mobile vas in emerging markets - what do markets want?
TRANSCRIPT
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Mobile VAS in emerging markets – what do markets want?
Presentation
Singapore, 29th March 2012
2
Contents
• About Value Partners
• Mobile VAS in emerging markets – what do
markets want?
• Q&A
3
Value Partners: a global management consultancy
• An international player
Headquartered in Milan, with offices in 9 countries,
including double-digit growth rate markets
• A strong team of professionals
25 partners, 275 professionals, 23 nationalities
• An excellent track record
Constant growth over the last 18 years
• A large and loyal customer base
Over 350 client served in the past three years,
60% of which have been with us for over 8 years
4
Globally, Value Partners has advised the leading TMT organizations, regulators and investors
Telecoms clients Media clients Investment clients in TMT
SouthernCapital
5
In Asia Pacific we have an unrivalled TMT client base and presence in all major markets
Selected Asia Pacific clients
Hong Kong
China
Japan
Taiwan
Singapore
Vietnam
Philippines
New Zealand
Macau
India
Nepal
Indonesia
Thailand
Malaysia Sri Lanka
Australia
Office
Bangladesh
6
VPPD-071126-VaFall-P6
In the VAS and content area, we have supported all the key players across the value chain
Recent projects experience *
Media players:
recent project experience
• Helping the FA Premier
League to package and sell its
mobile rights in the UK and
international markets
• Business modelling of the
mobile broadcasting
opportunity for RAI
• Developing a mobile service
proposition for Johnston
Press that complements its
online and print services
• Assessing opportunities to
develop new mobile
publishing services
• Prioritising mobile
opportunities complementing
existing pay TV offerings
Enablers:
recent project experience
• Reviewing the strategy of
Fonestarz, a leading mobile
content aggregator and
service provider as part of a
due diligence
• Developing mobile service
offerings for Red Bee
(formerly BBC Broadcast)
• Defined new strategy plan for
the client in order to create
value
• Scouting of potential
acquisition target
• Portfolio strategy of B2B
revenues
• Assessment of m-advertising
opportunity
Mobile operators:
recent project experience
• Developing 02’s mobile
entertainment strategy and
positioning in the mobile TV
market
• Reviewing Telecom Italia
Mobile’s approach to mobile
content and value-added
services
• Supporting Vodafone’s
development of content
standards and minor
protection policy frameworks
• Mobile content product
strategy roadmap; and
development of 3G services
and supporting infrastructure
• Reviewing trends and
commercial opportunities in
the UK mobile market • Assessment of M-payment
opportunities
• Identification and assessment
different business models
• Business planning
European
financial
institution • Assessment of m-payment
opportunity in Bangladesh
• Business planning
Asian
mobile
operator
7
Contents
• About Value Partners
• Mobile VAS in emerging markets – what do
markets want?
• Q&A
8
Among the emerging markets where Value Partners has worked on commercial topics, we share VAS findings in a few interesting markets
Indonesia
Malaysia
India
China
Taiwan
Philippines
Ghana Nigeria
Cameroon
Brazil
Argentina
Chile
Turkey
Pakistan
Oman
Bangladesh
Thailand Vietnam
India
Analysis of mobile VAS
trends as part of a 3G
strategy development and
launch PMO
Vietnam
Analysis of mobile VAS
trends as part of market
and commercial strategy
development
Nigeria
Analysis of mobile VAS
and mobile internet usage
as part of commercial
improvement program
Ghana
Analysis of mobile VAS
trends to develop
offerings targeted at
specific user segments
9
12%
14%
16%
16%
21%
21%
24%
24%
27%
31%
40%
40%
42%
45%
51%
88% Music (including caller
tunes, ringtones, etc)
News
Video RBT & video tones
Sports updates
Game downloading
Astrology
Internet on Mobile
Voice chat/SMS chat
Mobile email
Mobile banking
Mobile payments
Voice search/SMS
search
Education services
Voice karaoke
Spoken SMS Voice
to text
Job services 1%
2%
2%
2%
1%
6%
1%
1%
7%
3%
10%
4%
7%
8%
6%
36%
3%
3%
4%
3%
4%
7%
5%
6%
6%
9%
10%
6%
8%
11%
8%
34%
Source: Consumer survey (India, 15 circles, 2011, n=8216), Value Partners analysis
% aware of VAS % have used
VAS
% intend to use
VAS
Likely trend based
on usage and intent
Awareness, usage and intention-to-use of Mobile VAS among mobile users in India
Music VAS
still most
popular
1
Information,
games and
mobile
internet
gaining
traction
2
Mobile
banking,
mobile
payments
and other
services
still needs
to be
promoted
3
10
VAS usage and usefulness among current mobile VAS users (selected segments) in India
2%
3%
12%
17%
4%
15%
13%
25%
16%
33%
27%
50%
83% Ringtone download
Wallpaper/Picture
download
Audio/Video clips
download
Games download/
Gaming
Web browsing
Instant
messaging
Info services (e.g,
news, find &buy, etc)
Utility aspects of NSE,
BSE, NCDEX
Rail reservation/
PNR enquiry
Happy tune/Reverse
tune/Dialer tone
Voice messaging
Astrology
Source: Consumer survey (India, 15 circles, 2011, n=2160), Value Partners analysis
All users
3.2
2.7
2.4
2.6
2.4
3.0
2.6
2.4
2.9
2.7
2.8
3.1
2.2
% who use the VAS
Relative usefulness (on 5-point scale)
2%
3%
15%
14%
3%
15%
16%
17%
25%
39%
34%
56%
88%
Students
3.3
2.9
2.4
2.6
2.8
2.9
2.5
2.4
3.0
2.9
3.0
3.1
2.3 1%
4%
13%
26%
3%
26%
12%
29%
14%
31%
21%
38%
84%
Working adults
3.2
2.8
2.3
3.5
2.4
2.9
2.5
2.3
2.8
2.7
2.9
2.9
2.6 0%
0%
0%
20%
0%
12%
0%
13%
11%
10%
0%
0%
83%
Rural working youths
3.6
2.6
2.4
2.5
3.0
3.7
2.7
2.3
2.5
2.8
2.8
2.8
3.0
Key opportunity in VASes rated
useful but under or not utilized
11
Mobile VAS usage characteristics of mobile users in Vietnam
90%
14%
12%
10%
4%
4%
1%
1%
0%
SMS
Download ringtones
Download music
Download wallpapers
Picture messaging
Download pictures
Download games
Mobile Mobile Internet
Source: AC Nielsen, Value Partners analysis
% subscribers who have performed the following
activities on mobile in the last 30 days
19% 18%
15%
7% 6%
2%
14%
11% 10%
3% 4%
1%
12%
10% 9%
3% 4%
0%
9%
7%
5%
1%
3%
0%
Teenagers/Young adults (15-24)
Adults (25-34)
Mature (35-44)
Middle-aged (45-54)
Download
ringtones
Download
music
Download
wallpapers
Picture
messaging
Download
pictures
Download
games
% of respondents who have performed following
activities (past 30 days) by age segment
Music VASes are the most
popular across all age
segments
Low penetration of
games may be an
opportunity
12
Mobile VAS and mobile internet usage characteristics in Nigeria
VAS recently used Freq. of mobile internet usage Activities through mobile internet
Source: Consumer survey (Lagos, 2011, n=770), Value Partners analysis
Consumer survey questions - How many times a
month do you use your mobile phone to access
the internet?
Consumer survey questions - What “value-added
services” have you recently used?
Consumer survey questions - What are your
most common activities using the internet via your
mobile phone, based on length of time spent?
42%
5%
4%
5%
8%
4%
33%
Every day
16-29 times
9-16 times
5-8 times
1-4 times
Less thanonce
Never
14%
0.8%
7%
5%
6%
9%
9%
10%
10%
11%
18%
None
Others
News
Games
Call-back
Ringtone downloads
Credit transfer
Instant messenger
Music/video downloads
Application downloads
Social networking
0%
1%
1%
3%
3%
5%
9%
12%
12%
15%
16%
23%
VoIP (Skype)
Video streaming (Youtube)
Gaming
Others
Online reading
Instant messenger (MSN,Google Talk)
Web search
News
Downloading (Music,Ebooks, Videos, etc)
Web browsing
Social networking(Facebook, Twitter,…
• ~14% of respondents have not recently used a VAS…
• …while most VAS have only been used by ~10% of respondents…
• …which indicates a strong potential to stimulate usage by inducing trial
among subscribers
• Polarisation of usage may imply:
- Many people simply do not have the phone
capability, but will use once obtained; or…
- Once consumers are enticed, could quickly
become habitual users
13
Comparison of Mobile VAS usage characteristics between 2G and 3G users in Nigeria
27%
0.4%
5%
6%
7%
8%
11%
7%
10%
5%
21%
Source: Consumer survey (Lagos, 2011, n=770), Value Partners analysis
Social networking
Application downloads
Music/video downloads
Instant messenger
Credit transfer
Ringtone downloads
Call-back
Games
News
Others
None
% 2G subscribers who have
recently used VAS
9%
0.6%
10%
9%
9%
11%
14%
19%
17%
22%
29%
% 3G subscribers who have
recently used VAS
Consumer survey question - What “value-added services” have you recently used?
• VAS usage significantly
increased in social
networking,
applications and
music/video
categories…
• …but not games and
news/info categories
• Percentage of mobile
users who have not
used VAS significantly
reduced
14
5%
1%
4%
3%
6%
7%
15%
15%
20%
25%
29%
38%
Source: Consumer survey (Lagos, 2011, n=770), Value Partners analysis
Social networking (Facebook,
Twitter, Google+, etc)
Web browsing
Downloading (Music,
Ebooks, Videos, etc)
News
Web search
Instant messenger
(MSN, Google Talk)
Online reading
Video streaming (Youtube)
Gaming
Others
% 2G subscribers who have
recently performed activities
% 3G subscribers who have
recently performed activities
Consumer survey question - What are your most common activities using the internet via your mobile phone,
based on length of time spent?
Comparison of Mobile Internet usage characteristics between 2G and 3G users in Nigeria
VoIP (Skype)
2%
1%
4%
5%
13%
21%
26%
30%
38%
52%
52%
75%
• 3G subscribers did
significantly more
social networking,
communication,
information gathering
activities…
• …but not video
streaming, gaming
and VoIP activities
15
Most popular activities on mobile phone in Ghana
Source: Consumer survey (Accra, 2011, n=247), Value Partners analysis
22%
18%
17%
16%
13%
10%
3%
1%
Web browsing
Chat
Getting information
Audio content (e.g.,
Music)
Audiovisual content
(e.g. Video)
Video calling
Other
Overall
Activities most often performed on mobile phone
19%
20%
19%
14%
14%
10%
3%
1%
Mid and High Value
subscribers
24%
18%
17%
17%
12%
10%
3%
0%
Mass market
subscribers
• The mid and high
value customer
appear to
emphasize
communication
and getting
information…
• …while the mass
market
subscriber has a
preference for
web browsing
and audio
content
16
Most desired activities on mobile phone in Ghana
Activities subscribers would like to perform on mobile phone
Source: Consumer survey (Accra, 2011, n=247), Value Partners analysis
24%
22%
20%
18%
15%
Mobile TV
Location-based
information services
Multi-player gaming
Mobile payments
Music services
Overall Mid and High Value
subscribers
Mass market
subscribers
27%
18%
21%
16%
18%
23%
24%
20%
19%
14%
• The mid and high value
customer wants mobile TV and
music services…
• …while the mass market customer
wants information services and
mobile payments on their phones
17
Therefore, the key takeaways are…
• Within emerging markets, music-related, social
networking and information services are still the most
relevant VASes…
1
• …emphasizing practicality and fulfilling social needs
(as opposed to pure entertainment)
2
• More advanced services like mobile banking,
payment and commerce will still need to be promoted
to improve awareness
3
18
Possible business models – Some ideas and examples
Charge
consumer for
service
Sell data to
access
service
Charge a
third-party -
advertisers
1. Introduce subscription services for music,
information and other useful services – e.g.
Spotify and 3UK
1
1. Use technology to enable Facebook, Twitter,
etc on low-end phones and sell data to these
users – e.g. XL Axiata and Blaast Oy
2
1. Leverage mobile advertising as new revenue
stream, riding on increasing smartphone
penetration – e.g. SingTel and Amobee
3
19
Contents
• About Value Partners
• Mobile VAS in emerging markets – what do
markets want?
• Q&A
20
Contact Information
www.valuepartners.com
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