfulanywhereintheworld.lManymobileoperatorshavenowlaunchedmobileTVandvideoservicesbasedon3Gtechnology.Forexample,Vodafonelaunched3Gvideoservicesacross13marketsinNovember2004andinthesamemonthannouncedthatTVandvideoserviceswouldbeanimportantelementofits3Gserviceproposition.Ithasnowextendeditsservicesto17markets.lImplementationrequiresamixofglobalandlocalcontent,supportedbyhighqualityservicedelivery:wsuccessfulservicesneedbreadthanddepthofcontent,includingmaterialderivedfromleadingTVprogrammesorchannelsineachcountrywglobalbrandsandcontent,forexampleinternationalfilms,music,personalitiesandsportwlocalbrandsandcontent,forexamplenationalnews,personalities,sportandweatherwpopularTVcontent,forexamplecomedy,realityTVandsoapoperas.l3GnetworkcoverageandqualitywillbekeytodeliveringahighqualitymobileTVandvideostreamingservice.Basic3GwillhavelimitedcapacitytocarryvideocontentandHSDPAmayberequiredastakeupandusagegrow.Ultimately,broadcastingtechnologiesmayalsoberequired,toachievesimultaneoustransmissionofmobileTVtoamassmarketaudience.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber3:MobileTVandVideoStreaming(3UK)SuitabilityforreproductionAnalysysResearchLimited200734Number 4:BlackBerryEmailandIM(TMobileUSA)TheWorldsTopTenNon-voiceServicesforMobileOperatorsEmailandIMarewidelyusedonfixednetworks,bybothenterprisesandconsumers,andthereismassivepotentialinbringingtheseservicestomobileTherewereover5millionBlackBerrysubscriberaccountsintheUSAattheendof2006Collectively,mobileemailandIMwillgenerateservicerevenueofUSD6.57billionin2011inWesternEuropeUsabilityiscriticaltomobileemailandIMservices.TheBlackBerryispopularintheenterprisemarketwithitsergonomicdesignandefficientdatacompressionT-MobilehasdesignedandpricedBlackBerryservicesforconsumersaswellasbusinessesThereisscopeforimprovedterminalsfortheconsumermarket,andadditionalrevenueopportunitiesfromemailandIMTherearemajoropportunitiesindevelopedmarkets,althoughSMSwillbeacompetitorinthemassmarketEmailandIMdonotrequire3GnetworksOpportunitiesindevelopingmarketsmaybelimitedbythecostofdevicesOperatorsneedtofocusonprovidingbetter(andcheaper)terminalsforconsumersanddeliveringend-to-endemailandIMsolutionsMarket potential78%Implementation82%Suitability for reproduction77%79%EmailandIMarehighlypopularservicesthatconsumerelativelylittlenetworkresourceandhavenocontentcosts,sotheycanbeextremelyprofitablecomparedtoothermobileservicesT-Mobileistargetingconsumers,aswellasenterprises,withitsBlackBerryservicesNumber4:BlackBerryEmailandIM(T-MobileUSA)ServiceevaluationAnalysysResearchLimited200735TMobileoffersarangeofBlackBerrytariffs,includingbundleswithlargeallocationsofvoiceminuteslTMobileUSAoffersaffordabletariffs(showninTable9)forbothenterpriseusers(USD39.98permonth)andconsumers(USD29.99),eachprovidingunlimitedemailanddataaccess(forexample,smallscreenWebbrowsing).lTheoperatoralsooffersbundlesofvoiceanddata,withagenerousallocationofanynetwork,anytimevoiceminutes.Forexample,foranextrachargeofaboutUSD30permonth,mobileusersreceiveanallocationof1000minutesaneffectivepriceofUSD0.03perminute(ifthefullallocationisused).AveragevoiceusagepercustomerforTMobileUSAduring2006was1031minutespermonth.TheWorldsTopTenNon-voiceServicesforMobileOperatorsMonthly priceData and email allowance per monthInclusive voice minutesPrice of additional voice minutesBlackBerry Unlimited with Enterprise EmailUSD39.98UnlimitedNoneUSD0.20/minuteBlackBerry Minutes & Mail EnterpriseUSD69.99Unlimited1000USD0.35/minuteBlackBerry Minutes & Mail Enterprise UltraUSD89.99Unlimited1500USD0.35/minuteBlackBerry UnlimitedUSD29.99UnlimitedNoneUSD0.20/minuteBlackBerry Minutes & MailUSD59.99Unlimited1000USD0.35/minuteBlackBerry Minutes & Mail UltraUSD79.99Unlimited1500USD0.35/minuteTable 9: T-Mobile USA BlackBerry tariffs, March 2007 Source: Analysys Research, 2007Number4:BlackBerryEmailandIM(T-MobileUSA)ServicedescriptionAnalysysResearchLimited200736TherearesignificantopportunitiesforemailandIMinbothenterpriseandconsumermarketsTheWorldsTopTenNon-voiceServicesforMobileOperatorslEmailisacriticalserviceformanyenterprises,oftenrepresentingtheprimemeansforemployeestocommunicatewitheachotherandwithcustomers.Thereisincreasingdemandfromenterprisestomobileenabletheiremployeeswhenawayfromtheirdesks.lThereisalsostronggrowthintheadoptionanduseofemailandIMintheconsumermarket,anddemandfromconsumerswishingtoaccesstheiremailandIMwherever,andwhenever,theywant.lGlobally,theBlackBerrysubscriberbaseincreasedby95%duringtheyearendedMarch2006,to4.9millionusers,andover4millionBlackBerrydeviceswereshippedintheyear.lInthequarterendedDecember2006,1.8millionBlackBerrydevicesweresolda60.7%increaseonthesamequarterinthepreviousyear.lBlackBerryhadabout7millionsubscriberaccountsinDecember2006,approximately73%ofwhichwereinNorthAmerica.lAswithSMS,mobileemailandIMarepotentiallyhighlyattractiveservicesformobileoperators.Therearenocontentcosts(ascontentisusergenerated),andemailandIMconsumerelativelylittlenetworkresource,potentiallygeneratingsignificantlyhigherrevenuepermegabytethanmanyothernonvoiceservices.Number4:BlackBerryEmailandIM(T-MobileUSA)MarketpotentialAnalysysResearchLimited200737MobileemailandIMrevenueswillincreasesignificantlylServicerevenueformobileemailandIMaresettoincreasesubstantially,asshowninFigure9,andcollectivelytogreatlyexceedtherevenuefrommultimediamessaging(forecasttobeUSD3.68billionin2011).lInWesternEurope,servicerevenuefrommobileemailwillincreasethreefold,fromUSD1.06billionin2005toUSD4.60billionin2011.lServicerevenuefrommobileIMwillincreasebyafactorof32,fromUSD0.06billionin2005toUSD1.97billionin2011,inWesternEurope.lCollectively,mobileemailandIMwillgenerateservicerevenueofUSD6.57billionin2011inWesternEurope.Thiswillrepresentabout29%oftherevenuegeneratedbySMS.Figure 9: Service revenue for mobile email and IM in Western Europe, 200511 Source: Analysys Research, 2007 7TheWorldsTopTenNon-voiceServicesforMobileOperators7Holden,W.,Person-to-Person Mobile Messaging in Western Europe: forecasts and analysis 200611,AnalysysResearch(Cambridge,2006).Number4:BlackBerryEmailandIM(T-MobileUSA)Marketpotential012345672005200620072008200920102011Servicerevenue(USDbillion)EmailIMAnalysysResearchLimited200738TMobileoffersBlackBerryterminalsthatarestylishandeasytouseTheWorldsTopTenNon-voiceServicesforMobileOperatorslCurrently,thevastmajorityofemailsandIMsaresentfromPCs,withlargescreens,fullsizekeyboardsandeasytouseprogrammes(suchasMicrosoftOutlookandWindowsMessenger).WhiletherehavebeenmanypreviousattemptsbymobileoperatorstooffermobileemailandIMservices,mosthavefounderedduetotheconstraintsofmobiledevices(e.g.thelimitedkeyboard,displayandinadequateuserinterface).EasytousemobiledevicesarecriticalforasuccessfulmobileemailorIMservice.lTMobilehasestablishedacloserelationshipwithRIM(whichmanufacturesBlackBerryterminals).RIMhasbeenhighlysuccessfulinmanufacturingdevicesspecificallydesigned(andoptimised)formobileemail(andIM),byincorporatingaQWERTYkeyboard,highqualitydisplayandauserinterfacedesignedspecificallytomakeiteasytosendandreceivetext.Tomanyenterpriseusersneedingaccesstotheiremailsonthemove,BlackBerryterminalshavebecomemusthaves.BlackBerryterminalshavebecomestatussymbols,withastrongbrandidentity.lTMobileoffersarangeofBlackBerrydevices,includingthe7290,7105t,Pearl8100and8700g.TMobileUSAisexploitingthestrongbrandofBlackBerrybyofferingthelatestBlackBerryterminalsonanexclusivebasisforalimitedperiodaftertheirlaunch.lInSeptember2006,TMobilelaunched(exclusivelytotheUSA)theBlackBerryPearlterminal,claimingthistobe“theidealphonefortheburgeoningconsumermobileemailmarket,providingthesleeknessandmultimediacapabilitiesthatconsumersseek”.Number4:BlackBerryEmailandIM(T-MobileUSA)ImplementationAnalysysResearchLimited200739TMobilehasdevelopedBlackBerryservices,whichareunderpinnedbyhighqualityserviceandaimedatenterprisesandconsumersTheWorldsTopTenNon-voiceServicesforMobileOperatorslAswellasofferingarangeoftariffssuitedtobothenterprisesandconsumers,TMobilehasdevelopedservicestosuitbothmarkets:wEnterprise Server plansenableenterpriseuserstoaccesscorporatenetworks,wirelesslysynchroniseemail,calendarandcontactswiththeirdesktopemailapplications,andhaveaccesstoInternet/intranetandIM.ConnectiontoenterprisenetworksrequiresaBlackBerryEnterpriseServer.BlackBerryEnterpriseServersoftwaremustbepaidforinadditiontotheBlackBerryServerplantariffswBlackBerry Internet Service plans forconsumers,allowuserstointegrateuptotenoftheirexistingemailaccounts.lTMobilehasalsofocusedonimprovingnetworkquality,withsignificantinvestmentinEDGEtechnologyandnewbasestations.TMobileadded3200basestationstoitsnetworkin2006,bringingthetotalnumberintheUSAto36100.lTMobilehasalsoconcentratedonprovidinggoodcustomercare.InJanuary2007,TMobileannouncedthatithadachievedthehighestrankingfromtheJ.D.PowerandAssociates2007WirelessCustomerCarePerformanceStudymarkingthefifthconsecutiveperiodinwhichTMobilehadreceivedthehighestrankinginthecustomercarestudy.Number4:BlackBerryEmailandIM(T-MobileUSA)ImplementationAnalysysResearchLimited200740DevelopedcountriesofferthegreatestopportunitiesformobileemailandIMservicesTheWorldsTopTenNon-voiceServicesforMobileOperatorslWithincreasingpenetrationofInternetaccessandfixedbroadbandindevelopedcountries,andrapidgrowthintheusageofemailandIMonfixednetworks,therearesubstantialopportunitiesinbothenterpriseandconsumermarkets(althoughcompetitionwithSMSwillbeachallengeinthemassmarket).ThelowerpenetrationofPCs(andhenceemail)indevelopingcountries,coupledwiththehighcostofBlackBerrysandsimilardeviceswillsuppressthegrowthofmobileemailandIM,withvoiceandSMSmorelikelytobesuccessfulintheshortterm.lBlackBerryterminalsareavailableformanycellulartechnologies,includingCDMA2000andEVDO,EDGE,GPRS,iDENandWCDMA.RIMenvisagessignificantfurtheropportunitiestosellBlackBerrystoenterprisesandhasmanufacturedBlackBerrysfortheconsumermarket,expectingterminalpricestofallasthetechnologycontinuestomature.Avarietyofotherdevices,suchasPDAs,havealsonowemergedasviablealternativesforemailandIM.MobileoperatorsneedtobuildrelationshipswithRIM(iftheywishtoofferBlackBerrys) and/ormanufacturers ofalternativeterminals.Inparticular,operatorsshouldlookforopportunitiestodevelopnew(cheaper)devicesforconsumers.lThereareopportunitiesformobileoperatorstoofferendtoendemailandIMsolutions.AnumberofthirdpartieshavealreadydevelopedIMsoftware,whichenduserspaytouse;forexample,MobileInstantMessengerforBlackBerry,availableforUSD5.95permonth,allowsuserstochatonallpublicIMnetworks,includingAOL,GoogleTalk,ICQ,Jabber,MSNandYahoo!.Ratherthanactingsolelyasabitpipe,operators(particularlyglobalones)havetheopportunitytodevelopandoffertheirownIMsolutions,andgenerateadditionalmonthlyincome(oratleastdifferentiatethemselvesfromcompetitors).Number4:BlackBerryEmailandIM(T-MobileUSA)SuitabilityforreproductionAnalysysResearchLimited200741Number 5:MobileBroadband(SprintNextelUSA)TheWorldsTopTenNon-voiceServicesforMobileOperatorsEnterprisesindevelopedmarketsareincreasinglydependentonfixedbroadbandservices.Thiscreatesdemand(andawillingnesstopay)forsuchserviceswhencustomersareonthemoveIndevelopingmarkets,theabsenceofDSLnetworksprovidesmobileoperatorswiththeadditionalopportunitytoofferbroadbandservicestofixedlocationsaswellasmobilecustomersSprintNextelisinvestingheavilytoprovideEV-DORevisionAcapabilityacrossitsentirecoverageareabytheendof2007WithitsEV-DORevisionAnetwork, SprintNexteloffersfastdownloadanduploadspeeds,withaveragedownloadspeedsof600kbit/s1.4Mbit/sSprintNextelstariffsareaffordable(forenterpriseusers),butnotsolowthattheymakeitimpossiblefortheservicetobeprofitableMobileoperatorswillneedtoinvestinCDMA2000EV-DORevisionAorHSDPAHigh-qualitycoveragemayrequiresubstantialinvestmentinnewbasestationsMarket potential53%Implementation81%Suitability for reproduction85%3Gcoverageunderpinsmobilebroadband,withenterpriseusersdemandingubiquitous,high-qualitycoverage.SprintNextelisundertakingmassiveinvestmenttomeetthisneed73%Number5:MobileBroadband(SprintNextelUSA)ServiceevaluationAnalysysResearchLimited200742lNexteldevelopedareputationforprovidinghighqualityservicesforenterpriseusers,andfollowingitsmergerwithSprintPCSthecombinedgroupiscontinuingtofocusontheneedsofenterpriseusers.lTheSprintNextelMobileBroadbandserviceprovideshighspeedbroadbandaccessforenterpriseuserswithlaptopPCsandPDAs.lForcustomerssigningatwoyearcontract,theMobileBroadbandserviceispricedatUSD59.99permonthforunlimitedaccess,andcustomersreceiveafreePCMCIAcard.CustomerssigningaoneyearcontractpayUSD79.99permonth.lSprintNextelofferstheserviceonitsnewCDMA2000EVDORevisionAnetwork,wherethisisavailable,andEVDORevision0elsewhere.ItsfirstEVDORevisionAPCMCIAcardwaslaunchedinAugust2006,andtheRevisionAservicewaslaunchedinSeptember2006,withrolloutcontinuingduring2007.AsofApril2007,EVDORevisionAwasavailableto109millionpeople.lWithitsRevisionAnetwork,SprintNextelclaimstoofferaveragedownlinkspeedsof600kbit/s1.4Mbit/s,andaverageuplinkspeedsof350500kbit/s.Revision0providesaveragedownlinkspeedsof400700kbit/s,andaverageuploadspeedsof4070kbit/s.lSprintNextelcurrentlyoffersthePX500PCMCIAmobilebroadbandcard,developedbyPantechWireless,whichsupportsCDMA2000EVDORevision0andRevisionA.SprintNexteloffersmobilebroadbandaccessusingCDMA2000EVDORevisionATheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber5:MobileBroadband(SprintNextelUSA)ServicedescriptionAnalysysResearchLimited200743MobilebroadbandhassignificantpotentialindevelopedanddevelopingmarketsTheWorldsTopTenNon-voiceServicesforMobileOperatorslWiththerapidlygrowingpenetrationoffixedbroadband,peoplearebecomingincreasinglyaccustomedto(anddependenton)highspeedInternetaccess.BroadbandpenetrationinmostWesternEuropeancountrieswasbetween30%and50%ofhouseholdsbytheendof2006.lLaptopcomputersarebecomingincreasinglyprevalent,with78.8millionsalesglobally(onethirdofallcomputersales)in2006,accordingtoDisplaySearch.Thisgivescomputerusersmuchgreatermobilitythantheyhaveeverhadbefore.lEnterpriseusers,inparticular,valuetheproductivitygainsthatcanbemadefromhavingmobileInternetaccess,andarepreparedtopayapremiumfortheservice.lProrataannualdataARPUforSprintNextelreachedUSD105forthequarterendedDecember2006,representinganincreaseof66%overthesameperiodin2005.InitsInvestorQuarterlyUpdateinFebruary2007,SprintNextelattributedthisgrowthpartlytotheincreasinguseoflaptopdatacards.lIndevelopingcountries,thelackoffixedinfrastructureoffersfurtheropportunitiesformobileoperatorstodeliverfixedbroadbandservicesusingcellulartechnology.Number5:MobileBroadband(SprintNextelUSA)MarketpotentialAnalysysResearchLimited200744SprintNextelsfocusonachievinghighthroughputsandwideavailabilityisunusualandcommendableTheWorldsTopTenNon-voiceServicesforMobileOperatorslSprintNextelsearlydeploymentofCDMA2000EVDORevisionAenablesittoofferconsiderablyhigherthroughputsthanalternativeservices(forexample,basedonCDMA2000EVDORevision0orEDGE).Furthermore,unlikeothertechnologies,EVDORevisionAincorporatesanumberofcapabilitiesthatenhancethequalityoftheservice,forexampletoimprovesupportforVoIP.lSprintNextelisinvestingheavilyinnetworkcoverage.In2006,itaddedmorethan3400basestationsites,andplanstoaddanother4000in2007.ItplanstoupgradeitsentirenetworktoEVDORevisionAbythethirdquarterof2007.lInWesternEurope,operatorshavebeguntoofferHSDPAservices,which(inasimilarwaytoEVDORevisionA)canprovideaveragedownlinkdataratesof1Mbit/soraboveonawideareabasis.However,theygenerallysufferfromlimitedcoverage.Forexample,intheUK,Vodafone,TMobileandOrangelaunchedtheirHSDPAservicesinJune2006,August2006andFebruary2007,respectively.Vodafoneplanstoreach75%populationcoveragebythemiddleof2007.OrangewillhaverolledoutHSDPAtothetopfiveUKcitiesbytheendof2007.TMobileclaimstocoverallkeyurbanareas,aswellasmajorroads,transporthubs(suchasairportsandferryterminals),andvenuesformajorpublicevents.Number5:MobileBroadband(SprintNextelUSA)ImplementationAnalysysResearchLimited200745SprintNextelhasaclearstrategyandeffectivemarketingtotargetenterprisecustomers,althoughitsWiMAXplanscreateuncertaintyTheWorldsTopTenNon-voiceServicesforMobileOperatorslSprintNextelbuildsonNextelssuccessintheenterprisemarketandpromotesitsMobileBroadbandservicebyoffering“BlazingFastSpeedsontheNationsLargestMobileBroadbandNetwork”.Itaggressivelypromotesitscompetitiveadvantage,forexamplewiththeclaimthat“SprintMobileBroadbandis5fasterthanCingularsEDGE”.lHowever,thereisariskthatthecurrentfocusonimprovingtheEVDORevisionAservicewillbecomedilutedbySprintNextelsplanstorolloutanationwideWiMAXnetwork.InAugust2006,SprintNextelannouncedplanstoinvestUSD2.53billion(in2007and2008)inanationwidemobileWiMAXnetwork.SprintNextelmustnotmakethesamemistakeasSouthKoreanoperators;inspiteofspendingtimeandmoneyonWiBro,takeuphasbeenpoor.InFebruary2007,SKTelecomannouncedthatitsWiBroservicehadattractedjust151subscribersinitsfirsteightmonthsofoperation.KThadattracted906customers.Number5:MobileBroadband(SprintNextelUSA)ImplementationAnalysysResearchLimited200746SuccesswithmobilebroadbandmayrequiresubstantialinvestmentTheWorldsTopTenNon-voiceServicesforMobileOperatorslToimplementasuccessfulmobilebroadbandservice,mobileoperatorswillneedtoinvestinanadvancedcellulartechnology,suchasCDMA2000EVDORevisionAorHSDPA.While147operatorshavecommittedtodeployHSDPAtechnologyand100ofthesehavealreadylaunchedcommercialservices,thevastmajorityoftheseservicesareataveryearlystageofdevelopment.Furthermore,manyoperatorshavenotyetdeployed3Gnetworksand/ordonotevenhave3Glicences.lWideserviceavailabilitywillbeessential,whichmayalsorequiresubstantialinvestment.Attheveryminimum,mobileoperatorsmustquicklyrolloutHSDPAorEVDORevisionAtoalloftheirexistingbasestations.Furthermore,forHSDPAandEVDORevisionAtodelivertheirhighestdatarates(inexcessof1Mbit/s),signallevelsmustbehigh.Mobileoperatorsmayneedtobolstercoveragebysignificantlyincreasingthenumberofbasestations.Inthetwoyearstotheendof2007,SprintNextelwillhavedeployedanadditional7400basestations.Number5:MobileBroadband(SprintNextelUSA)SuitabilityforreproductionAnalysysResearchLimited200747MobileoperatorsmustconsiderthethreatofmobilebroadbandtorevenuesfromexistingvoiceandmessagingservicesTheWorldsTopTenNon-voiceServicesforMobileOperatorslMobileoperatorsmustcarefullybalancetheaffordabilityofmobilebroadbandforcustomerswiththeirownserviceprofitability.ThecostspermegabyteofHSDPAandEVDORevisionAnetworksaresignificantlyhigherthanfixednetworks,suchasDSL.Dependingontheapplicationsusedbyenterprisecustomers,suchservicescanbeextremelyusageintensive,whichcanreducerevenuepermegabytetoverylowlevels.Forexample,a10GBmonthlyusageofSprintNextelsservice(pricedatUSD59.99permonth)wouldgeneraterevenuepermegabyteofjustUSD0.006.Mobileoperatorsmustavoidreducingpricestounacceptablylowlevelssimplytoencouragetakeupbyconsumers.Operatorsmustfocusonservingenterpriseuserswell,wherecoverageandspeedsmaybemoreimportantthanprice.Theyshouldconsiderimplementingmonthlytrafficlimits,toconstrainaverageusageto1GBorless.lMobileoperatorsmustcarefullyconsidertheservicesthatwillbeallowed,toavoidcannibalisationoftheirexistingvoicetelephonyandmessagingrevenues.Provisionofunlimitedmobilebroadbandservicesatrelativelyaffordablepricing,wherethirdpartyVoIPandIMservicesareallowed,couldencourageuserstousethesefreeservices,ratherthanthevoicetelephonyandmessagingservicesofferedbytheoperators.lToavoidcannibalisationofvoicetelephonyrevenue,operatorscanreplicateSprintNextelsapproachofprovidingasignificantmonthlydiscount(USD20)forsubscriberstotheirbundledvoicetariffs.Theycouldalsoconsiderotherapproaches,suchasdifferentialpricingaccordingtotheservicesallowed.Forexample,intheUK,TMobileoffersitsHSDPAbasedmobilebroadbandservicewithtwotariffsitswebnwalkPlusserviceforGBP29(USD54),offering3GBpermonthbutnoVoIP,anditswebnwalkMaxserviceforGBP44(USD83),offering10GBpermonthandpermittingVoIPservices.Number5:MobileBroadband(SprintNextelUSA)SuitabilityforreproductionAnalysysResearchLimited200748Number 6:MobileTVBroadcasting(3Italy)TheWorldsTopTenNon-voiceServicesforMobileOperatorsGlobalmarketresearchindicatesstrongdemandandawillingnesstopayformobileTVInItaly,98%offamilieshaveaTVandpeoplewatchforanaverageoffourhoursperday3Italyachievedrapidgrowthto100000customersinitsfirstmonthofoperation,andachieved400000customersbyMarch20073ItalysDVB-HcustomerARPUis60%higherthanforothercustomers3ItalyobtainedaDVB-HlicenceandbroadcastinginfrastructurerelativelycheaplybyacquiringanexistingbroadcastcompanylicenceholderLaunchedwith75%populationcoverageHigh-profilelaunch,timedtocoincidewiththe2006FIFAWorldCupContentincludesmainstreamItalianTVandpremiumchannels3Italyisproducingitsownlow-costmade-for-mobilecontentSuccessfulmobilebroadcastTVserviceswilldependonstrongcontentandtherighttechnologyOperatorsinothermarketswillfinditdifficulttoacquireaDVB-Hlicenceandinfrastructureaseasilyandcost-effectivelyas3ItalyhasdoneOperatorswillneedtochooseasuitabletechnologyfromDAB-IP,DMB,DVB-H,MediaFLOandtdTV.Thebestsolutionwilldependonspectrumavailability,sizeofoperatorandmarketsituationMarket potential74%Implementation76%Suitability for reproduction59%70%EarlyacquisitionofaDVB-Hlicence(atarelativelycheapprice)anddeploymentofwidecoveragehasenabled3Italytoestablishmobilebroadcastservicesthathavealong-termevolutionpathAmixofmainstreamItalianTV,premiumandlow-costmade-for-mobilecontentattractscustomersNumber6:MobileTVBroadcasting(3Italy)ServiceevaluationAnalysysResearchLimited2007493ItalywasthefirstoperatorinEuropetolaunchcommercialmobileTVbroadcastinglInDecember2005,3acquiredaDVBHlicencebyacquiringaregionalTVbroadcasterinItaly.lInJune2006,3launchedmobileTVserviceswithDVBHcoverageto75%oftheItalianpopulation.lInitially,3offerednineTVchannelsandprovidedexclusivemobileTVcoverageofall64matchesofthe2006FIFAWorldCup.lByMarch2007,3offered12mobileTVchannels.TheseincludeamixtureofmainstreamTV(suchasRAI1and2),madeformobileTV(producedinhouseby3)andpremiumcontent(suchasBigBrotherandadultcontent),withextensivecoverageofmajorsportinItaly(forexample,SerieAfootballandMotoGPmotorcycleracing).lPrepaid(payperview)tariffsenableuserstowatchindividualTVchannelsforapredefinedlengthoftime,rangingfromonedaytothreemonths.lPostpaid(payTV)tariffsallowuserstosubscribetoagroupofchannelsonanongoingbasis.l3supplementsitsmobileTVrevenuewithselectedadvertising.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber6:MobileTVBroadcasting(3Italy)ServicedescriptionAnalysysResearchLimited2007503ItalyoffersavarietyofprepaidandpostpaidmobileTVtariffs,alongwithfreehandsetpromotionslUserscanbuyprepaidaccesstovariouschanneloptionsforaday,aweek,amonthorthreemonths,asshowninTable10,inasimilarwaytopayperviewTV.lPostpaidtariffs,similartopayTVsubscriptions,allowuserstobundleTVserviceswith3Gvoiceanddataservices,asshowninTable11.l3encouragesmobileTVservicetakeupwithpromotionaloffers.Forexample,totheendofMarch2007itofferedafreemobileTVhandsettoanycustomertakingpostpaidservicesforatleasttwoyearsandtoanyprepaidcustomercommittingtospendatleastEUR10(USD13)permonthfor30months.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAll basicchannelsBig BrotherchannelPlayboychannelPenthousechannel1 dayEUR3(USD4)EUR3(USD4)EUR3(USD4)EUR3(USD4)1 weekEUR9(USD11)EUR9(USD11)EUR9(USD11)EUR9(USD11)1 monthEUR19(USD24)EUR19(USD24)EUR19(USD24)EUR19(USD24)3 monthsEUR29(USD37)n/aEUR29(USD37)EUR29(USD37)Table 10: Prepaid tariffs for 3 Italys DVB-H broadcast mobile TV service Source: Analysys Research, 2007Price per monthServicesZero 5EUR29(USD37)AccesstoallbasicTVchannels,plus60minutesperdayof:lvoicecallstoanynationalnetworklvideocallstoany3Italymobilelvoicecallstointernationalzone1Zero 7EUR49(USD62)Asabove,plus:10GBInternetaccess10SMS/MMS/videomessagesperdayTable 11: Postpaid tariffs for 3 Italys DVB-H broadcast mobile TV service Source: Analysys Research, 2007Number6:MobileTVBroadcasting(3Italy)ServicedescriptionAnalysysResearchLimited200751ThereiscompellingevidenceofconsumerdemandformobileTVbroadcastinglConsumertrialshaverevealedstronginterestinmobileTVbroadcasting,alongwithawillingnesstopayfortheseservices.Forexample:wInatrialofDVBHservicesbyAbertisTelecom,NokiaandTelefnicainSpain,userswatchedanaverageof140minutesperweekofmobileTV.Ofthosetakingpartinthetrial,55%indicatedthattheywouldcontinuetousetheserviceiftheyhadtopayuptoaboutEUR5(USD6)permonth8wInatrialofDABIPservicesbyBTMoviointheUK,userswatchedanaverageof66minutesperweekofmobileTV(andlistenedto95minutesperweekofmobileradio).AroundtwothirdsoftriallistsindicatedthattheywerewillingtopayuptoGBP8(USD15)permonthfortheservice.9lAswithstreamedmobileTVandvideoservices(suchasourNumber3service),mobileTVhasahigherprobabilityofearlytakeupandrevenuegenerationthanotherservices,because:wmobileTVappealstothemassmarket,whereasotherservices,suchasgames,mayonlyappealtoaminorityofuserswTVisalreadywellunderstoodbyusers,whereasothermobileservices,suchasMMSandmobileInternetaccess,arenewconceptsthatwilltaketimetocultivate.ReplicatingthetraditionalTVexperienceonamobilephonewillcreateapopularservicewcontentproviderscanpromotemobileTVservicesthroughtheirexistingTVchannels,forexampleadvertisinghighlightshowsoradditionalmaterialavailablethroughmobileTV.TheWorldsTopTenNon-voiceServicesforMobileOperators8AbertisTelecom,NokiaandTelefnicaMvilesunveilresultsoffirstdigitalmobileTVpilotinSpain,Nokiapressrelease(Barcelona/Espoo,15February2006).9Lloyd,E.,Maclean,R.andStirling,A.,MobileTVresultsfromtheBTMovioDAB-IPpilotinLondon,EBUTechnicalReview,No.306(April2006).Number6:MobileTVBroadcasting(3Italy)MarketpotentialAnalysysResearchLimited2007523ItalysDVBHservicehasgrownsteadilyandgeneratessignificantARPUTheWorldsTopTenNon-voiceServicesforMobileOperatorslInItaly,98%offamilieshaveaTVandpeoplewatchforanaverageoffourhoursperday.3exploitedthiswiththefirstcommercialmobileTVbroadcastserviceinEurope.lAsshowninFigure10,3gained100000DVBHcustomersinthefirstmonthofoperation.lBy23March2007,3had400000customers(5.5%ofitsmobilecustomerbase).lARPUfrommobileTVusersis60%higherthanfromothermobilecustomers,andchurnisnegligible.lMobileTVcustomersspendanaverageofEUR6permonthontheservice.l3reportsthatusersviewaround62minutesofmobileTVperday.l3isforecasting10millionmobileTVcustomersinItaly(foralloperators)by2010.Figure 10: Number of users of 3 Italys DVB-H service, June 2006 to March 2007 Source: Analysys Research, 2007Number6:MobileTVBroadcasting(3Italy)MarketpotentialAnalysysResearchLimited2007533ItalyhasdevelopedanendtoendmobileTVplatformofferinggoodqualityserviceto75%oftheItalianpopulationlStreamingbroadcastTVovera3Gnetworkinvolveshighdataratepointtopointdataconnectionsthatconsumesubstantialnetworkcapacityiftherearealargenumberofusers.Iftheseservicesprovepopular,thenetworkscouldquicklybecomecongested(particularlyduringpopularTVtransmissions),andtherevenuepermegabyteachievedby3Gnetworkscouldcollapse.3(Italy)hasdecidedtoavoidthisproblemfromtheoutset,bymovingstraighttoamobilebroadcasttechnology,withDVBH.lInDecember2005,3acquiredTVbroadcasterCanale7forareportedfeeofEUR3035million(USD3845million).Canale7alreadyownedanationalDVBHlicenceaswellasextensivebroadcastinginfrastructure.Bysecuringtheseassetsrelativelycheaply,3minimisedtheinvestmentrequiredforanationalDVBHnetwork.l3launcheditsservicewithover1000DVBHtransmitters,providingcoverageto75%oftheItalianpopulation(over40millionpeople)in2000townsandcities.SatellitesareusedtodistributebroadcastchannelstotheDVBHbasestations,inordertominimisetransmissioncosts.lTheserviceusesH.264videocoding(upto512kbit/s)andAAC+audiocoding(upto64kbit/s)toachievegoodqualityvideo(320240pixelsat25framespersecond)andaudio.l3hasincorporatedinteractiveservices,usingitsWCDMAuplink,forexampletosupporttelevoting.lInMarch2007,3announcedthatitwasthefirstoperatorintheworldtotesthierarchicalmodulationofDVBHtechnology,whichwillallowittobroadcastfourterrestrialchannelsalongsideitsexistingmobilechannelsinordertoincreaseitsrevenuepotential.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber6:MobileTVBroadcasting(3Italy)ImplementationAnalysysResearchLimited2007543ItalyoffersonlyasmallnumberofmobileTVhandsets,butwillavoidtheneedtochangetheseinthefuturelDVBHrequiresdedicatedhandsets,whicharestillexpensiveandinrelativelyshortsupply.However,byadoptingDVBHfromtheoutset,3avoidstheneedforlargenumbersofcustomerstochangetheirhandsetsinthefuture,whichtheywillneedtodoiftheiroperatorscurrentlydeliverbroadcastTVusing3Gstreaming(asisthecaseformostmobileoperators).lTwoDVBH/3Ghandsetshavebeenavailablefrom3ItalysincethelaunchofmobileTV:theLGU900andSamsungP910.Bothhandsetsoffera2.2(5.6cm)screen(240320pixels,256000colours)thatcanberotatedtolandscapeorientationforTVviewing.TheyeachhaveDVBHreceiversandtheirkeyboardsincludefeaturesnormallyassociatedwithTVremotecontrols,suchaskeysforinteractiveservices.Thehandsetsincludepolyphonicringtones,photo/videocameras,Java,MP3andsupportallstandardcellularservicesonWCDMAandGSM900/1800/1900.lInFebruary2007,3announcedtheforthcominglaunchofadedicatedmobileTV,thePocketTV,inthesecondquarterof2007.ThiswouldbetheworldsfirstDVBHmobileTVwitha4.3screen(480272pixels,16millioncolours).ThePocketTValsoplaysMP3musicfiles,H.264videos,andJPEG,GIFandPNGimages.ItincludesanelectronicprogrammeguideandaPVRfunction,whichcanbeusedtopauseandtimeshiftTVprogrammes.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber6:MobileTVBroadcasting(3Italy)ImplementationAnalysysResearchLimited2007553ItalycombinesmainstreamTVwithpremiumchannelsandmadeformobilecontentl3ItalylauncheditsmobileTVservicewith9TVchannels,andhadextendedthisto12channelsbyMarch2007.Popularelementsofthecontentinclude:wmainstream TV channels from RAI and Mediaset,whichappealtothemassmarketaudienceandtakea29%shareof3sweeklyaudience,withthemedchannelsaccountingfortheother71%wLa3 Liveoperatesfrom07.0023.00eachdayandispresentedbytrainedvolunteersfrom3sowncustomerservicesteams.Contentincludesinformation,previewsanddiscussionofcontenton3sdigitalmobileTV.ThechannelischeaptoproduceandiscustommadeformobileTVusers.La3LiveandLa3Sporttogethertakea22%shareoftheweeklyaudiencewsports coverage,watchedby28%oftheweeklyaudience.3launcheditsserviceatthebeginningofthe2006FIFAWorldCup,havingacquiredtheexclusiverightstoofferlivecoverageofall64matchesofthetournament.Thishelpedtoachieverapidearlytakeup.OtherfootballcontentincludesSerieAandUEFAChampionsLeaguematches.Afterfootball,motorcycleracingisthemostwatchedsportonItalianTV.3hasanexclusiveagreementformobilebroadcastofallMotoGP,250and125races,aswellasworldchampionshiptestingandqualifying.3isalsosponsoringtheHondaGresiniracingteamwnewsachievesapeakaudienceshareof30%eachmorningwpremium channels, including Big Brother and two adult content channelsattractcustomerswhoarepreparedtopayextrafortheircontent.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber6:MobileTVBroadcasting(3Italy)ImplementationAnalysysResearchLimited2007563ItalyhasalsogeneratedusefulrevenuefromadvertisinglAccordingtoMassimoCavazzini(MediaandExternalRelations,3Italy),10%of3ItalysmobileTVrevenueisgeneratedfromadvertising.l3hasattractedmajorcompaniestoadvertiseonitsinhouseLa3SportandLa3Sportchannels,includingLOreal,MasterCard,Mercedes,Nike,PumaandRenault.lDuringthe2006FIFAWorldCup,3soldpackagesof100advertisements,butsomeadvertisersdecidedtobuymore.lAdvertisingconsumesjust4%ofbroadcastingtime(comparedto14%inItaliancommercialTV).Therearenoadvertisingbreaksduringfootballmatchesandotherpopularprogrammes.l3hasanaudiencemeasurementtoolthatenablesittomeasureinrealtimethesizeoftheaudience,theaudienceshareofeachchannel,minutesperviewingsessionofeachuserandtotalminutesofusageofeveryuserinitsnetwork.ThisismuchmoreprecisethantraditionalTVaudiencemeasurements(whicharebasedonaudiencesamples)andenablesmoreaccuratetargetingbyadvertisers.lMobileTVhasdifferentpeaktimesfromtraditionalTV,astheyoccurduringlunchbreaksandcommutingtimes.3hasfoundthat62%ofuserswatchmobileTVoutdoors,25%bothoutdoorsandindoors,and13%indoorsonly.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber6:MobileTVBroadcasting(3Italy)ImplementationAnalysysResearchLimited200757Mostoperatorswillbeunabletoemulate3ItalyinacquiringacheapDVBHlicenceandinfrastructurelFewoperatorswillhavetheopportunitytoacquirealicenceandinfrastructureinthesamewayas3.Thereareseveraloptions,andthebestsolutionwilldependonspectrumavailability,sizeofoperatorandmarketsituation.10wDAB-IPmaybeappropriateonlyinthefewmarketswhereDABhasbeendeployedextensively.Also,channelcapacitymaybelimitedandarestrictedrangeofDABhandsetsmaybeavailablewDMBmayhavelimitedsuccessinEurope,whereDVBHismorelikelytobepopularwDVB-HisattractingthemostinterestfrommobileoperatorsinWesternEuropeandiswellplacedtoachieveeconomiesofscaleininfrastructureandhandsets.However,itrequiresmajorinvestmentandoperatorsneedtoacquireDVBHspectrumatlowcostandlowfrequencytominimiseimplementationcostswDVB-SHisasatellitemobileTVbroadcastingsolutionbeingpromotedbyAlcatel,butdoesnotcurrentlyhavethesameprofileasitsterrestrialcounterpart,DVBHwMediaFLOissimilartoDVBH,butmaybelesspopularinEurope,whereQualcommdoesnothavealargecustomerbase.MediaFLOmaybemoresuccessfulintheUSAandintheAsiaPacificregion,whereCDMA2000isdeployedwtdTVcouldbeaverycosteffectiveupgradeof3Gnetworks,whichavoidstheneedtoinvestinacompletelynewbroadcastingtechnology.3UK,Vodafone,OrangeandTelefnicahavetrialledtdTV.TheWorldsTopTenNon-voiceServicesforMobileOperators10Formoredetailsontheopportunitiesforandcharacteristicsofmobilebroadcasttechnologies,seeHeath,M.and Brydon,A.withZadvorny,A.,Evaluating the Options for Mobile TV and Radio Broadcasting in Western Europe ,AnalysysResearch(Cambridge,2006).Number6:MobileTVBroadcasting(3Italy)SuitabilityforreproductionAnalysysResearchLimited200758Number 7:EZChakuutaFull(KDDI,Japan)TheWorldsTopTenNon-voiceServicesforMobileOperatorsMobilemusicdownloadinghasdonewellinJapanInJapan,mobilephonesaremuchmorepopularthanMP3players(includingiPods)asportablemusicplayersIn2006,therewere344.1millionmobilemusicdownloadsinJapanMobilephonesgeneratedover90%oftheJPY53.4billion(USD457million)revenuefromdigitalmusicdownloadsinJapanin2006FirsttomarketwithEZChaku-uta(partialmusictracks)andEZChaku-utaFull(fullmusictracks)CDMA2000EV-DOenablesrapiddownloadsand48%ofallKDDIsmobilecustomershaveEV-DOhandsetswithEZChaku-utaFullcapability100+Websiteswith400000+songsAdditionalservicesareusedtodrivedownloadsFlat-ratedatatariffsavoidsuppressingusage,butcanencouragepricecompetition3UKdemonstratesbigopportunitiesformusicdownloadsinothermarketswithover1millionmusicdownloadspermonth(secondonlytoiTunesintheUKdigitaldownloadmarket)ThereisstrongercompetitionfromMP3players(e.g.iPods)outsideJapanBigmultinationaloperatorscanspreadthecostofsystemsandcontentovermanycustomersinmultiplemarkets.SmalloperatorsneedtoworktogetherMarket potential62%Implementation81%Suitability for reproduction60%Asuccessfulmusicdownloadservice,withexcellentimplementationbyKDDIauPotentialelsewheremaybelimitedbyportablemusicplayers,suchastheiPod,whichalreadyhavealargecustomerbase68%Number7:EZChaku-utaFull(KDDI,Japan)ServiceevaluationAnalysysResearchLimited200759EZChakuutaFullwasthefirstfulltrackdownloadserviceinJapan,wheremobilephonesdominatethemusicdownloadmarketTheWorldsTopTenNon-voiceServicesforMobileOperatorslKDDIauhasledmobilemusicdownloadservicesinJapan:wEZChakuuta(theforerunnerofEZChakuutaFull)waslaunchedon5December2002,asthefirstserviceintheworldenablingcustomerstodownloadpartofahighqualitymusictrackasaringtonewEZChakuutaFullwaslaunchedon19November2004,asthefirstserviceintheworldtoallowcustomerstodownloadacompletehighqualitymusictrack,exploitingthehighdownloadspeedofKDDIsCDMA2000EVDOnetworkwNTTDoCoMoandVodafoneJapan(nowSoftbank)subsequentlylaunchedtheirownmusicservices,basedonWCDMA.lEZChakuutaFullallowsuserstodownloadfulllengthsongsfromawiderangeofmusicsitestocompatiblehandsetsforatypicalpriceofJPY300(USD2.57)pertrackplusachargeforthedataconsumedasthetrackisdownloadedtothehandset(attheprevailingdatatariff).lInJapan,mobilephoneshavebecomethedominantdevicesforpersonalmusicdownloadandplayback.PortableMP3players,suchastheiPod,haveonlyaminorrole.AccordingtotheRIAJ:wtherewere344.1millionmobilemusicdownloadsinJapanin2006(up33%from2005),comparedwithjust23millionPCdownloadswthetotalvalueofelectronicmusicdownloadsinJapanin2006totalledJPY53.4billion(USD457million),andover90%ofthiswasgeneratedbymobilephonedownloads.Number7:EZChaku-utaFull(KDDI,Japan)ServicedescriptionAnalysysResearchLimited200760EZChakuutaFullbenefitsfrom(andhashelpedtodrive)takeupofKDDIshighperformanceCDMA2000EVDOnetworkTheWorldsTopTenNon-voiceServicesforMobileOperatorslAkeyelementofasuccessfulmusicserviceistheabilityforcustomerstodownloadmusictracksquicklyandeasily.lInNovember2003,KDDIwasoneofthefirstmobileoperatorstolaunchCDMA2000EVDOandtoachievedownlinkdataratesofupto2.4Mbit/s.lAt2.4Mbit/s,userscandownloadatypicalthreeminuteAACmusictrackinfiveseconds.lBytheendof2006,12.72millioncustomerssubscribedtotheKDDIauCDMA2000EVDOservice,asshowninFigure13,correspondingto48.5%ofallitsmobilecustomers.lAttheendof2006,KDDIlaunchedCDMA2000EVDORevisionAtechnology,increasingitsmaximumdownloadspeedto3.1Mbit/sandreducingtheminimumtrackdownloadtimetolessthanfourseconds.Figure 13: Growth in KDDI au CDMA2000 EV-DO subscribers, September 2003 to December 2006 Source: Analysys Research, 2007Number7:EZChaku-utaFull(KDDI,Japan)LaunchofEZChaku-utaFull02468101214Sep-03Jan-04May-04Sep-04Jan-05May-05Sep-05Jan-06May-06Sep-06Subscribers(million)ImplementationAnalysysResearchLimited200761AllnewCDMA2000EVDOhandsetssupportEZChakuutaFullandoffersophisticatedcapabilitiesTheWorldsTopTenNon-voiceServicesforMobileOperatorslAllCDMA2000EVDOhandsetsaredesignedspecificallytosupportmusicbrowsingandtoenablehighqualitymusicplayback.AsshowninTable12,typicalfeaturesinclude:wstereospeakerswlargeinternalmemoryformusicstoragewexternalmemoryoptionsforbackuppurposeswlargescreensforbrowsingmusicWebsites.lConsumersfindmobilephoneseasierandbetterdevicesthanstandaloneportablemusicplayersformobilemusic,and,dependingonthehandset,canbenefitfrommanyotherfeatures,suchasPDA,camera,videocamera,Webbrowser,mediaplayer,radio,TVandGPS.lThelackofhandsetsubsidiesmakesadvancedmobilephonesexpensiveitems(comparabletoleadingMP3players),whichencouragesuserstoextractasmuchvaluefromthemaspossible.HandsetSelected capabilitiesSanyo W51SAl1GBmemorystoresupto650musictracks(orfivehoursofvideo)lExternalmemoryforback-upofmusic(andother)fileslStereoearphonesWalkman W42Sl1GBmusicstorage(inadditionto38MBforotherstorage)l30hourscontinuousmusicplaybacklDisplaysvisualimagesandinformationrelatedtosongsbeingplayedlRemotecontrolsimplifiesmusicplaybackl3Dsurround-soundspeakersandhigh-qualitystereoheadphoneslGraphicequaliserfunctionsTable 12: Selected music capabilities of typical CDMA2000 EV-DO handsets Source: Analysys Research, 2007Number7:EZChaku-utaFull(KDDI,Japan)ImplementationAnalysysResearchLimited200762EZChakuutabenefitsfromawiderangeofcontentandavarietyofservicesthatstimulatedownloadsandencouragemobilephonesasmusicplayersTheWorldsTopTenNon-voiceServicesforMobileOperatorslThenumberofWebsitesandmusictracksavailabletoEZChakuutausershasgrownstronglysinceitsinception,asshowninFigure14.lTheListenMobile(LISMO)servicewasintroducedinJanuary2006asameansofachievinggreatermusicintegrationandinteractionbetweenmobilephonesandPCs:wLISMOphonesenableuserstoexchangeplaylistsandlistentomusictogetherwLISMOenablesphonesandPCstoexchangemusicfiles,forexamplefromCDtophoneorphonetoPC(asabackup)lNowonairInformationallowsuserstofindanddownloadmusicthatisbeingplayedonFMradiostationsreceivedontheirmobilephonesviatheEZFMapplication.lTheKDDIaumusicportal,EZMusic!,supportssearchfunctionsdesignedtoworkinconjunctionwithEZChakuutaFull.Figure 14: Number of EZ Chaku-uta Full Web sites and music tracks Source: Analysys Research, 2007Number7:EZChaku-utaFull(KDDI,Japan)0100200300400Nov-04May-05Nov-05May-06Nov-06SitesMusictracksImplementationAnalysysResearchLimited200763TherearegoodopportunitiestoreproducethesuccessofEZChakuutainothermarkets,buttherewillbecompetitionTheWorldsTopTenNon-voiceServicesforMobileOperatorsl3UKprovesthatmobilemusicdownloadscanalsobesuccessfulinEurope,usingWCDMA.ByMarch2007,ithadachieved:w500000customersregularlydownloadingmusic(13%ofthecustomerbase)wover1millionmusictrackdownloadspermonth(1.5millioninDecember2006)wsecondplace(toiTunes)intheUKdigitaldownloadmarketw75%shareofthemobilemusicdownloadmarket(withjustan8%shareofmobilecustomersintheUK)w10.5%shareoftheentireUKsinglesmarket(includingbothdownloadsandCDs).lSKTelecomsMelOnisSouthKoreasbiggestpaidmusicsite,intermsofsubscribernumbersandrevenue,withaservicebasedonCDMA2000EVDO.Theservice:wattracted7.3millionsubscribersbetweenitslaunchinNovember2004andDecember2006wachievedrevenueofKRW70billion(USD72.7million)in2006.lOperatorsinothermarketswillfacestiffercompetitionfromfixednetworkmusicdownloadservices.MP3players,suchastheiPod,arealreadypopularinmanydevelopedmarketsoutsideJapan.lTheremaybeanopportunitytoclaimashareofthemusicdownloadmarketindevelopingcountries,whereiPodsandotherMP3playersarenotwidelyavailableandcomputersarelessaffordableformostpeople.However,thehighcostofhandsetsmaylimittheopportunitytoasmallnumberofusers.Number7:EZChaku-utaFull(KDDI,Japan)SuitabilityforreproductionAnalysysResearchLimited200764Number 8:CyworldMobile(SKTelecom,SouthKorea)TheWorldsTopTenNon-voiceServicesforMobileOperatorsTheCyworldservicehas20millionfixednetworksubscribersinSouthKorea,representingabout40%ofthepopulation.96%ofpeopleaged2029usetheserviceregularlyCyworldMobileisamobileextensionoftheCyworldservice.Ithadover1.5millionregisteredusersbyJune2006andover700000activeuserspermonthinFebruary2007CyworldMobilegeneratedUSD56millioninrevenueforSKTelecomin2006CyworldMobileisanexcellentexampleoffixedmobileconvergence,withSKTelecombuildingontheexistingsuccessofCyworldTheservicehasalowcostofentryforcustomers,withadditionalrevenueopportunitiesforSKTelecomfromvalue-addedelementsanddatachargesHigh3GpenetrationhasenabledSKTelecomtoofferanappealingmultimediauserexperienceGlobalpartnershipopportunitiesforoperatorswithsocial-networkingsites,includingCyworldandMySpaceMySpacewasthemostpopularWebsiteintheUSAinFebruary2007,accountingfor5.9%ofallWeb-sitevisitsMobileoperatorsneedtoconsiderthemostappropriaterevenuemodels,andtheroleofadvertisingMobileoperatorsshouldadapttheirsitestosuitthenationalcharacteristicsofusersMarket potential60%Implementation73%Suitability for reproduction64%Successfulmobileservice,buildingontheveryhighadoptionofthefixedCyworldcommunityportalinSouthKorea66%Number8:CyworldMobile(SKTelecom,SouthKorea)ServiceevaluationAnalysysResearchLimited200765lCyworld,ownedbySKCommunications,isasophisticatedandpopularWebbasedcommunityportal,whichwaslaunchedinSouthKoreain1999.lCyworldofferspersonalspacesforitsusersandtheabilitytoconnecttootherusers.FreereadymadehomepagesareavailabletoCyworldusers,whichcombinethefeaturesofapersonalblogandaninteractivemultimediaWebsite.Usershaveavirtualcounterpartacharacterrepresentingtheusertohis/herfriendsandcanuploadpicturesandvideostotheirpersonalspaces.lThereislittleadvertising.SKCommunicationsgeneratesthevastmajorityofitsrevenuefromthecustomisationendusersmaketotheirCyworldenvironments,suchasthecreationofvirtualcounterparts,graphicstodecorateorfurnishtheenvironments,andbackgroundmusic.Enduserspayforthesefeatureswithvirtualcurrency,knownasacorns,whichcanbepurchasedwithrealmoneybyindividualsforthemselvesorasgiftsforothers.TypicalgoodsinCyworldcostlessthanUSD1each.lSKTelecom,thelargestmobileoperatorinSouthKorea(witha50.4%marketshareinFebruary2007),isaffiliatedtoSKCommunications.SKTelecomlauncheditsMobileCyworldserviceinSouthKoreainMarch2004,providingCyworlduserswithaccesstotheservicefrommobilephones.lWhileCyworldgeneratesrevenueforSKCommunicationsfromthepurchaseofacorns,themobileservicegeneratesrevenueforSKTelecomfromthedatachargesthatusersincur.CyworldMobilebuildsonahighlysuccessfulfixedInternetportalTheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber8:CyworldMobile(SKTelecom,SouthKorea)ServicedescriptionAnalysysResearchLimited200766CyworlddemonstratesthemassivepotentialoffixedandmobileonlinecommunityportalsTheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber8:CyworldMobile(SKTelecom,SouthKorea)lTheCyworldservicehasover20millionfixednetworksubscribers,representingabout40%oftheSouthKoreanpopulation.Ithasseenwidespreadadoptionamongyoungpeople,with96%ofpeopleaged2029usingtheserviceregularly.Cyworldhassoldover160millionmusictracks,whichissecondonlytoiTunes.Usersuploadover100000newvideosperday.lTotalrevenueforCyworld(takingintoaccountrevenuesforbothSKCommunicationsandSKTelecom)wasestimatedataboutUSD120millionfor2006.lWithamobilemarketshareofaround50%inSouthKorea,SKTelecomisinastrongpositiontocapturecustomersforamobileextensiontoCyworld.InJune2006,after26monthsofoperation,thenumberofMobileCyworldusershadgrownto1.5million.InFebruary2007,SKTelecomclaimedthat700000peopleusedtheserviceduringthemonth.lCyworldMobileisrecognisedbySKTelecomasoneofitsmostimportantdatarevenuegenerators,helpingtoincreasetheproportionofrevenuefromwirelessdataservicesto29.1%inthequarterendedDecember2006.RevenueforCyworldMobilein2006wasKRW54billion(USD56million).ThiswasofthesameorderofmagnitudeastherevenuefromitsMelOnservice,whichistheleadingmusicdownloadsiteinSouthKoreaintermsofbothrevenueandsubscriberbase.Revenuein2006forMelOnwasKRW70billion(USD73million).MarketpotentialAnalysysResearchLimited200767CyworldisanexcellentexampleoffixedmobileconvergenceTheWorldsTopTenNon-voiceServicesforMobileOperatorslRatherthanattemptingtocreateamobilespecificservice,SKTelecomissuccessfullybuildinguponthesuccessandappealoftheexistingCyworldservice.Thisisanexcellentexampleoffixedmobileconvergence,allowinguserstochoosethemostappropriateformofaccess,dependingupontheirlocationandwhattheywanttodo.Forexample,traditionalPCaccesswillbettersuitthosewishingtowriteanextensiveblogentry,whilemobileuserscantakephotosanduploadthemusingamobilecameraphone.lCyworldhasaverylowcostofentry,withnomonthlysubscriptionfees.However,ascustomersgetmoreinvolvedwiththeservice,theyarelikelytopayforcustomisations.Furthermore,uploadingusergeneratedcontentusingamobilephonegeneratessignificantdatatraffic(andhencerevenueforthemobileoperator).lTheearlyavailabilityofSKTelecomsCDMA2000EVDOnetwork(oneoftheveryfirst3Gnetworksintheworld,launchedinJanuary2002),togetherwithwidespreadavailabilityofadvancedhandsets,hasenabledSKTelecomtoprovideuserswithanappealingmultimediaexperienceforCyworldMobile.ByDecember2006,SKTelecomhad10.04millionEVDOcustomers,representinga3Gpenetrationof49%.Number8:CyworldMobile(SKTelecom,SouthKorea)ImplementationAnalysysResearchLimited200768ThegrowingsuccessofMySpaceandothersocialnetworkingsiteshighlightstheglobalopportunitiesTheWorldsTopTenNon-voiceServicesforMobileOperatorslMySpaceisaWebbasedsocialnetworkingcommunitythatwasformedin2004andhasseendramaticgrowthinusers.MySpacehasexpandedgloballyandiscurrentlyavailableinAustralia,Canada,France,Germany,Ireland,Italy,Japan,Mexico,NewZealand,Spain,theUKandtheUSA.ItwasacquiredbyNewsCorporationaspartofanacquisitionofIntermixMediaforUSD580million.lByMarch2007,MySpaceclaimedtohave136millionusersglobally,with11.5millionusersinEurope.Withanestimated100millionaccountsintheUSAasofMarch2007,servicepenetrationisasubstantial33%ofthepopulation,althoughthisfallsshortofthepenetrationofCyworldinSouthKorea.lAccordingtoonlineintelligenceservice,hitwise,socialnetworkingsitesaccountedfor6.5%ofallInternetvisitsintheUSAinFebruary2007.MySpace.comwasthemostpopularWebsiteintheUSA,accountingfor5.9%ofallWebsitevisits,andaheadofGoogle.com(witha4.5%share).TraffictoMySpacewasupby107%yearonyear.lAccordingtoonlinemarketresearchcompany,eMarketer,USonlinesocialnetworkadvertisingspendingwillreachUSD865millionin2007,withUSD525millionforMySpacealone.Number8:CyworldMobile(SKTelecom,SouthKorea)SuitabilityforreproductionAnalysysResearchLimited200769ThereareopportunitiesforjointventureswithCyworld,MySpaceandotheremergingcommunityportalsTheWorldsTopTenNon-voiceServicesforMobileOperatorslWiththeglobalexpansionofCyworld,asshowninTable13,andMySpace,thereareopportunitiesformobileoperatorstopartnerwiththeseleadingsocialnetworksites,particularlyiftheyareintegrated(fixedandmobile)operators.DeutscheTelekomhaspartneredwithCyworldinGermany,anditislikelythatTMobilewillbeabletobuildonthisrelationship.lMobileoperatorsalsoneedtoconsiderthealternativeapproachofpartneringwithsmall,emergingsocialnetworksites,ordevelopingtheirown.lSuccessfulsocialnetworksitesshouldreflectnationalcharacteristics.Forexample,CyworldmayneedtobealteredsignificantlytoappealtoUSandEuropeanconsumers.lMobileoperatorsneedtoconsiderthemostappropriaterevenuemodelsfortheirrespectivemarkets.Forexample,advertisingrevenuescouldbelucrativeinsomecases.OperationAnnouncementLaunchCyworld JapanMar2005Nov2005Cyworld ChinaApr2005Jun2005Cyworld TaiwanSep2005Aug2006Cyworld USAOct2005Aug2006Cyworld GermanyJun2006Cyworld VietnamAug2006Table 13: Global expansion of Cyworld Source: Analysys Research, 2007Number8:CyworldMobile(SKTelecom,SouthKorea)SuitabilityforreproductionAnalysysResearchLimited200770Number 9:DCMXmobilepayment(NTTDoCoMo,Japan)TheWorldsTopTenNon-voiceServicesforMobileOperatorsWorldwidecredit-cardspendingisveryhighandaccelerating.TotalglobalpurchaseswithVisa-brandcreditcardsalonewereUSD4.3trillionin2006LaunchedinApril2006,DCMXhadattracted1.4millionsubscribersbyDecember2006InJapan,thepotentialforthisserviceisveryhigh.ByMarch2007,therewerealmost20millionmobilehandsetsincirculationwiththenecessaryFeliCanear-fieldwirelesstechnology(similartoNFC)NTTDoCoMoinvestedinacredit-cardcompanytosupportitsservicesNTTDoCoMohasensuredthatalargenumberofmobilehandsetsandpaymentterminalsareequippedwithFeliCaDCMXsecurityisbetterthanwithcreditcards.DCMXincorporatesfingerprintauthenticationandfacereadersMobileuserscanmakemicro-paymentswithoutaPINorsignatureRequiressubstantialinvestment(retailterminals,credit-cardcompany,etc.)andrevenuewillbeslowtogrow,somaybebestsuitedtolargeoperatorsStrongcompetitionfromcreditcardsinmostdevelopedmarketsRegulationoffinancialservicesmaybeabarrierDiverseapproachesworldwideincreasetheriskTheremaybesomeresistancetobiometricauthenticationMarket potential59%Implementation77%Suitability for reproduction60%LaunchedinApril2006,DCMXdisplacestheneedforaconventionalcreditcard,andofferssuperiorconvenienceformicro-payments,withahighlevelofsecurity65%Number9:DCMXmobilepayment(NTTDoCoMo,Japan)ServiceevaluationAnalysysResearchLimited200771lNTTDoCoMolauncheditsmobilepaymentservice,DCMX,inApril2006.ThisenablesepaymentwithmobilephonesusingashortrangewirelesstechnologycalledFeliCa(similartoNFC).lCustomershaveachoiceoftwoserviceoptions:DCMXminiisaimedatlowcostpurchases,whileDCMXofferssignificantlyhighercreditlimitsandtakestheplaceofacreditcard.lMobileuserscanmakepaymentsusingtheirmobilephonesatretailoutlets,includingfastfoodandconveniencestores,vendingmachines,supermarkets,largeconsumerelectronicsstores,departmentstores,restaurantsandhotels.lTopurchasegoodsandservices,mobileuserssimplyscantheirphonesatadedicatedpaymentterminal.NosignatureorPINisrequiredforsmallpurchases.Forlargerpurchases,apasswordisrequiredtocompletethetransaction.lWithDCMXmini,mobileuserscansignupfortheserviceusingtheirownmobilephone.TheythenhaveinstantaccesstomonthlycreditofJPY10000(USD86).Thereisnomonthlyfeefortheservice.ChargesforpurchasesappearontheusersmonthlyNTTDoCoMophonebill.lDCMXoffersmonthlycreditlimitsfromJPY200000(USD1711).UsersareissuedwithaconventionalVisaorMasterCardplasticcardforpurchaseswhentravellingabroad.UnlikeDCMXmini,purchasesmadewithDCMXearnDoCoMopoints,whichcanberedeemedfordiscountsonnewDoCoMomobilephonesorotherproductsandservices.NTTDoCoMooffersavarietyofmobilepaymentoptionsTheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber9:DCMXmobilepayment(NTTDoCoMo,Japan)ServicedescriptionAnalysysResearchLimited200772Mobilepaymentshavepotential,giventhemagnitudeofcreditcardpurchasesandtherapidadoptionoftheDCMXserviceTheWorldsTopTenNon-voiceServicesforMobileOperatorslWorldwidecreditcardspendingisveryhighandaccelerating.TotalglobalpurchaseswithVisabrandcreditcardsalonewereUSD4.3trillionin2006.lGiventhesizeofthecreditcardmarket,thereissubstantiallongtermrevenuepotentialfrommobilepaymentservices.lCreditcardpurchasesinJapantotalledJPY32trillion(USD274billion)in2006,andthisrepresentsjust9%ofconsumerspendingaccordingtoNTTDoCoMo.lAtthelaunchofDCMX,NTTDoCoMostatedthatitwastargeting10millionDCMXsubscribers.TheDCMXservicegrewstronglyafteritslaunchinApril2006,asshowninFigure16.Therewerealmost1.4millionusersbyDecember2006.Figure 16: Subscriber take-up of NTT DoCoMos DCMX service, April 2006 to December 2006 Source: Analysys Research, 2007Number9:DCMXmobilepayment(NTTDoCoMo,Japan)MarketpotentialAnalysysResearchLimited200773NTTDoCoMohasinvestedinacreditcardcompanyandseededalargenumberofFeliCaequippedhandsetsandpaymentterminalsintothemarketTheWorldsTopTenNon-voiceServicesforMobileOperatorslInApril2005,NTTDoCoMoacquired33%ofSumitomoMitsuiCards,forJPY98billion(USD838million),tosupportitscreditservices.MitsuiCardswasthesecondlargestcreditcardcompanyinJapan,with13millioncustomers.lWidespreadavailabilityofsuitablyequippedmobilephonesandpaymentterminalsisessentialforasuccessfulmobilepaymentservice.NTTDoCoMohasseededitscustomerbasewithcompatibleFeliCaenabledhandsets.AsshowninFigure17,therehasbeensubstantialgrowthinthenumberofmobilesubscriberswhocouldeasilysubscribetotheDCMXservice(withouthavingtochangetheirmobilehandset).lNTTDoCoMohasworkedwithSumitomoMitsuiCardstoensurethatahighproportionofretaillocationshaveappropriatepaymentterminals.Itaimedtohave150000paymentterminalsinplacebyMarch2007,withplanstoincreasethisnumberto350000.Figure 17: NTT DoCoMos user base with FeliCa-enabled mobile handsets, September 2004 to March 2007 Source: Analysys Research, 2007Number9:DCMXmobilepayment(NTTDoCoMo,Japan)ImplementationAnalysysResearchLimited200774Sophisticatedsecuritymeasures,suchasfingerprintauthentication,makeDCMXmoresecurethanconventionalcreditcardslSecurity(andperceptionofsecurity)isfundamentaltothesuccessofamobilepaymentsolution.NTTDoCoMoclaimsthatthelevelofsecurityofferedbyitsDCMXserviceismuchhigherthanconventionalcreditcards.Securitymeasuresinclude:wIC card lock:apasswordlocksaccesstotheDCMXfeature,toavoidmisuseofstolenormisplacedmobilephoneswiD appli password:apasswordisrequiredeachtimetheiD(mobilepayment)applicationisusedwbiometric (fingerprint) authentication:mobileusersslidetheirfingertipsoverscannersontheirphonestounlockthem.SeveralmobilephonesavailablefromNTTDoCoMo(forexample,theF902i,F901iS,F901iCandF702iD)supportthis.NTTDoCoMoplanstoincreasethenumberofmobilehandsetsthatincorporatebiometricauthenticationwface reader:themobilephonescameraverifiestheusersfaceandeyeblinkpattern.Severalmobilephones(forexample,theSH901i,P902iandP901iS)supportthisfunctionalitywtheft insurance: incasethemobilephoneisstolenwOmakase Lock:forstolenormisplacedphones.MobileuserscancallNTTDoCoMotogetthemobilephonelockedtopreventitbeingusedbyathirdpartywRemote Lock:mobileuserscancalltheirownmobilephonestolockthem.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber9:DCMXmobilepayment(NTTDoCoMo,Japan)ImplementationAnalysysResearchLimited200775DCMXcanbeusedtomakeeithersmallorlargepaymentsandoffersotherbenefitslDCMXallowsuserstomakesmallpaymentswithoutneedingtoprovideaPINorasignature,andyethasallthebenefitsofaconventionalcreditcardwithaddedsecurity.lDCMXprovidesmobileuserswithameansofcontrollingtheirexpenditure,sincetheycanusetheirmobilehandsetatanytimetocheckhowmuchtheyhavespent.lDCMXhasaninnovativerewardscheme,allowingcustomerstocollectpointsthatcanbeexchangedfordiscountsonnewmobilephones.ForNTTDoCoMo,thepointsschememaybeapowerfulwaytoreducechurn,aswellastomaximiserevenuebyencouragingmobileuserstotakeupthelatestservicesontheirupgradedhandsets.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber9:DCMXmobilepayment(NTTDoCoMo,Japan)ImplementationAnalysysResearchLimited200776MobilepaymentserviceswillrequiresubstantialinvestmentandarefarfromquickwinslFormobilepaymentservicestosucceed,mobileoperatorsneedtoensurethatalargeproportionofmobileusershaveNFCenabledmobilehandsets.Furthermore,appropriateterminalsneedtobeimplementedinalargenumberofretaillocations,sothatideallyterminalsareprovidedinallretaillocationswhereconventionalcreditcardsareaccepted,plusmanylocationswheretheyarenot(e.g.vendingmachines),formicropayment.lMobileoperatorsmustrecognisethatmanymobileusersareperfectlyhappywiththeirexistingcreditcardsandthattherewillbeintensecompetitionfromcreditcardcompaniesinmanymarkets.Hence,mobileoperatorsneedtodifferentiatemobilepaymentservicesfromexistingcreditcards,forexamplebydevelopingstrongerbrands,superiorconvenience,improvedsecurity,agreaternumberofretaillocations,orcompellingloyaltyorpointsschemes.lGiventhelargepotentialinvestmentrequired,largeoperators(withlargefinancialresourcesandhighmarketshare)mayfinditeasierthansmalleroperatorstooffertheseservices.Smalloperatorswillneedtoworkwithotheroperatorsand/orfinancialinstitutionstodevelopmobilepaymentservices.lTherearecurrentlymultipleapproachestomobilepaymentaroundtheworld,whichincreasestherisksformobileoperators.Forexample,inFebruary2007,theGSMAssociationannounceditsPayBuyMobileinitiative,whichseekstodefineacommonglobalexperienceformobilephonepayments.Ideally,mobileoperatorsneedtoadoptasolutionthatislikelytoachievewidespreadacceptancebyconsumers,forexampleifitisbackedbyagloballyrecognisedbrandsuchasVisaorMasterCard.lMobileoperatorsmustensurethatcustomersareconfidentinthesecurityofmobilepaymentsolutionsandarepreparedtoacceptthenecessarysecuritymeasures,suchasbiometricauthentication.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber9:DCMXmobilepayment(NTTDoCoMo,Japan)SuitabilityforreproductionAnalysysResearchLimited200777Number 10:MiniCallBubbleTALKvoiceSMS(VodafoneEgypt)TheWorldsTopTenNon-voiceServicesforMobileOperatorsMobiletextmessaginghasprovedtobethemostsuccessfulnon-voicemobileservice,andvoiceSMSprovidesausefuladditiontoamessagingportfolioMorethan15%ofVodafoneEgyptcustomerstriedtheMiniCallserviceduringthetwomonthsafterlaunchMiniCallhasbeenstronglymarketedanditspricingisattractivetousers(cheaperthanconventionalvoicecalls,andthesameasSMS)Theserviceiseasytouse(similartoSMS)ItisanattractivealternativetoSMS,whichmayappealtothesignificantproportionofmobileuserswhodonotcurrentlyuseSMSCanbeofferedonanynetworkorhandset.Sophisticatedhandsetsand/or3GnetworksarenotrequiredParticularlysuitedtodevelopingcountriesMobileusersdonotneedtohaveaspecialhandsetthatsupportstheirnativelanguageSuitableformobileuserswhocannotreadorwrite,orarevisuallyimpairedMarket potential52%Implementation73%Suitability for reproduction61%62%ProvidesacomplementarymessagingservicetoSMS,allowingmobileuserstosendvoicemessagessimply,ratherthantextmessagesWellsuitedtodevelopingmarkets;notdependentonsophisticatedmobilehandsetsor3GnetworksNumber10:MiniCallBubbleTALKvoiceSMS(VodafoneEgypt)ServiceevaluationAnalysysResearchLimited200778lVodafoneEgyptlauncheditsMiniCallserviceinDecember2006.TheserviceisprovidedbytechnologycompanyBubbleMotion,whichwasfoundedintheUSAin2003.BubbleMotionreferstothevoiceSMSserviceasBubbleTALK.lMobileuserscanrecordandsendshortvoicemessagestotheirfriends,familiesorenterprisecontacts,inaverysimilarmannertosendingtextmessages.lVodafoneEgyptchargesEGP0.30(USD0.05)tosendaMiniCallmessage,thesameasforastandardSMSmessage.UsersarealsochargedGBP0.30(USD0.05)foreachmessagetheyreplytoorforward,andforeacholdmessagetheylistento.lTosendaMiniCallmessage,amobileuserpressesthe*key,dialsthemobilenumbertheywishtosendthevoicemessageto,recordsthemessageandhangsup.Messagesarelimitedto30secondsinduration.lApersonwhoreceivesaMiniCallmessagewillgetanSMSmessagefromthesenderindicatingthetimethemessagewassentandhowtoretrieveit.TheSMSmessagestates,“TohearyournewMiniCallmessage,dial0forFREEwithinEgypt.”Thereceivingusercanreplyto,orforward,theMiniCallmessageafterhearingitbypressing1toreplyor2toforward.VodafonesMiniCallserviceallowsvoicemessagestobesentlikeSMSmessagesTheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber10:MiniCallBubbleTALKvoiceSMS(VodafoneEgypt)ServicedescriptionAnalysysResearchLimited200779WhileitisearlydaysforvoiceSMSservices,theinitialsignsareencouraginglItisstillearlydaysforvoiceSMSservices,withdeploymentinrelativelyfewcountries.Nonetheless,BubbleMotionclaimsthatBubbleTALKisalreadyavailabletomorethan100millionmobileusers,throughsixoperatorsintheAsiaPacificregion.Theseinclude:Airtel(India),CSL(HongKong),DiGi(Malaysia),Indosat(Indonesia),M1(Singapore)andNewWorldMobility(HongKong).lBubbleMotionstatesthatover1.5millionBubbleTALKmessageshavebeenexchangedacrossthemobileoperatorsthathaveimplementedtheservice.Thenumberofmessagessentgrewby66%betweenthethirdquarterof2006andthefourthquarterof2006.lDiGihasgainedastrongreputationforserviceinnovationinAsia,gaininganawardfromtheWallStreetJournalforbeing“theMalaysiancompanymostadmiredforinnovation”. DiGihasreportedthat36%ofits3.7millioncustomershaveusedBubbleTALKsincetheservicewaslaunchedinJanuary2005.lVodafoneEgypthasseenrapidtakeupofitsMiniCallservice.AccordingtoAmiraAlKoshairy(VoiceandMessagingProductsManager,VodafoneEgypt),“Thankstothestrongcommunicationplanusedtolaunchtheservice,morethan15%ofourcustomerbasehastriedtheserviceduringthetwomonthsafterlaunch.Ahealthypercentageofthesecustomerscontinuedusingtheserviceafterthelaunchcampaign.ThegoodnewsisthatwehaventseenanynegativeimpactonSMSrevenues.Roughlyspeaking,ARPUofthoseusingtheservicehasincreasedbyabout1.5%.”VodafoneEgypthasintensivelypromoteditsMiniCallservice,claimingtheserviceispractical,fast,easyandallowsmobileuserstoexpressthemselves.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber10:MiniCallBubbleTALKvoiceSMS(VodafoneEgypt)MarketpotentialAnalysysResearchLimited200780MiniCalliseasytouse,affordableandcomplementarytoothermessagingserviceslTheserviceiseasytouse,requiringonlyafewkeystrokestosendamessage.lThepricingisaffordable,beingpricedatthesamelevelasSMSmessages(USD0.05permessage).AswithSMS,pricingisperceivedtobemoreaffordablethanmakingvoicecalls.lVoicemessagesmayberegardedasmorevaluabletosenderandrecipientthantraditionaltextmessages.ComparedtoSMSmessaging,MiniCallvoicemessagescanbemorepersonalandimpartmoreemotion.lMiniCallprovidesmobileuserswithanattractivealternativetovoicetelephonyandSMS.AccordingtoSunilCoushik(CofounderandVPofBusinessDevelopment,BubbleMotion),“ThereisstillasignificantpercentageofpeoplewhodontuseSMS,andwithMiniCalltheyhaveanewmeanstocommunicate.Also,traditionalvoicemessagingisreallyaccidentalmessaging,asyoudontknowwhetheryouaregoingtospeaktothepersonyouhavecalled.”lAswithSMS,theMiniCallservicecanbeusedwithallexistingmobilehandsets.lMiniCallhasbeenimplementedatrelativelylowcostbyVodafone.ByusingtheInternettotransportcontentbetweennetworksandoperators,itisabletoavoidinterconnectcharges.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber10:MiniCallBubbleTALKvoiceSMS(VodafoneEgypt)ImplementationAnalysysResearchLimited200781TherearesignificantopportunitiesforvoiceSMSservices,particularlyindevelopingmarketslManyofthetoptenservicesrequiresophisticated(andexpensive)mobilehandsetsandterminals,advancednetworks,suchasHSDPA,andlargeupfrontinvestment.Thismakesmanyofthemmoresuitedtolargeoperatorswithsubstantialfinancialresources,andlimitstheirpotentialinlessdevelopedmarkets.lVoiceSMSservicesarenottiedtoparticularmobiledevicesandnetworks,andthereforecanbesupportedwith2Gnetworksandmainstreammobilehandsets,aswithSMSservices.lComparedwithSMStypeandreadservices,talkandlistenvoiceSMSservicesaremoresuitableforthosewhocannotreadorwrite,andthosewhoarevisuallyimpaired.lLanguagesthatdonotusetheLatinalphabetdonotneedtohavespecialhandsetsinordertosupportalternativecharacters.lMobileoperators(particularlyglobaloperatorswithstronginfluenceovertheirsuppliers)shouldencouragehandsetvendorstoadapttheirmobilehandsetsinordertofurtherimprovetheuserexperienceofvoiceSMSservices,forexamplebyprovidingshortcutkeysanddedicatedmenus.TheWorldsTopTenNon-voiceServicesforMobileOperatorsNumber10:MiniCallBubbleTALKvoiceSMS(VodafoneEgypt)SuitabilityforreproductionAnalysysResearchLimited200782DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:LessonsfromthetoptenservicesThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessons from the top ten servicesAnalysysResearchLimited200783Severalservicesinthetopten,includingtheNumber1,demonstratetheimportanceofmobileoperatorslookingbeyondtheircorebusinesslWhilethetoptenservicespointtoavarietyofgrowthopportunities,mobileoperatorshavetoberealisticabouttheARPUpotentialofmanynonvoicemobileservicesdeliveredusingcellulartechnology.lMobileoperatorswillneedtodevelopalternativeplatformsandinvestinnewareastosecurestrongARPUgrowthfromnonvoiceservices.Thismayrequiresubstantialinvestmentandappropriatepartnerships.lVodafoneCasaFASTWEBinItalyisanexampleofaDSLservicethatallowsanoperatortogeneratesignificantlyhigherARPUthananyoftodaysmobilenonvoiceservices.However,itrequiresaboldstrategicmoveintofixedservices.l3inItalyshowsthatmobileTVcanbepopularamongmobileusers,buthasrequiredinvestmentinastandaloneDVBHbroadcastingnetworkandcontent.3isalsoproducingitsownmadeformobileTVcontent,albeitinalowcostway.lThereisstrongrevenuepotentialfromNTTDoCoMosbravemoveintofinancialservices,todiversifybeyonditscorebusinessofradioaccessservices.Thishasrequiredsubstantialinvestmentandplanning,includingtakingashareholdinginacreditcardcompany,deploymentofcompatiblehandsetsandimplementationofterminalsatalargenumberofretaillocations.TheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenservicesAnalysysResearchLimited200784Nearubiquitous3GcoverageisanimportantenablerofrevenuegrowthfromnonvoicecellularservicesindevelopedmarketslWhileitisrelativelyearlydaysfor3Ginmostmarkets,3Gisafundamentalenablerforfourofthetoptenservices:3smobileTVstreaming(intheUK),SprintNextelsmobilebroadband(intheUSA),KDDIsChakuutaFullmusicdownloading(inJapan)andSKTelecomsCyworldMobile(inSouthKorea).lIndevelopedmarkets,mobileusersincreasinglyexpectsimilarperformancetothatachievedbytheirfixedandbroadcastingservices.Indeed,forsomeservices,suchasmobileInternetaccess,basicWCDMAorCDMA2000EVDORevision0areincreasinglyseenasinadequatebymobileusers.Apartfromattractiveserviceattributes,SprintNextelsinclusioninthetoptenis,toalargeextent,duetoitsearlydeploymentofCDMA2000EVDORevisionA.Thisprovideshighdatathroughputs,sothatbusinesscustomersaccustomedtofixedbroadbandservicesnolongerexperienceasubstantialdeteriorationinperformancewhengoingmobile.lWhileitiseasytobecomefocusedonthedetailedattributesofservices,theimportanceofbasiccoverageshouldnotbeoverlooked.Many3Gserviceshavebeenruledoutofthetoptenbecausetheoperatorsnetworksareatanearlystageofdevelopment,withpoorgeographicalandinbuildingcoverage.SprintNextelsEVDORevisionAwillbeavailableacrossitsentirenetworkcoverageareabythethirdquarterof2007.Similarly,3sstreamingvideoserviceintheUKisunderpinnedbythebest3GcoverageofallUKoperators.Furthermore,KDDIsChakuutaFullserviceandSKTelecomsMobileCyworldservicesbenefitfromtheextensiveCDMA2000coverageavailableinJapanandSouthKorea.TheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenservicesAnalysysResearchLimited200785HandsetsplayacriticalroleinthedeliveryofmobileserviceslHandsetsarecriticallyimportanttothedeliveryofallmobileservices.Theymustattractcustomerstotheservice,forexamplebybeingvisuallyappealing,andtheymustbeeasytouse.lSomeofthetoptenservicescanbedeliveredusingbasicmobiledevices,whichareuniversallyavailableandrelativelycheap.Theseservicesmayappealtodevelopingmarketsandparticularsegmentsofdevelopedmarketsthatcannotaffordmoreexpensivedevices.Forexample,SMSisastandardfeatureof2Gand3Ghandsetsandiseasytouse,whileBubbleTALKvoiceSMScanbesupportedonanymobileterminal.lSeveralofthetoptenservicesrequirehandsetswithspecialcapabilities. Thesemaybeexpensiveandthereforemayrestricttheservicestoparticularmarketsandmarketsegments.Forexample:wmobile TV services require 3G and/or mobile TV broadcasting technologyintheirhandsetsalongwithalarge,highqualitycolourscreen.Ideally,theuserinterfaceshouldbeaseasytouseasaTVsetwmusic services require 3G technologyforfastdownloads,highqualityplayback,largestoragecapacityfordownloadedmusictracks,andameansofexternalbackupofdownloadedsongs,incasethehandsetislostorstolenwa mobile payment service requires handsets with a secure short-range wireless technologylikeNFC,andpossiblysecurityfeatures,suchasfingerprintorfacerecognitionwemail (or IM) services require special handsets toalertuserstothearrivalofmessages,displaymessagesclearlyandenableuserstowritetextquicklyandeasily.TheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenservicesAnalysysResearchLimited200786Mobilemessagingcontinuestobeimportant,butoperatorsmustnotbecomedistractedbypictureandvideomessaginglThreeofthetoptenservicesaremessagingrelated.Withgrowinginterestinmoreexcitingservices,suchasmobileTVandmusicdownloads,mobileoperatorsmustnotforgetthatmessagingstillcontributesthelargestcomponentofnonvoiceARPUforthemajorityofoperatorsworldwide.lWhileSMShasbeeninexistenceformanyyears,O2sSMSserviceintheUKdemonstratesthatitstilloffersgrowthopportunities,evenindevelopedcountries.Whilemobileoperatorsmaybekeentointroducemoresophisticatedmessagingservices,suchaspictureandvideomessages,mobileuserspredominantlyprefertosendbasictextmessages.lFurthergrowthinmessagingrevenuewillcomefrommobileenablingthefixedmessagingservicesofemailandIM.TMobileintheUSAdemonstratesthatsuchserviceshavegreatpotential,nowthatattractiveterminals,equippedwithQWERTYkeyboards,areavailableforbothconsumerandenterprisemarkets.lDespitetheworldwidesuccessofSMS,therearestillmobileuserswhodonotusetheservice,andyetcouldbenefitfrommessaging.VodafonesMiniCallserviceinEgyptisanexcellentattemptatprovidinganewformofmessaging;itisaseasytouseasSMS,butalsohasitsownbenefits.TheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenservicesAnalysysResearchLimited200787ManyofthetoptenserviceshaverequiredsubstantialinvestmentlManyservicesinthetoptenhaverequiredsignificantinvestment,including:wnewcellularnetworkcapabilities(forexample,CDMA2000EVDORevisionAforSprintNextelsmobilebroadbandservice)wexpansionofcellularnetworkcoverage(forexample,3s3Gcoverageofover90%oftheUKpopulation,tosupportitsmobileTVstreamingservice)wnewbroadcastingnetworks(forexample,DVBHfor3smobileTVbroadcastserviceinItaly)wfixednetworks(forexample,tosupportVodafonesDSLserviceinItaly)wnewmobilepaymentinfrastructure(forexample,tosupportNTTDoCoMosmobilepaymentserviceinJapan)wnewmobilehandsetsandterminals(forexample,tosupportTMobilesBlackBerryemailserviceintheUSA)wcompellingcontent(forexample,tosupport3smobileTVandvideostreamingserviceintheUK)wdevelopmentoffixedportals(forexample,tosupportSKTelecomsMobileCyworldserviceinSouthKorea).TheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenservicesAnalysysResearchLimited200788UsergeneratedcontentandconvergencebetweenfixedandmobileservicesarebecomingincreasinglyimportantlFormobileoperators,oneofthemostattractiveattributesofpersontopersonSMSisthatitisdrivenbyusergeneratedcontent,sotherearenocontentchargestopay.Anumberofotherservicesinthetoptenalsorelyonthediversity,appealandhugevolumesofcontentthatcanonlybeproducedbyusersthemselves.Forexample:wTMobilesBlackBerryemailandIMserviceintheUSAwSKTelecomsMobileCyworldserviceinSouthKoreawVodafonesMiniCallvoiceSMSserviceinEgypt.lMobileoperatorsmustcontinuetoseekwaysinwhichindividualuserscaneasilycreateanduploadcontent,suchastext,pictures,videosandmusic,whileallowingotheruserstoaccessthiscontentconveniently.lConvergencebetweenfixedandmobileservicesisahighlyeffectivewayofincreasingtheuserbaseandutilityofservices,tofueltheirtakeup.TMobilesBlackBerryserviceprovidesmobileaccesstoemailandIM,whicharealmostubiquitousonfixednetworks.SKTelecomhassuccessfullyexploitedthepopularityofthefixedCyworldportalinSouthKorea,byofferingamobileextensionoftheservice.TheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenservicesAnalysysResearchLimited200789Indevelopedmarkets,significantinvestmentmayberequiredasmobileoperatorspushbeyondtheirtraditionalbusinessesTheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenserviceslRevenuegrowthwilldependontherolloutof3Gnetworks(andbeyond)andthetakeupofadvancedservicesusingsophisticated,relativelyexpensivehandsetsandterminals.lMobileoperatorswillneedtoexpandbeyondtheircurrentcorebusinessestoachievesatisfactorygrowthinnonvoiceARPU.lServiceconvergenceacrossfixedandmobiledeviceswillhelptoincreasethevalueofmanymobileservices,includingmessaging,TV,musicandonlinecommunities.lWhenchoosingandimplementingnewnonvoiceservices,mobileoperatorsindevelopedmarketswillneedtofocuson:waimingfortopqualityserviceandcoveragewrealisticinvestmentrequirementswSMS/messaging,whichstillhasgrowthpotentialwprovidinghandsetsthatappealtothemassmarketwpromotingexcitingservices,suchasmobileTV,inordertostimulatethetakeupof3Gwprovidingplatformsforusergeneratedcontent.AnalysysResearchLimited200790Indevelopingmarkets,thereisstronggrowthpotentialinprovenservices,usingstandardmobileterminalsTheWorldsTopTenNon-voiceServicesforMobileOperatorsLessonsfromthetoptenserviceslInordertomaximiseARPUfromnonvoiceservices,mobileoperatorsindevelopingcountriesneedtolearnfromthesuccessesandfailuresofoperatorsindevelopedmarkets;forexample,messagingmustnotbeunderpricedinanattempttodriverapidadoption.lMobileoperatorsneedtoseekopportunitiesthatarenotdependentonadvanced3Gnetworksand/orexpensivehandsetsandterminals.ServicessuchasSMSandvoiceSMShavesignificantpotential,becausetheyareavailabletotheentirecustomerbaseofmostmobileoperators.lInlocationswherethereisalackoffixedinfrastructure,thereisscopeforoperatorstoprovidewirelessInternetaccess.lWhenchoosingandimplementingnewnonvoiceservices,mobileoperatorsindevelopingmarketswillneedtofocuson:wInternetaccesswwirelesssolutionswherefixedisnotfeasiblewtheopportunitytodominateDSLwherethishasnotyettakenoffwprovidingbasic,cheapterminalsratherthannewoneswSMSandothermessagingformats(suchasvoiceSMS).AnalysysResearchLimited200791DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ActionsThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited200792Actions1lReview service portfolios against the top ten.Mobileoperatorsshouldreviewtheirserviceportfoliosagainstthetoptennonvoiceservicestoidentifygrowthopportunitiesinnewandwellestablishedservices.lFocus on excellent end-to-end implementation of services.Thetoptenservicesarecharacterisedbythequalityoftheirendtoendimplementation.Mobileoperatorsmustensurethateveryaspectoftheirchosenservicesisimplementedwell.Forexample,theyneedtoconsiderservicecoverageandquality,handsetappearanceandusability,pricing,marketing,billing,customersupportandcontent.lDeploy advanced 3G technologies quickly, to support key services.Certainservices,includingmobilebroadband,demandadvanced3GtechnologiessuchasHSDPAorCDMA2000EVDORevisionA,toenhancetheuserexperience.lEnhance the coverage of 3G networks.Highquality3Gcoverageunderpinsseveralofthetoptenservices.Thereislittlepointofferingacompelling3Gserviceif3Gisnotwidelyavailable,orifthequalityofserviceispoorbecauseofweak3Gcoverageinbuildings,forexample.Mobileoperatorsmustensurethat3Gnetworksoffercoveragethatisatleastequivalenttothatofferedby2Gnetworks.Someservices,suchasmobileTV,maybeusedmoreathomeandworkthanoutdoors,andmaydemandevenbettercoveragethan2G.TheWorldsTopTenNon-voiceServicesforMobileOperatorsActionsformobileoperatorsAnalysysResearchLimited200793Actions2lContinue to drive SMS take-up and revenue.Mobileoperatorsmustnotoverlookthecontinuedimportanceandvalueoftextmessaging.Theymustdrivefurthergrowthinmessagevolumeswithoutsignificantpricedeclines.lDevelop mobile email and IM services for the mass market.MobileoperatorsshoulddevelopmobileemailandIMservicesthatappealtoconsumersaswellasbusinessusers,byencouragingandmakinguseofthegrowingavailabilityofattractiveconsumerhandsetswithfullQWERTYkeyboards.lDevelop complementary messaging services to SMS.AlthoughSMSisahighlysuccessfulservice,asignificantproportionofmobileusersdonotuseit.WhileoperatorsshouldcontinuetowidentheappealofSMS,theyshouldalsodevelopeasytousecomplementarymessagingservices,suchasvoiceSMS.lEnsure that attractive mobile TV and video services are offered.MobileoperatorsmustofferattractiveTVandvideoservices,includingbothbroadcastandpersonalisedondemandcontent.lDecide their strategy on mobile payments.Developmentofasuccessfulmobilepaymentserviceislikelytorequiresubstantialinvestment,forexampletoensureahighproportionofcompatiblehandsetsandretailterminals.lDevelop user-generated content services.Usergeneratedcontentserviceswillbecomeincreasinglyimportant,andmobileoperatorsshouldgrasptheopportunities,forexamplethroughpartnershipwithemergingfixedcommunityportalssuchasCyworldandMySpace.TheWorldsTopTenNon-voiceServicesforMobileOperatorsActionsformobileoperatorsAnalysysResearchLimited200794DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentMap:Authors,copyrightandglossaryThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors, copyright and glossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited200795AuthorsDr Alastair BrydonandDr Mark HeatharefoundersofSoundPartnersLtdandauthorsofmorethan30reportsfromAnalysysResearch,includingPicocells and Femtocells: will indoor base stations transform the telecoms industry?,Mobile Operator Strategies for Fixed Broadband,FixedMobile Substitution in Western Europe: causes and effects,Mobile Number Portability (MNP): strategies for operators and regulators,The Business Case for WiMAX,Forecasting the Commercial Impact of Wireless VoIP in the USA and Western Europe,Evaluating the Options for Mobile TV and Radio Broadcasting in Western Europe,Prospects for the Evolution of 3G and 4GandScenarios for the Evolution of the Wireless Industry in Europe to 2010 and Beyond.AlastairisCEOofSoundPartnersLtd.PriortojoiningSoundPartners,hereportedtoNokiasEuropeanmanagementteamandworkedwithmanyofNokiascustomerstoimplementmarketfirstsrangingfromtheintroductionofprepaidmobiletariffstonewmassmarketcontentservices.Previously,AlastairworkedinanumberofrolesfortheBTGroup,focusingontheevolutionofwirelessservices,networksandtechnologies.HealsocontributedtointernationalresearchandstandardisationofGSM,DECTand3G.AlastairholdsBScandPhDdegreesfromUMIST,wherehewasawardedtheIEEPrizefortopstudent.MarkisDirectorofResearchatSoundPartnersLtd.Inthepast,heheldanumberofmarketingandbusinessdevelopmentrolesinNokia,ultimatelybecomingresponsibleforstrategyandbusinessdevelopmentacrossEurope.Previously,MarkwasresponsibleforbusinessplanningatBTCellnetintheUK,afterspendingsixyearsatBTinwirelesssystemsresearchanddevelopment.HeholdsBScandPhDdegreesfromtheUniversityofLeeds,winningtheUniversityprizeforhisresearchintelecommunications.MarkalsoholdsanMBA,graduatingastopstudentfromHenleyManagementCollege.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryAnalysysResearchLimited200796Authors (continued)Dr Windsor Holden(SeniorAnalyst)specialisesinissuesrelatingtomobileentertainmentcontent,digitalTVandemergingtelecomsmarkets.HeiscoauthorofStrategies for MVNOsandauthorofPerson-to-Person Mobile Messaging in Western Europe: forecasts and analysis 200611,Mobile Entertainment in Western Europe: value chain and forecasts 200611,The Western European Mobile Market: trends and forecasts 200611andTelco TV: European market opportunities and operator strategies.WindsorleftAnalysysResearchinApril2007.Tony Lavender(ManagingDirector)joinedAnalysysResearchin2007fromOvum,wherehehadworkedsince1999.AtOvum,Tonyledalargeresearchprogrammecoveringthetelecoms,softwareandITservicessectors,whilehisownparticularfocuswasontelecomsindustryandregulationissues.Tonysextensivemanagementexperienceincludesleadingaglobalteamof90peopleandresponsibilityforresearchrevenuesofGBP12million.BeforeOvum,TonyspenttwoyearsatOftelandworkedatBTfor18years.HehasadegreeinElectronicandElectricalEngineering.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryAnalysysResearchLimited200797AcknowledgementsTheauthorswouldliketothankallthosewhoassistedinthepreparationofthisreport,especiallySarahPeakeandAndreaSmithforeditorialsupport.Theauthorsarealsogratefultoallthosepeoplewhoprovidedinterviewsandsupportinginformationduringtheproductionofthereport,includingMikeShort(O2UK),MassimoCavazziniandGianMarcoLitrico(3Italia),SunilCoushik(BubbleMotion)andAmiraKoshairy(VodafoneEgypt).CopyrightPublishedbyAnalysysResearchLimited,StGilesCourt,24CastleStreet,Cambridge,CB30AJ,UKRegisteredinEnglandNo.3977996Tel:+44(0)1223460600;Fax:+44(0)1223452800;Email:researchanalysys.com;Web:http:/research.analysys.comAnalysysResearchLimited2007Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystemortransmittedinanyformorbyanymeanselectronic,mechanical,photocopying,recordingorotherwisewithoutthepriorwrittenpermissionofthepublisher.ISBN1905495374TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryAnalysysResearchLimited200798DisclaimerAnalysysResearchLimitedmaintainsthatallreasonablecareandskillhavebeenusedinthecompilationofthispublication.However,AnalysysResearchLimitedshallnotbeunderanyliabilityforlossordamage(includingconsequentialloss)whatsoeverorhowsoeverarisingasaresultoftheuseofthispublicationbythecustomer,hisservants,agentsoranythirdparty.AnalysysResearchLimitedrecognisesthatmanytermsappearinginthisreportareproprietary;allsuchtrademarksareacknowledgedandeveryefforthasbeenmadetoindicatethembythenormalUKpublishingpracticeofcapitalisation.However,thepresenceofaterm,inwhateverform,doesnotaffectitslegalstatusasatrademark.Theopinionsexpressedarethoseofthestatedauthorsonly.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryAnalysysResearchLimited2007992GSecondgeneration3DThreedimensional3GThirdgenerationAACAdvancedAudioCodingADSLAsynchronousDigitalSubscriberLineADSL2+AsynchronousDigitalSubscriberLine2+ARPUAverageRevenuePerUserCDMA20003GvariantofCodeDivisionMultipleAccessDABIPDigitalAudioBroadcastingInternetProtocolDMBDigitalMultimediaBroadcastingGlossaryofterms1TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryDRMDigitalRightsManagementDSLDigitalSubscriberLineDVBHDigitalVideoBroadcastingHandheldEDGEEnhancedDataRatesforGSMEvolutionEVDOCDMA20001 EvolutionDataOnlyFAFootballAssociationFIFAFdrationInternationaledeFootballAssociationFMSFixedmobilesubstitutionGBgigabyteGIFGraphicsInterchangeFormatAnalysysResearchLimited2007100GPRSGeneralPacketRadioServiceGPSGlobalPositioningSystemGSMGlobalSystemforMobilecommunicationsH.264ITUstandardforadvancedvideocodingHSDPAHighSpeedDownlinkPacketAccessiDENIntegratedDigitalEnhancedNetworkIMInstantMessagingJPEGJointPhotographicExpertsGroupkbit/skilobitspersecondGlossaryofterms2TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryLANLocalAreaNetworkLLUBLocalLoopUnbundlingMbit/smegabitspersecondMBmegabyteMMSMultimediaMessagingServiceMP3MovingPictureExpertsGroup1AudioLayer3MPEGMovingPictureExpertsGroupNFCNearFieldCommunicationPCPersonalComputerPCMCIAPersonalComputerMemoryCardInternationalAssociationAnalysysResearchLimited2007101PDAPersonalDigitalAssistantPINPersonalIdentificationNumberPNGPortableNetworkGraphicsPVRPersonalVideoRecorderRIAJRecordingIndustryAssociationofJapanRIMResearchInMotionSMSShortMessageServiceTVTelevisionGlossaryofterms3TheWorldsTopTenNon-voiceServicesforMobileOperatorsAuthors,copyrightandglossaryUEFAUnionofEuropeanFootballAssociationsVoIPVoiceoverInternetProtocolVPVicePresidentWCDMAWidebandCodeDivisionMultipleAccessWiBroWirelessBroadbandWiMAXWorldwideInteroperabilityforMicrowaveAccessAnalysysResearchLimited2007102DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ListsoffiguresandtablesThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryLists of figures and tablesLessonsfromthetoptenservicesAnalysysResearchLimited2007103List of figuresFigure1:Prorataannualspendonfixedbroadbandservices,perbroadbandhousehold,1Q2006Figure2:Householdpenetrationoffixedbroadbandservicesinselectedcountries,September2001toSeptember2006Figure3:MonthlymessagingARPUforselectedoperators,4Q2006Figure4:QuarterlyvolumeofSMSandMMSmessagesforUKoperators,1Q2005to2Q2006Figure5:QuarterlyrevenuefromSMSandMMSmessagesforUKoperators,1Q2005to2Q2006Figure6:SMSARPUforO2operators,4Q2005to4Q2006Figure7:Growthin3Gcustomersfor3UKandVodafoneUK,March2004toMarch2007Figure8:MonthlynonvoiceARPUofselectedoperatorsaroundtheworld,2006Figure9:ServicerevenueformobileemailandIMinWesternEurope,200511Figure10: Numberofusersof3ItalysDVBHservice,June2006toMarch2007Figure11: GrowthinthenumberofEZChakuutadownloads,February2003toFebruary2007Figure12: GrowthinthenumberofEZChakuutaFulldownloads,February2005toFebruary2007Figure13: GrowthinKDDIauCDMA2000EVDOsubscribers,September2003toDecember2006Figure14: NumberofEZChakuutaFullWebsitesandmusictracksFigure15: PricingofKDDIauDoubleTeigakuflatratedatatariffs,February2006Figure16: SubscribertakeupofNTTDoCoMosDCMXservice,April2006toDecember2006Figure17: NTTDoCoMosuserbasewithFeliCaenabledmobilehandsets,September2004toMarch2007ListsoffiguresandtablesTheWorldsTopTenNon-voiceServicesforMobileOperatorsAnalysysResearchLimited2007104List of tablesTable1:VodafoneCasavoicetariffs,March2007Table2:VodafoneCasaFASTWEBADSLtariffs,March2007Table3:StrengthsandweaknessesofVodafoneCasaFASTWEBandfixedbroadbandservicesfromothermobileoperatorsTable4:BoltOntariffsforO2sprepaidtariffsintheUK,March2007Table5:SMSpricedeclinesandvolumeincreasesforUKmobileoperators,1Q2005to2Q2006Table6:MobileTVandvideocontentavailablefrom3UKTable7:Selectedhighlightsfrom3UKmobileTVandcontentevolutionTable8:Typicaldataconsumptionandrevenuepermegabytefor3UKmobileTVandvideoservicesTable9:TMobileUSABlackBerrytariffs,March2007Table10:Prepaidtariffsfor3(Italy)DVBHbroadcastmobileTVserviceTable11:Postpaidtariffsfor3(Italy)DVBHbroadcastmobileTVserviceTable12:SelectedmusiccapabilitiesoftypicalCDMA2000EVDOhandsetsTable13:GlobalexpansionofCyworldListsoffiguresandtablesTheWorldsTopTenNon-voiceServicesforMobileOperatorsAnalysysResearchLimited2007105DocumentmapTheWorldsTopTenNon-voiceServicesforMobileOperatorsDocumentmap:AboutAnalysysreportsandservicesThetoptenservicesExecutivesummaryServiceevaluationprocessAbout Analysys reports and servicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservicesAnalysysResearchLimited2007106Reports from Analysys ResearchAboutAnalysysreportsandservicesAnalysysResearchsreportsaredesignedtokeepyouuptodatewithindustrydevelopmentsandhowtheyaffectplayersinthetelecomsvaluechainfromfixedandmobilenetworkoperators,tosoftwareandequipmentvendors,andcontentprovidersanddistributors.Ourreportswillhelpyou:Ourpublicationprogrammeoffersover25reportsayear,coveringallthekeyissuesaffectingthetelecomsindustryandthelatesthottopics.Recentreportshaveprovidedexpertanalysisofsuchtopicsasmobileentertainment,wirelessVoIP,tripleplay,enterprisemobiledataservices,mobileTVandradio,videotelephony,IPTV,outsourcingbytelecomsoperatorsandnakedDSL.EachreportisaccompaniedbyanExcelspreadsheetcontainingtheforecastsorotherkeydatadiscussedinthereport,presentedinaneasytouseformat.AllreportsareofferedwithAnalystSupport,allowingyoudirectconsultationwiththeauthor.Shoponlineathttp:/research.analysys.com/storeor,forinformationaboutourreportsubscriptionpackages,pleasecontactourSalesandCustomerServiceteamon+44(0)1223460600oremailusatresearchanalysys.com.lexplorethefactorsthataredrivingmarketevolutionlunderstandhowindustrytrendswillaffectyourbusinessldefineandevaluateyourstrategicoptionsusingdecisionframeworksandscenarioslidentifywhereopportunitieslieforfuturegrowthlfindoutwhichplayersarecurrentlysuccessfulandwhy.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAnalysysResearchLimited2007107AnalysysResearchsonlinemarketintelligenceserviceshelpyoukeeptrackofthelatestdevelopmentsinmajortelecomsmarketsworldwide.Allourservicesareregularlyupdatedandincludeasophisticatedrangeofinteractivesearch,benchmarkinganddownloadtools.lWorld Telecoms Marketplaceisaleadingsourceofcompanyandcontactinformationandincludesthousandsofrecordswithdataoncompanyactivities,financialandoperatingdata,andcontactdetailsforseniorstaff.lAnalysys Research Telecoms Systems Integrator Databasecontainsdataonover280systemsintegrators,enablingequipmentandsoftwarevendorstoidentifypotentialpartners,competitorsandacquisitiontargetsinEurope.Market intelligence services from Analysys Research AboutAnalysysreportsandserviceslAnalysys Research Fixed Networks and Services providesanalysisofEuropeanoperatorsandISPs,countryreportsfor30Europeanmarkets,countrymarketforecasts,commentaryonindustrytrendsandamoduleonthebroadbandmarket.lAnalysys Research Mobile Networks and Services providesinsightintothestrategiesofkeyplayersworldwide,countryreportsforleadingmobilemarkets,3Gstatusreports,countrymarketforecastsandanalysisofindustrytrends.lAnalysys Research Billing and OSS Markets and Customersincludesasearchablecontractsdatabase,trendspaperscoveringthelatestissuesinbillingandOSS,andprofilesofleadingandupandcomingvendorsworldwide.OurAnalystSupportpackage,whichallowsyoudirectconsultationwithourtelecomsexperts,isanidealcomplementtoyourchosenmarketintelligenceservice.Formoreinformationonourservicesoraguideddemonstration,pleasecontactourSalesandCustomerServiceteamon+44(0)1223460600,emailusatresearchanalysys.comorvisitourWebsiteathttp:/research.analysys.com.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAnalysysResearchLimited2007108AnalysysResearchhasdevelopeditsportfolioofCustomResearchservicesinresponsetocustomerdemandforbespokemarketintelligence,whenmoredataisneededthanisfoundinanofftheshelfreportordatabase,whentherearecomplexquestionsaboutspecificcompaniesormarketsthatneedtobeanswered,orwhenanalysisneedstobetailored.CustomResearchcandeliverrealvaluewhenanorganisationneedstoanswerspecificquestionsabouthowitispositionedinthemarket,andhowtooptimiseperformanceatvariousstagesoftheproductorservicelifecycle.Formoreinformation,ortodiscusshowwecouldhelpyoutomeetyourspecificinformationneeds,pleasecontactourCustomResearchteamon+44(0)1223460600oremailusatcustomanalysys.com.AboutAnalysysreportsandservicesCustom 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ResearchDeeper,broaderanalysis;increaseddistillationDataStructuredinformationAnalysisInsightMarketsizingandforecastingStructuredanalysisofservicemarketsAnalystsupportBespokecountryprofilingExpertsurveyandinterviewworkNewsandeventanalysisBespokecompanyprofilingLarge-scaleprimaryresearchDataandinformationcollectionTheWorldsTopTenNon-voiceServicesforMobileOperatorsAnalysysResearchLimited2007109AnalysysConsultingisaleading1internationaltelecomsanddigitalmediaconsultancy.Wedrawonourunparalleledindustryexperiencetodeliverresultsthatenableourclientstocompeteandgrowinthesemarkets,aswellastoexploitnewopportunities.Ourexperience,influenceandunrivalledknowledgebasearerecognisedgloballywhichiswhywehavebeeninvolvedinsomeoftheworldslargesttelecomsprojectsandintransactionsworthbillionsofdollars.Formorethan20years,wehavehelpedshapethetelecomsindustrythroughourextensiveworkonpolicy,regulationandfinance.Wehaveworkedwithmostofthesectorsleadingplayers,oftenatboardlevel,to:ldeterminestrategyladviseonmergerandacquisitionactivityloptimisetariffingofnewandexistingserviceslidentifyandlaunchnewbusinessventureslimproveprofitabilityandcashflowbystreamliningkeyoperationalprocesses.AnalysysConsultingservicesinclude:lstrategyandmarketinglscenarioplanningandeconomicmodellinglduediligencellicenceawardslmergersandacquisitionslregulationlinterconnectlspectrumpricinglSTEM(StrategicTelecomsEvaluationModel).Formoreinformationpleasecontact:Europe/MiddleEast/Africa(headoffice):+44(0)1223460600,enquiriesanalysys.comTheAmericas(regionalheadquarters):+12023313080,enquiriesamericaanalysys.comAsiaPacificregion(regionalheadquarters):+6568663203,enquiriesasiaanalysys.com.Analysys ConsultingAboutAnalysysreportsandservices1AmongthetopfivecommunicationsindustryconsultantsinManagement Consultancy: top 75 consultancies 2005.TheWorldsTopTenNon-voiceServicesforMobileOperatorsAnalysysResearchLimited2007