Abstract
Pyramid Research expects that revenue from global mobile data services, despite lower revenue per user, will surpass that of fixed Internet access services in 2008, primarily due to its larger user base. In some parts of the world, mobile phones provide the only medium for Internet access; in others, demand for accessing any content on any device at any time is growing.
In its newest report, Mobile Data Best Practices: Positioning and Revenue Opportunities in Emerging and Developed Markets , Pyramid Research examines mobile data services, revenue trends and drivers for adoption, and compares the market dynamics and opportunities in emerging and developed countries.
This report will allow you to assess:
- The size of the mobile data opportunity.
- Markets and regions that will have the largest and fastest growing mobile data revenue.
- The impact of 3G on mobile data uptake.
- The key differences in the mobile data business models of developed and emerging markets.
- Services that will drive data revenue in developed and emerging markets over the next five years.
- Keys to position mobile data services optimally.
- How operators should price mobile data.
Key questions answered
- How big is the mobile data opportunity?
- Which markets and regions will have the largest and fastest growing mobile data revenue?
- What is the impact of 3G on mobile data uptake?
- What are the key differences in the mobile data business models of developed and emerging markets?
- Which services will drive data revenue in developed and emerging markets over the next five years?
- What are the keys to positioning mobile data services optimally?
- How should operators price mobile data?
Target audience
Operators
This report allows you to identify successful strategies for positioning, pricing and promoting your mobile data offerings, to quantify market demand for mobile data over the next five years and to benchmark performance against regional averages and other key players.
Equipment and application providers
This report helps you evaluate business opportunities in the mobile data space across the world. Use operator best practices and benchmarks to successfully position your equipment and services as well as to enhance your value proposition.
Financial services, investment firms
This report provides a thorough grounding in the salient issues facing mobile data today and charts a means of generating sizeable revenue. Financial institutions need to understand the dynamics of mobile data consumption in different market environments to assess upcoming opportunities in the sector.
Companies mentioned in this report
- 3 Australia
- 3 Ireland
- 3 Italia
- 3 UK
- Alltel
- Ancel
- Apple
- AT&T
- AT&T Mobility
- Celcom (Malaysia)
- CTI Movil
- Dailymotion
- Digi
- Digitel (Venezuela)
- eBay
- ESPN
- France Telecom
- Globe Telecom
- Hutchison 3G
- Hutchison Whampoa
- In&Phone
- KDDI
- KDDI au
- KT Freetel
- KTF (Korea Telecom Freetel)
- LG Electronics
- M6
- Malaysia Telecom
- Maxis Communications
- Mobily
- Movistar
- Movistar Uruguay
- MySpace
- NetCom
- Nokia
- NTT DoCoMo
- O2 Ireland
- O2 UK
- Opel
- Optus
- Orange France
- Orb
- Palm Inc
- Pelita Nasi Kandar
- Play (P4 Sp)
- Samsung
- Saudi Telecom Co (STC)
- SFR France
- SK Telecom
- Slingbox
- Smart Communications
- SoftBank
- South Korea Telecom (SKT)
- Sports Illustrated
- Sprint Nextel
- Streamyx
- Sun Cellular
- Tele 2
- Telecom Italia Mobi
Table of Contents
- Table of contents
- Table of exhibits
- Acronyms and abbreviations
- Companies mentioned in this report
- Executive summary
Section 1: Mobile data adoption trends and outlook in emerging and developed markets
- 1.1 Mobile data access presents a larger opportunity than fixed Internet access
- 1.2 Mobile data revenue trends in emerging and developed markets
- 1.3 Largest developed and emerging mobile data markets
- 1.4 Fastest growing opportunities are in emerging markets
- The US leads the developed markets in mobile data revenue growth
- 1.5 Data users in developed markets spend five times more than those in
emerging ones
- Data' s share of ARPS is lower in emerging markets, but growth in emerging markets is still consistent with that in developed markets
- 1.6 Data ARPS doubles with 3G
- MNOs with the highest data ARPS
- The impact of 3G on ARPS in emerging markets
- 1.7 SMS to continue to drive data ARPS in emerging markets, less in
developed ones
- The impact of SMS bundles
- The cannibalization effect of SMS
- CASE STUDY: In Uruguay, operators promote 3G services in response to cannibalization effect of SMS on MOU
- 1.8 Uptake of non-messaging data services widens the gap between
developed and emerging markets
- Internet browsing - the killer app?
- Non-messaging data service revenue to reach $170bn
Section 2: Building successful mobile data business models worldwide
- 2.1 What works: positioning strategies for mobile data
- Technology leadership
- Market segmentation for mobile data services
- Finding content that sells
- Mobile data as extension of fixed broadband
- CASE STUDY: Orange innovates with mobile TV
- Mobile-enabling business processes
- The iPhone shows the way forward for devices
- Do emerging markets need mobile data?
- Seizing opportunities where fixed networks can' t
- Marketing push, higher acquisition costs and the impact on revenue
- 2.2 Mobile data pricing schemes at a make-or-break point
- Bundles and social networking stimulate revenue growth
- CASE STUDY: iPhone-like discounted bundles increase adoption
- Flat-rate pricing - the upside to mobile data adoption?
- CASE STUDY: 3 UK' s flat rates and all-3G strategy produce highest data ARPS
Section 3: Mobile data operator best practices
- 3.1 US CASE STUDY: An aggressive 3G strategy has helped Verizon
Wireless beat its competitors in data
- Positioning strategies: Aggressive rollouts, popular content and strong branding
- Pricing: more plans and bundles
- Outcome: Data revenue is driving growth and strong performance
- 3.2 AUSTRALIA CASE STUDY: Telstra sees success with strategy for
migrating customers to 3G and selling non-SMS data services
- Positioning strategies: Going the extra mile to raise 3G adoption
- Pricing: More plans and options for households and mobile subscribers
- Outcome: Data revenue growth from promoting 3G is not free, but it will pay off
- 3.3 PHILIPPINES CASE STUDY: Smart Communications uses low-end strategy
to promote SMS and sell more data than voice
- Positioning strategies: messaging, messaging and more messaging
- Pricing: buckets of low-cost messages with short durations
- Outcome: Low-cost messaging bundles boost revenue and sustain higher margin
- 3.4 MALAYSIA CASE STUDY: An aggressive data strategy differentiates
Celcom from market share leader
- Positioning strategies: First-to-market and innovative, differentiated data services
- Pricing: Differentiating with convergent service, better values and options based on usage
- Outcome: Rising earnings despite aggressive marketing tactics
- Appendix
- Types of messaging
- Non-messaging data services
- Related resources
Table of exhibits
- Exhibit 1: Declining voice revenue per minute in emerging and developed markets
- Exhibit 2: Global fixed Internet access revenue vs. mobile data revenue
- Exhibit 3: Mobile data revenue outlook in developed and emerging markets, 2007-2012
- Exhibit 4: Mobile data revenue outlook by region, 2007-2012
- Exhibit 5: Largest 10 developed countries for mobile data revenue
- Exhibit 6: Largest 10 emerging countries for mobile data revenue
- Exhibit 7: Top 10 fastest growing emerging markets 2007-2012
- Exhibit 8: Top 10 fastest growing developed markets from 2007 to 2012
- Exhibit 9: Data ARPS in developed and emerging markets
- Exhibit 10: Positive correlation between data ARPS and GDP per capita
- Exhibit 11: Data as a percentage of overall ARPS in developed and emerging markets
- Exhibit 12: Mobile data revenue as a percentage of total mobile service revenue
- Exhibit 13: Correlation of data ARPS with the number of 3G terminals in 50 markets globally
- Exhibit 14: Top MNOs for data ARPS, 2007 and 2012
- Exhibit 15: Top five emerging-market operators for mobile data ARPS in 2007
- Exhibit 16: SMS as a percentage of data ARPS in developed and emerging markets
- Exhibit 17: SMS revenue in emerging and developed markets
- Exhibit 18: Average SMS usage per subscriber per month: Emerging vs. developed markets
- Exhibit 19: SMS revenue as a percentage of data revenue by region
- Exhibit 20: SMS usage per subscriber per month by region in 2007
- Exhibit 21: Minutes of use per subscriber per month in emerging and developed markets
- Exhibit 22: SMS and voice usage per month: Uruguay vs. average in Latin America
- Exhibit 23: 3G alternatives offered by mobile operators in Uruguay
- Exhibit 24: ARPS breakdown into voice and data in emerging and developed markets, 2012
- Exhibit 25: Non-messaging revenue breakdown in 2012: Emerging vs. developed markets
- Exhibit 26: Number of 3G subscribers and 3G subscriber penetration in emerging and developed markets
- Exhibit 27: Verizon Wireless' and AT&T Mobility' s 3G and non-3G subscribers
- Exhibit 28: Data ARPS at Mobily and STC in Saudi Arabia
- Exhibit 29: Customer segments for mobile data services
- Exhibit 30: Data ARPS at Orange France
- Exhibit 31: Mobile TV usage among subscribers of Orange France
- Exhibit 32: Impact of mobile business processes on investment returns at Vodafone UK
- Exhibit 33: Breakdown of net mobile business customer additions in the UK, 2007
- Exhibit 34: Sprint Nextel' s mobile data applications for businesses
- Exhibit 35: Net subscriber additions at AT&T Mobility and Verizon Wireless
- Exhibit 36: Selling, general and administrative expenses as a percentage of revenue at AT&T Wireless and SK Telecom
- Exhibit 37: SMS pricing schemes
- Exhibit 38: SMS bundle pricing in select markets, 1Q2008
- Exhibit 39: SMS revenue and usage trends at Verizon Wireless
- Exhibit 40: Number of text votes for American Idol on AT&T' s network
- Exhibit 41: iPhone-related voice and data bundles compared with stand-alone voice plans
- Exhibit 42: Correlation of voice and Internet bundle adoption with premium for mobile Internet connectivity
- Exhibit 43: Mobile data ARPS and fixed broadband average revenue per household
- Exhibit 44: Prices of mobile broadband via laptops and handsets, AT&T Mobility and T-Mobile UK
- Exhibit 45: US and UK average fixed-broadband tariff and restricted mobile broadband plans
- Exhibit 46: 3 UK' s mobile data packages, plans and prices
- Exhibit 47: US mobile data ARPS and revenue trends, 2003-2007
- Exhibit 48: 3G market shares in the US, 2007
- Exhibit 49: Verizon Wireless' data services
- Exhibit 50: Verizon Wireless data bundle pricing
- Exhibit 51: Voice, unlimited Internet and messaging prices for mass-market and business customers
- Exhibit 52: Verizon Wireless data revenue and EBITDA margins, 2003-2007
- Exhibit 53: Percentage of subscribers using 3G at Telstra and select operators in developed markets
- Exhibit 54: Number of base stations in next-generation networks of Australian operators
- Exhibit 55: Telstra' s mobile and portable wireless broadband plans for PCs and laptops
- Exhibit 56: Mobile broadband pricing by Telstra and Optus
- Exhibit 57: Data revenue breakdown for H2 2007 at Telstra and Optus
- Exhibit 58: Data ARPS as percentage of total ARPS for Filipino operators and global averages
- Exhibit 59: Total subscribers at Smart Communications and Sun Cellular
- Exhibit 60: Smart' s Talk ‘N Text promotional texting plans
- Exhibit 61: Smart' s prepaid net additions
- Exhibit 62: Text messages on Smart' s network and revenue per text message
- Exhibit 63: Mobile data ARPS, Malaysia, 2003-2007
- Exhibit 64: Celcom' s promotions and select data services
- Exhibit 65: Celcom' s mobile Internet plans
- Exhibit 66: Unlimited-usage mobile broadband plans at Celcom and Maxis
- Exhibit 67: Celcom EBITDA margins, Q3 2006 to Q4 2007
