Global Mobile Data Services Pricing Perspective-2013


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Published October-2012
Pages 126
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Overview

The telecom operators are increasing dependent upon their Value Added Services (VAS) to offset the decline in revenue from their legacy voice services. The VAS services can be classified into basically 2 categories namely, Traditional Voice services which includes Ringtones, SMSs and the Modern Day voice services which is mainly dependent on the data connectivity service modes like WAP, GPRS, MMS etc. The current popular services which are attracting maximum mobile user base include Mobile Gaming, Social Network Sites and Mobile Applications. Nascent stage services like m-commerce, m-health, Mobile TV and Mobile Video etc yet to gain popularity.

This research reports basically summarizes the various aspects of Mobile Gaming, Social Networking Sites and Mobile Applications like Current Scenario, Drivers and Hurdles for these services and the potential revenues, with the implications on Telecom Operators,Content Aggregators, Content Providers, Device Manufacturers etc.

The report is generated through secondary findings available on the internet and the relevant sources of data have been mentioned wherever applicable.

Key Findings

The mobile subscriber base is expected to reach around 6.5 billion by 2012 and 7.5 billion
by 2015, with Asia-Pacific and Africa region combined expected to contributed around 65% of the total in 2015
– The global mobile revenue is expected to cross $1.5 trillion by 2012, with mobile data expected to contribute around 28% of it
– Smartphones accounted for around 26% of the total mobile handset sales in 2011 and is expected to reach 1,021.8 million units in 2016
– There will be more than 300 billion apps downloaded annually by 2016, approximately more than 10 times the amount that were downloaded in 2011
– The mobile operators are bound to leverage increased mobile data and smart phone penetration and with more and more consumers using the mobile phones for playing games, social networking and apps download etc, there lies huge opportunity for mobile players, device manufacturers, content/application providers to increase their revenue pipeline
– Android OS has steadily gained momentum in the past 2 years, and as in June 2012 was
the most popular Mobile OS and had a market share of 56.1%, ahead of Apple iOS (22.9%) and by 2016 would register a marginal decline in market share owing to the Windows mobile OS

Target Audience

Target Audience
– Mobile Network Operators
– Mobile Software Developers
– Handset and Tablet Manufacturers
– Content and Applications Aggregators
– Wireless Privacy and Security Specialists
– Mobile Marketing and Advertising Providers

Table of Contents

1. Executive Summary………………………………..…………………..…………11

2. Introduction……………………………………………………………. ……12
2.1. Background
2.2. Global Mobile and Broadband Connectivity
2.3. Customer Requirements and QoS Gaps To Be addressed by Telcos
2.4. Global Mobile Applications
2.5. Global Smartphone Shipments
2.6. Conclusion

3. Mobile Gaming…………………………………..…………………………20

3.1. Overview
3.1.1. The three major advancements in technology for Mobile Gaming Industry
3.1.1.1 Mobile phones supporting the downloading of mobile games
3.1.1.2 Downloading mobile games is now network technology standard independent
3.1.1.3 Games technology standard to which the mobile phones manufacturers
3.2. Distribution Model for Mobile and Tablet Games
3.2.1 Telecom operators as distributor
3.2.2. Telecom Manufacturers as distributor
3.2.3. Company websites and third-part websites as distributor
3.3. Drivers of Mobile Gaming
3.3.1 Large percentage of youth Populations
3.3.2 Availability of advanced handset features
3.3.3 Leveraging the online media
3.3.4 Availability of consumers’ usage trends to determine his psychology to drive business
3.3.5 Rapidly developing device ecosystem (Motion sensing, 3D and natural user interfaces available
3.3.6 Availability of advanced network standards like 3G, Wi-Fi and LTE
3.4. Challenges for Mobile Gaming
3.4.1 Purchasing Power Parity
3.4.2 Pricing of the games
3.4.3 Dependency on the operator’s network for online games
3.4.4 Learning curve amongst the users
3.4.5 Mobile internet penetration
3.4.6 Demand of instant games for casual gaming users (JIT availability through
online mode)
3.5. Opportunities in Mobile Gaming
3.5.1. Telecom Operators and Internet Service Providers
3.5.2. Device Makers
3.6. Conclusion

4. Social Networking………………………………………………………….27

4.1 Overview
4.1.1. Categories of Social Networking sites
4.1.2 Facebook – Riding the User Popularity Wave
4.2 Drivers for Increased adoption of Social Networking sites
4.2.1 Large customer base
4.2.2 Consumer’s psychology to portray himself and his desire to feel important
4.3 Challenges for Social Networking
4.3.1 Social Networks tend To be Self-Police
4.3.2 Lack of cross network connectivity
4.4 Opportunities in Social Networking
4.4.1 Benefits to Mobile Operators
4.4.1.1 Access Charges
4.4.1.2 Increased Mobile Internet Adoption
4.4.1.3 Increased Retention
4.4.1.4 Differentiation
4.4.1.5 Advertising Revenues
4.5 Steps carriers can take to enhance mobile social networking adoption
4.5.1 Introduce Flat Rate
4.5.2 Easy Access
4.5.3 Share location with location based applications and networking sites
4.5.4 Flexibility in Revenue Share
4.5.5 Directory Integration
4.5.6 Open to provide access to any site
4.6 Few Initiatives by the Mobile Operators and Device Manufacturers to
monetize Social Networking
4.7 Conclusion

5. Mobile Applications…………………………………………………36

5.1. Overview
5.2. Types of Mobile Application Stores
5.2.1 Operator Portals
5.2.2 Third- Party Store Fronts
5.2.3 Platform Application Stores
5.3. Drivers of adoption of Mobile Applications
5.3.1 Convenience
5.3.2 Enriched content
5.3.3 Time
5.3.4 Declining Data Rates
5.3.5 User Data Analytics
5.3.6 Innovation
5.4. Challenges for Mobile Applications Adoption
5.4.1 Platform Inter-operability
5.4.2 Development Cost
5.4.3 Marketing cost
5.4.4 Life expectancy
5.4.5 Approval process
5.4.6 Download precedes the actual experience
5.4.7 Reach
5.5. Opportunity to be tapped
5.6. Conclusion

6. Mobile Phones/Smartphones and Mobile OS……………………………….…44

6.1. Overview
6.2. Smartphones in Developing Countries – A Snapshot
6.2.1 Roadblocks Hurdles in Smartphones gaining momentum
6.2.1.1 Reduced performance and technical specification to decrease the selling
prices
6.2.1.2 Need of subsidy from the telcos
6.3. Mobile Phone Operating System- Market Share and Trends
6.4. Popular Mobile Phones Operating System
6.5. iOS (Apple) vs Android (Google)
6.6. What makes Android gaining more popularity than iOS
6.6.1 Large number of handset manufacturers for Android OS
6.6.2 Customer purchasing powers
6.7. Monthly trends of popular Mobile OS, Jan2011-Sep2012

7. Mobile Health (mHealth)………………………………………………………..59

7.1. Overview
7.2. Drivers of mHealth services
7.2.1 Increased adoption of smartphones
7.2.2 Low entry barriers
7.3. Challenges for the uptake of mHealth Services
7.3.1 Lack of Sustainable business models
7.3.2 Co-ordination amongst the stake holders
7.4. Potential of mHealth Services

8. Mobile Money…………………………………………..………………….62

8.1. Business Models for Mobile Money Transfer
8.1.1 Carrier-Bank Partnership Model
8.1.2 Carrier only Model
8.1.3 Third Party- Bank Partnership Model
8.2. Key Success Factors for Mobile Money Applications
8.2.1 Consumer Acceptance
8.2.2 Service Provider Outlook
8.3. Challenges for the Mobile Money Services
8.3.1.Regulation
8.3.2.Existing status of finance and mobile industries
8.3.3.User perceptions, behaviour, and skills
8.4. Opportunities to encash upon in Mobile Money Transfer Services
8.4.1 Smartphones
8.4.2 Near- field communications
8.5. Conclusion

9. Mobile Advertising and Marketing……………………………………….…….70

9.1. Need of Mobile-Friendly-site
9.2. Mobile Marketing in Japan

10. Trends in Emerging Markets……………………………………………………..72

10.1. Adoption of services by the youth population to drive revenues
10.2. Handset Prices
10.3. Availability of 3G Services
10.4. Revenue sharing between the content providers and telecom operators
10.5. Personalized contents
10.6. Emphasis on customer experience management
10.7. Emergence of the OTT players
10.8. Emergence of new alternative business models
10.9. Innovative offerings to retain existing and attract new customers

11. Suggestion for Telecom Operators…………………………………………79

11.1 Enabling Partner Ecosystem through Collaboration
11.2 Pricing models to be customized
11.3 Leveraging the partnership with device manufacturers/vendors and other
elements of the Telecom ecosystem
11.4 Personalized service offering
11.5 Localized version of contents
11.6 Subsidize
11.7 Focus on emerging services like m-commerce/m-health via consumer education

12. Social Networking Sites: Profile Snapshots……………………………..82

12.1 Facebook
12.2 Twitter
12.3 Linkedin
12.4 MySpace
12.5 Google Plus
12.6 deviantART
12.7 LiveJournal
12.8 Tagged
12.9 Orkut
12.10 Cafemom
12.11 Ning
12.12 Meet up
12.13 Mylife
12.14 Badoo
12.15 MeetMe

13. Profile of Mobile Gaming Companies………………………………………….107

13.1 Zynga
13.2 EA (Electronic Arts Inc)
13.3 GameLoft
13.4 Glu

14. Popular Smartphone…………………………………………………….114

14.1Samsung Galaxy Rugby Pro I547
14.2Samsung Galaxy Express I437
14.3Huawei Fusion 2 U8665
14.4HTC One X+
14.5HTC One VX
14.6Sony Xperia TL
14.7Apple iPhone5
14.8LG Optimus L9 P769
14.9Samsung I8190 Galaxy S III mini

15. References…………………………………………………………………124

List of Tables

Table 1: Global Telecom Indicators for the World Telecommunication Service Sector in 2011
Table 2: Global Subscriber Growth, Year-on-year Basis
Table 3: Top 10 countries by active mobile broadband subscriptions per 100 inhabitants
Table 4: Broadband Connections in emerging regions, 2011-2016
Table 5: Popular Social Networking Apps for Apple App Store for iPhone
Table 6: Worldwide Cost/MB (in $) mobile data v/s Monthly mobile data traffic (in MB) per
smartphone user
Table 7: 10 Popular applications download from iPhone App Store in 10 Countries-July 2012
Table 8: Top mobile manufacturers, by market penetration, Q4 2011
Table 9: Smartphone market penetration by manufacturer and OS, Q42011
Table 10: Mobile OS Comparators- iOS, Android, webOS, Windows Mobile
Table 11: Mobile OS Comparators- Windows Phone 7, BlackBerry OS, Symbian, MeeGo,
Samsung Bada
Table 12: Market Share of Popular OS in Key countries of Europe, United States and
Australia
Table 13: Generations of iPhone
Table 14: Android OS versions
Table 15: Worldwide Mobile Advertising Revenue (in $ million) by region (2010-2015)
Table 16: Facebook Advertising Revenues (in $ mn) from Geography (June’10-Jun’12)
Table 17: Processing and Other Fees Revenues (in $ mn) from Geography (Jun’10-Jun’12)
Table 18: ARPU (in $ mn) from Geography (Jun’10-Jun’12)
Table 19: Total Monthly Users and Total Users
Table 20: Quarterly Revenues (in $mn) and Total members (in mn) for the month ending
Table 21: Country-wise visitors (in %) for Various Social Networking Sites (Facebook,
Twitter, Linkedin, MySpace, Google +)
Table 22: Country-wise visitors (in %) for Various Social Networking Sites (Deviant ART,
LiveJournal, Tagged, Orkut, Cafemom)
Table 23: Country-wise visitors (in %) for Various Social Networking Sites (Ning, MeetUp,
Mylife, Badoo, Meet-me)

List of Figures

Fig 1: Global Mobile Connections Forecast, 2007-2015
Fig 2: Internet Users as a percentage of Total Population in 2006 and 2011
Fig 3: Global Mobile Broadband Connection Forecast, 2009-2015
Fig 4: The 4 Gaps- The Telecom Operators Need to Address
Fig 5: Global Mobile Applications User Base Forecast, 2009-2015
Fig 6: Global Smartphone Sales Forecast, 2009-2016
Fig 7: Components of the existing telecom VAS Value Chain Systems
Fig 8: Nokia OVI store on Nokia N8 mobile handset
Fig 9: Forecast of Mobile Gamers in US, 2010-2016
Fig 10: User playing Angry Birds on the Mobile handset
Fig 11: Facebook log-in view on a mobile handset
Fig 12: Active Users on Facebook- Total User and Mobile Users
Fig 13: Top 10 Free Social Networking Applications, July2011-June2012 on iPhone App
Store
Fig 14: Android and Apple iPhone App Store
Fig 15: Inter-relationship between Learning Curve and User Experience
Fig 16: Worldwide Mobile Apps Stores Download Forecast, 2010-2016
Fig 17: Worldwide Total Mobile Phone and Smartphone Sales, Q12007- Q22012
Fig 18: Worldwide Smartphone Sales by Mobile OS, Q12007- Q22012
Fig 19: Global Smartphone Sales Market share in Q12012 by vendor
Fig 20: Global Smartphone Market Share (in Percent) by Mobile OS, Q1 2012
Fig 21: Blackberry mobile OS
Fig 22: Market share of Mobile OS (Forecasted), 2012 and 2016
Fig 23 Worldwide trend of popular mobile OS, Jan2011-Sep2012
Fig 24: Trend of popular mobile OS in North America, Jan2011-Sep2012
Fig 25: Trend of popular mobile OS in Asia, Jan2011-Sep2012
Fig 26: Trend of popular mobile OS in Africa, Jan2011-Sep2012
Fig 27: Trend of popular mobile OS in Europe, Jan2011-Sep2012
Fig 28: Trend of popular Mobile OS in South America, Jan2011-Sep2012
Fig 29: Number of Countries with at least one Mobile Money Deployment
Fig 30: Number of Mobile Money Deployment by World regions, March 2012
Fig 31: Mobile Handset Manufacturer Market Share Trend in Brazil, Jan’11- Sep’12
Fig 32: Mobile Handset Manufacturer Market Share Trend in Russia, Jan’11- Sep’12
Fig 33: Mobile Handset Manufacturer Market Share Trend in India, Jan’11- Sep’12
Fig 34: Mobile Handset Manufacturer Market Share Trend in China, Jan’11- Sep’12
Fig 35: Mobile OS Market Share Trend in Brazil, Jan’11- Sep’12
Fig 36: Mobile OS Market Share Trend in Russia, Jan’11- Sep’12
Fig 37: Mobile OS Market Share Trend in India, Jan’11- Sep’12
Fig 38: Mobile OS Market Share Trend in China, Jan’11- Sep’12
Fig 39: Collaborative Partnership Ecosystem
Fig 40: Comparison of Total Users and Active Users on Facebook
List of Insights
Insight 1: 73% of the mobile users access social Networking Sites in United States
Insight 2: MTS selects Teradata and Social Network Analysis, to reduce churn and for
incremental sales
Insight 3: India’s first mobile application store – Airtel App Central – clocks over 2.5 million
downloads in just 30 days
Insight 4: MEDafrica
Insight 5: Safaricom M-PESA