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    CONTENTS

    FOREWORD 2

    EXECUTIVE SUMMARY 3

    ACRONYMS 5

    IntroductiontoMobileServices 6

    CommunicationsServicesDevelopmentPast,TodayandToCome 6 MobileServicesGrowth 7

    Subscribers

    Global Mobile Penetration 7

    Asia Pacifc Mobile to Acelrate 7

    Subscribers in 3G Services 8

    Revenue

    Global Mobile and Fixed Voice Revenue 8

    Data versus Voice Revenue 9

    DevelopmentsintheGlobalMobileMarket 10

    Web Based Applications 10

    Entertainment 11 Financial Applications 12

    Inormation Service 13

    Education 13

    Other Developments Impacting Mobile Development 14

    Standards 14

    Phased Evolution rom 3G to 4G 15

    Security 15

    Devices/ Handsets 16

    Enhancement o Mobile Network 17

    Changes Associated with Radio Access Capacity Enhancement 17

    Next Generation Networks 18 Convergence 18

    Advertising 19

    More Business Opportunities 20

    MobileServicesScenarioinMalaysia 20

    MalaysianMobileSubscribers 21

    Malaysian3GSubscribersMarketShare 21

    MobileRevenue 22

    PrepaidandPost-paidSegments 22

    Prepaid Segment 23

    New No-Frills Mobile Prepaid Plan rom DiGi 23

    Malaysian Prepaid Rates 24 Top 15 Operators by Largest Prepaid Growth as at 1Q-07 25

    Post-paid Segment 25

    Post-paid Plans 26

    MarketComparison 27

    CellularMobilePricesoASEANandOtherMajorRegionalEconomies 27

    Top10AsiaPacicCountriesbyNetAdds,1Q-07 27

    Top10AsiaPacicOperatorsbyNetAdds,1Q-07 27

    Top25Ranking:MobileSubscriberGrowthMarkets2006to2011 28

    MobileSubscriptionsbyRegion 28

    Top20CellularSubscribersandNetworkinAsiaPacicasat1Q2007 29

    NewProductsandServicesinMalaysia 29CONTACT US

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    FOREWORD

    OnbehalotheMalaysianCommunicationsandMultimediaCommission(SKMM),itismypleasure

    topresenttoourreaderstheReportonTrendsandMarketsinMalaysianMobileServices.

    Thescopeothisreportincludesdiscussiononthecommunicationsservicesdevelopmentinrespect

    omobilevoiceanddatamarkets.Varioustrendsinrevenueandsubscribergrowtharedescribed,withindicationontherelativepaceodevelopmentinvariousmarketsbyregion.Industryorecasts

    onworldandregionalmobileservicesmarketareincludedaswell.Thekeydriverstothemobile

    marketgrowthisassessedanddiscussedtogetherwithananalysisothetrendothemobilemarket

    goingorward.

    Thereis alsoananalysisothe recent trendin accelerationodataservicesand the increasing

    developmentoweb-basedapplicationsinthemobileservicesmarketglobally.Otherdevelopments

    inthecommunicationsservicesmarketsuchasstandards,security,deliverynetworksandhandset

    development,includingtheconceptoconvergenceinthemobileservicedevelopmentarealso

    discussed.

    AlookatthedevelopmentothemobileservicesmarketinMalaysiaismade,relatingthestatus

    othemarketintermsomarketplayers,revenuegrowth,marketshareandbasicservicesoered.

    Acomparisonwithothercountries inthe regionandglobally isdonetoidentiythe statuso

    Malaysiaonmobile.

    AsotcopyothisreportcanbeobtainedromtheSKMMwebsiteat:

    http://SKMM.gov.my/what_we_do/Research/industry_studies.asp

    Itrustthisdocumentwillprovideuseulinormationtoreadersandindeedcanserveasacatalyst

    toconstructivebusinessideasandperspectivesthatcanurtherpropelthecommunicationsand

    multimediaindustrydevelopment.Wewelcomeeedbackthatwillhelpusimproveourindustry

    [email protected]

    Thankyou.

    Datuk Dr. Halim Shafe

    Chairman

    MalaysianCommunicationsandMultimediaCommission(SKMM)

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    EXECUTIVE SUMMARY

    MobileservicesdevelopmentinthedevelopedcountriesoEurope,USandAsiaPacicaremoving

    intomoreintegratedapplicationsapartromvoiceonthehandsetsuchasmobilepayments,mobile

    TV,videoandmusicon-the-go.Whilemobilevoiceisexpectedtocontinueasacashcowon

    revenuesource,highergrowthsareexpectedondatarevenues,especiallyincountrieswherevoice

    servicesarealreadyrmlyestablished.Theworldorecurringrevenuesinmobileapplicationsistenaciouslybeingworkedonthroughinnovativeservicesacilitatedbymobility.

    Mobiletelephonypenetrationatagloballevelisexpectedtoriseto45%in2007(2006:36%)while

    xedlinepenetrationisexpectedatlessthan20%othepopulationworldwide.In2009,theglobal

    subscriberbaseisexpectedtoreach2.8billion(2004:1.9billion),withAsiaPacictaking52%othe

    pie(2004:46.3%),WesternEurope14.2%(2004:19.3%)andNorthAmericaat8.6%(2004:8.6%).

    Overallgrowthomobilesubscriberbasedon2004-2009CompoundAnnualGrowthRate(CAGR)is

    8.1%.Industryreportsindicatethat3Gsubscriberstakeupisnallybuildingmomentum,doubling

    tonearly120millionin2006.Thegrowtho3Gisobservedasmuchacilitatedbytheabilityothe

    handsetvendorsnallytoputavarietyo3Gphonesinthemarket.

    In2006,thetotalmobileandxedrevenueworldwidewasUSD1,309billion.Theproportiono

    xedtomobilevoicerevenuewas50:50.Thisisasignicantcontrastromthesituationin2003

    wheremobilecontributed41%tototalrevenueoUSD1,038billionandxedrevenuecontribution

    59%.

    Intermsodataandvoicebreakdownorxedandmobileservicesrespectively,mobilevoicerevenue

    contributed42%in2006comparedto36%in2003.Mobiledatarevenuecontributionwas8%in

    2006(2003:5%).Fixeddatarevenuecontributionwas20%in2006(2003:17%).Thisislikelydue

    totheincumbentoperatorsoeringVoiceoverInternetProtocol(VoIP)andincreasingbroadband

    servicesrecentlytocounterthedecliningrevenueonthexedvoiceserviceascompetitionrom

    virtualVoIPoperatorsandmobileoperatorsintensied.However,xedvoicerevenueproportion

    hasdecreasedsignicantlyto30%in2006rom42%in2003.

    Onaglobalbasis,thedrivingorcesormobileindustrygrowtharethecontinuedmarketdemands,

    especiallyromemergingmarkets,ormobileandwirelessbroadbandservices.Costoownershipis

    nowloweronbasicusageduetoercemarketcompetition.Demandisalsoboostedbyavailability

    omoremobileapplicationsservicessuchasm-commerce,m-paymentandmobilehealthservices,

    music andTV reception onmobiles,bringingnewavenues orpotentially lucrativeadvertising

    revenuesintothemobileequation;prospectopersonalisationandmoreusercontrol;advancement

    andintroductionotechnologiessuchasHighSpeedPacketAccess(HSPA),WirelessFidelity(Wi-Fi),

    andWiMAXwhichoerlowercapitalinvestmenttotheserviceprovidersandtheavailabilityolow

    end/lowcostdeviceswhicharehighlyindemandinemergingmarkets.

    Demandorlaptopsintheemergingmarketsisexpectedtooutpacethatordevelopedmarkets

    intheratioo2:1.MorespectrumallocationorwirelessservicessuchasWiMAXglobally,and

    industrydynamicssuchasxedmobileconvergencewhichenableuserstoreceivebothxedand

    mobileservicesonasingledual/multimodedeviceandthusloweringusagecostortheconsumer,

    aredrivingdemandaswell.

    Goingorward,voicerevenueisexpectedtoremainasthemainrevenueearner.Datarevenueor

    mobileservicesisexpectedtoincreasinglyberomnon-SMSormessagingorientationtowebbased

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    applicationssuchasentertainment(musicandvideodownload,videoondemand,andgames);

    consumercentricnancialservicessuchasmobilepaymentsandmobilewallets;ande-Education.

    Thesearetraditionallynon-telcobasedservicesthataretodayacilitatedbycollaborativeeorts

    acrossvaluechainpartnerstosucceedinnewbusinessmodels.Theavailabilityohigherspeed

    delivery;andincreasedstoragecapacitiesalsohaveimpact.Otherdevelopmentsimpactingmobileservicesworldwidearedevelopmentsonstandards,security,devicesorhandsets,enhancemento

    themobilenetworkandconvergence(tonameaew)toprovidetheircustomerthemobileservices

    theywouldneedandarewillingtopayor.

    Malaysiaembracedmobilecellularservicesinmid1980s,withsubscribernumberssurpassingthato

    xedlinein2000.Thisxed-mobilesubstitutionadvanceseventoday.However,mobilepenetration

    ratesarelevellingo,andoperatorsareshitingocusandapproachromcustomeracquisitionto

    customerretention,aswellastorampinguprevenuespersubscriberbydrivingupdatausage.

    Thecellularmobile serviceslandscape inMalaysiaisessentiallyanoligopolymarketcomprising

    Celcom(Malaysia)Berhad(Celcom),MaxisCommunicationsBerhad(Maxis)andDiGi.ComBerhad

    (DiGi).Maxishasasubscribermarketshareo42%,whileCelcomandDiGimarketsharesareat

    31%and27%respectively.AsatendoSeptember2007,thecellularmobileserviceprovidershave

    acombinedtotalo22.1millionsubscriptionsinacountrywithapopulationo27.3million.The

    mobilecellularservicemarketisamongthemorematuredmarketsintheregionwithapenetration

    rateo80.8per100inhabitants.

    Malaysiasxedlineratesareregulated.Mobileratesareregulatedinrespectowholesaleratesor

    thecarriageovoicecommunicationsvis--visMandatoryAccessPricing.Pricewarsareintenseasa

    result,especiallyonprepaidstarterkitsandprepaidservices.Theprepaidsegmentbeganin1998.

    In2006,thecountryslowestpricedprepaidstarterpackwasatRM4.99.Flatratechargesorcalls

    toanyoneonanynetwork,atanytimetoanywherestartedin2006.

    TheMalaysianenvironmentisconsideredvibrant,andnewservicesareexpectedtocomeonboard

    similartothedevelopmentsinoverseasmobilemarkets.Alreadycollaborativearrangementsare

    startingoinmanywaystodierentiatethemobilemarketurtheroreconomic,competitiveand

    serviceadvantages.Themainthingtokeepinmindasisbeingdonebyoverseasplayersistheact

    thatinorderorthecustomertoorkouttheirringgit,thecontentandapplicationsdeveloped,

    includingitsdelivery,havetosuittheirneeds.

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    ACRONYMS

    EBIT Earnings Beore Interest and Taxes

    EBITDA

    EDGE

    Earnings Beore Interest, Taxes,

    Depreciation and AmortizationEnhanced Data rates or GSMEvolution

    GNI Gross National Income

    GPRS General Packet Radio Service

    GPS Global Positioning System

    GSM Global System or Mobilecommunications

    HSDPA High Speed Downlink Packet Access

    HSPA High Speed Packet Access

    IDC International Data CorporationIM Instant Messaging

    IMS IP Multimedia Subsystem

    MMS Multimedia Messaging Service

    LBS Location-Based Services

    LBS Location-Based Services

    M2M Machine-to-Machine

    NFC Near Field Communication

    NGN

    OECD

    Next Generation Networking

    Organization or Economic Cooperation andDevelopment

    PSTN Public Switched Telephone Network

    RFID Radio-requency identication

    SIP Session Initiation Protocol

    SIP A/S SIP Application Server

    SIP SOA SIP Service Oriented Architecture

    SMS Short Message Service

    TAC Transaction Authorisation Code

    VoIP Voice over Internet Protocol

    WAP Wireless Application ProtocolIMS PoC IP Multimedia Subsystem Push-To-Talk over Cellular

    W-CDMA Wideband Code Division Multiple Access

    Wi-Fi Wireless Fidelity

    WiMAX World Interoperability or Microwave Access

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    Revenue100%

    Services: Voice

    Services: Non-voice

    Services:Voice/Non-voice

    Traditional fixed line

    Fax

    Paging

    Lease line

    Timeline

    Internet dial-up

    Security a. Hardware: Mobile insurance (user + insurance company); Mobile Theft (police)

    b. Software: Mobile anti-virus, spam filtering

    Smart Connected Home:-Includes RFID chips and Internet connection(e.g., fridge alert on low supply and creates onlinealert to sundry shop for supply)

    Mobile Cellular

    Mobile Cellular Web Based Applications:-Entertainment (music, video, games, MP3 music, radio)3D games, mobile TV (may not be web based but broadcast)

    -Financial (mobile wallet, m-money, stock market,e-banking, e-ticketing, online shopping)-Information service (LBS e.g., Friend-finder, search engine(Mobile Search), includes GPS-Education (e-Book, e-dictionary)-Others

    Lowlatency

    Inter-operability

    M2M

    -SMS-MMS-IM-e-mail-Voice mail to text-Video telephony

    prepaid

    post-paid

    VoIP

    Skype

    (3G video call)

    Service Delivery Platform Trend

    Fixed line voice 36%

    Circuit switched (PSTN) Packet switched ( NGN) Development of chips:-NFCWireless

    Wi-Fi (LAN) 802.11WiMAX : fixed wireless broadband-WAN (802.11n)

    : mobile broadband-MAN (802.16e)

    Fixed Mobile Mobile Skype

    Broadband 1%

    Mobile62%

    Mobile Application

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    MOBILE SERVICE GROWTH

    Subscribers

    Global Mobile Penetration Rate

    Industryexpectsmobiletelephonypenetrationatagloballeveltoriseto45%in2007rom36%in

    2006.Meantime,xedlinepenetrationisexpectedatlessthan20%worldwide.

    Thenumberomobilephonesubscribersworldwideisreportedat1.9billionin2004 1,outowhich

    AsiaPacichas46.3%,WesternEurope19.3%andNorthAmerica8.6%.In2009,thesubscriber

    baseisexpectedtogrowat2.8billion,withAsiaPacicdominates52%othepie,WesternEurope

    14.2%andNorthAmericaat8.6%.Overallgrowthomobilesubscriberbaseis8.1%basedon2004-

    2009CompoundAnnualGrowthRate(CAGR).

    Mobile Phone Subscribers Worldwide by Region ( 2004, 2009 and CAGR)Region 2004 2009 2004-2009 CAGR

    Total Subscribers (billion) 1.9 2.8 8.1%

    RegionsPercent by

    Region

    No. osubscribersby Region(billion)

    Percent byRegion

    No. osubscribersby Region(billion)

    Asia Pacic 46.3 0.879 52.0 1.456 10.6%

    Western Europe 19.3 0.367 14.2 0.397 1.6%

    North America 8.6 0.163 8.6 0.240 8.0%

    Eastern Europe 8.5 0.161 8.3 0.232 7.6%

    Middle East and Arica 8.3 0.157 8.8 0.246 9.4%

    Latin America 7.7 0.146 7.5 0.210 7.5%

    Source: The Mobile TV Revolution by Sony Pictures Television International, Asiain CommunicAsia 2007

    Asia Pacifc Mobile to Accelerate

    Inaseparatestudy,industryestimatesthatdevelopedmarketsaretoaccountormorethanhalo

    projectedrevenuegrowthrom2006to2010.TheemergingmarketsoAsiaPacic(developing),

    LatinAmerica,andEasternEuropeareexpectedtodrivethegrowthmainlyinsubscribertakeup.

    Intermsosubscribergrowth,theAsiaPacicemergingcountriesareexpectedtocontribute55.1%

    orcloseto660millionsubscribersoutothetotalo1.197billionsubscribergrowthbetween2006

    and2010.ThisismainlyexpectedromthedenselypopulatedcountriesoChinaandIndia,where

    telecommunicationsservicesareburgeoningintakeup.Meanwhile,protgrowthromAsiaPacic

    (emerging)regionisexpectedatUSD13billionduring2006to2010,whiletheMiddleEastand

    AricaregionisatUSD22billion.

    1 The Mobile TV Revolution by Sony Pictures Television International, Asia in CommunicAsia 2007

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    Contribution to Growth 2006 to 2010

    2006 to 2010 Quantum oGrowth(100%)

    Subscriber Growth Revenue Growth Proft Growth**

    +1,197 million +USD214 billion +USD82 billion

    Percent by Regions:Asia Pacic (emerging) 55.1% 660 13% 28 15.7% 13

    Middle East and Arica 16.2% 194 22% 47 27.2% 22

    North America 7.3% 87 26% 55 22.8% 19

    Latin America 6.6% 79 6% 13 4.8% 4

    Eastern Europe 5.9% 71 5% 11 5.9% 5

    Asia Pacic (developed)* 5.3% 63 10% 21 7.4% 6

    Western Europe 3.6% 43 18% 39 16.2% 13

    *Japan, Korea, Australia, Hong Kong**Based on average EBITDA margin 2006 or major markets in each region weighted by regional shareSource: Gartner, Yankee Group, Merrill Lynch, McKinsey Analysis, GSMA 2007

    Subscribers in 3G Services

    WithThird-generation(3G)networksoperational inmucho thedeveloped countries, industry

    reports3Gsubscribertakeupisnallyexpectedtobuildmomentum.Worldwide3Gsubscribersare

    expectedtodoublein2006tonearly120million2.

    Thegrowtho3Gisobservedasmuchacilitatedbytheabilityothehandsetvendorsnallyto

    putavarietyo3Gphonesinthemarket.Late2005cited200new3Ghandsetsmodelsandallnew

    terminalsare3G-enabled.IDCindicatedin2006that3Gphoneswillaccountor18%otheglobal

    mobilephonemarketin2006and25%in2007.

    Revenue

    Global Mobile and Fixed Voice Revenue

    In2006,thetotalmobileandxedrevenueworldwidewasUSD1,309billion.Theproportionoxedto

    mobilevoicerevenuewas50:50.Thisisasignicantcontrastromthesituationin2003wheremobile

    contributed41%tototalrevenueoUSD1,038billionandxedservicecontributed59%revenue.

    Mobile Revenue at 50% Telecoms Pie

    ServicePercent Revenue

    (%) Voice versus DataPercent Revenue

    (%)

    2003 2006 2003 2006

    Mobile 41 50Data 5 8

    Voice 36 42

    Fixed 59 50Data 17 20

    Voice 42 30

    Revenue (USD billion) 1,038 1,309 Revenue (USD billion) 1,038 1,309

    Source: GSMA Association 2007, Gartner, McKinsey Analysis

    22006 KPMG International Report on Convergence Takes Hold The Global Outlook or Inormation and Communications Technology Markets

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    Data Versus Voice Revenue

    In termsodataand voicebreakdown or xedandmobile servicesrespectively,mobile voice

    revenuecontributionhasincreasedrom36%in2003to42%in2006.Asindicatedromthetable,

    mobiledatarevenuecontributionhasrisenrom5%in2003to8%in2006.However,thexed

    voicerevenueproportionhasdecreasedsignicantlyrom42%in2003to30%in2006.

    Meanwhile,xeddatarevenuecontributionhasincreasedrom17%in2003to20%in2006.This

    islikelyduetotheincumbentoperatorsoeringVoiceoverInternetProtocol(VoIP)andincreasing

    broadbandservicesrecentlytocounterdecliningrevenueascompetitionromvirtualVoIPoperators

    andmobileoperatorsintensied.

    Mobile Revenue (Regional Split by Percentage)

    2003 (%) 2006 (%)

    Latin America 5 7

    Eastern Europe 5 7

    Middle East and Arica 6 9

    Asia Pacic (emerging) 11 13

    Asia Pacic (developed)* 18 14

    North America 24 22

    Western Europe 31 28

    Revenue (USD billions) 434 647

    *Japan, South Korea, Australia, Hong KongSource: GSMA Association 2007, Gartner, McKinsey Analysis

    Source: Inorma Telecoms & Medias World Cellular Data Metrics Source: Global Wireless Data Market 2006 Update, Chetan SharmaConsulting, April 2007

    Whetherprepaidorpost-paid,beit3Gornot,mobileconsumersarestilloptingorSMSasoneo

    themostpreerredbasicmobileservices.BasedonaGSMAssociationcommissionedsurveyin2006,

    textmessagingtopsthelistaheadoe-mailandMMS.NorthAmericanrespondentsrankedmobile

    messagingsuchastextmessagingandmobileinstantmessagingasmostindispensableservices,comparedtoAsian andEuropeanrespondentswhoavour textmessagingmostbeoremobile

    e-mailandMMS.

    Non-SMS as % of Data Revenues: Selected Operators, 1Q07

    0 10 20 30 40 50 60 70 80

    Vodafone (Egypt)

    Smart (Philippines)

    O2 (Ireland)

    MTN (South Africa)

    TMN (Portugal)

    Chunghwa (Taiwan)

    Verizon Wireless (USA)

    KTF (Korea)

    Non-SMS data revenues as % of data revenues

    40

    60

    25

    75

    60

    40

    0 20 40 60 80

    SMS

    Non-SMS

    %

    US Japan Western Europe

    Proportion of Data Revenues

    2006

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    0

    Preerence or Mobile Data Services

    MobileAverageRevenuePerUser(ARPU)levelsdierwidelyacrosstheregionsintheworld.Overall,

    all regionsare reportedto experiencedecliningARPUoverthe last ew years. Reasons or this

    includecutintariratesonstrongcompetitionandthetrendtowardsvoice-datasubstitution.

    Global Mobile ARPU Trends

    Period ARPU Profle Remarks

    1993-2000 Early ARPU Globally, ARPU more than halved during this period due to increasing competition

    Early 2000s Stabilisation

    Mobile calls began to match xed call charges, and stimulation rom value added

    mobile services such as voicemail, SMS and eatures such as call barring, lteringand calling line identication.

    Mid 2000sVoice ARPUdeclining

    By end 2005, the majority o carriers worldwide saw drop in ARPU, even thoughmobile subscribers and overall revenues continued to grow.

    2006Mobile dataARPU on therise

    While voice contributes majority o mobile trac, estimates are that mobile datacontributes more than 10% o global ARPU. Mobile content and services andmobile advertising are being considered or urther increasing ARPU.

    Source: Paul Budde Communication Pty Ltd, 2007

    DEVELOPMENTS IN THE GLOBAL MOBILE MARKET

    Therearemanydevelopmentsthatsupportthegrowthomobileservicesmarket.Thisbasicallycan

    beseensimplyintheormosupplyanddemandperspectives.Forexample,thedevelopmento

    webbasedapplicationsandcontentcanbeseenascateringtoconsumerneedsintermsoitsservice

    provision.Fromthesupplyside,onecouldincludethedevelopmentsostandards,security,devices

    orhandsets,enhancementothemobilenetworkandconvergencetoprovidetheircustomerthe

    mobileservicestheywouldneedandarewillingtopayor.

    Web Based Applications

    Thereismuchplanningandeducationaheadinpreparationtotakeonnewwaysobusinessoperations

    intheuture.Thisisrefectedromthedevelopmentinweb-basedapplicationsormobileand

    broadband services today. Such development in product and service serves to counteract the

    decliningARPUromtraditionalpurevoiceservicesprovision.Thereisalsoprospectonewavenues

    orpotentiallylucrativeadvertisingrevenuesintothemobileequation.

    TextMessaging

    1

    Email 2

    MMS 3Alert via SMS/MMS 4

    Instant messaging 5

    Web browsing & searching 6

    Location-based services 7

    Mobile radio 8

    Financial transactions 9

    Downloading content 10

    Mobile TV 11

    Video calling 12

    Video Sharing 13Gambling 14

    Servic

    eRanking

    Source: Adapted rom : Wireless Asia November 2006 (2006 survey o 3,061 consumers in Europe, Asia and North America by Circle Research

    or the GSMA)

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    Inthisrespect,theGSMAssociation(GSMA)advisesthatactivepositioninginthemobileindustryis

    required.Forexample,inthestancetotakeondierentandnewopportunities,andinsmallerand

    morediverseareas,exploringnewbusinessmodels,andengaginginpartnershipstosecurenew

    skillsapartromorganicskillssetdevelopment.

    Onecouldsaythatwebbasedapplicationsareinnovativemobileapplicationsserviceprovisioning

    thatcatersto,ascloseaspossible,theneedsotheconsumer.Thesearetraditionallynon-telco

    basedservicesthataretodayacilitatedbytheincreasedcollaborativeeortsacrossvaluechain

    partnerstosucceedinnewbusinessmodels;theavailabilityohigherspeeddelivery;andincreased

    storagecapacities.Theexamplesotheservicesareasollows:

    Entertainment-music,video,games,MP3music,radio,3D-games,mobileTV(maynotbeweb

    basedbutbroadcastmode)

    Financial(mobilewallet,m-payments,stockmarket,e-Banking,e-Ticketing,onlineshopping)

    Inormationservice(LBSe,g.,Friend-nder,searchengine(MobileSearch),includesGPS

    Education(e-Book,e-Dictionary)

    Entertainment

    Scheduledentertainment,orexamplethroughFree-To-AirTVinthehome,is todaymixedwith

    VideoonDemand(VoD)romPayTVoptionsaswell.Thenextphaseodevelopment 3isportable

    entertainmentondemand,whichistimeandplaceindependent,whereconsumerscanwatchwhat,

    whereandwhentheywant.Mobileentertainmentoersthechoice,controlandconvenience,

    includingpersonalisationotheirmobilespacesoughtbyconsumersotodayandacilitatedby

    advancedtechnologyandcommunicationsservices.

    Withbandwidthcapacitiesgoingrom2GtoHSDPA3.5G,SonyPicturesorexampleprovidesa

    rangeomobilecontentonmobilehandsetsromthemoreamiliarwallpapers,ringtones,screen

    savers and such like static displaystointeractiveandmoving pictureorientation. That is, rom

    mobilegames tobrandedvideo clips andminisodesto streamedbrandedmobile channelsand

    eventuallyulllengthmovies.

    Minisodes are Re-Purposed Content for Mobile TV Entertainment

    Traditional TV (reerence to analogue TV) Mobile World (digital ormat)

    Standard Long Form Format Bite size content that has to be compelling

    30 minute comedies, including animated cartoons Four to six minutes ormat in length

    60 minute movies (drama, TV series)Capture storyline, while retaining key areas such as humourand action

    Home television experienceMade or mobile content or snacking purposes (viewing on

    the go)

    Scheduled viewing Oers on demand entertainment

    Source: The Mobile TV Revolution by Sony Pictures Television International, Asia in CommunicAsia 2007, Websites

    TheintroductionoentertainmentintheormomobilevideostreamingandmobileTVisconsidered

    arelativelyrecentdevelopmentoverlastewyearsandtheexpectationothisbusinesstakingois

    morerealtodaythanbeore.IndustryexpectationsareormobileTVandvideorevenuestogrow

    atCAGRo28%rom2006-2011,withrevenueoUSD4.2billionromtheAsiaPacicregionalone

    by2011.

    3 The Mobile TV Revolution by Sony Pictures Television International, Asia in CommunicAsia 2007

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    AmongthecriticalsuccessactorsintheprovisionomobileTVandvideotodayaretheprovision

    oTVasarecreationalexperience;aordability;transparencyinpricingandfatrateornodata

    chargeoptions;picturequality;multichannelandon-demandoptions;brandedcontentormade

    ormobilecontent;strongpartnershipsbetweencontentprovidersandnetworkoperators;and

    crossplatormmarketing.

    Financial Applications

    Themobilityprovisionocommunicationsservicesthroughthemobilephoneisacrucialdevelopment

    inthebusinesstoday.Thisenablesnewbusinessmodelsortraditionalbusinessessuchascreditor

    debitcardpaymentsine-Bankingtransactionsgoingintothemobilearena.Theseopportunities

    areprovidedbythesecureelementaspectoSIMcards,whichhasmadenancialinstitutionseel

    moresecureaboutthepotentialoradoptionom-paymentsystemsorecosystems.

    Sectorsstartingtoseekoutm-paymentopportunitiesinclude4:

    Transportationcompaniesoeringtouchandpayaccesstoticketbarrierswhereastore-

    valuecardiseitherattachedtothehandset,orembeddedintheSIM;

    Retailersareoeringloyaltycardsinsimilarmanner;

    Credit card companies seemobile handsets as a means to widen their catchment or

    commercialtransactions;

    Vendingmachinesoperatorssellsotdrinksandotherconsumablesbyenablingpayment

    throughmobilephone;

    Advertisersarebuildingweb-linksintopostersintrainsandbusesandonbuildingsthatcan

    beactivatedby3G+phonesromashortdistance,leadingtomorewebsitevisitsandmore

    purchasesthroughmobilephones;and

    Contentproviders,includingmusicandinormationsites,auctionsitesandrapidlygrowing

    Web2.0communitysitessuchasMySpaceandYouTubearebecominggloballyaccessibleto

    payingcustomers.

    Mobile Wallet Developments in Japan and Korea

    InJapan,SonysFeliCaisacontactlessICcardwhichNTTDoCoMoisusingormobilewallet

    purposes. The industryobservesthatabrandnamesuchasSony inthis spacehas created

    technologylegitimacyandcondencebackingtothisservice.Thecardisacreditcard-sizedcardorpaymentpurposesandaminiatureversionispossibleorembeddingintoamobile

    phone.Soar,Sonyindicated200millionoFeliCacardsshipped.Thiscardinthewalletor

    mobilephonecanbeintegratedorpayment,IDandaccesscontrolmode.Thatis,theholder

    canexitanIDaccesscontrolledoceandalsopayoramealinarestaurantusingthesame

    card/mobilephone.Facilitatingsuchdevelopmentisthecomputingpoweroeredby2.5Gand

    3Gphonesthatnowallowsorgreatersecurityprotocols;previouslyalimitingactorinwider

    mobilepaymentuse.

    InSouthKorea,VisaInternationalandSKTelecomlaunchedinFebruary2007amobilephone

    paymentsystemusingUniversalSubscriberIdenticationModule(USIM)cardsor3Gnetworks.

    ThesystemturnstheusersUSIMcardintoaRadioFrequencyIdentication(RFID)tagthatis

    usedasacontactlesspaymentcard.

    4 M-payments in Asia Pacifc 2007 by KPMG

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    Mobile Wallet Developments in Japan and Korea (Contd)

    Besidesthetelecommunicationapplication(USIM),digitalsignatureapplicationsormonetary

    transactionsarealsopossible.ThisisacilitatedbythechipcardcalledUniversalIntegrated

    CircuitsCard(UICC)thatallowsthestorageomorethanoneapplicationonthesamechip.Theapplicationsareindependent,andcanbesimultaneouslyexecuted.Thisprovidespossibilityto

    storemorethanoneapplicationthatoperatorscanoer.

    Source: Mobilising the Wallet in Enterprise Innovation August/ September 2007, AUSTRIA CARD article on USIM

    JuniperResearchexpectsthemobilepaymentmarkettogenerateaboutUSD22billionby2011due

    tothewideningrangeomobilephonesanddevicesavailable.Thisrapidmarketgrowthisalso

    expectedtoberomincreasedadoptionoperson-to-personundtransersanddevelopmentsin

    themobilephonepaymenttechniquesusingNearFieldCommunications(NFC).

    CountriesinvolvedinPay-Buy-MobileEnd-To-EndtrialsundertheGSMAprojectonE2EUSIMbased,NFC contactless technology include Australia, France, Korea, Malaysia, Philippines, Singapore,

    TaiwanandUSA.

    Inormation service

    Inormationserviceviathemobilephoneisnolongerlimitedtostillpicturesanymoreandlimited

    contentavailability.Searchenginescanndtheinormationyouneedwhenyouarelookingorit,

    andthison-the-goaswell-atleastinanemergingscenariotoday.CellcoslikeT-Mobile,Vodaone,

    ChinaMobileandKDDIhavepartneredwithGoogletoincludeitsInternetsearchengineintheir

    wirelessportals.InJuly2006,NTTDoCoMoaddedakeywordsearchtoitsi-modeportalthatincludes

    linkstonineInternetsearchengines,includingMSNandInoseek,ornon-ociali-modesitesand

    theInternet.

    Meanwhile,majorhandsetplayerslikeNokiaandMotorolahavestartedtoincludeGoogleand

    Yahooiconsintheirphones.Earlier2006,NokiabegancollaboratingwithChinesesearchengine

    Baidu.com to make mobile search easier and more convenient in Chinese-languagemarkets,

    includingmainlandChina,HongKong,andTaiwan.

    InMalaysia,thereisSMS-basedservicethatallowsMuslimstoconrmthehalalstatus(whichis

    tosaypermissibleunderIslamiclaw)oproducts.Thisservicewaslaunchedinearlier2006by

    theIslamicDevelopmentDepartmentoMalaysia(JAKIM).Theserviceworksbyuserssendingan

    SMSwiththewordhalalandtheproductsbarcodenumbertoashort-codenumber.Theproduct

    inormationisthensentbacktotheuser.

    Education

    Distance learning has a whole new twist today as books are electronically delivered. Soon,

    e-Book5canbereadmorereadilythroughthehandsetwhile,orexample,telecommuting.E-Book

    eliminatestheneedorreadingbulkybindersandhard-to-readPCscreensorlengthydocuments,

    nancialreports,policyandproceduresandtrainingandtechnicalmanuals.In2006,governments

    andbusinesses,ineverysectorromretailtohealthcare,haveusede-Booksasacosteectivemeansodistributingcriticalinormation.

    5 MobileIno.com

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    Astechnologybecomesmoreaordable,e-Booksareexpectedtobemoreandmoreintegrated

    intoanenterprisescurrentoperations,makingthemethodochoiceordeliveringinormation

    inelectronicormeasytoaccess,convenienttouse,andavailableanywhere.Typeocontentand

    ormatopresentationisexpectedtobeimprovedovertimethough,especiallyasdeliveryspeeds

    andstoragecapacitiesincrease.

    Specically,e-Bookisanelectronicbookwhichconsistsosomeormoinormationreadingdevice

    andamethodoupdatingorrereshingtheinormationromanothersource,orexamplerom

    theInternet.ItisamodiedormoAdobesReaderthathasbeenstoredinsomeormomemory

    (permanentorsemi-permanent)inapentypetablet.Ithasinstant-oncapabilitylikeahandheld

    pencomputer.

    Other Developments Impacting Mobile Development

    Standards

    Standards development has a major impact on the rapid advancement and introduction o

    technologiessuchasHighSpeedPacketAccess(HSPA),WirelessFidelity(Wi-Fi),andWiMAXwhich

    oer lower capital investment totheserviceprovidersandtheavailabilityo lowend/lowcost

    deviceswhicharehighlyindemandinemergingmarkets.

    The developmentostandards requiresa standards bodyoranallianceothe stakeholders to

    ensuretheobjectiveandcontinualdevelopmentoastandardormutualbenet.Standardsbodies

    todayareincreasinglyinternationalinitsstakeholderparticipation.Forexample,GSMAssociation

    (GSMA)isaglobalstandardsbodyoverseeingthestandardsdevelopmentinmobilecommunications

    intheGSMamily.

    Thedevelopmentostandardshasasignicantroletoplayinmobilesubscribergrowth,andits

    impactisexpectedtoincreaseinrespectodeliveryomobileservicestothemassmarket,which

    ishappeningtoday.Forexample,therstsecondgeneration(2G)callwasmadein1991.TheGSM

    amilydevelopedurthertolaunchGPRSin2000,3Gin2001,EDGEin2003,HSDPAin2005,and

    HSUPAin2007.GSMphonestotaltwobillionin2006.By2010,GSMAexpectsortheretobemore

    3Gsubscribersthan2Gsubscribers.

    TheGSMArecentlywentintocollaboratingwithMicrosottoresearchconsumertrendsandthemassmarketpotentialornotebookPCswithembedded3Gmobilebroadband.The13mobileoperators

    participatinginthisresearchareTeleonica/O2;AT&SMobility;ChinaMobile;DTAC;Maxis;MTN;

    Orange;SingTel;SmartCommunications;TeliaSonera;Turkcell;Vodaone;andtheWind.

    InOctober2006,GSMApublishedguidelinesprescribingacommonapproachorPCmanuacturers

    tointegrateHSDPA3Gintotheirproductranges.Nevertheless,theindustrycautionsthattodays

    HSDPAisnotyetastenoughtoreplaceabroadbandconnectionandotherasterchipsetssupporting

    HSUPAmaybeabetteralternative.HSUPAwaslaunchedin2007.Thereore,thesynchronisation

    oparalleldevelopmentsisaactortoconsiderbyboththesupplyanddemandsidestakeholders.

    Inshort,thesedevelopmentsshowthelevelocooperationamongstthesupplysideplayersandthiscollaborationormutualbenet isexpected tobeoneothemainacilitatingeatureso

    communicationsservicestocome.Consumercentricityinserviceorproductdeliveryisanotheractor.

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    Phased Evolution rom 3G to 4G

    Source: Copyright 2008 NTT DoCoMo, Inc. All Rights Reserved

    Security

    Asthemobileandbroadbandmarketsdevelopandmoreothepopulationgetsconnected,thereisincreaseddemandorsecuritysuchasmessagingsecurityorMMS,SMSande-mail,mobileweb

    lteringtoblockillegalorinappropriatecontentandanti-raud,andrequirementstoenorceand

    reportonindividualsinparentalcontrolandcorporateportals.

    SotwarepackageplayerssuchasAdaptiveMobileSecurityLtdprovidearangeocontentltering

    capabilitiesasollows:

    Source: Adaptive Mobile Security Ltd 2007

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    Theprovisionosecurityisincreasinglyseenasalucrativemarketinviewoitssizegoingintothe

    uture.AnalystsorecastthemobilesecurityproductrevenuestoreachUSD5billionby2011.Juniper

    Researchcitesthebiggestmobilesecuritymarketsectortobethesecuremobilecontentsectorthat

    concernsanti-virus,anti-spam,anti-spywareandcontentltering,with40%othemarketin2011.

    RevenuesromthemobiledataandleencryptionproductsareexpectedtooutstripthePCmarketin2011.ABIResearchorecastsmobiledevicesecuritymanagedservicesmarketwillincreaserom

    USD100millionin2006tooverUSD500millionin2011.

    Nevertheless,thebiggestrisktosecurityiscitedashumanerrorwhereintheuserhaspoorpassword

    disciplineanduserslosingtheirphones6.Furthermore,thoseuserswhosedevicescostmoreandare

    mostlikelytohavegreateraccesstocorporatedatatendtolosetheirphone40%morerequently

    thatthosewitharegularhandset.Indicationsarethatthereislipservicepaidtosecurityissuesand

    manyotheseusersareunwillingtosupportevenbasiceortstosecuredata,iitinvolvesany

    degreeoinconvenience.Insuchacase,theyholdotherssuchascarriersandtheire-mailprovider,

    responsibleorimprovingsecurity.

    Devices/Handsets

    Onaglobalbasis,thedrivingorce7ormobileindustrygrowtharethecontinuedmarketdemand,

    especiallyromemergingmarketsinmobileandwirelessbroadbandservices,aspriceoownership

    decreased onbasicusagedue tostrong competitive inthe communicationsservicesarena. For

    example,lowcosthandsetsinSub-SaharanArica8costsaboutUSD30-100each;andinThailand,

    MalaysiaandEasternEuropetherearethemidrangehandsetsatUSD100-200,andPCsandlaptops

    betweenUSD300-2,000each.

    Thedemandorlaptopsintheemergingmarketsisexpectedtooutpacethatorthedevelopedmarketsintheratiooabout2:1.MorespectrumallocationorwirelessservicessuchasWiMAX

    globally,andindustrydynamicssuchasxedmobileconvergencewhichenableuserstoreceive

    bothxedandmobileservicesonasingledual/multimodedeviceandthusloweringusagecostor

    theconsumer,aredrivingdemandaswell.

    Theindustryexpectstoship33millionconsumermass-marketnotebooksin2008.GSMAindicated

    latentdemandtoexceed industryexpectationswhereintheir recentmarket research indicated

    that80millionindividualsplantobuyanotebookPCin2008;70millionwouldlikeanotebook

    withMobileBroadbandCapabilities(MBPC)and55millionpreerbudget-pricedMBPCovertheir

    originalpurchaseintention.

    Onhighendmarket demand-side, according toa recent research published byDeutsche Bank

    Research,themarketshareo3Ghandsets,smartphonesandmobileTVhandsetsisexpectedto

    reach50%o theglobalmobilehandsetmarketin2008.Inyear2004,totalmarketsizeorall

    handsetwasestimatedat646million.Smartphonecarried18millionromthetotalmarketsize,

    20millionor3Ghandsetand608millionortheotherscategory.Atthattimein2004,mobile

    TVhandsetwasnotinthemarketyet.In2008,totalmarketsizeisexpectedat1,167millionunits

    whichconsisto156millionorSmartphone,363millionor3Ghandset,55millionormobileTV

    handsetand593orotherscategory.

    6A Survey by Ireland based analyst, Research and Markets reported in Mobile Communications International, June 20077 GSMA 2007: Ater interviews with executive and experts8 GSMA 2007: HSPA Unleashing the Mobile Broadband Ecosystem in Emerging Markets by Booz, Allen & Hamilton

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    Category

    (Unit: million) 2004 2008 (e)

    Expected

    2004 - 2008CAGR

    Smartphone 18 156 71.6%

    3G Handset 20 363 106.4%

    Mobile TVHandset

    0 55 -

    Others 608 593 -0.6%

    Market Size(All Handset)

    646 1167 15.9%

    Smartphone, 3G Handset, Mobile TV Handset,

    2004 versus 2008 (e)

    156

    363

    55

    608 593

    18 20 0

    0

    200

    400

    600

    800

    1000

    1200

    2004 2008 (e)

    Unit(millio

    n)

    Smartphone 3G Handset Mobile TV Handset Others

    Smartphoneinamarketthathasrecentlytakenoarecontinuallyhavingtheircapabilitiesand

    serviceoeringsenhanced.Forexample,ResearchInMotion(RIM)srecentlaunchoitsdualmode

    BlackberrydevicethatoersvoiceanddataservicesoverboththecellularandWi-Finetworksusing

    the802.11a/b/gstandards.Blackberry8820hasullQWERTYkeyboard,a320x240pixeldisplay,a

    trackballnavigationsystemandbuilt-inGPSsupport.

    Enhancement o Mobile Network

    As indicated rom the standards development in mobile services, the network or delivery is

    continuouslybeingenhancedandupgradedtoreapnewbusinessopportunitiesorevenrejunevate

    traditionalservices.Forexample,thedevelopmentindeliveryspeedsinHSPAstandard,andthe

    changesassociatedwithradioaccesscapacityenhancement.

    The HSPA User Experience

    Download WCDMA 384Kbps HSPA 3.6Mbps HSPA 7.2Mbps

    3MB Song 1.3 min 8.3 sec 4.2 sec

    5MB Video Clip 2.2 min 13.9 sec 6.9 sec

    10MB Powerpoint Presentation 4.3 min 27.8 sec 13.9 sec

    Source: GSMA 2007

    Changes Associated with Radio Access Capacity Enhancement

    Source: Copyright 2008 NTT DoCoMo, Inc. All Rights Reserved

    e: estimateSource: Deutsche Bank Research, ROA Group

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    Next Generation Networks

    Oneothequestionsthenetworkoperatorsarelikelyaskingtodayistoinvestornottoinvestin

    nextgenerationnetworksascompetitioninthedataandvoicemarketheightens.Legacysystems

    canonlytakethenetworkoperatortoacertainextent.Nextgenerationnetworkscancaterto

    utureneedsorincreasecapacity,seamlessconnectivityandinteroperability,andoersavingsin

    capexandopexoverthelongerterm.

    Today,therearemanydrivers9orimplementationoIMS.Theseincludeacceleratingmobiledata

    usageand3Gtakeupworldwide;therecentIMSdevelopmentswherebyVodaonepicksEricsson

    andNokia, andTeleonica picksAlcatel-Lucent in their NGNdeployments; thedevelopmento

    EnterpriseIMSinIPCentrexandresidentialVoIPservices;andtheincreasinguseoIMSclientsand

    handsetssuchasNTTDoCoMousingIMSPoCclientoritsPush-To-Talkservice.

    TheadoptionoIMSisseenasanevolutionarydeploymenttoaddressrevolutionarychangesinthe

    communicationsservicesmarket.Today,SIPA/SandSIPSOAarebeingdeployedasaorerunnerto

    IMS.SIPapplicationsarereportedalreadyearningmoneytodayandtheultimatedeploymento

    IMSisexpectedtobeapplicationcentric.

    CGI SIP Applications - Examples

    No. ApplicationsAvailability For:

    Enterprise SMB* Consumer

    1 Home surveillance/virtual Nanny/Hotspot video monitoring yes yes yes

    2 TV manager yes

    3 Presence-based call routing yes yes yes

    4 Honey, Im Home yes yes yes

    5 Personal Assistant yes yes yes

    6 Click to dial yes yes yes

    7 Click to conerence yes yes yes

    8 Ringback tones yes yes yes

    9 Virtual city guide yes

    10 Virtual voice mail/Outgoing/Broadcast yes

    11 Web Podcast yes yes

    12 VIP Do Not Disturb yes yes yes

    13 Find Me/Follow Me yes yes yes

    *Small and Medium Sized BusinessSource: Ubiquity Sotware Corporation Plc

    Convergence

    Industryobservationtoday10isthatthereismoreFixedMobileSubstitution(FMS)thanthetakeup

    oconvergentxedmobileservices.ExamplesoxedmobilesubstitutionareVodaoneGermany

    oering At Home services, which provides xed network alternatives at preerential rates.

    GermanysO2oersGenion,aFMSserviceoeringcustomerstheconvenienceomobile,butalsolandlineoptionintheirhomezone.

    9 The IMS Dilemma Whats Next and When? by Ubiquity Sotware Corporation Plc, an AVAYA Company10 Accenture Global Convergence Forum 2006

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    Yet, FixedMobileConvergence (FMC)servicesareexpectedin the uture due todemand rom

    customerswhorequireoccasionalmobility,andneedguaranteednetworkcoverageandQualityo

    Service(QoS).Also,FMCoerscustomersaccesstooceapplicationsromanydevice,anywhere

    andatbestspeed.However,operatorshaveyettoaddressFMCissuestoeventuallymakeitan

    attractivepropositionsuchaseaseouse,aordabilityandhighspeedaccesstokeyapplications.ItisexpectedthatthetargetmarketorFMCareyoungergenerationswhoareearlyadopters,

    alreadyusebroadbandandmobile servicesextensively, andwould value thesavingsoncalling

    costsromFMCoerings.Surveysindicate10-14%otheWesternEuropepopulationisinterested

    inbuyingFMCservices.

    Three Deployment Scenarios for FMC

    Convergence Types Description Service Roadmaps*/ Capabilities Required**

    Commercial Combines xed and mobile

    subscriptions with linked or

    unied billing.

    **Requires single sales and marketing channels with a

    single point o contact, which in turn means convergent

    Customer Relationship Management (CRM) and billing.

    Device Integrates various access typesinto one device, typically WLAN

    802.11 b/g and GPRS or 3G;customer is given one number

    or several handsets and one

    simple, personalised applicationset.

    *Single handset and voice value added services oered toboth residential and business markets. Further on, initiate

    clients to FMC via simple convergent oers such as videocall (mobile and xed), FMC entertainment, or example

    gaming, music, VoD and directory, inormation bases or

    location based services. Finally, to oer complex FMCservices, or example integrated messaging, push-to-

    show and push-to-view during calls, photo album andremote storage, IPTV on both xed and mobile.

    Services Oers customers the sameservices regardless o whether

    they are using a xed or mobileconnection, through a single

    device that can make voice or

    data calls or both.

    **A single service delivery platorm will be required tospeed up time to market o new convergent services.

    Source: Accenture, Accenture Global Convergence Forum 2006

    Accentureindicatesthatthehighestandmostcomplexleveloconvergenceistheintegration

    oservices,technologies,networksandorganizations,andthisismostlikelytoachieveseamless

    convergenceandhighperormance.Thesehavebenetsostrongerandlongertermlock-ino

    customers. However, such high level o integration requires signicant investments, andhence

    tradeostoserviceprovisionareexpected.

    TherearevariousalternativestoFMCdeployment.Eectivelytheundamentalprinciplesarethe

    rightmarketingmix(price,andeaturesoeringsimplicityandconvenience);righttechnicalmix

    (openstandards; interoperability)andrightorganisationalmix (integratedsalesandmarketing,

    integrated networksand IT inrastructure). Furthermore, understandingomarket needs is an

    essentialingredienttowardssuccessulFMCimplementation.

    Advertising

    Withtheclosetothreebillionmobilesubscriptionstoday,andourbillionexpectedin2010and

    includingclosetoonebillionhandsetssoldperyear,themobileeyeballsarebuilding.Nevertheless,

    thebridgetothishasyettodevelopbeorethispotentialcanbetapped.Certainly,advertisers

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    0

    todayaremonitoringthesituationclosely,withmanyalreadytakinginitiativestowardsthisend

    andthenamesbehindsuchdevelopmentincludethelikesoGoogle,Yahoo,andMySpace.

    Soar,mobileadvertisingisdeemedanexploratorybusinesstoday 11.Thisisthecaseorboththe

    advertisersandnetworkoperators.TheglobaladvertisingmarketisexpectedtobeworthUSD450

    billionannually.Today,mobileaccountsoronlyatinyractionothis.Asashareomobileoperator

    revenue,mobileadvertisingaccountsorabout0.1%.Nevertheless,theUSandWesternEuropean

    marketsareseenasthemarketsthatwillleadinmobileadsrevenuegrowth.Industryanalysts

    orecastboththeseregionstoachievecombinedmobileadvertisingrevenueoUSD5.08billionby

    2012,upromanestimatedUSD106.8millionor2007.TheUSisanticipatedtodriveroughlyUSD2.3

    billionothetotal,whileEuropeanmarketsisexpectedtoseerevenuesapproachingUSD2.8billion

    withintheorecastperiod.

    Apparently,gettingadsonhandsetsisnotahasslebutaccessotheseadstothetargettedmarketsis

    importantoradvertisers.Personalisedadvertisingassuchisviewedasoneothebiggestattractions

    othemobilephoneandresearchcompaniesareworkingtoenableadvertisers totarget theirmarketingtoreachaudienceonthemobileWebwithscale.Researchcompany,M:Metricscreated

    thetechnologyoauditingwebsites,whichisdonebysurveyingvisitorstoWAPsitesandproviding

    moregranularinormationaboutthevisitors,whichincludeethnicityandgender.Analystsconsider

    inormationaboutconsumersuseomobilewebsitesasvitaltoadvertiserssothattheycanplace

    theiradsmoreappropriately.

    More Business Opportunities

    Astechnologyunleashesbandwidthandeaseodeliveryandinteroperabilitycapabilities,previously

    non-existentnewbusinessmodelsaregeneratedandthoseoldorexistingonesarerejuvenated.For

    example,previouslyclick-to-talktechnologywasconsideredanichebusiness.However,rethinking

    othisisexpectedinthelightodevelopmentssuchasthepartnershipamongGoogle,USservice

    providerVoIPInc,andmobileoperatorsinChina.TelecomAsiareportsthatmobileoperatorsin

    ChinawhouseGoogleortheirmobilesearcheswillsoonhaveasimplewaytopurchasegoods

    andcontactmerchants.ThisisseenasanexpansionromthenewservicelaunchedinUSearly2007

    wherebyUSwebusersoGoogleMapsapplicationcanmakereeclick-throughcallstomerchants

    andretailersthatcomeupinsearchlistings.

    IntheUS,userstypetheirphonenumbersandpressthecallpromptonthewebsitelistingto

    contactaspecicmerchant.Withinasecondortwo,VoIPIncsnetworkcallsthecustomerwho

    answersthiscallandthenhearsthetelephoneconnectionbeingmadetotheretailer,whoanswersitlikeanyregularcall.Thesweetenertothisisthatthereisnocosttothecustomerasthecallis

    routedthroughVoIPIncsnetwork.Thereportsaidthatthetechnologyworksonanyplatorm.

    Googleisoeringsimilarclick-throughservicesintheUK,GermanyandJapanwithexpansioninto

    France,Italy,Netherlands,Spain,China,Ireland,IndiaandAustralia.

    MOBILE SERVICE SCENARIO IN MALAYSIA

    Malaysiaembracedmobile cellularservices inmid 1980s. Its popularity grew toeventually the

    numberosubscribersormobilecellularsurpassingthatoxedlinein2000.Thexed-mobile

    substitutionadvanceseventoday.However,mobilepenetrationratesarelevellingo,andoperatorsareshitingocus andapproach romcustomeracquisition tocustomerretention,aswellas to

    rampinguprevenuespersubscriberbydrivingupdatausage.

    11 Mobile Communications International, June 2007

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    Subscriber Market Share

    2005

    Subscriber Market Share

    2006

    Maxis

    41%

    Celcom

    35%

    DiGi

    24%

    Maxis

    42%

    Celcom

    31%

    DiGi

    27%

    Celcom

    458,859

    43%

    3G Subscribers Market Share

    3Q-07

    3G Subscribers

    Maxis

    600,000

    57%Maxis

    60%

    Maxis

    57%

    MyICMS

    886

    Targets

    Celcom40%

    Celcom43%

    -

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    1,400,000

    1,600,000

    2Q-07 3Q-07 2008

    No.

    ofSubscribers

    818,291

    1,058,859

    1,500,000

    InMalaysia,xedlineratesareregulated.Mobileratesareregulatedinrespectowholesalerates

    orthecarriageovoicecommunicationsvis--visMandatoryAccessPricing.Pricewarsareintense

    asaresult,especiallyonprepaidstarterkitsandprepaidservices.

    Malaysian Mobile Subscribers

    Thecellularmobile services landscape inMalaysiais essentiallyanoligopolymarketcomprising

    Celcom(Malaysia)Berhad(Celcom),MaxisCommunicationsBerhad(Maxis)andDiGi.ComBerhad

    (DiGi).Maxishasasubscribermarketshareo42%,whileCelcomandDiGimarketsharesareat

    31%and27%respectively.

    AsatendoSeptember2007,thecellularmobileserviceprovidershaveacombinedtotalo22.1

    million subscriptions inacountrywithapopulationo27.3million,themobile cellular service

    marketisamongthemorematuredmarketsintheregionwithapenetrationrateo80.8per100

    inhabitants.

    Source: Industry, SKMM Source: Industry, SKMM

    Malaysian 3G Subscribers Market Share

    Currently,twomobilecellularserviceproviderssharetheIMT-2000or3Gsubscribermarket.Two

    moreoperatorshavebeenawarded3Gspectrumbuthaveyettomaketheircommercialdebut.

    Source: Industry, SKMM Source: Industry, SKMM

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    Mobile Cellular Domestic Revenue Market Share

    2006

    Mobile Cellular Domestic Revenue Market Share

    2005

    Maxis

    44%

    Celcom

    34%

    DiGi

    22%

    Maxis

    44%

    Celcom

    31%

    DiGi

    25%

    Mobile Revenue

    TherevenueormobilecellularserviceinMalaysiaaresplitthreewaysamongMaxis,taking44%

    ototalrevenueatRM15.9billionin2006;Celcom31%andDiGi25%.

    Source: Industry, SKMM Source: Industry, SKMM

    Financial and Key Indicators of Mobile Cellular Service Providers in Malaysia 2006

    Financial Highlights Maxis Celcom DiGi Total

    1. Revenue (RM billion)7.7

    (+20.3%)4.5

    (+0.7%)3.7

    (+27.6%)15.9

    2. Prot Beore Tax (RM billion)2.79

    (+13.9%)1.15

    (+1,953.6%)(a)1.09

    (+65.2%)5.03

    3. Total Shareholders Fund (RM billion) 7.2 2.6 1.8 -

    4. Monthly ARPU Blended (RM) 61 56* 54 # 57

    5. Monthly ARPU Prepaid (RM) 46 45* 50 # 47

    6. Monthly ARPU Post-paid (RM) 135 109* 96 # 113

    7. EBITDA (RM billion)3.85

    (+10.3%)1.97

    (-5.7%)(b)1.70

    (+34.9%)# 2.5

    8. EBITDA margin (%) 50.0% 43.5% 46.4% # 46.6%

    9. EBIT margin (%) 36.5% 25.8% 29.2% # 30.5%

    10. No. o Subscribers (million) 8.06 6.08 5.31 19.45

    11. No. o Prepaid Subscribers (million) 6.44 4.85 4.81 16.10

    12. No. o Post-paid Subscribers (million) 1.62 1.23 0.51 3.36* Fourth quarter 2006 # Industry average(a) Large percentage attributable to the absence o the provision or a claim amounting to RM915.1 million made by DeTeAsia Holdings GmbH in 2005(b) Lower year-on-year growth due to TM internal charges and 3G costs

    Source: Industry

    Prepaid and Post-paid Segments

    OneothekeydriversbehindtherapidgrowthomobilecellularservicesinAsiaPacicwasthe

    phenomenalsuccessoprepaidmobileservices,withmarkedgrowthinemergingmarkets.Both

    post-paidandprepaidservicesreceivedaboostromurtherenhancementstotheservicesoand

    prolongingtheliecycleo2Gand2.5Gservicesdespitetheemergenceotherapidlydeveloping

    3Gtechnologies.

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    Overtheyears,thedownwardpressureonpricesoconnectionchargesorcellularmobilehave

    drivenpositivegrowthandproducedtrendsorgreateraccessibilityasinvestmenttrendswerein

    avourodrivingnetworkcapacityandcoverage.Thesetrendswerealsoevidentregionally.

    Prepaid Segment

    InMalaysia,unlikexedlinerates,mobileratesareonlyregulatedasaraswholesaleratesorthe

    carriageovoicecommunicationsasdeterminedunderMandatoryAccessPricing.Asmobileretails

    ratesarenotregulated,pricewarsemergedamongprovidersespeciallyprepaidstarterkitsand

    prepaidservices.Theprepaidsegmentbeganin1998,whenDiGilauncheditsprepaidconceptor

    mobilephoneservicesinMalaysia.

    From2006,DiGiprepaidmarket segment inMalaysiasaw its rstfat ratecharges or calls to

    anyoneonanynetwork,atanytimetoanywhere.Inthesameyear,thecountryslowestpriced

    prepaidstarterpackwasatRM4.99oeredbyCelcom.TheAirAsia-Celcomstarterpackprovided

    ve sen per minute call and one sen per SMS (Short Messaging Service) to three registered

    013or019CelcomnumbersinMalaysia.

    New No-Frills Mobile Prepaid Plan rom DiGi

    DiGi

    Brand name Happy

    Starter Packs RM25.00 (inclusive RM20 talk time)

    Voice Call - charging blockRM0.99 per call (maximum charge)

    RM0.01 per second up to 99 seconds

    SMS RM0.10 per SMS to any network

    MMS RM1.00 per MMS

    Data Usage GPRS RM0.50/10Kb

    * Rates as at 7 December 2007Source: Company website

    Trends in Asian Region Mobile Connection Charges (USD)

    0

    100

    200

    USD

    USD

    Mobile Connection

    Charges

    121 83 28.32 18.41

    1998 2000 2002 2006

    Source: International Telecommunication Union, Regional Seminar on Costs and Taris or Member Countries o the Tari Group or Asia andOceania (TAS), Seoul, 3 to 6 July 2007

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    Malaysian Prepaid Rates

    Maxis Celcom DiGi

    Brand name Hotlink Xpax DiGi Prepaid

    Starter PacksTotal Plan RM8.80Easy Plan RM6.00

    RM10.00 DiGi Prepaid SIM Pack RM8.50

    Voice Call

    - Flat ratesnationwide

    361 sen/min.(any network)

    Celcom to CelcomLite Plan - 38 sen/min. (local)

    Mid Plan - 35 sen/min. (nationwide)Max Plan - 15 sen/min. (nationwide)

    Celcom to OthersLite Plan - 38 sen/min.Mid Plan - 45 sen/min.Max Plan - 15 sen/min.

    362 sen/ min.(any network)

    - Limited

    designated/selected

    numbers only

    Activ5*(5 Maxis nos.)

    15 sen/min.

    * Easy Plan only

    8pax (8 Celcom or TM xed line nos.)15 sen/min. nationwide

    Chat Plus36 sen/min. (any network)

    Family & Friends (6 DiGi nos.)15 sen/min.

    Fu-Yoh!DiGi to DiGi pay or rst three

    minutes, thereater reerom 12am to 12 pm

    Sundays only

    Maxis Celcom DiGi

    Short Message Service

    SMS

    Maxis to Maxis

    7 sen/SMS1 sen/SMS (Activ5)

    Maxis to Others15 sen/SMS

    Activ51 sen/SMS

    Celcom to CelcomLite Plan - 10 sen/SMS (o peak);

    5 sen/SMS (peak)Mid Plan - 10 sen/SMS (o peak);1 sen/SMS (peak)

    Max Plan - 1 sen/SMS (o peak);10 sen/SMS (peak)

    Celcom to OthersLite Plan - 20 sen/SMS (o peak);

    15 sen/SMS (peak)Mid Plan - 20 sen/SMSMax Plan - 20 sen/SMS

    DiGi to DiGi7 sen/SMS

    Friends & Family1 sen/SMS

    Friends & Family Plus(add 2 non-DiGi nos.)

    15 sen/SMS

    Fu-Yoh!7 sen/SMS (any network)

    DiGi to Others15 sen/SMS

    Multimedia Messaging Service

    MMS

    Maxis to Maxis25 sen/MMS

    Maxis to Others50 sen/MMS

    Celcom to Celcom

    35 sen/50Kb MMS

    Celcom to others50 sen/50Kb MMS

    DiGi to DiGi25 sen/MMS

    Friends & Family10 sen/MMS

    Friends & Family Plus, DiGi toOthers

    50 sen/MMS

    Fu-Yoh!25 sen/MMS (any network)

    Data Usage

    Web andWAP

    Peak: 1 sen/KbO-peak: 0.5 sen/

    Kb

    10 sen/10Kb 10 sen/10Kb

    1 36 sen/minute applicable when top up a minimum o RM30. Otherwise rate remains at 39 sen/minute. Valid or 30 days rom the day o RM30 top up2 Applicable or usage below RM30 above otherwise RM0.48 sen/minute appliesNote - Unless indicated otherwise all rates are o-peak local rates and are shown or comparison purposes only. Rates as at 7 December 2007Source: Company websites

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    Top 15 Operators by Largest Prepaid Growth as at 1Q-07

    Rank Company Country Prepaid users 1Q-07 Annual increase (%)

    1 Hutchison Whampoa Hong Kong 20,287,000 83.13

    2 Orascom Egypt 10,022,000 65.65

    3 Sprint Nextel US 11,112,000 30.04

    4 China Mobile China 247,621,700 25.02

    5 Etisalat UAE 5,199,880 23.536 MTN South Arica 10,592,000 23.75

    7 SingTel Mobile Singapore 552,000 21.05

    8 America Movil Mexico 41,715,000 18.93

    9 Deutsche Telekom Germany 17,705,000 14.80

    10 Vodacom* South Arica 17,107,700 13.58

    11 Turkcell Turkey 26,300,000 13.02

    12 Mobile TeleSystems Russia 45,952,570 12.66

    13 Verizon Wireless US 4,580,000 11.75

    14 China Unicom China 57,318,600 11.52

    15 VimpelCom* Russia 48,249,790 10.90

    DiGi Malaysia 5,234,000 11.27

    Maxis Malaysia 6,841,000 1.29

    Celcom Malaysia 5,052,000 -16.89

    * - Total and prepaid subscriptions have been estimated because 1Q-07 results are unpublished or have not been released- Malaysian operators included or reerence purpose only

    Source: Inorma Telecoms & Media, Industry

    Post-paid Segment

    DiGicontinueditseortstomakeurtherinroadsintothepost-paidsegment,aheadoMobile

    NumberPortability(MNP).InJuly2007,DiGilaunchedanewpost-paidplan,calledPost-paid1Plan,

    whichchargessubscribersafatrateo13sen/minuteorcallstoanyoneonanynetwork,anytimeandanywhereinMalaysia.

    TherewillbenoaccesseeandthelowestmonthlysubscribercommitmentisRM70.Itisnotedthat

    at13sen/minutePost-paid1Plancurrentlyoersthecheapestpost-paidcallchargesintown.Maxis

    charges15-30sen/minuteandCelcom14.3-20sen/minute.

    DiGihada15%marketshareinthepost-paidsegmentin2006.Thislatestpost-paidplanmaycapture

    greatermarketshareromothermobileoperatorsandevenxedlineSTDsegment.Moreover,

    thislatestmoveromDiGimarksgreatercompetitivepressureinthepost-paidsegmentwhere

    consumershavelongbeentheminoritycomparedtoprepaidusers.Theyarebracingordownward

    pricepressureandeventuallyevenbettervaluepackages,dependingonhowaggressivelyDiGimovesintothepost-paidsegment.

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    Post-paid Plans

    Maxis Celcom DiGi

    Brand Value Plans Minutes Postpaid DiGi Postpaid

    Call

    Rates

    Maxis to Maxis

    Value 50: 15 sen/min.Value 80: 12 sen/min.Value 150: 10 sen/min.

    Family Plus Plan: 15 sen/min.

    Maxis to OthersValue 50: 20 sen/min.Value 80: 15 sen/min.Value 150: 12 sen/min.

    Family Plus Plan: 20 sen/min.

    Celcom to Any

    Bundled Minutes C250:- 20 sen/min.- 20 sen/min. fat rate, nationwide,

    anytime or additional minutesBundled Minutes C500:

    - 16 sen/min.- 20 sen/min. fat rate, nationwide,

    anytime or additional minutesBundled Minutes C800:

    - 15 sen/min.- 20 sen/min. fat rate, nationwide,

    anytime or additional minutes

    Bundled Minutes C1400:- 14.3 sen/min.

    - 20 sen/min. fat rate, nationwide,anytime or additional minutes

    DiGi to DiGi

    15 sen/min.(usage less than RM123)Free (usage more than RM123)

    DiGi to Others20 sen/min.

    (Premier/Family Unlimited)30 sen/min.

    (Optimum/Family Unlimited)

    SMS Maxis to Maxis5 sen/SMS

    Maxis to Others15 sen/SMS

    Celcom to AnyBundled Minutes C250, C500, C800

    & C1400: 8 sen/SMS , fat rate,nationwide, anytime

    DiGi to DiGi5 sen/SMS

    (usage less than RM123)Free (usage more than RM123)

    DiGi to Others15 sen/SMS

    GPRS Maxis to Maxis

    25 sen/MMS

    Maxis to Others50 sen/MMS

    Celcom to Celcom

    35 sen/50Kb MMS

    Celcom to Others50 sen/50Kb MMS

    Web and WAP browsingPay-as-you-use: 10 sen/10Kb

    Package D99: RM99/month

    Package D120:

    RM120/month

    DiGi to DiGi

    25 sen/MMS (usage less than RM123)Free (usage more than RM123)

    DiGi to Others50 sen/SMS

    Web and WAP browsingPay-on-use:

    RM0-RM30 10 sen/10Kb RM30.01-RM50 8 sen/10Kb RM50.01-RM149 5sen/10Kb Above RM149 Free; charges

    capped at RM149/month

    (additional usage is ree)Data Lite Plan:

    RM25 monthly or 6MB Additional data usage 8 sen/

    10Kb.Charges capped at RM149/month

    (additional usage is ree)

    Data Unlimited Plan:RM99/month

    or unlimited data usage

    * Call charges in MalaysiaRates as at 7 September 2007

    Source: Company websites, Industry

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    MARKET COMPARISON

    Emergingeconomiesarewheremostothemobilegrowthnowresides.Giventhedierencesin

    PurchasingPowerParity(PPP)andGNIbetweenthedevelopedandemergingmarkets,handset

    pricesneedtobetargetedappropriately,thatis,whetherultraloworlowtiertakespriorityover

    advancedunctionalities.

    Theavailabilityoultralowpricedhandsetsinemergingmarketsromestablishedvendorssuchas

    MotorolaandNokiaindicatetheircommitmenttothesemarkets.Moreover,duetotheslimmargino

    ultralowpricedhandsets,vendorsneedtoachieveeconomiesoscaleorviablebusinessoering.

    Cellular Mobile Prices o ASEAN and Other Major Regional Economies

    (a) Cost of a LocalSMS (USD) 2006

    (b) OECD Low UserBasket (USD)

    (c) As % Monthly GNI (%) 2006

    Brunei Darussalam 0.03 7.11 n.a.Myanmar n.a. n.a. n.a.

    Singapore 0.03 6.14 0.3Hong Kong, SAR 0.03 2.2 0.1Malaysia 0.01 5.02 1.2Thailand 0.08 4.35 1.8China 0.01 2.9 2.0Indonesia 0.01 4.3 4.1Philippines 0.02 5.29 4.9India 0.03 2.39 4.0Vietnam 0.02 6.19 12.1Lao PDR 0.05 3.8 10.3Cambodia 0.03 5.08 16.1

    IntermsocellularmobilepriceamongtheASEANandothermajorregionaleconomies,Malaysia

    cellularphoneservicedoesnotappearcheap.TheOECDlowuserbasketpriceorMalaysiamobile

    isUSD5.02.ThisisjustbelowtheSingaporeOECDlowuserbasketpriceoUSD6.14.Intermso

    mobilecellularpricesaspercentomonthlygrossmonthlyincomepercapita,theMalaysianlevelis

    1.2%comparedtoSingapores0.3%.

    Top 10 Asia Pacifc Countries by Net Adds, 1Q-07

    Rank CountryNet Adds(million)

    TotalSubscribers

    (million)

    1 China 19.5 465.2

    2 India 16.1 153.5

    3 Pakistan 7.0 55.5

    4 Indonesia 5.4 65.6

    5 Thailand 3.3 43.5

    6 Philippines 2.8 45.8

    7 Bangladesh 2.6 23.9

    8 Vietnam 2.0 19.4

    9 Japan 1.8 96.7

    10 Malaysia 1.1 20.7

    Source: Inorma Telecoms & Media Source: Inorma Telecoms & Media

    Top 10 Asia Pacifc Operators by Net Adds,1Q-07

    Rank Operator CountryNet Adds(million)

    1 China Mobile China 14.9

    2 NTT DoCoMo Japan 13.2

    3 Bharti India 5.2

    4 BSNL India 3.8

    5 China Unicom China 3.3

    6 Hutchison India 3.1

    7 Telkomsel Indonesia 3.0

    8 Telenor Pakistan 2.49 PMCL Pakistan 2.1

    10 Viettel Vietnam 1.7

    n.a.: not available

    (a) Cost o a local SMS = charge to consumer o sending a single SMS text within local exchange area(b) OECD mobile low-user basket = price o a standard basket o mobile monthly usage in USD set by OECD or 25 outgoing calls per month

    (on and o the network and to fxed line) in predetermined ratios and including 30 SMS messages.(c ) Percent (%) o monthly income = price o the OECD low-user mobile basket divided by per capita monthly income (World Bank,

    Atlas method, no PPP)Source: International Telecommunication Union

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    Top 25 Ranking: Mobile Subscriber Growth Markets 2006 to 2011

    Rank Country

    Subscriber Growth/

    Net Additions

    (2006 to 2011)(million)

    Compound Annual

    Growth Rate

    (CAGR 2006 to2011) (%)

    Cellular Mobile

    Subscription

    Penetration2Q-07 (%)

    1 India 357.7 37.8 16

    2 China 354.2 13.7 37

    3 Brazil 73.3 13.1 56

    4 Indonesia 72.7 20.6 31

    5 Nigeria 71.9 37.2 25

    6 US 65.8 5.8 81

    7 Pakistan 58.2 40.9 37

    8 Mexico 46.6 14.6 579 Bangladesh 45.0 43.1 19

    10 Iran 32.6 40.7 25

    11 Russia 28.2 4.3 113

    12 Egypt 27.3 24.6 29

    13 Philippines 26.4 12.5 53

    14 Turkey 18.3 7.2 80

    15 Thailand 18.0 10.5 72

    16 Morocco 16.6 18.5 52

    17 Ukraine 14.8 13.2 109

    18 Japan 14.2 2.8 77

    19 Argentina 13.9 10.2 86

    20 Iraq 13.8 90.3 35

    21 Peru 12.7 26.8 39

    22 Saudi Arabia 10.4 12.2 88

    23 Venezuela 10.2 12.7 81

    24 South Arica 9.5 5.0 89

    25 Canada 9.0 9.1 57

    Source: Portio Research, Inorma Telecoms & Media, International Telecommunication Union

    Mobile Subscriptions by Region

    RegionAnnual

    Change (%)Penetration Rate

    2Q-07 (%)

    Asia Pacic 29 32

    Arica 45 25

    Latin America 24 60

    Middle East 31 49

    Eastern Europe 22 90

    Western Europe 9 111

    North America 11 78Source: Portio Research

    In the Asia Pacic region, there is a

    growing trend o regulatory reorms and

    liberalisation.One o the main drivers has

    been the recognition that a sophisticated

    and advanced telecommunications sector

    will bring greater economic growth and

    development.

    Thisregionhousesthreeothelargestmobile

    companies in the world China Mobile,

    ChinaUnicom and JapansNTTDoCoMo, a

    testimonytotheburgeoningAsianmarket.

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    Top 20 Cellular Subscribers and Network in Asia Pacifc as at 1Q 2007

    Rank Operator Country SystemSubscribers (million) Annual

    Change(%)

    1Q-06 1Q-07

    1 China Mobile China GSM900/1800 261 316 21

    2 China Unicom China GSM900 99 110 11

    3 Bharti Airtel India GSM900/1800 20 37 85

    4 NTT DoCoMo Japan WCDMA2100 23 36 57

    5 Telkomsel Indonesia GSM900/1800 24 35 46

    6 BSNL India GSM900 17 27 59

    7 KDDI Japan CDMA800 23 27 17

    8 Hutchison India GSM900/1800 15 26 73

    9 Smart Communications Philippines GSM900/1800 21 25 19

    10 PMCL Pakistan GSM900 14 25 79

    11 AIS Thailand GSM900 17 21 24

    12 Reliance Communications India CDMA800 15 21 40

    13 SK Telecom South Korea CDMA800 20 21 5

    14 NTT DoCoMo Japan PDC800/1500 28 17 -39

    15 Globe Telecom Philippines GSM900/1800 13 17 31

    16 Indosat Indonesia GSM900/1800 12 16 33

    17 Idea Cellular India GSM900/1800 7 14 100

    18 DTAC Thailand GSM1800 10 13 3019 KTF South Korea CDMA1700 12 13 8.3

    20 GrameenPhone Bangladesh GSM900/1800 6 12 100

    27 Maxis Communications Malaysia GSM900/1800 8 8 0

    34 Telekom Malaysia (Celcom) Malaysia GSM900/1800 7 6 -14

    37 DiGi Malaysia GSM1800 5 6 20

    Source: Asia Pacifc Mobile, Inorma Telecoms & Media

    New Products and Services in Malaysia

    Inconclusion,theMalaysianenvironmentisconsideredvibrant,andnewservicesareexpectedtocomeonboardaswhatishappeninginoverseasmobilemarketswhereawholerangeowebbased

    applicationsandotherservicesinquadrupleplayaretakingoortryingtoestablishthemselvesas

    viablebusinessmodels.

    Already collaborative arrangements are starting o inmanyways todierentiate the mobile

    marketurtheroreconomic,competitiveandservicesadvantages.Themainthingtokeepinmind

    ashowisbeingdonebyoverseasplayersistheactthatinorderorthecustomertoorkouttheir

    ringgit,thecontentandapplicationsdevelopedhastosuittheirneeds,asideromsmoothdelivery

    eaturessuchasuserriendliness,andhandsetavailability.

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    0

    Asdataservicesinthemobilespacedevelopsurther,therearelikelytoemergecrosssectorservice

    provision issues which may require regulatory intervention. Towards this end, the Malaysian

    CommunicationsandMultimediaAct,whichistherstconvergencelawoitskindintroducedin

    1998/1999isreadytotackletheissuesgoingorward.Soar,thelawprovidesaoundationregulatory

    regimeacilitatingalevelplayingeldoroldandnewentrantsalikeandalsocomplicatedissuesocrosssectororconvergingserviceandproductoeringssuchasIPTV,mobileTVandMobileVirtual

    NetworkOperators(MVNOs).

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    33

    Enquiries

    Please contact the Market Research team:

    Yee Sye Chung (Head)

    Mooi Mee Mee

    Sharmila Manoharan

    Azrita Abdul Kadir

    Nadzrah Mazuriah Mohamed

    Siti Nailah Kamarudin

    Nurul Izza Saaman

    [email protected]

    Malaysian Communications and Multimedia Commission (SKMM)

    Off Persiaran Multimedia

    63000 Cyberjaya

    Selangor Darul Ehsan

    Telephone: +603 8688 8000Facsimile: ++603 8688 1000

    E-mail: [email protected]

    Website : www.mcmc.gov.my

    Freephone number: 1-800-888-030

    Northern Regional Office

    Unit 3, Level 11

    Menara UMNO

    128, Jalan Macalister

    10400 Pulau PinangTel: (604) 227 1657

    Fax: (604) 227 1650

    Eastern Regional Office

    B8004 Tingkat 1

    Sri Kuantan Square

    Jalan Telok Sisek

    25200 Kuantan

    Pahang

    Tel: (609) 515 0078

    Fax: (609) 515 7566

    Southern Regional Office

    Suite 7A, Level 7

    Menara Ansar

    Jalan Trus

    80000 Johor Baru

    Johor

    Tel: (607) 226 6700

    Fax: (607) 227 8700

    CONTACT US

    Sabah Regional Office

    6-10-10, Tingkat 10

    No. 6, Menara MAA

    Lorong Api-Api, Api-Api Centre

    88000 Kota KinabaluSabah

    Tel: (6088) 270 550

    Fax: (6088) 253 205

    Sandakan Branch Office

    Lot No.7, Block 30

    Bandar Indah Phase 6, Batu 4

    90000 Jalan Utara

    Sandakan, Sabah

    Tel: (6089) 227 350

    Fax: (6089) 227 352

    Sarawak Regional Office

    Level 5 (North), Wisma STA

    26, Jalan Datuk Abang

    Abdul Rahim

    93450 Kuching

    Sarawak

    Tel: (6082) 331 900

    Fax: (6082) 331 901

    Miri Branch Office

    Lot 1385 (1st Floor) Block 10

    Centre Point Commercial Centre

    (Phase 2)

    98000 MiriSarawak

    Tel: (6085) 417 400 / 600

    Fax: (6085) 417 900

    Central Regional Office

    Level 17, Wisma SunwayMas

    1, Jalan Tengku Ampuan

    Zabedah C9/C, Section 9

    40100 Shah Alam

    Selangor

    Tel: (603) 5518 7701

    Fax: (603) 5518 771

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