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Market Study
Published: May 2010
Pages: 159
Tables: 111
From: GBP 1595.00   Buy Now!
Research from: Portio Research
Sector: Mobile Content & Apps

Key features of this essential new market study:

• Analyse best practice go-to-market strategies for non-voice mobile services
  
• Understand how to develop class-leading mobile data services
  
• Examine mobile messaging, mobile broadband and mobile applications
  
• Read exciting ‘best of breed’ strategy case studies from MNOs around the world
  
• Learn from class-leading mobile data services
  
• Review key growth drivers and inhibitors
  
• Plan using market sizing, and five-year forecasts to 2014
  
• Benefit from worldwide, regional and company-level analysis
  
• Understand the evolution of mobile data services
  
• Review key technologies and data transfer rates, and high speed network deployments
  
• Evaluate how operators are driving non-voice service adoption
  
• Expose the factors behind a successful data service
  
• Identify strategies to cope with the increasing demand data services place on networks
  
• Receive a second bonus report FREE – the previous report in this strategy series
  
• All this and more in this must-have 159 page report

          Click here for full details and sample contents of Strategies for Driving Mobile Data and Broadband Adoption

This new report – the fourth in our series exploring the evolution of non-voice mobile services and how MNOs effectively deliver those services to mobile consumers – continues our analysis of how class-leading mobile data services are being delivered to consumers around the world. In this brand-new study, we show you the strategies mobile network operators have used to create best-of-breed services in messaging, mobile broadband and mobile applications.

In the following twelve fact-filled chapters, this exciting new study identifies the successful strategies employed by mobile network operators and others to drive data usage:

• Introduction 
  
• Worldwide Mobile Market 
  
• Worldwide Data Services Market
  
• Worldwide Mobile Messaging
  
• Mobile Messaging – Strategy Case Studies 
  
• Mobile Broadband – Introduction and Basics
  
• Mobile Broadband – State of the Markets
  
• Mobile Broadband – Strategy Case Studies
  
• Mobile Applications – Introduction and Market Size
  
• Mobile Applications – Strategy Case Studies 
  
• Conclusion
  
• Appendices (including full glossary of terms)

MNOs need to keep a watchful eye on revenues. As voice has become a commodity product, so now the cash-cow that is SMS looks threatened with a future of rising demand against flattening revenues. Advanced data services, including mobile broadband, offer many MNOs their last great high-margin opportunity.

Within the worldwide data services market, mobile broadband is one area where a number of exciting changes are taking place. Mobile broadband services—which were until recently looked upon as a luxury for subscribers in advanced mobile markets—have started to spread their presence in to almost every wireless market worldwide. MNOs worldwide have taken various initiatives to cater to the increasing uptake of mobile broadband services, including the deployment of advanced and high-speed mobile networks. 

Case Studies in this all-new report include:

• Telkomsel Indonesia, SMS
• China Mobile, MMS
  
• Softbank Japan, Mobile E-mail
  
• Vodafone UK, Mobile Broadband
  
• NTT DOCOMO Japan, Mobile Broadband
  
• Verizon Wireless US, Mobile Broadband
  
• Orange UK, Mobile Broadband
  
• Apple App Store, Mobile Applications
  
• Vodafone 360, Mobile Applications
  
• Get Jar, Mobile Applications

For each case study, we have identified and explained 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.

With the increasing penetration of high-end feature phones and smartphones, and recent heavy investment in network infrastructure and new technologies by MNOs worldwide – to ramp up the speed, coverage and capacity of networks, some of the key components for the successful delivery and uptake of advanced mobile data services, including mobile broadband, are in place.

But, of course, in a highly competitive environment like the worldwide mobile data services market, successful strategies become all the more important – especially in the mobile broadband space, after the disappointing ‘first false start’ of mobile Internet a decade ago.

Operator strategies for the successful delivery of advanced data services are dependent on the market behaviour and the current state of infrastructure in their respective markets. The appropriate network technology in one region might not be suitable in other regions because of the existing network technology, density of subscriber base, data use behaviour, investment required, and regulatory environment. Similarly, a pricing or marketing strategy that is successful in one region might not be sustainable in another region.

This essential new 159-page market study comprehensively covers the successful strategies adopted by mobile network operators and others to popularise their data offerings, and also features: revenue, user and technology forecasts; market sizing; key growth drivers; devices, smartphones, handsets and hardware; high speed network technologies and infrastructure deployments; worldwide, regional and company-level analysis; data plans and pricing, value chain analysis and business models; App stores and more.

Further reasons to buy this research:

• Identify the steps taken by MNOs to successfully increase data ARPU
  
• Find out which data services are performing well and which are currently out-of-favour
  
• See how to emulate the effective strategies adopted by MNOs to popularise their data offerings
  
• Study case studies on SMS, MMS, Mobile E-mail, Mobile Broadband and Mobile Applications
  
• Includes synopses of the earlier Portio Research reports: ‘Strategies for Driving Data ARPU’ and ‘Strategies for Creating End-User Demand for Mobile Data Services’
  
• Gain familiarity with the infrastructure and devices that enable mobile broadband access
  
• Compare regional mobile broadband trends; regional 3G subscriber forecasts
  
• Assess strategies to push mobile broadband uptake
  
• Scrutinize revenue, user and technology forecasts
  
• Appreciate the significance of data plans and pricing, value chains and business models
  
• Digest essential commentary on the growing demand for data services, and the double-edge sword that is flat rate data plans

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Table of Contents

Introduction . 9
Worldwide Mobile Market . 12
Worldwide Data Services Market .. 16
Strategies for Driving Data ARPU . 16
Strategies for Creating End-User Demand for Mobile Data Services . 19
Data Services  20
Worldwide Mobile Messaging . 22
Worldwide Mobile Messaging . 22
Dominance of SMS . 23
Mobile Messaging – Strategy Case Studies  26
Case Studies . 26
Telkomsel Indonesia  26
China Mobile .. 31
SoftBank Japan . 36
Conclusion . 42
Mobile Broadband – Introduction and Basics .. 45
Evolution of Mobile Broadband – GSM  46
UMTS (Universal Mobile Telecommunications System) 46
HSPA (High Speed Packet Access) . 46
HSPA+ (High-Speed Packet Access Plus/ Evolved HSPA)  46
LTE (Long Term Evolution) .. 47
LTE Advanced (Long Term Evolution Advanced)  47
EDGE (Enhanced Data Rates for GSM Evolution) . 48
EDGE Evolution or EDGE II . 48
Evolution of Mobile Broadband – CDMA  50
CDMA2000 1X EV-DO (Evolution-Data Only) Revision 0  50
CDMA2000 1X EV-DO (Evolution-Data Only) Revision A  50
CDMA2000 1X EV-DO (Evolution-Data Only) Revision B  50
Evolution of Mobile Broadband – WiMAX .. 52
WiMAX (Worldwide Interoperability for Microwave Access)  52
Drivers and Inhibitors – Mobile Broadband  53
Drivers . 53
Inhibitors . 54
Mobile Broadband – Hardware .. 55
USB Modems . 55
Internal Modems  55
PC Cards  56
Regional Versions – Mobile Networks . 57
Mobile Broadband – State of the Markets  59
Market Size  59
Mobile Broadband User Base.. 59
Mobile Broadband Revenue . 63
Regional Trends  66
Europe . 66
Asia Pacific . 68
North America  70
Latin America . 72
Africa and Middle East  74
Mobile Broadband – Strategy Case Studies .. 77
Case Studies . 77
Vodafone UK .. 77
NTT DOCOMO Japan. 82
Verizon Wireless US  90
Orange UK . 94
Key Parameters for the Uptake of Mobile Broadband .. 97
Mobile Applications – Introduction and Market Size . 99
Overview  99
Value Chain and Ecosystem . 100
Mobile Application Stores  102
Business Model and Revenue Sharing . 103
App-centric Model .. 104
Operator-centric Model  106
Market Size . 108
Mobile Applications User Base . 108
Mobile Applications Revenue  111
Mobile Applications – Strategy Case Studies . 115
Apple App Store . 115
Business Model .. 116
Key Developments  116
Vodafone 360 . 117
Business Model .. 119
Key Developments  119
GetJar .. 120
Business Model .. 120
Key Partnerships  121
Downloads  121
Conclusion .. 123
App Stores  123
Conclusion . 127
Current Scenario  127
The Big Question .. 129
Investment in Mobile Broadband Networks . 130
Growing Demand for Data Services .. 130
Coping with High Data Use  132
AT&T – A Lesson To Be Learnt  132
Possible Answers and the Way Forward . 134
Augmenting Networks .. 134
Getting the Pricing Models Right . 135
Future Outlook 137
Appendices  139
Glossary  140
Portio Research Classifications  153
Companies Mentioned in this Report . 154
About the Authors .. 157
Also available from Portio Research Limited.. 158

List of Figures
Figure 1: Comparison on the basis of Mobile Broadband Parameters – Regional .. 10
Figure 2: Mobile Subscribers – Worldwide (In Million, 2009 – 2014F) . 12
Figure 3: Worldwide Subscriber Base – Regional Contribution (In Percent, 2009) . 13
Figure 4: Worldwide Subscriber Base – Regional Contribution (In Percent, 2014F) .. 13
Figure 5: Mobile Subscriber Base Growth by Region (In Percent, 2009 – 2014F) .. 14
Figure 6: Factors Behind a Successful Data Service .. 17
Figure 7: Data Services Covered in Our Reports ‘Strategies for Creating End-User Demand for
Mobile Data Services’, ‘Strategies for Driving Data ARPU’ and ‘Strategies for Driving
Mobile Data and Broadband Adoption’.. 20
Figure 8: SMS and MMS Traffic – Worldwide (In Billion, 2009) .. 22
Figure 9: Mobile E-mail and Mobile IM Users – Worldwide (In Million, 2009)  22
Figure 10: Revenue of Mobile Messaging Services (In USD Billion, 2009) .. 23
Figure 11: Comparison of Mobile Messaging Services . 24
Figure 12: SMS Traffic – Telkomsel and Excelcomindo (In Billion, 2007 – 2009) .. 26
Figure 13: SMS Traffic – Telkomsel (In Billion, Q1 2009 – Q4 2009) .. 27
Figure 14: SMS Revenue – Telkomsel (In USD Million, Q1 2009 – Q3 2009) . 27
Figure 15: SMS Tariffs and Promotional Plans – Telkomsel .. 28
Figure 16: MMS Users – China Mobile (In Million, End 2007 – End 2009)  31
Figure 17: MMS Traffic per Active User per Year – China Mobile (2007 – 2009) .. 32
Figure 18: MMS Revenue – China Mobile (In USD Million, 2007 – 2009) . 32
Figure 19: M-News Paying Subscribers – China Mobile (In Million, End 2006 – End 2009) .. 34
Figure 20: Number of S! Information Channel Applications – SoftBank (January 2010 – April 2010) 36
Figure 21: 3G Subscribers as a Percentage of Total Subscriber Base – Japan (In Percent, Q2 2009 –
Q4 2009)  37
Figure 22: Mobile Internet Subscribers – SoftBank (In Million, Q2 2009 – Q4 2009) .. 38
Figure 23: Data ARPU – SoftBank (In USD, Q2 2009 – Q4 2009).. 38
Figure 24: Revenue CAGR of Mobile Messaging Services (In Percent, 2009 – 2014F) . 42
Figure 25: UMTS Evolution – Data Transfer Rates . 47
Figure 26: LTE Evolution – Data Transfer Rates . 48
Figure 27: EDGE Evolution – Data Transfer Rates . 49
Figure 28: CDMA2000 Evolution – Data Transfer Rates .. 51
Figure 29: Drivers of Mobile Broadband.. 53
Figure 30: Inhibitors of Mobile Broadband . 54
Figure 31: USB Modems/ Dongles  55
Figure 32: PC and Express Cards . 57
Figure 33: Mobile Broadband User Base – Worldwide (In Million, 2009 – 2014F) . 59
Figure 34: Worldwide Mobile Broadband Users – Regional Contribution (In Percent, 2009). 60
Figure 35: Worldwide Mobile Broadband Users – Regional Contribution (In Percent, 2014F)  61
Figure 36: Mobile Broadband User Base Growth by Region (In Percent, 2009 – 2014F) .. 61
Figure 37: Mobile Broadband Users as a Percentage of Total Mobile Subscribers – Regional (In
Percent, 2009 & 2014F) .. 62
Figure 38: Mobile Broadband Revenue – Worldwide (In USD Billion, 2009 – 2014F) .. 63
Figure 39: Worldwide Mobile Broadband Revenue – Regional Contribution (In Percent, 2009) .. 64
Figure 40: Worldwide Mobile Broadband Revenue – Regional Contribution (In Percent, 2014F) . 64
Figure 41: Mobile Broadband Revenue Growth by Region (In Percent, 2009 – 2014F).. 65
Figure 42: Technology Forecast — Europe (In Million, End 2009 – End 2014F)  66
Figure 43: Regional Trends — Europe  67
Figure 44: Technology Forecast — Asia Pacific (In Million, End 2009 – End 2014F) .. 68
Figure 45: Regional Trends — Asia Pacific  69
Figure 46: Technology Forecast — North America (In Million, End 2009 – End 2014F) . 70
Figure 47: Regional Trends — North America .. 71
Figure 48: Technology Forecast — Latin America (In Million, End 2009 – End 2014F) .. 72
Figure 49: Regional Trends — Latin America 73
Figure 50: Technology Forecast —Africa and Middle East (In Million, End 2009 – End 2014F) .. 74
Figure 51: Regional Trends — Africa and Middle East . 75
Figure 52: 3G Subscribers as a Percentage of Total Subscriber Base – The UK (In Percent,
December 2009) . 78
Figure 53: Increase in 3G Subscribers Percentage – The UK (In Percentage Points, Q1 2009 – Q4
2009) .. 78
Figure 54: FOMA Subscribers and Percentage of FOMA Subscribers in Total Subscriber Base – NTT
DOCOMO (Q2 2009 – Q4 2009) . 82
Figure 55: Packet ARPU – NTT DOCOMO (In USD, Q2 2009 – Q4 2009) .. 83
Figure 56: i-mode ARPU – NTT DOCOMO (In USD, Q2 2009 – Q4 2009) .. 84
Figure 57: Subscribers – Bee TV (In Million, Q2 2009 – Q4 2009) .. 85
Figure 58: Subscribers – i-concier (In Million, Q2 2009 – Q4 2009). 85
Figure 59: Number of Content Sites – NTT DOCOMO (Q2 2009 – Q4 2009) . 86
Figure 60: Subscribers – Pake-hodai (In Million, Q2 2009 – Q4 2009) .. 86
Figure 61: PC Data Communication Devices Sold – NTT DOCOMO (In Million, Q2 2009 – Q4 2009)
..
. 87
Figure 62: PC Data Communications Flat Rate and Use Based Data Plan Subscriptions – NTT
DOCOMO (In Million, Q2 2009 – Q4 2009) . 87
Figure 63: Data ARPU – The US (In USD, Q1 2009 – Q4 2009) .. 90
Figure 64: Monthly Data Plans for Mobile Subscribers – Verizon Wireless (March 2010) .. 92
Figure 65: MNOs’ Absolute and Percentage Growth in 3G Subscriber Base – The UK (2009)  94
Figure 66: 3G Dongle Subscribers and Percentage of 3G Dongle Subscribers in Total 3G Subscriber
Base – Orange UK (Q2 2009 – Q4 2009)  95
Figure 67: Basic Value Chain of the Mobile Applications Market  101
Figure 68: App-centric Business Model  104
Figure 69: Operator-centric Business Model .. 106
Figure 70: Revenue Sharing in the Case of an Operator-centric Business Model .. 107
Figure 71: Mobile Applications User Base – Worldwide (In Million, 2009 – 2014F)  108
Figure 72: Worldwide Mobile Applications Users – Regional Contribution (In Percent, 2009)  109
Figure 73: Worldwide Mobile Applications Users – Regional Contribution (In Percent, 2014F) .. 110
Figure 74: Mobile Applications User Base Growth by Region (In Percent, 2009 – 2014F) .. 110
Figure 75: Mobile Applications Revenue – Worldwide (In USD Billion, 2009 – 2014F) . 111
Figure 76: Worldwide Mobile Applications Revenue – Regional Contribution (In Percent, 2009) . 112
Figure 77: Worldwide Mobile Applications Revenue – Regional Contribution (In Percent, 2014F) 112
Figure 78: Mobile Applications Revenue Growth by Region (In Percent, 2009 – 2014F) . 113
Figure 79: Apple’s App Store – Total Application Downloads .. 115
Figure 80: Break-out of Available Applications by Category – Apple App Store (In Percent, April 2010)
.. 116
Figure 81: Mobile Broadband User Base as a Percentage of Total Mobile Subscribers – Worldwide
(In Percent, 2009 – 2014F) . 128
Figure 82: Revenue CAGR of Mobile Data Services – Worldwide (In Percent, 2009–2014F)  129
Figure 83: Mobile Broadband CAPEX and Revenues by Region (In USD Billion, 2010F) 130
Figure 84: Average Monthly Data Use for USB Dongles, Feature Phones and Smartphones –
Worldwide (In GB, 2009) .. 131
Figure 85: Average Worldwide Selling Price of Nokia Handsets and Apple’s iPhone (In USD, 2007 –
2009)  135
Figure 86: Average Cost per MB of Mobile Data Services – North America (In USD, 2007 – 2009) 136
List of Tables
Table 1: Mobile Subscribers – Regional (In Million, 2009 – 2014F) . 12
Table 2: Success Factors – Telkomsel Indonesia .. 30
Table 3: Success Factors – China Mobile .. 35
Table 4: Success Factors – SoftBank Japan . 41
Table 5: Factors Affecting the Uptake of Mobile Messaging Services  43
Table 6: Number of Network Providers with High Speed Network Deployments – Regional (March
2010) .. 45
Table 7: Examples of Partnerships between Mobile Operators and Laptop Manufacturers .. 56
Table 8: Regional Versions – Mobile Networks  57
Table 9: Mobile Broadband User Base – Regional (In Million, 2009 – 2014F)  60
Table 10: Mobile Broadband User Base as a Percentage of Total Mobile Subscribers – Regional (In
Percent, 2009 – 2014F) .. 62
Table 11: Mobile Broadband Revenue – Regional (In USD Billion, 2009 – 2014F) . 63
Table 12: Success Factors – Vodafone UK . 81
Table 13: Success Factors – NTT DOCOMO Japan  89
Table 14: MNOs’ Key Performance Indicators – The US (2009) . 90
Table 15: Success Factors – Verizon Wireless US .. 93
Table 16: Success Factors – Orange UK .. 96
Table 17: Strategies to Push Mobile Broadband Uptake. 97
Table 18: Major Application Stores  103
Table 19: Mobile Applications User Base – Regional (In Million, 2009 – 2014F)  109
Table 20: Mobile Applications Revenue – Regional (In USD Million, 2009 – 2014F)  111
Table 21: Top 20 Applications on GetJar and Total Downloads, as of November 2009 . 122
Table 22: Key Success Factors for Application Stores . 125
Table 23: Mobile Applications and Data Transfer Rate Requirements  131
Table 24: Strategies to Cope with the Increasing Demand Data Services place on Networks . 134
Table 25: Prices of iPhone Models offered by AT&T . 136

Companies Mentioned in this Report
Company Website
3 www.three.co.uk
3 Italia www.tre.it
3G Americas www.3gamericas.org
Acision www.acision.com
Adobe www.adobe.com
America Movil www.americamovil.com
Apple www.apple.com
Asus www.asus.com
AT&T www.att.com
Boingo Wireless www.boingo.com
Broadcom www.broadcom.com
Carphone Warehouse www.carphonewarehouse.com
Celcom www.celcom.com.my
CDMA Development Group www.cdg.org
Cell C www.cellc.co.za
China Mobile www.chinamobileltd.com
Compaq www.compaq.com
Dell www.dell.com
DeNA www.dena.jp
eBuddy www.ebuddy.com
Ericsson www.ericsson.com
Etisalat www.etisalat.ae
Excelcomindo www.xl.co.id
Facebook www.facebook.com
GetJar www.getjar.com
Google www.google.com
Handango www.handango.com
Handmark www.handmark.com
Handster www.handster.com
HP www.hp.com
Huawei www.huawei.com
International Telecommunication Union www.itu.int
KDDI www.kddi.com
Lenovo www.lenovo.com
LG www.lg.com
Maxis www.maxis.com
Microsoft www.microsoft.com
Mobango www.mobango.com
MobiHand www.mobihand.com
Motorola www.motorola.com
Mozilla Firefox www.mozilla.com
MTN www.mtn.com
NEC www.nec.com
NextWave Wireless www.nextwave.com
Nimbuzz www.nimbuzz.com
Nokia www.nokia.com
NTT DOCOMO www.nttdocomo.com
O2 www.o2.co.uk
Ofcom www.ofcom.org.uk
Opera www.opera.com
Optus www.optus.com.au
Orange www.orange.com
Palm www.palm.com
Pfizer www.pfizer.com
PriceWaterhouseCoopers www.pwc.com
Qualcomm www.qualcomm.com
RIM www.rim.com
Rogers Communications www.rogers.com
Samsung www.samsung.com
Sembuse www.sembuse.com
Siemens www.siemens.com
SlideMe www.slideme.org
SoftBank www.softbank.jp
Sony www.sony.com
Sony Ericsson www.sonyericsson.com
Sprint www.sprint.com
Sumitomo Mitsui www.smbc.co.jp
Tele2 www.tele2.com
Telefonica www.telefonica.com
Telekom Austria www.telekomaustria.com
Telenor www.telenor.com
TeliaSonera www.teliasonera.com
Telkomsel www.telkomsel.com
Texas Instruments www.ti.com
TIM www.tim.it
T-Mobile www.t-mobile.com
Verizon Wireless www.verizonwireless.com
Virgin Mobile www.virgin.com
Vodacom www.vodacom.com
Vodafone www.vodafone.com
Webkit www.webkit.org
WIN plc www.winplc.com
YouGov www.yougov.com
Zain www.zain.com
ZTE www.zte.com

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