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Mobile:

Strategies for Driving Data ARPU

Portio Research
Market Study  July 2008

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 Key features of this essential new market study


 Read 20 exciting new case studies from MNOs around the world
 Understand the go-to-market strategies for leading mobile data services
 Learn from best-in-class non-voice mobile services
 Examine how some MNOs are achieving world-leading high data ARPU
 Case studies from Orange France, Etisalat (UAE), China Mobile, KDDI (Japan), 3 Italia and more
 Includes a second bonus report FREE!
 Analyze how operators are driving non-voice service adoption the go-to-market strategies for leading mobile data services
 Learn from best-in-class non-voice mobile services
 Examine how some MNOs are achieving world-leading high data ARPU
 Case studies from Orange France, Etisalat (UAE), China Mobile, KDDI (Japan), 3 Italia and more
 Includes a second bonus report FREE!
 Analyze how operators are driving non-voice service adoption


This exciting new report identifies the successful strategies adopted by mobile network operators in advanced countries to drive data ARPU from the following data services:


Messaging services
- SMS
- Mobile e-mail
- Mobile IM


Non-messaging mobile services
- Mobile music
- Mobile games
- Mobile TV and video
- Mobile user generated content
- Mobile commerce
- Mobile portals


This report analyses the strategies that have been adopted by operators in both advanced and developing countries to make their data services successful and, thereby, drive up data ARPU. We have also covered the strategies adopted by a mobile handset vendor to push its mobile handsets, as they ultimately led to increased data ARPU for operators. For each case study, we have identified success indicators that explain why each of these cases has been profiled. We have also provided a brief introduction about the service around which the case has been developed. By analysing the strategies that have been adopted by operators and other players, we have highlighted the essential success factors for each of the data services.


The report also covers mobile data service trends in developing countries and the successful strategies adopted by mobile network operators in these countries to drive growth in mobile data ARPU.


This new report is the third instalment in our ‘Growing Data Services Series’ and follows on very specifically from our previous report titled ‘Strategies for Creating End-User Demand for Mobile Data Services’, which analysed the strategies adopted by the most successful operators worldwide for various mobile data services. That previous report also provided certain best practice recommendations for making a data service successful. This new report highlights recommendations made in the earlier study and compares them with examples of actual strategies adopted by mobile operators to make a data service successful. If you purchase this new study, we will include a copy of the previous study as a free bonus.


Case Studies in this all-new report include:


> O2, UK: SMS
> US market: SMS
> Japan: Consumer mobile email
> AT&T, US: Enterprise mobile email
> SK Telecom, South Korea: Mobile IM
> 3, UK: Mobile IM
> Orange, UK: Mobile music downloads
> Verizon Wireless, US: Mobile music downloads
> Verizon Wireless, US: Mobile games
> NTT DoCoMo, Japan: Mobile credit card service
> KDDI, Japan: Mobile web portal
> SK Telecom, South Korea: Mobile Social Networking
> 3, UK: Mobile Video Sharing
> O2, UK: Mobile Video Sharing
> 3, Italy: Broadcast mobile TV
> Orange, France: Streaming mobile TV
> Etisalat, UAE: Streaming mobile TV
> Handset case study - iPhone from Apple: Effects on data ARPU
> Bharti Airtel, India: Caller ringback tones
> Vodafone, Egypt: Voice SMS
> Vodacom, South Africa: Ad-funded Missed Call alerts
> Vodafone, Egypt: Missed Call alerts
> Vodafone and Safaricom, Kenya: Mobile banking
> China Mobile, China: Mobile IM


Looking at the growth of non-voice mobile services from 2006 to 2013, we see how mobile data revenues, expressed as a percentage of total mobile services revenues, are growing form just 16 percent in 2006 to reach over 25 percent in 2012. As data service become increasingly important, operators and other players in the value chain must learn best practice operating procedures from class-leading services, and this report delivers those best practice procedures to you in a concise, easy-to-use format. Building on our previous report, this new report refers back repeatedly to the findings from 'Strategies for Creating End-User Demand for Mobile Data Services', re-confirming our earlier conclusions and building and refining new best practice recommendations based on the new case studies we have conducted for this study. This builds into an excellent catalogue of best practice recommendations drawn from our analysis and also from real-world market experience.


Table of Contents


Contents
Introduction 7
Strategies for Creating End-User Demand for Mobile Data Services (SCEUD): A Brief Synopsis  8
The Worldwide Mobile Market 11
Mobile Data Services—A Worldwide Overview 16
Mobile Data Services—A Worldwide Overview 17
Mobile Messaging Services  17
Mobile Entertainment Services  18
Other Data Services  20
Evolving Trends in the Worldwide Mobile Data Services Market  21
The Success of Mobile Data Services – Lessons from the Past  22
Short Messaging Service 24
Short Messaging Service 25
Case Study 1: SMS, O2 UK 26
Case Study 2: The Growth of SMS in the US  31
Mobile E-mail  37
Case Study 1: The Success of Consumer Mobile E-mail in Japan  37
Case Study 2: The Success of Enterprise Mobile E-mail in the US – AT&T Mobility  40
Mobile Instant Messaging   44
Case Study 1: NateOn (Mobile Instant Messaging)—SK Telecom  44
Case Study 2: Windows Live Messenger & Yahoo Messenger—3 UK 46
Mobile Music—Full-track Downloads  50
Case Study 1: Orange Player—Orange UK 51
Case Study 2: V-CAST Music—Verizon Wireless 56
Mobile Gaming   63
Case Study: Mobile Gaming—Verizon Wireless  64
Mobile Payments  71
Case Study 1: DCMX (Mobile Credit Card Service)—NTT DoCoMo  72
Mobile Internet  80
Case Study 1: EZWeb—KDDI   81
Mobile User-Generated Content  89
Case Study 1: Mobile CyWorld (Mobile Social Networking—SK Telecom) 90
Case Study 2: EyeVibe (Mobile Video Sharing) — 3 UK and O2 UK  96
Mobile TV  99
Case Study 1: Broadcast (DVB-H) Mobile TV—3 Italia  99
Case Study 2: Streaming Mobile TV— Orange France  107
Case Study 3: Streaming Mobile TV Service—Etisalat, UAE  114
Role of Handsets in Driving Data ARPU   121
Case Study 1: Apple iPhone and Data ARPU  122
Mobile Data Services in Emerging Markets  131
Case Study 1: Caller Ringback Tone (Hello Tunes) — Bharti Airtel (India)  133
Case Study 2: Voice SMS (Minicall)—Vodafone Egypt  137
Case Study 3: Ad-funded Missed Call Alert (Please Call Me) — Vodacom (South Africa) and
Vodafone (Egypt)  140
Case Study 4: Mobile Banking (M-PESA) — Vodafone and Safaricom (Kenya)   144
Case Study 5: Mobile Instant Messaging (Fetion)—China Mobile  149
The Future of Mobile Data Services in Emerging Markets  154
Conclusion   157
Appendices   162
Glossary     163
Portio Research Classifications     173
Companies Mentioned in this Report  174
About the Authors  176


 





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