Mobile Data Deployment Strategies 2004-2010

Published by	Portio Research Limited
Published	June, 2004	Product code	21057
Content info	200 Pages
Price	Not Available

Introduction
Related Reports

This publication has been discontinued on July 19, 2011.

Introduction

Key features of this new market study:

Worldwide market sizing of non-voice mobile services in 2004
Non-voice value-added service offerings from the worlds largest mobile operators
Understand mobile data go-to-market strategies
Analyze your position in the value chain and understand revenue sharing agreements
Case studies demonstrate how companies have actually made money out of mobile data
Future opportunities between now and 3G mass adoption
Forecasts for mobile data growth worldwide
Recommended actions for driving uptake of mobile data services

Mobile Data Deployment Strategies 2004-2010

Uptake of advanced handsets and value-added non-voice services is growing, and mobile network operators worldwide are inspired by the success they have seen in Japan and South Korea. However, mass availability and adoption of full 3G services still remains some way off in the future, and this detailed strategic market study attempts to help you identify the opportunities that are available for making money out of mobile data services in the immediate future.

This report looks at the mobile data services that are available today, in 2004, and the extent of uptake of those services. We also cover the strategies operators, applications developers and content owners are using to drive revenue and ARPU growth from subscribers.

Key questions addressed in this study:

Why are data services so important?
How are mobile operators pushing data services to subscribers?
How do operators share the revenue and how much money can brand and content owners make from data services?
Who are the most valuable customers -consumers or business users?
Who owns the "customer relationship" and how do you protect your brand?
How will data services drive up ARPU?
What different strategies are operators adopting in different world regions?
Who controls the value chain and where do you fit in?
What are the major market growth opportunities in the next few years?

Worldwide, mobile operators in most mature markets are facing a difficult time delivering financial returns to their shareholders. Most MNOs accept that subscriber penetration in mature markets has reached near-saturation level, and with voice revenues static or declining amid fierce competition in some markets, operators must drive the uptake of new value-added services in order to sustain revenue growth and profit. Added to this, operators face increasing levels of competition from MVNOs and airtime resellers, as market forces are driving down the price subscribers are willing to pay for voice, whilst driving up churn. As if all that was not enough to worry about, operators continually have to balance this declining ARPU against the ongoing cost of upgrading and building new advanced 2.5G and 3G networks.

Mobile data service revenues are forecasted to account for almost 20% of total mobile operator revenues by 2008, representing a significant growth trend for the mobile data services market over the next five years, with revenues more than doubling from the 2003 level. While voice revenues are forecast to grow at a slower pace, the total mobile market will continue to expand, as usage of services such as messaging, games and music start to penetrate the mass market.

Outside of Japan and South Korea, the only non-voice service to have gained mass market use so far is SMS, but that picture is starting to change as increasing numbers of subscribers, equipped with advanced, feature-packed handsets, begin using MMS, mobile email and other mobile data services.

Executive Summary

Definitions of Available Services

Service Categories

Extent of Deployments and Service Take-up of Mobile Data Services: 2004

Market Size and Penetration Level for Service Categories
- Introduction
- Messaging Applications
- Mobile Entertainment Services
- Mobile Office Applications
- LBS
- M-commerce
- Bundled Data Services
- WAP
- 3G
Worldwide Summary of Mobile Data Deployments and Usage

Market Trends and Consumer Preferences

Trends in the Consumer Mobile Data Market
- Messaging Applications
- Mobile Entertainment Services
- LBS
Trends in the Enterprise Mobile Data Market
- Mobile Office Applications
Trends in Mobile Content and Application Development
- Demographic Analysis
- Applications
- Devices and Platforms
- Advertising Channel
- Revenue Sharing
Trends in Data Tariffs, Pricing and Billing
- Common Pricing Methods/Models for Mobile Data
- SMS Pricing Comparisons
- MMS Pricing Comparisons
- Differences in Prepaid and Contract Tariff Plans
- Charging Structures
Consumer Behaviour
- Present Status of Mobile Data Services
- Preferred Services in the Future

Operator Go-to-Market Strategies

Services Offered by Key Network Operators
- Vodafone Group PLC
- NTT DoCoMo
- China Mobile (Hong Kong) Limited
- Cingular Wireless
- Verizon Wireless
- T-Mobile International
- mmO2
- Orange SA
- Sprint PCS
- America Movil
- Telefonica Moviles
- TIM
- Business and Revenue Models
- Value Chain
- Future Outlook
Vodafone
- Group Strategy
- Product and Services Strategy
- Current Business Model
- Segmentation Strategy
- Go-to-Market Strategy
- Future Outlook
T-Mobile International
- Group Strategy
- Current Business Model
- Segmentation Strategy
- Data Services Strategy
- Go-to-Market Strategy
Cingular Wireless
- Group Strategy
- Current Business Model
- Data Services Strategy
- Go-to-Market Strategy
SK Telecom
- Group Strategy
- Current Business Model
- Data Services Strategy
- Go-to-Market Strategy
America Movil
- Mobile Data Services in Latin America
- Group Strategy
- Current Business Model
- Data Services Strategy
- Go-to-Market strategy
Other MNO Strategies
Analysis of MNOs Revenue and ARPU figures
- Impact of Data services on revenues and ARPUs
Summary and Conclusions
- Business and Revenue Models
- Drivers
- Segmentation Strategies

Case Studies

Case Study 1: MNOs Perspective mmO2
- Big Brother
- Marketing
- Products and Services
- Pricing and Revenue Model
- Summary
Case Study 2: Content Owners - Walt Disney Internet Group
- About Walt Disney Internet Group
- Principal Revenue Streams
- Distribution
- Disney's Wireless Content Deals
- Revenue Sharing
- Future Outlook
Case Study 3: Application Developer SurfKitchen
- About SurfKitchen
- Position in the Value Chain
- Revenue Model
- Market Segmentation
- Customers and Partners
- Key Success Factors
Case Study 4: Enterprise Application - Vodafone Mobile Connect Card
- Segmentation Strategy
- Security
- Business Benefits
- Go-to-Market Strategy
- Pricing
- Customer Propositions and USP
- Competitive Advantages
- Customer Perspective
- Summary
Case Study 5: Application Portal Failure - Iobox
- About Iobox
- Products and Services
- Principal Revenue Streams
- Principal Features
- Failure of Iobox
- Key Lessons

Conclusions and Recommendations

Market Summary
- Introduction
- Growth Inhibitors of Mobile Data Services
- Future of Mobile Data Services
Strengths, Weaknesses, Opportunities and Threats in the Mobile Data Industry 2004 2010
The Road Ahead

Appendix 1

Glossary
Methodology
Bibliography
About the Authors

List of Figures

Figure 1.1 Worldwide Mobile Subscriber Forecast, 1999-2010 (year end, in millions)
Figure 1.2 Worldwide Subscribers By Air Interface (2000-2004)
Figure 1.3 Global Mobile Handsets Shipments (in million)
Figure 2.1 SMS Messages Sent Globally (2001-2004) (billion)
Figure 2.2 European SMS Market during 2002-2003 (in millions)
Figure 2.3 SMS Traffic: Selected Countries New Years Day 2004
Figure 2.4 Break-up of Mobile Gambling Services (2006)
Figure 2.5 Break-up of Mobile Adult Content Services (2006)
Figure 2.6 Average Number of i-mode E-mail Messages per Person per Day
Figure 2.7 Access to iMenu Content (October 2003)
Figure 2.8 Growth in WAP Page Impressions in the UK
Figure 2.9 Worldwide 3G Subscriber Growth (2003-2008)
Figure 2.10 Growth of W-CDMA and CDMA 2000 Subscribers Worldwide (2001-2004)
Figure 3.1 Growth of Camera Phones (2003-2007)
Figure 3.2 Growth in Total Number of MMS Sent (2003-2007)
Figure 3.3 Changing MMS Market in Context of C2P and P2P MMS (2003-2007)
Figure 3.4 Entertainment Services and Age of Users (2003)
Figure 3.5 Revenues from Mobile Gaming (2003-2006)
Figure 3.6 2G Gaming Penetration Rates Across Regions (2002-2003)
Figure 3.7 Growth of Mobile Gambling Users in Western Europe (2002-2008)
Figure 3.8 Mobile Video Average Revenue per Month (1999-2007) (Euro, year-end)
Figure 3.9 Mobile Music Market (2003-2008) (USD billion)
Figure 3.10 Users of LBS as a Percentage of IEP users (2002)
Figure 3.11 Growth in Enterprise Mobile Data Users (2001-2006)
Figure 3.12 Expected Increase in Mobile Data Spending in Enterprises (Worldwide)
Figure 3.13 Revenues Generated by E-mail (2003-2008)
Figure 3.14 Revenues from Mobile Access (Euro per Subscriber per Month)
Figure 3.15 US Mobile Travel Service (2000-2004)
Figure 3.16 Percentage of Users Interested in Data Applications (2002)
Figure 3.17 Voice Only vs. Data-enabled Handset Shipments (1999-2006)
Figure 3.18 Penetration Levels of Mobile Handsets with Different Features (2003-2007)
Figure 3.19 Worldwide PDA Sales in Units (2001-2006)
Figure 3.20 Smartphone Sales in the US (2003-2006) (million)
Figure 3.21 Global Mobile Advertising Revenues (2001-2010) (USD million)
Figure 3.22 Mobile Data Settlements Relationship Diagram
Figure 3.23 Classification of Mobile Data Transactions
Figure 3.24 Prepaid to Contract User Mix across Geographies (2002)
Figure 3.25 Prepaid to Contract User Mix in Europe (2003)
Figure 3.26 Usage Pattern of SMS
Figure 3.27 Usage Frequency of SMS
Figure 3.28 Average Logged-on Time Spent by Users on Mobile IM Service
Figure 3.29 Consumer Survey on Mobile Gaming (2002)
Figure 3.30 Age of Mobile Gaming Users
Figure 3.31 Consumer Spending Pattern on Ringtones (2004)
Figure 3.32 Consumer Spending Pattern on Ringtones (2004)
Figure 3.33 Relevance of Mobile Data in Enterprises (2004)
Figure 3.34 Mobile Data Deployment in Enterprises (1999-2002)
Figure 3.35 Enterprise Mobile Data Adoption
Figure 3.36 Level of Importance of Different Enterprise Data Services for Enterprises (2003)
Figure 4.1 Growth of T-Mobile Subscriber Base (2001-2003)
Figure 4.2 Billing Mechanism
Figure 4.3 Value Chain of Mobile Data Services
Figure 4.4 Revenue Break-up of Data Services by Segments (2003)
Figure 4.5 Revenue Break-up of Data Services by Geography
Figure 4.6 Distribution Channel Strategy
Figure 4.7 Dealer Compensation per Gross Add (GBP)
Figure 4.8 Vodafone's Wholesale proposition
Figure 4.9 ARPU Data vs. Voice (GBP)
Figure 4.10 Geographic revenue break-up
Figure 4.11 Service Revenue Break-up
Figure 4.12 Data Services Break-up by Individual and Enterprise (% of active users)
Figure 4.14 Break-up of Mobile Data Service Revenues (2003)
Figure 4.15 Break-up of Mobile Data Service Revenues (2003)
Figure 4.16 Expected Revenue Trend of Data Services (2004-2006)
Figure 4.17 Top Latin American Countries by Subscribers (December 2003)
Figure 4.18 Latin American GSM Subscribers (in millions)
Figure 4.19 Service Revenue Break-up (2002)
Figure 4.20 Orange Group and Orange France revenue figures
Figure 4.21 Comparison of ARPU figures of NTT DoCoMo
Figure 5.1 Premium Platform Service of O2
Figure 5.2 SurfKitchen's Place in the Mobile Data Services Value Chain
Figure 5.3 Cost Break-up of Installing SurfKitchen (2003)
Figure 5.4 Delivery Model of Iobox.com
Figure 6.1 Worldwide Mobile Subscriber Forecast (1999-2004)
Figure 6.2 Mobile Data Subscribers in 2004, 100% = 1400 million mobile subscribers
Figure 6.3 Revenues from Mobile Access (Euro per Subscriber per Month)
Figure 6.4 Growth in Business Mobile Data Users (2001-2006)
Figure 6.5 Sale of Mobile Handsets (million units)

List of Tables

Table 1.1 Worldwide Mobile Subscriber Forecast, 1999-2010 (year end, in millions)
Table 2.1 SMS Break-up by Region
Table 2.2 Total Regional MMS Traffic (2003-2007)
Table 2.3 Global MMS Traffic by Application
Table 2.4 Growth of Mobile Gaming Market (2003-2006)
Table 2.5 Ringtone Market Revenue Forecasts (US), 2002-2006
Table 2.6 T-Mobile Ringtones Downloaded in Key Markets (2003)
Table 2.7 Worldwide PDA Vendor Unit Shipment Estimates (2003)
Table 2.8 US PDA Vendor Unit Shipment Estimates (2003)
Table 2.9 Growth of BlackBerry Subscribers (2000-2004)
Table 2.10 Level of User Acceptance of Location-based Services
Table 2.11 Popular WAP Sites
Table 2.12 Growth of 3G Subscribers (2003-2008) (in million)
Table 2.13a Estimated 2004 SMS and MMS volumes as at Q1 2004 (in millions)
Table 2.13b Estimated User Base of Leading 2.5G and 3G Services as at Q1 2004 (in millions)
Table 3.1 Different Travel Applications on Mobile Networks
Table 3.2 Various MNO and IT Enterprise Relationships
Table 3.3 Third-party OS Solutions (November 2003)
Table 3.4 Different Platform Vendors and their Prospects
Table 3.5 Premium Messaging and Browsing Pricing Models
Table 3.6 GPRS Pricing Plans of European MNOs (December 2003)
Table 3.7 SMS Pricing in Different Regions (2003)
Table 3.8 Average End-user Prices in Europe (2004) (Euros)
Table 3.9 European MMS Pricing (August 2003) (Euro)
Table 3.10 Data Option Pricing Structure
Table 3.11 Data Time Pricing Structure
Table 3.12 Consumer Spend by Mobile Data Applications (Europe) (2004)
Table 3.13 Consumer Behaviour Trends towards Mobile Data Services
Table 3.14 Mobile Gamers Profile
Table 3.15 Potential Consumer Demand of Mobile Data Services
Table 4.1 Key Operational Statistics
Table 4.2 Revenue Breakdown of Verizon Wireless (2002-2003)
Table 4.3 T-Mobile Subscribers by Subsidiary
Table 4.4 Data as a Percentage of Service Revenue
Table 4.5 mmO2 Group Turnover (2001-2003)
Table 4.6 Key Financial Data of the Orange Group
Table 4.7 Sprint PCS: Revenues from Different Service Segments (2001-2003)
Table 4.8 Telefonica Moviles, Spain - Selected Operating Data
Table 4.9 Telefonica Sales by Business Line (share of mobile business)
Table 4.10 Revenues of TIM - Italy
Table 4.11 Mobile Operator Revenue Models
Table 4.12 Partner Networks of Vodafone
Table 4.13 Other Partnerships of Vodafone
Table 4.14 Vodafone Data ARPU
Table 4.15 Revenue sharing Vodafone New Zealand
Table 4.16 Key Consumer Segments
Table 4.17 Vodafone European Data Services Take-up (GBP million)
Table 4.18 T-Mobile's Partnerships with Third Parties
Table 4.19 T- zones Services Pricing
Table 4.20 ARPU for Cingular's Cellular/PCS
Table 4.21 Cingular Distribution ePoints of Presence'
Table 4.22 Services Offered by SK Telecom
Table 4.23 Latin America CDMA 2000 Data Rollout (Selected Countries)
Table 4.24 Latin American GPRS Tariffs, Heavy Usage Plans (June 2003, USD)
Table 4.25 Latin American GPRS Tariffs, Low Usage Plans (June 2003, USD)
Table 4.26 Table of America Movil Subsidiaries and Affiliates (December 2002)
Table 4.27 Go-to-Market Strategies of Other MNOs
Table 4.28 Data Revenue Comparison
Table 4.29 Data Services Revenue of Total Revenue for MNOs
Table 4.30 Revenue and ARPU Figures of MNOs (USD million)
Table 5.1 Data Services Accessed During Big Brother 3 (2002)
Table 5.2 Pricing of Data Services for Big Brother
Table 5.3 Revenues from SMS (2002)
Table 5.4 International Mobile Content Distribution (June 2003)
Table 5.5 US Mobile Content Distribution (June 2003)
Table 5.6 Partners of SurfKitchen
Table 5.7 Customers of SurfKitchen
Table 5.8 Vodafone UK Tariff Structure of Vodafone Mobile Connect Card (GBP)
Table 5.9 GPRS Data Rate Plans (2004)
Table 6.1 Market Forecasts of Selected Mobile Data Services
Table 6.2 Growth of 3G Subscribers (2003-2008) (figures in millions)
Table 7.1 Worldwide Forecast Subscriber Growth