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MVAS and Mobile InternetConflict and convergence
Suresh Jayaraju
Operating in the new frame3
The New framework2
Issues in MVas1
All is well with MVas India?
Source: IAMAI Mobile VAS Report April 2008
Issues
Revenue Models / Business Models
- What's my count today - Incentivisation- NPD / R&D - Squeeze
- Hurry, innovate- Product Planning - User experience, - Reporting
VAS Products Development
Openness!
Desktop Internet • Best products win
• Choose products, not providers
• Competition is just a click away
• Entry with few $$’s
• Ad’s reward productsMVAS not
Open Platform likedesktop Internet
Most issues in VAS would cease to exist on open platforms like Desktop Internet
Operating in the new frame3
The New framework2
Issues in MVas1
1. Proliferation of Mobile Internet
2. Penetration of Smartphone's
3. Development of Browsers
Emergence of a New Framework
• It’s a start• No one size fits all• Address India’s US and Japan First
1. Proliferation of Mobile Internet
Proliferation of Mobile Internet worldwide
Source: IDC, comScore, IAB and Merrill Lynch Estimates, June 2008, Google Estimate
200 millionComputer
Browsers Shipped
240 millionMobile
Browsers Shipped<By the end of 2009…
9
In 2011, Smartphone search rates are
expected to exceed PC search rates of
2007
Google India Mobile Internet Growth
Active GPRS users estimated to be 20to 25Mn
40% of Desktop Internet users
Q3, 09
Google Mobile Search Inventory growing at 60% QoQ /
Quadrupling every year
Q2, 09Q1, 09
Numbers Indexed for confidentiality
100
150
250
The Metro PCS – “The leader in Unlimited”
• 51% YoY growth in its subscriber base - Q1 ’08 – ’09 ; the fastest % growth among all US operators
• Mobile Internet Offer:1 month of free web-access at sign-up, Flat rate unlimited data access thereafter (for $5 per month)
• Metro internet traffic grew >2.5x more quickly than another global carrier with 10 times as many users and a 3G network, Nearly half of Metro’s subscribers use the mobile Internet
Proliferation of Mobile Internet
Happy GPRS
(weekends)
Happy GPRS 2 (24x7)
Mobile Internet traffic, Iran 2007-08Mobile Internet traffic, Algeria 2008
Iran: Irancell internet traffic spiked when it introduced its “Happy GPRS weekends”
plan-with near-free Internet access
Algeria: Internet traffic spiked when Nedjma offered its subscribers “3MB
free every Friday”
“Globally, half of all new Internet connections in 2009 will come from a phone” (eMarketer 2008, 2009)
* Note: (1) In all cases, we have used Google internal traffic data as a proxy for overall mobile browser traffic
(2) Mobile subscriber data used in this analysis is from Informa / WCIS reports + individual company investor reports
Mobile Data Plans becoming affordable in India
Unlimited Data Plans- 2009
Mobile Data plan pricing across operators
Expected downward spiral on data prices
Data plans at Rs.98/- and 95/-unlimited browsing is setting the stage
for affordability
• Data Plan < 100 = 5X Google Mobile
• 5 New Operators
• 3G dream• MNP
2. Penetration of Smartphones
Global Smartphone penetration
70%26%
5%20%
0%11%
46% 53%
In 2011, Smartphone search rates are expected to exceed PC search rates of 2007
• US smart phone use grew 70% to 34 million• Smartphones account for roughly 20% of sales in N.A., a
dramatic increase over the past year• 24% of smartphones in the world are in the US
Over 30 million iPhones sold to date
Over 50,000 iPhone apps
Over 1,000,000,000 app downloads
Accounts for 50% of mobile web trafficin US
iPhone & Android are Game Changers
Several million Android Devices sold
Ranked #2 in mobile web browsingIn 5 short months
Over 18 Android devices in market in 2009
India Smartphone penetration
* Source: Operator/OEM survey plus data shared by partners
0
2
4
6
8
10
12
14
0 2k 4k 6k 8k 10k
12k
14k
16k
18k
20k
22k
24k
26k
28k
30k
INR (in k)
Vol
umes
(in
M)
Volumes of top devices at each price point, over 1 year
No device above 8k doing 1M+ volume
1 million
Samsung Star Full touch screen, 3G browsing phone
Available at sub Rs.10K in India
3. Development of Browsers
New Age Browsers - The Start of a Platform Transition
• Comparable to PC
• Multiple page support
• Zoom in and out
Full Scale HTML BrowsingMobile WAP Browsing
• Optimized for mobile
• Minimal navigation
• Quick loading19
What’s interesting about new age browsers
Phones now have• Eyes, • Ears, • Skin • Location• Motion sensor
Google Voice Search
Android and iphone - Webkit platform , HTML5, - Standardization - Web apps- Rich Media experience
Operating in the new framework3
The New framework2
Issues in MVas1
Open Platforms and Products
Product Marketing
- Try n Buy
- SPAM?
- Product appeal and features
Product Development•Global footprint,
•Competition will be a click away
•Common Open Platform
•Certified tested products
Revenue and Business Models
Partners in round table
- Device OEMs,
- Platform owners
- Operators
- Developers
- Content providers
Direct, Indirect Streams
Multiple Streams
- Ad revenue
- Product sale,
- Subscription
- Pay per view/ Pay per use….
VAS was Internet Limited !.....
With Mobile Internet MVAS becomes unlimited
Thanks
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