Mobile Messaging Futures 2011-2015

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Mobile Messaging Futures 2011-2015

2 © 2011, Portio Research. All Rights Reserved


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Contents Introduction ............................................................................................................................14 Worldwide Mobile Market ......................................................................................................21 Mobile Messaging Market ......................................................................................................25 SMS ..........................................................................................................................................31

History of SMS ................................................................................................................................. 31 Europe .............................................................................................................................................. 38

Austria ............................................................................................................................................. 41 Belgium ........................................................................................................................................... 41 Croatia ............................................................................................................................................. 42 Czech Republic ............................................................................................................................... 43 Denmark .......................................................................................................................................... 43 Finland ............................................................................................................................................ 44 France ............................................................................................................................................. 45 Germany ......................................................................................................................................... 46 Greece ............................................................................................................................................ 47 Ireland ............................................................................................................................................. 48 Italy.................................................................................................................................................. 49 Lithuania .......................................................................................................................................... 50 Montenegro ..................................................................................................................................... 51 The Netherlands .............................................................................................................................. 52 Norway ............................................................................................................................................ 52 Poland ............................................................................................................................................. 53 Portugal ........................................................................................................................................... 54 Romania .......................................................................................................................................... 55 Russia ............................................................................................................................................. 56 Serbia .............................................................................................................................................. 57 Slovenia .......................................................................................................................................... 58 Spain ............................................................................................................................................... 59 Sweden ........................................................................................................................................... 60 Switzerland ...................................................................................................................................... 61 Turkey ............................................................................................................................................. 62 The UK ............................................................................................................................................ 62 Ukraine ............................................................................................................................................ 63 Other Markets ................................................................................................................................. 64

Asia Pacific ....................................................................................................................................... 68 Australia .......................................................................................................................................... 71 China ............................................................................................................................................... 71 Hong Kong ...................................................................................................................................... 72 India ................................................................................................................................................ 73 Indonesia ......................................................................................................................................... 73 Japan .............................................................................................................................................. 74 Malaysia .......................................................................................................................................... 75 Pakistan .......................................................................................................................................... 76 The Philippines ................................................................................................................................ 77 Singapore ........................................................................................................................................ 78 South Korea .................................................................................................................................... 79 Other Markets ................................................................................................................................. 79

North America .................................................................................................................................. 82 Canada ............................................................................................................................................ 84 The US ............................................................................................................................................ 84

Latin America ................................................................................................................................... 86 Argentina ......................................................................................................................................... 88 Brazil ............................................................................................................................................... 88 Chile ................................................................................................................................................ 89 Colombia ......................................................................................................................................... 90 El Salvador ...................................................................................................................................... 90 Mexico ............................................................................................................................................. 91 Peru ................................................................................................................................................. 92 Venezuela ....................................................................................................................................... 93

Africa and Middle East .................................................................................................................... 94 Bahrain ............................................................................................................................................ 96 Egypt ............................................................................................................................................... 96 Iran .................................................................................................................................................. 97



Kenya .............................................................................................................................................. 98 Morocco .......................................................................................................................................... 98 Nigeria ............................................................................................................................................. 99 Oman ............................................................................................................................................ 100 Saudi Arabia .................................................................................................................................. 100 South Africa ................................................................................................................................... 101 Uganda .......................................................................................................................................... 102

MMS .......................................................................................................................................104 History of MMS ............................................................................................................................... 104 Europe ............................................................................................................................................ 109

Austria ........................................................................................................................................... 112 Bosnia and Herzegovina ............................................................................................................... 112 Bulgaria ......................................................................................................................................... 113 Croatia ........................................................................................................................................... 114 Cyprus ........................................................................................................................................... 114 Denmark ........................................................................................................................................ 115 Finland .......................................................................................................................................... 116 France ........................................................................................................................................... 117 Germany ....................................................................................................................................... 118 Ireland ........................................................................................................................................... 119 Italy................................................................................................................................................ 119 Lithuania ........................................................................................................................................ 120 Moldova ......................................................................................................................................... 121 Poland ........................................................................................................................................... 121 Portugal ......................................................................................................................................... 122 Russia ........................................................................................................................................... 123 Slovakia ......................................................................................................................................... 124 Slovenia ........................................................................................................................................ 124 Spain ............................................................................................................................................. 125 Sweden ......................................................................................................................................... 126 Switzerland .................................................................................................................................... 127 Turkey ........................................................................................................................................... 128 The UK .......................................................................................................................................... 129 Other Markets ............................................................................................................................... 129

Asia Pacific ..................................................................................................................................... 133 Australia ........................................................................................................................................ 135 Bangladesh ................................................................................................................................... 136 China ............................................................................................................................................. 137 India .............................................................................................................................................. 138 Singapore ...................................................................................................................................... 139

North America ................................................................................................................................ 140 Canada .......................................................................................................................................... 142 The US .......................................................................................................................................... 142

Latin America ................................................................................................................................. 144 Argentina ....................................................................................................................................... 146 Brazil ............................................................................................................................................. 146 Colombia ....................................................................................................................................... 147 Peru ............................................................................................................................................... 148 Venezuela ..................................................................................................................................... 148

Africa and Middle East .................................................................................................................. 150 Democratic Republic of Congo ...................................................................................................... 152 Iran ................................................................................................................................................ 152 Kenya ............................................................................................................................................ 153 Morocco ........................................................................................................................................ 154 Oman ............................................................................................................................................ 155 South Africa ................................................................................................................................... 156

Mobile E-mail ........................................................................................................................159 Comparison between new and previous forecasts........................................................................... 164 Europe ............................................................................................................................................ 166

France ........................................................................................................................................... 168 Germany ....................................................................................................................................... 169 Italy................................................................................................................................................ 170 Russia ........................................................................................................................................... 171 Spain ............................................................................................................................................. 172 Sweden ......................................................................................................................................... 173



Switzerland .................................................................................................................................... 174 Turkey ........................................................................................................................................... 174 The UK .......................................................................................................................................... 175

Asia Pacific ..................................................................................................................................... 176 Australia ........................................................................................................................................ 178 China ............................................................................................................................................. 178 Hong Kong .................................................................................................................................... 179 India .............................................................................................................................................. 180 Japan ............................................................................................................................................ 181 South Korea .................................................................................................................................. 182 Thailand ........................................................................................................................................ 183


Latin America ................................................................................................................................. 188 Argentina ....................................................................................................................................... 190 Brazil ............................................................................................................................................. 191 Mexico ........................................................................................................................................... 191 Venezuela ..................................................................................................................................... 192

Africa and Middle East .................................................................................................................. 193 South Africa ................................................................................................................................... 195

Mobile IM ...............................................................................................................................197 Comparison between new and previous forecasts........................................................................... 202 Europe ............................................................................................................................................ 204

France ........................................................................................................................................... 206 Germany ....................................................................................................................................... 207 Italy................................................................................................................................................ 208 Russia ........................................................................................................................................... 209 Spain ............................................................................................................................................. 210 Turkey ........................................................................................................................................... 210 The UK .......................................................................................................................................... 211

Asia Pacific ..................................................................................................................................... 212 China ............................................................................................................................................. 214 Hong Kong .................................................................................................................................... 215 India .............................................................................................................................................. 216 The Philippines .............................................................................................................................. 217 Thailand ........................................................................................................................................ 218


Latin America ................................................................................................................................. 223 Brazil ............................................................................................................................................. 225 Mexico ........................................................................................................................................... 226

Africa and Middle East .................................................................................................................. 227 Egypt ............................................................................................................................................. 229 Nigeria ........................................................................................................................................... 230 South Africa ................................................................................................................................... 231

Mobile Messaging Vendor Survey ......................................................................................233 SMS ................................................................................................................................................. 233 MMS ................................................................................................................................................ 238 Mobile E-mail ................................................................................................................................... 242 Mobile IM ......................................................................................................................................... 244

Messaging Vendor Profiles .................................................................................................248 Acision ............................................................................................................................................. 248 Affle .................................................................................................................................................. 250 Aicent ............................................................................................................................................... 252 Airwide Solutions ............................................................................................................................. 254 Alcatel-Lucent .................................................................................................................................. 256 Anam ............................................................................................................................................... 258 Belgacom ICS .................................................................................................................................. 260 Bubble Motion .................................................................................................................................. 262 Clickatell .......................................................................................................................................... 264



Colibria ............................................................................................................................................. 266 Comverse ........................................................................................................................................ 268 Comviva ........................................................................................................................................... 270 emoze .............................................................................................................................................. 272 Ericsson ........................................................................................................................................... 274 Funambol ......................................................................................................................................... 276 Globatel Media ................................................................................................................................. 278 Good ................................................................................................................................................ 280 Huawei ............................................................................................................................................. 282 Interop Technologies ....................................................................................................................... 284 Jinny ................................................................................................................................................ 286 MACH .............................................................................................................................................. 288 mcTEL ............................................................................................................................................. 290 Miyowa ............................................................................................................................................. 292 Mobixell ............................................................................................................................................ 294 Momail Systems............................................................................................................................... 296 Netxcell ............................................................................................................................................ 298 Neustar ............................................................................................................................................ 300 NewBay ........................................................................................................................................... 302 Nimbuzz ........................................................................................................................................... 304 Nokia ................................................................................................................................................ 306 Openmind Networks ........................................................................................................................ 308 Openwave ........................................................................................................................................ 310 RIM .................................................................................................................................................. 312 SEVEN ............................................................................................................................................. 314 Sicap ................................................................................................................................................ 316 Silverstreet ....................................................................................................................................... 318 Soprano ........................................................................................................................................... 320 Sybase 365 ...................................................................................................................................... 322 Symsoft ............................................................................................................................................ 324 Synchronica ..................................................................................................................................... 326 Syniverse ......................................................................................................................................... 328 Tango Telecom ................................................................................................................................ 330 Tekelec ............................................................................................................................................ 332 TeleCommunication Systems .......................................................................................................... 334 TeleDNA .......................................................................................................................................... 336 Telenity ............................................................................................................................................ 338 Telsis ............................................................................................................................................... 340 TynTec ............................................................................................................................................. 342

Summary and Conclusions .................................................................................................345 Appendices ...........................................................................................................................373

Glossary ........................................................................................................................................ 374 Portio Research Classifications ..................................................................................................... 386 Companies Mentioned in this Report ............................................................................................ 387 About the Authors.......................................................................................................................... 396

Also available from Portio Research Limited ................................................................................... 397



List of Figures

Figure 1: Comparison of Mobile Messaging Services .................................................................... 15Figure 2: Mobile Subscriber Base – Worldwide (In Million, 2008 – 2015F) .................................... 21Figure 3: Mobile Subscriber Base – Regional (In Million, 2008 – 2015F) ....................................... 22Figure 4: Worldwide Subscriber Base – Regional Contribution (In Percent, 2010) ........................ 23Figure 5: Worldwide Subscriber Base – Regional Contribution (In Percent, 2015F) ...................... 23Figure 6: Mobile Messaging Revenue – Worldwide (In USD Billion, 2008 – 2015F) ...................... 25Figure 7: Annual Messaging ARPU – Worldwide (In USD, 2008 – 2015F) .................................... 26Figure 8: Worldwide Mobile Messaging Revenue – Regional Contribution (In Percent, 2010) ...... 27Figure 9: Worldwide Mobile Messaging Revenue – Regional Contribution (In Percent, 2015F) .... 27Figure 10: Worldwide Mobile Messaging Revenue Break-out (In Percent, 2010) ............................ 29Figure 11: Worldwide Mobile Messaging Revenue Break-out (In Percent, 2015F) .......................... 29Figure 12: SMS Revenue – Worldwide (In USD Billion, 2008 – 2015F) ........................................... 32Figure 13: P2P & A2P SMS Revenue – Worldwide (In USD Billion, 2008 – 2015F) ........................ 33Figure 14: SMS Traffic – Worldwide (In Billion, 2008 – 2015F) ........................................................ 33Figure 15: P2P & A2P SMS Traffic – Worldwide (In Billion, 2008 – 2015F) ..................................... 34Figure 16: SMS Traffic Contribution – Regional (In Percent, 2010 & 2015F) ................................... 36Figure 17: SMS Revenue Contribution – Regional (In Percent, 2010 & 2015F) .............................. 36Figure 18: SMS Use Per Subscriber Per Month – Worldwide (2008 – 2015F) ................................. 37Figure 19: SMS Traffic Growth by Region (In Percent, 2010 – 2015F) ............................................ 37Figure 20: SMS Traffic – Europe (In Billion, 2008 – 2015F) ............................................................. 38Figure 21: SMS Revenue – Europe (In USD Billion, 2008 – 2015F) ................................................ 39Figure 22: SMS Use Per Subscriber Per Month – Europe (2008 – 2015F) ...................................... 40Figure 23: SMS Traffic and SMS Use per Subscriber per Month – Austria (2008 – 2010) .............. 41Figure 24: SMS Traffic and SMS Use per Subscriber per Month – Belgium (2008 – 2010) ............. 42Figure 25: SMS Traffic and SMS Use per Subscriber per Month – Croatia (2008 – 2010) .............. 42Figure 26: SMS Traffic and SMS Use per Subscriber per Month – Czech Republic (2008 – 2010) . 43Figure 27: SMS Traffic and SMS Use per Subscriber per Month – Denmark (2008 – 2010) ........... 44Figure 28: SMS Traffic and SMS Use per Subscriber per Month – Finland (2008 – 2010) .............. 44Figure 29: SMS Traffic and SMS Use per Subscriber per Month – France (2008 – 2010) .............. 45Figure 30: SMS Traffic and SMS Use per Subscriber per Month – Germany (2008 – 2010) ........... 46Figure 31: SMS Traffic and SMS Use per Subscriber per Month – Greece (2008 – 2010) .............. 47Figure 32: SMS Traffic and SMS Use per Subscriber per Month – Ireland (2008 – 2010) ............... 48Figure 33: SMS Traffic and SMS Use per Subscriber per Month – Italy (2008 – 2010) ................... 49Figure 34: SMS Traffic and SMS Use per Subscriber per Month – Lithuania (2008 – 2010) ........... 50Figure 35: SMS Traffic and SMS Use per Subscriber per Month – Montenegro (2008 – 2010) ....... 51Figure 36: SMS Traffic and SMS Use per Subscriber per Month – The Netherlands (2008 –

20100)… ......................................................................................................................... 52Figure 37: SMS Traffic and SMS Use per Subscriber per Month – Norway (2008 – 2010) .............. 53Figure 38: SMS Traffic and SMS Use per Subscriber per Month – Poland (2008 – 2010) .............. 53Figure 39: SMS Traffic and SMS Use per Subscriber per Month – Portugal (2008 – 2010) ............ 54Figure 40: SMS Traffic and SMS Use per Subscriber per Month – Romania (2008 – 2010) ........... 55Figure 41: SMS Traffic and SMS Use per Subscriber per Month – Russia (2008 – 2010) ............... 56Figure 42: SMS Traffic and SMS Use per Subscriber per Month – Serbia (2008 – 2010) ............... 57Figure 43: SMS Traffic and SMS Use per Subscriber per Month – Slovenia (2008 – 2010) ............ 58Figure 44: SMS Traffic and SMS Use per Subscriber per Month – Spain (2008 – 2010) ................ 59Figure 45: SMS Traffic and SMS Use per Subscriber per Month – Sweden (2008 – 2010) ............. 60Figure 46: SMS Traffic and SMS Use per Subscriber per Month – Switzerland (2008 – 2010) ....... 61Figure 47: SMS Traffic and SMS Use per Subscriber per Month – Turkey (2008 – 2010) ............... 62Figure 48: SMS Traffic and SMS Use per Subscriber per Month – The UK (2008 – 2010) .............. 63Figure 49: SMS Traffic and SMS Use per Subscriber per Month – Ukraine (2008 – 2010) ............. 63Figure 50: SMS Traffic in Cyprus, Hungary and Malta (In Billion, 2008 – 2010), .............................. 64Figure 51: SMS Use per Subscriber per Month in Cyprus, Hungary and Malta (2008 – 2010) ....... 64Figure 52: SMS Traffic in Bosnia and Herzegovina, Bulgaria and Slovakia (In Billion, 2008 –

2010)… ........................................................................................................................... 65Figure 53: SMS Use per Subscriber per Month in Bosnia and Herzegovina, Bulgaria and Slovakia

(2008 – 2010) .................................................................................................................. 65



Figure 54: SMS Traffic in Estonia, Iceland and Luxembourg (In Billion, 2008 – 2010) .................... 66Figure 55: SMS Use per Subscriber per Month in Estonia, Iceland and Luxembourg (2008 –

2010)… ........................................................................................................................... 66Figure 56: SMS Traffic – Asia Pacific (In Billion, 2008 – 2015F) ...................................................... 68Figure 57: SMS Revenue – Asia Pacific (In USD Billion, 2008 – 2015F) ......................................... 69Figure 58: SMS Use Per Subscriber Per Month – Asia Pacific (2008 – 2015F) .............................. 70Figure 59: SMS Traffic and SMS Use per Subscriber per Month – Australia (2008 – 2010) ............ 71Figure 60: SMS Traffic and SMS Use per Subscriber per Month – China (2008 – 2010) ................ 72Figure 61: SMS Traffic and SMS Use per Subscriber per Month – Hong Kong (2008 – 2010) ........ 72Figure 62: SMS Traffic and SMS Use per Subscriber per Month – India (2008 – 2010) .................. 73Figure 63: SMS Traffic and SMS Use per Subscriber per Month – Indonesia (2008 – 2010) .......... 74Figure 64: SMS Traffic and SMS Use per Subscriber per Month – Japan (2008 – 2010) ................ 74Figure 65: SMS Traffic and SMS Use per Subscriber per Month – Malaysia (2008 – 2010) ............ 75Figure 66: SMS Traffic and SMS Use per Subscriber per Month – Pakistan (2008 – 2010) ............ 76Figure 67: SMS Traffic and SMS Use per Subscriber per Month – The Philippines (2008 – 2010) . 77Figure 68: SMS Traffic and SMS Use per Subscriber per Month – Singapore (2008 – 2010) ......... 78Figure 69: SMS Traffic and SMS Use per Subscriber per Month – South Korea (2008 – 2010) ...... 79Figure 70: SMS Traffic in Taiwan, Afghanistan and Macau (In Billion, 2008 – 2010) ....................... 80Figure 71: SMS Use per Subscriber per Month in Taiwan, Afghanistan and Macau (2008 –

2010)….. ......................................................................................................................... 80Figure 72: SMS Traffic – North America (In Billion, 2008 – 2015F) ................................................. 82Figure 73: SMS Revenue – North America (In USD Billion, 2008 – 2015F) ..................................... 83Figure 74: SMS Use Per Subscriber Per Month – North America (2008 – 2015F) .......................... 83Figure 75: SMS Traffic and SMS Use per Subscriber per Month – Canada (2008 – 2010) ............. 84Figure 76: SMS Traffic and SMS Use per Subscriber per Month – The US (2008 – 2010) .............. 85Figure 77: SMS Traffic – Latin America (In Billion, 2008 – 2015F) .................................................. 86Figure 78: SMS Revenue – Latin America (In USD Billion, 2008 – 2015F) ...................................... 87Figure 79: SMS Use Per Subscriber Per Month – Latin America (2008 – 2015F) .......................... 87Figure 80: SMS Traffic and SMS Use per Subscriber per Month – Argentina (2008 – 2010) .......... 88Figure 81: SMS Traffic and SMS Use per Subscriber per Month – Brazil (2008 – 2010) ................. 89Figure 82: SMS Traffic and SMS Use per Subscriber per Month – Chile (2008 – 2010) ................. 89Figure 83: SMS Traffic and SMS Use per Subscriber per Month – Colombia (2008 – 2010) ........... 90Figure 84: SMS Traffic and SMS Use per Subscriber per Month – El Salvador (2008 – 2010) ....... 91Figure 85: SMS Traffic and SMS Use per Subscriber per Month – Mexico (2008 – 2010) .............. 91Figure 86: SMS Traffic and SMS Use per Subscriber per Month – Peru (2008 – 2010) .................. 92Figure 87: SMS Traffic and SMS Use per Subscriber per Month – Venezuela (2008 – 2010) ......... 93Figure 88: SMS Traffic – Africa and Middle East (In Billion, 2008 – 2015F) ..................................... 94Figure 89: SMS Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F) ........................ 95Figure 90: SMS Use Per Subscriber Per Month – Africa and Middle East (2008 – 2015F) ........... 95Figure 91: SMS Traffic and SMS Use per Subscriber per Month – Bahrain (2008 – 2010) ............. 96Figure 92: SMS Traffic and SMS Use per Subscriber per Month – Egypt (2008 – 2010) ................ 97Figure 93: SMS Traffic and SMS Use per Subscriber per Month – Iran (2008 – 2010) ................... 97Figure 94: SMS Traffic and SMS Use per Subscriber per Month – Kenya (2008 – 2010) ............... 98Figure 95: SMS Traffic and SMS Use per Subscriber per Month – Morocco (2008 – 2010) ............ 99Figure 96: SMS Traffic and SMS Use per Subscriber per Month – Nigeria (2008 – 2010) .............. 99Figure 97: SMS Traffic and SMS Use per Subscriber per Month – Oman (2008 – 2010) .............. 100Figure 98: SMS Traffic and SMS Use per Subscriber per Month – Saudi Arabia (2008 – 2010) ... 101Figure 99: SMS Traffic and SMS Use per Subscriber per Month – South Africa (2008 – 2010) .... 101Figure 100: SMS Traffic and SMS Use per Subscriber per Month – Uganda (2008 – 2010) ........... 102Figure 101: MMS Revenue – Worldwide (In USD Billion, 2008 – 2015F) ........................................ 105Figure 102: MMS Traffic – Worldwide (In Billion, 2008 – 2015F) ..................................................... 106Figure 103: MMS Traffic Contribution – Regional (In Percent, 2010 & 2015F) ................................ 107Figure 104: MMS Revenue Contribution – Regional (In Percent, 2010 & 2015F) ............................ 107Figure 105: MMS Use Per Subscriber Per Year – Worldwide (2008 – 2015F) ................................ 108Figure 106: MMS Traffic Growth by Region (In Percent, 2010 – 2015F) ......................................... 108Figure 107: MMS Traffic – Europe (In Billion, 2008 – 2015F) .......................................................... 109Figure 108: MMS Revenue – Europe (In USD Billion, 2008 – 2015F) ............................................. 110Figure 109: MMS Use Per Subscriber Per Year – Europe (2008 – 2015F) ...................................... 110



Figure 110: MMS Traffic and MMS Use per Subscriber per Year – Austria (2008 – 2010) .............. 112Figure 111: MMS Traffic and MMS Use per Subscriber per Year – Bosnia and Herzegovina (2008 –

2010) ............................................................................................................................. 113Figure 112: MMS Traffic and MMS Use per Subscriber per Year – Bulgaria (2008 – 2010) .......... 113Figure 113: MMS Traffic and MMS Use per Subscriber per Year – Croatia (2008 – 2010) ............. 114Figure 114: MMS Traffic and MMS Use per Subscriber per Year – Cyprus (2008 – 2010) ............. 115Figure 115: MMS Traffic and MMS Use per Subscriber per Year – Denmark (2008 – 2010) .......... 115Figure 116: MMS Traffic and MMS Use per Subscriber per Year – Finland (2008 – 2010) ............. 116Figure 117: MMS Traffic and Use per Subscriber per Year – France (2008 – 2010) ....................... 117Figure 118: MMS Traffic and Use per Subscriber per Year – Germany (2008 – 2010) ................... 118Figure 119: MMS Traffic and MMS Use per Subscriber per Year – Ireland (2008 – 2010) .............. 119Figure 120: MMS Traffic and MMS Use per Subscriber per Year – Italy (2008 – 2010) .................. 120Figure 121: MMS Traffic and MMS Use per Subscriber per Year – Lithuania (2008 – 2010) .......... 120Figure 122: MMS Traffic and MMS Use per Subscriber per Year – Moldova (2008 – 2010) ........... 121Figure 123: MMS Traffic and MMS Use per Subscriber per Year – Poland (2008 – 2010) .............. 122Figure 124: MMS Traffic and MMS Use per Subscriber per Year – Portugal (2008 – 2010) ............ 122Figure 125: MMS Traffic and MMS Use per Subscriber per Year – Russia (2008 – 2010) .............. 123Figure 126: MMS Traffic and MMS Use per Subscriber per Year –Slovakia (2008 – 2010) ............ 124Figure 127: MMS Traffic and MMS Use per Subscriber per Year – Slovenia (2008 – 2010) ........... 125Figure 128: MMS Traffic and MMS Use per Subscriber per Year – Spain (2008 – 2010) ................ 126Figure 129: MMS Traffic and MMS Use per Subscriber per Year – Sweden (2008 – 2010) ............ 126Figure 130: MMS Traffic and MMS Use per Subscriber per Year – Switzerland (2008 – 2010) ...... 127Figure 131: MMS Traffic and Use per Subscriber per Year – Turkey (2008 – 2010) ....................... 128Figure 132: MMS Traffic and MMS Use per Subscriber per Year – The UK (2008 – 2010) ............. 129Figure 133: MMS Traffic in Estonia, Iceland and Malta (In Million, 2008 – 2010) ............................ 130Figure 134: MMS Use per Subscriber per Year in Estonia, Iceland and Malta (2008 – 2010) ....... 130Figure 135: MMS Traffic in Hungary, Norway, Romania and Serbia (In Million, 2008 – 2010) ........ 131Figure 136: MMS Use per Subscriber per Year in Hungary, Norway, Romania and Serbia (2008 –

2010) ............................................................................................................................. 131Figure 137: MMS Traffic – Asia Pacific (In Billion, 2008 – 2015F) ................................................... 133Figure 138: MMS Revenue – Asia Pacific (In USD Billion, 2008 – 2015F) ...................................... 134Figure 139: MMS Use Per Subscriber Per Year – Asia Pacific (2008 – 2015F) .............................. 134Figure 140: MMS Traffic and MMS Use per Subscriber per Year – Australia (2008 – 2010) ........... 135Figure 141: MMS Traffic and MMS Use per Subscriber per Year – Bangladesh (2008 – 2010) ...... 136Figure 142: MMS Traffic and MMS Use per Subscriber per Year – China (2008 – 2010) ................ 137Figure 143: MMS Traffic and MMS Use per Subscriber per Year – India (2008 – 2010) ................. 138Figure 144: MMS Traffic and MMS Use per Subscriber per Year – Singapore (2008 – 2010) ......... 139Figure 145: MMS Traffic – North America (In Billion, 2008 – 2015F) ............................................... 140Figure 146: MMS Revenue – North America (In USD Billion, 2008 – 2015F) .................................. 141Figure 147: MMS Use Per Subscriber Per Year – North America (2008 – 2015F) .......................... 141Figure 148: MMS Traffic and MMS Use per Subscriber per Year – Canada (2008 – 2010) ............ 142Figure 149: MMS Traffic and MMS Use per Subscriber per Year – The US (2008 – 2010) ............. 143Figure 150: MMS Traffic – Latin America (In Billion, 2008 – 2015F) ................................................ 144Figure 151: MMS Revenue – Latin America (In USD Billion, 2008 – 2015F) ................................... 145Figure 152: MMS Use Per Subscriber Per Year – Latin America (2008 – 2015F) .......................... 145Figure 153: MMS Traffic and MMS Use per Subscriber per Year – Argentina (2008 – 2010) ......... 146Figure 154: MMS Traffic and MMS Use per Subscriber per Year – Brazil (2008 – 2010) ................ 147Figure 155: MMS Traffic and MMS Use per Subscriber per Year – Colombia (2008 – 2010) .......... 147Figure 156: MMS Traffic and MMS Use per Subscriber per Year – Peru (2008 – 2010) ................. 148Figure 157: MMS Traffic and MMS Use per Subscriber per Year – Venezuela (2008 – 2010) ........ 149Figure 158: MMS Traffic – Africa and Middle East (In Billion, 2008 – 2015F) .................................. 150Figure 159: MMS Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F) ..................... 151Figure 160: MMS Use Per Subscriber Per Year – Africa and Middle East (2008 – 2015F) .......... 151Figure 161: MMS Traffic and MMS Use per Subscriber per Year – Democratic Republic of Congo

(2008 – 2010) ................................................................................................................ 152Figure 162: MMS Traffic and MMS Use per Subscriber per Year – Iran (2008 – 2010) ................... 153Figure 163: MMS Traffic and Use per Subscriber per Year – Kenya (2008 – 2010) ........................ 153Figure 164: MMS Traffic and Use per Subscriber per Year – Morocco (2008 – 2010) .................... 154



Figure 165: MMS Traffic and MMS Use per Subscriber per Year – Oman (2008 – 2010) ............... 155Figure 166: MMS Traffic and MMS Use per Subscriber per Year – South Africa (2008 – 2010) ..... 156Figure 167: Mobile E-mail Users – Worldwide (In Million, 2008 – 2015F) ........................................ 160Figure 168: Mobile E-mail Penetration – Worldwide (In Percent, 2008 – 2015F) ............................. 160Figure 169: Mobile E-mail Revenue – Worldwide (In USD Billion, 2008 – 2015F) ........................... 161Figure 170: Mobile E-mail Users Contribution – Regional (In Percent, 2010 & 2015F) ................... 162Figure 171: Mobile E-mail Revenue Contribution – Regional (In Percent, 2010 & 2015F) ............... 162Figure 172: Mobile E-mail Users Growth by Region (In Percent, 2010 – 2015F) ............................. 163Figure 173: Smartphone Shipments Y-o-Y Growth by Region (In Percent, 2009 & 2010) ............... 164Figure 174: Mobile E-mail Users – Europe (In Million, 2008 – 2015F) ............................................. 166Figure 175: Mobile E-mail Penetration – Europe (In Percent, 2008 – 2015F) .................................. 167Figure 176: Mobile E-mail Revenue – Europe (In USD Billion, 2008 – 2015F) ................................ 167Figure 177: Mobile E-mail Penetration – France (In Percent, 2008 – 2010) .................................... 168Figure 178: Mobile E-mail Penetration – Germany (In Percent, 2008 – 2010) ................................. 169Figure 179: Mobile E-mail Penetration – Italy (In Percent, 2008 – 2010) ......................................... 170Figure 180: Mobile E-mail Penetration – Russia (In Percent, 2008 – 2010) ..................................... 171Figure 181: Mobile E-mail Penetration – Spain (In Percent, 2008 – 2010) ...................................... 172Figure 182: Mobile E-mail Penetration – Sweden (In Percent, 2008 – 2010) ................................... 173Figure 183: Mobile E-mail Penetration – Switzerland (In Percent, 2008 – 2010) ............................. 174Figure 184: Mobile E-mail Penetration – Turkey (In Percent, 2008 – 2010) ..................................... 175Figure 185: Mobile E-mail Penetration – The UK (In Percent, 2008 – 2010) ................................... 175Figure 186: Mobile E-mail Users – Asia Pacific (In Million, 2008 – 2015F) ...................................... 176Figure 187: Mobile E-mail Penetration – Asia Pacific (In Percent, 2008 – 2015F) ......................... 177Figure 188: Mobile E-mail Revenue – Asia Pacific (In USD Billion, 2008 – 2015F) ......................... 177Figure 189: Mobile E-mail Penetration – Australia (In Percent, 2008 – 2010) .................................. 178Figure 190: Mobile E-mail Penetration – China (In Percent, 2008 – 2010) ...................................... 179Figure 191: Mobile E-mail Penetration – Hong Kong (In Percent, 2008 – 2010) .............................. 179Figure 192: Mobile E-mail Penetration – India (In Percent, 2008 – 2010) ........................................ 180Figure 193: Mobile E-mail Penetration – Japan (In Percent, 2008 – 2010) ...................................... 181Figure 194: Mobile E-mail Penetration – South Korea (In Percent, 2008 – 2010) ............................ 182Figure 195: Mobile E-mail Penetration – Thailand (In Percent, 2008 – 2010) .................................. 183Figure 196: Mobile E-mail Users – North America (In Million, 2008 – 2015F) .................................. 184Figure 197: Mobile E-mail Penetration – North America (In Percent, 2008 – 2015F) ..................... 185Figure 198: Mobile E-mail Revenue – North America (In USD Billion, 2008 – 2015F) ..................... 185Figure 199: Mobile E-mail Penetration – Canada (In Percent, 2008 – 2010) ................................... 186Figure 200: Mobile E-mail Penetration – The US (In Percent, 2008 – 2010) ................................... 187Figure 201: Mobile E-mail Users – Latin America (In Million, 2008 – 2015F) ................................... 188Figure 202: Mobile E-mail Penetration – Latin America (In Percent, 2008 – 2015F) ...................... 189Figure 203: Mobile E-mail Revenue – Latin America (In USD Billion, 2008 – 2015F) ...................... 189Figure 204: Mobile E-mail Penetration – Argentina (In Percent, 2008 – 2010) ............................... 190Figure 205: Mobile E-mail Penetration – Brazil (In Percent, 2008 – 2010) ....................................... 191Figure 206: Mobile E-mail Penetration – Mexico (In Percent, 2008 – 2010) .................................... 192Figure 207: Mobile E-mail Penetration – Venezuela (In Percent, 2008 – 2010) ............................... 192Figure 208: Mobile E-mail Users – Africa and Middle East (In Million, 2008 – 2015F) ..................... 193Figure 209: Mobile E-mail Penetration – Africa and Middle East (In Percent, 2008 – 2015F) .......... 194Figure 210: Mobile E-mail Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F) ........ 194Figure 211: Mobile E-mail Penetration – South Africa (In Percent, 2008 – 2010) ........................... 195Figure 212: Mobile IM Users – Worldwide (In Million, 2008 – 2015F) .............................................. 198Figure 213: Mobile IM Penetration – Worldwide (In Percent, 2008 – 2015F) ................................... 198Figure 214: Mobile IM Revenue – Worldwide (In USD Billion, 2008 – 2015F) ................................. 199Figure 215: Mobile IM Users Contribution – Regional (In Percent, 2010 & 2015F) .......................... 199Figure 216: Mobile IM Revenue Contribution – Regional (In Percent, 2010 & 2015F) ..................... 200Figure 217: Mobile IM Users Growth by Region (In Percent, 2008 – 2015F) ................................... 201Figure 218: Smartphone Shipments Y-o-Y Growth by Region (In Percent, 2009 & 2010) ............... 202Figure 219: Mobile IM Users – Europe (In Million, 2008 – 2015F) ................................................... 204Figure 220: Mobile IM Penetration – Europe (In Percent, 2008 – 2015F ) ....................................... 205Figure 221: Mobile IM Revenue – Europe (In USD Billion, 2008 – 2015F) ...................................... 205Figure 222: Mobile IM Penetration – France (In Percent, 2008 – 2010) .......................................... 206



Figure 223: Mobile IM Penetration – Germany (In Percent, 2008 – 2010) ....................................... 207Figure 224: Mobile IM Penetration – Italy (In Percent, 2008 – 2010) ............................................... 208Figure 225: Mobile IM Penetration – Russia (In Percent, 2008 – 2010) ........................................... 209Figure 226: Mobile IM Penetration – Spain (In Percent, 2008 – 2010) ............................................ 210Figure 227: Mobile IM Penetration – Turkey (In Percent, 2008 – 2010) ........................................... 211Figure 228: Mobile IM Penetration – The UK (In Percent, 2008 – 2010) .......................................... 211Figure 229: Mobile IM Users – Asia Pacific (In Million, 2008 – 2015F) ............................................ 212Figure 230: Mobile IM Penetration – Asia Pacific (In Percent, 2008 – 2015F) ................................. 213Figure 231: Mobile IM Revenue – Asia Pacific (In USD Billion, 2008 – 2015F) ............................... 213Figure 232: Mobile IM Penetration – China (In Percent, 2008 – 2010) ............................................ 214Figure 233: Mobile IM Penetration – Hong Kong (In Percent, 2008 – 2010) .................................... 215Figure 234: Mobile IM Penetration – India (In Percent, 2008 – 2010) .............................................. 216Figure 235: Mobile IM Penetration – The Philippines (In Percent, 2008 – 2010) ............................. 217Figure 236: Mobile IM Penetration – Thailand (In Percent, 2008 – 2010) ........................................ 218Figure 237: Mobile IM Users – North America (In Million, 2008 – 2015F) ........................................ 219Figure 238: Mobile IM Penetration – North America (In Percent, 2008 – 2015F) ............................. 220Figure 239: Mobile IM Revenue – North America (In USD Billion, 2008 – 2015F) ........................... 220Figure 240: Mobile IM Penetration – Canada (In Percent, 2008 – 2010) ......................................... 221Figure 241: Mobile IM Penetration – The US (In Percent, 2008 – 2010) .......................................... 222Figure 242: Mobile IM Users – Latin America (In Million, 2008 – 2015F) ......................................... 223Figure 243: Mobile IM Penetration – Latin America (In Percent, 2008 – 2015F) .............................. 224Figure 244: Mobile IM Revenue – Latin America (In USD Billion, 2008 – 2015F) ............................ 224Figure 245: Mobile IM Penetration – Brazil (In Percent, 2008 – 2010) ............................................. 225Figure 246: Mobile IM Penetration – Mexico (In Percent, 2008 – 2010) .......................................... 226Figure 247: Mobile IM Users – Africa and Middle East (In Million, 2008 – 2015F) ........................... 227Figure 248: Mobile IM Penetration – Africa and Middle East (In Percent, 2008 – 2015F) ................ 228Figure 249: Mobile IM Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F) .............. 228Figure 250: Mobile IM Penetration – Egypt (In Percent, 2008 – 2010) ............................................ 229Figure 251: Mobile IM Penetration – Nigeria (In Percent, 2008 – 2010) .......................................... 230Figure 252: Mobile IM Penetration – South Africa (In Percent, 2008 – 2010) .................................. 231Figure 261: Revenue Comparison - Worldwide (In USD Billion, 2010 & 2011F) .............................. 347Figure 262: Comparison of Data Service Users (In Billion, 2011F) .................................................. 347Figure 263: Effective SMS Cost – Worldwide (In USD, 2008 – 2015F) ........................................... 350Figure 264: SMS’ Contribution to Mobile Data ARPU – Worldwide (In Percent, 2008 – 2015F) ...... 351Figure 265: Effective MMS Cost – Worldwide (In USD, 2008 – 2015F) ........................................... 360Figure 266: MMS’ Contribution to Mobile Data ARPU – Worldwide (In Percent, 2008 – 2015F) ..... 360Figure 267: MMS Revenue – China Mobile (In USD Million, H1 2009 & H1 2010) .......................... 361Figure 268: MMS Users – China Mobile (In Million, 2009 & H1 2010) ............................................. 361Figure 269: Mobile E-mail Users – Regional (In Million, 2010 & 2015F) .......................................... 363Figure 270: Mobile E-mail Revenue – Regional (In USD Billion, 2010 & 2015F) ............................. 364Figure 271: Mobile IM Users – Regional (In Million, 2010 & 2015F) ................................................ 365Figure 272: Mobile IM Revenue – Regional (In USD Billion, 2010 & 2015F) ................................... 365Figure 273: Worldwide Mobile Messaging Services’ Revenue CAGR (In Percent, 2010 – 2015F) .. 369



List of Tables

Table 1: SMS Traffic – Regional (In Billion, 2008 – 2015F), .......................................................... 15Table 2: SMS Revenue – Regional (In USD Billion, 2008 – 2015F) ............................................. 16Table 3: MMS Traffic – Regional (In Billion, 2008 – 2015F) .......................................................... 16Table 4: MMS Revenue – Regional (In USD Billion, 2008 – 2015F) ............................................. 17Table 5: Mobile E-mail Users – Regional (In Million, 2008 – 2015F) ............................................ 17Table 6: Mobile E-mail Revenue – Regional (In USD Billion, 2008 – 2015F) ............................... 18Table 7: Mobile IM Users – Regional (In Million, 2008 – 2015F) .................................................. 18Table 8: Mobile IM Revenue – Regional (In USD Billion, 2008 – 2015F) ...................................... 19Table 9: Mobile Subscribers – Regional (In Million, 2008 – 2015F) .............................................. 22Table 10: Mobile Messaging Revenue – Regional (In USD Billion, 2008 – 2015F) ........................ 26Table 11: Break-out of Mobile Messaging Revenue by Service – Worldwide (In USD Billion, 2008 –

2015F) ............................................................................................................................ 28Table 12: Growth of SMS – Worldwide (In Billion, 2000 – 2015F) .................................................. 31Table 13: SMS Traffic Break-out – Regional (In Billion, 2008 – 2015F) .......................................... 35Table 14: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Europe (In

Percent, 2010) ................................................................................................................ 67Table 15: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Asia Pacific (In

Percent, 2010) ................................................................................................................ 81Table 16: Country’s Contribution to Regional Subscriber Base and SMS Traffic — North America

(In Percent, 2010) ........................................................................................................... 85Table 17: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Latin America (In

Percent, 2010) ................................................................................................................ 93Table 18: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Africa and

Middle East (In Percent, 2010) ...................................................................................... 102Table 19: Growth of MMS – Worldwide (In Billion, 2005 – 2015F) ............................................... 104Table 20: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Europe (In

Percent, 2010) .............................................................................................................. 132Table 21: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Asia Pacific (In

Percent, 2010) .............................................................................................................. 139Table 22: Country’s Contribution to Regional Subscriber Base and MMS Traffic — North America

(In Percent, 2010) ......................................................................................................... 143Table 23: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Latin America

(In Percent, 2010) ......................................................................................................... 149Table 24: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Africa and

Middle East (In Percent, 2010) ...................................................................................... 157Table 25: Comparison of New and Old Forecasts – Mobile E-mail Users (In Million, 2010 –

2015F)... ........................................................................................................................ 165Table 26: Comparison of New and Old Forecasts – Mobile IM Users (In Million, 2010 – 2015F) . 203Table 27: Opinion on Messaging Contribution to Mobile Data Revenue (In Percent, 2011F) ....... 345Table 28: Actual SMS and MMS Contribution to Mobile Data Revenue (In Percent, 2011F) ........ 345Table 29: Largest SMS Markets by Traffic – Worldwide (In Billion, 2010) .................................... 349Table 30: Largest individual SMS Market by Traffic – Regional (In Billion, 2010) ......................... 350Table 31: Top 20 Markets by SMS per Subscriber per Month – Worldwide (2010) ...................... 353Table 32: SMS Traffic and Revenue Growth – Regional (In Percent, 2010 – 2015F) ................... 354Table 33: MMS Traffic and Revenue Growth – Regional (In Percent, 2010 – 2015F) .................. 356Table 34: Largest MMS Market by Traffic – Regional (In Million, 2010) ........................................ 357Table 35: Largest MMS Markets by Traffic – Worldwide (In Million, 2010) ................................... 358Table 36: Top 20 Markets by MMS per Subscriber per Year – Worldwide (2010) ........................ 359Table 37: Mobile E-mail Users and Revenue Growth – Regional (In Percent, 2010 – 2015F) ..... 363Table 38: Mobile IM Users and Revenue Growth – Regional (In Percent, 2010 – 2015F) ............ 366



Chapter 1 Introduction



Introduction The worldwide mobile industry continues to grow at a significant rate. Since inception, this industry’s prolific growth rate has perpetually amazed all, including experts themselves, and will be strengthened further with the ongoing convergence of services with mobile communications, and initiatives by Mobile Network Operators (MNOs). If the current market size is seen as an asset, it has its downsides as well. Intense competition, fierce price wars and commoditisation of voice in some markets has led to a decline in average revenue per user (ARPU). The increasing competition among MNOs has forced them to reduce charges for basic voice calling services to attract more and more subscribers, and, in order to recoup revenues lost to falling voice service charges, operators have shifted their focus to promote data services, with mobile messaging services being key among these. MNOs are making huge investments in high-speed networks, combined with offering discounted or unlimited plans, to push the uptake of messaging services among subscribers. Among mobile messaging services, SMS has consistently claimed the top spot. With its widespread reach to virtually all mobile subscribers (John’s Phone1

users being one exception), SMS has long been the most popular messaging service and has helped MNOs significantly offset the effects of falling voice revenue. Its simplicity, ease of use and handset independence has made it well-liked among subscribers of all ages, and the undisputed ‘king of the mobile messaging world’. MMS, launched with the unrealistically high expectations that it would mirror the success of SMS and hampered by technical problems and over-pricing during its early years, has largely solved its teething issues and retains its status as the world’s second most popular messaging service. With the changing dynamics of the mobile industry, the popularity of MMS has been gaining momentum and overcoming those initial obstacles, such as lack of interoperability, prohibitive pricing and costly MMS-enabled handsets. Mobile e-mail and mobile instant messaging (IM) are gaining popularity among subscribers and a lot of the credit goes to the long-established desktop versions of these services, which subscribers are already familiar with. To get the convenience of communicating through e-mail and IM on-the-move, subscribers are readily willing to pay for the appropriate data plans and have their e-mail and chat clients configured on their handsets. An important factor, which adds to both messaging traffic and revenue, is mobile advertising. With the widespread reach of SMS, MMS, mobile e-mail and mobile IM, advertisers are finding it easier and cheaper to reach large target audiences. However, in some countries, anti-spam regulations against bulk messaging (unwanted advertising mobile messages) are proving to be a roadblock for MNOs and mobile advertisers. The following figure compares the four mobile messaging services—SMS, MMS, mobile e-mail and mobile IM—on the basis of four parameters (simplicity, ease of use, cost and handset compatibility) that take both the demand and supply sides into account.

1 Note: John’s Phone is a newly launched mobile phone, which only allows users to make and receive voice calls. Source: www.johnsphones.com

MNOs are making huge investments in high-speed networks, combined with offering discounted or unlimited plans, to push the uptake of messaging services among subscribers.

http://www.johnsphones.com/�



The following tables (Tables 1 to 8) depict regional traffic/users and revenue figures for the four mobile messaging services.

Table 1: SMS Traffic – Regional (In Billion, 2008 – 2015F)2,3

Region SMS Traffic (In Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 526.8 668.6 844.6 897.1 945.8 985.0 1,021.3 1,044.1

Asia Pacific 2,147.4 2,319.1 2,927.7 3,530.2 4,118.5 4,697.5 5,172.1 5,557.7

North America 1,021.0 1,896.4 2,717.6 3,069.3 3,430.6 3,809.7 4,025.8 4,233.6

Latin America 191.0 226.1 286.4 324.2 362.9 401.6 440.5 479.8

Africa and Middle East 86.7 115.4 160.5 194.7 231.4 269.7 309.0 349.8

Total 3,972.9 5,225.6 6,936.8 8,015.5 9,089.3 10,163.4 10,968.7 11,665.0

Source: Portio Research Ltd.

2 Note: This report was written in the fourth quarter of 2010. As such, quoted full year 2010 figures throughout this

report use data collected from the first three quarters of 2010 and estimations for the fourth unavailable quarter. 3 Note: Sum of regional numbers may not equal total due to rounding off errors.

Figure 1: Comparison of Mobile Messaging Services


SMSMMS

Mobile E-mailMobile IM

Simplicity Ease of Use Cost Handset Compatibility



Table 2: SMS Revenue – Regional (In USD Billion, 2008 – 2015F)4

Region SMS Revenue (In USD Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 23.1 27.4 32.4 33.2 33.8 34.9 35.4 35.9

Asia Pacific 40.3 40.1 45.2 51.7 57.4 61.6 64.3 65.8

North America 18.7 20.9 25.0 28.2 31.1 34.1 36.1 36.8

Latin America 4.0 4.5 4.8 5.1 5.4 5.6 5.8 6.0


Total 90.5 98.9 114.6 126.8 137.8 147.9 154.7 159.0


Table 3: MMS Traffic – Regional (In Billion, 2008 – 2015F)5

Region MMS Traffic (In Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 10.7 12.9 15.9 17.1 18.4 19.7 21.0 22.4

Asia Pacific 51.4 116.4 159.2 209.5 267.6 322.1 363.6 396.5

North America 15.5 35.2 67.6 85.8 104.3 120.6 137.1 154.8

Latin America 1.4 1.7 2.2 2.9 3.8 4.6 5.5 6.6


Total 80.5 169.1 248.7 320.5 400.5 474.8 536.8 591.8


4, 5 Note: Sum of regional numbers may not equal total due to rounding off errors.



Table 4: MMS Revenue – Regional (In USD Billion, 2008 – 2015F)6

Region MMS Revenue (In USD Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 6.5 7.8 9.6 10.3 11.0 11.7 12.3 13.0

Asia Pacific 8.3 9.2 10.9 13.2 15.3 18.0 20.2 21.9

North America 5.7 7.5 9.8 12.3 14.8 17.1 19.3 21.7

Latin America 0.7 0.8 1.0 1.1 1.3 1.4 1.5 1.6


Total 21.8 26.3 32.5 38.6 44.5 50.7 56.5 62.0


Table 5: Mobile E-mail Users – Regional (In Million, 2008 – 2015F)7

Region Mobile E-mail Users (In Million)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 57.7 82.3 122.4 176.2 246.9 332.3 433.8 549.5

Asia Pacific 129.7 171.4 238.7 324.3 423.5 543.7 679.1 840.1

North America 47.0 65.3 94.2 132.3 180.0 236.2 301.7 375.6

Latin America 6.2 9.0 15.3 23.1 33.8 46.9 66.7 91.5


Total 245.6 335.1 480.6 669.9 903.3 1,184.3 1,515.2 1,901.4





Table 6: Mobile E-mail Revenue – Regional (In USD Billion, 2008 – 2015F)8

Region Mobile E-mail Revenue (In USD Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 5.8 7.3 10.2 14.2 19.5 24.9 31.1 37.0

Asia Pacific 4.9 6.7 8.6 11.2 14.5 18.4 21.9 25.1

North America 2.8 4.0 5.5 7.4 9.3 11.3 13.5 15.5

Latin America 0.2 0.4 0.5 0.8 1.2 1.6 2.1 2.8


Total 14.0 18.8 25.4 34.4 45.5 57.5 70.4 82.6


Table 7: Mobile IM Users – Regional (In Million, 2008 – 2015F)9

Region Mobile IM Users (In Million)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 39.3 59.9 89.6 127.1 174.0 228.0 290.7 358.2

Asia Pacific 42.3 68.6 117.6 191.4 287.3 411.7 567.8 757.3

North America 28.7 46.3 71.2 102.2 138.9 181.0 230.7 285.8

Latin America 5.9 8.8 15.1 23.3 35.1 50.9 73.3 101.9


Total 123.0 194.3 311.2 470.2 672.7 923.2 1,234.5 1,602.1





Table 8: Mobile IM Revenue – Regional (In USD Billion, 2008 – 2015F)10

Region Mobile IM Revenue (In USD Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 1.2 1.9 2.8 4.1 5.6 7.4 9.5 11.7

Asia Pacific 0.6 0.9 1.5 2.5 3.8 5.5 7.7 10.3

North America 0.7 1.1 1.7 2.3 3.0 3.8 4.5 5.4

Latin America 0.1 0.1 0.2 0.3 0.4 0.6 0.8 1.1


Total 2.8 4.4 6.8 10.0 14.0 18.8 24.5 31.2

Source: Portio Research Ltd. Portio Research has been tracking the worldwide mobile messaging market since 2003. This is the fifth report in our mobile messaging series and includes the following:

• A brief overview of the worldwide mobile market along with the anticipated growth of the subscriber base

• A study of the worldwide mobile messaging market • Detailed analysis of mobile messaging services including SMS, MMS, mobile e-mail

and mobile IM. These sections provide an outlook on the worldwide and regional scenario for these services. Revenue and Traffic/User forecasts are also provided for each of these services. In addition, insights for the major mobile markets have also been given.

• Vendor Survey: Opinion of the mobile messaging vendor community regarding the evolution and future potential of the major messaging services

• Brief profiles of major mobile messaging vendors

• Summary and Conclusions

With our ever-improving research and forecasting methods, there are occasional instances herein where data presented in this new fifth edition, may differ from that published previously. Clear explanations for any such variations have typically been provided where the variation first appears in this new report, and do not necessarily annotate – especially in the case of interlinked data sets – subsequent derivative data points.

10 Note: Sum of regional numbers may not equal total due to rounding off errors.



Chapter 2 Worldwide Mobile Market



Worldwide Mobile Market At end-2010, worldwide mobile subscribers stood at nearly 5.3 billion. This subscriber base is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.9 percent between 2010 and 2015, and is expected to reach nearly 7.4 billion by end-2015. The figure below highlights the growth in worldwide mobile subscriber base during 2008-2015. Please note that in 2010, our data collection has seen extended coverage of markets in the Africa and Middle East (AME) region. With these additional countries, the subscriber base extrapolation for the region, in accordance with our assumptions and model, yielded 570.1 million for 2008 (which is higher than our earlier stated 2008 AME subscriber base figure of 505 million). This change in subscriber base data for the AME region has translated into the revision of a few associated data points for 2008 throughout this report – including the 2008 worldwide mobile subscriber base figure below.

Figure 2: Mobile Subscriber Base – Worldwide (In Million, 2008 – 2015F)11


F – Forecasted

Asia Pacific is the largest mobile market worldwide. At end-2010, the region’s mobile subscriber base stood at over 2.5 billion and is forecast to surpass 3.8 billion by end-2015 – growing at a CAGR of 8.8 percent during 2010-2015. Europe is the second-largest region worldwide in terms of subscribers and had close to 1.1 billion subscribers at end-2010. The next table highlights regional mobile subscriber levels during 2008-2015.


report use data collected from the first three quarters of 2010 and estimations for the fourth unavailable quarter.

4,044.84,655.8

5,254.65,787.1

6,262.56,675.1

7,037.97,351.5

0

2,000

4,000

6,000

8,000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile S

ubsc

riber

Bas

e

(In

Mill

ion)

Year

Asia Pacific is the largest mobile market worldwide. At end-2010, the region’s mobile subscriber base stood at over 2.5 billion and is forecast to surpass 3.8 billion by end-2015.



Table 9: Mobile Subscribers – Regional (In Million, 2008 – 2015F)12

Region Mobile Subscribers (In Million)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 999.7 1,038.3 1,078.6 1,115.1 1,141.3 1,162.4 1,179.4 1,193.1

Asia Pacific 1,733.8 2,132.1 2,521.2 2,856.5 3,156.4 3,416.5 3,643.9 3,838.1

North America 291.9 313.5 334.6 352.1 368.0 382.2 395.0 406.3

Latin America 449.5 494.0 534.8 574.4 608.1 637.9 663.9 686.5

Africa and Middle East 570.1 677.9 785.4 889.0 988.8 1,076.1 1,155.7 1,227.5

Total 4,044.8 4,655.8 5,254.6 5,787.1 6,262.5 6,675.1 7,037.9 7,351.5

Source: Portio Research Ltd. The figure below is the graphical representation of Table 9 above.

Figure 3: Mobile Subscriber Base – Regional (In Million, 2008 – 2015F)


F – Forecasted


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile S

ubsc

riber

s (I

n M

illio

n)

Europe Asia Pacific North America Latin America Africa and Middle East



Asia Pacific’s subscribers constituted 48 percent of the worldwide mobile subscriber base in 2010, while the second largest contribution was Europe with 20.5 percent. The figure below depicts regional contribution to the worldwide mobile subscriber base in 2010.

Between 2010-2015, the percentage contribution of the Asia Pacific and AME regions to the worldwide subscriber base is expected to increase at the expense of the remaining regions, which will see declines during the same period. Asia Pacific will continue to dominate the worldwide mobile market, and in 2015 over 52 percent of worldwide mobile subscribers will originate from this region. The increase in subscriber base share for the Asia Pacific and AME regions can be ascribed to the strong subscriber base growth in the emerging markets.

13 Note: The percentages do not add up to 100 percent because of rounding off errors.

Figure 4: Worldwide Subscriber Base – Regional Contribution (In Percent, 2010)


Figure 5: Worldwide Subscriber Base – Regional Contribution (In Percent, 2015F)13


F – Forecasted

20.5%

48.0% 6.4%

10.2%

14.9%


16.2%

52.2% 5.5%

9.3%

16.7%




Chapter 3 Mobile Messaging Market



Mobile Messaging Market The worldwide mobile messaging market was worth USD 179.2 billion in 2010. This number is forecast to rise to USD 334.7 billion by end-2015, at a CAGR of 13.3 percent between 2010 and 2015. Asia Pacific generated the highest mobile messaging revenue in 2010 and Latin America produced the least. Among the four mobile messaging services scrutinised in this report, SMS yielded the highest revenue for operators in 2010 and mobile IM gathered the least revenue. The figure below depicts worldwide mobile messaging revenue during 2008-2015.

Figure 6: Mobile Messaging Revenue – Worldwide (In USD Billion, 2008 – 2015F)14


F – Forecasted

Falling voice ARPU has led MNOs to focus on mobile data services where messaging services have shown promising growth in the recent past and are anticipated to grow in the future too. In 2009, there was a drop in annual messaging ARPU. This was because of the worldwide economic downturn in which users had restricted their spending. However, the market recovered and annual messaging ARPU stood at USD 36.2 in 2010. This figure is expected to increase in the coming years and reach USD 46.5 by end-2015.



129.1148.4

179.2209.8

241.8274.9

306.0334.7

0

70

140

210

280

350

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile M

essa

ging

Rev

enue

(I

n U

SD

Bill

ion)

Year

Among the four mobile messaging services scrutinised in this report, SMS yielded the highest revenue for operators in 2010 and mobile IM gathered the least revenue.



Figure 7: Annual Messaging ARPU – Worldwide (In USD, 2008 – 2015F)


F – Forecasted

Supported by the biggest subscriber base, Asia Pacific is the largest market for mobile messaging. In 2010, the region generated the highest mobile messaging revenue worldwide with USD 66.2 billion, and regional mobile messaging revenue is forecast to increase to USD 123.2 billion by end-2015. Europe is the second biggest mobile messaging market worldwide in terms of revenue.

Table 10: Mobile Messaging Revenue – Regional (In USD Billion, 2008 – 2015F)15

Region Mobile Messaging Revenue (In USD Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe 36.6 44.4 55.0 61.7 70.0 78.9 88.2 97.6

Asia Pacific 54.0 57.0 66.2 78.6 91.1 103.5 114.1 123.2

North America 27.9 33.5 41.9 50.2 58.2 66.3 73.6 79.4

Latin America 4.9 5.8 6.5 7.3 8.2 9.2 10.2 11.4


Total 129.1 148.4 179.2 209.8 241.8 274.9 306.0 334.7



35.0 34.136.2 38.0

40.142.5

44.6 46.5

0

10

20

30

40

50

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Ann

ual M

essa

ging

AR

PU

(In

US

D )

Year



North America was the third biggest mobile messaging market by accounting for 23.4 percent of worldwide mobile messaging revenue in 2010. Africa and Middle East placed fourth, while Latin America made the least contribution to messaging revenue in 2010 with 3.6 percent.

The figure below highlights regional contributions to worldwide mobile messaging revenue in 2010.

The ranks of regions in 2015, in terms of contributions to worldwide mobile messaging revenue, are expected to be the same as in 2010. Asia Pacific will still be the biggest market and will be followed by Europe and North America.

16 Note: The percentages do not add up to 100 percent because of rounding off errors.

Figure 8: Worldwide Mobile Messaging Revenue – Regional Contribution (In Percent, 2010)16


Figure 9: Worldwide Mobile Messaging Revenue – Regional Contribution (In Percent, 2015F)


F – Forecasted

30.7%

37.0%

23.4%

3.6%5.4%


29.2%

36.8%

23.7%

3.4%6.9%




SMS still rules the mobile messaging market in terms of both traffic and revenue. SMS generated the highest revenue in 2010 and is forecast to continue its dominance over the next five years to 2015. Mobile IM generated the lowest revenue in the mobile messaging market in 2010. The table below highlights the revenue for all mobile messaging services during 2008-2015.

Table 11: Break-out of Mobile Messaging Revenue by Service – Worldwide (In USD Billion, 2008 – 2015F)17

Service Mobile Messaging Revenue (In USD Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SMS 90.5 98.9 114.6 126.8 137.8 147.9 154.7 159.0

MMS 21.8 26.3 32.5 38.6 44.5 50.7 56.5 62.0

Mobile E-mail 14.0 18.8 25.4 34.4 45.5 57.5 70.4 82.6

Mobile IM 2.8 4.4 6.8 10.0 14.0 18.8 24.5 31.2

Total 129.1 148.4 179.2 209.8 241.8 274.9 306.0 334.7

Source: Portio Research Ltd. As discussed earlier, SMS made the highest contribution to worldwide mobile messaging revenue in 2010 with a 63.9 percent share, followed by MMS with 18.1 percent. Mobile e-mail revenue made up 14.2 percent, and mobile IM’s 2010 share was just 3.8 percent. The next figure shows the break-out of 2010 worldwide mobile messaging revenue by service.

17 Note: Sum of individual messaging services may not equal total due to rounding off errors.

SMS generated the highest revenue in 2010 and is forecast to continue its dominance over the next five years to 2015.



In 2015, SMS will continue to lead other messaging services, albeit with its share of worldwide mobile messaging revenue depleted from 63.9 percent in 2010 to 47.5 percent. All other featured mobile messaging services are expected to increase their contribution to worldwide mobile messaging revenue during the 2010-2015 period.

Figure 10: Worldwide Mobile Messaging Revenue Break-out (In Percent, 2010)


Figure 11: Worldwide Mobile Messaging Revenue Break-out (In Percent, 2015F)


F – Forecasted

63.9% 18.1%

14.2%

3.8%

SMS MMS Mobile E-mail Mobile IM

47.5%

18.5%

24.7%

9.3%




Chapter 4 SMS



SMS Short Messaging Service, simply known as SMS, has established itself as the simplest, easiest and most economical means of personalised one-to-one communication – with SMS volume growth statistics attesting to its popularity. SMS is the single most successful mobile data service in the world, both in terms of traffic and revenue. As a result, in the highly competitive mobile data market, SMS enjoys the largest market share and is the clear market leader. Even as the whole world moves towards other data services (including mobile broadband, e-mail and IM) at an accelerated pace, the role of SMS cannot yet be undermined. History of SMS

The first SMS was sent on the Vodafone UK network from a PC to a mobile handset in December 1992, but the first P2P (Peer-To-Peer) SMS, from one mobile handset to another, was sent by a Nokia engineer in Finland in 1993. SMS has witnessed phenomenal growth, leaving behind all other mobile data services. From just 146.4 billion SMS in 2000, annual traffic volumes have risen to over 6.9 trillion SMS at end-2010. The table below shows the growth of SMS from 2000 to 2015.

Table 12: Growth of SMS – Worldwide (In Billion, 2000 – 2015F)18

Year SMS Traffic (In Billion) Year SMS Traffic

(In Billion)

2000 146.4 2008 3,972.9

2001 218.0 2009 5,225.6

2002 366.0 2010 6,936.8

2003 450.0 2011F 8,015.5

2004 760.6 2012F 9,089.3

2005 1,056.4 2013F 10,163.4

2006 1,662.4 2014F 10,968.7

2007 2,778.0 2015F 11,665.0

Source: Portio Research Ltd. In 2010, worldwide SMS revenue stood at a staggering USD 114.6 billion and is forecast to grow at a CAGR of 6.8 percent to reach USD 159 billion by end-2015. However, it is expected that post-2011, the growth of worldwide SMS revenue will slow down due to the falling prices of SMS and the growing popularity of other data services such as mobile broadband, e-mail and IM. With close to a 40 percent contribution to worldwide SMS revenue in 2010, Asia Pacific continued its leading position worldwide in terms of SMS revenue. The next figure shows worldwide SMS revenue during 2008-2015.



SMS is the single most successful mobile data service in the world, both in terms of traffic and revenue.



Figure 12: SMS Revenue – Worldwide (In USD Billion, 2008 – 2015F)


F – Forecasted

The initial growth of SMS traffic came from the P2P segment. With the growing popularity of services such as mobile banking, mobile payments, mobile ticketing, mobile voting and SMS advertising, the second phase of SMS traffic proliferation will be led by the A2P segment. During 2010-2015, worldwide A2P (Application-To-Peer) SMS revenue is expected to grow at a CAGR of 17.8 percent, whereas revenue from P2P SMS is forecast to grow at a CAGR of only 1.3 percent. With reference to our previous edition of this report, “Mobile Messaging Futures 2010-2014”, we would like to highlight that SMS revenues for the forecast period 2011-2015 have been increased from these earlier stated numbers, even though SMS traffic forecasts have been revised down for the same period. The primary reason behind the change is the growing popularity of the A2P SMS segment. A2P SMS services witnessed strong growth in 2010 and buoyed up the effective cost per SMS. Use of short codes to deliver bulk messages to a large audience is becoming common among enterprises, brands, corporations and public agencies. Also, MNOs worldwide are placing more emphasis on the A2P SMS segment. Operators are taking initiatives to launch and promote innovative A2P services to curb falling P2P SMS prices; this is expected to increase SMS revenues. Our definition of A2P SMS revenue covers only MNOs’ share in the complete A2P SMS revenue pie. By MNOs’ share we mean the revenue earned by MNOs from subscribers through A2P SMS, minus the share of other stakeholders, which could be content owners or content providers. For example, if a subscriber sends a premium SMS charged at USD ‘X’ to download some content from the provider’s website, then the carrier MNO gets USD ‘Y’— a fixed percentage of USD ‘X’ as per its agreement with the content owner/provider. A2P SMS revenue given in this report takes USD ‘Y’ into account and not USD ‘X’.

90.598.9

114.6126.8

137.8147.9

154.7 159.0

0

30

60

90

120

150

180

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

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During 2010-2015, worldwide A2P (Application-To-Peer) SMS revenue is expected to grow at a CAGR of 17.8 percent, whereas revenue from P2P SMS is forecast to grow at a CAGR of only 1.3 percent.



The following figure shows the growth pattern of worldwide P2P and A2P SMS revenues from 2008-2015.

Over 6.9 trillion SMS were exchanged worldwide in 2010, and total SMS traffic is expected to reach more than 11.6 trillion by end-2015—a CAGR of nearly 11 percent. The following figure shows worldwide SMS traffic from 2008-2015.

Figure 14: SMS Traffic – Worldwide (In Billion, 2008 – 2015F)


F – Forecasted

Worldwide A2P SMS traffic is expected to grow at a CAGR of 19 percent during 2010-2015, while the corresponding growth rate for P2P SMS is 9.7 percent.

19 Note: The sum of A2P and P2P SMS revenues may not add up to total SMS revenue because of rounding off errors.

3,972.95,225.6

6,936.88,015.5

9,089.310,163.4

10,968.711,665.0

0

3,000

6,000

9,000

12,000

15,000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S T

raffi

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(In

Bill

ion)

Year

Figure 13: P2P & A2P SMS Revenue – Worldwide (In USD Billion, 2008 – 2015F)19


F – Forecasted

68.173.4

83.989.5 93.6 95.5 94.2

89.4

22.4 25.530.7

37.444.2

52.360.4

69.6

0

40

80

120

2008 2009 2010 2011F 2012F 2013F 29014F 2015F

SM

S R

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US

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Year

P2P SMS Revenue A2P SMS Revenue



Our definition of A2P SMS includes every SMS that either originates from, or terminates to, an application. Both categories of SMS—sent from a subscriber to an application and sent from an application to a subscriber—are counted in A2P SMS traffic. The figure below highlights the P2P and A2P split of worldwide SMS traffic during 2008-2015.

A2P SMS traffic growth has outpaced P2P SMS growth. With the kind of reach (virtually every mobile is capable of sending and receiving SMS; John’s Phone being one exception) and popularity SMS enjoys worldwide, MNOs are taking initiatives to launch and promote SMS-based services, such as banking, social networking, voting, ticketing, payments, etc., which in turn has proliferated the growth of the A2P SMS segment. Also, the phenomenal growth of SMS has led to SMS marketing becoming one of the most effective methods of advertising. More and more companies have identified SMS as a powerful and impactful tool to reach their target audiences, and thus have adopted SMS marketing as part of their promotional mix. The launch of advanced networks such as 3G, LTE and WiMAX has propelled the growth of mobile broadband, which in turn has led to a higher adoption of e-mail and IM and has marginally suppressed the growth of P2P SMS traffic. The growing traffic of A2P SMS has resulted in increased SMS revenues, and thus equilibrates falling P2P SMS charges.

20 Note: Sum of P2P and A2P SMS traffic may not add up to total SMS traffic due to rounding off errors.

Figure 15: P2P & A2P SMS Traffic – Worldwide (In Billion, 2008 – 2015F)20


F – Forecasted

The phenomenal growth of SMS has led to SMS marketing becoming one of the most effective methods of advertising.

3,535.44,633.7

6,123.37,031.1

7,900.58,747.7

9,301.8 9,731.0

437.5 591.9 813.5 984.4 1,188.8 1,415.7 1,666.9 1,934.0

0

3,000

6,000

9,000

12,000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

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P2P SMS Traffic A2P SMS Traffic



The table below highlights the regional break-out of SMS traffic in A2P and P2P categories during 2008-2015.

Table 13: SMS Traffic Break-out – Regional (In Billion, 2008 – 2015F)21

Region SMS Traffic (In Billion)

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Europe P2P 458.4 582.1 730.5 769.0 800.1 821.0 837.7 841.1

A2P 68.5 86.5 114.1 128.1 145.8 164.0 183.6 203.0

Asia Pacific

P2P 1,932.6 2,084.9 2,627.6 3,160.4 3,669.8 4,164.2 4,520.6 4,781.0

A2P 214.7 234.2 300.1 369.8 448.7 533.3 651.5 776.7

North America

P2P 894.5 1,659.5 2,364.0 2,637.9 2,902.7 3,170.2 3,289.3 3,393.8

A2P 126.5 236.9 353.6 431.3 527.9 639.4 736.5 839.8

Latin America

P2P 171.9 203.4 257.2 290.1 322.6 354.4 384.9 414.3

A2P 19.1 22.7 29.2 34.1 40.3 47.2 55.6 65.5

Africa and Middle East

P2P 78.0 103.8 144.1 173.8 205.4 237.9 269.3 300.7

A2P 8.7 11.5 16.5 20.9 26.0 31.9 39.8 49.1

Total P2P 3,535.4 4,633.7 6,123.3 7,031.1 7,900.5 8,747.7 9,301.8 9,731.0

A2P 437.5 591.9 813.5 984.4 1,188.8 1,415.7 1,666.9 1,934.0

Source: Portio Research Ltd. Being made up of countries with large subscriber bases and heavy texting tendencies, including China, the Philippines, Indonesia, India and Pakistan, allows Asia Pacific to still dominate the worldwide P2P SMS traffic market. In 2010, Asia Pacific contributed 42.9 percent to worldwide P2P SMS traffic, a figure which is expected to increase to 49.1 percent by 2015. With the huge popularity of SMS-based services, North America dominates the worldwide A2P SMS traffic market. In 2010, North America’s A2P SMS traffic stood at nearly 354 billion and is expected to reach almost 840 billion by end-2015, growing at a CAGR of 18.9 percent. Africa and Middle East will show the highest regional growth worldwide, both in terms of A2P and P2P SMS traffic during 2010-2015, followed by the Asia Pacific region.


In 2010, Asia Pacific contributed 42.9 percent to worldwide P2P SMS traffic, a figure which is expected to increase to 49.1 percent by 2015.



The following figure highlights regional contribution to worldwide SMS traffic in 2010 and 2015.

Figure 16: SMS Traffic Contribution – Regional (In Percent, 2010 & 2015F)22


F – Forecasted

Asia Pacific rules the worldwide SMS market, both in terms of traffic and revenues. Although North America is expected to lose share in worldwide SMS traffic, its share in worldwide SMS revenue is expected to increase. North America is forecast to outperform Europe in terms of SMS revenue generation in the next few years; primarily due to the growing popularity of the A2P SMS segment and the high growth in data ARPU.

Figure 17: SMS Revenue Contribution – Regional (In Percent, 2010 & 2015F)


F – Forecasted

22 Note: The decline in SMS traffic contribution is small for Latin America during 2010-2015 and does not get

reflected as it is rounded to one decimal place.

12.2

42.239.2

4.1 2.39.0

47.6

36.3

4.1 3.0

0

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2010 2015F

28.2

39.5

21.8

4.2 6.3

22.6

41.4

23.1

3.89.1

0

10

20

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40

50


SM

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(I

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2010 2015F

Although North America is expected to lose share in worldwide SMS traffic, its share in worldwide SMS revenue is expected to increase.



In 2010, an average subscriber sent approximately 117 text messages per month. This number is forecast to surpass 135 text messages by end-2015. The average SMS use per subscriber for the forecasted period 2011-2015 is lower than our previously reported numbers, primarily because the growth in subscriber base surpassed our expectations, along with slowing SMS traffic.

Worldwide SMS traffic is forecast to grow at a CAGR of 11 percent during 2010-2015, with Asia Pacific and Africa and Middle East expecting to see a growth rate above this worldwide rate. Latin America is projected to see a growth rate of 10.9 percent during the same period. Africa and Middle East will lead in terms of regional SMS traffic growth between 2010–2015, with a CAGR of almost 17 percent.

Figure 18: SMS Use Per Subscriber Per Month – Worldwide (2008 – 2015F)


F – Forecasted

Worldwide SMS traffic is forecast to grow at a CAGR of 11 percent during 2010-2015, with Asia Pacific and Africa and Middle East expecting to see a growth rate above this worldwide rate.

Figure 19: SMS Traffic Growth by Region (In Percent, 2010 – 2015F)


F – Forecasted

89.8100.1

116.7 121.0 125.7 130.9 133.3 135.1

0

40

80

120

160

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S U

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Per

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4.3

13.7

9.310.9

16.9

0

2

4

6

8

10

12

14

16

18


CA

GR

(In

Per

cent

)

Region

CAGR 11.0%

CAGR Worldwide = 11.0 %



Europe Europe’s SMS traffic stood at 844.6 billion in 2010 and is now forecast to cross 1 trillion by end-2014. In 2010, Europe’s contribution to worldwide SMS traffic was approximately 12.2 percent, lower than Asia Pacific and North America. Total European SMS traffic is projected to grow at a CAGR of 4.3 percent during 2010-2015 – the lowest in the worldwide SMS market. Europe is an advanced mobile market where consumers are typically enthusiastic about, and are always ready to try, newer and sophisticated technologies. Hence users are choosing advanced modes of communication such as mobile IM and social networking etc. over SMS. This has led to a tremendous decline in the P2P segment. In 2010, Europe’s contribution to worldwide P2P SMS traffic stood at just 11.9 percent, and this is forecast to decline to 8.6 percent by 2015. The European A2P SMS segment, although increasing in traffic, is witnessing a decline in the speed of growth as people are now more engaged with the mobile Internet. Mobile adverts through new communication channels are also becoming popular. In a nutshell, we can say that the European SMS market has now reached maturity. For these reasons, the forecast for Europe’s SMS traffic for 2011-2015 is not as aggressive as that published previously in the fourth edition of this report. European SMS traffic growth is expected to be led by Turkey, the UK, France, Italy and Poland. In 2010, Turkey generated the highest SMS traffic in Europe, followed by the UK and France. The launch of new and attractive SMS-based services led to an upsurge in SMS traffic in these countries.

Figure 20: SMS Traffic – Europe (In Billion, 2008 – 2015F)


F – Forecasted

In 2010, the European region generated the second highest SMS revenues worldwide, after Asia Pacific. Although Europe’s data ARPU was lower than North America’s data ARPU in 2010, Europe generated higher SMS revenues. This can be attributed to its huge subscriber base, more than three times that of North America. Between 2010-2015, Europe’s SMS revenue is expected to grow at a CAGR of approximately 2 percent – the lowest among all regions.

526.8

668.6

844.6897.1

945.8 985.0 1,021.3 1,044.1

0

400

800

1,200

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S T

raffi

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(In

Bill

ion)

Year

The European A2P SMS segment, although increasing in traffic, is witnessing a decline in the speed of growth as people are now more engaged with the mobile Internet.



With reference to our previous edition of this report, “Mobile Messaging Futures 2010-2014”, we would like to highlight that SMS revenues for the forecast period 2011-2015 have been increased from these earlier stated numbers even though SMS traffic forecasts have cooled for the same period. The primary reason behind the change is the growing popularity of the A2P SMS segment, which has buoyed up the effective cost per SMS. The share of the A2P SMS segment in the region’s SMS traffic is increasing, even though the A2P segment is witnessing a decline in the speed of growth. The figure below highlights SMS revenue in Europe during 2008-2015.

Figure 21: SMS Revenue – Europe (In USD Billion, 2008 – 2015F)


F – Forecasted

In 2010, an average European subscriber sent approximately 67 SMS per month; this is expected to increase to over 73 SMS per month by end-2015. Countries including France, Sweden, Turkey and the UK showed stupendous growth in terms of monthly SMS use per subscriber during 2008-2010, owing to fierce price wars among operators, bundle SMS offerings and promotion of SMS-based services. On the contrary, Spain, Portugal, Ukraine and Croatia were among the countries that witnessed a decline in monthly SMS use per subscriber over the same period. The decline can be attributed to changes introduced by regulators in the respective countries, the popularity of other services such as broadband, e-mail and IM, and slower growth in SMS traffic compared to the subscriber base in the country. Even though markets such as Italy, Poland and Russia recorded an increase in SMS traffic during 2008-2010, they are approaching saturation in terms of average SMS use.

23.1

27.4

32.4 33.2 33.8 34.9 35.4 35.9

0

10

20

30

40

2008 2009 2010 2011 F 2012 F 2013 F 2014 F 2015 F

SM

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In 2010, an average European subscriber sent approximately 67 SMS per month; this is expected to increase to over 73 SMS per month by end-2015.



The following figure depicts SMS use per subscriber per month for Europe during 2008-2015.

Figure 22: SMS Use Per Subscriber Per Month – Europe (2008 – 2015F)


F – Forecasted

45.9

54.7

66.5 68.2 69.9 71.3 72.7 73.3

0

30

60

90

2008 2009 2010 2011 F 2012 F 2013 F 2014 F 2015 F

SM

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Per

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Key Geographical Markets

Austria

Belgium

Figure 23: SMS Traffic and SMS Use per Subscriber per Month – Austria (2008 – 2010)


4.75.8

6.4

38.543.9 44.9

0

20

40

60

0

2

4

6

8

2008 2009 2010S

MS

use

per

Sub

scrib

er p

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Mon

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SMS Traffic SMS per Subscriber per Month

SMS traffic growth slowed in 2010 compared to 2009; in 2010, SMS traffic grew by over 11 percent, whereas growth in 2009 was 21.7 percent

Consequentially, the growth in monthly SMS use per subscriber reduced to just over 2 percent in 2010

Austria witnessed a sharp increase in SMS traffic during Q4 2009, a growth of over 15 percent quarter on quarter

SMS traffic in Belgium reached 21 billion for 2010, an increase of 42 percent from nearly 15 billion in 2009

Monthly SMS use per subscriber increased by nearly 40 percent in 2010, reaching 140 SMS per user per month

Proximus, the largest operator in the country, generated nearly USD 219.5 million from SMS in the first half of 2010 and this formed 66 percent of the operator’s data revenue in the same period



Croatia

Figure 24: SMS Traffic and SMS Use per Subscriber per Month – Belgium (2008 – 2010)


Figure 25: SMS Traffic and SMS Use per Subscriber per Month – Croatia (2008 – 2010)


8.0

14.8

21.058.2

100.2

140.0

0

20

40

60

80

100

120

140

160

0

4

8

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2008 2009 2010

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3.7 3.5 3.1

57.4

48.6

42.1

0

13

26

39

52

65

0

1

2

3

4

5

2008 2009 2010

SM

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In 2010, Croatia’s SMS traffic stood at 3.1 billion, nearly 10 percent less than that in 2009

Consequently, average monthly SMS use per subscriber witnessed a further dip of nearly 13 percent in 2010

Flat-rate calling plans, the introduction of a 6 percent tax on revenues generated from messaging services in August 2009, and the promotion of mobile Internet data and content services, along with an uptake of smartphones, has suppressed the popularity of SMS. As a result, the country witnessed a decline in SMS traffic during 2008-2010.

SMS traffic in Q2 2010 stood at 749 million SMS, whereas in Q2 2009 the traffic amounted to 908 million – a decline of 17.5 percent



Czech Republic

Denmark

Figure 26: SMS Traffic and SMS Use per Subscriber per Month – Czech Republic (2008 – 2010)


8.79.6

10.6

54.158.8

64.5

0

14

28

42

56

70

0

2

4

6

8

10

12

2008 2009 2010

SM

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The total SMS volume and SMS use per subscriber per month grew in 2010 The growth can be attributed to MNOs’ initiatives such as Vodafone’s monthly bundle

SMS pack which allows its subscribers to send 100 free SMS across any network in the Czech Republic, and O2’s tariff plan that allows subscribers to send free SMS within the network

In Q1 2010, T-Mobile successfully tested an SMS advertising promotion format wherein promotional SMS were sent to subscribers based on their locations and profiles. With a positive response from 22 percent of contacted subscribers, T-Mobile launched SMS advertising services in the country, and other operators followed the trend. The growing popularity of SMS adverts in the country has propelled the uptake of SMS.

Denmark witnessed steady y-o-y growth of 3.6 percent in SMS volumes in 2010 SMS traffic stood at 13.5 billion in 2010, whereas in 2009 the traffic amounted to 13.1

billion However, monthly SMS use per subscriber decreased from 154 SMS in 2009 to 147.7

SMS by end-2010, primarily because of slower growth in SMS traffic compared to the subscriber base



Finland

Figure 27: SMS Traffic and SMS Use per Subscriber per Month – Denmark (2008 – 2010)


Figure 28: SMS Traffic and SMS Use per Subscriber per Month – Finland (2008 – 2010)


12.6 13.1 13.5

161.4154.0 147.7

0

30

60

90

120

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180

0

3

6

9

12

15

18

2008 2009 2010

SM

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3.6 3.8 4.0

46.843.4

41.1

0

10

20

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2

4

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2008 2009 2010

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After a phase of high growth in SMS traffic during 2003-2008, growth in SMS traffic has been moderate during 2008-2010; this could be attributed to a decline in SMS use per subscriber due to the growing popularity of other messaging services

The Finnish mobile market has developed a large variety of services based on SMS. These include SMS loans, SMS tickets (transportation), SMS controlled television games, SMS quizzes, SMS-based banking solutions, SMS-enabled vending machines and SMS chat. The increasing popularity of these services (especially mobile ticketing) is offsetting the decline in SMS use per subscriber.



France

Figure 29: SMS Traffic and SMS Use per Subscriber per Month – France (2008 – 2010)


35.0

63.4

104.151.5

89.9

142.3

0

40

80

120

160

0

40

80

120

2008 2009 2010

SM

S u

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France is witnessing continued growth in SMS traffic; SMS volumes increased y-o-y by 64.2 percent in 2010

SMS use per subscriber per month increased to over 142 SMS in 2010 from just under 90 SMS in 2009

SMS traffic in H1 2010 stood at 46.5 billion, whereas in H1 2009 traffic amounted to 28.4 billion



Germany

Figure 30: SMS Traffic and SMS Use per Subscriber per Month – Germany (2008 – 2010)


29.134.4

40.7

23.726.6

31.2

0

7

14

21

28

35

0

10

20

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2008 2009 2010

SM

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SMS traffic in Germany reached 40.7 billion in 2010, up from 34.4 billion in 2009 E-Plus, the country’s third largest operator introduced low cost voice and data plans in

2010, which led to fierce price wars among MNOs. This competitive pricing resulted in higher uptake in the German SMS market.



Greece

Figure 31: SMS Traffic and SMS Use per Subscriber per Month – Greece (2008 – 2010)


4.0

7.6

10.119.0

37.1

51.4

0

15

30

45

60

0

2

4

6

8

10

12

2008 2009 2010

SM

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Year


With an increase of 3.6 billion in SMS volumes, Greece witnessed an upsurge in SMS Traffic in 2009

SMS traffic growth slowed in 2010 compared to 2009; in 2010, SMS traffic grew y-o-y by 33 percent, whereas growth in 2009 was over 90 percent

Consequentially, the y-o-y growth in monthly SMS use per subscriber reduced to 38.4 percent in 2010, compared to over 95 percent growth in 2009



Ireland

Figure 32: SMS Traffic and SMS Use per Subscriber per Month – Ireland (2008 – 2010)


10.211.9 12.0

162.8

185.1 183.0

0

50

100

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0

2

4

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2008 2009 2010

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SMS traffic in the first half of 2010 stood at 6.1 billion, compared to 5.9 billion in the first half of 2009

After a substantial increase in SMS use per subscriber per month in 2009, Ireland witnessed a dip in average monthly SMS use per subscriber in 2010; this could be attributed to slower growth of 0.8 percent in SMS traffic in 2010, compared to nearly 17 percent growth in 2009



Italy

23 Note: This is P2P traffic only.

Figure 33: SMS Traffic and SMS Use per Subscriber per Month – Italy (2008 – 2010)23


60.067.1

75.1

57.862.8

69.6

0

20

40

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80

0

30

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2008 2009 2010S

MS

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Annual SMS traffic grew by 8 billion in 2010 Several discount offers, such as Telecom Italia’s unlimited on-net (within the same

network) SMS offer at EUR 1 (USD 1.32) per week and Vodafone’s ‘1 cent Messaggi‘ offer at 1 cent (USD 0.0132) per on-net SMS, have pushed the use of SMS and increased on-net SMS traffic

As per recommendations from the Italian Communication Authority – AGCOM, Italian operators applied a cap of EUR 0.11 (USD 0.15) on SMS prices (VAT not included). This partly contributed to increased SMS uptake in 2010.



Lithuania

24 Note: Lithuania witnessed an increase in SMS use per subscriber per month in 2009, primarily due to the

regulator’s mandate of exclusion of inactive users from the subscriber count during the same period.

Figure 34: SMS Traffic and SMS Use per Subscriber per Month – Lithuania (2008 – 2010)24


9.4 9.2 9.0

156.0 162.3 157.0

0

40

80

120

160

200

0

2

4

6

8

10

12

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

c (I

n B

illio

n)

Year


The SMS volume generated in Lithuania continued its downward trend in 2010, with a further dip of 2.8 percent y-o-y in 2010

During Q2 2010, SMS traffic witnessed a q-o-q decline of 10 percent Average monthly SMS use decreased from nearly 162.3 in 2009 to 157 in 2010 Lithuanian operators are trying to reverse the downward SMS traffic trend by offering

attractive deals to their subscribers



Montenegro

Figure 35: SMS Traffic and SMS Use per Subscriber per Month – Montenegro (2008 – 2010)


1.2 1.3 1.3

83.9 81.2 81.8

0

25

50

75

100

0.0

0.5

1.0

1.5

2.0

2008 2009 2010S

MS

use

per

Sub

scrib

er p

er

Mon

th

SM

S T

raffi

c (I

n B

illio

n)

Year


Nearly 106 million SMS were sent in Montenegro in September 2010; whereas SMS traffic amounted to 98 million in September 2009

In September 2010, the shares of the three MNOs — M:Tel, ProMonte and T-Mobile — for the SMS traffic generated stood at 38.6 percent, 33.3 percent and 28.1 percent, respectively

SMS use per subscriber witnessed positive growth in 2010, compared to a decline in 2009

Montenegro was the first country worldwide to make use of text messaging for reporting election results



The Netherlands

Norway

Figure 36: SMS Traffic and SMS Use per Subscriber per Month – The Netherlands (2008 – 2010)


5.9

9.111.5

25.8

38.4

48.6

0

20

40

60

0

2

4

6

8

10

12

14

2008 2009 2010 SM

S u

se p

er S

ubsc

riber

per

Mon

th

SM

S T

raffi

c (I

n B

illio

n)

Year


In recent years, Dutch operators have kept SMS prices fairly competitive and this has helped in the sustained growth of SMS use per subscriber

Such efforts resulted in an increase of 27 percent in SMS traffic in 2010 from 2009 SMS use per subscriber per month reached nearly 49 SMS in 2010, up from 38.4 SMS

in 2009

SMS traffic reached 6.8 billion in 2010, up by nearly 4 percent from the 2009 figure Revenues from SMS have been decreasing in the country, even though SMS traffic

has increased over the years SMS offers, such as Telenor’s SuperSMS, which includes 2,000 SMS at a monthly

price of NOK 199 (USD 32.92), and NetCom’s SMSparkle, which includes 2,000 SMS at a monthly price of NOK 200 (USD 33.09), have boosted the growth of SMS traffic in the country

SMS accounted for nearly 93.6 percent of the total messages sent in H1 2010 In 2009, 83.5 percent of the total SMS messages were sent by residential customers



Poland

Figure 37: SMS Traffic and SMS Use per Subscriber per Month – Norway (2008 – 2010)


Figure 38: SMS Traffic and SMS Use per Subscriber per Month – Poland (2008 – 2010)


6.3 6.5 6.8

101.9113.3 108.9

0

20

40

60

80

100

120

140

0

2

4

6

8

10

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

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n B

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n)

Year


45.1 46.7 48.4

88.1 87.9 89.5

0

20

40

60

80

100

0

10

20

30

40

50

60

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

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n B

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n)

Year


SMS traffic in 2010 stood at 48.4 billion, compared to 46.7 billion in 2009 SMS use per subscriber per month rose to 89.5 SMS in 2010 from nearly 88 SMS in

2009 SMS traffic growth has slowed down in the country owing to a decrease in the prices of

voice calls, which has in turn led to an increase in average call duration



Portugal

Figure 39: SMS Traffic and SMS Use per Subscriber per Month – Portugal (2008 – 2010)


23.325.7 26.3

132.3 135.3 130.8

0

30

60

90

120

150

0

5

10

15

20

25

30

2008 2009 2010

SM

S u

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er S

ubsc

riber

per

M

onth

SM

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n B

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n)

Year


Portugal’s SMS traffic grew by a mere 2 percent in 2010 from the previous year SMS use per subscriber per month declined by nearly 5 SMS in 2010 over 2009 SMS use is pushed by MNOs’ efforts, such as the incorporation of icons in text

messages and the launch of SMS location based services which enables a user to find a location on the map and add it to an SMS; the growing popularity of mobile payments has also assisted the increase of SMS traffic in the country

However, the introduction of free on-net (calls within the same network) call plans have resulted in slower growth of SMS traffic compared to previous years



Romania

25 Note: These numbers do not include roaming SMS traffic.

Figure 40: SMS Traffic and SMS Use per Subscriber per Month – Romania (2008 – 2010)25


4.3

7.4

12.914.1

21.5

36.0

0

10

20

30

40

0

2

4

6

8

10

12

14

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

c (I

n B

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n)

Year


SMS traffic saw y-o-y growth of nearly 73 percent in 2010, reaching 12.9 billion Monthly SMS use per subscriber grew from 21.5 SMS in 2009 to 36 SMS by end-2010 The percentage of on-net SMS traffic (in total traffic) has been increasing in the past

few years – it accounted for 90 percent of total SMS traffic in 2009 compared to nearly 70 percent in 2006



Russia

Figure 41: SMS Traffic and SMS Use per Subscriber per Month – Russia (2008 – 2010)


22.0 24.226.6

10.4 10.2 10.4

0

6

12

0

5

10

15

20

25

30

2008 2009 2010

SM

S u

se p

er S

ubsc

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per

M

onth

SM

S T

raffi

c (I

n B

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Year


SMS traffic rose by 10 percent from 2009 to reach 26.6 billion in 2010 Monthly SMS use per subscriber witnessed an increase from 10.2 SMS in 2009 to 10.4

SMS in 2010 MTS, Russia’s largest operator, launched a money transfer service in 2010 that is

expected to boost the SMS market in the coming years



Serbia

Figure 42: SMS Traffic and SMS Use per Subscriber per Month – Serbia (2008 – 2010)


7.010.2

14.9

63.8

87.3

120.3

0

30

60

90

120

150

0.0

4.0

8.0

12.0

16.0

20.0

2008 2009 2010S

MS

use

per

Sub

scrib

er p

er

Mon

th

SM

S T

raffi

c (I

n B

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Year


SMS traffic in Serbia grew by 46 percent in 2010 With offerings such as safe SMS (an encrypted text messaging solution which allows

users to secure both text messages stored on their phone and messages being transmitted over the air by attaching a code to the SMS), signature in the SMS, and “out-of-office” auto reply, operators have been able to make SMS services more popular among users

With y-o-y growth of nearly 38 percent in 2010, monthly SMS use per subscriber continues to rise



Slovenia26

26 Source: Statistical Office of the Republic of Slovenia

Figure 43: SMS Traffic and SMS Use per Subscriber per Month – Slovenia (2008 – 2010)


0.7

1.0

1.428.4

40.1

56.2

0

13

26

39

52

65

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

c (I

n B

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Year


Annual SMS traffic reached 1.4 billion by end-2010, recording y-o-y growth of nearly 43 percent

In Q2 2010, the country’s SMS traffic stood at 309 million – an increase of 8 million over the previous quarter

Over 90 percent of the SMS in Q2 2010 were generated by “household members”24



Spain

Figure 44: SMS Traffic and SMS Use per Subscriber per Month – Spain (2008 – 2010)


27.9

19.1 17.4

45.4

29.926.0

0

8

16

24

32

40

48

0

8

16

24

32

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

c (I

n B

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n)

Year


Spain has witnessed a drop in SMS traffic during 2008-2010 In 2010, SMS traffic experienced a y-o-y decline of nearly 9 percent; primarily due to a

10 percent fall in on-net (within the same network) SMS traffic The following factors are attributing to the decline in SMS traffic in Spain:

o Popularity of other mobile services such as mobile broadband, e-mail and IM, along with reduced call rates

o In 2009, Spain’s regulator introduced a change in issuance of short codes to companies wishing to use or provide SMS-based services to their target audience. Earlier, operators used to rent out short codes to companies without any restrictions, but now the regulator has taken control for allocation approval and has limited the issuance to just 50 companies, thus reducing the premium SMS traffic significantly in the country.

o In part, a lack of ‘Superconcursos’ (premium SMS-based contests) in H1 2010 compared to H1 2009 also led to the drop in Premium SMS traffic



Sweden

Figure 45: SMS Traffic and SMS Use per Subscriber per Month – Sweden (2008 – 2010)


7.5

17.2

30.1

57.5

123.3

203.5

0

50

100

150

200

250

0

7

14

21

28

35

2008 2009 2010

SM

S u

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M

onth

SM

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Year


Sweden is among the leading markets in terms of SMS use per subscriber per month Massive growth in SMS traffic can be attributed to the default inclusion of a large

number of SMS services in monthly charges and the introduction of a price ceiling for SMS on international roaming

The growth of SMS per subscriber per month has been faster in comparison to other Scandinavian countries

In 2010, the average SMS use by a subscriber in Sweden was nearly 204 SMS per month, representing y-o-y growth of 65 percent



Switzerland

Figure 46: SMS Traffic and SMS Use per Subscriber per Month – Switzerland (2008 – 2010)


4.35.7

7.5

42.8

53.2

68.0

0

9

18

27

36

45

54

63

72

0

2

4

6

8

10

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

c (I

n B

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n)

Year


SMS traffic in 2010 increased by 1.8 billion from 2009 SMS use per subscriber per month increased by nearly 28 percent in 2010 compared

to 2009 Swisscom, Switzerland’s largest MNO with over 62 percent market share, witnessed

694 million SMS being exchanged by its subscribers in Q2 2010 – an increase of 16 million on the previous quarter



Turkey

The UK

Figure 47: SMS Traffic and SMS Use per Subscriber per Month – Turkey (2008 – 2010)


77.8

127.5156.4101.8

165.0

200.9

0

40

80

120

160

200

240

0

30

60

90

120

150

180

2008 2009 2010

SM

S u

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M

onth

SM

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n B

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Year


Annual SMS traffic increased by 28 percent in 2010 over 2009 Fierce price competition among operators has led to a fall in SMS charges, which in

turn has resulted in a surge in SMS traffic in 2010 Sectors such as financial services, healthcare, government agencies, hospitality, retail,

services, entertainment, mobile advertisement and transport have been the pioneers in adopting A2P messaging for notifications and customer services

Turkey is the leading European country in terms of generation of SMS volumes Annual SMS traffic increased by nearly 23 percent y-o-y in 2010 Turkcell’s share of SMS traffic increased from 47 percent in Q1 2010 to approximately

50 percent in Q2 2010, whereas Avea’s share decreased from 25 percent in Q1 2010 to 24 percent in Q2 2010

Vodafone’s share of SMS traffic declined from 28 percent in Q1 2010 to 26 percent in Q2 2010



Ukraine

Figure 48: SMS Traffic and SMS Use per Subscriber per Month – The UK (2008 – 2010)


Figure 49: SMS Traffic and SMS Use per Subscriber per Month – Ukraine (2008 – 2010)


78.996.8

124.3

87.4

102.6

127.0

0

20

40

60

80

100

120

140

0

20

40

60

80

100

120

140

2008 2009 2010

SM

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Year


13.111.5 11.4

20.6

17.4 17.2

0

5

10

15

20

25

0

4

8

12

16

2008 2009 2010

SM

S u

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Year


Annual SMS traffic continued to decline in 2010; it reached 11.4 billion SMS in 2010 from 11.5 billion SMS in 2009

In Q2 2010, subscribers of Kyivstar, the country’s largest operator with almost 40 percent market share, sent nearly 1.2 billion SMS against 1.3 billion in Q1 2010

The average monthly use of SMS by Kyivstar’s subscribers declined from 20 SMS in Q1 2010 to 18 SMS in Q2 2010



Other Markets

27 Note: SMS traffic for Hungary excludes free SMS. 28 Note: The change in SMS traffic is small for Cyprus, Hungary and Malta during 2008-2010 and does not get

reflected as it is rounded to one decimal place.

Figure 50: SMS Traffic in Cyprus, Hungary and Malta (In Billion, 2008 – 2010)27,28


Figure 51: SMS Use per Subscriber per Month in Cyprus, Hungary and Malta (2008 – 2010)


1.6

2.1

0.5

1.6

2.1

0.5

1.6

2.1

0.5

0

1

2

3

4

Cyprus Hungary Malta

SM

S T

raffi

c (I

n B

illio

n)

Country

2008 2009 2010

132.1

15.6

106.6

122.7

15.6

102.4114.3

15.3

96.3

0

25

50

75

100

125

150

Cyprus Hungary Malta

SM

S U

se p

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ubsc

riber

per

M

onth

Country2008 2009 2010

Cyprus, Hungary and Malta witnessed a drop in monthly average SMS use per subscriber during 2008-2010, despite a rise in SMS traffic

In 2010, Bosnia and Herzegovina, Bulgaria and Slovakia recorded growth in both SMS traffic and monthly average SMS use per subscriber from 2009 levels

In 2010, Luxembourg and Iceland witnessed annual SMS traffic growth of nearly 10 percent and 2.5 percent respectively

In 2010, Estonia’s SMS traffic witnessed a dip owing to a decline in its subscriber base



29 Note: With reference to our previous edition of this report, ‘Mobile Messaging Futures 2010-2014’, Slovakia’s

SMS traffic surpassed our expectations.

Figure 52: SMS Traffic in Bosnia and Herzegovina, Bulgaria and Slovakia (In Billion, 2008 – 2010)29


Figure 53: SMS Use per Subscriber per Month in Bosnia and Herzegovina, Bulgaria and Slovakia (2008 – 2010)


1.9

0.6

0.8

2.0

0.7

1.9

2.2

0.7

2.4

0

1

1

2

2

3

Bosnia and Herzegovina Bulgaria Slovakia

SM

S T

raffi

c (I

n B

illio

n)

Country

2008 2009 2010

57.3

4.8

11.6

49.3

5.1

27.5

47.4

5.7

32.8

0

25

50

75

Bosnia and Herzegovina Bulgaria Slovakia

SM

S U

se p

er S

ubsc

riber

per

M

onth

Country2008 2009 2010



30 Note: The change in SMS traffic is small for Estonia during 2008-2010, and for Iceland and Luxembourg during

2009-2010 and does not get reflected as it is rounded to one decimal place.

Figure 54: SMS Traffic in Estonia, Iceland and Luxembourg (In Billion, 2008 – 2010)30


Figure 55: SMS Use per Subscriber per Month in Estonia, Iceland and Luxembourg (2008 – 2010)


0.4

0.1

0.40.4

0.1

0.4

0.4

0.2

0.5

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Estonia Iceland Luxembourg

SM

S T

raffi

c (I

n B

illio

n)

Country

2008 2009 2010

20.8

37.4

47.6

19.6

36.6

51.2

18.3

36.3

55.1

0

10

20

30

40

50

60

Estonia Iceland Luxembourg

SM

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per

M

onth

Country

2008 2009 2010



Table 14: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Europe (In Percent, 2010)31

Country Contribution to Subscriber Base (In Percent, 2010)

Contribution to SMS Traffic (In Percent, 2010)

Austria 1.15 0.76

Belgium 1.17 2.48

Bosnia and Herzegovina 0.39 0.26

Bulgaria 1.01 0.09

Croatia 0.58 0.37

Cyprus 0.11 0.19

Czech Republic 1.27 1.25

Denmark 0.73 1.60

Estonia 0.15 0.04

Finland 0.79 0.47

France 5.79 12.33

Germany 10.09 4.81

Greece 1.63 1.20

Hungary 1.10 0.25

Iceland 0.03 0.02

Ireland 0.51 1.42

Italy 8.54 8.89

Lithuania 0.46 1.06

Luxembourg 0.07 0.06

Malta 0.04 0.06

Montenegro 0.12 0.16

The Netherlands 1.83 1.36

Norway 0.48 0.80

Poland 4.21 5.73

Portugal 1.57 3.11

Romania 2.79 1.52

Russia 20.28 3.15

Serbia 0.99 1.76

Slovakia 0.57 0.28

Slovenia 0.20 0.17

Spain 5.36 2.06

Sweden 1.17 3.56

Switzerland 0.86 0.88

The UK 7.68 14.72

Turkey 6.20 18.52

Ukraine 5.17 1.35 Source: Portio Research Ltd.

31 Note: The table does not cover all the countries in the region, hence the percentages will not add up to 100

percent.



Asia Pacific As already mentioned, owing to its huge subscriber base and burgeoning SMS market, Asia Pacific dominates the worldwide SMS market both in terms of traffic and revenue. Heavy texting in countries such as China, the Philippines, Indonesia, India and Pakistan boosted the growth of SMS traffic in the region in 2010. In 2010, Asia Pacific’s total SMS traffic amounted to nearly 3 trillion and is set to reach almost 5.6 trillion by end-2015, growing at a CAGR of 13.7 percent during 2010-2015. Asia Pacific is forecast to show the second highest growth rate in SMS traffic during 2010–2015, after the Africa and Middle East region. China leads the regional SMS market, forming over 28 percent of regional traffic during 2010. In 2010, China generated the second highest SMS traffic worldwide, after the US. After China, the Philippines – known as ‘the SMS capital of the world’ – contributed over 22 percent of the regional 2010 traffic. Even during the recessionary year of 2009, countries such as Pakistan and Indonesia witnessed staggering y-o-y growth in SMS traffic, which continued in 2010.

Figure 56: SMS Traffic – Asia Pacific (In Billion, 2008 – 2015F)


F – Forecasted

The Asia Pacific region saw a massive increase in its subscriber base in 2010 and is expected to continue its dominance in the market in terms of subscriber numbers through 2011-2015. The region’s SMS traffic also recorded phenomenal growth in 2010, primarily due to falling SMS prices and bundled SMS offers, combined with the aforementioned increase in subscriber base. In the emerging markets of Asia Pacific, users are becoming more familiar with mobile devices and their functionalities. Subscribers from the bottom-of-pyramid segment have also started using mobile phones for texting, in addition to basic voice calls. Users are getting exposed to numerous SMS-based services such as voting, surveys, news, information, donations, mobile banking and service activation alerts (users receive either confirmations or passwords for account activations through SMS). SMS has also been identified as a strong marketing tool in the region due to its widespread reach to a large target audience. Mobile advertising will shore up the SMS traffic growth – a single marketing text per day to a huge subscriber base of over 3.8 billion will theoretically generate SMS traffic of more than 1,365 billion in 2015. With the overall excitement revolving around SMS in the region, SMS traffic is expected to grow more aggressively than our forecast in last year’s edition of this report.

2,147.4 2,319.1

2,927.7

3,530.2

4,118.54,697.5

5,172.15,557.7

0

1,300

2,600

3,900

5,200

6,500

2008 2009 2010 2011 F 2012 F 2013 F 2014 F 2015 F

SM

S T

raffi

c

(In

Bill

ion)

Year

Heavy texting in countries such as China, the Philippines, Indonesia, India and Pakistan boosted the growth of SMS traffic in the region in 2010.

Users are getting exposed to numerous SMS-based services such as voting, surveys, news, information, donations, mobile banking and service activation alerts.



SMS revenue generated in Asia Pacific in 2010 stood at USD 45.2 billion and is forecast to reach USD 65.8 billion by end-2015, growing at a CAGR of approximately 8 percent. In 2010, Asia Pacific’s contribution to worldwide SMS traffic stood at 42.2 percent, and is forecast to grow to 47.6 percent by end-2015. The region’s contribution to SMS revenue is projected to reach 41.4 percent in 2015, against 39.5 percent in 2010. The figure below depicts SMS revenue in Asia Pacific during 2008-2015.

Figure 57: SMS Revenue – Asia Pacific (In USD Billion, 2008 – 2015F)


F – Forecasted

In 2009, Asia Pacific's monthly SMS use per subscriber experienced a decline, after seeing just an 8 percent increase in SMS traffic compared to the 23 percent increase in subscriber base. However, faster growth in the region’s SMS traffic in 2010 (fuelled by countries such as India, Pakistan, Indonesia and the Philippines) than the region’s subscriber base has led to an increase in SMS use per subscriber per month – albeit to a lower level than before the recessionary period. Moreover, a staggering y–o–y growth rate of 28 percent in the region's A2P SMS traffic in 2010 highlights the increasing popularity of SMS-based services such as advertising, ticketing, voting, banking etc. During 2010-2015, SMS use per subscriber per month for Asia Pacific is forecast to grow at a CAGR of 3.4 percent. The next figure highlights the trend in SMS use per subscriber per month in the region during 2008-2015.

40.3 40.145.2

51.757.4

61.664.3 65.8

0

10

20

30

40

50

60

70

2008 2009 2010 2011 F 2012 F 2013 F 2014 F 2015 F

SM

S R

even

ue

(In

US

D B

illio

n)

Year

In 2010, Asia Pacific’s contribution to worldwide SMS traffic stood at 42.2 percent, and is forecast to grow to 47.6 percent by end-2015.



Figure 58: SMS Use Per Subscriber Per Month – Asia Pacific (2008 – 2015F)


F – Forecasted

115.1

100.0 104.9 109.4 114.2 119.1 122.1 123.8

0

30

60

90

120

150

2008 2009 2010 2011 F 2012 F 2013 F 2014 F 2015 F

SM

S U

se P

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riber

Per

M

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Year



Key Geographical Markets Australia

China

Figure 59: SMS Traffic and SMS Use per Subscriber per Month – Australia (2008 – 2010)


19.323.6

26.1

71.975.4 73.2

0

15

30

45

60

75

90

0

5

10

15

20

25

30

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

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n B

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Year


Y-o-y SMS traffic growth fell from 22 percent in 2009 to nearly 10 percent in 2010 Monthly average SMS use per subscriber witnessed a decline in 2010, primarily

because of slower growth in SMS traffic compared to the mobile subscriber base Subscribers of the country’s largest operator Telstra sent over 4.6 billion SMS in H1

2010, against 4 billion in H1 2009

China generated nearly 818 billion SMS in 2010, the second-highest country-level traffic volume after the US

China Mobile, the country’s largest operator with a market share of 70.5 percent, generated nearly 81 percent of China’s SMS traffic in Q2 2010

The falling SMS use per subscriber per month can be attributed to the comparatively slower SMS traffic growth against subscriber growth in China. This can be further explained by the fact that a large proportion of the newly added subscribers come from rural areas where SMS use is expected to be low.



Hong Kong

Figure 60: SMS Traffic and SMS Use per Subscriber per Month – China (2008 – 2010)


Figure 61: SMS Traffic and SMS Use per Subscriber per Month – Hong Kong (2008 – 2010)


683.4776.2 817.8

99.0 96.287.3

0

40

80

120

0

150

300

450

600

750

900

2008 2009 2010

SM

S u

se p

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ubsc

riber

per

M

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SM

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Year


4.85.6

6.8

44.148.4

54.3

0

20

40

60

0

2

4

6

8

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

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n B

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Year


Annual SMS traffic for 2010 grew by over 20 percent to reach 6.8 billion from 5.6 billion in 2009

In 2010, subscribers in Hong Kong sent over 27 million and 28 million SMS on New Year’s day and Valentine’s day respectively — respectively 19 percent and 54 percent more than on the same days in 2009



India

Indonesia

Figure 62: SMS Traffic and SMS Use per Subscriber per Month – India (2008 – 2010)


78.2133.0

286.6

22.525.4

38.9

0

7

14

21

28

35

42

0

50

100

150

200

250

300

350

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

c (I

n B

illio

n)

Year


SMS traffic in 2010 increased by approximately 115 percent y-o-y, reaching 286.6 billion SMS

SMS traffic growth can be attributed to a staggering increase at CAGR 42.3 percent of mobile subscribers during 2008-2010, along with falling prices and bundle SMS offers across different networks

The significant growth in India’s SMS traffic during 2008-2010 has led to a rise in monthly SMS use per subscriber over the same period

In H1 2010, SMS traffic generated by GSM subscribers was more than thirteen times the SMS traffic generated by CDMA subscribers

In Q2 2010, 6.2 percent of total GSM mobile revenue generated in India was contributed by SMS; the corresponding CDMA figure was 6.0 percent

Annual SMS traffic in Indonesia increased by over 39 percent in 2010 XL Axiata (formerly known as Excelcomindo) witnessed a staggering y-o-y rise of 209

percent in SMS traffic in H1 2010, reaching nearly 74 billion SMS from 24 billion SMS in H1 2009

Telkomsel, the country’s largest operator, experienced an increase of 15 percent in its revenue per chargeable SMS in H1 2010 compared to H1 2009, while its chargeable SMS traffic declined by 11 percent during the same period; this can attributed to a revised pricing strategy for Telkomsel SMS packages

In 2010, Indonesia contributed over 11 percent to Asia Pacific’s SMS traffic; the third largest share after China and the Philippines



Japan

Figure 63: SMS Traffic and SMS Use per Subscriber per Month – Indonesia (2008 – 2010)


Figure 64: SMS Traffic and SMS Use per Subscriber per Month – Japan (2008 – 2010)


142.1

238.6

331.9

104.4

134.3

161.2

0

30

60

90

120

150

180

0

50

100

150

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2008 2009 2010

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per

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onth

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Year


205.9237.8

274.7

166.3183.1

200.3

0

40

80

120

160

200

240

0

50

100

150

200

250

300

2008 2009 2010

SM

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YearSMS Traffic SMS per Subscriber per Month

SMS growth in Japan is not as aggressive as in the other leading markets in the region Japan accounts for over 9 percent of regional SMS traffic, even though its contribution

to the regional subscriber base was just 4.7 percent in 2010 Mobile data services such as e-mail and mobile IM are highly popular and have

historically suppressed the growth of SMS in Japan The y-o-y growth rate of SMS per user per month during 2010 was nearly 9 percent,

compared to 10 percent in 2009



Malaysia

Figure 65: SMS Traffic and SMS Use per Subscriber per Month – Malaysia (2008 – 2010)


73.2

89.498.7

241.1254.4 255.4

0

60

120

180

240

300

0

40

80

120

2008 2009 2010

SM

S u

se p

er S

ubsc

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per

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Between 2008-2010, SMS traffic grew at a CAGR of nearly 16.1 percent to reach almost 99 billion at end-2010, from 73.2 billion in 2008

Around 24 billion SMS were sent in Q2 2010 – 0.6 billion more than the number of SMS sent in Q1 2010

Aggressive growth in the subscriber base has resulted in only a minor increase in SMS use per month per subscriber



Pakistan

Figure 66: SMS Traffic and SMS Use per Subscriber per Month – Pakistan (2008 – 2010)


25.5

106.1

207.9

25.6

94.3

170.9

0

50

100

150

200

0

50

100

150

200

250

2008 2009 2010

SM

S u

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In 2010, Pakistan witnessed the second highest y-o-y growth in SMS traffic in the Asia Pacific region, after India

Annual SMS traffic in Pakistan has shown staggering growth, and achieved more than 95 percent growth in 2010 over 2009

Between 2008-2010, SMS traffic grew at a CAGR of more than 185 percent to reach nearly 208 billion at end-2010, from 25.5 billion in 2008

Pakistan has recently witnessed tremendous growth in SMS traffic. 2009 proved to be a record year with an annual growth rate of over 315 percent. More than 106 billion SMS were exchanged by subscribers during the same period

Pakistan’s contribution to the region’s SMS traffic increased to 7 percent in 2010, even though its contribution to the region’s subscriber base decreased in 2010

Average monthly SMS use is seeing an upward trend, primarily owing to several SMS packages offered by the country’s operators and increased familiarity with mobile devices and their functionality. Also, adoption of SMS as a promotional tool during and after elections, to exchange news and information during an emergency when other electronic media have been restricted by the Government, and to share and access information on recovery efforts during a natural disaster (such as the 2010 floods) have proliferated the growth of SMS traffic in the past few years.

Nearly all operators have introduced discounted or unlimited SMS packages for their subscribers



The Philippines

Figure 67: SMS Traffic and SMS Use per Subscriber per Month – The Philippines (2008 – 2010)


483.9 509.2647.0

648.4590.4

660.2

0

150

300

450

600

750

0

150

300

450

600

750

2008 2009 2010

SM

S u

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Year


SMS traffic in 2010 reached 647 billion, the third-highest country-level traffic volume worldwide after the US and China

After witnessing a dip in SMS use per subscriber per month in 2009, owing to slower growth in SMS traffic compared to subscriber base growth, the Philippines rebounded with the highest SMS use density of 660.2 SMS per user per month in 2010

In 2010, SMS use per subscriber per month rose to over 660 against 590.4 in 2009; primarily due to a growth of 27 percent in SMS traffic, compared to a 17 percent rise in subscriber numbers

The Philippines, referred to as the ‘SMS capital of the world’, records extremely low voice usage compared to SMS usage; the prime reason being the significant price differences between voice and text messaging tariffs

Subscribers of Smart, the country’s largest MNO, generated nearly 175 billion SMS in H1 2010 against approximately 139 billion SMS in H1 2009



Singapore

Figure 68: SMS Traffic and SMS Use per Subscriber per Month – Singapore (2008 – 2010)


12.6

23.330.7

176.0

294.1

365.3

0

100

200

300

400

0

10

20

30

40

2008 2009 2010

SM

S u

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Over 30 billion SMS were sent in 2010, compared to 2009’s 23.3 billion In H1 2010, the SMS volume stood at 14.2 billion, up by nearly 28 percent on that in

H1 2009 StarHub subscribers exchanged over 2.4 billion SMS in H1 2010 The average monthly use of SMS (150 SMS) by a prepaid StarHub subscriber is

markedly less than the monthly average (255 SMS) of a postpaid StarHub user



South Korea

Other Markets

Figure 69: SMS Traffic and SMS Use per Subscriber per Month – South Korea (2008 – 2010)


131.5 141.5 152.3

246.0 252.1 255.8

0

50

100

150

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250

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0

30

60

90

120

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180

2008 2009 2010

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Year


With nearly 256 SMS per subscriber per month, Koreans are the second heaviest users of SMS (in per subscriber terms), after the Philippines

In 2010, annual SMS traffic increased by over 7 percent to 152.3 billion

Afghanistan’s SMS volumes broke 19 billion in 2010, 8 billion more than in 2009 7.3 billion SMS were sent in 2010 in Taiwan compared to 6.4 billion in 2009 Taiwan, Afghanistan and Macau witnessed an increase in SMS use per subscriber per

month in 2010 against 2009 levels



32 Note: The change in SMS traffic is small for Macau during 2009-2010 and does not get reflected as it is rounded

to one decimal place.

Figure 70: SMS Traffic in Taiwan, Afghanistan and Macau (In Billion, 2008 – 2010)32


Figure 71: SMS Use per Subscriber per Month in Taiwan, Afghanistan and Macau (2008 – 2010)


5.6 5.0

0.1

6.4

11.3

0.2

7.3

19.3

0.20

4

8

12

16

20

Taiwan Afghanistan Macau

SM

S T

raffi

c (I

n B

illio

n)

Country

2008 2009 2010

18.7

68.4

14.120.6

93.7

12.9

22.6

114.4

13.7

0

15

30

45

60

75

90

105

120

135

Taiwan Afghanistan Macau

SM

S U

se p

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ubsc

riber

pe

r M

onth

Country

2008 2009 2010



Table 15: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Asia Pacific (In Percent, 2010)33



Afghanistan 0.62 0.66

Australia 1.20 0.89

China 33.12 27.93

Hong Kong 0.43 0.23

India 27.85 9.79

Indonesia 7.26 11.34

Japan 4.68 9.38

Macau 0.05 0.01

Malaysia 1.32 3.37

Pakistan 4.16 7.10

The Philippines 3.49 22.10

Singapore 0.28 1.05

South Korea 2.03 5.20

Taiwan 1.09 0.25


33 Note: The table does not cover all the countries in the region, hence the percentages will not add up to 100 percent.



North America North America witnessed a tremendous y-o-y growth rate of 85.7 percent in SMS traffic in 2009, and saw further y-o-y growth of 43.3 percent in 2010. In less than two years, North America’s SMS traffic has proliferated from a little over 1 trillion SMS to more than 2.7 trillion SMS. The region’s SMS traffic is forecast to reach 4.2 trillion by end-2015, growing at a CAGR of 9.3 percent during 2010-2015. Like Europe, the forecast for North America’s SMS traffic for 2011-2015 has been brought down compared to our forecast in last year’s edition of ‘Mobile Messaging Futures’. The reason for this change is the growing popularity of the mobile Internet and mobile applications, owing to better data networks, affordable smartphones, engrossing apps and online content. Mobile advertisements through these new communication channels are expected to drive mobile marketing in the coming years. The US subscribers exchanged over 2.7 trillion SMS in 2010. Annual SMS traffic in the US grew by 43.0 percent in 2010, while in Canada the corresponding growth was around 57 percent. The figure below shows the SMS traffic of North America from 2008 to 2015.

Figure 72: SMS Traffic – North America (In Billion, 2008 – 2015F)


F – Forecasted

The revenue generated from SMS in the region is forecast to rise from USD 25 billion in 2010 to USD 36.8 billion in 2015, growing at a CAGR of 8 percent during 2010-2015. In 2010, North America’s contribution to worldwide SMS revenue was nearly 22 percent, the third largest regional share after Asia Pacific and Europe. North America is expected to catch up with Europe and become the second largest SMS market in terms of revenue generation by 2013. The A2P SMS segment will drive SMS revenues in the region.

1,021.0

1,896.4

2,717.63,069.3

3,430.63,809.7

4,025.84,233.6

0

1,000

2,000

3,000

4,000

5,000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S T

raffi

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(In

Bill

ion)

Year

In less than two years, North America’s SMS traffic has proliferated from a little over 1 trillion SMS to more than 2.7 trillion SMS.



The figure below depicts SMS revenue in North America during 2008-2015.

Figure 73: SMS Revenue – North America (In USD Billion, 2008 – 2015F)


F – Forecasted

North America’s subscriber base is forecast to grow at a CAGR of 4 percent during 2010-2015, whereas SMS traffic will grow at a CAGR of 9.3 percent in this period. The difference in growth rates is expected to propel monthly SMS use per subscriber from 699 SMS in 2010 to over 880 SMS by end-2015. Lower SMS traffic for 2011-2015 compared to our earlier published forecast has translated into considerably lower SMS use per subscriber per month than previously expected. The figure below highlights the projected growth in monthly SMS use of a subscriber in the region during 2008-2015.

18.720.9

25.028.2

31.134.1

36.1 36.8

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

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North America’s subscriber base is forecast to grow at a CAGR of 4 percent during 2010-2015, whereas SMS traffic will grow at a CAGR of 9.3 percent in this period.

Figure 74: SMS Use Per Subscriber Per Month – North America (2008 – 2015F)


F – Forecasted

299.4

522.1

698.9744.9

794.0846.4 863.3 880.6

0

100

200

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400

500

600

700

800

900

1,000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

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Key Geographical Markets Canada

The US

Figure 75: SMS Traffic and SMS Use per Subscriber per Month – Canada (2008 – 2010)


21.0

35.8

56.284.2

134.0

198.9

0

35

70

105

140

175

210

0

8

16

24

32

40

48

56

64

2008 2009 2010S

MS

use

per

Sub

scrib

er p

er

Mon

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SM

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Annual SMS traffic in Canada grew by over 57 percent in 2010 In the first half of 2010, Canada’s SMS volume totaled 25.7 billion TELUS, the country’s leading operator with a market share of approximately 28

percent, signed an agreement with Acision in September 2010 to gain access to Acision’s advanced messaging solution. This will help TELUS to keep pace with growing SMS traffic and provide high value messaging services to its customers.

In 2010, the US continued to generate the highest SMS traffic worldwide, followed by China and the Philippines respectively

In 2010, over 2,661 billion SMS were sent by the US, nearly 1,787 billion SMS more than that sent by China

SMS use per subscriber per month has grown by nearly 34 percent in 2010 over 2009 Increasing advertising through SMS is one of the primary reasons behind the

impressive growth of SMS traffic in the country



SMS in the USA: Rapid growth and how that growth is measured

Table 16: Country’s Contribution to Regional Subscriber Base and SMS Traffic — North America (In Percent, 2010)



Canada 7.21 2.07

The US 92.79 97.93


Figure 76: SMS Traffic and SMS Use per Subscriber per Month – The US (2008 – 2010)


1,000.0

1,860.7

2,661.4316.5

553.1

738.4

0

300

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2008 2009 2010

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When looking at the data for US SMS traffic, readers should be aware that US MNOs report ‘total traffic carried’ over their networks, being both SMS messages sent (MO: Mobile Originated) and SMS messages received (MT: Mobile Terminated). In the US, network operators charge for both sending AND receiving text messages, and hence, when reporting traffic data, they report total messages carried, not just messages sent. In almost every other country of the world, MNOs charge for sending messages only, and hence traffic data in those other countries is counted only once, as total messages sent. We work with the US market data the way the US MNOs report it, as total traffic carried. When looking at the value of the market, the US data in this report can be read at face value, because each message, SMS sent and received, represents a separate ‘billing event’ for a US MNO. However, when looking at traffic data in the US compared to elsewhere in the world, and hence when looking at our overall North American SMS traffic forecasts compared to other regions, it is important to remember that the US (and hence North American) data counts BOTH messages sent and messages received in the huge US market.



Latin America Lately, the Latin American mobile market has shown encouraging developments such as the deployment of advanced mobile networks, the adoption of high-speed mobile Internet, improved interoperability, the growing popularity of mobile phones as an advertising tool (in part due to Syniverse Technologies’ short code initiative), and the arrival of smartphones and tablets. With such efforts in place, the coming years look promising for messaging services in the region. Since messaging services are still evolving in Latin America, the unit price of SMS is expected to fall over the next few years, which will bring a further wave of growth in SMS traffic. Syniverse’s Short Code Initiative: In September 2010, Syniverse launched a ‘common short code’ hub for the Latin American subscriber base. Enterprises, ad agencies, brand marketers and corporations can now lease a single common short code for 20 countries across Latin America by following a simple registration process at www.latinshortcodes.com. The short code will enable companies and brands to connect and two-way communicate with subscribers of almost all the wireless operators across the Latin American region. There are several ‘common short code’ applications, such as voting, text-to-win, polls/surveys, product information, dating, coupons, games, subscriptions, donations, commerce and chat, which will provide the required boost to messaging traffic in the region. In 2010, total SMS traffic in the Latin American region amounted to over 286 billion; this traffic is forecast to increase at a CAGR of 10.9 percent during 2010-2015 to reach 479.8 billion SMS by end-2015. Argentina, Venezuela and Mexico are the most important regional SMS markets. The figure below shows SMS traffic for Latin America from 2008 to 2015.

Figure 77: SMS Traffic – Latin America (In Billion, 2008 – 2015F)


F – Forecasted

Regional SMS revenue amounted to USD 4.8 billion in 2010 and is forecast to grow at a CAGR of 4.4 percent to reach USD 6 billion in 2015. Concurrently, the region’s contribution to worldwide SMS revenue is expected to decrease from 4.2 percent in 2010 to 3.8 percent in 2015.

191.0226.1

286.4324.2

362.9401.6

440.5479.8

0

100

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500

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

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(In

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In 2010, total SMS traffic in the Latin American region amounted to over 286 billion; this traffic is forecast to increase at a CAGR of 10.9 percent during 2010-2015 to reach 479.8 billion SMS by end-2015.

http://www.latinshortcodes.com/�



The figure below depicts SMS revenue for Latin America during 2008-2015.

Figure 78: SMS Revenue – Latin America (In USD Billion, 2008 – 2015F)


F – Forecasted

In 2010, the Latin American subscriber base grew at just 8 percent whereas SMS traffic grew at 27 percent, and thus SMS per user per month rose from just under 40 SMS in 2009 to over 46 SMS. Monthly SMS use per subscriber is expected to increase at a CAGR of 5 percent between 2010 and 2015. The figure below highlights the projected growth in monthly SMS use of a subscriber in the region during 2008-2015.

4.04.5

4.85.1

5.4 5.6 5.8 6.0

0

4

7

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

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In 2010, the Latin American subscriber base grew at just 8 percent whereas SMS traffic grew at 27 percent, and thus SMS per user per month rose from just under 40 SMS in 2009 to over 46 SMS.

Figure 79: SMS Use Per Subscriber Per Month – Latin America (2008 – 2015F)


F – Forecasted

38.6 39.946.4 48.7 51.2 53.7

56.459.2

0

10

20

30

40

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60

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2008 2009 2010 2011F 2012F 2013F 2014F 2015F

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Key Geographical Markets Argentina

Brazil

Figure 80: SMS Traffic and SMS Use per Subscriber per Month – Argentina (2008 – 2010)


50.165.2

77.4

105.5118.8

130.7

0

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2008 2009 2010

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Argentina leads the Latin American region in terms of SMS traffic Annual SMS traffic grew by approximately 19 percent in 2010 Over 35 billion SMS were sent in the first six months of 2010 The monthly average of SMS sent by Telecom Personal’s total subscriber base

increased from 2.6 billion SMS in H1 2009 to 4.2 billion SMS in H1 2010

With reductions of over 50 percent to the price per SMS, Brazilian SMS traffic witnessed staggering y-o-y growth of approximately 119 percent in 2009. However, Brazil still lags behind the major markets, such as Argentina, Mexico and Venezuela, in terms of SMS traffic

In 2010, Brazil’s SMS volume stood at 40.6 billion, up by approximately 52 percent from that in 2009

Brazil’s contribution to the region’s SMS traffic increased from nearly 6 percent in 2009 to 14 percent in 2010

Campaigns, such as text-to-win (daily deals promotions) and reverse auctions (where subscribers could win a house, bike, car and money by simply sending an SMS), have enjoyed huge participation from subscribers

Two big sporting events, the FIFA World Cup in 2014 and the Olympic Games in 2016, are expected to drive investments in infrastructure and service rollouts over the next few years; this will result in enhanced handling of SMS traffic in the country



Chile

Figure 81: SMS Traffic and SMS Use per Subscriber per Month – Brazil (2008 – 2010)


Figure 82: SMS Traffic and SMS Use per Subscriber per Month – Chile (2008 – 2010)


12.2

26.8

40.67.4

13.6

18.2

0

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2008 2009 2010

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1.51.7

1.9

8.1 8.4 8.6

0

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4

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10

0.0

0.5

1.0

1.5

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2008 2009 2010

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Both SMS traffic and SMS use per subscriber per month are among the lowest in the region

Annual SMS traffic rose over 13 percent in 2010 from 2009 levels Over 957 million SMS were sent in H1 2010 against 822 million SMS in H1 2009



Colombia

El Salvador

Figure 83: SMS Traffic and SMS Use per Subscriber per Month – Colombia (2008 – 2010)


4.05.8

9.5

9.0

11.8

19.1

0

4

8

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2008 2009 2010

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SMS traffic increased by 65 percent in 2010, hitting 9.5 billion SMS from 5.8 billion SMS in 2009

Faster growth in Colombian SMS traffic has resulted in increased SMS use per subscriber per month

SMS traffic growth slowed down to approximately 28 percent in 2010, after witnessing a staggering increase of 223 percent in 2009

Similarly, for SMS use per subscriber per month, y-o-y growth slowed down to approximately 20 percent in 2010, from 186 percent in 2009

Total SMS sent reached 7.4 billion in 2010, 1.6 billion more than in 2009



Mexico

Figure 84: SMS Traffic and SMS Use per Subscriber per Month – El Salvador (2008 – 2010)


Figure 85: SMS Traffic and SMS Use per Subscriber per Month – Mexico (2008 – 2010)


1.8

5.8

7.4

22.6

64.5

77.2

0

30

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6

8

2008 2009 2010

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39.851.1

63.2

45.1

52.7

61.2

0

10

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0

20

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2008 2009 2010 SM

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SMS is growing faster than voice calls in the country In 2010, the country’s SMS traffic stood at 63.2 billion, up by nearly 24 percent from the

2009 level In 2010, SMS use per subscriber per month rose to over 61 SMS from around 53 SMS

in 2009 Over 30 billion SMS were sent in H1 2010 against 24 billion in H1 2009



Peru

Figure 86: SMS Traffic and SMS Use per Subscriber per Month – Peru (2008 – 2010)


3.03.7

4.2

15.3 15.6 15.8

0

3

6

9

12

15

18

0

1

2

3

4

5

2008 2009 2010 SM

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SMS per subscriber per month growth slowed down in 2010 owing to comparatively slower growth in SMS traffic in 2010 from 2009

Subscribers of Telefonica and America Movil sent approximately 1,147 million and 890 million SMS respectively in H1 2010

The shares of SMS traffic generated by subscribers of Telefonica, America Movil and Nextel in H1 2010 stood at 55 percent, 43 percent and 2 percent respectively



Venezuela

Table 17: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Latin America (In Percent, 2010)34



Argentina 9.49 27.03

Brazil 36.49 14.19

Chile 3.63 0.67

Colombia 7.94 3.33

El Salvador 1.53 2.58

Mexico 16.65 22.06

Peru 4.35 1.45

Venezuela 5.73 25.81



Figure 87: SMS Traffic and SMS Use per Subscriber per Month – Venezuela (2008 – 2010)


49.864.8

73.9

159.6

186.7204.4

0

40

80

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30

60

90

2008 2009 2010

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Annual SMS traffic grew by approximately 14 percent in 2010 over 2009 SMS per user per month is the highest in the region, followed by Argentina Subscribers use SMS for various activities such as voting, e-ticketing, charity

donations, social networking, news, information and mobile payments



Africa and Middle East The Africa and Middle East mobile market is forecast to witness the highest growth, both in terms of SMS traffic and SMS revenue during 2010-2015. This is in part attributed to earlier lower usage levels – the region’s SMS traffic in 2008 was a miniscule 86.7 billion – but in the years 2009 and 2010, traffic has increased in leaps and bounds to 115.4 billion and 160.5 billion respectively, showcasing y-o-y growth of 33 percent and 39 percent. The SMS market in the region looks promising in the coming years and is expected to see traffic of approximately 350 billion by end-2015, growing at a CAGR of 16.9 percent between 2010 and 2015. After witnessing a phase of lower consumer spending and lack of consumer awareness of advanced non-voice services, the region – being led by countries in the Middle East and a few select African nations – is seeing aggressive roll outs of advanced technologies. Heavy investments in infrastructure by operators are expected to boost the data services usage. These new SMS traffic forecasts for the Africa and Middle East region are markedly more aggressive compared to our previous forecasts. With regard to SMS use, with the exception of Saudi Arabia, all the profiled AME countries have shown y-o-y increases of over 10 percent in 2009 and 2010. Although the Middle Eastern markets are progressing in terms of SMS traffic, owing to the advanced A2P segment, African nations are expected to catch up slowly and steadily with the uptake in the traditional P2P SMS segment. However, this increase in SMS traffic is not being reflected in the SMS use per subscriber per month figures due to the comparatively faster increase in the region’s subscriber base. The figure below shows the forecast SMS traffic of Africa and Middle East from 2008 to 2015.

Figure 88: SMS Traffic – Africa and Middle East (In Billion, 2008 – 2015F)


F – Forecasted

Annual SMS revenue generated in the region is projected to grow from USD 7.2 billion in 2010 to USD 14.5 billion in 2015, at a CAGR of nearly 15 percent. Regional contribution to worldwide SMS revenue is expected to increase from 6.3 percent in 2010 to 9.1 percent in 2015.

86.7115.4

160.5

194.7

231.4

269.7

309.0

349.8

0

60

120

180

240

300

360

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S T

raffi

c

(In

Bill

ion)

Year

The Middle Eastern markets are progressing in terms of SMS traffic, owing to the advanced A2P segment and African nations are expected to catch up slowly and steadily with the uptake in the traditional P2P SMS segment.



The figure below depicts SMS revenue in Africa and Middle East during 2008-2015.

Figure 89: SMS Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F)


F – Forecasted

The region’s subscriber base is expected to grow at a CAGR of 9.3 percent during 2010-2015, whereas the corresponding figure for SMS traffic is nearly 17 percent. Faster growth in SMS traffic has contributed to the projected rise in monthly SMS use per subscriber in the coming years. The figure below highlights the projected monthly SMS use of a subscriber in the region during 2008-2015.

4.4

6.07.2

8.610.0

11.613.0

14.5

0

2

4

6

8

10

12

14

16

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S R

even

ue

(In

US

D B

illio

n)

Year

Figure 90: SMS Use Per Subscriber Per Month – Africa and Middle East (2008 – 2015F)


F – Forecasted

15.1 15.418.3

19.4 20.5 21.823.1

24.5

0

5

10

15

20

25

30

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S U

se P

er S

ubsc

riber

Per

M

onth

Year




Bahrain

Egypt

35 Note: With reference to our previous edition ‘Mobile Messaging Futures 2010-2014’, Bahrain’s SMS traffic for

2008 has been revised because the country’s telecommunication regulatory body has updated SMS volume data for 2008. Consequently, SMS use per subscriber per month has also been revised.

Figure 91: SMS Traffic and SMS Use per Subscriber per Month – Bahrain (2008 – 2010)35


0.30.4

0.6

19.9

23.7

30.1

0

7

14

21

28

35

0.0

0.2

0.4

0.6

0.8

2008 2009 2010

SM

S u

se p

er S

ubsc

riber

per

M

onth

SM

S T

raffi

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n B

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Annual SMS traffic increased by approximately 36 percent in 2010 over 2009 The popularity of application to person (A2P) messaging services, such as SMS

banking and SMS shopping, has boosted SMS uptake in Bahrain

Annual SMS traffic increased by approximately 26 percent in 2010 from 2009 levels Promotional activities by service providers—during festivals and holidays etc.—help

boost the usage rate In October 2010, Egypt’s telecommunication regulator introduced a mandate requiring

SMS aggregators (companies which can send SMS to multiple phones simultaneously) to obtain a license from the regulatory body



Iran

Figure 92: SMS Traffic and SMS Use per Subscriber per Month – Egypt (2008 – 2010)


Figure 93: SMS Traffic and SMS Use per Subscriber per Month – Iran (2008 – 2010)


5.4

7.3

9.1

11.8 11.812.3

0

2

4

6

8

10

12

14

0

2

4

6

8

10

2008 2009 2010

SM

S u

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per

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Year


33.849.2

73.6

75.3 78.6

100.4

0

30

60

90

120

0

30

60

90

2008 2009 2010

SM

S u

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Year


Iran leads in the Africa and Middle East region in terms of SMS traffic SMS is a popular form of communication among the Iranian youth. With approximately

48 percent of the Iranian population under 25 years, SMS services have been boosted by the increase in mobile penetration in the youth segment.

Iran witnessed growth of nearly 50 percent in SMS traffic in 2010 over 2009 levels; SMS traffic amounted to 73.6 billion in 2010

Iran’s contribution to regional SMS traffic increased to 46 percent in 2010, even though its contribution to the AME region’s subscriber base decreased in 2010



Kenya

Morocco

Figure 94: SMS Traffic and SMS Use per Subscriber per Month – Kenya (2008 – 2010)


2.73.3

4.7

16.5 15.8

19.3

0

5

10

15

20

25

0

2

4

6

2008 2009 2010

SM

S u

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th

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Year


Annual SMS traffic recorded a y-o-y growth rate of 40 percent in 2010 In 2010, the monthly SMS use of an average subscriber grew by 22.5 percent M-PESA’s success has boosted the growth of SMS traffic in the country. M-PESA,

Kenya’s mobile money transfer service, empowers users to transfer money to either their own or other registered users’ mobile-money accounts, make bill payments and enquire about an account balance via SMS.

SMS traffic is expected to boom significantly in the country in the coming years owing to the following factors:

o The Communications Commission of Kenya (CCK) is in discussions with operators to lower SMS termination rates and per SMS charges

o Essar Telecom, the country’s third largest operator, launched the ‘Peperusha’ mobile e-mail and chat service in late 2010. This allows its entire subscriber base to send and receive e-mails and IM chats through any standard SMS-capable handset. The service does not require subscribers to own a smartphone, download an e-mail/IM client application, or have an Internet connection. This is expected to drive SMS traffic in the country.

SMS traffic rose by nearly 10 percent in 2010 from 2009 The growth of mobile payment services—such as merchandise purchases, digital

purchases, ticketing, money transfers, bill payment, and prepaid top-ups—continues to bolster the uptake of SMS services



Nigeria

Figure 95: SMS Traffic and SMS Use per Subscriber per Month – Morocco (2008 – 2010)


Figure 96: SMS Traffic and SMS Use per Subscriber per Month – Nigeria (2008 – 2010)


2.6 2.8 3.1

10.1 9.99.4

0

4

8

12

0

1

2

3

4

2008 2009 2010

SM

S u

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ubsc

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per

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Year


4.76.3

8.6

7.6 7.88.8

0

4

8

12

0

4

8

12

2008 2009 2010

SM

S u

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SMS traffic grew by 35 percent in 2010 over 2009 With more than 50 percent mobile penetration in the country, Nigerian firms are using

bulk SMS for low-cost advertising to reach a larger customer base. This boosts SMS traffic and revenues for MNOs, outpacing the subscriber base growth in the country.

However, fierce competition amongst operators has led to commoditisation of voice services, which in turn has significantly slowed down the growth of SMS volumes in 2009 and 2010 compared to 2008. Adoption of high-speed Internet has also been a factor which has suppressed the popularity of SMS.

Monthly SMS use per subscriber reached 8.8 in 2010 from 7.8 in 2009



Oman

Saudi Arabia

Figure 97: SMS Traffic and SMS Use per Subscriber per Month – Oman (2008 – 2010)


3.84.7

5.5

109.8 113.0 113.6

0

35

70

105

140

0

1

2

3

4

5

6

7

2008 2009 2010

SM

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SMS traffic has reduced over the years, possibly a reaction to reduced voice call charges and the popularity of other mobile services such as mobile broadband, e-mail and IM

Mobile broadband saw incredible growth of 488 percent in 2009 compared to 2008, to reach 1.41 million mobile broadband subscribers at end-2009. Mobile broadband subscribers stood at approximately 1.8 million in H1 2010.

In 2010, SMS volumes dropped to 6.1 billion from 7.2 billion in 2008 Consequently, SMS use per subscriber per month declined by 17 percent in 2010 from

2009 levels

Oman is the leading market in terms of SMS use per subscriber per month SMS traffic grew by 17 percent in 2010 compared to 2009 More than 113 SMS are sent by a subscriber per month, though the growth of monthly

SMS use per subscriber has slowed in 2010



South Africa

Figure 98: SMS Traffic and SMS Use per Subscriber per Month – Saudi Arabia (2008 – 2010)


Figure 99: SMS Traffic and SMS Use per Subscriber per Month – South Africa (2008 – 2010)


7.26.3 6.1

18.8

13.1

10.9

0

4

8

12

16

20

0

3

6

9

2008 2009 2010

SM

S u

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ubsc

riber

per

M

onth

SM

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n B

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Year


9.010.4

11.5

16.017.3

18.5

0

5

10

15

20

0

2

4

6

8

10

12

14

2008 2009 2010

SM

S u

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er S

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S T

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South Africa has witnessed an increase in SMS traffic during 2008-2010, at a CAGR of 13 percent

SMS use per subscriber per month increased from 16 in 2008 to 18.5 in 2010 There is a high use of A2P messages, especially in mobile marketing



Uganda

Table 18: Country’s Contribution to Regional Subscriber Base and SMS Traffic — Africa and Middle East (In Percent, 2010)36



Bahrain 0.22 0.36

Egypt 8.31 5.69

Iran 8.16 45.88

Kenya 2.71 2.90

Morocco 3.81 1.94

Nigeria 11.37 5.34

Oman 0.55 3.43

Saudi Arabia 6.25 3.81

South Africa 6.84 7.16

Uganda 1.84 0.48

Source: Portio Research Ltd. 36 Note: The table does not cover all the countries in the region, hence the percentages will not add up to 100 percent.

Figure 100: SMS Traffic and SMS Use per Subscriber per Month – Uganda (2008 – 2010)


0.6 0.7 0.8

8.5

5.84.9

0

2

4

6

8

10

0.0

0.4

0.8

1.2

1.6

2008 2009 2010

SM

S u

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SMS traffic recorded nearly 9.5 percent y-o-y growth in 2010 176 million SMS were sent in Q1 2010 SMS traffic experienced slower growth in 2009 compared to 2008, which further slowed

down in 2010; this can be attributed to falling voice charges. Voice calls have become cheaper than SMS through some operators, especially on-net calls (those within the same network).

MTN, the country’s leading operator, introduced voice SMS in Q1 2010 and saw over 11 percent of its subscribers adopting the service within three months of its launch



Chapter 5 MMS



MMS With every recent edition of this report, we have been trying to break the industry-wide myth that MMS is a ‘big failure’. MMS traffic growth over the years has not only proved this point but it has also surpassed our expectations. True, MMS did not achieve the meteoric growth seen by SMS, but it cannot be rated as a failure. MMS still presently stands strong as the second most successful non-voice mobile service worldwide. MMS may not bring windfall gains for operators, but being the second most successful messaging service in terms of revenues, it has been instrumental in shaping the strategies in the mobile data market worldwide. With the continuously falling prices of SMS, MNOs are eyeing other data services for increasing their data revenues, with MMS being one of them. MNOs have adopted creative bundling approaches and have introduced numerous MMS-based services to promote uptake. Almost all operators have signed interoperability agreements, and growing smartphone penetration and better deals on MMS-capable handsets are set to boost MMS traffic. Companies looking for innovative marketing solutions have recognised the potential of MMS. With the possibility of integrating text, images, pictures, audio files, videos and animations in one message, MMS has an element of creativity which is missing from SMS. In the case of MMS-based campaigns, it is comparatively easier for marketers to calculate a total audience’s response rate and their return on investments. Like SMS, MMS also offers a possibility of location-based personalised promotions, which are expected to achieve a high success rate. History of MMS

In November 2000, Softbank Mobile Japan (formerly known as J-Phone) launched the first picture messaging system ‘Sha-Mail’. Sony Ericsson’s T68i was the first MMS-enabled handset launched in the market. After being plagued with technical problems and over-pricing during its early years, MMS has slowly gained popularity worldwide. From just 14 billion MMS in 2005, annual traffic volumes have risen to nearly 249 billion MMS at end-2010. The table below shows the growth of MMS from 2005 to 2015.

Table 19: Growth of MMS – Worldwide (In Billion, 2005 – 2015F)37

Year MMS Traffic (In Billion) Year

MMS Traffic (In Billion)

2005 14.0 2011F 320.5

2006 28 2012F 400.5

2007 51.4 2013F 474.8

2008 80.5 2014F 536.8

2009 169.1 2015F 591.8

2010 248.7

Source: Portio Research Ltd. 37 Note: This report was written in the fourth quarter of 2010. As such, quoted full year 2010 figures throughout this


Almost all operators have signed interoperability agreements, and growing smartphone penetration and better deals on MMS-capable handsets are set to boost MMS traffic.



In 2010, MMS generated USD 32.5 billion of revenue worldwide, an increase of over 23 percent on 2009 revenue. Worldwide MMS revenue is forecast to reach USD 62 billion by end-2015, growing at a CAGR of approximately 14 percent during 2010-2015. Asia Pacific contributed the most to worldwide MMS revenue in 2010, followed by North America and Europe. The Asia Pacific region is forecast to not only retain its dominance in the worldwide MMS market, but also increase its share in the MMS revenue pie from 33.4 percent in 2010 to 35.4 percent by end-2015. The figure below shows worldwide MMS revenue during 2008-2015.

Figure 101: MMS Revenue – Worldwide (In USD Billion, 2008 – 2015F)38


F – Forecasted

Around 249 billion MMS were generated in 2010, representing a y-o-y growth rate of more than 47 percent. This number is forecast to reach close to 592 billion by end-2015, after increasing at a CAGR of 18.9 percent during 2010-2015. The next figure shows worldwide MMS traffic during 2008-2015.



21.826.3

32.538.6

44.550.7

56.562.0

0

10

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30

40

50

60

70

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

MM

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Figure 102: MMS Traffic – Worldwide (In Billion, 2008 – 2015F)


F – Forecasted

In 2010, Asia Pacific had the largest share in worldwide MMS traffic followed by North America, and Asia Pacific is forecast to increase its share of worldwide MMS traffic during 2010-2015. The markets of Latin America and Africa and Middle East will also show an increase in their contribution to the worldwide MMS traffic during the same period, albeit by a very small margin. On the contrary, the developed markets of North America and Europe will witness a decline in their shares. This is primarily due to the difference in the rate of adoption of newer services and penetration of smartphones in the different regions. Subscribers in developed markets typically have better technical know-how and are ready to try advanced services. In the coming years, with the launch of advanced networks, MMS growth in developed markets will be hampered by newer and better technologies. However, in emerging markets, movement from MMS to other services for exchanging images/videos and marketing campaigns is presently envisaged to be slow for at least the next five years. The next figure shows regional MMS traffic contribution in 2010 and 2015.

80.5

169.1

248.7

320.5

400.5

474.8

536.8591.8

0

90

180

270

360

450

540

630

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

MM

S T

raffi

c

(In

Bill

ion)

Year

In the coming years, with the launch of advanced networks, MMS growth in developed markets will be hampered by newer and better technologies.



Figure 103: MMS Traffic Contribution – Regional (In Percent, 2010 & 2015F)39


F – Forecasted

Like the SMS market, Asia Pacific dominates the MMS market in terms of traffic and revenues. Asia Pacific is forecast to further strengthen its position in the worldwide MMS market till 2015. The figure below shows regional MMS revenue contribution in 2010 and 2015.

Figure 104: MMS Revenue Contribution – Regional (In Percent, 2010 & 2015F)


F – Forecasted

39 Note: The percentages for 2010 do not add up to 100 percent because of rounding off errors.

6.4

64.0

27.2

0.9 1.63.8

67.0

26.2

1.1 1.9

0

10

20

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40

50

60

70

80


MM

S T

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(I

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nt)

Region

2010 2015F

29.533.4

30.0

3.0 4.1

20.9

35.4 35.1

2.66.0

0

10

20

30

40


MM

S R

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(I

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2010 2015F

Asia Pacific dominates the MMS market in terms of traffic and revenues. Asia Pacific is forecast to further strengthen its position in the worldwide MMS market till 2015.



An average mobile subscriber sent approximately 50 MMS in 2010, and this number is projected to increase to over 82 MMS by end-2015. The figure below shows the worldwide growth trend in MMS use per subscriber per year.

Worldwide MMS traffic is forecast to grow at a CAGR of 18.9 percent during 2010-2015. The emerging markets of Asia Pacific, Latin America, and Africa and Middle East are expected to grow faster than this worldwide CAGR, whereas the developed markets of North America and Europe are forecast to grow at a CAGR lower than the worldwide CAGR. The figure below shows MMS traffic growth by region during 2010-2015.

Figure 105: MMS Use Per Subscriber Per Year – Worldwide (2008 – 2015F)


F – Forecasted

The emerging markets of Asia Pacific, Latin America, and Africa and Middle East are expected to grow faster than this worldwide CAGR, whereas the developed markets of North America and Europe are forecast to grow at a CAGR lower than the worldwide CAGR.

Figure 106: MMS Traffic Growth by Region (In Percent, 2010 – 2015F)


F – Forecasted

21.8

38.9

50.258.0

66.573.4

78.3 82.3

0

25

50

75

100

2008 2009 2010 2011F 2012F 2013F 2014F 2015FMM

S U

se P

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riber

Per

Yea

r

Year

7.1

20.018.0

24.9 24.0

0

10

20

30


CA

GR

(In

Per

cent

)

Region


CAGR 18.9%



Europe Europe is an advanced mobile market with significant uptake of mobile data services. In 2010, MMS traffic in Europe amounted to nearly 16 billion MMS and is forecast to reach 22.4 billion MMS by end-2015—growing at a CAGR of 7.1 percent (the lowest among all regions). Europe’s contribution to worldwide MMS traffic is expected to fall from 6.4 percent in 2010 to 3.8 percent in 2015. The European MMS market is still led by Italy, with the UK placed second. The figure below shows MMS traffic in Europe for the period 2008-2015.

Figure 107: MMS Traffic – Europe (In Billion, 2008 – 2015F)


F – Forecasted

With reference to last year’s edition of this report, ‘Mobile Messaging Futures 2010-2014’, Europe’s MMS traffic has been scaled down for the forecast period 2012-2015, even though traffic for 2010 is higher than previously forecast. The primary reason for this change is the launch of advanced networks such as 3G, LTE, and WiMAX. With the arrival of advanced technologies favouring mobile web applications, European users’ enthusiasm to explore newer data services, along with high penetration of handsets which support web applications, means that the mobile Internet is positioned to grow by leaps and bounds. In 2010, countries such as Spain, Switzerland, and Ireland witnessed a decline in their MMS traffic owing to the popularity of high-speed mobile Internet, while other countries – Germany included – experienced stagnation in MMS traffic growth. Even in countries such as the UK and Poland, which are among the highest contributors to the region’s MMS traffic, traffic growth slowed down in 2010 compared to previous years. Innovative marketing campaigns through the mobile Internet, mobile applications, mobile augmented reality, Bluetooth, RFID, mobile TV broadcasts and social networking are expected to dominate the European market in the coming years.

10.7

12.9

15.917.1

18.419.7

21.022.4

0

5

10

15

20

25

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

MM

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(In

Bill

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Europe’s contribution to worldwide MMS traffic is expected to fall from 6.4 percent in 2010 to 3.8 percent in 2015.



European MMS revenue stood at USD 9.6 billion in 2010. This figure is forecast to reach USD 13 billion by end-2015 — a CAGR of 6.2 percent and the slowest growth among all regions worldwide. The slow growth can be attributed to the fact that Europeans are expected to use other data services more than they use MMS. The figure below shows MMS revenue in Europe during 2008-2015.

Figure 108: MMS Revenue – Europe (In USD Billion, 2008 – 2015F)


F – Forecasted

The figure below shows the growth curve of MMS use per subscriber per year during 2010-2015 in Europe. With reference to the earlier commentary, MMS use per subscriber per year in Europe is subsequently now forecast to increase from 15 MMS in 2010 to approximately 19 MMS in 2015.

6.5

7.8

9.610.3

11.011.7

12.313.0

0

3

6

9

12

15

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

MM

S R

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MMS use per subscriber per year in Europe is forecast to increase from 15 MMS in 2010 to approximately 19 MMS in 2015.

Figure 109: MMS Use Per Subscriber Per Year – Europe (2008 – 2015F)


F – Forecasted

11.212.7

15.0 15.6 16.3 17.118.0

18.9

0

6

12

18

24

2008 2009 2010 2011F 2012F 2013F 2014F 2015FMM

S U

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riber

Per

Yea

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Variation in Trends of the Top Six MMS Markets in Europe

Italy, the UK, France, Poland, Germany and Spain are the six largest and among the most advanced markets of Europe. However, the MMS traffic trends are quite different in these countries. Italy and France have massive uptake in both the P2P and A2P MMS segments and enjoyed double digit growth in MMS traffic in 2010. The UK and Poland experienced moderate y-o-y growth in 2010 – the A2P segment being the major contributor to MMS traffic growth.

But, the German and Spanish markets exhibited completely different trends in terms of MMS traffic. While Germany witnessed stagnated growth in its MMS market, Spain has been consistently showing a decline in its MMS traffic. Advanced data services have been quite popular in these two markets. Spain, with the highest Internet penetration, sees users, both in the P2P and A2P segments, spending more of their time on the mobile Internet and online media content. Spain will be a worthy market to observe in the future as it is currently leading the European market in uptake of advanced mobile data services. It is expected that other European markets will follow its lead, with Germany already motioning to do so.



Key Geographical Markets Austria

Bosnia and Herzegovina

Figure 110: MMS Traffic and MMS Use per Subscriber per Year – Austria (2008 – 2010)


32.0 32.5 32.9

3.13.0

2.8

0.0

0.7

1.4

2.1

2.8

3.5

0

10

20

30

40

2008 2009 2010M

MS

use

per

Sub

scrib

er p

er Y

ear

MM

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MMS Traffic MMS per Subscriber per Year

MMS traffic witnessed a marginal increase of 1.3 percent in 2010 compared to 2009 In Q2 2010, 8 million MMS were sent, whereas MMS traffic amounted to 7.9 million in

Q2 2009 There are wide variations and no detectable trend for MMS traffic between the

individual quarters of the year. In 2007 and 2008, MMS traffic was high in the first and fourth quarters of the year, while the third quarter saw the lowest MMS traffic. But, in 2009, Austria witnessed high traffic in the third and fourth quarters of the year, while the second quarter saw the lowest MMS traffic.

MMS traffic experienced strong y-o-y growth of over 29 percent in 2010 MMS growth outpaced SMS growth in 2010; the SMS growth rate (y-o-y) was only 9.6

percent In 2010, growth in annual MMS use per subscriber was 9 percent over 2009



Bulgaria

Figure 111: MMS Traffic and MMS Use per Subscriber per Year – Bosnia and Herzegovina (2008 – 2010)


Figure 112: MMS Traffic and MMS Use per Subscriber per Year – Bulgaria (2008 – 2010)


4.76.1

7.9

1.71.8

2.0

1.0

1.5

2.0

2.5

0

3

6

9

2008 2009 2010 MM

S u

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3.3

5.26.6

0.3

0.5

0.6

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0

2

4

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2008 2009 2010

MM

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In 2010, MMS traffic was 27 percent higher than in 2009 MMS growth outpaced SMS growth in 2009; the SMS growth rate was nearly 10

percent In 2010, annual MMS use per subscriber stood at 0.6 – the second lowest usage level

in the region



Croatia

Cyprus

Figure 113: MMS Traffic and MMS Use per Subscriber per Year – Croatia (2008 – 2010)


43.3

24.0 23.4

8.0

4.0 3.8

0

2

4

6

8

10

0

9

18

27

36

45

2008 2009 2010

MM

S u

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MM

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MMS Traffic MMS per Subscriber per Month

In 2010, MMS traffic stood at 1.5 million, nearly 5 percent down from 2009 levels Annual MMS use per subscriber recorded a decline of 31 percent during 2008-2010 With a high broadband household penetration of 93.7 percent, Cypriot subscribers are

more inclined to access online media content. MNOs are also focusing more on the mobile Internet, rather than MMS, to bolster their data revenues.

In 2010, MMS traffic witnessed a decline of 2 percent Consequently, annual MMS use per subscriber declined to 3.8 in 2010 from 4 in 2009 The introduction of a 6 percent tax on revenues generated from messaging services in

August 2009 and the promotion of mobile Internet data and content services have resulted in declining MMS traffic during 2008-2010

Nearly 6 million MMS were sent in Q3 2010 – a y-o-y fall of over 5 percent compared to Q3 2009



Denmark

Figure 114: MMS Traffic and MMS Use per Subscriber per Year – Cyprus (2008 – 2010)


Figure 115: MMS Traffic and MMS Use per Subscriber per Year – Denmark (2008 – 2010)


1.91.6 1.5

1.9

1.51.3

0

1

2

0

1

2

2008 2009 2010

MM

S u

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76.284.9

94.7

11.6 12.0 12.4

0

2

4

6

8

10

12

14

0

25

50

75

100

2008 2009 2010

MM

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MM

S T

raffi

c (I

n M

illio

n)

Year


MMS traffic grew by 11.5 percent in 2010 over 2009 In 2010, annual MMS use per subscriber has grown by over 3 percent y-o-y Subscribers of TDC, Telenor, Telia and 3 contributed 22.6, 22.6, 22.8 and 9.3 percent

respectively to the country’s total MMS traffic in H1 2010 Mobile broadband uptake in the country has probably resulted in slower growth in MMS

traffic during 2008-2010; dedicated data subscriptions for mobile broadband witnessed a staggering y-o-y growth of 78 percent in H1 2010 to reach 744,000



Finland

Figure 116: MMS Traffic and MMS Use per Subscriber per Year – Finland (2008 – 2010)


43.2 45.7 46.5

6.76.3

5.7

0

2

4

6

8

0

10

20

30

40

50

60

2008 2009 2010 MM

S u

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Yea

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MM

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Year


MMS traffic in Finland witnessed y-o-y growth of 1.7 percent in 2010 In 2010, MMS use per subscriber per year declined by nearly 9 percent from the 2009

level, owing to slower growth of MMS traffic compared to the subscriber base More than 20 million MMS were sent in H1 2010 MMS traffic growth slowed down in 2009 and 2010 due to the growing popularity of

other communication services



France

Figure 117: MMS Traffic and Use per Subscriber per Year – France (2008 – 2010)


368.0469.0

631.8

6.5

8.0

10.4

0

3

6

9

12

0

130

260

390

520

650

2008 2009 2010 MM

S u

se p

er S

ubsc

riber

per

Yea

r

MM

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Year


MMS traffic rose to nearly 632 million in 2010 – a y-o-y growth rate of approximately 35 percent

Rapid uptake of smartphones and the introduction of unlimited MMS and Internet access offers by MNOs have spurred the growth of MMS traffic in the country. Unlimited mobile Internet access leads to increased downloads of mobile content, such as ringtones, wallpapers, themes, music, videos and information, which subscribers tend to share with their friends and peers via MMS.

In 2010, MMS use per subscriber per year grew by 30 percent from 2009 levels 298 million MMS were generated in H1 2010—a y-o-y increase of 33 percent



Germany

40 Note: T he MMS us e per s ubscriber per year data points have been rounded off to one decimal place, hence the

numbers for 2009 and 2010 appear to be equal.

Figure 118: MMS Traffic and Use per Subscriber per Year – Germany (2008 – 2010)40


224.2 224.7 224.9

2.22.1 2.1

0.0

0.5

1.0

1.5

2.0

2.5

218

220

222

224

226

2008 2009 2010 MM

S u

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riber

per

Yea

r

MM

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Year


Germany’s MMS traffic growth has nearly stagnated in the past few years; year-on-year traffic grew by just 0.2 and 0.1 percent in 2009 and 2010 respectively

With minimal growth in MMS traffic, MMS use per subscriber per year has fallen in the past few years; it remained more or less constant in 2009 and 2010

Germany’s MMS traffic has stagnated even though MMS usage is low compared to other European countries; this has been brought about by high MMS prices and lower response rates to MMS marketing compared to mobile Internet and mobile applications’ ads. Mobile Internet and mobile application ads are quite popular in Germany due to better data networks, unlimited data plans, adoption of smartphones, availability of compelling mobile content and apps, and the popularity of mobile versions of the websites.



Ireland

Italy

Figure 119: MMS Traffic and MMS Use per Subscriber per Year – Ireland (2008 – 2010)


51.8 55.5

41.4

10.0 10.4

7.6

0

4

8

12

0

14

28

42

56

70

2008 2009 2010 MM

S u

se p

er S

ubsc

riber

per

Yea

r

MM

S T

raffi

c (I

n M

illio

n)

Year


The MMS market in Ireland declined by over 25 percent in 2010 against a now-verified increase of 7 percent in 2009

10.5 million MMS were sent in Q2 2010 – a drop of over 25 percent y-o-y and nearly 7 percent q-o-q

Q2 2010 was the fifth consecutive quarter to experience negative q-o-q growth in MMS traffic; the decline can be attributed to the following factors:

o Growing popularity of social networking on the mobile platform as a medium to share pictures, audio files and videos

o Increasing penetration of new technologies and service offerings, thus leading subscribers to shift to e-mail rather than MMS

o Deeper penetration of smartphones – this coupled with the availability of new technologies and services is helping operators to offer more value-added services, such as mobile broadband, e-mail and IM, to their subscribers

o Stagnated subscriber base growth across leading operators – Vodafone, O2 and Meteor

Italy is the largest MMS market in Europe, followed by the UK. Italy’s MMS traffic is almost four times the UK’s MMS traffic.

In 2010, MMS traffic in Italy recorded y-o-y growth of over 19 percent The growth in Italy’s MMS traffic has slowed down in 2010 due to the saturation in

subscriber base and movement of existing subscribers to technologically advanced products



Lithuania

41 Note: The MMS use per subscriber per year data points have been rounded off to one decimal place, hence the


Figure 120: MMS Traffic and MMS Use per Subscriber per Year – Italy (2008 – 2010)


Figure 121: MMS Traffic and MMS Use per Subscriber per Year – Lithuania (2008 – 2010)41


2,396.02,905.2

3,460.8

27.7

32.6

38.5

0

10

20

30

40

0

700

1,400

2,100

2,800

3,500

2008 2009 2010

MM

S u

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per

Yea

r

MM

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c (I

n M

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n)

Year


5.6 5.54.9

1.2 1.2

1.0

0.0

0.5

1.0

1.5

0

1

2

3

4

5

6

2008 2009 2010 MM

S u

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per

Yea

r

MM

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n)

Year


The Lithuanian MMS market is seeing a downward trend. MMS traffic fell by a further 12 percent in 2010.

MMS sent in Q2 2010 registered a y-o-y decline of 3.5 percent 1.2 million MMS were sent in Q2 2010 compared to 1.8 million in Q1 2010, equating to

a q-o-q fall of 36 percent In Q2 2010, Tele2, Omnitel and Bite Lietuva contributed 55.3, 23.0 and 20.4 percent

respectively to the country’s MMS traffic



Moldova

Poland

Figure 122: MMS Traffic and MMS Use per Subscriber per Year – Moldova (2008 – 2010)


2.4

4.0

6.0

1.2

1.7

2.4

0

1

2

3

0

2

4

6

8

2008 2009 2010 MM

S u

se p

er S

ubsc

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per

Yea

r

MM

S T

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n M

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n)

Year


MMS traffic grew at a CAGR of over 58 percent during 2008-2010 MMS use per subscriber per year increased by approximately 39 percent in 2010

against 43 percent growth achieved in 2009

In 2010, Poland’s MMS traffic stood at nearly 238 million, up by around 11 million from the 2009 level

Consequently, MMS use per subscriber per year rose to 5.3 in 2010 from 5.1 in 2009; a y-o-y increase of nearly 3 percent

Operators such as Orange and Plus are providing the following MMS plans and services to their subscribers:

o Orange users can now avail MMS even if they do not have MMS capable handsets. They can log on to Orange’s website and can send and receive MMS using Multi Box or MMS album.

o Orange and Plus have introduced services such as MMS postcard, audio books (where users can listen to the latest books read by actors), information subscriptions (recipes, news, horoscopes), MMS magazine and downloadable content to keep users interested in MMS

o The introduction of MMS contests, such as ‘Picture of the Day’ by Orange, also added to the country’s MMS traffic



Portugal



Figure 123: MMS Traffic and MMS Use per Subscriber per Year – Poland (2008 – 2010)42


Figure 124: MMS Traffic and MMS Use per Subscriber per Year – Portugal (2008 – 2010)


215.4227.0

237.8

5.1 5.1 5.3

0

2

4

6

150

200

250

2008 2009 2010

MM

S u

se p

er S

ubsc

riber

per

Y

ear

MM

S T

raffi

c (I

n M

illio

n)

YearMMS Traffic MMS per Subscriber per Year

76.8

102.4121.3

5.2

6.5

7.2

0

2

4

6

8

0

15

30

45

60

75

90

105

120

135

2008 2009 2010

MM

S u

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er S

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riber

per

Yea

r

MM

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n M

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n)

Year


In 2010, MMS traffic reached 121.3 million against a now verified 102.4 million in 2009, to register y-o-y growth of over 18 percent

In 2010, MMS use per subscriber per year stood at 7.2, up by 12 percent compared to end-2009

Growing familiarity with MMS services, favorable MMS prices and the adoption of MMS-enabled handsets will spur MMS usage growth in Portugal

30.3 million MMS were sent in Q2 2010, up by 19.7 percent from Q1 2010 and 19.5 percent from Q2 2009



Russia

Figure 125: MMS Traffic and MMS Use per Subscriber per Year – Russia (2008 – 2010)


106.0

156.8183.5

0.6

0.80.9

0.0

0.2

0.4

0.6

0.8

1.0

0

40

80

120

160

200

2008 2009 2010 MM

S u

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er S

ubsc

riber

per

Yea

r

MM

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n M

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n)

Year


MMS traffic increased by 17 percent in 2010 from the volume levels in 2009 Although Russia’s subscriber base is the highest in the region, its lags behind countries

such as Italy, the UK, France, Germany and Spain in terms of MMS traffic Consequently, MMS use per subscriber per year is relatively low compared to other

countries in the region, the primary reason being the lack of confidence among advertisers to use MMS as an additional promotional channel

To increase MMS use among subscribers, operators are taking several initiatives such as lowering MMS prices, creating the possibility for their subscribers to send MMS to even those networks which do not have MMS exchange contracts with them, and introducing MMS-based services. For example: MTS has launched an MMS magazine with a content-based subscription for users.



Slovakia

Slovenia43

43 Source: Statistical Office of the Republic of Slovenia

Figure 126: MMS Traffic and MMS Use per Subscriber per Year –Slovakia (2008 – 2010)


25.923.5 24.8

4.54.1 4.2

0

1

2

3

4

5

0

10

20

30

2008 2009 2010 MM

S u

se p

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per

Yea

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MM

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c (I

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Year


Slovakia has witnessed growth of 5.5 percent in MMS traffic in 2010 over 2009 In 2010, MMS use per subscriber per year grew at over 2 percent from the 2009 level The increase in broadband subscribers in 2009, as a result of new data plans,

increased the online content engagement of the Slovakians and actually caused a dip in the MMS traffic in 2009. However, MMS has again caught the operators’ attention as a means to increase data revenues. MNOs in Slovakia are promoting MMS use through various offers: Orange introduced several flat fee packages for subscribers with different levels of MMS usage. Subscribers had various options such as 70, 100, 200 or 400 message packs to select from, which allowed them to send MMS to any network within and outside the country; O2 Slovakia offered free SMS and MMS on its own network during the summer holiday (22nd June 2010 – end-August 2010) and Christmas (December 2010).

In 2010, Slovenia continued to enjoy another year of sharp growth in MMS traffic of nearly 52 percent over 2009 levels

Operators are promoting MMS aggressively in the country by offering discounts and bundle MMS deals

Nearly 13 million MMS were sent in H1 2010 against 8.6 million in H1 2009 —a y-o-y growth rate of over 51 percent

85 percent of MMS sent in Q2 2010 were sent by “household members”32



Spain

Figure 127: MMS Traffic and MMS Use per Subscriber per Year – Slovenia (2008 – 2010)


11.0

20.5

31.15.5

9.9

14.7

0

4

8

12

16

0

7

14

21

28

35

2008 2009 2010

MM

S u

se p

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riber

per

Yea

r

MM

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Year


Spain has registered a drop in both SMS and MMS use In 2010, MMS traffic witnessed a y-o-y decline of over 23 percent Consequently, MMS use per subscriber also experienced a y-o-y decline of 27 percent

in 2010 The decline in MMS traffic can be attributed to the following factors:

o Spain has the highest mobile Internet penetration in the region. It is one of the most highly advanced markets and subscribers are technically aware about data services. Spain has witnessed a swift movement of subscribers from SMS and MMS to advanced means of communication.

o Also, MMS campaigns are on a decline. Mobile Internet ads have gained popularity for mobile marketing campaigns. Ad agencies, enterprises and brand marketers are looking for innovative campaigns using Bluetooth and RFID technologies.



Sweden

Figure 128: MMS Traffic and MMS Use per Subscriber per Year – Spain (2008 – 2010)


Figure 129: MMS Traffic and MMS Use per Subscriber per Year – Sweden (2008 – 2010)


396.0

279.5214.5

7.7

5.3

3.8

0

2

4

6

8

0

110

220

330

440

2008 2009 2010

MM

S u

se p

er S

ubsc

riber

per

Yea

r

MM

S T

raffi

c (I

n M

illio

n)

Year


139.0156.0

186.3

12.813.4

15.1

0

4

8

12

16

0

50

100

150

200

2008 2009 2010 MM

S u

se p

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per

Yea

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Year


Over 19 percent growth was observed in MMS traffic in 2010 compared to 2009 Even though Sweden’s MMS traffic in 2010 was the highest among Nordic countries, it

lagged behind Norway in terms of MMS use per subscriber per year MMS use per subscriber per year grew by 13 percent in 2010 over 2009 In H1 2010, MMS traffic stood at 80 million, achieving y-o-y growth of over 19 percent



Switzerland

Figure 130: MMS Traffic and MMS Use per Subscriber per Year – Switzerland (2008 – 2010)


81.1

73.3

64.5

9.7

8.3

7.0

0

2

4

6

8

10

12

50

60

70

80

90

2008 2009 2010 MM

S u

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Year


Switzerland witnessed a drop in its MMS traffic during 2008-2010 In 2010, MMS traffic dropped to 64.5 million, a y-o-y fall of 12 percent MMS use per subscriber per year registered a y-o-y decline of nearly 15 percent in

2010 Subscribers have shifted to the mobile Internet for their day-to day activities, such as

sharing pictures/videos and social networking, which has resulted in declining MMS traffic. The shift is primarily due to new advanced data networks, falling data prices, launches of increasingly powerful handsets, and the introduction of mobile versions of websites. Also, advanced networks and high-speed Internet have opened several avenues for promotional campaigns, apart from MMS, for enterprises, brand marketers and ad agencies. These factors have all contributed to now placing the MMS market in to decline.



Turkey

Figure 131: MMS Traffic and Use per Subscriber per Year – Turkey (2008 – 2010)


191.0

99.0 107.6

3.0

1.51.7

0

1

2

3

0

50

100

150

200

2008 2009 2010 MM

S u

se p

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per

Yea

r

MM

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n M

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Year


After experiencing a y-o-y decline in MMS traffic in 2009, Turkey’s traffic witnessed an increase of nearly 9 percent in 2010

This downward traffic trend started in Q3 2008 and continued till Q4 2009; this can be attributed to a massive decline in Turkcell’s MMS traffic

Turkcell’s MMS traffic dropped from 62 million in Q3 2008 to 15.03 million in Q4 2009, a negative growth of nearly 76 percent

Launch of 3G services by Turkcell probably resulted in the decline in MMS traffic in 2009. To aggressively promote 3G services in the country, subscribers were offered free subscriptions during the pilot phase.

However, the MMS market rebounded in 2010 owing to the introduction of personalized MMS plans, a variety of MMS-based information packs, and the availability of affordable MMS capable handsets

Users sent nearly 28 million MMS in Q3 2010, an increase of over 33 percent in comparison to Q3 2009 traffic



The UK

Other Markets

Figure 132: MMS Traffic and MMS Use per Subscriber per Year – The UK (2008 – 2010)


772.2

839.2

912.110.3

10.7

11.2

9

10

11

12

700

750

800

850

900

950

2008 2009 2010

MM

S u

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ubsc

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per

Yea

r

MM

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Year


There has been slow growth in MMS traffic in Norway with just over 2 percent y-o-y growth in 2010

In 2010, Iceland and Serbia witnessed impressive y-o-y growth of 39.6 and 24.3 percent respectively

Iceland’s MMS use per subscriber per year recorded a rise of nearly 35 percent in 2010 over 2009 MMS usage

Estonia, Hungary, Malta and Romania witnessed a decline in their MMS traffic in 2010 Norway experienced significant broadband growth in 2009 causing MMS traffic to dip.

But the MMS market is bouncing back with the bolstering growth in the A2P segment. Declining trends for MMS traffic in Estonia and Hungary are attributed to market

fluctuations in the country’s subscriber base for 2009 and 2010

MMS traffic posted strong y-o-y growth of nearly 9 percent in 2010 MMS traffic generated in 2010 was the second highest volume in Europe MMS use per subscriber per year witnessed y-o-y growth of nearly 5 percent in 2010 MMS traffic is growing in the country owing to MMS campaigns. For example: O2, the

country’s largest operator, ran a six-month long location-based mobile marketing campaign for Starbucks and L’Oreal via SMS and MMS.

Companies are discovering innovative ways to leverage the on-the-go accessibility of mobile phones. For example: in 2010, retailers introduced MMS-based virtual royalty cards, and airlines introduced MMS-based ticketing.

However, MMS traffic growth slowed down in 2010, primarily due to the popularity of accessing social networking through handsets and thus sharing pictures, video and audio clips with a larger audience by uploading them just once on their social networking profiles. This contributed to lower actual MMS traffic in 2009 compared to our earlier stated numbers in the previous edition of this report.



44 Note: The MMS traffic has been rounded off to one decimal place, hence Malta’s numbers for 2008-2010 appear

to be equal. 45 Note: The MMS use per subscriber per year data points have been rounded off to one decimal place, hence

Estonia’s numbers for 2008 and 2009 appear to be equal.

Figure 133: MMS Traffic in Estonia, Iceland and Malta (In Million, 2008 – 2010)44


Figure 134: MMS Use per Subscriber per Year in Estonia, Iceland and Malta (2008 – 2010)45


1.8

0.9

0.3

1.7

1.3

0.3

1.61.8

0.3

0.0

0.5

1.0

1.5

2.0

2.5

Estonia Iceland Malta

MM

S T

raffi

c (I

n M

illio

n)

Country

2008 2009 2010

1.1

2.9

0.91.1

3.9

0.71.0

5.3

0.6

0

1

2

3

4

5

6

Estonia Iceland Malta

MM

S U

se p

er S

ubsc

riber

per

Yea

r

Country

2008 2009 2010



46 Note: The MMS use per subscriber per year data points have been rounded off to one decimal place, hence

Romania’s numbers for 2009 and 2010 appear to be equal.

Figure 135: MMS Traffic in Hungary, Norway, Romania and Serbia (In Million, 2008 – 2010)


Figure 136: MMS Use per Subscriber per Year in Hungary, Norway, Romania and Serbia (2008 – 2010)46


40.1

127.0

13.0

33.834.8

103.0

12.3

41.129.1

105.1

11.6

51.0

0

35

70

105

140

Hungary Norway Romania Serbia

MM

S T

raffi

c (I

n M

illio

n)

Country

2008 2009 2010

3.7

24.7

0.53.73.1

21.5

0.4

4.22.5

20.3

0.4

4.9

0

5

10

15

20

25

30

Hungary Norway Romania SerbiaMM

S U

se p

er S

ubsc

riber

per

Yea

r

Country

2008 2009 2010



Table 20: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Europe (In Percent, 2010)47


Contribution to MMS Traffic (In Percent, 2010)

Austria 1.15 0.21

Bosnia and Herzegovina 0.39 0.05

Bulgaria 1.01 0.04

Croatia 0.58 0.15

Cyprus 0.11 0.01

Denmark 0.73 0.59

Estonia 0.15 0.01

Finland 0.79 0.29

France 5.79 3.97

Germany 10.09 1.41

Hungary 1.10 0.18

Iceland 0.03 0.01

Ireland 0.51 0.26

Italy 8.54 21.75

Lithuania 0.46 0.03

Malta 0.04 0.00*

Moldova 0.24 0.04

Norway 0.48 0.66

Poland 4.21 1.49

Portugal 1.57 0.76

Romania 2.79 0.07

Russia 20.28 1.15

Serbia 0.99 0.32

Slovakia 0.57 0.16

Slovenia 0.20 0.20

Spain 5.36 1.35

Sweden 1.17 1.17


Turkey 6.20 0.68

The UK 7.68 5.73 Source: Portio Research Ltd.


percent. * Note: Malta’s contribution to Europe’s MMS traffic is very small (close to 0.0017 percent) and it appears to be

zero due to rounding off to two decimal places.



Asia Pacific

Owing to its huge subscriber base, Asia Pacific still generates the highest MMS traffic worldwide. Total MMS traffic in 2010 stood at 159.2 billion and is expected to reach just shy of 397 billion in 2015, growing at a CAGR of 20 percent during 2010-2015. Asia Pacific’s MMS traffic constituted 64 percent of worldwide MMS traffic in 2010, and by end-2015 the region’s contribution to worldwide MMS traffic is expected to increase to 67 percent. The MMS market in Asia Pacific is dominated by China, the biggest wireless market worldwide. The region’s MMS traffic increased by nearly 43 billion in 2010 over 2009 volumes; and China’s MMS traffic alone contributed approximately 30 billion to this regional increase in the traffic. In 2010, MMS traffic from China formed over 52 percent of Asia Pacific’s total MMS traffic. Other countries which experience high MMS use include Japan, South Korea, Australia and India. Asia Pacific’s MMS traffic exploded in 2009 far beyond expectations and the trend continued in 2010. Consequently, MMS traffic forecasts for 2011-2015 have been significantly scaled up compared to last year’s edition of this report, ‘Mobile Messaging Futures 2010-2014’. During 2009 and 2010, operators launched several MMS-based services, along with flat rates and bundled MMS. Most MNOs have signed interoperability agreements and several MMS-capable handsets are at users’ disposal. The figure below depicts MMS traffic in Asia Pacific during 2008-2015.

Figure 137: MMS Traffic – Asia Pacific (In Billion, 2008 – 2015F)


F – Forecasted

MMS revenue for Asia Pacific in 2010 was USD 10.9 billion. It is expected to grow at a CAGR of approximately 15.1 percent during 2010-2015 to reach USD 21.9 billion in 2015. Subscribers in Asia Pacific contributed 33.4 percent of worldwide MMS revenues during 2010. The revenue share is expected to increase during the coming years to reach 35.4 percent by end-2015.

51.4

116.4

159.2

209.5

267.6

322.1

363.6396.5

0

90

180

270

360

450

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

MM

S T

raffi

c

(In

Bill

ion)

Year

During 2009 and 2010, operators launched several MMS-based services, along with flat rates and bundled MMS.



The figure below depicts MMS revenue in Asia Pacific during 2008-2015.

Figure 138: MMS Revenue – Asia Pacific (In USD Billion, 2008 – 2015F)


F – Forecasted

The extraordinary growth in MMS use in China has a significant impact on the overall MMS market in the Asia Pacific region. MMS use per subscriber is now expected to move upward from 68.4 to 106 during 2010-2015. The figure below highlights the growth trend in MMS use per subscriber per year in the Asia Pacific region during 2008-2015.

8.39.2

10.9

13.215.3

18.0

20.221.9

0

5

10

15

20

25

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

MM

S R

even

ue

(In

US

D B

illio

n)

Year

The extraordinary growth in MMS use in China has a significant impact on the overall MMS market in the Asia Pacific region.

Figure 139: MMS Use Per Subscriber Per Year – Asia Pacific (2008 – 2015F)


F – Forecasted

33.1

60.268.4

77.989.0

98.0103.0 106.0

0

20

40

60

80

100

120

2008 2009 2010 2011F 2012F 2013F 2014F 2015FMM

S U

se P

er S

ubsc

riber

Per

Yea

r

Year




Figure 140: MMS Traffic and MMS Use per Subscriber per Year – Australia (2008 – 2010)


257.0

381.7

475.1

11.5

14.616.0

0

5

10

15

20

0

100

200

300

400

500

2008 2009 2010 MM

S u

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per

Yea

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MM

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Year


MMS traffic witnessed y-o-y growth of more than 24 percent in 2010 This growth pushed MMS use per subscriber per year to 16 MMS in 2010 from 14.6

MMS in 2009 Bundled MMS plans and mobile marketing have kept MMS growing in Australia in the

A2P segment. However, increasing broadband penetration has slowed down MMS traffic growth, predominantly in the P2P segment. In 2010, mobile broadband tariffs have almost been halved compared to 2009.



Bangladesh

Figure 141: MMS Traffic and MMS Use per Subscriber per Year – Bangladesh (2008 – 2010)


12.0

18.9

28.6

0.3

0.4

0.5

0.0

0.2

0.4

0.6

0

5

10

15

20

25

30

2008 2009 2010

MM

S u

se p

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riber

per

Yea

r

MM

S T

raffi

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Year


MMS traffic grew by more than 51 percent in 2010 from 2009’s MMS volume MMS use per subscriber has experienced y-o-y growth of over 24 percent in 2010 Operators in Bangladesh have collaborated with messaging solution providers to push

services such as GPRS and MMS. Also, local operators have increased interoperability with MNOs worldwide to increase the use of international MMS.

To leverage the growing popularity of social networking, operators have formed a link between MMS and social networking websites. Subscribers can now upload pictures to their facebook accounts through MMS.



China

Figure 142: MMS Traffic and MMS Use per Subscriber per Year – China (2008 – 2010)


30,000.0

55,570.4

83,465.652.2

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More than 83 billion MMS were sent in 2010—a y-o-y growth of over 50 percent China is the leading country worldwide in terms of MMS traffic, followed by the US The huge mobile subscriber base is the main factor propelling MMS traffic in China MMS use per subscriber per year witnessed an increase of over 29 percent in 2010 China Mobile had 155 million MMS users by end-H1 2010; this was an addition of 8

million users from end-2009 In 2009, China’s MMS traffic exploded to surpass our earlier expectations – as

published in the previous edition of this report. In 2010, MMS outpaced SMS in terms of annual traffic growth The main driver for the stupendous growth in MMS traffic in China is A2P traffic.

Approximately 70 percent of Chinese MMS traffic is generated from the A2P segment. MMS usage is quite diversified, with services such as news, sports and horoscopes updates, movie trailers, discount coupons, and magazine highlights subscription etc. In 2009, around 40 million subscribers paid for receiving daily news headlines on their handsets via MMS. This alone reportedly cannibalised 39 percent of Chinese newspapers’ subscriber base.

Operators are also promoting MMS among the P2P segment by offering unlimited MMS plans and downloadable content on their websites, which subscribers can share with their friends



India

China vs. India – The Big Difference

Figure 143: MMS Traffic and MMS Use per Subscriber per Year – India (2008 – 2010)


520.6676.8

846.0

1.8

1.61.4

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MMS traffic grew by 25 percent in 2010 to reach 846 million The aggressive growth in subscriber numbers has resulted in declining MMS use per

subscriber MMS use per subscriber per year fell by over 11 percent in 2010 from the 2009 level Operators are focusing more on subscriber acquisitions than pushing advanced data

services. Moreover, the high cost of MMS and very low penetration of MMS capable handsets is a big barrier to MMS adoption in the country.

India lags far behind China in MMS usage per subscribers, even though it has a relatively comparable subscriber base; this can be attributed to the inability of the market to capitalize on MMS as an advertising tool. And short-sightedness on pricing.

China and India are the two largest mobile markets, having subscriber bases of 785.5 and 635.5 million respectively. Both countries also lead in terms of year-on-year subscriber additions. However, in the case of MMS traffic growth, they differ by quite a significant margin. In 2010, while China had annual MMS traffic of 83.5 billion, India lagged far behind with annual traffic of just 846 million – just 1 percent of Chinese MMS traffic.

The primary reasons for the difference in response to MMS in these two countries have been the smartphone penetration and MNOs’ initiatives to boost MMS. With the high penetration of smartphones and MMS-capable handsets, the reach of MMS in China is quite large, while in India’s case it is still limited to only a small section of the subscriber base. Indian MNOs are focusing more on subscriber acquisition by offering cheap voice calls and better network coverage. But Chinese operators are promoting their data services, along with capturing the attention of the untapped subscriber base. Chinese MNOs have been promoting MMS in the P2P segment by offering unlimited MMS plans, while for the significant A2P segment, operators are providing diversified services – from mobile adverts to daily media content – to ensure MMS is being used everywhere.



Singapore

Table 21: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Asia Pacific (In Percent, 2010)48



Australia 1.20 0.30

Bangladesh 2.60 0.02

China 33.12 52.44

India 27.85 0.53

Singapore 0.28 0.04



percent.

Figure 144: MMS Traffic and MMS Use per Subscriber per Year – Singapore (2008 – 2010)


45.054.1 56.7

7.5

8.28.1

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The y-o-y MMS traffic growth slowed to 4.6 percent in 2010 Consequently, MMS use per subscriber per year witnessed a dip in 2010 StarHub, the country’s second largest operator, saw its subscribers exchanging 8.3

million MMS in H1 2010; MMS traffic for the MNO in H1 2010 saw y-o-y growth of over 12 percent



North America North America is among the most advanced mobile markets worldwide with a high uptake of data services. In H2 2009, Apple upgraded to iPhone OS 3 – an operating system (OS) capable of supporting MMS – which boosted the potential of MMS in the region and especially in the US, which generated nearly 98 percent of North America’s MMS traffic in both 2009 and 2010. Also, discounts and offers revolving around MMS – such as bundled MMS and unlimited MMS plans – and improved interoperability provided a further boost to MMS traffic in the region. The mobile messaging market has seen unprecedented growth in the past two years in North America. MMS traffic grew by 126.6 percent in 2009 and 91.9 percent in 2010 year-on-year. In 2010, North America generated approximately 27 percent of worldwide MMS traffic – the second largest regional contribution after Asia Pacific. Traffic is expected to increase from 67.6 billion in 2010 to nearly 155 billion MMS by end-2015, growing at a CAGR of 18 percent. With reference to last year’s edition of this report, ‘Mobile Messaging Futures 2010–2014’, we have brought down North America’s MMS traffic for the forecast period 2011-2015 (like Europe) even though 2010 traffic has surpassed earlier projections. The primary reason behind this change is that North American MMS traffic growth is expected to slow down in the coming years due to the launch of advanced mobile networks such as 3G, LTE and WiMAX. With the widening introduction of these technologies, users are empowered to access the mobile Internet and this facilitates several differing options, such as e-mail, social networking websites, blogs and online databases, to share pictures, audio and video clips with others worldwide. The figure below shows MMS traffic in North America from 2008 to 2015.

Figure 145: MMS Traffic – North America (In Billion, 2008 – 2015F)


F – Forecasted

North America’s MMS revenue will rise to USD 21.7 billion in 2015—at a CAGR of 17.4 percent between 2010 and 2015, the second-highest growth rate among all regions (after Africa and Middle East). With reference to the previous edition of this report, MMS revenues for the forecast period 2011-2015 have been increased from our earlier stated numbers due

15.5

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The mobile messaging market has seen unprecedented growth in the past two years in North America.



to the bolstering growth in A2P’s share of regional MMS traffic. Premium-MMS will be on the rise during the forecast period. The figure below depicts MMS revenue in North America during 2008-2015.

Figure 146: MMS Revenue – North America (In USD Billion, 2008 – 2015F)


F – Forecasted

Faster growth in the region’s MMS traffic compared to its subscriber base is expected to increase the MMS use per subscriber per year from nearly 209 MMS in 2010 to approximately 386 MMS in 2015. The figure below highlights the projected growth in annual MMS use of a subscriber in the region during 2008-2015.

5.77.5

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Faster growth in the region’s MMS traffic compared to its subscriber base is expected to increase the MMS use per subscriber per year from nearly 209 MMS in 2010 to approximately 386 MMS in 2015.

Figure 147: MMS Use Per Subscriber Per Year – North America (2008 – 2015F)


F – Forecasted

54.7

116.4

208.6249.9

289.6321.5

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The US

Figure 148: MMS Traffic and MMS Use per Subscriber per Year – Canada (2008 – 2010)


312.9

729.2

1,352.9

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The Canadian MMS market grew by 85.5 percent in 2010 MMS use per subscriber per year increased y-o-y by over 75 percent in 2010 to reach

approximately 57 MMS Operators have added MMS in talk time and smartphone bundled packages offering

unlimited MMS use

MMS traffic has witnessed stupendous growth in 2010, increasing by 92 percent to reach 66.2 billion MMS

In 2010, MMS outpaced SMS in terms of growth in traffic After the launch of iPhone OS 3 (capable of supporting MMS) in H2 2009, MMS traffic

witnessed incredible growth during H2 2009 and 2010. MMS traffic grew at a CAGR of 108.5 percent between 2008-2010.

Improved interoperability, linking of MMS with social networking websites, unlimited nationwide picture/video messaging plans, and MMS-based services such as MMS alerts based on users’ choice (horoscope, news, sports, travel, weather, jokes and greetings), has further boosted MMS traffic in the country

MMS traffic has witnessed significant growth in both A2P and P2P segments due to attractive plans and product offerings



MMS in the USA: Rapid growth and how that growth is measured

Table 22: Country’s Contribution to Regional Subscriber Base and MMS Traffic — North America (In Percent, 2010)



Canada 7.21 2.00

The US 92.79 98.00


Figure 149: MMS Traffic and MMS Use per Subscriber per Year – The US (2008 – 2010)


15,234.6

34,500.0

66,242.0

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When looking at the data for US MMS traffic, readers should be aware that US MNOs report ‘total traffic carried’ over their networks, being both MMS messages sent (MO: Mobile Originated) and MMS messages received (MT: Mobile Terminated). In the US, network operators charge for both sending AND receiving multimedia messages, and hence, when reporting traffic data, they report total messages carried, not just messages sent. In almost every other country of the world, MNOs charge for sending messages only, and hence traffic data in those other countries is counted only once, as total messages sent. We work with the US market data the way the US MNOs report it, as total traffic carried. When looking at the value of the market, the US data in this report can be read at face value, because each message, MMS, sent and received, represents a separate ‘billing event’ for a US MNO. However, when looking at traffic data in the US compared to elsewhere in the world, and hence when looking at our overall North American MMS traffic forecasts compared to other regions, it is important to remember that the US (and hence North American) data counts BOTH messages sent and messages received in the huge US market.



Latin America Latin American markets typically have the lowest MMS use compared to any other region worldwide, but lately the region has started picking up, with growth predominantly coming from countries such as Brazil and Argentina. MMS use was constrained primarily by lack of integration of mobile phones into the marketing mix, lack of consumer awareness and technical know-how, and low affordability. The release of MMS-capable handsets at affordable prices, falling MMS prices, increased interoperability and greater involvement of ad agencies, enterprises, brand marketers, corporations and public agencies in marketing via MMS (in part, due to Syniverse Technologies’ short code initiative49

Figure 150: MMS Traffic – Latin America (In Billion, 2008 – 2015F)

), will facilitate the growth of MMS messaging in the region. Total MMS traffic for Latin American markets during 2010 was 2.2 billion. This is expected to grow at a CAGR of approximately 25 percent during 2010-2015 to reach 6.6 billion by end-2015. The figure below shows the MMS traffic of Latin America from 2008 to 2015.


F – Forecasted

MMS revenue for Latin America during 2010 amounted to USD 1 billion and is expected to grow at a CAGR of approximately 11 percent during 2010-2015 to reach USD 1.6 billion in 2015.

49 Note: Syniverse Technologies’ short code initiative is explained in detail in the earlier SMS chapter.

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Total MMS traffic for Latin American markets during 2010 was 2.2 billion. This is expected to grow at a CAGR of approximately 25 percent during 2010-2015 to reach 6.6 billion by end-2015.



The figure below depicts the forecast MMS revenue in Latin America during 2008-2015.

Figure 151: MMS Revenue – Latin America (In USD Billion, 2008 – 2015F)


F – Forecasted

MMS use per subscriber per year is forecast to rise from 4.2 in 2010 to 9.8 in 2015. The figure below highlights the projected growth in the annual MMS use of a subscriber in the region during 2008-2015.

0.70.8

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MMS use per subscriber per year is forecast to rise from 4.2 in 2010 to 9.8 in 2015.

Figure 152: MMS Use Per Subscriber Per Year – Latin America (2008 – 2015F)


F – Forecasted

3.4 3.74.2

5.3

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Brazil

Figure 153: MMS Traffic and MMS Use per Subscriber per Year – Argentina (2008 – 2010)


152.0177.2

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In 2010, MMS use per subscriber per year rose by more than 14 percent over 2009 Annual MMS traffic grew by 23 percent in 2010 over 2009 traffic Argentina is one of the relatively advanced markets in the Latin American region and

experiences the highest MMS use per user compared to other local major markets Mobile broadband has been quite popular in Argentina and large numbers of

subscribers are becoming more engaged with online content. This has slowed the expected growth of MMS traffic.

Annual MMS traffic increased by 54 percent in 2010 MMS use per subscriber experienced better growth in 2010 compared to 2009 Lately, MMS traffic has started picking up in the country owing to the following reasons:

o Introduction of Latin America’s common short code hub: Syniverse Technologies launched a centralised registration of common short codes for subscribers across 20 countries in Latin America. Ad agencies and enterprises are no longer required to lease a short code from individual operators in each country. Brazil, with mobile marketing still at a nascent stage, is expected to benefit the most from the service in terms of MMS traffic.

o Increased interest of Brazilian ad agencies in mobile marketing o Better deals on smartphones and handsets with MMS capabilities o Campaigns, such as the Pontomobi campaign which invited subscribers to

submit a song recorded in their own voice, intend to popularise MMS in the country



Colombia

Figure 154: MMS Traffic and MMS Use per Subscriber per Year – Brazil (2008 – 2010)


Figure 155: MMS Traffic and MMS Use per Subscriber per Year – Colombia (2008 – 2010)


266.0392.7

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• In 2010, Colombia’s MMS traffic grew by 180 percent to reach 25.9 million compared to 9.2 million in 2009

• MMS use per subscriber per year achieved a staggering y-o-y growth rate of over 174 percent in 2010 percent

• The massive rise in MMS traffic is actually getting reflected due to a change in the counting method of traffic. Previously, MMS sent to multiple recipients at the same time was counted as one MMS, but now each MMS sent to each recipient is counted separately.



Peru

Venezuela



Figure 156: MMS Traffic and MMS Use per Subscriber per Year – Peru (2008 – 2010)50


16.2 16.819.0

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In 2010, MMS traffic grew by more than 44 percent compared to 2009 traffic Strong growth in MMS traffic resulted in an increase in MMS use per subscriber in 2010 MMS use per subscriber per year rose to 5.8 in 2010 from 4.2 in 2009, a growth of over

38 percent

2010 saw a y-o-y increase of nearly 13 percent in MMS traffic Faster growth in MMS traffic compared to subscriber base increases resulted in rising

MMS use per subscriber in 2010 9.7 million MMS were sent in H1 2010 The respective shares of Telefonica, America Movil and Nextel in H1 2010 MMS traffic

stood at 34.2 percent, 33.6 percent and 32.2 percent



Table 23: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Latin America (In Percent, 2010)51




Brazil 36.49 27.80

Colombia 7.94 1.19

Peru 4.35 0.87

Venezuela 5.73 8.04



percent.

Figure 157: MMS Traffic and MMS Use per Subscriber per Year – Venezuela (2008 – 2010)


76.5

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Africa and Middle East Mobile markets in Africa and Middle East still formed less than 2 percent of worldwide MMS traffic during 2010, whereas the total subscriber base in the region formed approximately 15 percent of the worldwide subscriber base by end-2010. Even though the region’s MMS traffic is expected to grow from 3.9 billion MMS in 2010 to 11.4 billion MMS in 2015, at a CAGR of 24 percent during 2010-2015, its contribution to the worldwide traffic will remain less than 2 percent throughout the period. Most of these markets show low adoption and use of MMS services because subscribers are still largely unexposed to these services compared to subscribers in developed markets worldwide. In 2010, operators floated MMS competitions in their respective markets to increase awareness and develop subscriber interest in MMS. High prices of feature phones have also stood in the way of widespread MMS uptake, since they are still not affordable for the average subscriber in the region. Despite overall low uptake for MMS in Africa and Middle East, some regional markets have been performing much better than others. Countries such as Iran, Morocco and Oman witnessed over 30 percent growth in MMS traffic, and South Africa saw incredible growth of more than 60 percent in MMS traffic in 2010. These countries surpassed earlier expected growth and thus the MMS traffic forecasts have been increased compared to our forecast in last year’s edition of this report, ‘Mobile Messaging Futures 2010-2014’. Operators in Middle Eastern markets, such as Iran and Oman, are making efforts to push data services through investments in high-speed networks. Operators in African markets, such as South Africa and Morocco, are taking initiatives to promote MMS to increase their data revenues. The figure below shows the MMS traffic of Africa and Middle East from 2008 to 2015.

Figure 158: MMS Traffic – Africa and Middle East (In Billion, 2008 – 2015F)


F – Forecasted

Annual MMS revenue generated in the region is projected to grow at a CAGR of 22.5 percent from USD 1.3 billion in 2010 to USD 3.7 billion in 2015. The region’s contribution to worldwide MMS revenue will increase from 4.1 percent in 2010 to 6 percent in 2015. With reference to the previous edition of this report, we would like to highlight that MMS revenues for the forecast period 2011-2015 have been increased from our earlier stated numbers due to the increase in forecasted MMS traffic for the same period.

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Countries such as Iran, Morocco and Oman witnessed over 30 percent growth in MMS traffic, and South Africa saw incredible growth of more than 60 percent in MMS traffic in 2010.



The figure below depicts the forecast MMS revenue in Africa and Middle East during 2008-2015.

Figure 159: MMS Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F)


F – Forecasted

MMS use per subscriber per year stood at 5.3 in 2010 and is forecast to increase to 9.6 by end-2015. In 2010, MMS use per subscriber was the second lowest among the regions worldwide after Latin America. However, by end-2015, Africa and Middle East will have the lowest MMS usage per subscriber. The figure below highlights the projected annual MMS use of a subscriber in the region during 2008-2015.

0.71.0

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MMS use per subscriber per year stood at 5.3 in 2010 and is forecast to increase to 9.6 by end-2015.

Figure 160: MMS Use Per Subscriber Per Year – Africa and Middle East (2008 – 2015F)


F – Forecasted

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Democratic Republic of Congo

Iran

Figure 161: MMS Traffic and MMS Use per Subscriber per Year – Democratic Republic of Congo (2008 – 2010)


20.0

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In 2010, annual MMS traffic grew by 31 percent y-o-y MMS use per subscriber per year rose to 3.8 in 2010, a y-o-y growth rate of 15 percent DRC’s MMS use per subscriber per year is higher than Iran, even though MMS traffic is

only a third of the latter

Annual MMS traffic increased by 31 percent in 2010 Faster growth in MMS traffic compared to just 10 percent growth in the subscriber base

in 2010 has led to an increase in MMS use per subscriber per year This upward trend can be attributed to the following factors:

o Operators are offering several MMS discounts and offers to push MMS services in the country. For example: MTN, Iran’s second largest operator, ran a ‘free MMS with each MMS sent’ offer for its subscribers from 23rd September 2010 to 21st December 2010.

o In late 2010, MTN Irancell launched an MMS competition wherein subscribers can participate by submitting photos through MMS with the operator. The deadline for the competition is 5th January 2011. The winners will be decided based on MTN subscriber votes. Participants can, at anytime, request their photo’s status and the comments received on their photos. The requested information will be communicated to a subscriber through an MMS. MNOs are taking such initiatives to increase subscriber interest in MMS services.



Kenya



Figure 162: MMS Traffic and MMS Use per Subscriber per Year – Iran (2008 – 2010)


Figure 163: MMS Traffic and Use per Subscriber per Year – Kenya (2008 – 2010)52


68.0

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Mobile data services are the fastest growing segment in Kenya’s telecom market In 2010, Kenya’s MMS traffic rose to 7 million, a y-o-y increase of 32.5 percent MMS use per subscriber per year grew by 16 percent in 2010 from the 2009 level This can be attributed to falling MMS prices and promotional offers by operators during

the same period



Morocco

Figure 164: MMS Traffic and Use per Subscriber per Year – Morocco (2008 – 2010)


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MMS traffic grew by more than 33 percent in 2010 compared to 2009 MMS use per subscriber per year witnessed y-o-y increases of over 15 percent in both

2009 and 2010 Reduced MMS prices, bundled/unlimited MMS offers and MMS-based services have

helped drive the uptake of MMS in the country Examples of MMS-based services offered by operators in Morocco:

o Anonymous chat through MMS: Maroc Telecom launched MMSZone which allows subscribers to chat anonymously by sending an MMS to a shortcode number. Users can create their profile, set a profile picture, view profiles of other users and share image, audio and video files with other chatters.

o Alerts: These allow subscribers to receive their choice of information such as news, sports, reviews, jokes, recipes, train schedule and stock exchange prices and index



Oman

Figure 165: MMS Traffic and MMS Use per Subscriber per Year – Oman (2008 – 2010)


23.233.0

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Over 14 million more MMS were generated in 2010 compared to 2009 With usage at nearly 12 MMS per subscriber per year, MMS use is higher than other

major markets in the region Operators are determined to push MMS. For example:

o Oman Mobile, the country’s largest operator, introduced an unlimited on-net (within the same network) MMS plan in 2010

o Nawras Telecom, Oman’s second largest operator, launched an MMS picture competition in the first half of 2010 to increase awareness and interest in MMS services among subscribers. The competition saw more than 40,000 entries. The competition acted as a platform wherein a large chunk of subscribers got MMS settings configured on their handsets and tried MMS for the first time.



South Africa

Figure 166: MMS Traffic and MMS Use per Subscriber per Year – South Africa (2008 – 2010)


132.0

276.5

442.62.8

5.6

8.6

0

3

6

9

0

90

180

270

360

450

2008 2009 2010

MM

S u

se p

er S

ubsc

riber

per

Yea

r

MM

S T

raffi

c (I

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illio

n)

Year


South Africa generates the highest MMS traffic in the region The county recorded over 60 percent y-o-y growth in annual MMS traffic in 2010 MMS use per subscriber per year grew by 54 percent in 2010 compared to 2009 South Africa is one of the major markets for A2P MMS, with companies here having

used MMS marketing for a number of years now. With a continuous fall in prices of smartphones, they are becoming more affordable and this is increasing smartphone penetration in the country; this leads to further proliferation in an already sizeable MMS-based mobile advertising market.

Moreover, in 2010 more and more enterprises got involved in MMS-based services: o Companies including RCS Group and Stanlib launched MMS-based

personalised bank statements, which allow subscribers to view their bank statements via their handsets

o Mobile ticketing gained popularity among diverse business sectors such as transport (airlines, rail, and metros) and entertainment (movie theatres and event management etc).

The FIFA World Cup 2010, held in South Africa, saw subscribers sharing pictures and videos with their local and international friends; this further boosted MMS traffic in 2010



Table 24: Country’s Contribution to Regional Subscriber Base and MMS Traffic — Africa and Middle East (In Percent, 2010)53



DR of Congo 1.39 0.97

Iran 8.16 3.25

Kenya 2.71 0.18

Morocco 3.81 2.27

Oman 0.55 1.21






Chapter 6 Mobile E-mail



Mobile E-mail Mobile e-mail allows users to send and receive e-mails on-the-go without having to stay hooked up to a desktop. Subscribers can access mobile e-mail through three modes: Web e-mail, pull e-mail, and push e-mail by enabling Internet access on their handsets. Mobile e-mail has to-date been more successful within the enterprise segment than with consumers. The initial growth of mobile e-mail was driven by the enterprise segment. This segment has been reliant on mobile e-mail for many years and accounts for the major chunk of the mobile e-mail user base. Mobile e-mail has empowered employees to work and communicate with their peers regardless of their physical location. As written previously, gone are the days when employees reported to the same workstation in the same office year after year, as enterprises are now increasingly recognising the productivity gains associated with a remote workforce. With mobile e-mail, subscribers can utilise their unproductive time, such as waiting for a lift, while stuck in a traffic jam, or standing in a queue, for checking and replying to important e-mails. Checking a mobile phone every five minutes for new e-mails has become more of a habit in today’s world. Lately – with the upsurge in smartphone penetration, adoption of advanced networks providing high-speed Internet access, discounted and unlimited data plans, improved interoperability and newer messaging solutions – the consumer segment has also started gaining momentum. The gap between enterprise and consumer segments’ shares of the total mobile e-mail user base is gradually shrinking. Europe and North America are already witnessing high mobile e-mail usage among the subscriber base owing to advanced network technologies and proper infrastructure being in place. Meanwhile, the emerging markets of Asia Pacific, Latin America and Africa and Middle East lag far behind the developed nations in terms of mobile e-mail penetration. However, with heavy investments being made on infrastructure and pledged migration to advanced networks, strong growth is expected in the emerging markets in the next few years. By end-2010, the worldwide mobile e-mail user base stood at 480.6 million, representing a y-o-y growth rate of 43.4 percent. By end-2015, the mobile e-mail user base is expected to cross 1.9 billion, growing at a CAGR of 31.7 percent during 2010-2015. The next figure shows the growth of the worldwide mobile e-mail user base during 2008-2015.

By end-2010, the worldwide mobile e-mail user base stood at 480.6 million, representing a y-o-y growth rate of 43.4 percent. By end-2015, the mobile e-mail user base is expected to cross 1.9 billion, growing at a CAGR of 31.7 percent during 2010-2015.



Figure 167: Mobile E-mail Users – Worldwide (In Million, 2008 – 2015F)54


F – Forecasted

In 2010, mobile e-mail users worldwide formed 9.1 percent of the worldwide mobile subscriber base. This share is now forecast to grow more swiftly in the coming years and reach nearly 26 percent by end-2015.



245.6335.1

480.6

669.9

903.3

1,184.3

1,515.2

1,901.4

0

400

800

1200

1600

2000

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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(In

Mill

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In 2010, mobile e-mail users worldwide formed 9.1 percent of the worldwide mobile subscriber base. This share is now forecast to grow more swiftly in the coming years and reach nearly 26 percent by end-2015.

Figure 168: Mobile E-mail Penetration – Worldwide (In Percent, 2008 – 2015F)


F – Forecasted

6.1%7.2%

9.1%11.6%

14.4%

17.7%

21.5%

25.9%

0%

5%

10%

15%

20%

25%

30%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

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etra

tion

(In

Per

cent

)

Year



In 2010, mobile e-mail generated USD 25.4 billion in revenue worldwide, and this figure is expected to surpass USD 82 billion by end-2015, after growing at a CAGR of 26.6 percent during 2010-2015. This edition’s revenue forecasts are more aggressive compared to mobile e-mail revenue forecasts in the previous fourth edition of this report. The reason behind the change is the withdrawal of unlimited data plans by some of the major operators, such as AT&T and Orange in the developed markets of North America and Europe. With this move, operators aimed at decongesting their networks, which have been overcrowded by bandwidth-hungry smartphone users. A similar transition is expected in the emerging markets of Asia Pacific, Africa and Middle East, and Latin America which are still pushing data services through discounted and unlimited data plans. The new tariff plans, wherein users are charged according to their consumption, will increase the mobile e-mail ARPU and hence total revenues. Moreover, the growing e-mail subscriber base will also boost revenues. The figure below highlights worldwide mobile e-mail revenues during 2008-2015.

Figure 169: Mobile E-mail Revenue – Worldwide (In USD Billion, 2008 – 2015F)


F – Forecasted

In 2010, Asia Pacific’s contribution to worldwide mobile e-mail users stood at 49.7 percent – the highest among all regions; Europe came next with 25.5 percent. Excluding Asia Pacific, the contribution of all regions to total worldwide mobile e-mail users will increase during 2010-2015. However, Asia Pacific will remain the biggest market in terms of mobile e-mail users. The next figure shows the regional contributions to the worldwide mobile e-mail user base in 2010 and 2015.

14.018.8

25.4

34.4

45.5

57.5

70.4

82.6

0

15

30

45

60

75

90

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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enue

(I

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SD

Bill

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Year

In 2010, mobile e-mail generated USD 25.4 billion in revenue worldwide, and this figure is expected to surpass USD 82 billion by end-2015, after growing at a CAGR of 26.6 percent during 2010-2015.



Figure 170: Mobile E-mail Users Contribution – Regional (In Percent, 2010 & 2015F)55


F – Forecasted

In 2010, Europe was the largest worldwide market in terms of mobile e-mail revenues, amassing 40 percent of worldwide mobile e-mail revenues, while Asia Pacific and North America claimed second and third positions respectively. By end-2015, Europe is expected to increase its share in the mobile e-mail revenue pie.

Figure 171: Mobile E-mail Revenue Contribution – Regional (In Percent, 2010 & 2015F)


F – Forecasted

The worldwide mobile e-mail user base is forecast to grow at a CAGR of 31.7 percent between 2010 and 2015. Latin America is expected to lead the growth in the worldwide mobile e-mail user base, while Asia Pacific is set to experience the least growth and be the only region seeing a CAGR less than the worldwide CAGR during 2010-2015.

55 Note: The percentages for 2010 and 2015 do not add up to 100 percent because of rounding off errors.

25.5

49.7

19.6

3.2 2.1

28.9

44.2

19.8

4.8 2.4

0

10

20

30

40

50

60

Europe Asia Pacific North America Latin America Africa and Middle EastM

obile

E-m

ail U

sers

Con

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utio

n (I

n P

erce

nt)

Region

2010 2015F

40.0

34.0

21.7

2.0 2.3

44.8

30.5

18.8

3.4 2.5

0

10

20

30

40

50

Europe Asia Pacific North America Latin America Africa and Middle EastM

obile

E-m

ail R

even

ue C

ontr

ibut

ion

(In

Per

cent

)

Region

2010 2015F

The worldwide mobile e-mail user base is forecast to grow at a CAGR of 31.7 percent between 2010 and 2015.



Figure 172: Mobile E-mail Users Growth by Region (In Percent, 2010 – 2015F)


F – Forecasted

35.0

28.631.9

43.0

34.5

0

11

22

33

44

55


CA

GR

(In

Per

cent

)

Region


CAGR 31.7%



Comparison between new and previous forecasts Between the last and this current edition of Mobile Messaging Futures, our forecasts for mobile e-mail and mobile IM have markedly altered. In this year’s fifth edition of the report, our mobile e-mail user forecasts for all regions are more aggressive compared to the numbers published last year. The primary reason behind the revision is the unexpected behavior of the smartphone market. During the economic slowdown, smartphone shipments recorded modest growth which was less than our expectations prior to the crisis. Taking this under consideration, the mobile e-mail and IM forecasts (which are inextricably linked to smartphone shipments) were scaled down in last year’s messaging report. However, the smartphone market rebounded in 2010 and smartphone shipments grew at an impressive rate in all regions. Worldwide smartphone shipments witnessed staggering y-o-y growth of 76.5 percent. The figure below shows the regional y-o-y growth of smartphone shipments in 2009 and 2010.

(To read more about the mobile handset and smartphone markets, see Portio Research’s report ‘Smartphone Futures 2011-2015’, released in December 2010). With the growing smartphone penetration, the consumer segment will become more active in the mobile e-mail domain and the consumer demand for mobile e-mail is expected to rise in the coming years. Also, the adoption of advanced networks such as 3G, LTE and WiMAX, along with investments being made by operators in infrastructure, led us to scale up our worldwide and regional mobile e-mail forecasts. The following table highlights the comparison between our new and old forecasts for regional mobile e-mail users during 2010-2015.

Figure 173: Smartphone Shipments Y-o-Y Growth by Region (In Percent, 2009 & 2010)


13.6 12.824.7

14.4 11.1

86.8

65.674.6

132.5

90.8

0

30

60

90

120

150


Sm

artp

hone

Shi

pmen

ts Y

-o-Y

G

row

th (

In P

erce

nt)

Region

2009 2010



Table 25: Comparison of New and Old Forecasts – Mobile E-mail Users (In Million, 2010 – 2015F)56

Region Mobile E-mail Users (In Million)

2010 2011F 2012F 2013F 2014F 2015F

Europe New 122.4 176.2 246.9 332.3 433.8 549.5

Old 109.1 143.4 183.6 228.1 278.9 NA

Asia Pacific New 238.7 324.3 423.5 543.7 679.1 840.1

Old 221.1 281.1 347.1 421.5 503.4 NA

North America

New 94.2 132.3 180.0 236.2 301.7 375.6

Old 89.4 123.4 166.2 216.7 275.9 NA

Latin America

New 15.3 23.1 33.8 46.9 66.7 91.5

Old 12.3 16.9 23.2 31.3 42.8 NA


New 10.2 14.0 19.1 25.2 33.9 44.8

Old 9.2 11.9 15.2 19.4 24.9 NA

Worldwide New 480.6 669.9 903.3 1,184.3 1,515.2 1,901.4

Old 441.1 576.6 735.2 917.1 1,125.8 NA

Source: Portio Research Ltd. “Old” refers to forecasts published in the Portio Research report, Mobile Messaging Futures 2010-2014, 4th Edition.




Europe The European mobile e-mail user base is set to grow from 122.4 million in 2010 to 549.5 million by end-2015—a CAGR of 35 percent (the second highest CAGR of the five regions). While the advanced markets of Western Europe, including the UK, Spain, France, Germany and Italy are among the major contributors to mobile e-mail subscribers worldwide, Eastern European markets have also witnessed a high level of mobile e-mail uptake. Europe is expected to increase its share in the worldwide mobile e-mail user base during 2010-2015, from 25.5 percent in 2010 to 28.9 percent in 2015.

Figure 174: Mobile E-mail Users – Europe (In Million, 2008 – 2015F)


F – Forecasted

In 2010, mobile e-mail users accounted for 11.3 percent of the total regional mobile subscriber base. By end-2015, this percentage will reach 46.1 percent – the second-highest penetration after North America.

57.782.3

122.4

176.2

246.9

332.3

433.8

549.5

0

100

200

300

400

500

600

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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(In

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ion)

Year

Europe is expected to increase its share in the worldwide mobile e-mail user base during 2010-2015, from 25.5 percent in 2010 to 28.9 percent in 2015.



The European mobile e-mail market generated USD 10.2 billion revenues in 2010, making it the biggest mobile e-mail market worldwide in revenue terms in 2010. Revenue is forecast to grow at a CAGR of 29.5 percent during 2010-2015, to reach USD 37 billion by end-2015. Europe will continue to dominate the mobile e-mail market in terms of revenues through 2010-2015.

Figure 176: Mobile E-mail Revenue – Europe (In USD Billion, 2008 – 2015F)


F – Forecasted

5.87.3

10.2

14.2

19.5

24.9

31.1

37.0

0

10

20

30

40

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

l Rev

enue

(I

n U

SD

Bill

ion)

Year

Figure 175: Mobile E-mail Penetration – Europe (In Percent, 2008 – 2015F)


F – Forecasted

Europe will continue to dominate the mobile e-mail market in terms of revenues through 2010-2015.

5.8%7.9%

11.3%15.8%

21.6%

28.6%

36.8%

46.1%

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year




France

Please note that where we refer to “Mobile E-mail Penetration”, we mean the mobile e-mail users (of the specified market or region) as a percentage of the specified market or region’s mobile subscriber base.

Figure 177: Mobile E-mail Penetration – France (In Percent, 2008 – 2010)


8.6

12.1

16.1

0

3

6

9

12

15

18

2008 2009 2010

Mob

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Mobile e-mail was being used by approximately 16.1 percent of French mobile subscribers at end-2010

Mobile e-mail uptake in France has been boosted by an increase in smartphone penetration (primarily due to the popularity of iPhone and BlackBerry handsets in the market), development of 3G networks, and unlimited mobile Internet plans being offered by operators such as Orange, SFR and Bouygues Telecom

Orange, the country’s largest operator, offered unlimited mobile plans which allowed subscribers to send and receive unlimited e-mails and attachments from the e-mail client in mobile IMAP, POP and SMTP

SFR, the country’s second largest operator, has tailored e-mail services for BlackBerry, iPhone and Android

Buoygues Telecom provides both types of subscriptions – unlimited mobile Internet and per KB subscriptions (wherein a user is billed based on the level of data use by KB)



Germany

Figure 178: Mobile E-mail Penetration – Germany (In Percent, 2008 – 2010)


7.49.6

15.4

0

2

4

6

8

10

12

14

16

2008 2009 2010

Mob

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etra

tion

(In

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)

Year

Mobile e-mail uptake is growing in Germany, with approximately 15.4 percent of German mobile subscribers using mobile e-mail services at end-2010

MNOs are continuing their efforts to improve the mobile e-mail service experience by upgrading networks to enable faster data transfer rates. They are focusing on expanding coverage to rural parts of Germany for high-speed mobile Internet services.

In September 2010, Telefonica O2 Germany deployed pilot Long Term Evolution (LTE) networks in urban communities of Munich, and in October 2010, they started deploying in Munich’s rural areas

In November 2010, Vodafone announced the deployment of LTE technology in five rural areas in Germany where no broadband access was available. The operator has partnered with Huawei and Ericsson to upgrade all the base stations in Germany to LTE by March 2011 and provide high speed Internet services to its subscribers.

Deutsche Telekom (also known as T-Mobile) has selected Nokia Siemens Networks (NSN) to launch LTE networks in rural parts of the country



Italy

Figure 179: Mobile E-mail Penetration – Italy (In Percent, 2008 – 2010)


9.912.1

15.2

0

4

8

12

16

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

At end-2010, nearly 15.2 percent of Italian subscribers were using mobile e-mail services

Mobile e-mail services are gaining traction due to the high smartphone penetration in the market, subscribers’ positive inclination towards data services and network upgrades

In June 2010, Telecom Italia launched a promotional offer for its innovative e-mail service ‘Impresa Semplice Certific@’ which guarantees ‘legal validity’ of e-mail communications. According to the guarantee, the operator is not allowed to alter the contents of the message in the e-mail and attachments, and the operator has a legal liability towards the sender to inform him about the delivery status of the e-mail. In this drive, it targeted 0.7 million of business associates to use its e-mail service free of charge till end-2011.

In October 2010, Telecom Italia announced its plan to introduce an HSPA+ capable platform which will offer speeds up to 21 Mbps in the country. Initially, the platform will be launched in Rome and Milan, before a nationwide roll out.

Vodafone plans to invest USD 1.39 billion (EUR 1 billion) in wireless broadband services to expand its coverage area for high speed Internet to the areas which still do not have adequate Internet access

With such efforts by MNOs, mobile e-mail users are expected to increase in the country



Russia

Figure 180: Mobile E-mail Penetration – Russia (In Percent, 2008 – 2010)


5.3

7.99.8

0

2

4

6

8

10

12

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

At end-2010, 9.8 percent of Russian subscribers used mobile e-mail MNOs are providing unlimited e-mail access plans to their subscribers

MTS, the country’s largest operator, has introduced numerous tariff plans with large Internet bundles, such as 100 MB, 500 MB and 1,000 MB bundles

In the past couple of years, Russia has witnessed huge investments in mobile e-mail infrastructure and network upgrades. Operators plan to make further investments in network upgrades in the coming years, which will boost mobile e-mail in the country. For example: MTS is planning to invest USD 97.4 million (RUB 3 billion) to roll out an LTE network in Moscow in 2011. Another operator, MegaFon, is also planning to launch an LTE network in Sochi.



Spain

Figure 181: Mobile E-mail Penetration – Spain (In Percent, 2008 – 2010)


9.812.9

18.9

0

4

8

12

16

20

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

Spain is a mature mobile market with advanced networks and services. Spanish subscribers are technically advanced and have shown interest in newer messaging services such as mobile e-mail and IM.

Spain is witnessing a shift from business to personal use of the mobile Internet. Spanish operators are also eyeing the consumer mobile e-mail market, in addition to focusing on the enterprise segment.

Mobile e-mail was being used by nearly 19 percent of Spanish subscribers at end-2010 In June 2010, the Spanish Government announced a plan to reallocate spectrum to

operators in an effort to expand access to advanced mobile Internet services. This process will take place in 2011. Such initiatives by the Government and MNOs ensures high speed Internet and, as a result, seamless connectivity with peers via mobile e-mail and IM.



Sweden

Figure 182: Mobile E-mail Penetration – Sweden (In Percent, 2008 – 2010)


6.4

9.8

16.1

0

3

6

9

12

15

18

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

The demand for mobile e-mail in Sweden is driven by the promising 3G and above sector, which in turn is being supported by excellent infrastructure

In 2010, Sweden witnessed the commercial launch of Long Term Evolution (LTE) networks in several towns. Almost all operators are making investments to upgrade their networks to LTE and to offer higher data connection speeds to their subscribers.

At end-2010, mobile e-mail services were being used by 16.1 percent of Swedish subscribers

Teliasonera, Sweden’s largest operator is offering e-mail service plans, such as ‘E-mail Direct’ and ‘E-mail Alert’, to promote mobile e-mail services in the country. E-mail Direct offers unlimited usage at a fixed rate, and E-mail Alert allows subscribers to pay only for their usage.



Switzerland

Turkey

Figure 183: Mobile E-mail Penetration – Switzerland (In Percent, 2008 – 2010)


8.711.2

14.3

0

4

8

12

16

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

The availability of 3G (and above) networks, which enable the quick download of attachments, has facilitated the growth of mobile e-mail in Switzerland

Mobile e-mail users formed 14.3 percent of the Swiss mobile subscriber base at end-2010

Swiss MNOs are promoting e-mail services through network upgrades and offering increased data transmission rates to users, which in turn results in improved mobile e-mail experiences

In H2 2010, Swisscom – the country’s largest operator – upgraded 500 base stations to an HSPA+ capable network and they now support 21 Mbps download speeds

Orange Switzerland plans to invest USD 632 million (CHF 700 million) to develop mobile networks based on HSPA, HSPA+ and LTE over the next five years, which bodes well for mobile e-mail services in the coming years

Mobile e-mail services are in their early stages of adoption in Turkey Mobile e-mail was being used by 4.1 percent of the Turkish mobile subscriber base at

end-2010 In February 2010, Turkcell – the country’s largest operator – announced an agreement

with Nokia under which Turkcell’s subscribers will be able to use the Nokia Messaging push e-mail service. The service will enable users to configure up to ten e-mail accounts on their handsets. Nokia Messaging is being made available on a wide range of handsets and smartphones.

In December 2010, Turkcell announced its plan to introduce ‘Dual Carrier’ technology in the country. Turkcell’s 3G network compatibility with dual carrier technology, and its support for mobile Internet speeds of up to 42 Mbps, is expected to bolster Turkey's e-mail user base.



The UK

Figure 184: Mobile E-mail Penetration – Turkey (In Percent, 2008 – 2010)


Figure 185: Mobile E-mail Penetration – The UK (In Percent, 2008 – 2010)


2.43.2

4.1

0

1

2

3

4

5

2008 2009 2010

Mob

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-mai

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etra

tion

(In

Per

cent

)

Year

10.7

14.9

19.0

0

4

8

12

16

20

2008 2009 2010

Mob

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(In

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)

Year

High smartphone penetration has resulted in large numbers of subscribers opting for data services like mobile Internet and mobile e-mail

At end-2010, 19 percent of the UK’s total mobile subscriber base were using mobile e-mail services

Nearly all MNOs have introduced discounted or unlimited data plans to increase the uptake of mobile e-mail among subscribers



Asia Pacific Totalling 238.7 million, mobile e-mail users in Asia Pacific accounted for approximately half of the total mobile e-mail user base worldwide at end-2010 – in part attributable to the region’s huge subscriber base. With a CAGR of 28.6 percent between 2010 and 2015 (the lowest growth rate among all regions worldwide), the number of mobile e-mail users in Asia Pacific will cross 840 million in 2015, but the region’s contribution to the worldwide mobile e-mail user base will fall to 44.2 percent by end-2015. The figure below depicts the mobile e-mail user base of Asia Pacific during 2008-2015.

Figure 186: Mobile E-mail Users – Asia Pacific (In Million, 2008 – 2015F)


F – Forecasted

At end-2010, 9.5 percent of the total mobile subscribers in Asia Pacific were mobile e-mail users. This contribution is forecast to increase to approximately 22 percent by end-2015.

129.7171.4

238.7

324.3

423.5

543.7

679.1

840.1

0

300

600

900

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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Totalling 238.7 million, mobile e-mail users in Asia Pacific accounted for approximately half of the total mobile e-mail user base worldwide at end-2010.



Annual mobile e-mail revenue generated in Asia Pacific stood at USD 8.6 billion in 2010. This number is expected to increase to USD 25.1 billion by end-2015, after achieving a CAGR of 23.9 percent during 2010-2015.

Figure 188: Mobile E-mail Revenue – Asia Pacific (In USD Billion, 2008 – 2015F)


F – Forecasted

4.96.7

8.6

11.2

14.5

18.4

21.9

25.1

0

7

14

21

28

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

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enue

(I

n U

SD

Bill

ion)

Year

Figure 187: Mobile E-mail Penetration – Asia Pacific (In Percent, 2008 – 2015F)


F – Forecasted

Annual mobile e-mail revenue generated in Asia Pacific stood at USD 8.6 billion in 2010. This number is expected to increase to USD 25.1 billion by end-2015, after achieving a CAGR of 23.9 percent during 2010-2015.

7.5% 8.0%9.5%

11.4%13.4%

15.9%

18.6%

21.9%

0%

6%

12%

18%

24%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year




China

Figure 189: Mobile E-mail Penetration – Australia (In Percent, 2008 – 2010)


11.3 12.415.2

0

3

6

9

12

15

18

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

Australia is one of the most advanced telecom markets in the Asia Pacific region. Factors that have helped the uptake of mobile e-mail include the presence of high-speed network infrastructure, increasing penetration of smartphones and subscribers’ inclination towards data services.

Mobile e-mail users as a proportion of total mobile subscribers in the country has increased from 11.3 percent at end-2008 to 15.2 percent at end-2010

To increase subscriptions to mobile e-mail, Telstra announced an offer under which subscribers opting for e-mail services before end-June 2011 will get the first month’s subscription for free

Data services have gained popularity and scale in China with the launch of 3G and 3.5G networks in recent years. These data supportive networks, along with affordable domestic feature phones and smartphones, have led to an increase in the number of Chinese mobile Internet users and also mobile e-mail users.

Mobile Internet users formed an estimated 36 percent of the Chinese mobile subscriber base at end-2010, while 11.5 percent of the subscriber base used mobile e-mail

Since the last edition of this report was produced, the majority of expected subscriber base growth has in fact come from the bottom of pyramid segment. As such, mobile e-mail penetration is actually now considered to be lower than previously reported.



Hong Kong

Figure 190: Mobile E-mail Penetration – China (In Percent, 2008 – 2010)


Figure 191: Mobile E-mail Penetration – Hong Kong (In Percent, 2008 – 2010)


8.09.9

11.5

0

2

4

6

8

10

12

14

2008 2009 2010

Mob

ile E

-mai

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tion

(In

Per

cent

)

Year

7.6

11.9

19.7

0

4

8

12

16

20

24

2008 2009 2010

Mob

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-mai

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(In

Per

cent

)

Year

Hong Kong has shown significant growth in the mobile e-mail user base between 2008-2010

Mobile e-mail users as a proportion of the total mobile subscriber base in Hong Kong has jumped from 7.6 percent at end-2008 to 19.7 percent at end-2010; with the primary reasons for this being high speed Internet and flat rate data plans being introduced by operators in the country



India

Figure 192: Mobile E-mail Penetration – India (In Percent, 2008 – 2010)


0.71.1

1.9

0.0

0.4

0.8

1.2

1.6

2.0

2.4

2008 2009 2010

Mob

ile E

-mai

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tion

(In

Per

cent

)

Year

Mobile e-mail services remain at a nascent stage in India. Less than 2 percent of the Indian subscriber base was using mobile e-mail at end-2010.

In India, mobile e-mail is still limited to the enterprise segment, though MNOs are trying to attract the consumer segment by offering discounted and unlimited Internet plans

Bharti Airtel, the country’s largest operator, has introduced weekly and monthly unlimited mobile e-mail and IM promotional plans for its users

In 2010, several handset vendors including Nokia and MVL launched handsets with push e-mail features at affordable prices. With the availability of such handsets, along with the launch of 3G networks, India’s mobile e-mail market is expected to proliferate.

Synchronica, the UK-based mobile messaging solutions provider, acquired iseemedia in September 2010. iseemedia had contracts with Indian operators, such as Reliance and Tata Teleservices, to provide data services. With this acquisition, Synchronica is poised to provide improved mobile e-mail and IM services to users in the country.



Japan

Figure 193: Mobile E-mail Penetration – Japan (In Percent, 2008 – 2010)


67.4 71.279.9

0

30

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90

2008 2009 2010

Mob

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)

Year

Japan is one of the most advanced mobile markets in Asia Pacific, and remains the only market worldwide where mobile e-mail has been more popular than SMS.

Nearly 80 percent of Japanese subscribers were using mobile e-mail at end-2010 Enhanced messaging features and rich user experiences, complemented by cheap

pricing, has supported mobile e-mail’s acceptance as a preferred mode of communication

Mobile e-mail in Japan has in part penetrated further because of the type of mobile phones available in the market. The handsets available in Japanese markets are often like mini-computers with a rich set of advanced functionalities intended for web browsing, data processing, e-mail etc.

Operators have supported mobile e-mail usage by consistently upgrading their networks with advanced network technologies to provide enhanced e-mail experiences to users



South Korea

Figure 194: Mobile E-mail Penetration – South Korea (In Percent, 2008 – 2010)


12.8 13.516.4

0

3

6

9

12

15

18

2008 2009 2010

Mob

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(In

Per

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)

Year

South Korea is another advanced mobile data services market in Asia Pacific Mobile e-mail users formed 16.4 percent of the South Korean mobile subscriber base

at end-2010 In an effort to encourage data services among subscribers, MNOs have introduced flat-

rate data plans. This, combined with increased smartphone penetration, will boost the mobile e-mail user base.

Also, the South Korean mobile market is witnessing huge investments in network upgrades based on HSPA+ and LTE



Thailand

Figure 195: Mobile E-mail Penetration – Thailand (In Percent, 2008 – 2010)


3.3 3.6

4.7

0

2

4

6

2008 2009 2010

Mob

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tion

(In

Per

cent

)

Year

The availability of smartphones at affordable prices and the introduction of 3G services have been instrumental in attracting subscribers for mobile Internet services

Mobile e-mail is the most popular mode of communication over the mobile Internet, followed by social networking

Nearly 4.7 percent of mobile subscribers in Thailand used mobile e-mail services at end-2010

Operators, such as Advanced Info Service (AIS) and Digital Total Access Communications (DTAC), have been promoting mobile e-mail by offering unlimited Internet packages to their subscribers



North America The popularity of mobile e-mail in North America is evident from the fact that the region has the highest mobile e-mail penetration level – 28.1 percent at end-2010. Uptake of mobile e-mail is being bolstered by the presence of a strong enterprise segment and technically advanced subscribers, and the wide availability of e-mail capable handsets is further popularising these services. In 2010, the region’s mobile e-mail user base stood at 94.2 million and will grow to nearly 376 million by end-2015, at a CAGR of approximately 32 percent during 2010-2015. The region’s contribution to the worldwide mobile e-mail user base is expected to increase marginally from 19.6 percent in 2010 to 19.8 percent by end-2015.

Figure 196: Mobile E-mail Users – North America (In Million, 2008 – 2015F)


F – Forecasted

As mentioned, North America has the highest penetration of mobile e-mail users among the five regions worldwide. In 2010, 28.1 percent of mobile subscribers were using mobile e-mail services and this percentage is forecast to reach 92.4 percent by end-2015. Europe is expected to have the second highest penetration level at 46.1 percent by end-2015.

47.065.3

94.2132.3

180.0

236.2

301.7

375.6

0

100

200

300

400

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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Year

In 2010, the region’s mobile e-mail user base stood at 94.2 million and will grow to nearly 376 million by end-2015, at a CAGR of approximately 32 percent during 2010-2015.



The advanced North American mobile e-mail market was worth USD 5.5 billion in 2010, and is forecast to grow at a CAGR of 23 percent to reach USD 15.5 billion by end-2015; this growth rate is the lowest among all five regions. With the existing infrastructure in place to offer mobile e-mail, MNOs have adopted network and technology upgrades and price reductions as measures to further increase the penetration of mobile e-mail. Tariff reduction is a major reason behind the region having the lowest mobile e-mail revenue growth compared to other regions. North America’s contribution to worldwide mobile e-mail revenue is expected to decline from 21.7 percent in 2010 to 18.8 percent in 2015.

Figure 198: Mobile E-mail Revenue – North America (In USD Billion, 2008 – 2015F)


F – Forecasted

2.84.0

5.5

7.4

9.3

11.3

13.5

15.5

0

6

12

18

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

l Rev

enue

(I

n U

SD

Bill

ion)

Year

Figure 197: Mobile E-mail Penetration – North America (In Percent, 2008 – 2015F)


F – Forecasted

The North American mobile e-mail market was worth USD 5.5 billion in 2010, and is forecast to grow at a CAGR of 23 percent to reach USD 15.5 billion by end-2015.

16.1%20.8%

28.1%37.6%

48.9%

61.8%

76.4%

92.4%

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

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etra

tion

(In

Per

cent

)

Year




Figure 199: Mobile E-mail Penetration – Canada (In Percent, 2008 – 2010)


12.814.7

18.3

0

3

6

9

12

15

18

21

2008 2009 2010

Mob

ile E

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etra

tion

(In

Per

cent

)

Year

Growing mobile Internet penetration and the availability of smartphones at accessible prices are among several factors driving mobile e-mail user growth

Use of mobile e-mail in the enterprise segment remains strong Mobile e-mail users formed 18.3 percent of the total mobile subscriber base at end-

2010 E-mail and IM are among the most popular activities among Internet users in Canada.

Canadians spend more than 60 percent of their Internet time on e-mails and IM. Similar behavioral trends are expected from users while accessing the mobile Internet.



The US

Figure 200: Mobile E-mail Penetration – The US (In Percent, 2008 – 2010)


16.321.3

28.9

0

7

14

21

28

35

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

Mobile e-mail is among the top mobile Internet activities in the US Better user experiences through innovative devices and intuitive user interfaces have

boosted mobile e-mail uptake Mobile e-mail users formed 28.9 percent of total mobile subscribers in the US at end-

2010 MNOs are taking several initiatives, such as network upgrades, expansion of coverage

areas and the introduction of unlimited data plans to boost mobile e-mail growth in the country. The following are examples of data plans offered by operators:

o Verizon Wireless, the country’s largest operator, is offering unlimited messaging plans (including unlimited e-mail) at monthly subscription fees of USD 39.99 and USD 54.99 for feature phones and 3G smartphones respectively

o T-Mobile provides unlimited data plans (including personal e-mails) specifically designed for BlackBerry, smartphones and feature phones



Latin America With the increasing penetration of smartphones and feature phones, and supporting networks, the data services market in Latin America has gained momentum. MNOs’ revenue now has significant contributions from data services and mobile e-mail’s share in this revenue pie is also on the rise. In 2010, the region’s mobile e-mail user base stood at 15.3 million and is forecast to grow to 91.5 million by end 2015. This represents a CAGR of 43 percent during 2010 - 2015 – the highest CAGR among the regions worldwide. Latin America will increase its share in the worldwide mobile e-mail user base from 3.2 percent in 2010 to 4.8 percent by end-2015.

Figure 201: Mobile E-mail Users – Latin America (In Million, 2008 – 2015F)


F – Forecasted

Issues such as illiteracy, lack of infrastructure, and affordability have kept the penetration of mobile e-mail users below par in some parts of the region. However, these hurdles are expected to be overcome with the steadily dropping prices of mobile e-mail enabled phones, the growing enterprise segment, and supporting advanced data network deployments. In 2010, mobile e-mail users constituted only 2.9 percent of the total regional mobile subscriber base; this number is expected to improve to 13.3 percent by end-2015.

6.2 9.015.3

23.1

33.8

46.9

66.7

91.5

0

20

40

60

80

100

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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Latin America will increase its share in the worldwide mobile e-mail user base from 3.2 percent in 2010 to 4.8 percent by end-2015.



Mobile e-mail revenue generated in Latin America totaled USD 0.5 billion in 2010. By end-2015, this will rise to USD 2.8 billion, at a CAGR of 40.1 percent during 2010-2015 – which is again the highest CAGR among the regions. In 2010, the region’s contribution to worldwide mobile e-mail revenue was the lowest at just 2 percent. Due to a higher revenue growth rate of 40.1 percent, Latin America is expected to increase its share in the mobile e-mail revenue pie to 3.4 by end-2015, at which time Africa and Middle East will be the region recording the lowest contribution to worldwide mobile e-mail revenues.

Figure 203: Mobile E-mail Revenue – Latin America (In USD Billion, 2008 – 2015F)


F – Forecasted

0.20.4

0.5

0.8

1.2

1.6

2.1

2.8

0

1

2

3

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

l Rev

enue

(I

n U

SD

Bill

ion)

Year

Figure 202: Mobile E-mail Penetration – Latin America (In Percent, 2008 – 2015F)


F – Forecasted

Due to a higher revenue growth rate of 40.1 percent, Latin America is expected to increase its share in the mobile e-mail revenue pie to 3.4 by end-2015.

1.4% 1.8%2.9%

4.0%

5.6%

7.4%

10.0%

13.3%

0%

3%

6%

9%

12%

15%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile E

-mai

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etra

tion

(In

Per

cent

)

Year




Figure 204: Mobile E-mail Penetration – Argentina (In Percent, 2008 – 2010)


3.6 4.0

6.4

0

2

4

6

8

2008 2009 2010

Mob

ile E

-mai

l Pen

etra

tion

(In

Per

cent

)

Year

Nearly 6.4 percent of the Argentinean mobile subscriber base were using mobile e-mail services at end-2010

MNOs are making efforts to push non-voice services in the country Telecom Personal, the country’s third largest operator, launched a new push e-mail

service ‘Personal E-M@il’ in August 2010. Personal E-M@il is based on Synchronica’s (the UK based mobile messaging solutions provider) Mobile Gateway and promises user-friendly push e-mail services, regardless of handset. Telecom Personal is aggressively promoting this new push e-mail service in the country by offering free subscription for the first month and a flat rate monthly subscription at USD 2.3 (ARS 9) thereafter.



Brazil

Mexico

Figure 205: Mobile E-mail Penetration – Brazil (In Percent, 2008 – 2010)


1.2

2.2

3.4

0

1

2

3

4

2008 2009 2010

Mob

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(In

Per

cent

)

Year

During the period 2008-2010, Brazil witnessed the highest growth in mobile e-mail user base in the region

Mobile e-mail users grew at a CAGR of nearly 86 percent during 2008-2010. 3.4 percent of the mobile subscriber base were using mobile e-mail at end-2010

All three major operators – Telcel, Movistar and Iusacell – are providing high-speed Internet access over 3G. At end-Q3 2010, the 3G subscriber base was more than double subscriber levels reported at end-Q3 2009. This, combined with growing smartphone penetration, is expected to boost mobile e-mail use in the country.

Subscribers accessing mobile e-mail services formed 2.3 percent of the Mexican subscriber base at end-2010

Telcel, the country’s largest operator, offers several Internet packages, such as Internet Mail, Internet Basics and unlimited Internet, which users can choose depending on their monthly usage



Venezuela

Figure 206: Mobile E-mail Penetration – Mexico (In Percent, 2008 – 2010)


Figure 207: Mobile E-mail Penetration – Venezuela (In Percent, 2008 – 2010)


1.21.6

2.3

0

1

2

3

2008 2009 2010

Mob

ile E

-mai

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tion

(In

Per

cent

)

Year

5.9 6.4

8.4

0

2

4

6

8

10

2008 2009 2010

Mob

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etra

tion

(In

Per

cent

)

Year

Venezuela has been one of the leading Latin American markets in terms of mobile Internet use. At end-2010, 35 percent of total mobile subscribers in Venezuela used the mobile Internet.

Mobile e-mail users formed an estimated 8.4 percent of the mobile subscriber base in Venezuela at end-2010

A growing 3G subscriber base is one of the major factors contributing to the increase in mobile e-mail user base. In 2010, 3G subscribers grew by more than 50 percent y-o-y.




The mobile e-mail user base is growing at a significant pace in Africa and Middle East (AME) but the overall growth in mobile data service usage is still quite low, as a number of markets in the region are still facing issues including affordability and inadequate infrastructure. However, led by Middle East countries and some developed African markets, such as South Africa, mobile e-mail penetration is expected to rise in the AME region in the coming years. In 2010, the region’s mobile e-mail user base stood at 10.2 million. This base is forecast to grow to 44.8 million by end-2015, at a CAGR of 34.5 percent. In 2010, the region’s contribution to the worldwide mobile e-mail user base was 2.1 percent— lowest among the regions. By end-2015, this share is expected to reach 2.4 percent, again the lowest contribution among all regions worldwide.

Figure 208: Mobile E-mail Users – Africa and Middle East (In Million, 2008 – 2015F)


F – Forecasted

Regional mobile e-mail penetration is the lowest among all regions worldwide. In 2010, only 1.3 percent of the total regional subscriber base was using mobile e-mail. Although this number is expected to improve to 3.7 percent by end-2015, it will still lag behind all other regions.

5.17.1

10.214.0

19.1

25.2

33.9

44.8

0

10

20

30

40

50

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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In 2010, the region’s mobile e-mail user base stood at 10.2 million. This base is forecast to grow to 44.8 million by end-2015, at a CAGR of 34.5 percent.



The region’s mobile e-mail revenue is forecast to grow at a CAGR of nearly 29 percent from USD 0.6 billion in 2010 to USD 2.1 billion by end-2015. In 2010, AME’s 2.3 percent contribution to worldwide mobile e-mail revenue was the second lowest after Latin America. However, by end-2015, AME will become the smallest contributor to worldwide mobile e-mail revenue with 2.5 percent.

Figure 210: Mobile E-mail Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F)


F – Forecasted

0.30.4

0.60.8

1.0

1.4

1.7

2.1

0.0

0.6

1.2

1.8

2.4

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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(I

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SD

Bill

ion)

Year

Figure 209: Mobile E-mail Penetration – Africa and Middle East (In Percent, 2008 – 2015F)


F – Forecasted

The region’s mobile e-mail revenue is forecast to grow at a CAGR of nearly 29 percent from USD 0.6 billion in 2010 to USD 2.1 billion by end-2015.

0.9% 1.0%1.3%

1.6%1.9%

2.3%

2.9%

3.7%

0%

1%

2%

3%

4%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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etra

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(In

Per

cent

)

Year




South Africa

Figure 211: Mobile E-mail Penetration – South Africa (In Percent, 2008 – 2010)


4.9

8.3

12.6

0

3

6

9

12

15

2008 2009 2010

Mob

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tion

(In

Per

cent

)

Year

The growing penetration of mobile Internet, along with rising smartphone penetration, has pushed the uptake for mobile e-mail services in South Africa; 12.6 percent of South African mobile subscribers were using mobile e-mail services at end-2010

Growing demand for data services has prompted operators to make substantial investments in infrastructure and to upgrade their networks to HSPA+ and LTE. South Africa’s largest operator, MTN, announced investment of over USD 928.9 million (ZAR 7.1 billion) in network upgrades in 2010. Another operator, Cell C also announced investment of USD 659.9 million (ZAR 5 billion) in the expansion of networks to 3.5G HSPA+ in 2010.



Chapter 7 Mobile IM



Mobile IM Millions of people worldwide use Instant Messaging (IM) to stay connected to their acquaintances, and IM is especially popular among the youth segment. Users love to communicate seamlessly, and mobile IM gives them an ideal platform to achieve this freedom. MNOs are making conscious efforts to enhance the instant messaging experience through additional features, including multiple language support, chat rooms, online dating, games, video chats and file sharing, to make IM services more attractive and popular among their subscribers. With plateauing SMS and MMS revenues, mobile IM acts as an attractive proposition for operators to generate newer streams of data revenue. Technologically, mobile IM services can be divided into two categories: session based services and transaction based services. Session based IM services can be called true IM as they are real-time in nature, presence aware and IMPS compliant. This mode offers users the same kind of IM experience they are used to with the desktop version of IM services. However, the majority of mobile subscribers worldwide use transaction based IM services. This mode offers an SMS-centric IM service. It allows users to connect to their friends on different IM portals through SMS. Furthermore, mobile IM is offered in two different modes—mobilised Internet IM and operator-owned IM. The former simply means porting of Internet IM services, such as Google Talk, Yahoo Messenger, QQ and Windows Live Messenger, onto users’ mobile handsets. Subscribers install an IM client on their handsets to run this service and can instantly start communicating with other users through the Internet connection provided by their operators. In the latter mode, operators develop, brand, and offer their own IM services to their subscribers. Mobilised Internet IM achieved success immediately among subscribers owing to the massive popularity of their desktop-based versions. On the contrary, operator-owned IM products are yet to prove very popular with users. Mobile network operators (MNOs) are collaborating with messaging solution providers, such as Synchronica, Nokia, Huawei, Syniverse and Neustar, to offer device-neutral mobile IM services with improved interoperability and a much richer experience. With such efforts in place, MNO-owned IM services are also expected to gain popularity in the coming years. In 2010, the worldwide mobile IM user base stood at 311.2 million and this is forecast to grow to 1,602.1 million by end-2015, at a CAGR of 38.8 percent during 2010-2015. The next figure shows worldwide mobile IM users between 2008 and 2015.

In 2010, the worldwide mobile IM user base stood at 311.2 million and this is forecast to grow to 1,602.1 million by end-2015, at a CAGR of 38.8 percent during 2010-2015.



Figure 212: Mobile IM Users – Worldwide (In Million, 2008 – 2015F)57


F – Forecasted

In 2010, mobile IM users accounted for 5.9 percent of the worldwide mobile subscriber base. This percentage is expected to increase to 21.8 percent by end-2015.

Mobile IM generated worldwide revenues of USD 6.8 billion in 2010, representing year-on-year growth of 53 percent. Annual mobile IM revenue is forecast to cross USD 31 billion by end-2015, growing at a CAGR of 35.7 percent during 2010-2015.



123.0194.3

311.2470.2

672.7

923.2

1,234.5

1,602.1

0

600

1200

1800

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

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Use

rs

(In

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Figure 213: Mobile IM Penetration – Worldwide (In Percent, 2008 – 2015F)


F – Forecasted

Annual mobile IM revenue worldwide is forecast to cross USD 31 billion by end-2015, growing at a CAGR of 35.7 percent during 2010-2015.

3.0%4.2%

5.9%

8.1%

10.7%

13.8%

17.5%

21.8%

0%

8%

16%

24%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile IM

Pen

etra

tion

(In

Per

cent

)

Year



Figure 214: Mobile IM Revenue – Worldwide (In USD Billion, 2008 – 2015F)


F – Forecasted

In 2010, Asia Pacific was the highest contributor to the worldwide mobile IM user base with a 37.8 percent share, primarily owing to its huge subscriber base. Europe followed with a contribution of 28.8 percent and North America was third with nearly 23 percent of worldwide mobile IM users in 2010. During 2010-2015, while the emerging markets of Asia Pacific, Latin America, and Africa and Middle East are expected to gain shares in the worldwide mobile IM user base, the developed markets of Europe and North America will witness a decline in their contributions.

Figure 215: Mobile IM Users Contribution – Regional (In Percent, 2010 & 2015F)58


F – Forecasted


2.84.4

6.8

10.0

14.0

18.8

24.5

31.2

0

8

16

24

32

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Mob

ile IM

Rev

enue

(I

n U

SD

Bill

ion)

Year

28.8

37.8

22.9

4.8 5.7

22.4

47.3

17.8

6.4 6.2

0

10

20

30

40

50


Mob

ile IM

Use

rs C

ontr

ibut

ion

(In

Per

cent

)

Region

2010 2015F

In 2010, Asia Pacific was the highest contributor to the worldwide mobile IM user base with a 37.8 percent share.



Europe made the highest contribution to worldwide mobile IM revenue in 2010 with 42.1 percent, while North America came second with 24.6 percent. Europe will maintain its dominance through 2010-2015 but will experience a dip in its contribution share to total worldwide mobile IM revenue. Like the mobile IM user base contribution trends during 2010-2015, both Europe and North America are expected to yield revenue share to other regions worldwide, while all other regions will strengthen their position in the worldwide mobile IM market in revenue terms. This growth will see Asia Pacific replace North America as the second-largest mobile IM market based on revenue by end-2015.

Figure 216: Mobile IM Revenue Contribution – Regional (In Percent, 2010 & 2015F)59


F – Forecasted

Latin America is expected to lead all regions worldwide in terms of mobile IM user base growth with a CAGR of 46.5 percent during 2010-2015, followed by Asia Pacific and AME respectively. Europe and North America are the only two regions with projected growth rates below the worldwide CAGR, with Europe expected to see the least growth worldwide with a CAGR of 31.9 percent during 2010-2015.


42.1

22.524.6

2.8

8.1

37.532.9

17.2

3.4

9.0

0

10

20

30

40

50


Mob

ile IM

Rev

enue

C

ontr

ibut

ion

(In

Per

cent

)

Region

2010 2015F

Europe made the highest contribution to worldwide mobile IM revenue in 2010 with 42.1 percent, while North America came second with 24.6 percent.



Figure 217: Mobile IM Users Growth by Region (In Percent, 2008 – 2015F)


F – Forecasted

31.9

45.1

32.0

46.541.1

0

10

20

30

40

50

60


CA

GR

(In

Per

cent

)

Region


CAGR 38.8%



Comparison between new and previous forecasts

Between the last and this current edition of Mobile Messaging Futures, our forecasts for mobile e-mail and mobile IM have markedly altered. In this year’s fifth edition of the report, our mobile IM user forecasts for all regions are more aggressive compared to the numbers published last year. The primary reason behind the revision is the unexpected behavior of the smartphone market. During the economic slowdown, smartphone shipments recorded a modest growth which was less than our expectations prior to the crisis. Taking this under consideration, the mobile e-mail and IM forecasts (which are inextricably linked to smartphone shipments) were scaled down in last year’s messaging report. However, the smartphone market rebounded in 2010 and smartphone shipments grew at an impressive rate in all regions. Worldwide smartphone shipments witnessed staggering y-o-y growth of 76.5 percent. The figure below shows the regional y-o-y growth of smartphone shipments in 2009 and 2010.

(To read more about the mobile handset and smartphone markets, see Portio Research’s report ‘Smartphone Futures 2011-2015’, released in December 2010) Also, the adoption of advanced networks such as 3G, LTE, WiMAX, along with investments being made by operators in infrastructure, led us to scale up our worldwide and regional mobile IM forecasts. The proliferation in smartphone penetration, popularity of advanced network technologies, and flat rate plans will drive the mobile IM market. The following table highlights the comparison between our new and old forecasts for regional mobile IM users during 2010-2015.

Figure 218: Smartphone Shipments Y-o-Y Growth by Region (In Percent, 2009 & 2010)


13.6 12.824.7

14.4 11.1

86.8

65.674.6

132.5

90.8

0

30

60

90

120

150


Sm

artp

hone

Shi

pmen

t Y-o

-Y

Gro

wth

(In

Per

cent

)

Region

2009 2010



Table 26: Comparison of New and Old Forecasts – Mobile IM Users (In Million, 2010 – 2015F)60

Region Mobile IM Users (In Million)

2010 2011F 2012F 2013F 2014F 2015F

Europe New 89.6 127.1 174.0 228.0 290.7 358.2

Old 83.5 114.7 152.2 195.4 230.6 NA

Asia Pacific New 117.6 191.4 287.3 411.7 567.8 757.3

Old 107.8 163.4 231.2 312.8 411.4 NA

North America

New 71.2 102.2 138.9 181.0 230.7 285.8

Old 67.2 95.0 128.0 165.9 210.8 NA

Latin America

New 15.1 23.3 35.1 50.9 73.3 101.9

Old 12.2 17.2 24.3 34.7 47.8 NA


New 17.7 26.2 37.3 51.6 72.0 98.8

Old 15.4 21.8 29.9 40.8 55.1 NA

Total New 311.2 470.2 672.7 923.2 1,234.5 1,602.1

Old 286.2 412.0 565.5 749.5 955.6 NA


“Old” refers to forecasts published in the Portio Research report, Mobile Messaging Futures 2010-2014, 4th Edition.




Europe Despite having a large subscriber base and being an advanced market, in terms of infrastructure and subscribers’ technical know-how, Europe is behind North America in terms of mobile IM penetration, and will remain so through 2015. In 2010, regional mobile IM users stood at 89.6 million, the second-highest user base after Asia Pacific. However, Europe is anticipated to lag behind all the other regions in terms of future growth of its mobile IM user base. By end-2015, Europe’s mobile IM user base will be 358.2 million, the second largest after Asia Pacific, but the CAGR for this base between 2010 and 2015 is forecast to be the lowest – albeit marginally so – of all regions at 31.9 percent. The figure below highlights mobile IM users for Europe during 2008-2015.

Figure 219: Mobile IM Users – Europe (In Million, 2008 – 2015F)


F – Forecasted

As mentioned earlier, Europe has the second highest regional mobile IM penetration after North America. In 2010, mobile IM users represented 8.3 percent of the total regional mobile subscriber base. In 2015, Europe is anticipated to retain the second highest percentage after North America with mobile IM users constituting 30 percent of the regional mobile subscriber base.

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By end-2015, Europe’s mobile IM user base will be 358.2 million, the second largest after Asia Pacific.



In 2010, regional mobile IM revenue amounted to USD 2.8 billion, which was an increase of 49 percent over 2009’s revenue. This figure is forecast to increase to USD 11.7 billion by end-2015, at a CAGR of 32.6 percent – the second lowest CAGR after North America. In 2010, Europe made the highest contribution to worldwide mobile IM revenue with 42.1 percent. Even though Europe’s contribution to mobile IM revenue will drop to 37.5 by end-2015, the region will still have the highest share among the regions worldwide.

Figure 221: Mobile IM Revenue – Europe (In USD Billion, 2008 – 2015F)


F – Forecasted

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Figure 220: Mobile IM Penetration – Europe (In Percent, 2008 – 2015F )


F – Forecasted

In 2010, Europe made the highest contribution to worldwide mobile IM revenue with 42.1 percent. Even though Europe’s contribution to mobile IM revenue will drop to 37.5 by end-2015, the region will still have the highest share among the regions worldwide.

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France

Please note that where we refer to “Mobile IM Penetration”, we mean the mobile IM users (of the specified market or region) as a percentage of the specified market or region’s mobile subscriber base.

Figure 222: Mobile IM Penetration – France (In Percent, 2008 – 2010)


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Windows Live Messenger is a popular IM client among French subscribers with 10.8 million users; of these, 2.5 million access the messenger on their mobiles

In November 2010, Liveradio from Orange was made available exclusively to users of Windows Live Messenger

Microsoft and SFR France launched a new messaging device, “Messenger Edition 251” that comes with a preinstalled Windows Live messenger client

In addition to the operator-based promotional activities, there has been a significant rise in the uptake of mobile IM services mainly due to the increasing penetration of smartphones

Mobile IM services were being used by approximately 17.4 percent of French mobile subscribers at end-2010



Germany

Figure 223: Mobile IM Penetration – Germany (In Percent, 2008 – 2010)


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Vodafone Germany provides its subscribers with access to Windows Live Messenger In addition to ICQ Messenger, O2 partnered with Toshiba to offer Nimbuzz Instant

Messenger on all Toshiba handsets O2 also tied up with JAJAH to provide IP voice calling on Yahoo’s newly released

Messenger iPhone App With increasing smartphone penetration, availability of advanced networks (3G and

above) and various mobile IM clients from MNOs, mobile IM is expected to continue its growth in the German market

Mobile IM penetration has tripled during the period 2008-2010; around 12.7 percent of German mobile subscribers were using mobile IM at end-2010



Italy

Figure 224: Mobile IM Penetration – Italy (In Percent, 2008 – 2010)


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IM solutions, launched by Telecom Italia Mobile and Wind Italy in 2006 and 2007 respectively, continue to be popular among subscribers

Neustar partnered with Mobinex to deliver live data services over Neustar’s Mobile IM application. The integrated solution will enable users to access data services through a one-click access button “Live Tab”. Leading operators including Telecom Italia, Vodafone and Three have deployed Neustar’s IM services.

Increasing penetration of smartphones has also led to the growth in mobile IM use. Italy has the highest smartphone penetration in the European market.

MIM services were being used by 15.6 percent of Italian subscribers at end-2010



Russia

Figure 225: Mobile IM Penetration – Russia (In Percent, 2008 – 2010)


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Though mobile IM services in Russia remain in their infancy, mobile IM has been widely accepted as a preferred medium of communication among the youth segment

Vimplecom and MegaFon launched their own IM services in collaboration with Neustar in 2007 and 2008 respectively

Neustar partnered with Mobinex to deliver live data services over Neustar’s Mobile IM application. The integrated solution will enable users to access data services through a one-click access button “Live Tab”. Beeline teamed with Neustar to deploy this IM solution.

Synchronica will be deploying IMPS mobile instant messaging infrastructure software with the Russian subsidiary of an undisclosed pan-European mobile operator group

3.3 percent of Russia’s mobile subscribers were using mobile IM services at end-2010



Spain

Turkey

Figure 226: Mobile IM Penetration – Spain (In Percent, 2008 – 2010)


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Vodafone launched Windows Live Messenger for the first time in Spain in September 2007

In 2007, Orange followed suit with the launch of its “Orange Messenger” in a tie-up with Windows Live Messenger

In August 2010, Euskaltel chose the Windows Live Service Provider Programme to offer a co-branded version of the Windows Live network of Internet services as a single solution on mobile devices

The uptake of mobile IM services tripled between 2008-2010 to outpace earlier expectations; mobile IM was being used by 24.1 percent of Spain’s subscribers at end-2010

Avea, the youngest Turkish operator, launched Windows Live Messenger for its subscribers in collaboration with Colibria at the beginning of 2008. Turkcell followed Avea by launching Windows Live Messenger in June 2008 in collaboration with NeuStar (having earlier launched ‘Turkcell Messenger’ in 2005 with NeuStar’s support).

Vodafone launched “Vodafone Messenger” in 2009 by integrating Yahoo and Windows Live messengers on one platform

Mobile IM was being used by an estimated 4.2 percent of the total mobile subscribers in Turkey by end-2010



The UK

Figure 227: Mobile IM Penetration – Turkey (In Percent, 2008 – 2010)


Figure 228: Mobile IM Penetration – The UK (In Percent, 2008 – 2010)


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The UK’s mobile IM usage has made steady progress during the years 2008-2010 The percentage of mobile subscribers using mobile IM services was nearly 16.9

percent at end-2010, an addition of 8.3 million IM users to its 2008 IM user base Growth in smartphones (now owned by one in four mobile users) and 3G penetration

(close to 42 percent in 2010) are the main factors behind the increase in IM use



Asia Pacific Asia Pacific registered the highest mobile IM user base among all the regions worldwide. By end-2010, the regional mobile IM user base stood at 117.6 million and accounted for 37.8 percent of the worldwide mobile IM user base. This number is forecast to increase to 757.3 million by end-2015, at a CAGR of 45.1 percent – the second highest CAGR after Latin America. In 2015, this regional user base will constitute 47.3 percent of worldwide mobile IM users. The figure below depicts Asia Pacific’s mobile IM user base during 2008-2015.

Figure 229: Mobile IM Users – Asia Pacific (In Million, 2008 – 2015F)


F – Forecasted

In 2010, mobile IM users represented 4.7 percent of Asia Pacific’s total mobile subscriber base; this penetration level was less than that in North America and Europe. Although Asia Pacific is expected to increase its mobile IM penetration level in the coming years to reach 19.7 percent by end-2015, it will still lag behind these two leading regions.

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Asia Pacific is expected to increase its mobile IM penetration level in the coming years to reach 19.7 percent by end-2015.



Mobile IM revenue in Asia Pacific in 2010 stood at USD 1.5 billion, which formed 22.5 percent of worldwide mobile IM revenue. Although the region has the highest number of mobile IM users worldwide, it was outperformed by Europe and North America in terms of mobile IM revenue generation. This trend is primarily attributable to the low prices charged by regional operators for IM services. However, the coming years seem to be promising for the region’s mobile IM market, with the sector expected to be worth USD 10.3 billion (in revenue terms) by end-2015. This would translate into a CAGR of 46.4 percent during 2010-2015, the highest among the regions worldwide. Furthermore, by end-2015, Asia Pacific will overtake North America as the second highest contributor to worldwide mobile IM revenue with 32.9 percent; Europe will retain pole position.

Figure 231: Mobile IM Revenue – Asia Pacific (In USD Billion, 2008 – 2015F)


F – Forecasted

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Figure 230: Mobile IM Penetration – Asia Pacific (In Percent, 2008 – 2015F)


F – Forecasted

By end-2015, Asia Pacific will overtake North America as the second highest contributor to worldwide mobile IM revenue with 32.9 percent.

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Key Geographical Markets China

Figure 232: Mobile IM Penetration – China (In Percent, 2008 – 2010)


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The Chinese IM market is dominated by Tencent’s mobilised IM product ‘QQ’. The primary reason behind the popularity of QQ is its innovative features, such as the option to type Chinese characters, play games while chatting, transfer files, participate in online dating, read e-books and voice video chat.

Operator-owned IM products, such as ‘Fetion’ by China Mobile and UMS by China Unicom, have also been quite successful in the country

The availability of IM-capable handsets at very low price points and the popularity of desktop IM have played significant roles in the uptake of mobile IM services

In late 2009, China Mobile extended Fetion’s services to the subscribers of China Telecom and China Unicom. China Mobile aimed to promote IM services among the subscribers of other Chinese MNOs and thus Fetion became the second largest IM product after Tencent’s QQ.

Mobile IM users formed 11.9 percent of the total subscriber base in the market at end-2010



Hong Kong

Figure 233: Mobile IM Penetration – Hong Kong (In Percent, 2008 – 2010)


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Hong Kong is an advanced market in terms of deployment of high-speed networks, availability of smartphones, and data use. MNOs in Hong Kong continue to make constant efforts to stimulate and fulfill the mobile data needs of their users.

Mobile IM users as a percentage of total mobile subscribers in Hong Kong increased from 26.1 at end-2008 to 34.7 at end-2010

Hong Kong mobile Internet users spend twice the time on mobile IM as other subscribers in Asia Pacific



India

Figure 234: Mobile IM Penetration – India (In Percent, 2008 – 2010)


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Mobile IM has started gaining momentum in India; largely due to the massive popularity of desktop instant messaging

Mobile IM is primarily being used by the consumer segment Bharti Airtel, the country’s largest operator, introduced a promotional offer of unlimited

e-mail and instant messaging services at a monthly fee of just USD 2.1 (Rs 99) for the first six months of subscription for BlackBerry users. Such a move shows the MNOs’ efforts to boost advanced messaging services, such as e-mail and IM, among the enterprise segment.

Other operators, including Vodafone and Tata DoCoMo, have also launched similar promotional campaigns in the country for BlackBerry users

Synchronica, the UK-based mobile messaging solutions provider, acquired iseemedia in September 2010. iseemedia had contracts with Indian operators, such as Reliance and Tata Teleservices, to provide data services. With this acquisition, Synchronica is poised to provide improved mobile e-mail and IM services to users in the country.

Around1.5 percent of mobile subscribers in India were using mobile IM services at end-2010



The Philippines

Figure 235: Mobile IM Penetration – The Philippines (In Percent, 2008 – 2010)


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The Philippines is referred to as the ‘SMS capital of the world’, and the dominance and popularity of SMS in its mobile messaging market has hampered the uptake of mobile IM services in the country

However, mobile IM and social networking services are expected to drive the uptake of mobile Internet in the Philippines. MNOs are making efforts to promote instant messaging through flat-rate plans and by ensuring seamless communication experiences to users.

In July 2010, the country’s largest MNO, Smart Communications, launched an upgraded version (‘Uzaap Plus’) of their popular IM client ‘Uzzap’. The new version aims at enhancing the overall user experience of mobile instant messaging services.

Nearly 1.5 percent of mobile subscribers in the Philippines used mobile IM services at end-2010



Thailand

Figure 236: Mobile IM Penetration – Thailand (In Percent, 2008 – 2010)


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Subscribers in Thailand are showing a growing appetite for data services and the youth segment is embracing mobile Internet-based services. This bodes well for the uptake of mobile IM services.

1.9 percent of mobile subscribers in Thailand used mobile IM services at end-2010 Mobile IM penetration in Thailand has been on the rise in spite of mobile e-mail being

the most popular mode of Internet communication



North America In North America, mobile data services are being widely used with the mobile messaging market continuing to see unprecedented growth. With the increasing penetration of mobile IM-enabled phones, the uptake of mobile IM services by North American mobile users continues. The region has the highest penetration in terms of mobile IM users and is expected to enjoy this dominant position to 2015. In 2010, the region’s mobile IM user base stood at 71.2 million, registering 53.8 percent growth over 2009’s user base, and representing 22.9 percent of the worldwide mobile IM user base. Furthermore, the user base will increase to 285.8 million by end-2015, at a CAGR of 32 percent (2010-2015). In 2015, regional mobile IM users will make up 17.8 percent of the worldwide mobile IM user base. The figure below highlights the projected North American mobile IM user base during 2008-2015.

Figure 237: Mobile IM Users – North America (In Million, 2008 – 2015F)


F – Forecasted

The region has the highest penetration of mobile IM users among mobile subscribers. In 2010, mobile IM users accounted for 21.3 percent of North America’s total mobile subscriber base. By end-2015, this penetration level is expected to reach 70.3 percent, which will be much higher than Europe’s second-highest mobile IM penetration level (30 percent).

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The region has the highest penetration in terms of mobile IM users and is expected to enjoy this dominant position to 2015.



North American mobile IM revenue was USD 1.7 billion in 2010, and accounted for 24.6 percent of worldwide mobile IM revenue. This revenue figure is forecast to increase to USD 5.4 billion by end-2015, after growing at a CAGR of 26.3 percent between 2010 and 2015. The region’s contribution to worldwide mobile IM revenue is expected to decline in the coming years and by end-2015 only 17.2 percent of worldwide mobile IM revenue will originate from North America.

Figure 239: Mobile IM Revenue – North America (In USD Billion, 2008 – 2015F)


F – Forecasted

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Figure 238: Mobile IM Penetration – North America (In Percent, 2008 – 2015F)


F – Forecasted North American mobile IM revenue was USD 1.7 billion in 2010 and is forecast to increase to USD 5.4 billion by end-2015, after growing at a CAGR of 26.3 percent between 2010 and 2015.

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Figure 240: Mobile IM Penetration – Canada (In Percent, 2008 – 2010)


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Canadian MNOs have partnered with popular desktop IM applications to replicate them on handsets

Rogers Wireless offers access to Windows Live Messenger and Yahoo Messenger; TELUS Mobility provides Windows Live Messenger; and Bell Mobility offers BlackBerry Messenger, Windows Live Messenger, Yahoo Messenger and Google Talk

The use of IM services has increased mainly due to the growth of smartphone users including BlackBerry, iPhone and Android-based devices

The mobile IM user base in Canada has shown significant growth between 2008-2010 and formed 17.2 percent of the total mobile subscriber base at end-2010



The US

Figure 241: Mobile IM Penetration – The US (In Percent, 2008 – 2010)


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The increase in the uptake of mobile IM can be attributed to the increasing penetration of smartphones and availability of high-speed data packages

Mobile IM use has been increasing in both the consumer and enterprise segments, though the former constitutes the major user group

Mobile IM users formed around 21.6 percent of total mobile subscribers in the US at end-2010



Latin America Like other messaging services, mobile IM is gaining popularity in Latin America. In 2010, the region’s mobile IM user base stood at 15.1 million and represented 4.8 percent of the worldwide mobile IM user base. In the coming years, mobile IM is expected to fare well in Latin America, with the regional mobile IM user base projected to reach 101.9 million by end-2015, after growing at a CAGR of 46.5 during 2010-2015 – the highest CAGR among all regions. The figure below shows the Latin American mobile IM user base during 2008-2015.

Figure 242: Mobile IM Users – Latin America (In Million, 2008 – 2015F)


F – Forecasted

With the increasing focus of MNOs towards mobile data services, the mobile IM user base is now expected to rise dramatically. Only 2.8 percent of total mobile subscribers were using mobile IM services in 2010, but this penetration level is expected to reach 14.8 percent by end-2015.

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Only 2.8 percent of total mobile subscribers were using mobile IM services in 2010, but this penetration level is expected to reach 14.8 percent by end-2015.



Due to mobile IM’s comparative lack of popularity in this region, the 0.19 billion in revenue generated by its users in 2010 made the smallest contribution (2.8 percent) to worldwide mobile IM revenue in 2010. Revenue generated by mobile IM is forecast to grow to USD 1.06 billion by end-2015, at a CAGR of 41.2 percent during 2010-2015. This anticipated growth means the region’s share in worldwide mobile IM revenue will rise to 3.4 percent by end-2015.

Figure 244: Mobile IM Revenue – Latin America (In USD Billion, 2008 – 2015F)


F – Forecasted

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Figure 243: Mobile IM Penetration – Latin America (In Percent, 2008 – 2015F)


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Revenue generated by mobile IM is forecast to grow to USD 1.06 billion by end-2015, at a CAGR of 41.2 percent during 2010-2015.

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Key Geographical Markets Brazil

Figure 245: Mobile IM Penetration – Brazil (In Percent, 2008 – 2010)


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Brazil has recorded significant growth in its mobile IM user base during 2008-2010. This user base almost doubled from end-2008 to end-2010.

Nearly 5.4 percent of Brazilian mobile subscribers were using mobile IM services at end-2010

Data services, such as e-mail and IM, are being launched by MNOs to reduce the churn rate and retain customers. In late 2010, Claro introduced the mobile IM solution ‘Claro Messenger’ to promote IM services among subscribers and to increase customer loyalty.



Mexico

Figure 246: Mobile IM Penetration – Mexico (In Percent, 2008 – 2010)


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Mexico has witnessed an increase in the use of mobile Internet-based services during the past couple of years, including significant growth in mobile IM services

Subscribers accessing mobile IM services formed nearly 2.6 percent of the Mexican subscriber base at end-2010

Telcel, the country’s largest operator, launched an instant messaging product ‘Messenger Telcel’ in 2010 which can be easily downloaded through SMS. Messenger Telcel enables users to find other users via their Telcel mobile number. It also provides several features such as chatrooms and the freedom to create a unique profile with a profile photo. Messenger is available with both subscriptions: unlimited and per KB usage charges.



Africa and Middle East Impediments, such as a lack of appropriate infrastructure and technology, illiteracy and affordability, curbed the growth of advanced mobile data services in the region in the past, but such services are now gaining momentum. Mobile IM has also increased its popularity in the region in recent times, to amass 17.7 million mobile IM users in 2010 – over 65 percent more users than in 2009. This growth can partly be attributed to the limited number of personal computers and the very high cost of accessing the Internet via a PC. The widespread availability of mobile phones and the growing popularity of smartphones, combined with the falling prices of data-plans, are drivers providing the required boost to the regional data services market. The mobile IM user base is forecast to increase to 98.8 million by end-2015, at a CAGR of 41.1 percent between 2010 and 2015. The region’s contribution to the worldwide mobile IM user base is also expected to rise from 5.7 percent in 2010 to 6.2 percent in 2015. The figure below highlights mobile IM users in Africa and the Middle East (AME) during 2008-2015.

Figure 247: Mobile IM Users – Africa and Middle East (In Million, 2008 – 2015F)


F – Forecasted

In 2010, mobile IM users constituted 2.3 percent of the total regional mobile subscriber base. With future growth, this penetration is forecast to reach 8.1 percent by end-2015. The next figure depicts the projected growth in penetration of mobile IM users in Africa and Middle East during 2008-2015.

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The mobile IM user base is forecast to increase to 98.8 million by end-2015, at a CAGR of 41.1 percent between 2010 and 2015.



In 2010, mobile IM services registered revenue of USD 0.5 billion in the AME region, an increase of more than 60 percent over 2009 revenue. AME’s contribution to worldwide mobile IM revenue stood at 8.1 percent in 2010 and will account for 9 percent in 2015, when revenue reaches USD 2.8 billion – after growing at a CAGR of 38.7 percent during 2010-2015. The figure below shows the mobile IM revenue in Africa and the Middle East during 2008-2015.

Figure 249: Mobile IM Revenue – Africa and Middle East (In USD Billion, 2008 – 2015F)


F – Forecasted

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Figure 248: Mobile IM Penetration – Africa and Middle East (In Percent, 2008 – 2015F)


F – Forecasted

AME’s contribution to worldwide mobile IM revenue stood at 8.1 percent in 2010 and will account for 9 percent in 2015, when revenue reaches USD 2.8 billion – after growing at a CAGR of 38.7 percent during 2010-2015.

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Egypt

Figure 250: Mobile IM Penetration – Egypt (In Percent, 2008 – 2010)


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In January 2010, MobiNil partnered with Nokia to provide the ‘Nokia Messaging’ service to its subscribers using Nokia handsets. Such a move will further boost ongoing efforts to promote messaging services, such as e-mail and IM, in the country. Subscribers will also be allowed to use Window Live Messenger, Yahoo Messenger, GTalk, AIM, ICQ, and Ovi IM clients when using Nokia smartphones.

Vodafone and Etisalat are also pushing mobile Internet services through high speed networks and unlimited Internet plans

In 2010, the BlackBerry Bold 9700 smartphone was launched at USD 723.3 (EGP 4,199) in the Egyptian market. Aggressive promotional campaigns enticed enthusiastic users to own a BlackBerry Bold and start using its IM services.

Subscribers accessing mobile IM services formed nearly 2.5 percent of the Egyptian subscriber base at end-2010



Nigeria

Figure 251: Mobile IM Penetration – Nigeria (In Percent, 2008 – 2010)


1.2

1.8

2.6

0

1

2

3

2008 2009 2010

Mob

ile IM

Pen

etra

tion

(In

Per

cent

)

Year

Mobile IM is still in its early stages of adoption and development in Nigeria MNOs are making efforts to push messaging services, such as e-mail and IM, to

facilitate the growth of revenues and recoup shrinking SMS and MMS revenues MTN Nigeria offers the ‘Messenger’ IM service; Starcomm’s mobile IM service is called

Africhat 2.6 percent of the Nigerian mobile subscriber base was accessing mobile IM services

by the end of 2010



South Africa

Figure 252: Mobile IM Penetration – South Africa (In Percent, 2008 – 2010)


10.0

14.2

20.1

0

4

8

12

16

20

24

2008 2009 2010

Mob

ile IM

Pen

etra

tion

(In

Per

cent

)

Year

Mobile IM is proving popular among South African teens With a user base of more than 7 million in 2010, MXit – an instant messaging and

mobile social networking application – is the most popular IM product in the country. MXit provides an affordable messaging service and is compatible on more than 2,500 handsets – significantly, including very basic handsets.

Other popular IM products are mig33, MTN’s noknok, and Vodacom’s Meep Additional features, such as chat rooms, emoticon expressions, virtual gifts and games,

have led to a surge in instant messaging in the country The proportion of South African subscribers accessing mobile IM services reached 20.1

percent at end-2010



Chapter 8 Mobile Messaging Vendor Survey



Mobile Messaging Vendor Survey As part of our report ‘Mobile Messaging Futures 2011-2015’, Portio Research reached out to the mobile messaging solutions community to understand views and opinions on mobile messaging. The following sections summarise our survey findings, grouped by the type of mobile messaging product. SMS

The A2P–P2P Split The worldwide SMS market is still dominated by P2P SMS. This statement has been reconfirmed by our survey respondents.

Although A2P SMS traffic has been increasing over the years, in reality it still forms only 11 percent of worldwide SMS traffic. The contribution of A2P SMS to worldwide SMS revenue lies between 20 and 40 percent. The contribution of A2P SMS varies across regions, as it is dependent on: • A2P SMS acceptance from the public, both for value-added services and informational

services (such as banking) • The varying ability of operators to protect their subscribers from fraudulent or unsolicited

A2P SMS, via SMS anti-spam platforms • Regulatory requirements regarding A2P control and anti-spam

A2P SMS has made significant strides mainly due to the strong growth in social networking and mobile financial services. MNOs are also able to identify potential A2P revenue generating segments including missed call notifications, voice mail notifications, and similar traffic to carry advertising and network messages. While the areas of applications differ across regions, A2P is being used as a successful broadcasting tool in mature markets such as North America, Western Europe and certain parts of Asia Pacific.

Figure 253: What is the contribution of A2P SMS in worldwide SMS traffic?


While the areas of applications differ across regions, A2P is being used as a successful broadcasting tool in mature markets such as North America, Western Europe and certain parts of Asia Pacific.

54.5%27.3%

18.2%

<10% 10-20% >20%



P2P SMS continues to be the major driver for growth in most of the emerging markets – including Africa and Asia Pacific – mainly due to the increasing penetration of mobile phones. Trends and forecasts • P2P and A2P traffic will continue to grow across regions. The growth can be attributed

to a range of factors including increasing mobile penetration, restricted access to broadband and more value-added services from operators. This traffic increase does not necessarily translate to an increase in revenues for the P2P SMS segment because of decreasing tariffs and bundling options. A2P SMS will be the main revenue driver for SMS.

• Although A2P SMS is expected to grow across regions, the short-term growth will be driven by the mature markets and primarily the enterprise sectors therein. The growth in SMS is expected to be driven by A2P services including social networking, mobile marketing, mobile financial services, enterprise and M2M (machine-to-machine) services, and Internet services.

• Major Internet application providers – such as Google, Facebook, and Twitter etc. – are offering consumer services for SMS, which may have some impact on SMS client/handset based traffic. However, this application originated traffic is governed by restrictions including anti-spam laws and short code availability (especially in the US), which can prevent widespread adoption. If these and similar impediments are removed, there will be faster growth in A2P adoption and traffic volumes.

• Due to low broadband penetration in developing countries, mobile phones will become the preferred avenue for accessing digital content, which in turn will drive the demand for associated services, and will therefore lead to corresponding growth in SMS revenue. This revenue comes from the bundled data plans because these solutions tap potential market demand.

Shift from Handsets to Internet Browsers and IM Clients The majority of survey respondents strongly feel that there is no cannibalisation effect on SMS following the emergence of new communication modes, such as Internet browsers and IM clients.

61 Note: The total may not add up to 100 percent because of rounding-off errors.

P2P and A2P traffic will continue to grow across regions. The growth can be attributed to a range of factors including increasing mobile penetration, restricted access to broadband and more value-added services from operators.

Figure 254: Do you see SMS shifting from handsets to Internet browsers and IM clients?61


17.9%

67.9%

14.3%

Yes No Neutral



Surveyed vendors believe that there is no comparison between the use of SMS, Internet browsers and IM applications as they do not address the same mobile communication needs of customers.

• Mobile e-mail is mostly sought for professional use. It is not perceived as intrusive and does not imply an immediate response.

• Instant Messaging is highly intrusive and expects a fast reply. In the case of SMS, the sender does not know if the recipient is available or has coverage.

From the survey, it is clear that sending and receiving SMS via a PC on Internet browsers and websites is perceived as becoming more common. However, the adoption is being hampered by uneven availability and varying ease of use across Web properties. Currently, the ratio of worldwide SMS traffic generated from browsers and messengers is estimated to be less than 5 percent and is expected to reach 15 percent by 2015. This traffic is expected to increase with more widespread availability of these features in the near future. Moreover, SMS is delivered as pure ASCII62

• Enterprise SMS Bundles form 4.5 percent of total SMS traffic, mainly generated by enterprise subscribers. This is expected to grow to 30 percent by the end of 2011 due to an increasing number of MNOs deploying enterprise specific service offerings. Growth is

on overhead channels and not on voice or data channels. Mobile e-mail and IM clients need a data channel such as the Internet, which also necessitates the use of a smartphone. With an increase in the availability of Internet-enabled feature phones, the shift from SMS to browsers is expected to pick up pace in the coming years.

A few vendors in the survey, however, feel that the shift towards e-mail and IM-based messaging has already begun and the speed of transition might vary across regions. This shift was observed in the developed markets, particularly in the US, where smartphones such as iPhone and Android-based handsets are offering high-speed data and attractive communications packages. Companies such as Skype, Facebook and Twitter are already using SMS generated from the Internet, which reinforces the idea that Internet-based SMS A2P is growing on a global basis. This trend towards more SMS originating from devices other than mobile handsets will continue because of the push-messaging capability of the SMS channel. With the increasing penetration of these smartphones in emerging markets, the shift towards browser based messaging might increase in the near future. SMS in the Enterprise is growing steadily Enterprise SMS as a percentage of total SMS traffic ranges between 7 to 20 percent across geographies. In the developed economies, enterprise SMS is expected to grow to 25-30 percent by the end of 2011. This growth will be mainly driven by ubiquity and the native push-messaging capability of enterprise SMS. The uptake of enterprise SMS is significant among the world’s top corporations as they look towards new and innovative value-added messaging technologies to better communicate with their customers, and to streamline and automate their business communication processes.

At the lower end of the scale, small service businesses are increasingly using SMS to send product information and reminders to provide better customer services. Enterprise SMS traffic is expected to come mainly from two sources:

62 Note: ASCII stands for American Standard Code for Information Interchange.

The ratio of worldwide SMS traffic generated from browsers and messengers is estimated to be less than 5 percent and is expected to reach 15 percent by 2015.

In the developed economies, enterprise SMS is expected to grow to 25-30 percent by the end of 2011. This growth will be mainly driven by ubiquity and the native push-messaging capability of enterprise SMS.



expected to be strongest in developed regions such as Western Europe, North America and parts of Asia Pacific including China, Hong Kong and Japan.

• M2M traffic forms 3 percent of total SMS traffic. Due to significant industry interest and associated investment in M2M, M2M traffic is anticipated to grow y-o-y by 20 percent by end-2011. Growth here is expected from the Latin American region.

Apart from financial institutions, enterprise SMS is being adopted across other sectors, in particular transportation/logistics/travel, the public sector (especially healthcare), advertising and broadcasting, as well as by retail and utility companies, and social networking and Internet companies.

As penetration in this segment is still low, the volume generated by this segment will continue to grow at a rapid pace.

Using short codes internationally has been tremendously successful for delivering bulk messaging to consumers. Outside the US, enterprise SMS has been a significant technology used by various brands, corporations and public agencies for decades because the MNO absorbs the cost of sending an SMS to a mobile phone. But in the US, the limited use of short codes is due to the fact that MNOs are not supportive of application approval and slow down the process. Additionally, the current costs for short codes and bulk messaging make it prohibitive. In order for enterprise SMS to keep growing, vendors believe that it’s important for MNOs to offer various value-added services, specifically by providing businesses with Quality-of-Service (QoS) and delivery guarantees. These can include immediate delivery, throughput and the provision of dedicated Service Level Agreements (SLAs) on SMS services. For businesses to adopt SMS as a core communications tool, these QoS parameters need to be built into every engagement to ensure the reliability and security of the medium. A few vendors in the survey feel that though MNOs have realised the importance of enterprise SMS, only 20-30 percent have the necessary infrastructure in place to address the enterprise SMS market requirements. The remaining operators are yet to finalise their strategy to meet the increasing demands.

For businesses to adopt SMS as a core communications tool, QoS parameters need to be built into every engagement to ensure the reliability and security of the medium.



Threats from Other Mobile Messaging Services in the wake of 3G The majority of surveyed vendors feel that the growth of SMS will not be impacted by the launch of 3G services.

Mobile e-mail and mobile IM are client dependent whereas SMS clients are native to all phones and require no setup. The vendor community feels that the impact of mobile e-mail and mobile IM is negligible due to the low penetration of 3G in emerging markets. In addition, vendors feel that mobile e-mail and mobile IM will further enhance SMS use, not cannibalise it. Improved messaging technologies such as these bring more social interaction into the mobile space, which creates a spill-over effect for SMS. SMS, which presently has a wider reach than mobile e-mail and mobile IM, allows conversations to continue beyond the e-mail and IM client. The introduction of vast Wi-Fi hotspots in Europe and North America, as well as the penetration of smartphones – among them the iPhone, is leading to an increased use of mobile e-mail and IM, but this is by no means a negative situation for the SMS industry as this puts pressure on the MNOs to be more innovative and creative to promote SMS use. In the case of emerging markets, 3G may not lead to an immediate growth of e-mail and IM, because to flourish these services also require a good mobile Internet connection, and appropriate pricing and a variety of data plans to be on offer to subscribers. The majority of mobile phones used in these markets do not have the capacity to make use of data services. If the service turns out to be too expensive, the uptake of mobile IM and mobile e-mail is severely compromised regardless of how fast and reliable the 3G services are.

However, a few surveyed vendors feel that in geographies such as Asia and the Middle East, alternate applications – such as BlackBerry Messenger – are growing in use, to such an extent as to reduce SMS traffic and associated revenue. With the decreasing price of smartphones (for example: lower-end Android devices), mobile e-mail and mobile IM might become the preferred choice over SMS. On the other hand, in geographies where high-speed data plans are not rolled out, there is still a market for feature phones (e.g. Asia, Africa) and in these markets SMS will continue as the major medium for communication.


Figure 255: Has the launch of 3G had any negative impact on the growth of SMS?63


SMS, which presently has a wider reach than mobile e-mail and mobile IM, allows conversations to continue beyond the e-mail and IM client.

17.9%

64.3%

17.9%

Yes No Neutral



SMS Traffic and Revenue: New Opportunities in the next five years The majority of vendors surveyed feel that global SMS revenue and traffic will continue to grow over the next five years, generated primarily within the African, Asian and Latin American markets. Latin America is singled out as a very exciting region as MNOs and regulatory committees are rapidly pressing forward with plans to open up their mobile markets. In terms of traffic, the P2P segment is expected to grow in the emerging economies primarily due to increasing mobile penetration. But revenues generated from this segment are expected to stagnate and then decline in the next five years owing to tariff reductions and bundling options in these emerging economies. Due to the decrease in revenues from P2P SMS, MNOs are looking for new opportunities in A2P SMS that can act as revenue generators in the next five years. Some of the A2P services that are expected to grow include: • Social networking • Mobile marketing (advertising, coupons etc) • Mobile financial services • Enterprise and M2M services • Internet services (PC clients and information services)

The growth of these A2P services varies across regions. For example, enterprise SMS is expected to grow at a rapid pace in developed nations, as ever more companies are swiftly embracing this medium. But in the case of emerging economies, mobile financial services are expected to grow mainly due to their reach and often a lack of an accessible, traditional alternative. Vendors believe that text messaging has historically proved innovative and that the SMS industry will keep reinventing itself for some years to come, to see the medium applied to more and more markets – and used in newly devised ways. MMS

The A2P–P2P Split The split between A2P and P2P varies across regions, as it is mainly dependent on the type of rich media service offerings provided by operators. From the vendor survey, it was found that A2P MMS traffic typically varies between 20 to 40 percent, and might go up in specific regions – such as Asia – where MMS is being adapted by media companies (from print to broadcast companies) to deliver news, entertainment and advertising to a large subscriber base. Furthermore, A2P MMS is expected to stimulate the growth of P2P MMS. During the holy month of Ramadan in 2009, Zain Kuwait started a promotional campaign targeting MMS users who at the time formed 14 percent of their total subscriber base. These users were sent customised Ramadan greeting cards through MMS. In turn, these users exchanged those cards with their family and friends, and as a result Zain recorded a 290 percent increase in subscriber-originated traffic on Ramadan night and a 380 percent increase in subscriber-originated traffic on Eid night.

In terms of revenues, the A2P segment constituted the clear majority with a contribution of 70 percent in 2010. Globally, MNOs with large portfolios of rich media offerings have higher revenues in A2P MMS than in P2P MMS. The A2P revenue split is expected to grow further with the increasing penetration of MMS-enabled handsets across regions.

Outside the traditional marketing and advertising space, MMS has been widely deployed by law enforcement agencies, government bodies and enterprises.

In terms of traffic, the P2P segment is expected to grow in the emerging economies primarily due to increasing mobile penetration.

In terms of revenues, the A2P segment constituted the clear majority with a contribution of 70 percent in 2010.



Trends and Forecasts • Global MMS traffic is expected to grow over the next five years because of richer A2P

MMS applications, convergence and the multi-device environment • Price models will continue to be more attractive as brands and MNOs further evolve

ways to increase the use of MMS. Developing markets will continue to be the drivers for growth in subscribers and traffic, in part due to the low penetration level of PCs.

• Though P2P MMS will continue to grow in terms of traffic, A2P MMS will bring in the major portion of revenues – mainly attributed to the increasing adoption by media companies of MMS as medium to deliver news, adverts and other marketing campaigns.

• A2P MMS will grow as a corporate communications method that is more effective than traditional channels – such as e-mails and direct mail – due to its targeted, engaging and interactive nature. People are more likely to read their unsolicited mobile messages than their e-mail or direct mail counterparts, due to the proliferation of spam in those traditional messaging channels.

• The future growth of MMS is also linked to alternate communication channels such as IM and e-mail. These channels can complement or supplement the growth of MMS depending on the geographies in which they operate, and service penetration among end users etc.

o If mobile IM service providers can supply users with always-on connectivity, up to date presence, the ability to save conversations like they are used to with MMS, and a minimal impact on battery life, MMS use will likely decrease given the richer nature of IM.

o On the other hand, IM may not completely replace MMS given that a user will not have all of their contacts in an IM buddy list, but will almost always have their mobile number.

• In terms of regional contributions, Africa and Middle East and Asia Pacific are expected to drive the A2P MMS traffic and revenues owing to their large subscriber bases.

A2P MMS will grow as a corporate communications method that is more effective than traditional channels – such as e-mails and direct mail – due to its targeted, engaging and interactive nature.



Impact of high-end phones on MMS usage Vendors surveyed were divided on the impact that high-end feature phones and smartphones have on MMS use.

The majority of survey respondents feel that the increasing penetration of high-end handsets will lead to an increase in uptake of MMS use mainly due to the following reasons: • More handsets will be equipped with MMS capabilities • With improved rich media capturing capabilities, consumers are increasingly using MMS

to forward captured content to their friends, family and colleagues, and to social networking sites. Also, they can be well served by MMS-based adverts, which will boost traffic volumes.

• Growth is further stimulated by parameters including better quality images, improved inter-carrier connectivity, and reduced MMF tariffs etc.

However, a few vendors feel that technology is not a barrier, as MMS-enabled phones have been in the market for over five years and this has not led to major growth in MMS use. Although high-end handsets render better quality images, MMS is mainly affected due to interoperability issues and tariff plans. In fact, the increasing penetration of high-end phones has a negative effect primarily due to the following reasons:

• Smartphones come with a range of free applications for photo and video sharing, sending attachments via e-mails.

• As discussed above, if mobile IM can provide users with always-on connectivity, up-to-date presence, the ability for users to save conversations as they are used to with MMS, and a minimal impact on battery life, MMS use will likely decrease given the richer nature of IM.

Figure 256: Will the increase in penetration of high-end handsets provide impetus to the uptake of MMS?


69.2%15.4%

15.4%

Yes No Neutral



The Impact of Social Networking sites on MMS usage The majority of the vendors surveyed feel that MMS usage will not be hampered due to an increase in social networking sites, but rather MMS use will be driven further with the help of these sites.

Vendors commented that social networking will further enhance the use of MMS due to the following reasons: • MMS is the perfect way to enable all social networking subscribers to post content, even

if they do not have access to an Internet PC or a smartphone with applications • In geographies with a high number of entry-level MMS-enabled devices and costly data

tariff plans, MMS becomes the ideal medium for sharing content across user groups. As the picture and video capture qualities of phones increases, users may want to share the output within their communities.

• Most smartphones have applications enabling members of social media communities to receive alerts on friends’ profiles and updates through MMS

• Rapid improvements in mobile handset technology and the availability of MMS-enabled feature phones will boost MMS uptake

• With the increasing popularity of social networking, operators and social networking sites are jointly looking at various options to monetise mobile social networking

• MMS is increasingly being offered under bundled plans which mean that the cost to send an MMS is becoming negligible. With the added functionality of smartphones that allow for sending to multiple destinations with the same message, it is easier to share images through MMS.

• Also, a significant advantage that MMS has over social networking is the immediacy of delivery. Additionally, group messaging enables the end user to share media content with multiple parties more easily.

• Organisations are integrating MMS into their business communication processes outside of social media. Examples of this use include:

o Retail: sending special offers to customers o Real-estate agencies: forwarding photos of properties o Councils: reporting and assessing property damage o Law agencies: capturing and reporting a crime being committed

A small fraction of the vendors surveyed felt that users can directly upload content on to social networking sites without using MMS, and with the growing number of social networking sites with more added features, that MMS may be heavily impacted.

Figure 257: How will MMS usage be impacted by the rise in social networking sites?


MMS is the perfect way to enable all social networking subscribers to post content, even if they do not have access to an Internet PC or a smartphone with applications.

92.3%

7.7%

No Impact Huge Impact



Mobile E-mail

Consumer vs. Enterprise E-mail It has been reiterated in our survey that enterprise mobile e-mail continues to dominate the worldwide mobile e-mail market. The majority of our survey respondents believe that enterprise e-mail accounts for more than 70 percent of the mobile e-mail market. Increasing penetration of smartphones (such as BlackBerry and alike) across geographies is viewed as one of the factors responsible for this trend.

With the increasing prominence of Apple’s iPhone and other Android-based phones, the uptake of consumer mobile e-mail services is expected to grow rapidly. Though consumer mobile e-mail use is relatively low due to the impact of social messaging, vendors feel that the growing popularity of mail services from Google and Yahoo will drive usage. Some vendors believe that the split between enterprise and consumer mobile e-mail will narrow to 58:42 percent by 2015. On the other hand, enterprise mobile e-mail continues to grow as it is a win-win situation for the corporate end-user, offering flexibility while still not losing control of urgent matters that may emerge in the office. (To read more about the mobile handset and smartphone markets, see Portio Research’s report ‘Smartphone Futures 2011-2015’, released in December 2010) Uptake of Mobile E-mail services The uptake of mobile e-mail services varies widely from region to region. In developed markets, where there is a higher penetration of smartphones coupled with more advanced network technology such as 3G and above, vendors believe that the penetration of mobile e-mail services is around 9 percent. In emerging economies, the penetration of mobile e-mail is perceived as less than 5 percent owing to low penetration of mobile Internet services and higher data tariff plans. This percentage is expected to increase with the rising availability of smartphones and the evolution of new technologies (3G and above). Vendors feel that the global average of mobile e-mail penetration is between 7 to 9 percent of the worldwide subscriber base. As stated earlier in this report, mobile e-mail generated

The majority of our survey respondents believe that enterprise e-mail accounts for more than 70 percent of the mobile e-mail market.

Figure 258: What proportion of Mobile E-mail use worldwide is Enterprise-based?


20.0%

80.0%

Less than 70% 70-85%



USD 25.4 billion in revenue worldwide in 2010, while worldwide penetration reached 9.1 percent. Future Evolution It is further evident from the survey that mobile e-mail will witness significant growth in the next five years. Growth across the consumer and enterprise sectors will vary depending on a range of factors including smartphone penetration in a particular geography, data tariff plans, penetration of mobile Internet services and new technology (3G and above) adoption. In developed markets, vendors believe the uptake of mobile e-mail services will be higher among the enterprise segment, while consumers will typically prefer to communicate instead through social networks, such as Facebook and Twitter. Vendors believe that mobile e-mail growth is mainly fuelled in emerging economies – including Latin America, Asia Pacific, and Africa and Middle East – due to the following reasons: • Increasing availability of mobile e-mail-capable handsets • The deployment of new technologies, such as 3G and above, in these emerging

economies • More enterprises are embracing mobile e-mail services • Reductions in data tariffs

Globally, the evolution of mobile e-mail is less likely to follow the rapid uptake achieved by other mobile services. The majority of surveyed vendors feel that the features offered by different operating system (OS) providers will become very similar as each provider makes small updates, such as adding message threading. In terms of opportunities, searching and the categorisation of e-mail, both on the device and in the cloud, will be future growth areas for mobile e-mail. This will be enabled by the increasing number of phones that have large bandwidth and processing capabilities. Smartphones and Mobile e-mail: The Ultimate Combination? Most smartphones now come pre-loaded with application stores through which users have access to a fair amount of free consumer e-mail and enterprise e-mail solutions. In spite of the availability of these apps, vendors believe that 33-80 percent of total smartphones are actually used for accessing mobile e-mail depending on the geography. The lower survey response estimate of as little as 33 percent can be attributed to the high cost of data packages, lack of user know-how, and usability issues. Though usage varies across regions, surveyed vendors feel that the adoption of mobile e-mail solutions is particularly high among iPhone and BlackBerry users in the consumer and enterprise segments respectively. A few vendors believe that the smartphone market represents only a small fraction of the worldwide mobile market and, as a result, is relatively insignificant in terms of influencing the growth of mobile e-mail. These vendors maintain that in the short to medium term, the real growth of mobile e-mail will come from feature phones that have a browser capability.

Growth across the consumer and enterprise sectors will vary depending on a range of factors including smartphone penetration in a particular geography, data tariff plans, penetration of mobile Internet services and new technology (3G and above) adoption.

Vendors believe that 33-80 percent of total smartphones are actually used for accessing mobile e-mail depending on the geography.



Mobile IM

Uptake of Mobile IM services Vendors vary widely in their estimates of the number of mobile IM users worldwide, with our survey respondents quoting around 300 million as the worldwide number. According to one estimate, mobile IM contributed USD 6.8 billion in revenues in 2010. Vendors believe that six percent of the worldwide subscriber base has been using IM services. In terms of region specific growth, Asia Pacific, Middle East, North America and Latin America will show the major growth in the number of users opting for these services. Mobile IM solutions are currently based on ISP gateways to online IM communities such as MSN, Google Talk, AIM, ICQ, Yahoo Messenger and QQ. New initiatives for enhancing mobile IM, such as GSMA RCS64, and OMA CPM65

Session-based IM is predominantly being utilised by users looking out for SMS alternatives. The other advantage of session-based IM is that it allows users to be in touch with multiple contacts at the same time, either through a PC or a mobile.

Session-based IM also has an advantage over transaction-based IM in terms of providing users with options for switching from chat to audio or video as required. Integration with Desktop IM Vendors assume that mobile IM service providers are providers who integrate the IM services of major portals (like Google, Yahoo) besides offering their own IM. The only impetus for a user to stay on a mobile IM service vendor’s community is:

, are expected to show increasing subscriber additions in the coming years. Session-based IM growing steadily The majority of surveyed vendors agreed that session-based IM has been growing in prominence over transaction-based IM, as it offers real-time communication with other users.

• When there are significant cost savings • The community offers some feature (e.g. video chat) that the user cannot get elsewhere.

64 Note: GSMA RCS stands for Global System for Mobile Communication Association Rich Communication Suite 65 Note: OMA CPM stands for Object Management Architecture Continuous Phase Modulation

In terms of region specific growth, Asia Pacific, Middle East, North America and Latin America will show the major growth in the number of users opting for these services.

Figure 259: What proportion of IM is session-based?


20.0%

60.0%

20.0%

Less than 30% 30% - 80% More than 80%



With the launch of 3G and by introducing many smartphones (like the iPhone), the majority of users are able to access the Internet through mobile phones. Due to this, surveyed vendors feel that the integration of mobile IM with Internet IM (MSN, Yahoo, Gtalk) allows operators to provide a unique balance of access to online communities. Impact of Smartphone applications on Mobile IM traffic and revenues Surveyed vendors expressed mixed views regarding the impact of smartphones’ social networking applications, such as Facebook and Twitter, on mobile IM use.

A few vendors felt that the technology for IP-based messaging for mobile IM is very similar to some of the technologies for social networks, and they are more cohesive. Hence, a blending of mobile IM into a set of services that includes social communication is natural and seamless, from the client side as well as from the enabler and network side. However, a few vendors were of the opinion that the increasing use of social networking is having an adverse impact on mobile IM services. With the increasing penetration of smartphones, the use of social networking is only going to rise at the expense of mobile IM. Our respondents also added that until such time that Facebook apps begin to support Facebook chat, there will be no impact on IM services. But the revenues might get impacted as and when the applications start supporting the chat feature. Growth of Mobile IM in the next five years Although mobile IM is expected to grow in the next five years, surveyed vendors feel that the pace of the growth comes through bundled services which include audio, video, text, IM, chat, e-mail, picture exchange, audio and video clips sharing, conferencing, collaborations, and other social interaction. Our respondents reiterated the view that the growth of IM does not come at the expense of SMS, as SMS still remains the most preferred communication tool due to its own features.

The growth of mobile IM is dependent on the following parameters: • The ability of users to save conversations, as they are used to doing with SMS • IM having a minimal impact on mobile battery life • MNOs rolling out new technologies such as 3G and above • Increasing penetration of smartphones


Figure 260: What is the impact of Smartphone social networking applications on Mobile IM traffic?66


Our respondents reiterated the fact that the growth of IM does not come at the expense of SMS, as SMS still remains the most preferred communication tool due to its own features.

33.3%

33.3%

33.3%

Positive Negative Neutral/ No Impact



Rich Communication Suite Introduction The future of mobile communications will no longer be dependent on any one particular medium (SMS, MMS, IM or E-Mail) but will be more like a converged medium that includes a combination of services. Rich Communication Suite, referred to as a RCS, unleashes the potential of a mobile phone to make it more interactive and able to address the personal and business needs of the end user. The main features of RCS include:

• Enhanced Address Book provides presence and capability indications, enables users to initiate communications including voice calls, video calls, file transfers or messaging, and allows users to integrate multimedia elements, such as photos of contacts.

• Rich Call enables users to exchange different types of content, such as video or photos, during a call

• Rich Messaging expands on traditional instant messaging to simplify and unify multiple messaging mediums and provide a richer user experience

• Broadband access client and support for a multi-device environment enables user access to services and applications from both mobile and fixed terminals (PCs)

RCS trials In France, Bouygues Telecom, Orange and SFR completed technical interoperability trials in March 2010 and a combined user trial of interoperable RCS services involving all three operators was successfully completed. A significant proportion of users said that RCS made their communications easier with their contacts. In Japan, NTT Corp, E-Mobile, KDDI and SoftBank Mobile initiated technical trials for interoperability in 2010. In Spain, Orange and Telefonica successfully completed RCS interoperability tests in April 2010. In Italy, Telecom Italia and Wind conducted technical interoperability trials during the second half of 2009. Subsequently, Telecom Italia conducted its own internal, user-friendly trial of the RCS service concept, which concluded with positive outcomes considering the complexity of an inter-operator, multivendor, multi-client environment. RCS trials are also being conducted in Sweden, Finland and Canada. Case Study: RCS in South Korea SK Telecom was the first to launch commercial mobile IM services in Korea during May 2004, followed by Korea Telecom in March 2007 and LG Telecom in December 2008. As stand-alone products that could not interwork with other operators, users of these IM services were confined to messaging friends within their network. Given the complicated nature of IMS standards, operators needed to define interoperability scenarios and come up with clear guidance for implementation. Fully interoperable commercial IMS services were launched together by these three operators in March 2009. Main features included Phonebook driven buddy lists, Text conversation, Group chatting, Presence (Login/Logout) Results of Interoperability:

• Within six months of the March 2009 launch, mobile IM traffic saw an increase of 100 fold (than prior to interoperability); number of users increased by 54 fold; 74 percent of these users were in the 10-20 age group

• The interoperability of IM services also led to the growth of other valued-added services including MMS

• None of the operators reported any cannibalisation in SMS revenues Next Steps:

• More value-added services: enhanced presence and file transfers • Promoting the services that help in further enhancing take-up rates among users



Chapter 9 Messaging Vendor Profiles



Messaging Vendor Profiles Acision

Introduction

Acision is one of the leading worldwide companies in messaging. It has over 1,600 employees worldwide and operations in 100 countries. Through over 230 customers, it serves 1.8 billion subscribers worldwide, and its clientele includes 8 out of the top 10 worldwide mobile network operators.67

The following table highlights the services offered by Acision:

Acision helps its customers to achieve sustainable and profitable growth through its innovative messaging solutions. The table below shows the regions of operation of the company:

Key products

Some of the key solutions offered by the company include: 1. SMSC 2. MMSC 3. Person to Person Gateway 4. Voicemail 5. Central Management Station

SMSC offers a risk free and smooth migration to an all IP network and evolution to an IP multimedia subsystem. Key features of the solution include: • Attractive personalisation features • Powerful content provider management • Strong security features • Efficient SMS routing as a software option • Flexible, rule-based service logic • Seamless and cost effective N+1 scalability

67 Source: http://www.acision.com/about

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.acision.com/about�



Some of the key benefits associated with the solution include: • Reduces total cost of ownership of SMS infrastructure • Manages and differentiates messaging capacity and quality of service • Builds consumer and partner loyalty • Maximises messaging revenues • Increases market share

MMSC reduces the integration effort for content providers and stimulates the development of premium applications. Key features include: • Legacy support service • Auto-provisioning • Spam and Virus Control • Number portability • Pre/Post paid billing and a prepaid interface

Some of the key benefits associated with the solution include: • Reliable solution built on proven architecture • Future proof solution with an active roadmap • Supports all networks including CDMA, GSM/UMTS and iDEN

Key Clients Key clients of Acision include:

1. Vodafone 2. SETAR 3. Airtel Kenya 4. Telefonica 5. Telcel Mexico

The contact details of Acision are given below:

Contact Details

Headquarters 1430 Arlington Business Park, Theale, Reading, RG7 4SA, United Kingdom

Phone Tel: +44 (0) 845 003 7151 Fax: NA

Website www.acision.com

http://www.acision.com/�



Affle

Introduction

Affle is among the leading companies in the field of SMS2.0. It is headquartered in the UK and presently has offices in eight other locations: Australia, China, India, Indonesia, Malaysia, Singapore, Thailand and the US. The Singapore facility is the company’s R&D centre, while the US facility is the marketing centre. The company offers its solutions to the following categories: • Users • Operators • Content providers • Advertisers • Original equipment manufacturers (OEMs)

The table below shows the regions of operation of the company:

The following table highlights the services offered by Affle:

Key products

The key solutions offered by Affle are given below: 1. SMS2.0 2. Coufon

SMS2.0 offers additional features to users at no extra cost and does not require any enhancement in handset capabilities. The benefits associated with the service include:

• Improved core messaging — provides features such as colour messages, emoticons, scheduled SMS etc.

• Enhanced messaging features — provides features such as graphic and multimedia attachments, SMS to e-mail etc.

• Interactive messaging features — offers features such as customised content and Peer 2 Peer content

• Discounts and promotions — offers several schemes from advertisers, content providers and MNOs

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Coufon enables advertisers to approach their target consumers in a more efficient manner. It gives users an easy access to several discounts offered on their mobile handsets. In addition, it offers the following benefits to consumers: • No additional cost to receive offers • Privacy protection • Non-intrusive coupon delivery • Single interface for multiple offers • Enhanced interactivity options • Automatic updates

Key Clients

Key clients of Affle include:

• M1 Singapore • Telkomsel Indonesia • Maxis • AIS Thailand • Optus Australia • Airtel India

The contact details of Affle are provided below:

Contact Details

Headquarters 1 Stanford Road, London W8 5PP, United Kingdom

Phone Tel: +44 77575 05140 Fax: NA

Website www.affle.co.uk

http://www.affle.co.uk/�



Aicent

Introduction

Aicent is a leading provider of mobile data services enabling operators to integrate their wireless networks with IP networks. It offers services to more than 150 MNOs in 114 countries, covering 2.5 billion mobile subscribers.68

• Warburg Pincus Key Aicent investors include:

• iGlobe Partners • Qualcomm Ventures • Intel Capital

The company has industry associations with the following: • CDMA Development Group • WiMAX Forum • GSMA • Network Products Guide


The following table highlights the services offered by Aicent:

Key products

Some of the key solutions offered by the company include: 1. MMS Gateway Service 2. SMS eXchange Service 3. CAMEL Roaming Service 4. RIM Connection Service 5. 4G Roaming Service

MMS Gateway Service offers a single point of contact for the applications listed below: • Single Network Connection via GRX/CRX network connection • Single Application connection via MM4 interface • Single Contract • Single Settlement/Billing Interface

68 Source: http://www.aicent.net/aboutus.html

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.aicent.net/aboutus.html�



For the service to start, a one-time setup connection is required between an operator’s MMSC and Aicent’s MMS Gateway. This connection can be established using the operator’s existing GRX link. Key features of the service include: • Full MMS MM4 interoperability with all MMSC vendors • Global Mobile Origination(MO)/Mobile Termination (MT) • Support for Mobile Number Portability (MNP) for all MNP countries • Strong network security, free of Internet spamming • Billing mediation and settlement • Carrier grade reliability with full redundancy • Guaranteed Service Level Agreement (SLA) and 24x7 support

SMS eXchange Service enables operators to establish interoperability between different SMSC interfaces including SS7, Short Message Peer-to-Peer (SMPP), Hypertext Transfer Protocol (HTTP) etc. The company offers this service for different business models including: • Transparent (OC-Compliant) Model • Wholesale Model • Settlement Services • Web Reporting • Support

Key features associated with the service include: • Carrier-Grade • SMSC Interworking Compatibility • GSMA OC Compliant • MNP Solution • Anti-Spam • Fraud checking

Key Clients Key clients of Aicent include:

1. China Mobile 2. NTT DOCOMO 3. AT&T 4. Telstra 5. O2 UK

Aicent’s contact details are given below:

Contact Details

Headquarters 2540 North First Street, 2nd Floor, San Jose, CA 95131, USA

Phone Tel: +1 (408) 324 1830 Fax: +1 (408) 324 1826

Website www.aicent.com

http://www.aicent.com/�



Airwide Solutions

Introduction

Airwide Solutions is a leading provider of advanced mobile messaging solutions and wireless Internet infrastructure worldwide. It is headquartered in the USA, has offices in Asia Pacific, Europe, Africa and the Middle East, and its solutions have been deployed by over 150 wireless operators in 70 countries. The company’s investors include: • Advent International • Artiman Ventures • Axiom Venture Partners • Key Venture Partners • Kodiak Venture Partners


The following table highlights the services offered by Airwide Solutions:

Key products

The key solutions offered by Airwide Solutions are given below: 1. AirMessenger 2. AirGate 3. AirGuard 4. AirManager 5. Open Services Framework 6. Fusion Architecture

AirGuard is an advanced mobile security solution which protects subscribers from the following threats: • Mobile handset theft • Messaging spamming • Spoofing • Viruses

The solution offers Equipment Identity Register (EIR) technology to safeguard against mobile handset theft and fraud. The technology has been deployed by 45 operators so far.

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Fusion Architecture is a tiered mobile messaging architecture which offers the following features: • Modular components • Separation of delivery, storage and intelligence • Multi-protocol support • Evolves proprietary interfaces into open interfaces • Open systems without sacrificing application performance • Separation of P2P and application traffic • Platform for rapid deployment of services

The key benefits associated with the solution include: • Protects investment in existing infrastructure • Adds capacity while reducing OPEX and CAPEX • Rapid deployment of new services, without risk • Scalability - buy only what is needed, and best-of-breed products • Provides pathway to Mobile Messaging 2.0

Key Clients

Some of the company’s key clients include: 1. BASE 2. Bell Canada 3. Blyk 4. Cellcom 5. Cricket Communications 6. Etisalat 7. KPN 8. MTC Vodafone, Bahrain 9. nTelos 10. O2, Czech Republic 11. OmniTel, Lithuania 12. Proximus, Belgium 13. Qtel 14. SFR France 15. Telefonica Moviles 16. Telstra Australia 17. True Move (Orange, Thailand) 18. Vodacom South Africa 19. Vodafone (UK, Albania, Australia, Egypt, Greece, Ireland, Netherlands and Spain) 20. WIN

Contact details for Airwide Solutions are given below:

Contact Details

Headquarters 20 Burlington Mall Road Suite 420 Burlington, MA 01803, USA

Phone Tel: +1 781 229 2406 Fax : +1 781 229 2790

Website www.airwidesolutions.com

http://www.airwidesolutions.com/�



Alcatel-Lucent

Introduction

Alcatel-Lucent is a leading transformation partner of carriers, service providers and enterprises, providing solutions to deliver voice, data and video communication services to end users. It is headquartered in Paris and has operations in 130 countries worldwide. The company achieved revenues of USD 11.1 billion in first nine months of 2010. The table below shows the regions of operation of the company:

The following table highlights the services offered by Alcatel-Lucent:

Key products

Alcatel-Lucent’s product portfolio consists of: 1. Contact Centres 2. Network Infrastructure 3. IP Telephony 4. My Instant Communicator 5. Automated Message Delivery System

My Instant Communicator integrates communication tools including phone calls, voice mails, text messages, faxes, e-mails, instant messages across different devices. The unified services offered are: • Telephony services - available through a user's preferred data and voice collaboration

software, such as IBM Lotus Sametime • Messaging services - such as voice mail, fax and e-mail through a Microsoft Outlook

or Lotus Notes mailbox • Collaboration services - such as instant messaging and peer-to-peer video, through

voice-over IP (VoIP) and point-to-point video • One number services - through call routing and screening interfaces • Presence services - through telephony and instant messaging presence information

The benefits of the products include: • Easy to use and manage a variety of communications media • Automatic notification of incoming communication • Seamless integration into the security policy of the enterprise

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

Some of the key clients of Alcatel-Lucent include: 1. AT&T 2. Bell Canada 3. Sprint Nextel 4. T-Mobile 5. TELUS Mobility 6. Verizon Wireless 7. Brasil Telecom 8. Entel 9. nTelos 10. Nuevatel 11. Telefonica 12. Telmex 13. AFK Sistema 14. Belgacom 15. BT 16. France Telecom 17. KPN 18. Vodafone 19. Vimpelcom 20. Etisalat 21. Orascom 22. Globacom 23. China Mobile 24. China Unicom 25. NTT DOCOMO 26. Reliance 27. Telstra

Alcatel-Lucent’s contact details are given below:

Contact Details

Headquarters 3 av. Octave Greard, 75007, Paris, France

Phone Tel: + 33 0 1 4076 1010 Fax: +33 0 1 4076 1400

Website www.alcatel-lucent.com

http://www.alcatel-lucent.com/�



Anam

Introduction

Anam is a leading provider of complete messaging solutions. Anam offers SMS and MMS delivery platforms and service control products to MNOs worldwide. It is headquartered in Dublin, Ireland and has offices in London, Boston and Malaysia. Anam has industry partnerships with big names including Motorola, Cisco, Ericsson, Cloudmark and Amobee. The table below shows the regions of operation of the company:

The following table highlights the services offered by Anam:

Key products

The key products offered by Anam are: 1. Ad-funded SMS 2. SMS money transfer 3. Anti spam 4. Multi Sim 5. Eclipse SMSX 6. Eclipse MMSX 7. Eclipse MM Exchange

Ad-funded SMS empowers service providers to generate extra revenue by pushing adverts along with their mobile terminated SMS. It allows operators to target their intended segment in a more efficient manner. It also benefits subscribers who opt for this service, as they are entitled to several discount schemes and subsidised bills from the MNO. SMS money transfer allows subscribers to transfer money to other users through an SMS, in a highly secure and easy manner. It can be used for several purposes including: • Sending money home • Paying bills • Sending a birthday present • As an alternative to cheques

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

Some of the key clients of Anam include: 1. BT 2. TELUS Mobility 3. Meteor 4. Celcom 5. Citic 6. Go Mobile

Anam’s contact details are given below:

Contact Details

Headquarters Hospitality House 16/20 South Cumberland Street, Dublin 2, Ireland

Phone Tel: + 353 1 4830200 Fax: + 353 1 4830299

Website www.anam.com

http://www.anam.com/�



Belgacom ICS

Introduction

Set-up in 2005, Belgacom ICS (BICS) is a joint venture between Belgacom, Swisscom and MTN. The company provides solutions for voice, roaming, messaging, connectivity and mobile financial services to telecom operators worldwide. Within two years of its launch, the company became the second largest player in the MMS segment with a market share of 22 percent69

The following table highlights the services offered by BICS:

at the end of 2007. BICS strategic partners include Omantel in the Middle East and Digicel Group in North America and Latin America. The table below shows the regions of operation of the company:

Key products

The company’s solutions include:

1. SMS Transit 2. MMS Transit

SMS Transit facilitates SMS interworking by establishing agreements on interworking with every single operator across all countries. Some of the key features associated with this service include:

• Carrier-grade solution with end-to-end control at transmission, signaling and messaging level

• State-of-the-art anti-spam and fraud prevention mechanisms • Providing online visibility on traffic usage and performance • Real-time performance monitoring with proactive intervention in case of abnormal

traffic patterns • 24/7 support of a multilingual and experienced fault management team

MMS Transit provides operators with instant coverage that help their end users experience a seamless MMS experience. 69 Source: http://bics.com/index.php/company/history/

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://bics.com/index.php/company/history/�



Key benefits associated with the service include: • Coverage of more than 205 MMS operator networks • Extended coverage to non-MMS networks through “MMS Virtual Delivery” • Supporting multiple settlement models to minimise mobile operators' investments in

launching the service • Valued and advanced web tools for destination election and reporting

Key Clients The following are some of the key clients of BICS:

1. MTN 2. Maroc Telecom 3. Wataniya Mobile

BICS’s contact details are shown below:

Contact Details

Headquarters

Rue Lebeau 4 1000 Brussels Belgium

Phone Tel: +32 2 547 52 10 Fax: +32 2 547 52 12

Website

www.bics.com

http://www.bics.com/�



Bubble Motion

Introduction

Bubble Motion is a leading provider of next generation mobile messaging applications. The company has developed award winning service BubbleTalk, which allow users to use voice messaging and advanced audio content applications. The company is headquartered in Silicon Valley and some of its key investors include: • Sequoia Capital • Palomar Ventures • Comcast Interactive Capital

It has industry partnerships with the following: • NEC • HP • Oracle • Aricent • Dialogic Corporation


The following table highlights the services offered by Bubble Motion:

Key products

Key products developed by the company include: 1. BubbleTalk 2. BubbleCast 3. BubbleSong 4. BubbleContest

BubbleTalk allows users to send voice messages anywhere in the world. Key benefits associated with the service include: • Increase in ARPU • Ability to target the entire user base • Minimal investment required • Global interconnection • Flexible deployment options

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



BubbleSong allows subscribers to send the desired content with an introductory comment. The service offers the following benefits to MNOs: • Increase in ARPU • Offers a new fun service to users • The ability to leverage existing content libraries • Ease of administration

Key Clients The following are some of the key clients of Bubble Motion:

1. Airtel 2. KDDI 3. Reliance 4. Vodafone 5. Turkcell 6. DiGi 7. Indosat 8. AIS Thailand 9. CSL (New World Mobility)

Bubble Motion’s contact details are shown below:

Contact Details

Headquarters 100 View Street #201 Mountain View, CA 94041, USA

Phone Tel: +1 650 900 4500 Fax: +1 650 969 1137

Website www.bubblemotion.com

http://www.bubblemotion.com/�



Clickatell

Introduction

Clickatell is a leading provider of bulk messaging services and SMS gateway connectivity. It is headquartered in Redwood City, USA and has offices in the UK and South Africa. It offers its services to 819 operators in over 220 countries worldwide. Some of its key partners include: • BT • O2 • Vodafone


The following table highlights the services offered by Clickatell:

Key products

Some of the key solutions offered by the company include: 1. SMS Gateway 2. Communicator 2 3. SMS Bundles 4. Messenger Pro 5. Mobile Marketer

SMS Gateway allows customers to SMS-enable their applications, websites and systems. Users are only charged for the messages they send and there is no charge for signing up to this service. The gateway add-ons include: • Two-way SMS • Shortcode SMS Messaging • Clickatell ICM

SMS Bundles allow subscribers to top-up their credit balance with a pre-decided amount of credit every month. It offers the following benefits to users: • Automated credit top-up • Discounted prices • Option of three SMS bundle sizes as per the needs of users

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients Key clients of Clickatell include:

1. Vodafone 2. Nokia 3. Fujitsu 4. Motorola 5. CNN 6. BBC 7. Rummble 8. First National Bank 9. Standard Bank 10. Nedbank 11. Sanlam

Contact details for Clickatell are given below:

Contact Details

Headquarters 3200 Bridge Parkway, Suite 201, Redwood City, CA 94065, USA

Phone Tel: +1 800 720 0802 Fax: +1 650 440 4961

Website www.clickatell.com

http://www.clickatell.com/�



Colibria

Introduction

Colibria was founded in February 2000, in 2001 it completed its first commercial deployment of mobile IM solutions, and in 2004 it won the Frost & Sullivan Product Innovation Award. It offers advanced mobile messaging solutions, such as mobile IM and converged messaging, and its partners include Acision, Airwide, Nokia Siemens Networks, OpenWave, Syniverse and Motorola. The table below shows the regions of operation of the company:

The following table highlights the services offered by Colibria:

Key products

The key products offered by Colibria are given below: 1. Instant Messaging and Presence Service (IMPS) 2. Mobile Instant Messaging (SIP) 3. Presence Server (SIP) 4. Social Network Gateway 5. Network Address Book

Mobile Instant Messaging Server (SIP) empowers operators to add advanced messaging capabilities to their existing networks. The solution can be deployed in mobile, fixed and converged networks. Key benefits associated with the solution are: • Integrated with all popular SIP clients in the market today • IM history and tracking • SMS wakeup of client optimises battery life (where supported by client) • SMS notification of messages when user not online • Ad hoc and pre defined group messaging support

Social Network Gateway allows the operator to integrate multiple social networks and Internet IM communities on one platform. This approach allows the operator to quickly adapt to changes in subscriber demand as new social and messaging communities emerge. Key benefits associated with the solution are: • Ability to set a status across both messaging and social networking services • Posting pictures once on multiple social networking services • Single logon for all services • Unified address book

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

Key Colibria clients include:

1. Avea 2. Brasil Telecom 3. Cable & Wireless 4. Mobilkom Austria 5. Telefonica 6. TeliaSonera 7. TMN 8. Vodacom

Colibria’s contact details are provided below:

Contact Details

Headquarters Colibria AS, Strandveien 15, P.O.Box 255 1326 Lysaker, Norway

Phone Tel: + 47 67 11 35 00 Fax: + 47 67 11 35 01

Website www.colibria.com

http://www.colibria.com/�



Comverse

Introduction

Comverse is a leading provider of software solutions for value-added services including those for messaging and the mobile Internet. The company has over two billion subscribers in more than 125 countries covering 450 communication service providers.70

• Value added services

Its products primarily focus on the following domains:

• Billing and active customer management • IP communications


The following table highlights the services offered by Comverse:

Key products

The key services offered by Comverse include: 1. Professional services 2. Support services 3. Learning Services

Professional services offer optimisation of several resources including technology, human resources and processes based on the customers’ business, operations and market environments. Support services offer critical support through SLA (Service Level Agreement) packages and preventative services. It empowers its customers to protect their investment and helps them to run their business in a smooth and more efficient manner. Learning services offer hands-on training courses to satisfy the specific requirements of its customers’ staff. Categories covered under this service include: • IT • Network operations • Customer service and marketing

70 Source: http://www.comverse.com/company_profile

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.comverse.com/company_profile�



Key Clients

Key clients of Comverse include:

1. BT 2. France Telecom 3. KPN 4. MTN 5. O2 6. Tele2 7. Telefonica 8. T-Mobile 9. VimpelCom 10. Vodacom 11. Vodafone 12. America Movil 13. AT&T 14. Bell South 15. Sprint Nextel 16. Telcel 17. Verizon Wireless 18. Vivo 19. Airtel 20. BSNL 21. China Mobile 22. China Telecom 23. M1 Singapore 24. Reliance Infocomm 25. SingTel 26. Telstra

Comverse’s contact details are given below:

Contact Details

Headquarters 100 Quannapowitt Parkway, Wakefield, MA 01880, USA

Phone Tel: +1 781 246 9000 Fax : +1 781 224 8143

Website www.comverse.com

http://www.comverse.com/�



Comviva

Introduction

Comviva is a leading provider of integrated VAS solutions to operators worldwide. It was founded in 1999 and is based in India. Up until March 2009, the company was called Bharti Telesoft Limited. Key investors of Comviva include: • Bharti Enterprises • Sequoia Capital • Cisco

It has industry associations with the following: • GSMA • The Internet & Mobile Association of India • Mobile Entertainment Forum • Mobile Marketing Association • Mobile Payment Forum of India • NASSCOM


The following table highlights the services offered by Comviva:

Key products

Key solutions offered by the company include: 1. SMSC 2. MMSC 3. USSD Gateway 4. Bulk Messaging Gateway 5. Message Management Solutions

SMSC is an advanced carrier-grade solution which is network independent and allows operators to scale to handle growing P2P and A2P messaging traffic. It serves as an advanced traffic control and message delivery engine for MNOs. It offers multiple delivery modes and sophisticated traffic handling mechanisms. The key benefits associated with the service include: • Scalable Message Throughput • Reliability and Load Control • Service Differentiation

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



MMSC offers subscribers a richer messaging experience by allowing them to use text, graphics, images and video. It tackles issues such as interoperability and compresses the data in accordance with the capability of handset in order to improve the quality. Key benefits of the service include: • Improved traffic volumes • The ability to launch exciting applications • Higher ARPU

Key Clients The following are some of the key clients of Comviva:

1. Banglalink 2. MTN Ghana 3. Vodafone Egypt 4. Maroc Telecom 5. Etisalat 6. Safaricom 7. Mobinil 8. Airtel 9. Telecom Italia

Comviva’s contact details are provided below:

Contact Details

Headquarters A-26, Info City, Sector 34 Gurgaon 122001, Haryana, India

Phone Tel: +91 124 4819000 Fax: +91 124 4819777

Website www.comviva.com

http://www.comviva.com/�



emoze

Introduction

emoze is a wholly-owned subsidiary of Emblaze and came into existence in 2006. It is a leading provider of mobile push e-mail solutions and deployed its first ever push e-mail solution in January 2007. Its user base is spread worldwide and some of its key partners include: • Nokia • Samsung • Toshiba • Turkcell • Sun Microsystems • Orange • Tulip • Emblaze • Betavine • Mirs • Impetus • Cellmania • Infosonics


The following table highlights the services offered by emoze:

Key products

Some of the key solutions offered by the company include: 1. emoze Enterprise Solution 2. emoze Consumer Solution

emoze Enterprise Solution offers manageable and secure access to e-mail, calendar, contacts, tasks and notes. Its salient features include: • Supports all Microsoft Exchange versions and IMAP servers • Includes full PIM Sync (Contacts, Calendar, Notes and Tasks) • Includes a user friendly IT management console • Available on all mass market devices • Self installed and maintained • Attractive pricing, licensed based

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



emoze Consumer Solution is an easy to install and use mobile e-mail application with the following features: • Supports all major e-mail services (Webmail, ISP mail, Outlook) • Supports social networks (Facebook) • Includes full Contacts and Calendar Sync and attachments • Available on mass market devices • Runs multiple accounts simultaneously • Multilingual

Key Clients The company does not disclose this information.

emoze’s contact details are given below:

Contact Details

Headquarters 22 Zarchin Alexander 43662 Raanana, Israel

Phone Tel: +972 97699333 Fax: NA

Website www.emoze.com

http://www.emoze.com/�



Ericsson

Introduction

Ericsson is a leading provider of telecommunications equipment and related services to mobile and fixed networks worldwide. Over 1,000 networks across 175 countries currently utilise network equipment deployed by Ericsson. More than 40 percent of the world’s mobile traffic passes through Ericsson’s network71

The following table highlights the services offered by Ericsson:

. Ericsson’s business areas are classified into Networks, Multimedia and Global Services. The company is headquartered in Sweden. The table below shows the regions of operation of the company:

Key products

The company’s messaging solutions include:

1. Messaging in One 2. Messaging over IP 3. Multimedia Messaging Centre 4. Video Gateway System

Messaging in One is a feature-rich, simple, quick and cost-effective way to implement, maintain and grow messaging services. Key features associated with this service include:

• Optimising the operations and offering innovative messaging services to satisfy growing needs of interactive consumers

• Consolidating all messaging services – text, multimedia, voice, video mail, IMS chat and Instant Messaging – on one industry standard blade technology platform

• Low initial capital expenditure Multimedia Messaging Centre manages different sources to and from mobile terminals and supports a wide range of standard interfaces.

71 Source: http://www.ericsson.com/thecompany/company_facts

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.ericsson.com/thecompany/company_facts�



Key features of the service include: • Highly flexible; can be adapted according to the user needs of network operators

and users • Supports multimedia messaging through images, animations, audio messages and

video clips Key Clients The following are some of the key clients of Ericsson:

1. Digicel 2. Vodafone 3. Telenor 4. Hutchison Telecom 5. Cable & Wireless 6. TeliaSonera

Ericsson’s contact details are shown below:

Contact Details

Headquarters

Torshamnsgatan 23, Kista 164 83 Stockholm Sweden

Phone Tel: +46 10 719 00 00 Fax: NA

Website

www.ericsson.com

http://www.ericsson.com/�



Funambol

Introduction

Funambol is a US-based company which started in 2001. It is a leading provider of mobile push e-mail solutions, and these solutions have been deployed by MNOs, device manufacturers, portals, service providers, software companies and system integrators. The company’s investors include: • Walden International • HIG Ventures • Nexit Ventures • Castile Ventures • The Golden Mouse


The following table highlights the services offered by Funambol:

Key products

Key services offered by Funambol are given below: 1. Professional services 2. Training 3. KickStart program 4. Annual software maintenance and technical support

Professional services allow its customers to use consulting services from mobile and open source professionals who have expertise in the design, development and deployment of mobile systems. Consultants work in tandem with a company’s product team to design and implement solutions of the highest quality. Annual software maintenance and technical support includes maintenance and support for all the solutions offered by Funambol. It further offers technical assistance, troubleshooting and several other services. Training enables Funambol’s customers to make the most of its solutions. Its instructors prepare training course content, while making sure that the content is relevant to its customers’ needs and applicable to their enterprises.

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

Some of the key clients of the company include:

1. BT 2. Clearwire Communications 3. du 4. Sprint Nextel 5. Telefonica 6. Vodacom

Funambol’s contact details are provided below:

Contact Details

Headquarters 643 Bair Island Road, #305, Redwood City, CA 94063, USA

Phone Tel: +1 650 701 1450 Fax : +1 650 701 1484

Website www.funambol.com

http://www.funambol.com/�



Globatel Media

Introduction

Globatel Media offers solutions enabling companies to easily connect online and mobile users. Its solutions bring mobile handsets and PCs together and allow users to exchange information between these two popular devices. The company was the first mobile messaging solution provider to develop two-way text dialogue from mobile handsets to PCs and vice-versa, irrespective of wireless technology. The table below shows the regions of operation of the company:

The following table highlights the services offered by Globatel Media:

Key products

The key products developed by Globatel Media are given below:

1. Cherple 2. Alirti 3. Mobile campaign manager 4. Call2Action

Cherple is a free SMS chat platform which allows users worldwide to send and receive text messages from an Internet-connected PC to and from any US MNO. The solution is being used by millions of users worldwide. It provides users with real time chat without the need of any smartphone capabilities, expensive data plans and special mobile applications. Call2Action allows operators to send messages to users who type the unique key word in their text messages. The service enables operators to customise these sent messages and reach their intended target. With the help of this service, operators can choose a particular message to be sent, based on the reply received from their users.

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

The company does not disclose this information.

Globatel Media’s contact details are shown below:

Contact Details

Headquarters 4653 Carmel Mountain Road Suite 308-508 San Diego, CA 92130, USA

Phone Tel: +1 888 698 9773 Fax: +1 858 792 7987

Website www.globaltelmedia.com

http://www.globaltelmedia.com/�



Good

Introduction

In January 2007, Motorola Good Technology was formed when Motorola acquired Good Technology, and in 2009 it was acquired by VISTO from Motorola. The company provides 24/7 technical support, system alerting and monitoring, and technical account management. Key investors in the company include: • Allegis Capital • Blueprint Ventures • Draper Fisher Jurvetson • ePlanet Ventures • Growth Fund • GKM Newport • Meritech • Oak Investment Partners • Rustic Canyon Ventures


The following table highlights the services offered by Good:

Key products

Key products developed by the company include: 1. Good Mobile Control 2. Good Mobile Messaging 3. Good Mobile Access 4. Good Mobile Messaging Hosted Edition

Good Mobile Messaging offers users enterprise-class mobile e-mail and personal information management (PIM). It has an intuitive user interface that allows users to personalise and prioritise their information, and the software has FIPS certified 192 bit AES encryption for data, which offers end to end security to users. Key features of the solution include: • Easy to use and personalise • Easy to secure • Easy to manage

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Good Mobile Control offers enterprises comprehensive over-the-air management capabilities, granular security enforcement and end to end visibility for trouble shooting and support. The key features of the solution include: • Simple architecture • Easy to implement • Security and management

Key Clients The following are some of the key clients of Good:

1. AT&T 2. Sprint Nextel 3. Verizon Wireless 4. T-Mobile

Good’s contact details are given below:

Contact Details

Headquarters 101 Redwood Shores Parkway, Suite 400 Redwood City, CA 94065, USA

Phone Tel: +1 650 486 6000 Fax: +1 650 622 9590

Website www.good.com

http://www.good.com/�



Huawei

Introduction

Huawei is a leading provider of telecom solutions in the areas of telecom network infrastructure, application and software, professional services and devices. The company’s products and solutions have been deployed in over 100 countries and have served 45 of the world’s top 50 telecom operators. The company is headquartered in Shenzhen, China and has offices worldwide. The table below shows the regions of operation of the company:

The following table highlights the services offered by Huawei:

Key products

Key solutions offered by Huawei are given below: 1. SMS 2. SMS Router 3. MMS 4. Instant Message 5. Unified Message 6. USSD 7. Anti Spamming

MMS provides a multimedia message service centre (MMSC), multimedia message information gateway, multimedia message redirector, multimedia message content adaptation system, and EnumDNS. Key benefits of the solution include: • Reduced Total Cost of Ownership (TCO) • Increased ARPU through innovative solutions

Instant Messaging provides messaging services on the basis of Session Initiation Protocol (SIP). It supports the access of PC soft terminals, mobile phones, and provides carriers with new messaging services. Some of the features of the solution include: • Open to third-party systems • Uniform service architecture scheme on the IP telecom network • Various value added services including anonymous messaging service, blacklist/white

list, timed message service etc.

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

The company does not disclose this information. Huawei’s contact details are provided below:

Contact Details

Headquarters Bantian, Longgang District, Shenzhen 518129 P.R.China

Phone Tel: +86 755 287 80808 Fax: NA

Website www.huawei.com

http://www.huawei.com/�



Interop Technologies

Introduction

Interop Technologies is a leading provider of wireless messaging, device management and connectivity gateways. The company is headquartered in Florida, USA, and also has offices in Latin America. The table below shows the regions of operation of the company:

The following table highlights the services offered by Interop:

Key products

Key solutions offered by Interop are given below: 1. Messaging solutions 2. Device management solutions 3. Connectivity

Messaging solutions include the following: • Short Message Service Centre 4 Series — it is the world’s fastest SMSC which can

support up to 100,000 MDAs (Mail Delivery Agent) per second throughput and climbing

• Multimedia Message Service Centre — it empowers operators to manage MMS traffic in a more efficient manner. In addition, it offers benefits such as online message creation, sharing, and storage with the help of an MMS Composer.

• 4G Messaging Gateway— it provides forward and backward compatibility, supporting seamless messaging continuity across legacy and next-generation messaging protocols and formats

Device management solutions include the following: • CDMA OTA provisioning — this solution enables operators to increase their first

delivery attempt success rate • SCOPE DM solution with One-Click Fix — enables operators to improve their

customer care and reduce operating costs

Key Clients


Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Interop’s contact details are provided below:

Contact Details

Headquarters 13500 Powers Ct. Fort Myers, FL 33912, USA

Phone Tel: +1 239 425 3000 Fax: +1 239 425 6845

Website www.interoptechnologies.com

http://www.interoptechnologies.com/�



Jinny

Introduction

Jinny is based in Ireland, has regional headquarters in Dubai, and sales and support offices in Sao Paulo, Nairobi and Kuala Lumpur. It offers a variety of messaging and media solutions enabling MNOs to manage costs, retain customers and shorten time-to-market. Its channel partners include Ericsson and Tecnotree. Its technology partners include: • Dialogic Corporation • Dilithium Networks • HP • Red Hat • Sicap • Sun Microsystems


The following table highlights the services offered by Jinny:

Key products

Key products developed by Jinny are shown below: 1. SMSC 2. MMSC 3. Voice SMS 4. Missed call notification 5. Rating engine

SMSC enables operators to introduce new and advanced services in very cost effective ways. It further empowers operators to centralise functions and reduce complexity and costs. Its key features include: • Transparent interoperation with IMS networks • Personalisation using features such as Group Messaging, SMS forwarding, Auto -

Reply, Auto-signature, Enhanced delivery reports, Message status enquiry, Cancel pending messaged etc.

• Support for VAS applications • Scalability and Fault Tolerance

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



The benefits associated with the solution include: • Future-proof investment • Feature-rich SMSC • Flexible license • Proven, stable and flexible

Voice SMS allows users to send voice in place of text messages. The solution is very easy to use and can handle any volume of subscribers. Key service features include: • Inter-operator, roaming and MNP Support • API and BULK interface • Advertising Support • Message Retrieval Interfaces • Message Reply, Forwarding and Distribution lists

The benefits associated with the service include: • Low risk • Easy implementation • Fast time to market • Universal appeal • Compatibility with the majority of handsets

Key Clients

The following are some of the key clients of Jinny:

1. 3 2. ANCEL 3. Cable & Wireless 4. TIGO 5. Digicel 6. Sprint Nextel 7. Viaero 8. Wataniya Telecom 9. Zain 10. Network Norway 11. Safaricom 12. Melita 13. Vodafone 14. Indosat 15. Celcom 16. Telenor

Jinny’s contact details are shown below:

Contact Details

Headquarters Jinny Software Ltd., 29 North Anne Street, Dublin 7, Ireland

Phone Tel : + 353 1 887 2626 Fax : + 353 1 887 2692

Website www.jinnysoftware.com

http://www.jinnysoftware.com/�



MACH

Introduction

Founded in 1987, MACH provides data and financial clearing solutions for wireless roaming. 15 out of the 24 members of the GSMA executive committee use MACH’s clearing services. Headquartered in Luxembourg, MACH has offices in 12 countries serving over 650 MNOs, technology providers, fixed network operators, application stores, SMS aggregators and supply chain management customers. It has industry affiliations with the following: • GSMA • CIBER • Wireless Broadband Alliance • WiMAX Forum • Rural Cellular Association • CDMA Development Group • CTIA


The following table highlights the services offered by MACH:

Key products

Some of the key solutions offered by the company include: 1. SMS Outbound 2. SMS Inbound 3. 2way SMS 4. Messenger

SMS Outbound ensures the delivery of bulk SMS from any application to the subscribers’ handsets. The complexity is reduced through numerous SS7 and direct IP connections covering more than 750 operators across 200 countries. Its salient features include: • Catering for high level volumes • Support for concatenated and binary SMS • Real time delivery receipts • Access to online reporting

Messenger is a web based managed service application that allows SMS to be sent to any mobile subscriber. The solution is aimed at small and medium enterprises, and service

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



providers who do not have the resources to operate a messaging platform. The benefits of the service include: • Creating high volume SMS campaigns • Upload recipient lists with up to 1,000,000 MSISDN • Usage of MACH’s high quality Outbound SMS service platform • Comprehensive performance monitoring. • Pay per message fee schedule avoiding any CAPEX or technical integration

Key Clients The following are some of the key clients of MACH:

1. Orange 2. Vodafone 3. TDC 4. Cable & Wireless 5. Verizon Wireless 6. Microsoft

MACH’s contact details are given below:

Contact Details

Headquarters 15, rue Redmond Reuter L5326, Contern G.D. of Luxembourg

Phone Tel: +352 27 756 280 Fax: +352 27 756 298

Website www.mach.com

http://www.mach.com/�



mcTEL

Introduction

mcTEL is a leading developer of innovative messaging and multimedia solutions. The company came into existence in 1992, has headquarters in Monaco, and regional headquarters in Singapore and Dubai. It has customers in over 30 countries worldwide and its clientele includes: • MNOs • Wireline Network Operators • Mobile Virtual Network Operators • Value Added Service Providers • SMS-MMS Brokers and Aggregators


The following table highlights the services offered by mcTEL:

Key products

The company’s products are divided into the following categories: 1. Device and SIM Management 2. Advanced Messaging 3. Service Delivery Platform for VAS 4. Roaming solutions

Core Messaging products completely manage the transmission and reporting of the SMS and MMS for operators. Solutions offered under this category include: • SMS Centre • International Hub SMS Centre • SMS Router • MMS Centre • Fixed SMS/MMS Centre • SMS First Delivery Attempt • SMS Firewall • USSD Gateway

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Device Management enables operators to achieve the following goals: • Increased ARPU • Reduction in operational costs • Promotion of new services • Full control over handset lifecycle

The solution offers several features including an Automatic Device Detection (ADD) module, Automatic Device Configuration (ADC) engine, Marketing Analysis with advanced Campaign Manager, and SIM Over-the-Air (OTA) module.

Key Clients The company does not disclose this information. mcTEL’s contact details are given below:

Contact Details

Headquarters 41, av. Hector Otto BP 225, MC 98000, Monaco

Phone Tel: +377 92 16 88 88 Fax: +377 92 16 88 65

Website www.mctel.net

http://www.mctel.net/�



Miyowa

Introduction

Miyowa was founded in 2003 by Pascal Lorne and Francois Colon.72

• Google

It provides instant messaging and Mobile Web 2.0 technologies to MNOs, media and brand owners, Internet communities and device manufacturers. Its Community & Portal partners include:

• Yahoo • AOL • Microsoft • Facebook • Twitter • MySpace

It has industry partnerships with leading mobile handset manufacturers that include: • Sony Ericsson • Samsung • Nokia • NEC • LG • INQ • HTC • ZTE • RIM • Huawei


The following table highlights the services offered by Miyowa:

Key products

The key products offered by Miyowa include: 1. InTouch 5 Social Dashboard 2. InTouch 5 Rich Address Book

72 Source: http://www.miyowa.com/Management-Team-pid6.html

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.miyowa.com/Management-Team-pid6.html�



InTouch 5 Social Dashboard offers users seamless access to preferred social network services. Key features of the product include: • Compliance with major social networks (Windows Live, Yahoo, AOL, Google,

Facebook, Twitter, POP/IMAP • Display real-time activity to stimulate usage • Multiple language support • Roaming control with awareness message

InTouch 5 Rich Address Book integrates messaging and social communities with the mobile handset’s address book. Key features of the service include: • Enriched Address Book with community details (avatar, birthday, status, personal

message, e-mail address and phone number) • Display of social notifications • One-click access to all communities • Automatic matching of phone contacts with community contacts

Key Clients Key clients of the company include:

1. 3 2. Vodafone 3. FarEas Tone 4. SingTel 5. Bakrie Telecom 6. DiGi 7. Cellcom 8. Cosmote 9. Wind 10. BASE 11. KPN 12. O2 13. Virgin Mobile 14. SFR 15. Orange 16. BouyguesTelecom 17. Metro PCS 18. MobiVox

Miyowa’s contact details are provided below:

Contact Details

Headquarters BP 20008 10, place de la Joliette 13566 Marseille cedex 2, France

Phone Tel: +33 (0) 153 366 296 Fax: +33 (0) 491 918 766

Website www.miyowa.com

http://www.miyowa.com/�



Mobixell

Introduction

Mobixell delivers rich media mobile Internet solutions including mobile broadband, mobile video, mobile advertising, mobile messaging and Web 2.0. Founded in 2000, Mobixell is headquartered in San Jose, California with offices in North America, Europe, Asia Pacific and Israel. The company is involved in over 350 installations for MNOs worldwide. Key investors include: • Intel Capital • APAX Partners • Siemens • Comverse • Optibase

Key technology partners include:

• InfoGin, Sandvine • Allot • ComTouch • F5 • Kaspersky


The following table highlights the services offered by Mobixell:

Key products

Some of the key solutions offered by the company include:

1. Mobile Internet 2. Central Media Adaptation 3. Content Production 4. Ad-It

Central Media Adaptation enables operators to consolidate their offline and online media adaptation, device multimedia profile database, content security, business intelligence, DRM support, and content production tools into one centralised solution servicing multiple environments and applications. These applications include P2P MMS, content download, A2P

MMS, portal, e-mail.

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Ad-It is a multi-channel media rich advertisement solution specialising in delivering optimised, high quality, multimedia ads over a variety of delivery channels including mobile, web and IPTV. The solution addresses the needs of players in the Mobile Advertising value chain including brands, advertising agencies, content providers, ad networks, network operators, publishers and consumers. The main functional modules include: • Trade-It • Serve-It • Market-It

Key Clients The following are some of the key clients of Mobixell:

1. Swisscom 2. Vodafone 3. M1 Singapore 4. Turkcell 5. Beeline 6. SingTel 7. O2 8. AIS Thailand 9. Wind 10. Cellcom 11. Orange 12. Optimus 13. Telefonica 14. Proximus 15. Verizon Wireless 16. Cellular South 17. China Mobile 18. KPN 19. Bharti 20. T-Mobile 21. TELUS Mobility 22. PCCW 23. Sprint Nextel 24. US Cellular

Mobixell’s contact details are given below:

Contact Details

Headquarters 1735, Technology Drive San Jose, California 95110

Phone Tel: +1 650 353 3032 Fax: +1 408 973 9657

Website www.mobixell.com

http://www.mobixell.com/�



Momail Systems

Introduction

Momail Systems is a leading provider of mobile e-mail services worldwide. The company was founded in 2005, is based in Stockholm, Sweden, and has satellites in the UK, Germany, Spain, Taiwan and China. Momail launched the first beta version of its e-mail solutions in 2006; its software supports eight languages. Key investors in Momail Systems include: • Swedish 6th Pension Fund • Bonnier Invest


The following table highlights the services offered by Momail Systems:

Key products

The salient features of the company’s e-mail solution are the following: • Server Side Clientless Solution — Momail is a complete server side e-mail solution

which can be installed without using any special client software • Auto Provisioning and Auto Configuration — Momail requires minimal user input

during registration of the service and speeds up the process of installation by automatically configuring settings for both data traffic and e-mail

• Auto Collect and Super Inbox — Momail allows users to use and control several e-mail accounts easily and direct all incoming mails to one Momail Super Inbox

• Mobile E-mail Optimisation — Momail optimises and compresses the data in accordance with the capabilities of users’ handsets

• PUSH Mail Support — By activating the PUSH feature, e-mail notification works similar to SMS, where a user gets an alert when the message reaches the handset

• Attachment Support — Momail can support different types of attachments, including pictures Word, PowerPoint and PDF documents

• Magic Restore — In the Momail Inbox, pictures and documents are saved in their original format, hence when forwarding these to mobile handsets from Momail, these are automatically optimised as per the capabilities of receiving handsets

• Virus and Spam Protection — Momail is integrated with IronPort virus and spam control which reduces the risk of viruses and spam transfer

• Web Mail — The web interface of Momail has several smart features that simplify mobile e-mail use and configure personal settings

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients The company does not disclose this information. Momail Systems’ contact details are shown below:

Contact Details

Headquarters Grev Turegatan 11B 114 46 Stockholm, Sweden

Phone Tel: +46 8 551 161 80 Fax: NA

Website www.momailsystems.com

http://www.momailsystems.com/�



Netxcell

Introduction

Netxcell is a leading mobile application service provider in India that offers advanced mobile applications and enterprise solutions. The company came into existence in 2000 and is promoted by Prathima Group of Industries. It has partnered with leading Indian MNOs to develop and offer cutting-edge technology solutions. It also plays the role of content aggregator for several major MNOs and develops web-to-wireless technology that enhances the capabilities of mobile handsets. The table below shows the regions of operation of the company:

The following table highlights the services offered by Netxcell:

Key products

Some of the key products developed by the company include: 1. Bulk SMS Gateway 2. SMS Gateway 3. USSD Menu Application 4. Missed Call Alerts 5. Phonebook Backup

Bulk SMS Gateway is an enterprise solution which can be deployed on both GSM and CDMA networks. It offers the following benefits to operators: • Web based bulk SMS push platform • Multiple Connectivity options

Some salient features that would interest clients include: • Multiple Connectivity options over HTTP, SMPP, SMTP, CIMD • Supports Unicode and Flash SMS • Real Time Delivery Reports • 24/7 Support from Managed Services Team • Potential Applications

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



USSD Menu Gateway is a session oriented application which has store-and-forward functionality. The service comes with immediate warranty delivery, easier to use, multi-language capability and works while roaming. USSD, coupled with SMS or as a standalone, can become an ideal channel for services such as mobile commerce, dating, mobile information, entertainment or any service that needs interaction between application and user. Key Clients The company does not disclose this information.

Netxcell’s contact details are given below:

Contact Details

Headquarters Plot #6, 1st & 2nd floor, APIIC Software Units Layout , SEEC Towers, HITEC City, Madhapur, Hyderabad, India

Phone Tel: +91 40 44617200 Fax: +91 40 44617210

Website www.netxcell.com

http://www.netxcell.com/�



Neustar

Introduction

Neustar primarily provides clearinghouse services in the North American region. It maintains a directory of telephone numbers and codes which enables routing of calls between the telecom networks in Canada and the United States. Apart from telephone network operators, Neustar offers its services to ISPs, cable TV operators and VoIP service providers. The table below shows the regions of operation of the company:

The following table highlights the services offered by Neustar:

Key products

Addressing services empower operators to use critical and shared addressing resources. Services offered under this category include: • Number Administration — includes NANP Administration and Number Pooling • Domain Name Services — includes .BIZ Domain, .US Domain etc. • UltraDNS Services — includes Load Testing, Managed External and Internal DNS • Other Services — includes Common Short Codes, Wireless Do Not Call and ENUM

Interoperability services enable operators to exchange and share critical operating data. Services offered in this category include: • Order Management — includes Access Service Request, Customer Account Record

Exchange, Enhanced 911, Enhanced Service Request etc. • IP Exchange Services — includes SIP-IX, Wireless Message Routing Service,

Industry Alliance Program and Pathfinder • Other Services — includes Local Number Portability, Wireless Number Portability

and Interconnection

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients Some of the key clients of the company include:

1. Vodafone 2. Globe Telecom 3. Turkcell 4. Optimus 5. Hutchison Telecom 6. SFR 7. VimpelCom

Neustar’s contact details are given below:

Contact Details

Headquarters 46000 Center Oak Plaza Sterling, VA 20166, USA

Phone Tel: + 1 571 434 5400 Fax: NA

Website www.neustar.biz

http://www.neustar.biz/�



NewBay

Introduction

NewBay is a global developer of digital lifestyle solutions for service providers. Its solutions enable subscribers to generate and manage their own content. Operators seek its services to strengthen their messaging and data segment and increase customer loyalty. Its solutions also enable operators to increase data traffic and hence improve their ARPU. It has industry affiliations with the following: • BlackBerry Independent Software Vendors (ISV) Alliance Programme • GSMA • World Wide Web Consortium (W3C)


The following table highlights the services offered by NewBay:

Key products

Some of the key products offered by NewBay include:

1. NewBay LifeCache 2. Photo & Video Album 3. Digital Vault 4. Message Minder 5. Social Networking Gateway 6. Smart Address Book 7. Organiser 8. Notifier

Message Minder offers users a personalised space to manage and organise their picture and text messages, voicemail, e-mail, IM conversations and social network interactions. The key features of the service include: • Automatic Network Copy • Optimised Storage & Message Management • Supports Multi-Screen Messaging • Easy to use Search, Sort & Retrieval • Push Notifications to any device • API Server

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



The key benefits offered by the service to operators include: • Increases loyalty of subscribers • Generates more revenue opportunities • Drives increased traffic • Offers advertising, brand-marketing, cross-selling and up-selling opportunities

Photo & Video Album enables users to create and manage their online albums containing user generated photos and videos directly from their handset or Web browser. Key features of the service include: • Upload photos and videos from mobile and Web • Publish media to personalised albums • Stay up-to-date with guest activity • Easy organisation and location of content

The key benefits offered by the service include: • Increase messaging traffic and data usage • Build brand loyalty and reduce subscriber churn • Virally attract new subscribers • Provides a full featured API


1. AT&T 2. T-Mobile 3. Telefonica O2 4. Alltel Wireless 5. Vodafone 6. Orange 7. France Telecom 8. US Cellular 9. Swisscom 10. SETAR 11. Maxis

NewBay’s contact details are provided below:

Contact Details

Headquarters The Academy 42 Pearse Street Dublin 2, Ireland

Phone Tel: +353 1 635 0700 Fax: +353 1 635 0799

Website www.newbay.com

http://www.newbay.com/�



Nimbuzz

Introduction

Founded in 2006, Nimbuzz is a free call and messaging application that combines the power of Internet and mobile communications to allow users to connect with family and friends from any mobile device. Nimbuzz is available on all major platforms including Symbian, Apple’s iOS, Android, BlackBerry OS and J2ME. Social networks and communities supported by Nimbuzz include Facebook, Windows Live Messenger, Google Talk, Twitter, Yahoo, AIM, MySpace etc. Key investors of Nimbuzz include: • Naspers • Mangrove Capital Partners


The following table highlights the services offered by Nimbuzz:

Key products

Nimbuzz’s application is currently available on mobile, PC/MAC and Web. Key features of Nimbuzz Mobile include: • Online availability on-the-go • Chatting with friends • Online buddy call • Text messages • Sharing photos, videos and files


Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Nimbuzz’s contact details are given below:

Contact Details

Headquarters 301, Rivium Boulevard Capelle a/d Ijssel 2909 LK The Netherlands

Phone Tel: NA Fax: NA

Website www.nimbuzz.com




Nokia

Introduction

Nokia is the world leader in the wireless handset market. Its handsets are available in almost every wireless market worldwide and its handset portfolio includes inexpensive low-value phones to the most advanced smartphones. In November 2008, it acquired OZ Communications in an acquisition intended to offer affordable mass market e-mail and IM platforms for Nokia Series 40 devices. Nokia has launched its own mobile apps store, ‘Ovi’, from where users can download applications including mail, music, games etc. The table below shows the regions of operation of the company:

The following table highlights the services offered by Nokia:

Key products

Some of the key messaging solutions offered by Nokia include: 1. Ovi Mail 2. Ovi Contacts

Ovi Mail allows users to exchange e-mail from their mobile handsets and PC. The service does not require any software download, as users can simply go to the Ovi website and sign up for an e-mail account. The e-mail service comes with anti-spam protection and virus protection that makes it more reliable and safe. It is available in two versions: • High Bandwidth— this version offers advanced features such as drag and drop, and

text formatting • Low Bandwidth— this version is developed for slower Internet networks

Ovi Contacts is an upgraded version of Nokia’s IM service, Nokia Chat. It allows users to share their status and location, and also allows users to record and exchange voice messages. In order to use the service, users have to register with Ovi and create a Nokia account. Key features of the service are: • Presence— allows users to share their status—whether they are available or busy—

and check others’ availability • Enhanced Presence— allows users to share information, such as their favourite

places and what they are listening to with their contacts • Chat— allows users to chat with their contacts, use emotions in messages, and share

their locations on Nokia maps

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients Nokia’s handsets are used by subscribers of almost every MNO worldwide. Nokia’s contact details are shown below:

Contact Details

Headquarters Keilalahdentie 2-4 P.O. Box 226 FIN-00045 Nokia Group, Finland

Phone Tel: +358 7180 08000 Fax: +358 7180 34003

Website www.nokia.com

http://www.nokia.com/�



Openmind Networks

Introduction

Openmind Networks is based in Ireland and develops MMS and SMS router solutions for MNOs and wholesale operators worldwide. Openmind has a team of messaging experts which conduct continuous research to deliver innovative products to its clients. It offers advanced inter-carrier messaging solutions and helps operators migrate smoothly to IM and SIP-based messaging. The table below shows the regions of operation of the company:

The following table highlights the services offered by Openmind Networks:

Key products

Key solutions offered by the company are: 1. SMS Hub 2. MMS Hub 3. Protect 4. Assure

SMS Hub is an advanced feature-rich wholesale SMS messaging exchange, which can be upgraded with Openmind’s business intelligence and security solutions. Key benefits of the products include: • Maximise interconnect revenues • Comply with GSMA Open Connectivity standards • Support multiple routing and delivery options • Add value with business intelligence and security

Protect allows operators to filter out fraudulent messaging traffic traversing wholesale messaging exchange hubs. Key benefits associated with the solution include: • Drive new revenue for interconnect carriers • Block SPAM and all fraudulent traffic • Block all GSMA identified messaging security threats • Protect operator clients against undesirable traffic • Create new services quickly with a highly configurable rules engine • Manage security rules centrally

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM




1. CITIC Telecom 1616 Hong Kong 2. Syniverse 3. Vodafone Cairo 4. Vodafone Accra 5. Vodafone Germany 6. Telenor Norway 7. Telekom Austria 8. Mobilkom Austria 9. Belgacom Belgium 10. Si.Mobil Slovenia 11. Tus Telekom Slovenia 12. Sparkle Italy 13. Velcom Belarus 14. VIP Mobile Serbia 15. Mtel Bulgaria 16. Moldcell Moldovia 17. Global Message Services Ukraine 18. Mobily Saudi Arabia 19. Batelco Bahrain 20. Etisalat UAE

Openmind Networks’ contact details are given below:

Contact Details

Headquarters 4 Westland Square, Pearse Street, Dublin 2, Ireland

Phone Tel: +353 1 633 0070 Fax: +353 1 670 8008

Website www.openmindnetworks.com

http://www.openmindnetworks.com/�



Openwave

Introduction

Openwave is a prominent developer of advanced data services and software applications for operators worldwide. The company’s solutions enable operators to add value to their services by reducing cost and time to market. The company has over 550 employees and provides solutions to more than 100 MNOs. More than 150 million users avail Openwave messaging products daily and over 3 billion mobile data transactions are delivered daily using its solutions.73

The following table highlights the services offered by Openwave:


Key products

The key services offered by Openwave include: 1. Traffic Mediation Solutions 2. Data Mediation and Analytics 3. Messaging 4. Location

Data Mediation and Analytics assists operators and carriers to extract and process the consumer information including location, device awareness, demographic and behavioral data so that the insights provide value to: • Application and content developers • Advertisers • Internet partners

Messaging solutions use IP-based, bandwidth-optimised technologies to simplify different modes of messaging across an operators’ network. Low-cost, “infinite” content storage ensures that providers can manage the growing amount of content being shared, while a personalised communications dashboard simplifies the very act of communicating – supporting e-mail, voice, chat, posts and even tweets.

73 Source: http://www.openwave.com/about_us/customers.html

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.openwave.com/about_us/customers.html�




1. Bell Aliant 2. Bell Canada 3. Charter 4. Comcast 5. Cox Communications 6. KDDI 7. Orange 8. SoftBank Mobile 9. Sprint Nextel 10. Taiwan Mobile 11. TDC 12. Telecom Italia 13. Telefónica Moviles 14. Telstra 15. TELUS Mobility 16. T-Mobile 17. Time Warner Cable 18. UPC 19. Verizon Wireless 20. Virgin Mobile 21. VIVO 22. Vodacom 23. Vodafone

Openwave’s contact details are provided below:

Contact Details

Headquarters 2100 Seaport Boulevard Redwood City, CA 94063, USA

Phone Tel: + 1 650 480 8000 Fax: +1 650 480 8100

Website www.openwave.com

http://www.openwave.com/�



RIM

Introduction

RIM is a prominent manufacturer and designer of wireless solutions for leading mobile operators worldwide. The company came into existence in 1984. RIM’s renowned BlackBerry solution is the pioneer of enterprise mobile e-mail and really set the pace for the service in the wireless market. At end-August 2010, the worldwide BlackBerry subscriber base was nearly 50 million. The table below shows the regions of operation of the company:

The following table highlights the services offered by RIM:

Key products

Some of the key products developed by the company include: 1. BlackBerry Smartphones 2. BlackBerry Device Software 3. BlackBerry Enterprise Server 4. BlackBerry Mobile Data System

BlackBerry Device Software offers intuitive icons and layout and several advanced features to users. Key features of the software include: • Better User Interface • Improved E-mail Layout • Download of Attachments and Files • Mobile Streaming • Improved Music Management • Video Recording • Musical Multi-tasking • Bluetooth Compatibility

BlackBerry Mobile Data System is an application development framework that minimises the resources and time required for the development of wireless applications for mobile workers. The key features of the product include: • Multiple development options and developer tools • Centralised deployment and management of applications • Protection of IT investments • Optimised wireless data transmissions

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients RIM’s handsets are used by subscribers of almost every MNO worldwide. RIM’s contact details are shown below:

Contact Details

Headquarters 295 Phillip Street Waterloo, Ontario Canada N2L 3W8

Phone Tel: +(519) 888 7465 Fax: +(519) 888 7884

Website www.rim.com

http://www.rim.com/�



SEVEN

Introduction

SEVEN is a leading provider of consumer and enterprise mobile e-mail, and messaging solutions. It is headquartered in Redwood City, California, with offices worldwide. The company has established industry partnerships with the following: • Mobile Platform Providers — Android, Bada, BREW, J2ME, Symbian and Windows

Mobile • Device Manufacturers — LG, Nokia, Sanyo, HTC, Sony Ericsson, Samsung and

Huawei • E-mail and Messaging Solutions Providers — Google, Windows Live, Microsoft

(Exchange and Hotmail), Yahoo and AOL • Infrastructure Partners — Oracle and Savvis


The following table highlights the services offered by SEVEN:

Key products

SEVEN offers its solutions to the following categories: 1. Wireless Operators 2. Device Manufacturers

Wireless Operators are able to achieve the following goals by using SEVEN Mobile E-mail and Integrated Messaging Platforms: • Simplified and cost-effective delivery of mobile services • Near 100 percent adoption of mobile e-mail and messaging • Better quality services • Increased customer loyalty

Device Manufacturers deploy SEVEN Mobile E-mail and Integrated Messaging Platforms to capitalise on new opportunities available in the mobile messaging world. Key benefits offered by the service include: • Accelerated time to market • More competitive devices • Ability to showcase devices’ unique features • Investment protection

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients SEVEN’s key clients include:

1. AT&T 2. Sprint Nextel 3. NTT DOCOMO 4. KDDI 5. Beeline 6. Orange 7. Samsung 8. 3 9. TeliaSonera 10. Boost Mobile 11. Metro PCS

SEVEN’s contact details are given below:

Contact Details

Headquarters 2100 Seaport Boulevard, Suite 100 Redwood City, CA 94063, USA

Phone Tel: +1 650 381 2500 Fax: NA

Website www.seven.com

http://www.seven.com/�



Sicap

Introduction

Switzerland’s Sicap is a leading developer of mobile software solutions for communications and charging, that was established in 1994. Its solutions are deployed in different fields including convergent charging and rating, mobile payments, network services and messaging. These solutions have been deployed by over 100 operators in 65 countries. The table below shows the regions of operation of the company:

The following table highlights the services offered by Sicap:

Key products

Products developed by Sicap include: 1. Device management centre 2. SIM OTA 3. Multimedia messaging gateway 4. USSD gateway 5. Charging and rating solutions

SIM OTA enables MNOs to remotely manage the SIM card population, regardless of the SIM type or location. The solution is used to market SIM-based services, optimise roaming and enable secure applet management for the latest mobile transaction applications, including NFC enablers. Key benefits include: • Greater customer satisfaction and retention • Cost-effective, flexible management of Value added services • Optimised roaming

Multimedia messaging gateway is a carrier-grade platform which can manage all application to person messaging traffic. Its key features include: • Real-time charging of delivered services • Routing configuration wizard • Number portability • Aliasing - dynamic and static • Real-time message delivery • External multimedia campaign management

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



The key technical benefits of the product include: • Full Java components for maximum portability • J2EE compliant architecture for maximum reliability • Real time message monitoring and logs • External VAS billing and rating engine

Key Clients

The following are some of the key clients of Sicap: 1. Telefonica O2 2. Swisscom 3. Magticom 4. MOTHB 5. Beeline 6. Orange 7. Bouygues Telecom 8. Plus 9. T-Mobile 10. MTC 11. Vini 12. Globe Telecom 13. SoftBank Mobile 14. Maxis 15. STC 16. OPT 17. Meditel 18. Zain 19. MTN 20. Togocel

Sicap’s contact details are provided below:

Contact Details

Headquarters Saegestrasse 65 3098 Koeniz/Bern, Switzerland

Phone Tel: +41 31 978 90 90 Fax: +41 31 978 90 99

Website www.sicap.com

http://www.sicap.com/�



Silverstreet

Introduction

Silverstreet is a specialist in Mobile Messaging (SMS) offering global MT termination options (covering more than 700 networks). They are specialized in mission critical traffic, and high volumes (wholesale) clients. Silverstreet is a full MEF member (Mobile Entertainment Forum) and has teams spanning 10 countries and 3 continents servicing clients in over 100 countries around the world ranging from the A2P aggregator sector, banking, government and corporate entities. To properly service this client base the company further maintains a 24/7/365 Support Team via IM, Phone and Email. Silverstreet is a privately funded company independent of outside investment and financing its own expansion. The table below shows the regions of operation of the company:

The following table highlights the services offered by Silverstreet:

Key products

Products developed by Silverstreet include: 1. International MT messaging 2. SS7 grade HLR lookups 3. SMS Spam Control for Operators 4. Domestic longcode services with MO kickbacks 5. Highend SMSC placement

International MT Messaging Silverstreet is able to support over 700 GSM and CDMA networks around the world through the use of its own SMSC hardware hosted within operator networks as well as based on partner routing connectivity. To serve the messaging needs the company is able to make SMPP, HTTP and webtool based sending options available to its clients with both a 24/7 sales and support team providing the necessary assistance to facilitate ease of use for its client base.

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Some of the key features include: • Full GSM Feature support • 24/7/365 operation for tech and sales team • Extensive reporting statistics available • Flexible payment terms • Global reach

HLR Lookups Through the relationships that Silverstreet has established with a variety of different global mobile operators, the company is in a position to offer a highly reliable SS7 quality HLR service based entirely on its own SMSC hardware with absolutely no 3rd parties involved in the solution. Based on the solid infrastructure in place and a simple API or webtool approach, the client is able to generate information such as MSISDN, IMSI, MCC, MNC, Operator, Country, Prefix, Location and Type for both A2P and P2P purposes. Key features include: • Extensive global coverage • Simultaneous queries at one time • Low Pricing • Easy to use API and web functions

Key Client Sectors

The following are some of the key clients of Silverstreet:

1. Government institutions in Netherlands and APAC

2. SMS aggregators

3. Financial institutions / banks

4. High end retailers

5. Media Silverstreet’s contact details are provided below:

Contact Details

Headquarters Europe HQ Karolusstraat 20a 4903 RJ Oosterhout The Netherlands Asia HQ Unit 809, 8th Floor, Wisma Lim Foo Yong 86 Jalan Raja Chulan 50200 Kuala Lumpur Malaysia

Phone Tel: +31 13 469 08 86 Fax: +31 13 469 08 87 Tel: +60 32 144 3340 Fax: +60 32 178 4434

Website www.silverstreet.com

http://www.silverstreet.com/�



Soprano

Introduction

Soprano is a leading developer of mobile messaging software solutions. The company also develops advanced applications such as sending SMS & MMS messages from a browser, messaging applications for direct marketing, and tools for distributing and confirming staff rosters via SMS. It has customers in more than 50 countries worldwide and its clientele includes MNOs, Mobile Service Providers, Government Agencies, Financial Institutions and major Health, Education, Transport, Hospitality, Services and Retail organisations. Soprano’s key partners include: • Acision • IBM • Telstra • TynTec • eServGlobal • Retriever Communications


The following table highlights the services offered by Soprano:

Key products

Some of the known products developed by Soprano are given below:

1. SOPRANO Campaign Manager 2. SOPRANO Inbound 3. SOPRANO Staff Match 4. SOPRANO Mobile Authenticator

SOPRANO Campaign Manager enables operators to offer ads with SMS, MMS and e-mail. It also allows operators to manage responses for SMS voting, polls, surveys and competitions in a more efficient manner. The company offers different deployment models for the solution including: • Managed Service - Software as a Service • Software Only • Messaging Appliance • Scalable, High Availability Multi-node System

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



SOPRANO Inbound is an inbound messaging solution which can be used for several purposes including: • Automate and streamline business communications processes • Receive real-time sales and information enquiries • Receive customer requests and feedback • Receive mobile staff and situational updates

Key Clients


Soprano’s contact details are shown below:

Contact Details

Headquarters Level 11, 132 Arthur St, North Sydney, NSW 2060, Australia

Phone Tel: +61 2 9900 2200 Fax: +61 2 9929 6956

Website www.soprano.com.au

http://www.soprano.com.au/�



Sybase 365

Introduction

Sybase 365 is a leading provider of mobile messaging services worldwide. Through 900 operators worldwide it caters to 4.5 billion mobile subscribers, and its solutions deliver 1.5 billion messages per day74

The following table highlights the services offered by Sybase 365:

. The company also offers mobile payments, mobile banking and mobile remittances services. It additionally provides effective mobile marketing and mobile advertising solutions to several enterprises worldwide. The table below shows the regions of operation of the company:

Key products

Key products developed by the company include: 1. GRX 365 2. SMS 365 3. MMX 365

GRX 365 has been deployed by “70 direct operators” and Sybase is the largest GRX provider worldwide on the basis of mobile subscribers served. Key benefits associated with the product include: • Increased ARPU for mobile operators • Network Performance and Security • Global Reach • Community Value • Flexible Connectivity Options • Customer Support and Service

SMS 365 provides unparalleled reach and reliability for global inter-carrier SMS interoperability with the help of the following: • One connection, multiple nodes • Unlimited queuing • Advanced routing capabilities • Strong, secure messaging • Integrated traffic reporting

74 Source: http://www.sybase.com/mobileservices

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.sybase.com/mobileservices�



Key Clients Key clients of Sybase 365 include:

1. Telekom Austria 2. Taiwan Mobile 3. AltLogic 4. Orange 5. France Telecom 6. Spice Communications 7. Turkcell 8. T-Mobile 9. Bell Canada 10. Guangdong Telecom 11. Cellcom 12. Sichuan Mobile 13. Globe Telecom 14. Telfort 15. Telstra 16. China Telecom

Sybase 365’s contact details are given below:

Contact Details

Headquarters One Sybase Drive Dublin, CA 94568, USA

Phone Tel: +1 925 236 5000 Fax: NA

Website www.sybase.com

http://www.sybase.com/�



Symsoft

Introduction

Founded in 1989, Symsoft provides solutions for charging, messaging and other value added services for existing and next generation networks. The company provides turnkey solutions including project management, hardware and software installation, testing and verification to ensure a smooth service launch. Headquartered in Sweden, Symsoft has operations in more than 30 countries serving over 120 million subscribers75

The following table highlights the services offered by Symsoft:

. The table below shows the regions of operation of the company:

Key products

Key products developed by the company include: 1. Nobill Messaging 2. Nobill SMSC 3. Nobill A2P Messaging 4. Nobill SMS Router 5. Nobill SMS Firewall

Nobill SMSC has been deployed to addresses the A2P and M2M customer requirements that were not met by the legacy SMSCs. Key features of the solution include: • Personalisation services for subscribers • Virtual SMSCs on a single host for multi-network and multi-operator integration • Real-time charging support • Virtual mobile functionality allows off-network access to applications

Key benefits of the solution include: • Application-level customisable delivery settings provide an added value to A2P and

M2M customers • Advanced routing and personalisation features for subscribers differentiate the service

from the competition • A single solution to manage both regular subscribers and A2P/M2M customers

decreases costs • Support for integration with several networks enables SMSC centralisation

75 Source: http://www.symsoft.com/about-symsoft/company-overview/1298792-company-overview

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.symsoft.com/about-symsoft/company-overview/1298792-company-overview�



Nobill SMS Router is a versatile toolbox for message routing that decreases licence costs, simplifies messaging infrastructure and increases the utilisation of existing messaging solutions. Key features of the solution include: • Offloads A2P and M2M traffic from SMSC to specialised solutions • Intelligent routing of text messages to distribute load optimally • Integration with multiple geographical networks • Support for major online charging to secure messaging revenue in real-time

Key Clients Key clients of Symsoft include:

1. TIGO 2. America Movil 3. Vodafone 4. Telenor 5. TeliaSonera 6. Plus 7. 3 8. Tele2 9. Belgacom 10. Telefonica 11. Zain

Symsoft’s contact details are given below:

Contact Details

Headquarters Kista Science Tower, PO Box 1219, SE-164 28 Kista, Sweden

Phone Tel: +46 8 566 166 00 Fax: +46 8 566 166 01

Website www.symsoft.com

http://www.symsoft.com/�



Synchronica

Introduction

Synchronica is a prominent developer of mobile push e-mail and synchronisation solutions. It is headquartered in the UK, has a development centre in Germany, and is a public company listed on AIM (part of the London Stock Exchange). Its flag-ship product, Mobile Gateway, provides multi-protocol support for e-mail-to-SMS, e-mail-to-MMS, e-mail-to-WAP Push. Synchronica’s total number of operator customers increased to 60 at end-September 2010, with a total addressable market reaching almost one billion subscribers. Synchronica‘s key partners include: • Brightstar Corporation • Microsoft • Nokia Siemens Networks • Sun Microsystems


The following table highlights the services offered by Synchronica:

Key products

Some of the key products developed by Synchronica are given below: 1. Mobile Gateway 2. Mobile Backup

Mobile Gateway offers push e-mail and synchronisation solutions to non-business and business users. It is compatible with a wide range of mobile handsets and can be deployed without installing any additional software. It offers features such as e-mail to SMS, and synchronisation of calendar, contacts, notes and tasks. It is offered to the following categories: • Service providers • Device manufacturers

Mobile Backup provides security against loss of data stored on mobile handsets. Users can subscribe to the service through the Internet, a WAP interface, or by sending an SMS. It is offered to the following categories: • Service providers • Device manufacturers

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

The following are some of the key clients of Synchronica:

1. MegaFon 2. life:) 3. MTS 4. TeliaSonera 5. OmniTel 6. NetCom 7. MoviStar 8. Entel PCS 9. Comcel 10. Claro 11. Grupo ICE 12. Telecom Personal 13. SETAR 14. Smart Communications 15. Sudani One 16. MTN Group 17. Zain 18. Aljeel Aljadeed for Technology 19. Swisscom 20. T-Mobile 21. Sunrise 22. KPN 23. E-Plus

Synchronica’s contact details are provided below:

Contact Details

Headquarters Mount Pleasant House Lonsdale Gardens Royal Tunbridge Wells TN1 1NY, United Kingdom

Phone Tel.: +44 1892 5527 20 Fax: +44 1892 5527 21

Website www.synchronica.com

http://www.synchronica.com/�



Syniverse

Introduction

Syniverse is a Florida-based company with operations in over 160 countries worldwide76

The following table highlights the services offered by Syniverse:

. Syniverse assists telecom operators tackle complex interoperability challenges and meet their clearinghouse demands. In October 2009, it strengthened its product portfolio by acquiring VeriSign’s messaging business. The table below shows the regions of operation of the company:

Key products

Key solutions offered by the company are: 1. IM Services 2. SMS Interoperability 3. MMS Interoperability 4. Value-Added Messaging Services 5. A2P/Enterprise Services

SMS Interoperability allows operators to implement global exchanges of SMS through routing, translations and management across technologies. Key solutions offered under this category include: • IP Messaging Centre • Metcalf Intercarrier SMS • SMS Interworking Gateway Service for IP (SMS-IP) • SMS Open Connectivity (SMS-OC) Hub

MMS Interoperability is implemented through the company’s MMS Interworking Gateway. Key features of the service include: • Handle the message to ensure MM4 interoperability • Comply with 3GPP and 3GPP2 standards • Support audio and video cross-technology transcoding • Offer operator-grade reliability and redundancy • Provide automatic North America LNP lookup before routing the message • Provide strong network security as well as full spam and virus protection

76 Source: http://www.syniverse.com/files/Syniverse_Fact_Sheet_08302010.pdf

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.syniverse.com/files/Syniverse_Fact_Sheet_08302010.pdf�




Syniverse’s contact details are shown below:

Contact Details

Headquarters 8125 Highwoods Palm Way, Tampa, FL, USA 33647-1776

Phone Tel: +1 (813) 637 5000 Fax: NA

Website www.syniverse.com

http://www.syniverse.com/�



Tango Telecom

Introduction

Established in 1999, Tango Telecom is a leading provider of advanced messaging, real time charging and policy control solutions. Tango’s expertise lies in developing and deploying messaging and charging solutions across networks including GSM, CDMA and WiMAX. Headquartered in Ireland, Tango has regional offices in Dubai, Kuala Lumpur and Mexico City. Key investors include: • Delta Partners • COMPTEL


The following table highlights the services offered by Tango Telecom:

Key products

The key products developed by Tango Telecom are given below:

1. Message Delivery and Charging 2. Advanced Messaging Suite 3. Security and Anti-Spam for SMS 4. Real time data charging and Policy control 5. USSD Gateway

Advanced Messaging Suite offers value added services including: • SMS Forward, Copy and Auto Reply • SMS Advertising • Messaging Application Gateway • SMS Broadcast • Home Routing Gateway (HRG) • Monitoring and Reporting System (MRS)

USSD Gateway provides services for account enquiries, self-care, mobile commerce, infotainment and other value added services. Some of the benefits of the solution include: • Deploy and Market VAS (value-added services) quickly and cost effectively • Improved customer satisfaction • Shorter time-to-market • Increase in ARPU

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Key Clients

Key clients of Tango Telecom include: 1. Outremer Telecom 2. O2 3. Vodafone 4. Turkcell 5. Zain 6. Star One 7. Bakrie Telecom 8. Indosat 9. Qtel 10. PCS 11. Claro

Tango Telecom’s contact details are shown below:

Contact Details

Headquarters Walton House, Lonsdale Road, National Technology Park Limerick, Ireland

Phone Tel: +353 61 50 1900 Fax: +353 61 50 1901

Website www.tango.ie

http://www.tango.ie/�



Tekelec

Introduction

Tekelec is a prominent player in core multimedia session control and network intelligence. Currently, it has over 30 offices worldwide and offers its solutions to customers in more than 100 countries. The company’s portfolio delivers a unique layer of intelligence allowing service providers to manage and monetise the impressive growth in data traffic and applications. In May 2010, Tekelec strengthened its product portfolio by acquiring Blueslice Networks and Camiant. The table below shows the regions of operation of the company:

The following table highlights the services offered by Tekelec:

Key products

Some of the key products developed by Tekelec are given below: 1. EAGLE 5 Product Family 2. EAGLE XG Product Family 3. Advertising Insertion Centre

EAGLE 5 Product Family is developed on a leading signaling platform and enables operators to migrate to next-generation IP networks. Key functionalities of the solution include: • Signal Transfer Point • Signaling Gateway • Intelligent Routing • Screening Services • Number Portability • Service Management

The solution empowers operators to optimise their network resources, control fraud and better manage their subscribers. Benefits associated with the service include: • Single platform • Scalability • Reliability • Flexibility • Network security • Investment protection

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Advertising Insertion Centre allows the insertion of text at a desired position in the terminating path of SMS. The inserted text could include the following: • Commercial text (sponsored SMS) • Enrichment of a voicemail message (for example: season’s greetings)

The benefits associated with the service include: • Expansion of market opportunity • More revenue streams from their existing SMS network

Key Clients

Key clients of Tekelec include: 1. Verizon Wireless 2. Metro PCS

Tekelec’s contact details are given below:

Contact Details

Headquarters 5200 Paramount Parkway Morrisville, NC 27560, USA

Phone Tel: +1 888 628 5521 Fax: +1 919 460 0877

Website www.tekelec.com

http://www.tekelec.com/�



TeleCommunication Systems

Introduction

Telecommunications Systems was founded in 1987 and is the largest text messaging services provider in the US. It is headquartered in Annapolis, Maryland, and is listed on NASDAQ. The company serves more than 57 customers worldwide with its wireless messaging and location products, and has partnered with Alcatel-Lucent for distribution of its SMSC and WIG platforms. The table below shows the regions of operation of the company:

The following table highlights the services offered by TeleCommunication Systems:

Key products

Products developed by TeleCommunication Systems include: 1. SMSC 2. Message Notification Centre 3. Messaging Portal 4. smsExpress 5. Wireless Intelligent gateway

smsExpress has been developed to assist operators generate premium messaging revenue. It has been designed for the following categories: • Large businesses • Educational institutions • Government agencies • Content providers

The product offers the following benefits: • Secured access through Username, Password and IP address authentication • Replaces pagers while preserving paging investments • Messaging through web interface • Supports large distribution lists

Messaging Portal is used to integrate wireless and wireline location, messaging, and data applications into a single interface. It offers the following benefits to operators: • Enhances stickiness of wireless applications • Enables increased messaging volume and revenue

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



• Interoperability with third-party content and Internet applications • Powerful capabilities: MMS, EMS (Enhanced Messaging Service), anti-spam, and

multilingual support • Proven inter-carrier messaging technology • Supports two-way messaging between Portal and handsets

Key Clients

The following are some of the key clients of TeleCommunication Systems: 1. 3 2. AT&T 3. Belize Telecom 4. Comcast 5. Cricket Communications 6. Cross Country Automotive Service 7. DENSO 8. Iusacell 9. MetroPCS 10. nTelos 11. Sprint Nextel 12. Tata Indicom 13. Telecom New Zealand 14. Telefonica 15. US Cellular 16. Verizon Wireless 17. Vonage

TeleCommunication Systems’ contact details are provided below:

Contact Details

Headquarters 275 West Street Annapolis, MD 21401, USA

Phone Tel: +1 410 263 7616 Fax: +1 410 280 4903

Website www.telecomsys.com

http://www.telecomsys.com/�



TeleDNA

Introduction

TeleDNA is a leading provider of mobile data VAS technology to MNOs. It came into existence in 2001 and is based in India. It develops and markets VAS infrastructure products such as SMSC, MMSC, CBC and SDP; it also develops advanced VAS application platforms. To date, the company has more than 65 installations worldwide77

The following table highlights the services offered by TeleDNA:

. Products are designed to maximise revenue capture for MNOs at a minimum cost. The table below shows the regions of operation of the company:

Key products

Key solutions offered by the company include:

1. SMSC Suite 2. MMSC Suite 3. Cell Broadcast Centre 4. Service Delivery Platform 5. Managed VAS Service

SMSC Suite includes the following products: • SMSC is a carrier grade platform which ensures 99.999 percent availability of the

system and can scale up to 50,000 SMS/sec • A2P SMSC interfaces with mobile network elements including STPs, SSTPs,

GwMSCs on SS7 / SIGTRAN. It is scalable from 1 SMS/sec to 25,000 SMS/sec • SMS Gateway simplifies communication between external SMS-based applications

and SMSC. It offers both PUSH and PULL services to mobile subscribers. • SMS Router is deployed in a network to use multiple SMSCs more efficiently. It

distributes the MO-SMS short message across multiple SMSCs using defined Routing Hierarchy.

77 Source: http://www.teledna.com/contentPage.php?pid=1

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM

http://www.teledna.com/contentPage.php?pid=1�



MMSC Suite includes the following products: • MMSC is a carrier grade platform which ensures 99.999 percent availability of the

system and can scale up to 20,000 MMS/sec • MMS Gateway empowers operators to tackle MMS interoperability issues and

increase their messaging revenue by enabling their users to exchange messages without restrictions

• WAP Gateway integrates easily with GSM, GPRS and CDMA network elements, and assists MNOs in offering mobile data services such as Internet browsing and content downloads

Key Clients The following are some of the key clients of TeleDNA:

1. BSNL 2. Aircel 3. MTNL 4. Uninor 5. Vodafone 6. Idea Cellular 7. Outremer Telecom 8. CT Cube LP 9. Emtel 10. Cellplus 11. Etisalat

TeleDNA’s contact details are shown below:

Contact Details

Headquarters No. 23 & 24, 2nd Floor, AMR Tech Park, Hosur Road, Bangalore - 560 068 Karnataka, India

Phone Tel: +91 80 66661130 - 31 Fax: +91 80 66661132

Website www.teledna.com

http://www.teledna.com/�



Telenity

Introduction

Telenity came into existence in 2000 and is headquartered in Connecticut, USA. It also has offices in Turkey, India and the UAE. Telenity provides next generation value-added-services, messaging and service delivery software solutions. It has industry associations with the following organisations: • The Parlay Group • GSM Association • Java Community Process • Mobile Marketing Association

Its technology partners include: • Dialogic Corporation • ESRI • HP • Oracle • Vantrix


The following table highlights the services offered by Telenity:

Key products

Some of the key products developed by the company include: 1. canvas SMSC 2. canvas MMSC 3. canvas Messaging Gateway 4. SMS Router 5. Interactive USSD 6. canvas Network Gateway

canvas Messaging Gateway offers a single solution for SMSC, MMSC and USSD connectivity. It uses standard network interface protocols and possesses flexible routing and charging capabilities. Key features of the product include: • A2P and P2P Message Routing • Advanced SLA, congestion, and traffic control

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Benefits associated with the product include: • Ease of operations through a single gateway solution • Cost savings through one-time OSS/BSS integration

canvas Network Gateway offers unified access and abstraction to telecom networks. Its key features include: • Call and media server control protocols • Parlay-X Third Party Call, Audio/Video Call • Multimedia Conference interfaces

Product benefits include: • Enables revenue generating voice/video services • Ensures network technology independence at services layer • Cost savings for traditional SS7/IN, and next generation IP networks

Key Clients Key clients of Telenity include:

1. Avea 2. Azercell 3. BH Telecom 4. BSNL 5. Eagle Mobile 6. Geocell 7. Globecomm 8. K’cell 9. KKTCell 10. life:) 11. Magticom 12. Moldcell 13. Nawras Telecom 14. Qualcomm 15. Telefonica Moviles Espana 16. TSTT 17. Turk Telekom 18. Turkcell 19. Zain

Telenity’s contact details are given below:

Contact Details

Headquarters Telenity Incorporated, 755 Main Street, Building 7, Monroe, CT 06468, USA

Phone Tel: +1 203 445 2000 Fax: +1 203 268 1860

Website www.telenity.com

http://www.telenity.com/�



Telsis

Introduction

Telsis is a leading developer of high-performance carrier-grade voice, video and messaging solutions. The company is based in the UK and has offices worldwide. It offers advanced SMS applications and developed the first 4-tier model, which enables operators to undo the damage caused by aggressive price bundling. Its partners include: • Ericsson • BT Wholesale Markets • Quante Netzwerke


The following table highlights the services offered by Telsis:

Key products

The company’s solutions are divided into the following categories: 1. Ocean Services 7000 Series 2. Ocean SMS Routing 6000 Series 3. Ocean Next Generation Multimedia 4000 Series 4. Ocean Voice 2000 Series

SMS Routing offers the following features to operators: • Home Routing allows operators to have full control over both inbound and outbound

SMS • Direct Delivery allows the network to send over 90 percent of messages immediately

to the intended recipient and stores messages only if necessary • Secure SMS protects operators against threats such as spam, fraud and revenue

leakage • Virtual Mobile enables operators to promote mobile national numbers as voice and

text application interfaces • Smart Traffic allows operators to increase efficiency, performance and reliability of

their network

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



Ocean Services 7000 Series (formerly known as Advanced Series) offers the following solutions: • SMS Archive • SMS Out of Office • SMS Whitelisting • SMS Blacklisting • SMS Copy to Phone • SMS Divert to Phone • SMS Block • SMS Copy to E-mail • SMS Divert to E-mail

Key Clients The following are some of the key clients of Telsis:

1. Telefonica 2. T-Mobile 3. Hutchison Telecom 4. Vodafone 5. Warid Telecom 6. BT 7. NTT DOCOMO 8. Etisalat 9. Jersey Telecom 10. KPN 11. Mobinil 12. O2 UK 13. TeliaSonera

Telsis’ contact details are provided below:

Contact Details

Headquarters Barnes Wallis Road, Fareham, Hants PO15 5TT, United Kingdom

Phone Tel: +44 (0) 1489 76 00 00 Fax: +44 (0) 1489 76 00 76

Website www.telsis.com

http://www.telsis.com/�



TynTec

Introduction

TynTec was formed in 2002 and is headquartered in the UK, with offices in Germany and Singapore. It offers advanced SMS solutions to MNOs, enterprises, Internet companies and mobile services providers. With the help of TynTec, customers can now reach a global subscriber base spanning 600 networks across 190 countries. TynTec’s key partners include: • Manx Telecom • Digicel Jamaica • Alands Mobiltelefon Ab • CTM Macau

It has industry associations with the following: • GSMA • International Air Transport Association • RIPE NCC • 160characters Association


The following table highlights the services offered by TynTec:

Key products

The company’s solutions are divided into the following categories: 1. Mobile Outbound SMS 2. Mobile Inbound SMS 3. 2-way Mobile Dialogue SMS 4. Number Lookup 5. International Messaging Transit

Mobile Outbound SMS ensures timely delivery of SMS in a secured manner. Key features associated with this service include: • International SMS connectivity reaching 90 percent of mobile subscribers worldwide • 15 second SMS delivery guarantee • Ability to handle high volume SMS traffic in shorter timeframes • Provide real-time delivery notification

Regions of

Operation

Europe

Asia Pacific

North

America

Latin

America

Africa and

Middle East

Services Offered

SMS

MMS

Mobile E-mail

Mobile IM



• Integrity of security and full control of messages, as all messages travel only via Tyntec’s infrastructure

• Value-added SMS features such as unicode, binary and concatenated messages, flash SMS, WAP-push SMS, over-the-air (OTA) messages

• Optionally with Mobile Number Portability check International Messaging Transit is an SMS Hubbing service for MNOs and MVNOs. Key benefits associated with the service include: • Increase messaging revenues without additional investment • Extend global SMS reach and improve subscribers’ experience • End-to-end SMS routing • One-stop-shop solution without any hassles

Key Clients The following are some of the key clients of TynTec:

1. O2 2. BT 3. Deutsche Telecom 4. Amadeus 5. Nokia 6. Vasco 7. Lufthansa Systems 8. Sybase 365 9. Unity Mobile 10. Netsize 11. mBlox

TynTec’s contact details are shown below:

Contact Details

Headquarters 20 Eastcastle Street London, W1W 8DB, United Kingdom

Phone Tel: +44 207 436 0283 Fax: +44 207 436 6238

Website www.tyntec.com

http://www.tyntec.com/�



Chapter 10 Summary and Conclusions



Summary and Conclusions Messaging is still king. We want to be absolutely clear about this. Messaging still dominates non-voice revenues worldwide. We recently read an industry survey, conducted by a well-known and well respected research company based in Asia, which revealed that among mobile industry executives, opinion (not fact) is that messaging is now contributing significantly less that 50 percent to worldwide mobile data revenues, in 2011. The survey asked respondents how much various services, such as messaging, apps, access, and others, would contribute to mobile data revenues in 2011. Opinion was, to us, most surprising:

Table 27: Opinion on Messaging Contribution to Mobile Data Revenue (In Percent, 2011F)

Region Contribution (In Percent)

North America 15

South America 40

Western Europe 20

India and China 47

Japan and Korea 17

Africa 52

Worldwide Average 32

Source: www.chetansharma.com/MobilePredictions2011 The truth is that messaging in 2011 will still be responsible for more than 60 percent of global data revenues. In reality, SMS and MMS alone will contribute a massive 55.7 percent to global data revenues in 2011. This combined contribution is shown below:

Table 28: Actual SMS and MMS Contribution to Mobile Data Revenue (In Percent, 2011F)

Region Contribution (In Percent)

Europe 51.4

Asia Pacific 63.1

North America 55.9

Latin America 48.6

Africa and Middle East 65.8

Worldwide Average 55.7


http://www.chetansharma.com/MobilePredictions2011.htm�



In North America, SMS and MMS alone will contribute close to 56 percent to mobile data revenues in 2011, and if you add mobile e-mail and IM to the mix too, then messaging will make up more than 60 percent of mobile data revenues in North America in 2011. SMS alone will still contribute 38.9 percent of total data revenues, despite this ill-informed perception among mobile industry executives that total messaging services will only contribute 15 percent to data revenues. It seems clear that industry opinion is being distorted by media attention, which has focused on little more than smartphones, broadband and apps since mid-2007. The respondents in the particular survey that we have referred to above, comprised of 68 percent senior executives/Directors, C-suite or EVP/SVP, and 55 percent of those respondents were from North America. It is of great concern that so many senior decision makers at MNOs, vendors and other companies in the mobile ecosystem think messaging is worth so little to non-voice revenues. We at Portio Research have said for a long time that SMS is the foundation and mainstay of non-voice service revenues, yet as a service it attracts almost no attention in the media and among the operator community, and this has worried us for some time. SMS is rarely the subject of any keynote presentations at leading industry events, and rarely the subject of headline news items, yet SMS has been, still is, and will continue to be for some time, the leading revenue-generating non-voice mobile service anywhere in the world. Worldwide, messaging will continue to contribute more than 50 percent of global non-voice revenues for some years to come. Our forecasts show messaging revenues holding up at around 55 percent or more even in 2015, and that’s in a market where total mobile data revenues are growing fast, yet messaging is still growing too and holding its leading position. SMS alone will continue to contribute 33.5 percent of mobile data revenues worldwide in 2015, to retain its position as the single biggest contributor. In 2015, even in North America, SMS will still generate 30.1 percent of mobile data revenues. It is true that 2010 has been something of a landmark year in some ways, and we have seen significant growth in other mobile data services, beyond messaging. As the world slowly recovers from the recession, 2010 has been a stand-out year in a number of ways. Smartphones continue to sell in unprecedented numbers. App stores proliferate and app downloads are being consumed in vast numbers. Mobile payments and NFC finally seem to have taken off, and mobile Facebook (and other popular social networking tools) is in the hands of many tens of millions of users. Most significantly, in some markets, mobile data revenues from SMS are no longer the number one source of non-voice revenue. Trends seen in Japan and South Korea can never be seen as “typical” indicators of what will happen in other markets around the world, as those countries stand alone in terms of leading technology adoption. However, when mainstream markets in Western Europe witness trends that recur in more than one market, then we know a change is coming. Results reported by Vodafone Group show that some of its operations, in Spain and Germany specifically, have now witnessed the changeover, where non-messaging mobile data revenues now exceed SMS revenues. So for sure, 2010 was an interesting year, and there are signs that – as we all know – one day SMS will no longer be the king of non-voice revenues. However, the fact remains that in 2010, messaging worldwide generated revenues of USD 179.2 billion, and that figure will break USD 200 billion for the first time in 2011, reaching USD 209.8 billion by the year end. SMS alone generated USD 114.6 billion in 2010, and will reach USD 126.8 billion in 2011. Compare that to mobile broadband revenues and mobile application revenues over the same time period, and there is still a lot to get excited about in the world of mobile



messaging. And it’s still growing, with revenues surpassing USD 200 billion for the first time in 2011; they go on to break USD 300 billion for the first time in 2014.

Figure 261: Revenue Comparison - Worldwide (In USD Billion, 2010 & 2011F)


F – Forecasted

Data released by the International Telecommunications Union (ITU) in October 2010, estimated that in full year 2010 there were more than 192,000 SMS sent every SECOND around the world. We estimate that this generated revenues of USD 220,000 per minute all year for the mobile operator community. Worldwide, we forecast that there are almost four billion SMS users in 2011, if we include those infrequent users who don’t use SMS every day, or even every week. Compared to this, we forecast that there are roughly one billion smartphones in use around the world in 2011, roughly 800 million mobile broadband subscribers and approximately 100 million mobile apps users. It is very probably fair to assume that the one billion smartphone users, 800 million broadband subscribers and 100 million apps users are all a sub-set of the four billion SMS users.

Figure 262: Comparison of Data Service Users (In Billion, 2011F)


114.6

32.5

51.1

6.6

126.8

38.6

58.1

9.5

0

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60

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100

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140

SMS MMS Mobile Broadband Mobile Applications

Rev

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2010 2011F

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SMS Smartphones Mobile Broadband Mobile Apps

Use

rs

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SMS is now more than 16 years old, since early commercial launches in Europe in the mid 90s, and the technology has gained universal consumer acceptance in almost every country on the planet. In some markets, use has reached unimaginable levels, indeed we might argue unhealthy levels, as recent data from The Nielsen Company suggests that typical US teens are sending 3,000 to 4,000 texts each per month; assuming the average teenager sleeps for at least 8 hours per day, this equates to sending an SMS every 7.5 minutes of their waking life78

78 Note: With reference to our earlier note on page 85, “SMS in the USA: Rapid growth and how that growth is

measured”, some adjustment might be appropriate to these US texting statistics.

. According to data from a Pew Internet Study, in 2010, 75 percent of US teens had unlimited text bundles, which may go some way to explain this incredibly high use of text among this particular demographic group. We believe that these unlimited text bundles have not been in the operators best interests long term. All-you-can-eat bundles have definitely given SMS uptake a boost, and helped drive service adoption deeper into certain demographic segments, but at the expense of long-term revenue growth. European MNOs still generate more than twice as much revenue per SMS carried than US operators, and by 2015 our forecasts show that all North American operators in total will be generating only a fraction more revenue from SMS than all European operators in total, yet carrying approximately four times as much traffic. We believe the US carriers may have made a mistake, as they now face a future where P2P SMS traffic will continue to rise steadily, and substantially, but revenues from P2P SMS are leveling off, so it is a future of diminishing profitability. Also, with flat rate billing in place, it is harder still to use SMS as a marketing differentiation tool. We believe carriers will need to start offering added functionality to SMS to help offer something to beat their competition. All-you-can-eat seemed attractive at first, and certainly boosted traffic and usage, but in the long run, it may prove to have been the first step in the long slow process of diminishing the value of SMS. We will come back to this issue later.



Summary of mobile messaging technologies – SMS Worldwide, total SMS traffic has grown from 146.4 billion in 2000 to 6,936.8 billion a decade later, in 2010, at a CAGR of 47.1 percent. The US is the largest single SMS country market worldwide in terms of traffic followed by China and the Philippines. Even adjusted for the US double-counting anomaly, the massive volume of SMS traffic in the US is still nearly double the total in China. However, at a regional level, North America runs in second place to Asia Pacific for total SMS traffic, as the combined markets of China, The Philippines, India, Japan, Indonesia, Pakistan and many other countries continue to lead, accounting for over 42 percent of worldwide SMS traffic.

Table 29: Largest SMS Markets by Traffic – Worldwide (In Billion, 2010)

Country Region SMS Traffic (In Billion)

The US North America 2,661.4

China Asia Pacific 817.8

The Philippines Asia Pacific 647.0

Indonesia Asia Pacific 331.9

India Asia Pacific 286.6

Japan Asia Pacific 274.7

Pakistan Asia Pacific 207.9

Turkey Europe 156.4

South Korea Asia Pacific 152.3

The UK Europe 124.3

France Europe 104.1

Malaysia Asia Pacific 98.7

Argentina Latin America 77.4

Italy Europe 75.1

Venezuela Latin America 73.9

Iran Africa and Middle East 73.6

Mexico Latin America 63.2

Canada North America 56.2

Poland Europe 48.4

Germany Europe 40.7




The table below shows the biggest SMS market from each region.

Table 30: Largest individual SMS Market by Traffic – Regional (In Billion, 2010)

Region Country SMS Traffic (In Billion)

Europe Turkey 156.4

Asia Pacific China 817.8

North America The US 2661.4

Latin America Argentina 77.4

Africa and Middle East Iran 73.6

Source: Portio Research Ltd. Despite having the smallest regional subscriber base of any major region, North America is the second largest contributor to worldwide SMS traffic and is expected to maintain its position until 2015. This is predominantly because of low SMS prices, pushed down by aggressive promotion of unlimited texting bundles, and increasing diversification of the A2P segment. North America’s contribution to A2P traffic worldwide for 2010 has been above 43 percent and is expected to remain above 43 percent until 2015. While unlimited bundle deals have pushed effective SMS prices down hard in North America, rapid growth in the A2P segment is helping operators generate new revenue streams from SMS. Premium services and mobile marketing efforts are growing fast in North America, helping to keep SMS revenue flowing, as the value in P2P SMS erodes. At the worldwide level, the effective cost of SMS is anticipated to continue to fall and the emerging markets of Latin America and Asia Pacific will experience a greater drop in prices in comparison to other, more mature markets. Effective SMS prices are already extremely low in North America, largely due to the unlimited bundles driving such high usage.

Figure 263: Effective SMS Cost – Worldwide (In USD, 2008 – 2015F)


F – Forecasted

0.023

0.0190.017 0.016 0.015 0.015 0.014 0.014

0.000

0.005

0.010

0.015

0.020

0.025

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S C

ost

(In

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D)

Year



As prices of SMS plunge further and other mobile data services gain popularity, SMS’ contribution to total mobile data ARPU is expected to slowly decline, as illustrated in the figure below.

Ironically, the success of other products and services, such as the rapid adoption of smartphones and broadband access, may be slowing, or even reversing, the trend towards all-you-can-eat text bundles. As network congestion, and the resultant strain on QoS, becomes an ever-more-pressing issue for MNOs, so many operators are moderating SMS bundles and charging comparatively high per-message charges for additional use off-bundle. MNOs must be careful to retain control over SMS, including control over future SMS revenue flows, as this valuable service still contributes so significantly to total mobile data revenues. Indeed, there is some evidence to suggest that the focus is shifting away from such intense SMS bundles as we lift out of the worldwide recession of 2008-2010. During the recession, all-you-can-eat bundles seemed like an attractive way to lure subscribers on to valuable monthly contracts, but as we see now, they have eroded effective SMS prices, stimulated traffic to incredibly high levels, which puts additional strain on networks, and such tariffs force MNOs to find more innovative ways to differentiate their SMS offerings from their competitors. As the recession has lifted, we now find MNOs in many regions re-introducing more tariffs with bundles of messages (but not unlimited) alongside bundles of mobile data, which are more balanced for the evolving needs of subscribers. Where this report, last year, forecast a rather gloomy picture of SMS revenues in Europe leveling off and then declining a fraction, and SMS revenues in North America barely growing in line with inflation at best, now the outlook has changed for the better. Combined with the uplift in mobile marketing and other new A2P SMS services and premium SMS services, then overall we see a better situation emerging. This year our forecasts show SMS revenues in both Europe and North America as continuing to grow, albeit slowly in Europe, as traffic continues to rise. As explained, due to price erosion in P2P SMS, this revenue growth is largely coming from the booming A2P sector. Still, MNOs would be wise to watch their use of unlimited text bundles; better to segment the customer base and offer a wider range of tariffs targeted at different demographic groups within the wider population.

Figure 264: SMS’ Contribution to Mobile Data ARPU – Worldwide (In Percent, 2008 – 2015F)


F – Forecasted

48.6%45.5% 43.5%

41.0% 38.9% 37.4% 35.5% 33.5%

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011F 2012F 2013F 2014F 2015F

SM

S C

ontr

ibut

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)

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While forecasting SMS revenues for the major regions we have assumed that SMS prices will continue to decline in all regions worldwide. However, prices are unlikely to drop drastically in advanced markets such as Europe and North America, where bundle deals have already put prices under pressure, and MNOs are now starting to protect price erosion from going any further. While effective prices for P2P SMS continue to decline, premium SMS services and A2P SMS are gaining popularity all the time. SMS continues to penetrate new verticals, slowly becoming ever-more a part of daily life in mature markets, as SMS has moved in to other utilities like SMS coupons, SMS shopping, SMS voting, and banking etc. SMS Use Studying our SMS data in detail this year, it is possible, but not conclusive, to identify certain trends emerging. It may be too early to say, but if these trends continue through 2011, by the time we publish the next edition of this report early in 2012, we may be able to report further on these trends. From looking at the data for typical SMS use per-subscriber-per-month, we see that in Europe, much of the region is beginning to stabilise. There are almost as many countries in Europe seeing a decline (10 countries) in SMS use per-subscriber-per-month, as countries seeing a steady rise (12 countries) over the last three years, 2008-to-2010. Our data then show another 14 countries in Europe where SMS use per-subscriber-per-month has been broadly stable for the whole three year period. This data suggests that in most of Europe, SMS usage at a regional level is starting to stabilise. Of course, if 2011 shows rapid growth again, post-recession, then this trend will change, but this is definitely a trend worth watching carefully. Some countries in Europe do not conform. Markets such as Greece, Turkey, The UK, Belgium, Sweden, France and Slovenia still show very aggressive growth. Other markets in Europe, including Portugal, Italy, Germany and Spain, show a decline. Spain and Portugal must be viewed as a stand-alone example, since changes in the regulatory environment may have affected our data, but several of these other major European markets are clearly showing stabilisation, suggesting a saturation point for SMS services in those markets.



Table 31: Top 20 Markets by SMS per Subscriber per Month – Worldwide (2010)

Country SMS Traffic (In Billion) SMS per Subscriber per Month

The US 2,661.4 738.4

The Philippines 647.0 660.2

Singapore 30.7 365.3

South Korea 152.3 255.8

Malaysia 98.7 255.4

Venezuela 73.9 204.4

Sweden 30.1 203.5

Turkey 156.4 200.9

Japan 274.7 200.3

Canada 56.2 198.9

Ireland 12.0 183.0

Pakistan 207.9 170.9

Indonesia 331.9 161.2

Lithuania 9.0 157.0

Denmark 13.5 147.7

France 104.1 142.3

Belgium 21.0 140.0

Portugal 26.3 130.8


The UK 124.3 127.0

Source: Portio Research Ltd. In Asia, one observable trend is the slow decline of SMS use per-subscriber-per-month in large markets such as China, as services penetrate deeper into rural segments of the market. When China was signing up tens of millions of new subscribers in urban regions, SMS use was growing rapidly, but as the Chinese market now approaches 900 million mobile subscribers, we believe 2010 was the last year of triple digit net additions, and as growth slows it is the bottom-of-the-pyramid rural markets where that organic growth is now coming from. We see SMS use per-subscriber-per-month declining year-on-year for two or three years now, in China, and this trend must be studied keenly as an indicator to what we might expect to see in other large Asian markets, such as The Philippines, Indonesia, Thailand, Vietnam, India, Bangladesh and so on. Of special note in Asia, where the Indian sub-continent meets the Middle East, is that we see some astronomical growth in SMS services. Pakistan stands out, showing 668 percent



growth in SMS use per-subscriber-per-month in just two years, from 2008 to 2010, and also Iran and Oman both show incredibly high SMS usage rates compared to other markets across the region. The table below highlights growth in SMS traffic and revenue for each region during 2010-2015.

Table 32: SMS Traffic and Revenue Growth – Regional (In Percent, 2010 – 2015F)

Region SMS Traffic CAGR (In Percent)

SMS Revenue CAGR (In Percent)

Europe 4.3 2.1

Asia Pacific 13.7 7.8

North America 9.3 8.0

Latin America 10.9 4.4

Africa and Middle East 16.9 15.2

Source: Portio Research Ltd. Finally, we have noticed one very interesting trend emerging in the more mature African mobile markets. If we look at average SMS use per-subscriber-per-month for five of the most mature, developed African mobile markets, namely South Africa, Egypt, Nigeria, Morocco and Kenya, then we see SMS use at very similar and comparable levels. Use in all these countries is within a few points of the others, and if we average out the five countries over the last three years, we can observe typical SMS use per-subscriber-per-month at 12.4 for 2008, 12.5 for 2009 and 13.7 for 2010. This data suggests that while still slowly growing, SMS use in Africa’s most mature markets seems to be finding a stable “resting place”. If this observed trend is correct, then this could be extremely significant for forecasting the future of SMS across the entire continent. It looks as though less mature markets in Africa, where penetration is still much lower than in these select mature markets, see more varied trends in SMS usage, generally at a lower level than in the mature markets. It seems likely that in less mature markets, voice is probably priced lower to stimulate use and market growth. As the market matures and penetration increases, we would expect to see voice prices stabilise and SMS prices decline to stimulate growth of non-voice services. We believe this could indicate that typical SMS use in Africa may have a common “target sweet spot” as markets across the continent move toward maturation. Again, we will monitor these trends over 2011 and report further on these issues in the 2012 edition of this report.



Industry opinions Looking at our mobile messaging vendors’ survey results, it would seem that the majority of the messaging vendors’ community believes that: • A2P SMS contributes between 5 and 20 percent to total worldwide SMS traffic

depending on the region • A2P continues to be used as a successful communication tool in mature markets such

as North America and Western Europe. P2P SMS continues to be the major driver for growth in most of the emerging markets including Africa and Asia

• A2P SMS will be primarily driven by services such as social networking, mobile marketing, mobile financial services, enterprise and M2M services and Internet services

• In emerging economies, mobile phones will become the preferred avenue to access digital content, which in turn will drive the demand for associated services, and therefore will lead to a corresponding growth in SMS revenue

• There is virtually no cannibalisation effect on SMS since the emergence of new communication modes such as Internet browsers and IM clients

• The ratio of worldwide SMS traffic generated from browsers and messengers is expected to be less than 5 percent in 2010 and expected to reach 15 percent by 2014

• Enterprise SMS as a percentage of total SMS traffic ranges between 4 and 20 percent across geographies

• Though operators realise the importance of enterprise SMS, only 20-30 percent have the necessary infrastructure in place to fully address the needs of major enterprises

• The launch of 3G services has not had any impact on the growth of SMS



Summary of mobile messaging technologies – MMS To regular readers of this annual messaging study, it will come as no surprise to hear us repeat what we have said before, that contrary to years of popular opinion that MMS somehow failed as a service, in fact MMS has been a great success. MMS is the second highest grossing non-voice mobile service of all time, second only to SMS, to which it is often unfairly and unrealistically compared. In 2010, worldwide MMS traffic hit 248.7 billion MMS messages and generated massive revenues of USD 32.5 billion. To put that into perspective, MMS is bigger than mobile apps and mobile music added together, MMS is bigger than mobile gaming and mobile video added together, twice over. MMS has not achieved the same level of success that SMS has enjoyed, this is true. However, MMS generates as much revenue now as SMS was generating when MMS was first brought to market, so in that respect, MMS has achieved the level of success that was originally hoped for, it’s just taken a couple of years longer to get there. MMS is still a huge business, making a lot of money, and still growing in all geographic regions worldwide, and at a double-digit growth rate in most. The table below highlights growth in MMS traffic and revenue for each region during 2010-2015.

Table 33: MMS Traffic and Revenue Growth – Regional (In Percent, 2010 – 2015F)

Region MMS Traffic CAGR (In Percent)

MMS Revenue CAGR (In Percent)

Europe 7.1 6.2





Source: Portio Research Ltd. We have discussed the factors behind the success, or perceived failure, of MMS in this report several times before. We will not repeat those discussions here at length, but as readers of this report, if you would like us to send you the previous editions of Mobile Messaging Futures, from 2010, 2009, 2007 and 2005, simply e-mail us at [email protected] and we will send them to you free of charge for your reference. MMS offers a very different level of utility to SMS. The success of SMS has largely been down to factors such as usefulness, ease and speed of use, ubiquity, low price, etc. MMS does not offer all of these same traits, and as such it is a very different form of communication fit for very different purposes. MMS uptake was hampered in the early years by a lack of industry standards, a lack of interoperability agreements, poor handset support, poor consumer experience, poor reliability, high prices and the lack of any clear marketing messages. MMS has finally prevailed and is widely used today, but it is still important to keep expectations in check. MMS is NOT the next SMS, and never will be. In 2010, the average mobile subscriber worldwide sent 116.7 SMS per month, compared to 50.2 MMS per YEAR. 50 MMS per year is still more messages than games downloaded, apps downloaded, music tracks purchased, payments completed, tickets delivered or videos streamed, so while MMS




traffic is only a fraction than that of SMS, MMS is still the second most popular non-voice mobile service worldwide.

Table 34: Largest MMS Market by Traffic – Regional (In Million, 2010)

Region Country MMS Traffic (In Million)

Europe Italy 3,460.8

Asia Pacific China 83,465.6

North America The US 66,242.0

Latin America Brazil 604.6

Africa and Middle East South Africa 442.6

Source: Portio Research Ltd. Where SMS seems to be showing continued growth in many markets worldwide, MMS seems to be leveling off in quite a few markets. There will still be growth, as we have forecast in this report, there will still be organic growth from new subscribers beginning to use MMS, but the data for use per-subscriber-per-year is starting to level off in many countries. The factors differ for SMS and MMS. Some of the key factors that have helped SMS achieve such worldwide success are that it is cheap, easy, quick, and the user experience is almost universal no matter what handset or network the user is on. MMS is slightly different, and there is still much variation in pricing worldwide, there are still less-than-completely-universal standards in the user experience, and MMS reliability varies across handsets and networks. As worldwide mobile penetration deepens into more rural, price-sensitive markets, so the popularity of MMS will decline slightly. In extremely price sensitive, bottom-of-the-pyramid markets, basic voice and SMS services are likely to represent the extent of most people’s mobile usage for some years, until near-free Internet access reaches these people, and affordable handsets with which to gain access become available. MMS, to these people, is a complicated, expensive luxury, which offers minimal additional utility in their often tough, hard working lives. The one worrying trend to watch is in Spain. MMS traffic in Spain has been in decline for several years, as has MMS use per-subscriber-per-year. Although Italy has always been the leading MMS market in Europe in terms of overall traffic, Spain is one of the leading European markets in general for all mobile services, and Spain is the leading market in Europe for mobile Internet access. Back in 2006 Spain saw higher penetration of MMS services, mobile music downloads, mobile IM and some other services than any other country in Europe; the Spanish market has always been at the forefront of European mobile VAS adoption. For this reason, Spain is a watch market, a possible trend setter for other European nations. The fact that mobile Internet use is higher in Spain than any other country in Europe, and MMS traffic and use per-subscriber is in decline, suggests a possible shift in consumer behavior. There is every possibility we are seeing a shift, where consumers are using online social networking tools, such as Facebook, to share images and other multi-media content, rather than sharing these things using MMS. The youth segment tends to lead any such trends, and Facebook enables sharing one-to-many quickly and easily, at a fraction of the cost of sending the same image to multiple recipients. This is one trend to watch very closely.



So as stated, many markets show a declining trend in MMS use per-subscriber-per-year, while overall traffic continues to grow, and this trend is attributable to the nature and utility of MMS, and the nature of the overall growth of the mobile markets within certain countries. Where MMS is gaining in all regions worldwide is in A2P and mobile marketing. With smartphone penetration growing in all regions, mobile broadband growing and the use of Internet based social networking tools and photo-sharing sites, so P2P MMS may have peaked, as faster networks and growing mobile e-mail use take over. However, MMS is now proving to be an excellent and popular channel to market for mobile marketing, and A2P MMS is growing fast in all regions of the world. The ever-increasing popularity of smartphones should give MMS a boost over the next few years in the A2P sector, especially as mobile marketing picks up pace. The table below shows largest MMS markets worldwide.

Table 35: Largest MMS Markets by Traffic – Worldwide (In Million, 2010)

Country Region MMS Traffic (In Million)

China Asia Pacific 83,465.6

The US North America 66,242.0

Italy Europe 3,460.8

Canada North America 1,352.9

The UK Europe 912.1

India Asia Pacific 846.0

France Europe 631.8

Brazil Latin America 604.6

Australia Asia Pacific 475.1

South Africa Africa and Middle East 442.6

Poland Europe 237.8

Germany Europe 224.9

Argentina Latin America 218.7

Spain Europe 214.5

Sweden Europe 186.3

Russia Europe 183.5

Venezuela Latin America 174.9

Iran Africa and Middle East 126.5

Portugal Europe 121.3

Turkey Europe 107.6

Source: Portio Research Ltd. Price was always one of the factors holding back the rapid adoption of MMS in its early years. In most markets where MMS has been a big success, price has been a key factor. In Italy, prices dropped and traffic surged ahead. In the USA, once interoperability agreements



were sorted out and prices declined, MMS use grew rapidly. Nowhere is this more apparent than in the largest market of Asia Pacific: China. In China, MMS prices are low and use is extremely high, making China the largest MMS market in the world, with the average Chinese mobile subscriber sending more than twice as many MMS as the worldwide average.

Table 36: Top 20 Markets by MMS per Subscriber per Year – Worldwide (2010)

Country MMS Traffic (In Million) MMS per Subscriber per Year

The US 66,242.0 220.5

China 83,465.6 106.9

Canada 1,352.9 57.4

Italy 3,460.8 38.5

Norway 105.1 20.3

Australia 475.1 16.0

Sweden 186.3 15.1

Slovenia 31.1 14.7

Denmark 94.7 12.4

Oman 47.1 11.7

The UK 912.1 11.2

France 631.8 10.4


Singapore 56.7 8.1

Ireland 41.4 7.6

Portugal 121.3 7.2


Venezuela 174.9 5.8

Finland 46.5 5.7

Iceland 1.8 5.3

Source: Portio Research Ltd. Clearly MMS is a price-sensitive service, and reduced pricing, as we have argued before in previous editions of this report, is essential to stimulate use. Now, as all-inclusive bundle deals proliferate and for many subscribers MMS bundles are part of a mixed-messaging bundle, pricing of individual MMS is probably less important. Effective prices for MMS have shown a steady downward trend, and as traffic increases in the A2P segment, this trend is expected to continue and then level off.



As the second most successful non-voice mobile service worldwide, MMS should continue to contribute significantly to mobile operators’ data revenues. Our current five year forecasts show MMS contribution to data revenues continuing to grow, albeit slowly, for the next few years.

Figure 265: Effective MMS Cost – Worldwide (In USD, 2008 – 2015F)


F – Forecasted

Figure 266: MMS’ Contribution to Mobile Data ARPU – Worldwide (In Percent, 2008 – 2015F)


F – Forecasted

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The Asia Pacific region is expected to experience strong growth for MMS as the market is being flooded with low-cost feature phones, which enable users to access advanced data services. These handsets are especially flourishing in China, and local Chinese operators are foraying into other markets as well.

Figure 267: MMS Revenue – China Mobile (In USD Million, H1 2009 & H1 2010)


Figure 268: MMS Users – China Mobile (In Million, 2009 & H1 2010)


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Industry opinions Looking at the results from our messaging vendors survey, opinion among the vendor community is that: • A2P MMS traffic typically varies between 20 to 40 percent and might go up in specific

regions such as Asia where MMS is being adopted by media companies from print to broadcast to deliver news, entertainment and advertising

• In terms of revenues, the A2P segment formed the majority portion with a contribution of 70 percent in 2010

• Worldwide MMS traffic is expected to grow over the next five years because of richer A2P MMS applications, convergence and the proliferation of the multi-device environment

• The future growth of MMS is also linked to alternate communication channels such as IM and e-mail. These channels can complement or supplement the growth of MMS depending on the geographies that they operate in, service penetration among end users, and other key factors.

• The increasing penetration of high-end phones is driving an increase in the uptake of MMS usage

• MMS usage will not be hampered due to an increase in social networking sites; a significant advantage that MMS has over social networking is the immediacy of delivery

• MMS is increasingly being included into mobile messaging bundle plans, which means that the cost of send an MMS is decreasing. With the added functionality of smartphones that allow for sending to multiple destinations with the same message, it is now easier to share images through MMS.

Summary of mobile messaging technologies – Mobile E-mail The last two or three years have seen a real turning point in the growth of mobile e-mail services. Prior to 2008, mobile e-mail was largely the preserve of BlackBerry-toting executives, and though other mobile e-mail services were available, they had not yet won significant traction in the mainstream, among private consumers. However, with the advent of ‘the smartphone rush’ over the last three years, and with the ongoing battle between RIM and Apple, mobile e-mail is moving mainstream, and growing fast. The iPhone put effortless mobile e-mail in the hands of tens of millions of new users, many of them not the traditional business executives, and this trend has continued as many more fully-featured smartphones have sold millions of units. There are now approximately one billion smartphones in circulation around the world, and as Apple and others have made inroads into the core executive market, so RIM have pushed back and put BlackBerry devices in the hands of many regular consumers. Mobile e-mail is now seeing big growth within the teen sector, in core markets such as the US, Japan and the UK. Worldwide we now record more than 480 million mobile e-mail users. The next figure shows mobile e-mail users in each region in 2010 and 2015.



Figure 269: Mobile E-mail Users – Regional (In Million, 2010 & 2015F)


F – Forecasted

In 2010, the Asia Pacific region was the largest mobile e-mail market worldwide in terms of number of mobile e-mail users, whereas Europe generated the highest mobile e-mail revenue worldwide. These two regions are both expected to maintain their respective leading positions through to end-2015. As an individual country market, Japan has been the biggest market for mobile e-mail in terms of user penetration and it is expected to maintain its position in the near future. Over the coming years, the Latin America region will have the highest growth in its mobile e-mail market owing to the increasing smartphone penetration and the small mobile e-mail user base currently operating in 2010. The table below highlights growth in mobile e-mail users and revenue for each region during 2010-2015.

Table 37: Mobile E-mail Users and Revenue Growth – Regional (In Percent, 2010 – 2015F)

Region Mobile E-mail Users CAGR

(In Percent) Mobile E-mail Revenue CAGR

(In Percent)

Europe 35.0 29.5






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Figure 270: Mobile E-mail Revenue – Regional (In USD Billion, 2010 & 2015F)


F – Forecasted

Obviously mobile e-mail has broadly been more popular in the enterprise segment than the consumer segment in previous years. RIM’s BlackBerry pioneered the use of mobile e-mail in the enterprise sector, and built an impressive, market leading position with corporations around the world. Now, however, even the consumer segment has started contributing to the market and the popularity of mobile e-mail is expected to grow significantly. We have argued in previous editions of this report that ultimately, we believe e-mail will become the most ubiquitous form of mobile communications on the planet. Once e-mail is in the hands of billions of people, integrated seamlessly between desktop and mobile devices, we believe mobile e-mail will cannibalise all other messaging formats – though that future is currently still some years away. Industry opinions From the results of our messaging vendors’ industry survey, it appears that the majority of the messaging vendors’ community believes that:

• Enterprise E-mail accounts for more than 70 percent of the current mobile e-mail market (end-2010)

• With the increasing prominence of Apple iPhone and the numerous Android-based phones, the uptake of consumer e-mail services is expected to grow rapidly over the next 5 years

• The split between enterprise and consumer e-mail will narrow down to approximately 58:42 by end 2014 or 2015

• In the most developed markets, where there is a higher penetration of smartphones coupled with new technology like 3G and above, the uptake of mobile e-mail services is around 13-15 percent

• The global average of mobile e-mail uptake is between 7 to 9 percent of the global subscriber base. The revenue contribution is around USD 13 billion in 2010. (In reality, it is USD 25 billion in 2010, as our data in this report shows).

• The evolution of mobile e-mail, when compared to other mobile services, will show a slower pace of adoption

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Summary of mobile messaging technologies – Mobile IM Mobile IM is ‘the small player’ in the mobile messaging mix, generating revenues of USD 6.8 billion in full-year 2010, a substantial amount of money, but small compared to the massive USD 114.6 billion generated by SMS. For a long time, it has been feared that mobile IM would be the death of SMS, as IM offered a similar quick, easy, simple chat mechanism, at a lower price point and with increased immediacy. Mobile IM is an extremely popular service, with more than 311 million users at end-2010. In 2010, the Asia Pacific region was the largest market worldwide in terms of mobile IM users and Europe was the largest market worldwide in terms of mobile IM revenues. The two regions are expected to hold these leading positions through to 2015 as well. The figures below show mobile IM users and revenue in each region in 2010 and 2015F.

Figure 271: Mobile IM Users – Regional (In Million, 2010 & 2015F)


F – Forecasted

Figure 272: Mobile IM Revenue – Regional (In USD Billion, 2010 & 2015F)


F – Forecasted

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In 2010, there were 28 million more mobile IM users in the Asia Pacific region than in Europe, but this difference is expected to grow over the coming years, with Asia Pacific’s user base becoming more than double that of the European market by 2015, as IM continues to rise in popularity across the region. The table below highlights growth in mobile IM users and revenue for each region during 2010-2015.

Table 38: Mobile IM Users and Revenue Growth – Regional (In Percent, 2010 – 2015F)

Region Mobile IM Users CAGR (In Percent)

Mobile IM Revenue CAGR (In Percent)

Europe 31.9 32.6






Our forecasts show that between 2010 and 2015, mobile IM revenues from Asia Pacific will begin to close the gap with Europe, thanks to the substantial increase in user base, but Europe will remain in the lead, just, to the end of 2015. Mobile IM is extremely popular in China, especially among the youth segment, where teens use mobile IM and web access much more than teens in other Asian markets. Between 2010-2015, while mobile IM will have a higher worldwide revenue CAGR than mobile e-mail (35.7 percent and 26.6 percent respectively; see Figure 273 later), the total values of these markets will grow wider apart – in mobile e-mail’s favour. As Table 11 shows (see page 28), total worldwide mobile IM revenue was USD 6.8 billion and will rise to USD 31.2 billion by end-2015; mobile e-mail, on the other hand, will see an increase from USD 25.4 billion in 2010 to USD 82.6 billion at the end of 2015 – to widen the gap between the market value of these two messaging services. Perhaps mobile IM is losing out to the social networking sites, as youth users prefer the one-to-many rapid communication that social networks offer. Industry opinions Studying the results of our mobile messaging vendors’ survey, the majority of the messaging vendors’ community believes that: • The number of Mobile IM users worldwide ranged between 100 to 250 million,

contributing USD 3 billion in 2010 (in reality, there were 311 million users generating USD 6.8 billion in full year 2010)

• In terms of region specific growth, Asia Pacific, Africa and Middle East, and Latin America will show the major growth in terms of growth in user numbers

• Session-based IM has been growing in prominence over transaction-based IM as it offers communication in real-time with other users

• Vendors believe that mobile IM services will continue to aggregate the major online portal IM services to increase their appeal within their expanding user (or subscriber) base

• Vendors feel that the integration of mobile IM with Internet IM (MSN, Yahoo, Gtalk) allows operators to provide a unique balance of access to online communities, while still reaping the benefits of a closed carrier service



• Until such time that Facebook apps begin to support Facebook chat on mobile, there will be no impact on IM services. But the revenues might get impacted as and when the applications start supporting the chat feature.

• Though mobile IM is expected to grow in the next five years, the pace of that growth comes within broader MNO messaging bundles, where mobile IM is packaged with other voice and mobile messaging services

• The growth of IM does not come at the expense of SMS, as SMS still remains the most popular communication tool

Changing markets

While SMS remains the king of non-voice mobile revenues, and still a highly profitable service for MNOs, there is little doubt that markets are changing, and consumer habits, led by the vital youth segment, face further rapid changes in the years to come. With the explosive proliferation of smartphones, so 24-month contracts are becoming the norm now, and consumers broadly accept this. Most consumers appreciate that if an MNO is going to subsidise a USD 500 handset to the point that it comes to the end user for free, a two year commitment is acceptable. Yet 24 months is a long time in the world of smartphones. If a consumer upgraded to a cool new smartphone in the last few months of 2010, then that consumer is unlikely to have Near Field Communication (NFC) as a standard feature, as NFC is “coming in 2011” for most smartphone brands. Mobile payments are finally taking off now, after massive movements forward in that space in 2010, and in 2011 mobile payments should start becoming an everyday reality for tens of millions of new users. We at Portio Research forecast an additional 50 million new mobile payments users worldwide in 2011. However, a consumer who upgraded their smartphone in the second half of 2010, and signed a new 24-month contract, is unlikely to have this NFC support until mid-to-late 2012, unless they are prepared to break contract and pay out a few hundred US dollars for an upgrade off-plan. We believe that handset replacement cycles are going to start stretching out now, as MNOs feel their margins being pinched from every angle, and handset subsidies decline in response. This will mean that as new features/services are being introduced, they may face spending a longer time in the ‘market adoption’ phase of their life cycle, as consumers will have to wait for hardware upgrades. Of course, software based services will not be affected in this way – a strong case for making as many services as possible software (app) based – with the hardware installed in the network or operating in the cloud, depending where hardware is required. Media consumption Changing patterns in handset replacement rates is just one small change currently underway. Much bigger changes are happening in consumer media consumption. TV viewing habits are changing rapidly in mature markets, since Internet TV and Personal Video Recorders (such as TiVo and Sky+) have enabled consumers in North America, Europe and other countries to time-shift their TV viewing. Increasing numbers of viewers are time-shifting out the advertisements and advertisers know this. Looking for new ways to get the attention of consumers, mobile marketing is a rapid growth space. Various estimates suggest that up to 94 percent of SMS messages sent are actually read by the recipient, and approximately 90 percent are read within a few minutes of receipt (estimates vary from three to ten minutes). This represents an extremely exciting opportunity for advertisers, and this is driving A2P SMS and MMS growth rapidly.



Various estimates suggest that 4.5 billion people worldwide regularly watch TV, on an installed base of approximately 1.5 billion TV sets worldwide. By contrast, there are now 5.3 billion active mobile subscribers worldwide, each using an individual handset, and the vast majority of these are capable of receiving an SMS. SMS continues to pervade every facet of 21st century living. SMS is becoming a more interactive service, gaining popularity in conjunction with TV shows, for voting and competition entries, and for shopping, with mobile coupons, and so on. SMS has been an incredible success. It has generated revenues for operators worldwide, of approximately USD 585 billion since it was invented in the mid-1990s. According to our forecasts, we calculate that it is still set to earn those operators another USD 726 billion over the next five years, to year-end 2015. After this time, the future of SMS is less certain, but more about that in next year’s report. For now, MNOs should focus on the fact that SMS will generate more than USD 1 TRILLION over the next seven years. Unlimited bundles The story of the unlimited bundle deal is an unfinished one at this time. As discussed earlier, while unlimited SMS deals certainly helped drive adoption, to questionably unhealthy levels among the teen segment in some markets, we believe that unlimited SMS bundles have caused some long-term harm to SMS. The history of unlimited deals in the mobile industry, so far, has not been great. Unlimited SMS in The Philippines, long known as the ‘SMS capital of the world’ has been largely successful, but in other cases things have not been so great. Unlimited SMS deals in the US, have, as discussed in this report, seen traffic rise to unprecedented levels, and in our opinion, parents of teenagers reportedly sending over 4,000 SMS per month should be greatly concerned! US operators are left with a business set to see traffic double from mid-2010 levels to end-2015, while revenue growth is much slower, so MNOs face an ever-increasing burden against diminishing profitability. In another example, giffgaff, an MVNO in the UK, running on the O2 network, offered subscribers an unlimited voice and text bundle for just USD 39.3 (GBP 25) per month. giffgaff found some consumers using up to 13,000 minutes per month, equivalent to more than nine continuous days of talking, with even the average consumer using over 5,000 minutes, equivalent to three and a half days of continuous talking. Such use was costing the company hundreds of pounds per month in lost revenue for every subscriber, by the time termination rates had been calculated. Needless to say, the tariff had to be withdrawn from offer. The discussion over unlimited data tariffs has been ongoing for the last three years. Since ‘the smartphone rush’ began in 2007, two of the highest profile iPhone-exclusive carriers, AT&T in the US and O2 in the UK, have both suffered embarrassing capacity problems, and around the world MNOs have introduced and then subsequently withdrawn or capped unlimited data plans. Numerous examples show that if you offer consumers any communication service in an unlimited quantity, a fair number of those consumers will abuse the offer, to the detriment of the network. According to data from a Pew Internet Study, 75 percent of the US teens in 2010 subscribed to an unlimited text tariff, and many were sending up to 3,000 (boys) or 4,000 (girls) texts per month. This shows how the bundles have encouraged gross overuse of text. Reports indicate that teens have cut back on voice as their text use has increased. It seems that the



perception is that texting is still quite ‘cool’ and ‘fun’, and while that’s partly true, in reality it’s probably just free (unlimited), so they do it. It is worth remembering that five years ago, SMS saw still gaining popularity in the US market, and millions of consumers were learning the texting habit, happily paying USD 0.10 per message. Overall, US MNOs are now generating effective revenue-per-message of less than 1 cent per SMS carried. MNOs in mature markets, such as the US, where unlimited text bundles have been so popular, should look carefully at reintroducing more capped bundles, and look to add more value to SMS with new features and benefits. SMS can and should be used as a differentiation tool in the MNOs marketing mix. It may not be as cool and new as many other services, but it is used far more often by far more people. It bears repeating yet again that SMS will continue to form the single biggest contribution to mobile data revenues for at least the next five or six years. As mentioned earlier, SMS seemed to lose its appeal to the media and to MNOs after 2007, and between the sky-high traffic, combined with flat rate billing and declining profitability, it is becoming all too easy for MNOs to ignore SMS in their pursuit of more advanced new services. New services are slowly attacking SMS for market share, not least the booming growth of mobile e-mail, as increasing numbers of other players compete to win messaging traffic. The table below compares the CAGR of worldwide revenue of all mobile messaging services during 2010-2015.

Figure 273: Worldwide Mobile Messaging Services’ Revenue CAGR (In Percent, 2010 – 2015F)


F – Forecasted

The above figure clearly shows that although SMS will remain the preferred mobile messaging service for some time, the future growth of SMS will lag behind the growth of other messaging services. Obviously, SMS is more mature to start with, and maintains its lead by a long way, but the other services are all growing, all competing for, and winning, messaging market share. MNOs are in danger of letting SMS slip away from their control if they continue to devote all of their development and marketing attention to other services. SMS faces threats from free messaging services such as Kik Messenger, PingChat and other instant messaging services. Resellers, aggregators and applications providers like SMSGupShup in India, are taking control of considerable chunks of SMS traffic. For years the mobile community

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thought that mobile IM would be the big threat to SMS, and we have all been watching SMS for years for signs that mobile IM is eating into SMS’ growth. In reality, mobile IM still has not substantially eaten into SMS’ market share, but Facebook and other social networking giants now provide the real threat. Social networking

The rise of the big social networking sites has been quite incredible. Facebook only ‘went public’ in September 2006, yet now in 2011 Facebook has over 600 million registered users. Among those millions, more than 150 million people access Facebook through their mobile devices, from all over the world. It looks increasingly likely that Facebook, Twitter and other popular social networking sites are taking some market share from SMS, MMS and IM, though as yet we do not have any numbers. Facebook declined to be interviewed for this report, so we do not have any data for the number of private messages being sent each year, but it is likely to be quite high. Among our staff here at Portio Research and among our online friends, we estimate that the ‘average’ Facebook user sends approximately ten private messages per week on Facebook (we didn’t check on other social networks). If we are typical of other users then worldwide that calculates to 600 million users times ten, or 6 billion private messages per week, or 312 billion messages per year. We have no idea if this figure is accurate and we have not been able to verify this in any way, it’s just a ballpark estimate. However, if it is even close to correct, then Facebook private messaging traffic is already exceeding worldwide MMS traffic, showing how fast the social networking sites are growing. We would note that there is huge variance among Facebook users, just as among SMS users, mobile e-mail users, etc. Teens and online marketers seem to be sending hundreds of Facebook private messages per week, whereas many users don’t send any at all. Of course, it is also important to remember that of Facebook’s 600 million registered users, only 150 million users use Facebook mobile, and then it does not automatically follow that they are always using the site from their mobile device, as they may often still access the site from a fixed PC connection. We don’t know what proportion of this possible annual 312 billion messages may or may not be sent from a mobile device, we hope to speak to Facebook and research this further in time for the next edition of this report. And Facebook is by no means the only big player in the market. Late in 2010, at the GSMA Mobile Asia Congress, executives from China’s SINA Mobile and South Korea’s SK Communications spoke out about the popularity of their own social networking offerings in their home countries. SINA offers a micro-blogging service called Weibo, with similarities to Twitter, which registered over 50 million users in its first fourteen months of operation, with estimates that users will pass 100 million well before its second birthday. Mobile IM and mobile web access are both extremely popular with teens in China. According to data published by The Nielsen Company, approximately seventy three percent of Chinese users aged 15 to 24 reported accessing the mobile Internet over a 30 day study period. The potential for other local-language specific social networking sites to win hundreds of millions of new users in the big Asian markets of China, India, Indonesia and so on, is huge. Advanced technologies are growing fast in the Asia Pacific region, and the sheer size of the market means every new service will attract big numbers. Our own forecasts for LTE uptake show Asia Pacific will have almost 100 million LTE subscribers by the end of 2015, almost twice as many as either Europe or North America. The youth population in many of these large markets is enormous. In India alone, more than half the population is under 25 years of age, meaning there is astronomical potential for the uptake of social networking in India, and



for millions of Indians their mobile device will be their first and only connection to the Internet. Some other evidence supports arguments that SMS traffic may be slowing as more mobile subscribers spend more time accessing the web using their mobile handsets. Reports over the Christmas holiday period in Europe suggest that SMS traffic in a number of countries declined slightly year-on-year. Reports from the Czech Republic, Sweden, Denmark and Norway all report a decline in Christmas Eve and Christmas Day SMS traffic over Christmas 2010, down from Christmas 2009. It seems likely that Christmas party-goers with a web-enabled smartphone in their hands can use Facebook or Twitter to wish all their friends a Merry Christmas in one message, and then upload amusing photographs to Facebook and share them with hundreds of friends at once. Earlier in this report we already noted the trend observed in Spain, where MMS traffic and use-per-subscriber has been in decline steadily for two or three years now, linked with Spain being the leading country in Europe for mobile Internet access. Spain has Europe’s highest mobile Internet use, and Spain is the only one of the Western European ‘Big Five’ to show MMS in decline. Final words The dominance of SMS will not last forever. Social networking, IM-based chat services and the growing popularity of mobile e-mail, particularly among teens, all threaten to steal market share from SMS. MNOs can slow this by making the most of the ubiquity of SMS. SMS is finding new ways to integrate with other services and media all the time, and there are still lots of opportunities for the growth of social networking to be as much a boost for SMS as a potential threat. SMS is the most widely used form of digital written communication on the planet and with a trillion USD in revenues to come over the next six or seven years, it’s a technology that still offers incredible promise. MMS is still growing at a double-digit rate almost everywhere, and the proliferation of smartphones should only boost this growth. Mobile e-mail and mobile IM are both growing fast and winning new users all the time. As faster networks reach more segments of the population, these services will continue to penetrate even deeper into consumer markets. The USD 200 billion mobile messaging market dwarfs all other non-voice mobile services, including mobile broadband access, mobile apps, music, games and videos – all added together.

But we should look after our children…

Research data published in a Pew Internet study suggests that female teens are the most prolific users of SMS in North America, often sending more than 4,000 texts per month. While parents should perhaps worry about these levels of use, if female teens are sending more than 10 text messages every waking hour, at least undesirable teen pregnancy rates may decline! However, one study quoted online shows that 10 percent of teens believe that texting during sex is acceptable, so maybe not! Finally, research studies show that around the world over 200,000 car crashes are caused every year by people texting while driving. Please, don’t do it!



Chapter 11 Appendices



Appendices This market study has been written in a way that avoids excessive use of market acronyms (except where appropriate) and industry technical talk, as we have tried to keep the text open to all readers, not just those with in-depth knowledge of the world’s mobile markets. Because this study covers all geographical regions and many emerging markets, a great deal of the data contained within this study will potentially be of interest to investors, financial analysts, consultants, venture capitalists and others all around the world who do not work within the mobile industry itself every day of their lives. To many of these people, some of the industry technical talk and acronyms may be confusing, so we have attempted to write this study in a self explanatory way that assumes little prior knowledge, but in doing this, some of the speech chosen may seem somewhat "obvious" to our more knowledgeable readers. We hope this offers the best possible solution to everyone, and we hope this does not cause any confusion or inconvenience. Where we have used technical terms or acronyms, we offer an explanation of those expressions below.



Glossary

2G or Second Generation Packet Data Networks The second-generation packet networks recently introduced consist of combined voice and packet data networks based on global standards.

2.5G 2.5G describes the state of wireless technology and capability usually associated with General Packet Radio Services (GPRS) - that is, between the second and third generations of wireless technology. The second generation or 2G-level of wireless is usually identified as Global System for Mobile (GSM) service and the third generation or 3G-level is usually identified as Universal Mobile Telecommunication Service (UMTS). Each generation provides a higher data rate and additional capabilities. There is also a fourth generation (4G) of technology in the planning and research stages. 2.5G protocols extend 2G systems to provide additional features such as packet-switched connection (GPRS) and enhanced data rates (HSCSD, EDGE).

3G or third generation 3G is an International Telecommunication Union (ITU) specification for the third generation (analog cellular was the first generation and digital PCS79

Third generation Wireless Wide Area Networks (WWAN) communication systems are characterised by high-speed data rates (144 Kbps

was the second generation) of mobile communication technology.

80 to 2+ Mbps81) suitable for multimedia content. 3G technologies typically are packet-switched and use Code Division Multiple Access (CDMA) technology to communicate. Examples of 3G include EDGE82, 1xRTT, HDR and W-CDMA.83

3G as a Percentage

3G protocols in mobile telephony support higher data transmission rates, measured in Mbps, intended for applications other than voice. 3G support broadband and bandwidth applications, such as full-motion video, video conferencing and Internet access.

3G as a percentage refers to 3G subscribers as a percentage of total active mobile subscribers in a country. This represents the proportion of 3G subscribers in the total mobile subscriber base of a country.

3G Penetration 3G penetration refers to 3G subscribers as a percentage of total population of the country. This is similar to the term ‘mobile penetration’, which means total number of active mobile subscribers in a country as a percentage of total population of the country.

4G or fourth generation 4G or fourth generation WWAN communication systems are characterised by high-speed data rates at 20+ Mbps, suitable for high-resolution movies and television. The initial deployment of 4G communication systems is expected in 2006-2010. The proposed features of these systems include 100 Mbps speed, location sensing and self-tailoring to user needs.

A2P Application-to-Peer: In the mobile messaging world A2P messages are defined as messages generated by an application and sent to subscribers, for example, the advertisements sent through SMS/MMS on subscribers’ handsets.

79 Personal Communications Service (PCS) 80 Kilobits per second (Kbps) 81 Megabits per second (Mbps) 82 Enhanced Data for Global Evolution (EDGE) 83 Wideband Code Division Multiple Access (W-CDMA)



AAC Advance Audio Coding: It is an advanced audio compression algorithm used for downloading music files, streaming video, audio and satellite-radio applications.

Application Programming Interface (API) It is an interface implemented by a software program to communicate with other software. Operating systems and applications use API to determine the way to call or send requests to other software.

Augmented Reality (AR) Augmented reality is the superimposition of virtual content over the real time environment. Virtual content includes digital graphics, audio and other sense enhancements, which are augmented to the real world by an AR device.

Average Revenue per User (ARPU) Measures the average monthly revenue generated for each customer unit, such as a handset or pager that an operator has in operation.

Backhaul It refers to the process of transmitting voice and data traffic from a remote site to a central site.

BREW Binary Runtime Environment for Wireless: It is an application development platform developed by Qualcomm. It enables wireless users to download and run applications, such as enhanced e-mail, location positioning, games, etc., to BREW-enabled handset. BREW was first introduced and developed for CDMA handsets, but it now supports GSM/GPRS and UMTS handsets as well.

BTS Base Transceiver Station: It is the equipment that facilitates the wireless communication between user equipment such as mobile handsets, computers etc., and the mobile network.

Broadcast Technologies for Mobile TV Some of the broadcast technologies for mobile TV worldwide are: DVB-H84 (Digital Video Broadcast – Handheld): DVB-H technology allows simultaneous broadcast of television, video and radio channels on mobile, and helps operators to preserve network bandwidth for other data and voice services. It has been accepted as the standard by the European Telecommunications Standards Institute (ETSI). ISDB-T (Integrated Services Digital Broadcast – Terrestrial): It is the transmission standard that has been developed in Japan to help the radio and television stations support digital content. DMB (Digital Media Broadcast): It is a transmission standard, which transmits video feed via satellite (S-DMB) or terrestrial (T-DMB) mode. The standard is currently deployed in Korea and is being increasingly used in other parts of Asia as well as Europe. MBMS (Multimedia Broadcast/Multicast Service)

84 Source:

: This standard allows the transmission of multimedia content over the UMTS and GSM network.

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BWA Broadband Wireless Access: It is a form of fixed wireless access system.

Byte Byte is a collection of bits in which each bit can take a value of either 1 or 0. Kbps, Mbps and Gbps denote the number of bytes transferred per second; Kbps, Mbps and Gbps translate to 103, 106 and 109 bytes per second respectively.

CAPEX Capital Expenditure: It refers to the cost of developing a product or system.

CDMA Code Division Multiple Access: In a CDMA system, each voice circuit is labelled with a unique code and transmitted on a single channel simultaneously along with many other coded voice circuits. The receiver uses the same code to recover the signal from the noise.

CDMA2000 1x CDMA2000 1x: This is regarded as the first phase of CDMA2000 technology used for providing voice and data services over mobile networks. Data speeds of 307kbps are using a single channel while with two channels speeds of 614kbps are possible.

Churn Rate It is the rate at which the subscribers cancel their subscription with the existing operator and sign up with another operator.

Cloud Computing Cloud computing is a technology involved in delivering hosted services on the Internet. It is based on client-server architecture, which includes user device with applications (such as Web browsers) to access the back end (various components, such as data storage devices, servers, etc.). The back end components perform specific tasks and interact with each other through standard application programming interfaces.

Dongle Dongle is a portable device which is connected to a laptop or desktop and resembles a USB flash drive. It is widely used as a wireless broadband adapter.

DRM Digital Rights Management: It refers to a set of technologies used for the administration of digital content. It authorises the nature and restricts the frequency of the usage based on the administrative policy settings. It sustains the revenue of the mobile network operator by regulating the usage of content at end user.

DSL Digital Subscriber Loop: It is a technology that provides digital data transmission over the copper lines of a PSTN network. Dumb Pipes Dumb pipe refers to a mobile operator’s wireless network being used only to transfer data/bytes between the Internet and the user’s device. For an operator being a dumb pipe, there is a potential loss of revenue for the operator, since the operator is generating revenue only for the network data access and is not receiving any significant share in data/content service revenue.

EDGE Enhanced Data rates for Global Evolution: An enhanced modulation technique designed to increase network capacity and data rates in GSM networks. EDGE should provide data



rates up to 384 Kbps. EDGE will let operators without a 3G license compete with 3G networks offering similar data services.

EV-DO Evolution Data Only, Evolution Data Optimised: It is a wireless radio broadband data protocol being adopted by many CDMA operators. It is being used as a part of CDMA2000 networks in Japan, Korea, the United States and Canada. It provides better data speeds in comparison to GSM technologies such as GPRS and EDGE.

FDMA Frequency Division Multiple Access is a channel access protocol that allows a user dedicated allocation to single or multiple frequency bands.

Feature Phone Feature phones are handsets with browsers (primarily based on embedded J2ME and BREW platforms) to enable access to web based e-mail, and sometimes have embedded applications for social networking, instant messaging (IM) and mobile banking. These phones often come with high resolution cameras, GPS and innovative multimedia features. The major differentiating factor between a smartphone and a feature phone is that feature phones do not have an open Operating System (OS). The OS present in smartphones, through its Application Programming Interface (API), enables subscribers to install and remove third-party applications. Smartphones are better integrated with the handset's User Interface than Java applications. Freemium Freemium is a strategy adopted by application stores in which trial or lite versions of premium apps are offered for free or for a small charge; and users have an option to upgrade the apps with additional features by paying additional charges.

Gbps Please see “Byte”.

GPRS General Packet Radio Service (GPRS) is a packet-based standard for mobile communication, which runs at speeds up to 115 kilobits per second, compared with GSM systems' 9.6 kilobits per second. GPRS supports a wide range of bandwidths and makes efficient use of limited bandwidth. It is particularly suited for sending and receiving small bursts of data, such as e-mail and web browsing, as well as large volumes of data. Applications for GPRS may include any of the following: chat, text and visual information, still images, moving images, web browsing, document sharing/collaborative working, audio, job dispatch, corporate e-mail, Internet e-mail, vehicle positioning, remote Local Area Network (LAN) access, file transfer or home automation.

GSM Global System for Mobile communications, the most widely used digital mobile phone system and the mobile telephone standard in Europe. It was originally defined as a pan-European open standard for a digital cellular telephone network to support voice, data, text messaging and cross-border roaming. GSM is now one of the world's main 2G digital wireless standards. GSM is present in more than 160 countries and according to the GSM Association, accounts for approximately 70 percent of the total digital cellular wireless market. GSM is a time division multiplex (TDM) system. Implemented on 800, 900, 1800 and 1900 MHz frequency bands.



GUI Graphical User Interface (GUI) is the front-end interface and navigation design of an application. This includes standard formats for representing text and graphics. GUIs have become the standard ways for interaction between users and digital devices.

HARQ Hybrid Automatic Repeat Request is a process of ensuring data transmission even in poor signal conditions with an adverse effect of lowering the throughput in better signal conditions. It does so by error-correction in addition to error detection in the transmitting bits.

HSPA High Speed Packet Access comprises two mobile protocols: High Speed Downlink Packet Access (HSDPA) and High Speed Uplink Packet Access (HSUPA). These protocols enhance the performance of WCDMA protocols.

HTML Hyper Text Mark-up Language: It is a syntax based language used for designing web pages. The content of HTML, written in standard syntax, when opened in a web browser takes the form of Web page. The nascent version of HTML was used with easy syntax rules in comparison to existing HTML and MHTML versions of it. In recent times, the official standards of World Wide Web recommend Web developers to use XHTML 1.1, XHTML 1.0 and HTML 4.01 versions.

i-mode i-mode is a proprietary packet-based information service for mobile handsets. It delivers information (such as mobile banking, and train timetable) to handsets and enables exchange of e-mail from mobile handsets on the PDC-P network. Launched in 1999 by NTT DOCOMO, i-mode is very popular in Japan (especially for e-mail and transfer of icons).

IMPS IMPS (Instant Messaging and Presence Service) is an instant messaging system designed for mobile environments. Presence refers to the availability of a user for communication.

IMS IMS IP Multimedia Subsystem is an extension of the GSM / 3GPP GPRS core Network. It uses SIP (Session Initiation Protocol) to set up, maintain and terminate packet-switched voice and multimedia sessions.

Interoperability This is defined as the ability of a network to operate with other networks, such as two systems based on different protocols or technologies.

In-app Payment In-app payment is the payment made by mobile user to get privileged features, services or digital goods while using mobile apps. The privileged feature may be moving from a free or lite version of an app to the full version.

Instant Messaging (IM) Instant Messaging is an Internet-based service that alerts users when their friends or colleagues are online and allows them to communicate with each other in real-time through private online chat areas. With instant messaging, users create a list of other users with whom they want to communicate. When a user from their list is online, the service alerts them and enables an immediate contact with the other user. While instant messaging has primarily been a proprietary service offered by Internet service providers such as AOL and MSN, businesses are starting to employ instant messaging to increase employee efficiency and make expertise more readily available to employees.



Integrated Mobile Broadcast (IMB) It is a 3GPP Release 8 Standard that empowers MNOs to offer Multimedia Broadcast Multicast Services in a spectrally efficient manner in the 3G TDD bands. It is deployed existing 3G FDD unicast technology.

Intranet The intranet is a private network inside a company or an organisation, and uses software similar to that used on the Internet. Companies use intranets to manage projects, provide employee information, distribute data and information, etc.

J2ME Java2, Micro edition: The Micro Edition of the Java 2 Platform provides an application environment that specifically addresses the needs of commodities in the vast and rapidly growing consumer and embedded space, including mobile handsets, pagers, personal digital assistants, set-top boxes, and vehicle telematics systems.

Java A simple platform-independent object-oriented programming language used for writing applets that are downloaded from the World Wide Web by a client and run on the client's machine.

Kbps Please see “Byte”.

KPI Key Performance Indicator (KPI) is a term used to indicate the key indicators to measure the business and operational performance of the companies in order to evaluate success and competitive position in the market. In the case of mobile companies, we use commonly used KPIs, such as Subscriber Addition, Market Share, ARPU, Churn Rate, etc. In addition, Revenue, Operating Profit and Number of Employees are other KPIs generally used to benchmark different companies.

LTE Long-Term Evolution (LTE) is the standard being developed by 3GPP to achieve download rates of 100Mbps, and upload rates of 50Mbps for every 20MHz of spectrum and is termed as a 4G standard. LTE has support for bandwidths ranging from 1.25MHz to 20MHz.

LTE Commitments LTE commitments cover announcements from service providers about conducting trials and deployments for LTE networks.

LTE Deployments LTE deployments refer to the successful launch of LTE services in a market by a service provider.

LTE Engagements LTE engagements refer to the collaborations between service providers and infrastructure vendors to conduct LTE trials and deployments. An LTE trial or deployment may consist of more than one engagement. For example, TeliaSonera selected Ericsson and Nokia Siemens Networks for its LTE roll-out in Norway. In this case, one LTE deployment accounted for two LTE engagements.

LTE Subscriber Base as a Percentage of Total Mobile Subscribers LTE subscriber base includes the subscribers using LTE services through dongles and handsets. LTE subscriber base as a percentage of total mobile subscribers refers to the percentage of mobile subscribers who use LTE services.



M2M Machine-to-Machine: M2M generally means the communication between machines. However, in the mobile world, it is sometimes defined as Mobile-to-Mobile, which basically refers to communication that involves only mobiles and not landlines.

MAN Metropolitan Area Network is a computer network that normally encompasses a city or a big premise. It is formed by connecting several local area networks.

Mbps Please see “Byte”. MiFi MiFi is a collection of wireless routers that are used as mobile Wi-Fi hotspots. The technology is developed by Novatel Wireless. MIMO Multiple-Input and Multiple-Output refers to the use of more than one antenna at the transmitter and receiver end to enhance the communication process.

Mobile Broadband Users as a Percentage A mobile broadband user as a percentage refers to mobile broadband users as a percentage of total active mobile subscribers in a country. This represents the proportion of mobile broadband users in the total mobile subscriber base of a country. MNO Mobile Network Operator.

MNO market penetration It is the mobile subscriber base of an MNO expressed as a percentage of total population of the country of operation.

Mobile E-Mail Penetration Mobile E-mail Penetration is described as mobile e-mail users (of the specified market or region) as a percentage of the specified market or region’s mobile subscriber base

Mobile IM Penetration Mobile IM Penetration is described as mobile IM users (of the specified market or region) as a percentage of the specified market or region’s mobile subscriber base

Mobile penetration It is the mobile subscriber base in a country expressed as a percentage of its total population.

Modem A modem is a device which modulates and demodulates analogue and digital signals for the transmission of signals over different carriers.

MVNO Mobile Virtual Network Operator: Term used for a mobile operator who does not own its own spectrum and usually does not have its own network infrastructure. Instead, MVNOs have business arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own customers.



Native Apps Native apps are mobile applications developed specifically to run on a particular operating system or device.

Near Field Communication Near Field Communication (NFC) is a wireless communication technology which uses short-range high frequency to enable the exchange of data between devices in proximity with each other. The distance between the communicating devices has to be less than 10 centimetres. NFC-capable devices can communicate with smartcard readers as well as other NFC-capable devices.

Node - B It is a term used in Universal Mobile Telecommunications System (UMTS) to refer to the Base Transceiver Station (BTS).

ODM An original design manufacturer (ODM) is a firm involved in designing and manufacturing a product according to specifications provided by another firm. The products are sold under the brand of the firm which gives the manufacturing contract to the ODM.

OEM An original equipment manufacturer (OEM) is a firm which acquires a product (or a component) for reuse or incorporation into the products branded under its name.

OFDMA Orthogonal Frequency Division Multiple Access is an advancement of Orthogonal Frequency Division Multiplexing to support mobile networks with more flexibility. Subsets of the subcarriers are assigned to individual users to facilitate multiple access.

OMA-IMPS Open Mobile Alliance-Instant Messaging and Presence Service: It is an open mobile alliance enabler for instant messaging and presence. The first cut of this specification was developed by the Wireless Village consortium.

OPEX Operating Expenditure: It refers to the ongoing costs for running or operating a product or system.

OPhone OPhone is a mobile operating system developed by China Mobile. It runs on Linux kernel and is based on Google Android’s Open Mobile System (OMS) operating system.

Over-the-Top Services Over-the-top services refer to those services which are available to users over mobile networks without MNOs being involved in planning, provisioning and selling them.

Packet Data Packet data is a method of transmitting information in small packets each containing a certain amount of the information. Packet data networks allow transmission of high-speed data to and from devices connected to the network. Packet Data is similar to dial-up Internet access available in homes or in businesses with cable modems, ADSL85

85 Asymmetric Digital Subscriber Line (ADSL)

lines, etc.



P2P Peer-to-Peer: In the mobile messaging world, P2P messages are defined as messages exchanged between subscribers. These messages originate from and terminate to mobile subscribers’ handsets.

PDA Personal Digital Assistant: A portable computing device capable of transmitting data. This device makes possible services such as paging, data messaging, electronic mail, computing, facsimile, date book and other information handling capabilities.

PIM Personal Information Manager: Also known as a "contact manager," is a form of software that logs personal and business information, such as contacts, appointments, lists, notes, occasions, etc.

QoS QoS stands for quality of service.

RAN Radio Access Network: It is a component that exists between the mobile handset and the core network. It performs the radio functionality of the network and provides connection to the core network.

RFID Radio frequency identification (RFID) denotes a system employed to convey a unique serial number using radio waves. It does not require contact or line of sight for communication. An example of the deployment of this technology is in electronic toll collection using RFID tags.

SC-FDMA Single-carrier frequency-division multiple access (SC-FDMA) facilitates multiple access schemes and is used for assigning multiple users to a shared communication resource. While in OFDMA, subsets of the subcarriers are assigned to individual users to assist multiple access schemes, SC-FDMA enables a single-carrier transmission scheme.

SDK Software Development Kit is a set of tools used for the development of an application for a software package.

Service Revenue Service revenues are the revenues earned by MNOs through the provision of services only, i.e. revenues after deducting revenues earned from sales of equipment/products.

SIM card It is a smart card that gives GSM handset its user identity. The card is inserted into a GSM/TDMA or GSM-only mobile handset containing subscriber-related data. The card contains 18 digits code for GSM markets and 20 digits code for TDMA markets.

SIM Toolkit Subscriber Identity Module Application Toolkit: It is used by network operators to provide a user friendly interface on a subscribers’ handset to access value-added services provided by them. These applications also provide a mechanism for storing and using any service specific parameters. These applications are built within a SIM card by mobile network operators.

SIMPLE SIMPLE (Session Initiation Protocol for Instant Messaging and Presence Leveraging Extensions) is an open standard instant messaging (IM) protocol.



SIP Session Initiation Protocol or SIP is a standard multimedia and telephony protocol for initiating an interactive user session over mobile networks. The services under SIP may include call forwarding, number delivery, authentication and other telecoms applications.

Smartphone A smartphone is a mobile handset which runs on operating system (OS) software and offers some of the capabilities of a PC. It provides a standardised interface and platform for application developers and is enabled with advanced features, such as e-mail, Internet and an e-book reader. Some of the other features expected from a smartphone include built-in full keyboard/external USB keyboard, powerful microprocessors, memory, built-in modem and large screens. The major differentiating factor between a smartphone and a feature phone is that an open Operating System (OS) is present in a smartphone. The OS, through its Application Programming Interface (API), enables subscribers to install and remove third-party applications. Smartphones are better integrated with the handset's User Interface than Java applications.

SMS TV This is defined as the use of SMS for variety of applications, such as voting, teletext chat for TV programmes.

SMSC Short Message Service Centre (SMSC) provides the routing of all SMS or text messages in any mobile network. Similar to e-mail server, the SMSC handles large volumes of messages sent between two mobile handsets or a mobile handset and a software application.

Spectrum Allocation The use of radio frequency electromagnetic spectrum in a country is regulated by government bodies who then allocate spectrum to telecom companies. The license for using a particular spectrum is typically awarded following a bidding process. There are certain guidelines for using the allocated spectrum which service providers must adhere to —including a minimum quality of service, and roll-out timelines for the services for which the license has been issued.

SS7 SS7 is a global standard for telecommunications defined by ITU Telecommunication Standardisation Sector (ITU-T). The standard defines the procedures and protocol by which network elements in the public switched telephone network (PSTN) exchange information over a digital signalling network to effect mobile (cellular) and wire-line call setup, routing and control.

TDD Time Division Multiplex: This is a scheme for allowing simultaneous transmission and receiving of data at the same frequency, but with the different time slots allocated to them.

TDMA Time Division Multiple Access: A TDMA channel is a single FDMA channel divided up in time into multiple time slots. TDMA system is able to transmit multiple voice circuits per channel. Three users can take it in turn to share one radio channel. The channels can vary in bandwidth and depending on the type of system, the time slots can transmit all or part of a voice circuit. Each user's speech is stored, compressed and transmitted as a quick packet, using controlled time slots to distinguish them-hence the phrase 'time division'. It uses 30 KHz channels and a vocoder rate of 8 Kbits/sec. At the receiver, the packet is de-compressed.



TD-SCDMA Time Division Synchronous Code Division Multiple Access: It is an air interface used in UMTS mobile telecommunications networks. It has been deployed in China to replace W-CDMA technology.

Thin Client Thin Client refers to a client computer or client software in client-server architecture networks. The primary purpose of Thin Client is to convey input and output between the user and the remote server.

UMTS Universal Mobile Telecommunications System: This is the future transmission network for third generation mobile telephones, as defined by the International Telecommunications Union (ITU). In time, UMTS could reach transmission capacities of 2 Mbits/sec. (compared to 9.6 Kbits/sec. for GSM). Initially UMTS will offer rates of 144 to 384 Kbits/sec. This standard will make the development of new multimedia services having very wide bands and new uses, notably in the transmission of video, images and sound possible.

UMTS FDD Universal Mobile Telecommunication System (UMTS) Frequency Division Duplex (FDD): It is designed to generate typical data transfer rates of up to 384 Kbps and is suitable for wide area coverage due to potentially high reach.

UMTS TDD Universal Mobile Telecommunication System (UMTS) Time-Division-Depleting (TDD): UMTS TDD Mobile Broadband technology is a packet data implementation of the international 3GPP UMTS standard and is designed to work in a single unpaired frequency band. It is designed to generate typical data transfer rates of up to 2 Mbps.

USB Universal Serial Bus is a specification used to initiate data transfer between devices and a host controller.

USSD Unstructured Supplementary Service Data (USSD) is a standard for transmitting information over GSM networks. It is primarily used to access the information on prepaid balances and similar details. UTRA-FDD Universal terrestrial radio access–frequency division duplex (FDD) refers to paired frequencies in which the transmitter and receiver operate simultaneously but at different frequencies

UTRA-TDD Time division duplex (TDD) refers to unpaired frequency which is shared between uplink and downlink data rates

VAS Mobile operators offer various services which are not part of the basic voice offer. These services are availed off separately by the mobile subscribers. It includes services such as SMS, MMS, mobile e-mail, mobile games, mobile music etc. These also include services such as WAP, voicemail, call diversion, etc.

Vertical Devices Vertical devices are smartphones optimised to run mobile enterprise applications and are particularly useful for a mobile work fleet. These devices are designed to provide high-bandwidth data collection and enable employees to access and update enterprise



databases in a real-time environment. Aside from powerful processors, vertical devices are often enabled with capabilities such as a bar code scanner, digital camera, and two-way radio.

WAP Wireless Advance Protocol: WAP is a specification for a set of communication protocols to standardise the way mobile devices, such as handsets and radio transceivers, can be used for Internet access. The WAP standard is based on Internet standards (HTML, XML and TCP/IP). It consists of a Wireless Markup Language (WML) specification, a WMLScript specification, and a Wireless Telephony Application Interface (WTAI) specification. The WAP protocol is the leading standard for information services on wireless terminals such as digital handsets. Some examples of WAP for accessing information include the following: checking train timings, purchasing tickets, flight check-in, viewing traffic information, checking weather conditions, looking up stock values, looking up phone numbers, looking up addresses or looking up sport results, and there are countless more.

W-CDMA Wideband Code Division Multiple Access: The third generation standard offered to the International Telecommunication Union by GSM proponents. This is a 3G technology that increases data transmission rates in GSM systems by using CDMA instead of TDMA.

W-CDMA has become the Direct Sequence mode in the ITU's 3G specification which includes the 1x Multi-Carrier mode (1x MC) and 3x Multi-Carrier mode (3x MC). 1x MC (formerly known as cdma2000) and 3x MC comprise the 3G upgrade paths for operators already using CDMA.

WiBro Wireless Broadband: The technology was formulated by South Korean telecom industry as an equivalent to mobile WiMAX international standard.

Wi-Fi Wireless Fidelity: It is used to provide wireless local area network through enhanced interoperability of the network. Services such as Internet, VoIP phone access, and gaming, etc., can be provided using Wi-Fi.

WiMAX Worldwide Interoperability for Microwave Access: It is a telecommunication technology used for wireless data transfer over long distances through point-to-point links as well as mobile cellular type access. It is based on standards that are useful in wireless broadband access.

Wireless MAN Wireless Metropolitan Area Network: The technology is used to provide wireless network over a larger area as compared to local area network.

WLL Wireless Local Loop: It refers to the wireless devices that are situated in fixed locations. The signal transmissions occur through the air and it provides connectivity to the users in remote and isolated areas without the need for laying new cables.



Portio Research Classifications

Geographical Regions: There is sometimes a difference in the way research firms classify the major geographical territories. At Portio Research, we follow 'obvious' geographical lines, but for the record, here are the regional definitions we follow, unless otherwise stated in the report: Western Europe: Standard classification includes Iceland and various islands Central and Eastern Europe: Includes standard list of Central and Eastern European countries, and the Baltic states, Balkans, Russia, Greece and Turkey Asia Pacific: Includes Australasia, the Indian Sub-Continent, Pakistan, Afghanistan, Sri Lanka, Maldives and the Former Soviet Union Central Asian republics North America: Standard classification, including Hawaii and islands to the North Latin America: Includes all South and Central American countries including Mexico, The Caribbean and The West Indies Middle East: Includes Israel and all Middle Eastern countries East of Egypt, South of Turkey and West of Afghanistan Africa: Standard classification includes territories in Western Indian Ocean

Mobile Subscribers Generally, we count active SIMs, and we consider active as being used within 3 months, but, of course there is some room for variance, depending on what figures operators themselves publish or report to us when we interview them. When running spot-checks on operator numbers, we are governed by the figures they give us, and as we are all aware, many individuals and companies around the world count their subscribers/subscriptions by a number of different criteria. We refer to "total subscribers" for a network/country or globally, as a count of the total number of active subscriptions those networks have, and as such this can cause a slight distortion of any country-penetration rate.

Currency and Monetary Values All monetary values quoted in this report are in US Dollars as the most widely recognised benchmark internationally. The currency conversion has been done on the year average basis. Whilst researching global mobile markets, we use http://www.oanda.com/ for all currency conversion calculations.

http://www.oanda.com/�



Companies Mentioned in this Report

Company Website

3 www.three.co.uk

Acision www.acision.com

Advanced Info Service www.ais.co.th

Advent International www.adventinternational.com

Affle www.affle.co.uk

AFK Sistema www.sistema.com

Aicent www.aicent.net

Aircel www.aircel.com

Airtel www.airtel.in

Airwide Solutions www.airwidesolutions.com

Alcatel-Lucent www.alcatel-lucent.com

Aljeel Aljadeed for Technology www.aljeel.ly

Allot Communications www.allot.com

Alltel Wireless www.alltel.com

AltLogic www.altlogic.com

America Movil www.americamovil.com

Amobee www.amobee.com

Anam www.anam.com

ANTEL www.ancel.com.uy

AOL www.aol.com

Apple www.apple.com

Aricent www.aricent.com

AT&T www.att.com

Avea www.avea.com.tr

Azercell www.azercell.com

Bakrie Telecom www.bakrietelecom.com

Banglalink www.banglalinkgsm.com

BASE www.base.be

Batelco www.batelco.com.bh

Belgacom www.belgacom.be

Belize Telemedia Ltd www.belizetelemedia.net

http://www.three.co.uk/�

http://www.acision.com/�

http://www.ais.co.th/�

http://www.adventinternational.com/�

http://www.affle.co.uk/�

http://www.sistema.com/�

http://www.aicent.net/�

http://www.aircel.com/�

http://www.airtel.in/�

http://www.airwidesolutions.com/�

http://www.alcatel-lucent.com/�

http://www.aljeel.ly/�

http://www.allot.com/�

http://www.alltel.com/�

http://www.altlogic.com/�

http://www.americamovil.com/�

http://www.amobee.com/�

http://www.anam.com/�

http://www.ancel.com.uy/�

http://www.aol.com/�

http://www.apple.com/�

http://www.aricent.com/�

http://www.att.com/�

http://www.avea.com.tr/�

http://www.azercell.com/�

http://www.bakrietelecom.com/�

http://www.banglalinkgsm.com/�

http://www.base.be/�

http://www.batelco.com.bh/�

http://www.belgacom.be/�

http://www.belizetelemedia.net/�



Company Website

Bell Aliant www.bell.aliant.ca

Bell Mobility www.bell.ca

BH Telecom www.bhtelecom.ba

Bite Lietuva www.bite.lt

Blyk www.blyk.com

Boost Mobile www.boostmobile.com

Bouygues Telecom www.bouyguestelecom.fr

Brasil Telecom www.oi.com.br

BSNL www.bsnl.co.in

BT www.bt.com

Bubble Motion www.bubblemotion.com

Cable & Wireless Worldwide www.cw.com

Celcom www.celcom.com.my

Cell C www.cellc.co.za

Cellcom www.cellcom.com

Cellmania www.cellmania.com

Cell.plus www.cell-plus.net

Cellular-South www.cellularsouth.com

China Mobile www.chinamobileltd.com

China Telecom www.chinatelecom-h.com

China Unicom www.chinaunicom.com

Cisco www.cisco.com

Clearwire www.clearwire.com

Clickatell www.clickatell.com

CLOUDMARK www.cloudmark.com

Colibria www.colibria.com

Comcast www.comcast.com

Comcel www.comcel.com

CommTouch www.commtouch.com

Comverse www.comverse.com

Comviva www.comviva.com

http://www.bell.aliant.ca/�

http://www.bell.ca/�

http://www.bhtelecom.ba/�

http://www.bite.lt/�

http://www.blyk.com/�

http://www.boostmobile.com/�

http://www.bouyguestelecom.fr/�

http://www.oi.com.br/�

http://www.bsnl.co.in/�

http://www.bt.com/�

http://www.bubblemotion.com/�

http://www.cw.com/�

http://www.celcom.com.my/�

http://www.cellc.co.za/�

http://www.cellcom.com/�

http://www.cellmania.com/�

http://www.cell-plus.net/�

http://www.cellularsouth.com/�

http://www.chinamobileltd.com/�

http://www.chinatelecom-h.com/�

http://www.chinaunicom.com/�

http://www.cisco.com/�

http://www.clearwire.com/�

http://www.clickatell.com/�

http://www.cloudmark.com/�

http://www.colibria.com/�

http://www.comcast.com/�

http://www.comcel.com/�

http://www.commtouch.com/�

http://www.comverse.com/�

http://www.comviva.com/�



Company Website

Cosmote www.cosmote.gr

Cox Communications ww2.cox.com

Cricket Communications www.mycricket.com

CSL (New World Mobility) www.hkcsl.com

Dialogic Corporation www.dialogic.com

DiGi www.digi.com.my

Dilithium Networks www.dilithiumnetworks.com

du www.du.ae

Eagle Mobile www.eaglemobile.al

EMBLAZE www.emblaze.com

eMobile www.emobile.ie

EMOZE www.emoze.com

EMTEL www.emtel-ltd.com

entel www.entel.cl

enflick www.enflick.com

E-Plus www.eplus.de

Ericsson www.ericsson.com

eServGlobal www.eservglobal.com

etisalat www.etisalat.ae

Euskaltel www.euskaltel.com

F5 www.f5.com

facebook www.facebook.com

Far EasTone www.fetnet.net

FUJITSU www.fujitsu.com

Funambol www.funambol.com

Geocell www.geocell.ge

giffgaff www.giffgaff.com

Globacom www.gloworld.com

Global Message Services Ukraine www.gmsu.ua

Globatel Media www.globaltelmedia.com

Globe Telecom www.globe.com.ph

http://www.cosmote.gr/�

http://www.mycricket.com/�

http://www.hkcsl.com/�

http://www.dialogic.com/�

http://www.dilithiumnetworks.com/�

http://www.du.ae/�

http://www.eaglemobile.al/�

http://www.emblaze.com/�

http://www.emobile.ie/�

http://www.emoze.com/�

http://www.emtel-ltd.com/�

http://www.entel.cl/�

http://www.enflick.com/�

http://www.ericsson.com/�

http://www.eservglobal.com/�

http://www.etisalat.ae/�

http://www.euskaltel.com/�

http://www.f5.com/�

http://www.facebook.com/�

http://www.fetnet.net/�

http://www.fujitsu.com/�

http://www.funambol.com/�

http://www.geocell.ge/�

http://www.giffgaff.com/�

http://www.gloworld.com/�

http://www.gmsu.ua/�

http://www.globaltelmedia.com/�

http://www.globe.com.ph/�



Company Website

GLOBECOMM www.globecommsystems.com

Go Mobile www.go.com.mt

Good www.good.com

Google www.google.com

HP www.hp.com

HTC www.htc.com

Huawei www.huawei.com

IBM www.ibm.com

icq www.icq.com

Idea Cellular www.ideacellular.com

Impetus Technologies www.impetus.com

Indostat www.indostats.com

InfoGin www.infogin.com

InfoSonics www.infosonics.com

INQ www.inqmobile.com

Interop Technologies www.interoptechnologies.com

iseemedia www.iseemedia.com

Iusacell www.iusacell.com.mx

Jajah www.jajah.com

Jersey Telecom www.jerseytelecoms.com

jinny www.jinny.ie

John's www.johnsphones.com

KASPERSKY www.kaspersky.com

Kcell www.kcell.kz

KDDI www.kddi.com

Kik Messenger www.kik.com

Korea Telecom www.kt.com

kpn www.kpn.com

Kyivstar www.kyivstar.ua

LG www.lge.com

LG Telecom www.lgtelecom.com

http://www.globecommsystems.com/�

http://www.go.com.mt/�

http://www.good.com/�

http://www.google.com/�

http://www.hp.com/�

http://www.htc.com/�

http://www.huawei.com/�

http://www.ibm.com/�

http://www.icq.com/�

http://www.ideacellular.com/�

http://www.impetus.com/�

http://www.indostats.com/�

http://www.infogin.com/�

http://www.infosonics.com/�

http://www.inqmobile.com/�

http://www.interoptechnologies.com/�

http://www.iseemedia.com/�

http://www.iusacell.com.mx/�

http://www.jajah.com/�

http://www.jerseytelecoms.com/�

http://www.jinny.ie/�

http://www.johnsphones.com/�

http://www.kaspersky.com/�

http://www.kcell.kz/�

http://www.kddi.com/�

http://www.kik.com/�

http://www.kt.com/�

http://www.kpn.com/�

http://www.kyivstar.ua/�

http://www.lge.com/�

http://www.lgtelecom.com/�



Company Website

life;) www.life.com.by

m:tel www.mtel-cg.com

M1 Singapore www.m1.com.sg

MAGTI www.magticom.ge

Maroc Telecom www.iam.ma

maxis www.maxis.com.my

mcTel www.mctel.net

Meditel www.meditelecom.ma

MegaFon www.megafon.ru

melita www.melita.com

MERITECH www.meritech.com

meteor www.meteor.ie

metro PCS www.metropcs.com

Microsoft www.microsoft.com

mig 33 www.mig33.com

miyowa www.miyowa.com

Mobily www.mobily.com.sa

MOBINEX www.mobinex.com

MobiNil www.mobinil.com

MOBIVOX www.mobivox.com

MOBIXELL www.mobixell.com

Moldcell www.moldcell.md

Momail Systems www.momailsystems.com

Motorola www.motorola.com

Movistar www.movistar.com

Mtel www.mtel.bg

MTN www.mtn.co.za

MTN Irancell www.irancell.ir

MTNL www.mtnl.net.in

MTS www.mtsgsm.com

MVL www.mvlmobile.in

http://www.life.com.by/�

http://www.mtel-cg.com/�

http://www.m1.com.sg/�

http://www.magticom.ge/�

http://www.iam.ma/�

http://www.maxis.com.my/�

http://www.mctel.net/�

http://www.meditelecom.ma/�

http://www.megafon.ru/�

http://www.melita.com/�

http://www.meritech.com/�

http://www.meteor.ie/�

http://www.metropcs.com/�

http://www.microsoft.com/�

http://www.mig33.com/�

http://www.miyowa.com/�

http://www.mobily.com.sa/�

http://www.mobinex.com/�

http://www.mobinil.com/�

http://www.mobivox.com/�

http://www.mobixell.com/�

http://www.moldcell.md/�

http://www.momailsystems.com/�

http://www.motorola.com/�

http://www.movistar.com/�

http://www.mtel.bg/�

http://www.mtn.co.za/�

http://www.irancell.ir/�

http://www.mtnl.net.in/�

http://www.mtsgsm.com/�

http://www.mvl.in/�



Company Website

MXit www.mxit.com

mySpace www.myspace.com

Nawras Telecom www.nawras.om

NEC www.nec.com

NetCom www.netcom.no

network norway www.networknorway.no

Netxcell www.netxcell.com

Neustar www.neustar.biz

NewBay www.newbay.com

Nielsen www.nielsen.com

Nimbuzz www.nimbuzz.com

Nokia www.nokia.com

Nokia Siemen Network www.nokiasiemensnetworks.com

nTelos www.ntelos.com

NTT Corp www.ntt.co.jp

O2 www.o2.co.uk

Oman Mobile www.omantel.net.om

OmniTel www.omnitel.lt

Openmind Networks www.openmindnetworks.com

Openwave www.openwave.com

Optibase www.optibase.com

Optimus www.optimus.pt

Optus www.optus.com.au

Oracle www.oracle.com

Orange www.orange.com

Orascom Telecom www.orascomtelecom.com

Outremer Telecom www.outremer-telecom.fr

PCCW www.pccw.com

Plus www.plus.pl

Pontomobi www.pontomobi.com.br

ProMonte www.promonte.com

http://www.mxit.com/�

http://www.myspace.com/�

http://www.nawras.om/�

http://www.nec.com/�

http://www.netcom.no/�

http://www.networknorway.no/�


http://www.neustar.biz/�

http://www.newbay.com/�

http://www.nielsen.com/�

http://www.nimbuzz.com/�

http://www.nokia.com/�

http://www.nokiasiemensnetworks.com/�

http://www.ntelos.com/�

http://www.ntt.co.jp/�

http://www.o2.co.uk/�

http://www.omantel.net.om/�

http://www.omnitel.lt/�

http://www.openmindnetworks.com/�

http://www.openwave.com/�

http://www.optibase.com/�

http://www.optimus.pt/�

http://www.optus.com.au/�

http://www.oracle.com/�

http://www.orange.com/�

http://www.orascomtelecom.com/�

http://www.outremer-telecom.fr/�

http://www.pccw.com/�

http://www.plus.pl/�

http://www.pontomobi.com.br/�

http://www.promonte.com/�



Company Website

Proximus www.proximus.be

Qtel www.qtel.com.qa

Qualcomm www.qualcomm.com

Red Hat www.redhat.com

Reliance Communications www.rcom.co.in

Retriever Communications www.retrievercommunications.com

RIM www.rim.com

Rogers Wireless www.rogers.com

Rummble www.rummble.com

Safaricom www.safaricom.co.ke

Samsung www.samsung.com

Sandvine www.sandvine.com

Sanyo www.sanyo.com

Savvis www.savvis.net

SETAR www.setar.aw

SEVEN www.seven.com

SFR www.sfr.fr

Si.Mobil www.simobil.si

Sicap www.sicap.com

Siemens www.siemens.com

Silverstreet www.silverstreet.com

SINA Mobile www.mobile.sina.com.cn

SingTel www.singtel.com

SK Telecom www.sktelecom.com

Sky www.sky.com

Skype www.skype.com

Smart Communications www.smart.com.ph

Softbank www.softbank.jp

Sony Ericsson www.sonyericsson.com

Soprano www.soprano.com.au

Sprint Nextel www.sprint.com

http://www.proximus.be/�

http://www.qtel.com.qa/�

http://www.qualcomm.com/�

http://www.redhat.com/�

http://www.rcom.co.in/�

http://www.retrievercommunications.com/�

http://www.rim.com/�

http://www.rogers.com/�

http://www.rummble.com/�

http://www.safaricom.co.ke/�

http://www.samsung.com/�

http://www.sandvine.com/�

http://www.sanyo.com/�

http://www.savvis.net/�

http://www.setar.aw/�

http://www.seven.com/�

http://www.sfr.fr/�

http://www.simobil.si/�

http://www.sicap.com/�

http://www.siemens.com/�

http://www.silverstreet.com/�

http://www.mobile.sina.com.cn/�

http://www.singtel.com/�

http://www.sktelecom.com/�

http://www.sky.com/�

http://www.skype.com/�

http://www.smart.com.ph/�

http://www.softbank.jp/�

http://www.sonyericsson.com/�

http://www.soprano.com.au/�

http://www.sprint.com/�



Company Website

Starcomm www.starcomms.com

StarHub www.starhub.com

STC www.stc.com.sa

Sudani www.sudani.sd

Swisscom www.swisscom.ch

Sybase 365 www.sybase.com

Symsoft www.symsoft.com

Synchronica www.synchronica.com

Syniverse www.syniverse.com

Taiwan Mobile www.taiwanmobile.com

Tango telecom www.tango.ie

Tata Teleservices www.tatateleservices.com

TDC www.tdc.com

Tecnotree www.tecnotree.com

Tekelec www.tekelec.com

Telcel www.telcel.com

Tele2 www.tele2.com

Telecom Italia www.telecomitalia.com

Telecom New Zealand www.telecom.co.nz

Telecom Personal www.personal.com.ar

TeleCommunication Systems www.telecomsys.com

TeleDNA www.teledna.com

Telefonica www.telefonica.com

Telekom Austria www.telekom.at

Telenity www.telenity.com

Telenor www.telenor.com

Telfort www.telfort.nl

Telia www.telia.se

Teliasonera www.teliasonera.com

Telkomsel www.telkomsel.com

Telmex www.telmex.com

Telstra www.telstra.com.au

http://www.starcomms.com/�

http://www.starhub.com/�

http://www.stc.com.sa/�

http://www.sudani.sd/�

http://www.swisscom.ch/�

http://www.sybase.com/�

http://www.symsoft.com/�

http://www.synchronica.com/�

http://www.syniverse.com/�

http://www.taiwanmobile.com/�

http://www.tango.ie/�

http://www.tatateleservices.com/�

http://www.tdc.com/�

http://www.tecnotree.com/�

http://www.tekelec.com/�

http://www.telcel.com/�

http://www.tele2.com/�

http://www.telecomitalia.com/�

http://www.telecom.co.nz/�

http://www.personal.com.ar/�

http://www.telecomsys.com/�

http://www.teledna.com/�

http://www.telefonica.com/�

http://www.telekom.at/�

http://www.telenity.com/�

http://www.telenor.com/�

http://www.telfort.nl/�

http://www.telia.se/�

http://www.teliasonera.com/�

http://www.telkomsel.com/�

http://www.telmex.com/�

http://www.telstra.com.au/�



Company Website

TELUS Mobility www.telusmobility.com

Tencent www.tencent.com

TIGO www.tigo.com.co

TiVo www.tivo.com

Time Warner Cable www.timewarnercable.com

TMN www.tmn.pt

T-Mobile www.t-mobile.com

Togocel www.togocel.tg

Toshiba www.toshiba.com

TSTT www.tstt.co.tt

Turk Telecom www.turktelekom.com.tr

Turkcell www.turkcell.com

Tus Telekom www.tustelekom.si

Twitter www.twitter.com

TynTec www.tyntec.com

US Cellular www.uscellular.com

Velcom www.velcom.com

Verizon Wireless www.verizonwireless.com

Viaero www.viaero.com

Vimplecom www.vimpelcom.com

VIP Mobile www.vipmobile.rs

Virgin Mobile www.virginmobile.com

Vivo www.vivo.com.br

Vodacom www.vodacom.co.za

Vodafone www.vodafone.com

Wataniya Telecom www.wataniya.com

Webaroo Technology (India) Private Limited www.smsgupshup.com

Wind www.wind.it

XL Axiata www.xl.co.id

Yahoo www.yahoo.com

Zain www.zain.com

ZTE www.zte.com.cn

http://www.telusmobility.com/�

http://www.tencent.com/�

http://www.tigo.com.co/�

http://www.tivo.com/�

http://www.timewarnercable.com/�

http://www.tmn.pt/�

http://www.t-mobile.com/�

http://www.togocel.tg/�

http://www.toshiba.com/�

http://www.tstt.co.tt/�

http://www.turktelekom.com.tr/�

http://www.turkcell.com/�

http://www.tustelekom.si/�

http://www.twitter.com/�

http://www.tyntec.com/�

http://www.uscellular.com/�

http://www.velcom.com/�

http://www.verizonwireless.com/�

http://www.viaero.com/�

http://www.vimpelcom.com/�

http://www.vipmobile.rs/�

http://www.virginmobile.com/�

http://www.vivo.com.br/�

http://www.vodacom.co.za/�

http://www.vodafone.com/�

http://www.wataniya.com/�

http://www.smsgupshup.com/�

http://www.wind.it/�

http://www.xl.co.id/�

http://www.yahoo.com/�

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About the Authors Purnadeep Chakraborty Purnadeep Chakraborty is working as a Manager with Portio Research and Evalueserve. Over the past six years, he has worked on various projects in the telecom domain. He graduated from Gauhati University, Guwahati, India. He has been working with Portio Research and Evalueserve since December 2004. Sudhir Kumar Sudhir Kumar is working as a Senior Business Analyst with Portio Research and Evalueserve. He graduated from NIT Jalandhar, India. He has been working with Portio Research and Evalueserve since April 2010. Radhika Goel Radhika Goel is working as a Senior Business Analyst with Portio Research and Evalueserve. She post-graduated in Business Management from IMI, India. She has been working with Portio Research and Evalueserve since April 2010. Venu Gopal Venu Gopal is working as a Senior Business Analyst with Portio Research and Evalueserve. He graduated from ICTM, India. He has been working with Portio Research and Evalueserve since September 2010. John White John White has been Editor and contributing author for this report. John is Business Development Director for Portio Research and has over 18 years experience in the technical publishing industry. Working in the IT sector previously and in the telecoms industry for the last 11 years, John has extensive experience in the mobile sector.



Also available from Portio Research Limited

Portio Research Ltd is a UK-based research company focussing on the mobile space, providing reports, handbooks, directories and database products. New and Best Selling Reports include: If you have any questions or if we can be of any assistance to you, please contact us by e-mail: [email protected] Copyright 2011. Portio Research Limited 2011 www.portioresearch.com

Smartphone Futures 2011-2015 Significant developments in the worldwide handset market over the past few years have radically altered the shape and future course of this industry. This essential new report examines the changing scenario of the mobile handset industry and the exciting emergence of the Smartphone segment, including the evolution of the mobile handset industry and its changing dynamics induced by the growth of smartphone sales. We also look at the value chain related to products and services pertaining to the smartphone market, and study key developments in the smartphone market, highlighting the repositioning of smartphone vendors with the market entry of challengers for Nokia and RIM, including Apple, HTC, and other vendors offering increasingly-popular Android-based devices. The report includes an overview of the major smartphone operating systems (OS) and the applications market, looking at App Stores and other factors affecting the overall development of the growing high-end handset market. Please click here for more details.

Mobile Applications Futures 2010-2015: Without doubt one of the hottest topics within the mobile space, the exciting worldwide mobile applications market is comprehensively assessed in this new market study. With detailed analysis and growth forecasts for mobile application users, downloads and revenues, this 121-page report examines the evolution, current state and future potential of mobile applications, and much more. This research also includes: key strategies adopted by app stores and associated business models to monetise the apps market; drivers and inhibitors in the uptake of mobile apps; supporting case studies and profiles of successful mobile apps and application stores; embedded adverts, in-app payments, the various types of mobile apps and their popularity, the value chain of mobile apps, and the important role of smartphones in the uptake of mobile apps. Looking beyond the hype surrounding mobile apps, this report reveals a worldwide market with legitimately huge potential for its various stakeholders to exploit, and which will generate revenues in excess of USD 23 billion by end-2015. Please click here for more details.

Worldwide Mobile Industry Handbook 2011-2015 Serving as an invaluable guide for those in and outside the mobile space to enable better understanding of the worldwide mobile market, this detailed and comprehensively updated new handbook offers you all the essential market data required for business strategy and planning purposes, including: in-depth subscriber growth forecasts for leading countries, subscriber figures for key network operators across all major geographies, market share data, quarterly handset shipment figures, handset and infrastructure vendor profiles, analysis of popular handsets/smartphones, ARPU data, churn figures and so much more. Other report features include an introduction with performance comparisons of mobile vs. other media and major industries, to demonstrate how massive mobile truly is, and briefings on the four major aspects of the mobile industry: subscribers, revenues, handsets and infrastructure. This essential 187-page market report will act as a touchstone to refer back to again and again for meetings, presentations and business plans. Please click here for more details.


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