The Gearbox of Mobile Value-Added Service -- Mobile Payment

The Gearbox of Mobile Value-Added Service -- Mobile Payment

The Gearbox of Mobile Value-Added ServicesThe Gearbox of Mobile Value-Added Services- Mobile Payment- Mobile Payment

Jeffrey Wu

Vice President of Suntek GroupMarch, 2004

1.1. Analysis of China wireless Analysis of China wireless telecom markettelecom market

85. 25

0 144

0

206

7. 16

250

19. 06

0

50

100

150

200

250

300

Subscribers（Million）

2000 2001 2002 2003

GSM CDMA

Resource from ： CMII

China Mobile Subscribers Growth 2000-2003

Resource from ： CMII

Global GSM subscribers distribution

China, 250, 25%

Asia(ex China),120, 12%

Global(ex Asia),630, 63%

ChinaAsia(ex China)Global(ex Asia)

Unit：Million

Unit：MillionChina, 19.06,

20%

Asia(ex China),20.94, 22%

Global(exAsia), 54.5,

58%

ChinaAsia(ex China)Global(ex Asia)

Resource from ： CMII

Global CDMA subscribers distribution

Revenue of China Telecom Industry: $ 62.4 billion , 12.7% higher than 2002’s

Total China telecom subscribers : 500million

Mobile phone subscribers reached 270million,surpass telephone subscribers

Both two take top positions in the world.

Major achievements of 2003

2. 2. Value-added serviceValue-added service -- --

Driving forces of wireless telecom marketDriving forces of wireless telecom market

Trend of Mobile Value-Added Service Development

• MMS subscribers will go up 50%.

• Total market value of IVR service will reach $ 360 million

• Mobile game subscribers reach to 100million.

• Annual income of mobile game will breakthrough $ 240million.

The expanding speed is the leading place in Asia area. Predictably, the growth rate in 2002 － 2006 is 85%,revenue will reach $ 860million in 2006.

China Value-added service situation

– APRU of China Carriers is around RMB 76 Yuan. – IDD market came to shrink, local-call market gone

stable , but mobile market and data service extremely rising up.

– The strategy of China carriers change from following the international telecom trend to some extent leading the trend.

China value-added service market trend

China value-added service market trend

– Slow down the growth of line phone services

– More amusements and more applications.

– Wireless data services are the most important growth area

– Complication of China telecom industry value chain

Resource from: IDC

Mobile value-added service market forecast in ASIA

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Million

2002 2003 2004 2005 2006

AsiaChina

3. Value-Added Service Aspect3. Value-Added Service Aspect

Value-added service aspect

• Mainly 6 kinds of value-added service in China– Message : SMS, MMS– Transaction :Wireless payment – Game :KJAVA,BREW– Location-Based Services :GPS one– Browsing services: WAP– Multi-media E-mail services: IMAP4

Carriers status

Based on GPRS network

Brand: Monternet , M-Zone, Uni-Info ,……. Services: SMS, MMS, Mobile e-commerce, game, Mobile Stock Trading, Mobile Banking,……

Based on CDMA 1X network

4. Issues 4. Issues

• Billing for wireless value-added service be much more complex

• Risk for small CPs or SPs to lose money from variable service subscribers

• No freedom of movement to manage personal and business transactions

• Time-save issue in managing information need

Issues of value-added service in China

• Killer Application— Mobile payment services

Major solutions in China

• Bring out scale benefits for Carriers and related industry

• Bank plays an important role • launched similar business modes • Less practical applications under services • Unclear long-term developing objective

Mobile payment service status in China

5. Mobile Payment Service Case5. Mobile Payment Service Case – – Golden Wallet systemGolden Wallet system

Golden Wallet Payment system

– A safe multi-access platform including GPRS,CDMA, WAP, Kjava, Brew, Internet and Voice.

– Provide merchants and mobile subscribers to collect money and finish real-time payment.

– Create a framework for standardized, secure, and authenticated mobile payments process.

Mobile payment

• Goldenchina Telecom service Co., Ltd.

National first-class

Large Service provider

Unified information telecom service

• Characteristics of Gold Wallet system– Building own Brand “Gold Wallet” – Advanced telecom technology– Own knowledge property right– Secure network and multi-access devices – Register easily and use conveniently – For individual and merchant – Various and diversified applications – Alliance with China Bank Union– High level of customers’ satisfaction

Value-added service operation in Golden china

Golden Wallet Applications Prepaid card Mobile bill Phone bill Payment Insurance ……….

• Shopping • Internet

shopping • Mobile post• ………… • Loyalty score

• History check• Reward• Personality• ………….

• Service fee• Information fee• Game fee• Transaction fee• …………

• Sports lottery• Soccer lottery• Welfare lottery• …………..

• Prepaid • Payment• E-lottery• E-commence• CRM• Service

Upgrading• ………………

0

2000

4000

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Million

2002 2003 2004 2005 2006

AsiaChina

• In 2006, 300 million mobile subscribers will benefit from this service

• Total market capacity reaches $55billion

Mobile payment service market trend

Mobile payment service market forecast in ASIA

6. The Gearbox of 6. The Gearbox of Mobile Value-Added ServiceMobile Value-Added Service

The Gearbox

• Mobile payments are soon becoming a reality and will have an irreversible positive impact on the Telecom Industry.

• Mobile payments will empower end users with convenience and choice by wireless devices.

• Mobile payments will be seamless integration with mobile communications industry and the financial services industry .

• Mobile payment create important, long-term value in developing the wireless communication business.

The Gearbox

Bright future in China mobile value-added service market

• China is gearing up for a shindig that will rock the mobile value-added service sector.

• China has been transferring from one country of “Biggest market” to “most Applications”.

• In 2004, China mobile payment market is focusing on convenient, security, high-speed and different terminal to be successful.

• More and more famous overseas organizations to participate in this process.

A bright future ahead of you in China!

Thank youThank you