Market intelligence and analysis on mobile content - Informa ...

MEET OUR ANALYSTSGuillermo Escofet, Senior AnalystIn his six years at Informa, Guillermo Escofethas built up extensive expertise in the areaof mobile data services, having first focusedon location-based services, followed byenterprise services <strong>and</strong> messaging, <strong>and</strong> nowmobile content <strong>and</strong> application services ingeneral.guillermo.escofet@informa.comPamela Clark-Dickson, Senior AnalystPamela is a senior analyst for InformaTelecoms & Media’s Mobile Content &Applications Intelligence Centre. Her areasof expertise include all aspects of mobile messaging,including SMS, MMS, mobile e-mail,mobile IM <strong>and</strong> voice SMS.pamela.clark-dickson@informa.comShailendra P<strong>and</strong>ey, Senior AnalystShailendra is a senior analyst <strong>and</strong> coversmobile content <strong>and</strong> applications at InformaTelecoms & Media. Shailendra provides<strong>analysis</strong> on topics including mobile music,games, TV/video, payments, Internet, marketing<strong>and</strong> advertising, <strong>and</strong> UGC <strong>and</strong> socialnetworking.shailendra.p<strong>and</strong>ey@informa.comJamie Moss, Senior AnalystJamie Moss supplies <strong>analysis</strong> <strong>and</strong> commentaryon the market for wireless data services.Recent topics researched by Jamie includethe mobile internet <strong>and</strong> location-basedservices <strong>and</strong> he is soon to turn his attentionto the subject of machine-to-machinecommunications.jamie.moss@informa.comCamille Mendler, Head of EnterpriseVerticalsCamille spearheads the new Enterprise Verticalsteam at Informa Telecoms & Media. She identifies<strong>and</strong> validates new business models in communications-intensiveindustries, focusing on the monetizationof cloud computing, Ethernet, mobility<strong>and</strong> M2M technologies in verticalized contexts.camille.mendler@informa.comMarcus Johnson, Research AnalystMarcus is a research analyst <strong>and</strong> member ofthe Mobile Content <strong>and</strong> Applications (MCA)<strong>and</strong> H<strong>and</strong>sets <strong>and</strong> Devices teams at Informa.He is responsible for the data collection <strong>and</strong><strong>analysis</strong> of value-added services (VAS) <strong>and</strong>mobile devices.marcus.johnson@informa.comInforma Telecoms & Media analysts regularly attend industry conferences, either to deliver presentations, chair a session or simply toresearch a specific topic. Below we list those events that our analysts are due to attend over the coming months.Please e-mail the relevant analyst directly if you would like to set up a meeting at or around one of the conferences.Event City, Country Date Website AnalystRich Communications 2011 Munich, Germany 25-26 Oct www.rich-communication.com pamela.clark-dickson@informa.comForumOxford: Mobile Apps Oxford, UK 28 Oct www.conted.ox.ac.uk/courses/details.php?id=O10C846H6J guillermo.escofet@informa.com<strong>and</strong> Technologies ConferenceTelematics Munich 2011 Munich, Germany 9-10 Nov www.telematicsupdate.com/munich/index.shtml jamie.moss@informa.comIndustry Outlook 2012 London, UK 24 Nov www.industry-outlook.com jamie.moss@informa.comMobile VAS Conference St Petersburg, Russia 24-25 Nov www.vasforum.ru/eng/vas.html guillermo.escofet@informa.comwww.informatm.com© 2011 Informa UK Ltd. All rights reserved.

ContentsAnalysisCurrent trends in mobile application store content....................................................... 1Broadcasters’ social-media strategies: MTV................................................................. 15DataGlobal, deployed mobile location services, selected operators, 4Q11........................ 23Global, mobile-instant-messaging prices, selected operators, 4Q11.......................... 30Mobile-content-<strong>and</strong>-application deals, 6-Oct to 19-Oct 11......................................... 35Mobile content-<strong>and</strong>-application-service/usage-data announcements, 6-Oct to 19-Oct 11...............................................................................................................................36Global messaging announcements, 4-Oct - 19-Oct 2011............................................ 38News In BriefNews ................................................................................................................................39CommentWith its prospects doubtful, WAC’s best bet is to focus on OneAPI aggregation, saysGuillermo Escofet............................................................................................................ 46BlackBerry outage: What went wrong, <strong>and</strong> what can RIM learn from theincident?...........................................................................................................................50www.informatm.com© 2011 Informa Telecoms & Media

Current trends in mobile applicationstore contentAnalysisJamie MossKey points• The number of items in the Apple App Store increased by 200% between 4Q09 <strong>and</strong>2Q11, to reach a total of 421,000 apps. This equated to the addition of 281,000 apps toApple’s catalog.• The number of items in the Android <strong>Market</strong> increased by around 1,100% between4Q09 <strong>and</strong> 2Q11, to reach a total of 215,000 apps. This equated to the addition of nearly200,000 apps to that store’s catalog.• The number of items in the BlackBerry App World increased by around 800% between4Q09 <strong>and</strong> 2Q11, to reach a total of 36,000 apps. This equated to the addition of 32,000apps to RIM’s catalog.• There is an almost-ubiquitous strength across all three stores in their games category,ubiquitously strong growth of all three stores’ books category; <strong>and</strong> strong growth incontent <strong>and</strong> personalization-related items in the stores that offer them.• Tablet-specific developer initiatives may help to drive a secondary parallel wave ofapplications store content development.• The content mix for the three biggest OS-based mobile applications stores now seemto have become set; <strong>and</strong> none of those stores are showing any signs that the numberof apps they host may start to plateau.Mobile application availabilityMobile application category creation is at the discretion of individual mobile applicationstores, while the categorization of each mobile application itself is ultimately at the discretionof its respective developer. As categorization is a subjective process, there can be greatvariation in the relevance of the applications that are listed within each category of a store –as end users frequently discover.Individual applications sometimes fall between categories or sit across multiple ones, withthere being no clear “correct” placement for them. So it can be easy for them to be accidentallymisclassified. Furthermore, the content categories that a store consists of can also change overtime, fundamentally changing the apparent application make-up of that store going forward.As a consequence, analyzing mobile application store content both within <strong>and</strong> between anygiven store is not a precise science.Each of the stores examined here offers a different list of application categories. There is adifference in the number of those categories as well as in the titles used to describe them (seefig. 1).www.informatm.com © 2011 Informa Telecoms & Media 1

Fig. 1: Application store content categories: Apple App Store, Android <strong>Market</strong> <strong>and</strong> BlackBerryApp WorldSo, to avoid analyzing categories of apps that are only valid for a single store, InformaTelecoms & Media has normalized them: After examining each store, a shortlist of 14 commoncategories was chosen (see fig. 2), with each application category that the three stores containbeing classified as belonging to one of them (see fig. 3).www.informatm.com © 2011 Informa Telecoms & Media 2

Fig. 2: Informa Telecoms & Media’s normalized content categoriesFig. 3: Application store content by Informa Telecoms & Media classification: Apple App Store,Android <strong>Market</strong> <strong>and</strong> BlackBerry App WorldThis normalization process could also be considered a subjective process, so, for the benefitof the reader, the original category lists have been included alongside their Informa TM reclassifications.This <strong>analysis</strong> will cover the three most popular OS-based mobile application stores today – theApple App Store, the Android <strong>Market</strong> <strong>and</strong> the BlackBerry App World.Total mobile applications by storeApple App StoreThe number of applications in each of the three stores analyzed has grown enormously in thelast 18 months (see fig. 4), but none more so than Apple’s App Store. Launched in July 2008,the App Store featured 140,000 titles at the end of 4Q09 rising to 421,000 titles as of the endof 2Q11 – an increase of 280,000 apps for a total growth of 200% in the size of Apple’s appscatalog. Of the three stores featured, this is by far the largest increase in absolute terms – albeitnot in terms of percentage growth.www.informatm.com © 2011 Informa Telecoms & Media 3

Fig. 4: Total mobile applications in store: Apple App Store, Android <strong>Market</strong> <strong>and</strong> BlackBerry AppWorld, 4Q09-2Q11The Apple App Store has experienced rapid <strong>and</strong> constant growth in the size of its catalog eversince launch, growth which has been fuelled by the launch of a new model of the iPhoneas well as a major revision of Apple’s iOS operating system every third calendar quarter ofeach year since 2007. This has provided enhanced hardware features for new/replacementiPhone users, as well as new software features for legacy device owners; in turn providing acompelling reason for developers to keep launching new apps targeted at the entire iOS userbase.However, the single greatest reason for the constant growth of the store’s mobile applicationcatalog has to be to the revenue-generating opportunity for app developers. The iTunesDirect-to-Consumer (D2C) payment system that powers the App Store makes it easy fordevelopers to sell paid-for applications, encouraging an increasing number of developers tocreate applications <strong>and</strong> for existing developers to produce yet more. The launch of the iPad lineof tablets, which are more focused on the consumption of premium content, has also helpedto keep developer interest high in creating software for the App Store ecosystem.Android <strong>Market</strong>The Android <strong>Market</strong> was launched in October 2008, three months after Apple’s App Store. Thetouchscreen-driven Android OS is the most similar in functionality to Apple’s iOS, therebymaking the Android <strong>Market</strong> the most direct “competitor” to the App Store. Because of thesimilarity between the two operating systems, it is unlikely that an end user would own bothan iOS <strong>and</strong> an Android device, but it remains possible that an iOS or Android owner would alsoown a BlackBerry for its e-mail <strong>and</strong> messaging-specific features. As a consequence, the AppStore <strong>and</strong> the Android <strong>Market</strong> arguably form a more critical part of the total value propositionfor devices running iOs <strong>and</strong> Android, respectively, than the App World does for the BlackBerryOS – as RIM’s BlackBerry OS has other core strengths.At the end of 4Q09, the Android <strong>Market</strong> hosted 17,000 applications, just 12% as many asthe Apple App Store at that time. But during 4Q09, there was just one Android phone modelavailable. Since then, the number of models launched has grown rapidly <strong>and</strong> there have beeneight major revisions of the OS that have added new features (see fig. 5). The Android userbase has exp<strong>and</strong>ed enormously as a result, firing developer interest <strong>and</strong> helping the Android<strong>Market</strong>’s catalog to grow to 215,000 titles as of the end of 2Q11. This is a net increase of nearly200,000 apps, representing a huge growth rate of more than 1,100% over 18 months.www.informatm.com © 2011 Informa Telecoms & Media 4

Fig. 5: Android OS version historyAt present, the revenue-generating potential for developers is not as great with Android asit is with the App Store. But, as the popularity of Google Checkout improves – <strong>and</strong> as moreoperators offer carrier billing for the Android <strong>Market</strong>, the developer incentive to produce appswill only grow. It is actually quite incredible that the Android market has grown so muchwithout a mature mechanism by which developers can generate revenue from paid-for apps.This in itself is indicative of the expectation that developers have for the long-term potentialof Android; <strong>and</strong> the possibility for them to generate far greater revenues from the Android<strong>Market</strong> in the future – be it from paid-for apps or via advertising subsidization.BlackBerry App WorldRIM’s BlackBerry App World was launched in April 2009 with an enterprise-centric m<strong>and</strong>atethat was in-keeping with the traditional, corporate <strong>and</strong> e-mail/messaging-focused nature ofBlackBerry h<strong>and</strong>helds.The plan from the outset was to put less emphasis on volume in favor of the delivery of appsthat had a greater “business-level” of quality; the theory being that users would be moreinclined to pay money for them. This resulted in a low number of apps relative to Apple’sApp Store <strong>and</strong> far lower monthly growth rate in the number of new apps launched. At theend of 4Q09, almost eight months after the launch of the store, RIM’s BlackBerry App Worldcontained approximately 4,000 mobile applications.Over the next 18 months, however, this number grew by 32,000 titles, to a total of 36,000by the end of 2Q11. Due to the low number of apps at the start of the <strong>analysis</strong> period, thisrepresented an 800% increment in the size of RIM’s app catalog.BlackBerry h<strong>and</strong>helds have also become increasingly popular with consumers in recent years,exp<strong>and</strong>ing beyond the original target market of the BlackBerry to an extent that has been asurprise to RIM itself: At the end of 2Q11, 60% of BlackBerry users were private consumers.This has underst<strong>and</strong>ably resulted in the launch of many more consumer-centric applications,which are likely to account for a significant portion of the growth in the size of the App Worldcatalog.The growth in the number of mobile applications offered by RIM is also likely to be boosted,from the second half of 2011 onwards, by the PlayBook which launched in April 2011 withrelatively few applications available. Apps are a bonus feature for mobile phones <strong>and</strong> willalways be of secondary importance to the use of a phone for personal communications(making calls, sending texts, etc.). But for tablet computers, apps constitute the entirety oftheir software portfolio <strong>and</strong>, therefore, the value proposition of the device.The PlayBook is an OS-specific device <strong>and</strong>, as demonstrated for many years by the desktopcomputing market, the success of any operating system is based entirely on the variety <strong>and</strong>quality of the software that is available to run on it. For the sake of the competitiveness ofthe device, the number of PlayBook apps in the Blackberry App World is expected to growconsiderably; until the much-lauded PlayBook Android Player becomes available, the store isthe only source for users to acquire PlayBook software.Monthly net additions by storeNet additions represent the difference between the total number of apps from one quarter tothe next, in absolute terms – after taking into account both new apps launched <strong>and</strong> those thathave been discontinued. Consequently net-addition figures can be adversely affected by theperiodic clearing out of large numbers of discontinued apps. It is therefore important to notethat a lower rate of net additions need not necessarily mean that the number of new appslaunched each quarter is tailing off, or that a given store is losing popularity.www.informatm.com © 2011 Informa Telecoms & Media 5

Of the three stores analyzed, it is the Apple App Store that is still experiencing the largest netadditions, up to 20,000 new applications per month (see fig. 6). However, the variability inits number of net additions is also increasing. Throughout the 18-month period analyzed, thenumber of new apps added to Apple’s catalog was sometimes as low as six or seven thous<strong>and</strong>per month. This has meant that there have been times when the Android <strong>Market</strong> actuallyexperienced greater absolute net additions than the App Store, despite the Android <strong>Market</strong>still only having a catalog that was half as big as of the end of 2Q11.Fig. 6: Monthly net additions of apps: Apple App Store, Android <strong>Market</strong>, BlackBerry App World,Jan-10 to Jun-11While the Android <strong>Market</strong> has also experienced notable variation in the number of new appspublished each month – ranging from 4,000 to 17,000 – the general trend throughout the 18-month period analyzed has seen monthly net additions grow from an average of 8,000 at thestart of the period to 14,000 by the end (see fig. 7).Fig: 7: Android <strong>Market</strong>, linear trend of monthly net addition of apps, Jan-10 to Jun-11Meanwhile the general trend for Apple’s App Store is that the number of monthly netadditions is now gently falling, from an average of 19,000 at the start of the period to 12,000at the end (see fig. 8).www.informatm.com © 2011 Informa Telecoms & Media 6

Fig. 8: Apple App Store, linear trend of monthly net addition of apps, Jan-10 to Jun-11Of the three application stores analyzed, the BlackBerry App World has experienced the lowestnet additions in absolute terms, the greatest single number of apps added during the 18-month period analyzed being 4,000, which is equal to the lowest number added by either ofthe other stores during any given month. However, the BlackBerry App World has shown byfar the most consistent positive growth trend of the three with the lowest monthly fluctuationfrom that trend. At the start of the <strong>analysis</strong> period, the BlackBerry App World experiencedmonthly net additions of 600 apps, rising to an average of 3,500 by the end – with a clear trendto show that the size of its monthly net additions will only continue to grow (see fig. 9).Fig. 9: BlackBerry App World, linear trend of monthly net addition of apps, Jan-10 to Jun-11Month-on-month growth by storePercentage growth rates represent the change in the total size of a store’s app cataloguerelative to the previous month after all net additions have been taken into account. The largera store’s existing catalog, the smaller this percentage tends to become over time as, even ifthe number of monthly net additions remains consistent, they will come to account for anincreasingly small proportion of the overall total.Consistent monthly growth percentages indicate that, despite the increasing size of thestore, monthly net additions are getting larger at a rate that is sufficient to offset any suchpercentage decline. Meanwhile, an increasing growth rate is indicative of an especially largeincrease in the number of net additions <strong>and</strong> is most usually observed when a store is new<strong>and</strong>/or when the total number of apps in the store is numerically low.As the Apple App Store has largest app catalog – double the size of closest rival the Android<strong>Market</strong> at the end of 2Q11 – it is not surprising that it has experienced a declining growth ratewww.informatm.com © 2011 Informa Telecoms & Media 7

despite still having some of the largest monthly net additions in absolute terms. The monthlygrowth rate of the App Store catalogue has gone from 16% at the start of the 18-month periodanalyzed here to approximately 4% by the end (see fig. 10).Fig. 10: Apple App Store, monthly percentage growth of total apps, Jan-10 to Jun-11Because the Android <strong>Market</strong> was less mature in the size of its app catalog at the start ofthe <strong>analysis</strong> period <strong>and</strong> has since grown rapidly, it has actually experienced the greatestpercentage decline of the three stores in month-on-month growth rates over these 18 months(see fig. 11).Fig. 11: Monthly percentage growth of total apps: Apple App Store, Android <strong>Market</strong> <strong>and</strong>BlackBerry App World, Jan-10 to Jun-11Although substantial net additions resulted in a large initial percentage growth rate, <strong>and</strong> eventhough those net additions have continued to increase in absolute terms, the monthly growthrate of the Android <strong>Market</strong>’s apps catalog fell from 45% in 4Q09, to stabilize at around 9% in2Q11 (see fig. 12).www.informatm.com © 2011 Informa Telecoms & Media 8

the Android <strong>Market</strong> with a 17% share (see fig. 16). As with the Apple App Store, a minorityof the app categories account for the bulk of all store content: The top six ranking applicationcategories – games, books, business & productivity, entertainment, content & personalization<strong>and</strong> lifestyle – represent 82% of all Android <strong>Market</strong> apps.Fig. 16: Android <strong>Market</strong> content mix, 2Q11There is a less even distribution between the 14 categories identified by Informa Telecoms &Media in the Android <strong>Market</strong> than the Apple App Store. The apps fall into two distinct tiers:the top six that all have a share of between 17% <strong>and</strong> 12%, <strong>and</strong> the rest with shares of between5% <strong>and</strong> 1% share.The largest single change within the make-up of the Android <strong>Market</strong> has been theintroduction <strong>and</strong> growth of the books category. At the end of 4Q09, no books were reportedas being in the store, but, after the introduction of the category, it rose over the 18-monthperiod to become the second-largest with a 14% share (see fig. 17). There has also been amarked growth in the number of music <strong>and</strong> education apps, from nothing to a 2% <strong>and</strong> 3%share, respectively. In t<strong>and</strong>em with this, the size of the reference & information category hasdeclined greatly, from a 9% share at the end of 4Q09 to just 1% by the end of 2Q11, making itlikely that many of these apps have since been reclassified.Fig. 17: Android <strong>Market</strong> content mix over time, 4Q09-2Q11www.informatm.com © 2011 Informa Telecoms & Media 11

BlackBerry App WorldThe content mix of the BlackBerry App World has followed a very different trend from that ofthe Apple App Store <strong>and</strong> the Android <strong>Market</strong>. At the end of 4Q09, games were by far the largestcategory with a 27% share but, by the end of 2Q11, its share was only a third (9%) of what ithad been at the beginning of the <strong>analysis</strong> period. During the 18-month period, the books <strong>and</strong>the content & personalization categories grew to become the two largest with a 31% <strong>and</strong> 24%share, respectively, at the end of 2Q11. Most of the other application categories maintained aconsistent share of the total number of apps (see figs. 18 <strong>and</strong> 19).Fig. 18: BlackBerry App World content mix over time, 4Q09-2Q11Fig. 19: BlackBerry App World content mix, 2Q11This trend could be down to the specific limitations of BlackBerry h<strong>and</strong>helds <strong>and</strong> theBlackberry OS for supporting games. Games are the most popularly downloaded type of paidformobile application <strong>and</strong> it is common for the same games to be released in numerous stores.A great many games, however, have been conceived with a touchscreen interface in mindrather than a keypad. As the only BlackBerry model to feature a touchscreen is the Torch, thismay have resulted in the introduction of fewer new games titles for the BlackBerry App Worldcompared with its other content categories.Share of apps by categoryBy taking the 14 mobile application categories identified by Informa Telecoms & Media <strong>and</strong>adding the figures for each store together, it is possible to see which categories are the largestoverall – as well as what the distribution of them is between the three stores. It should bewww.informatm.com © 2011 Informa Telecoms & Media 12

noted that such totals do not represent the number of unique applications, however, as a greatmany titles are likely to have variants available for download within each store.Across the Apple App Store, Android <strong>Market</strong> <strong>and</strong> BlackBerry App World, a total of more than670,000 mobile applications were available at the end of 2Q11 (see fig. 20). Of these, the largestcategory was games which accounted for 16% of the total (over 104,000 apps): 62% of thesegames were published through the App Store, 35% via the Android <strong>Market</strong> <strong>and</strong> 3% through theBlackBerry App World. It is unsurprising that games should constitute the largest portion asmobile phones are a constant companion to the user <strong>and</strong> re-playable entertainment is oftensought to pass the time when travelling.Fig. 20: Share of apps by category: Apple App Store, Android <strong>Market</strong> <strong>and</strong> BlackBerry App World,2Q11What might be more surprising is the commonality of books as an application category,despite the fact that the screen of a mobile phone does not seem ideal for lengthy readingsessions. The rise of the books category to a prominent position within each of the threeapplication stores is also notable as it predates the launch of the Apple iPad, BlackBerryPlayBook <strong>and</strong> Android tablets by a considerable amount of time. But perhaps the build-up inthe sizes of each store’s book categories was in deliberate anticipation of their launch.The book category is nearly as large as that for games, accounting for 15% of applicationspublished across the three stores (just under 98,000 apps). The Apple App Store accounts forthe greatest share with 58%, followed by the Android <strong>Market</strong> at 31% <strong>and</strong> the BlackBerry AppWorld with 12% – the second-largest share of any individual category for the BlackBerry AppWorld.Unsurprisingly, the far greater size of the Apple App Store catalog means that it is responsiblefor publishing the majority of nearly every application category. This is with the exceptionof content & personalization, for which no category exists within the App Store, <strong>and</strong> (moreinterestingly) business & productivity applications. The Android <strong>Market</strong>place is the dominanthome of content <strong>and</strong> personalization apps, due to the customizable nature of the OS, <strong>and</strong> italso hosts the most business & productivity apps with a 50% share of the total.Informa viewpointDespite the high number of apps added to each application store over the 18-month period– in actual net additions <strong>and</strong> overall percentage increase – the content mix of each store hasremained remarkably constant. Consequently Informa Telecoms & Media has no reason tobelieve that this mix will change during the foreseeable future. The commonality with whichapps are created for each content category appears to have become set.Similarly, there have been no indications to date that the growth of each store in terms ofapps hosted has started to plateau. Enthusiasm in the smartphone market shows no signs ofabating <strong>and</strong> the developer communities for each store’s ecosystem are set to continue growingin the number of developers that are involved, the number of new apps submitted <strong>and</strong> theoverall size of each store’s catalog.www.informatm.com © 2011 Informa Telecoms & Media 13

As an application category, games is strong across all three stores, albeit less so for theBlackBerry App World. If there is truth in the supposition that 1) many mobile games aredesigned for touchscreen interfaces <strong>and</strong> 2) games developers are likely to produce variants ofthe same product across each store, then the advent of the BlackBerry PlayBook may result inan increase in representation of the games category in the App World. But, either way, gameswill continue to be a driving force for mobile application stores <strong>and</strong> in the attractiveness ofowning a phone that is capable of accessing the catalog of a store.During the 18-month period, there has also been a ubiquitous growth in the strength of bookscategory across all three stores. E-books as “apps” are not so much software as content –content that is text-based <strong>and</strong> which is readily compatible <strong>and</strong> easily viewable on a widevariety of devices. This makes it easy to publish books across many application stores withminimal additional effort. The proliferation of books may not necessarily be due to theirpopularity for download to mobile phones, but rather on their relative ease of creation.www.informatm.com © 2011 Informa Telecoms & Media 14

Broadcasters’ social-media strategies:MTVAnalysisEmma Jones• MTV has been at the forefront of using social media in broadcasting, incorporating itinto both its TV programming <strong>and</strong> online products as part of a strong focus on digitalactivity.• The network’s adoption of social media is designed to help it connect with its youngaudience, a large proportion of which use social networks regularly <strong>and</strong> want tointeract with their favorite shows. The broadcaster also sees social media as anopportunity to build new revenue streams.• MTV is active on numerous social networks including Facebook, Twitter, Tumblr <strong>and</strong>MySpace. It has also experimented with social-TV startups such as GetGlue, IntoNow<strong>and</strong> Starling TV. Some of these startups are incorporated into its second-screen app,WatchWith, which is designed to engage viewers on companion connected deviceswhile they watch MTV programs on the main TV screen.• A strong br<strong>and</strong> image <strong>and</strong> prominent social-media presence give MTV significantleverage for its shows. It is the fifth-most-popular br<strong>and</strong> on Facebook in terms of “likes,”with 28 million in October 2011. Higher ratings boost advertising revenues, <strong>and</strong> theadvertising <strong>and</strong> sponsorship opportunities on the WatchWith app provide additionalways for MTV to generate income from its social-media activity.• The network’s music products face competition from alternative music-televisiondistribution platforms, though, including online-video sites such as YouTube. And thesocial-networking activity around MTV’s entertainment programming by the shows’talent or fans can result in spoilers for viewers in countries where content is aired later,or damage the network’s reputation.OverviewMTV Networks, the flagship br<strong>and</strong> of the Viacom channel group, first sought to drive socialmediainteraction with its programming seven or eight years ago by encouraging SMSparticipation. Since then, it has launched numerous social-media initiatives to ensure that itkeeps pace with the changing habits of its young audience <strong>and</strong> has developed a strong digitalorientedculture throughout the br<strong>and</strong>.Responding to significant Internet competition in the music industry, MTV made a consciouseffort to ensure that its music products were supported online. MTV uses social media toprovide viewers with a deeper fan experience, offering exclusive content about artists <strong>and</strong>real-time information, as well as facilitating discussions via its digital-music platforms suchas Music Meter.In 2010, in advance of its 30th anniversary this year, MTV removed the “Music Television”logo from its tagline. The move was made to represent the network’s increasing investment inentertainment programming other than music, such as reality TV. Reality TV <strong>and</strong> live eventsare particularly well suited to social media because of the significant buzz <strong>and</strong> discussionsthey can generate around the events. MTV has seized this opportunity, using social networkssuch as Facebook, Twitter <strong>and</strong> Tumblr to promote shows <strong>and</strong> provide interactive experiencesfor viewers.The MTV “WatchWith” application for desktop, iPad <strong>and</strong> iPhone is the network’s attemptto ensure that it is reaching its younger audience, which is increasingly using secondscreens while watching TV. Integrating social-networking sites, the app gives users real-timeinformation related to the TV program, a move designed to complement rather than distractfrom the main viewing experience.Strategic goalsKeeping up with the ‘millennial’ generationAs a youth-focused network, MTV views social media as a fundamental tool in reaching itstarget audience of “millennials” – a generation that, among other things, has grown up withthe Internet <strong>and</strong> other digital media <strong>and</strong> communication technologies. Also labeled the MTVGeneration, these young viewers are the most active <strong>and</strong> engaged on social networks, withwww.informatm.com © 2011 Informa Telecoms & Media 15

90% of US viewers aged 18-24 expected to be using social networks by the end of this year,according to digital-marketing outfit e<strong>Market</strong>er (see fig. 1).Fig. 1: US, user penetration of social networks by age, 2009-2013MTV is also looking to capitalize on the trend among younger people of multitasking whilewatching TV, with viewers interacting with friends via a second screen to discuss the contentthey are watching. A study conducted by marketing company Digital Clarity in the UK foundthat 80% of under-25s used a second screen to communicate with friends while watchingTV. MTV’s aim is to capture <strong>and</strong> encourage this behavior, taking part in the discussion topromote its content, gain crucial feedback on its shows <strong>and</strong> enable deeper engagement withits audience.With a target audience of early adopters of new technologies, there is significant pressurefor MTV to identify <strong>and</strong> implement the latest trends. Underst<strong>and</strong>ing that those in its targetdemographic are typically frequent users of a variety of social networks, MTV follows a usercentric“360 degree” strategy, ensuring that its content is available at all times on multipleplatforms to maximize its reach <strong>and</strong> offer interactivity to its tech-savvy viewers. Throughcreating an enhanced experience, MTV hopes viewers will keep watching its content <strong>and</strong>facilitate deep engagement for super fans of its shows.Largely reliant on revenue from advertisers, MTV also sees social media as an opportunityto add more value to its advertisers <strong>and</strong> provide them with new avenues to reach theirtarget audience, such as through second-screen devices. With the advertising market still inrecovery, it remains very competitive, <strong>and</strong> MTV views social media as an important tool fordiversification.But MTV stresses that although it is keen to maximize revenue potential, it does not want it tobe at the expense of the viewers’ experience. Through implementing social-media initiatives,MTV hopes to further strengthen its br<strong>and</strong> <strong>and</strong> maintain its reputation as an innovativecontent provider for the youth demographic. Social media is seen by the network as a key toolin delivering more relevant content to its viewers, building momentum <strong>and</strong> converting casualviewers into heavy-use viewers.Business modelMTV uses multiple platforms to enhance its music services <strong>and</strong> provide leverage for its shows(see fig. 2).www.informatm.com © 2011 Informa Telecoms & Media 16

Fig. 2: Global, summary of MTV social-media activity, Oct-11Social musicMTV has understood the huge influence of the Internet <strong>and</strong> social media on the musicindustry <strong>and</strong> has adapted its business accordingly. In 2010, the broadcaster launched thedigital platform Music Meter, which ranks artists according to the online buzz they receive,accumulating mentions on Twitter, blog posts, streams <strong>and</strong> purchases to reflect the shift inhow people discover music. Updating the Meter daily, the service is designed to satisfy thecraving for real-time information among MTV’s youth audience.In March this year, MTV made the service available on the iPad <strong>and</strong> iPhone, as part of its 360-degree, multiplatform strategy.Further embracing the integration of the Web <strong>and</strong> music, MTV launched the O Music Awards(OMAs) in April to honor digital music with distinctions such as Best Tweet <strong>and</strong> Must FollowArtist on Twitter. Social media was at the heart of the awards show, with MTV encouragingfans to follow events on Facebook <strong>and</strong> Twitter <strong>and</strong> use an online voting system on socialmediasites, accessible via computers <strong>and</strong> mobile devices.www.informatm.com © 2011 Informa Telecoms & Media 17

Interactive <strong>and</strong> socially integrated programmingLive events rely heavily on viewers watching the broadcast as it airs, <strong>and</strong> social media providean opportunity to encourage this behavior. MTV uses social media extensively in connectionwith its live events such as the Video Music Awards (VMAs) to create a buzz around theprogram <strong>and</strong> to offer a more engaging experience for its viewers.For the 2010 VMAs, held in August this year, MTV teamed up with AttracTV to create asecond-screen experience on MTV.com that would coincide with the show. Br<strong>and</strong>ed the “VMAVIP Pass,” the site provided an online stream of the event with behind-the-scenes cameras.Users of the site were able to engage in interactive chat widgets <strong>and</strong> had access to real-timeannouncements, live blog posts <strong>and</strong> polls, designed to give them a sense of exclusivity <strong>and</strong>involvement. Twitter was integrated into the show, too, with a “Twitter Jockey” – a memberof MTV’s social-media team – working to generate buzz for the event by starting “trendingtopics” during the pre-show broadcast, MTV’s social-media team tweeting throughout theevent, <strong>and</strong> a “Twitter Tracker” measuring the popularity of topics on Twitter. MTV also tappedinto social-networking sites such as Facebook <strong>and</strong> Tumblr to push additional content from theshow, such as frequently updated photos <strong>and</strong> videos.MTV further extended its use of Twitter for the 2011 VMAs by launching a Hot Seat feature,which enabled fans to view the seating plan of the awards-ceremony venue <strong>and</strong> see whichcelebrities were tweeting the most <strong>and</strong> where they were tweeting from (see fig. 3).Fig. 3: Global, MTV Hot Seat screenshot, Aug-11MTV views Twitter <strong>and</strong> Facebook as vital platforms for generating buzz around its shows <strong>and</strong>connecting with its audience. In an attempt to maintain interest around its programming <strong>and</strong>increase ratings, MTV has Facebook fan pages for the majority of its shows, providing viewerswith access to exclusive content, videos <strong>and</strong> photos plus the chance to engage in discussionsabout the show. For some shows, such as reality-TV hit Jersey Shore, it also provides access tothe MTV shop, where viewers can purchase show merch<strong>and</strong>ise such as T-shirts. In July 2010,MTV launched a Jersey Shore Facebook game, where users can create avatar identities of thereality show’s cast members.Cast members of MTV shows are encouraged to use Twitter to engage with fans <strong>and</strong> promotethe show. With younger generations interacting with their friends on social-networking sites,MTV hopes its presence will encourage peer recommendation of content.Social-TV experimentationMTV has been bold with its social-media strategy, testing new techniques, creating its ownsocial-TV services <strong>and</strong> experimenting with a variety of platforms. In a bid to build momentumfor a new show, MTV adopted a fresh approach with social media when launching the USversion of popular UK teen drama Skins in January 2011. Instead of waiting for the show togain a certain number of fans <strong>and</strong> then creating a social-media strategy around it, MTV beganthe campaign three months before the show had even aired. It relied heavily on social mediato boost the show’s ratings <strong>and</strong> make it a similar hit in the US. The social-media campaignincluded Facebook, Twitter, Tumblr <strong>and</strong> even its own community site, skins.tv. The focus of thewww.informatm.com © 2011 Informa Telecoms & Media 18

strategy was less on generating revenue from the social-media initiatives directly <strong>and</strong> moreon promoting the show. The skins.tv site included a Facebook app that let users determinetheir “party personality.”MTV extended its social-media effort with Skins by creating its own check-in service witha social-TV startup, Starling TV, called MTV Skins Caption Bomb. The service was accessiblevia Facebook <strong>and</strong> enabled users to check in to the program <strong>and</strong> interact with each other <strong>and</strong>the show, <strong>and</strong> also win rewards. Rather than the conventional virtual rewards, MTV wantedto offer something more innovative <strong>and</strong> tangible, so it gave users free MP3 downloads fromb<strong>and</strong>s that had featured on the show, a move designed to give fans more of an incentive tointeract <strong>and</strong> also engage them more deeply with the show.In another new social-media partnership, MTV teamed up with IntoNow in February 2011to launch a social-entertainment campaign for Jersey Shore. Using the IntoNow mobile app,viewers of Jersey Shore can tag premiere airings of the program. Tagging a certain number ofpremieres offers fans the chance to win a trip to the next season’s premiere party, giving thema further reason to watch the show live.‘Co-viewing’ second-screen appMTV has invested in second-screen apps to ensure that it is reaching the increasing proportionof its young target audience that multitasks while watching TV. The network launched its free“co-viewing” app WatchWith on the iPad <strong>and</strong> desktop in July this year <strong>and</strong> on the iPhone amonth later (see fig. 4).Fig. 4: US, MTV WatchWith app, Oct-11MTV purposefully designed the app to be simple <strong>and</strong> easy to use so that it does not distractthe viewer from the content on the primary screen but rather complements it. The app,developed by mobile-media-technology specialist Rogue Paper, can be used for programs suchas Jersey Shore, Awkward, 16 & Pregnant <strong>and</strong> Teen Mom. Integrating Facebook <strong>and</strong> Twitter, theapp provides viewers with a social-TV experience <strong>and</strong> offers virtual “achievements,” such asvirtual badges, when interacting with the app. WatchWith also presents the best <strong>and</strong> mostlikedcomments on the show along with the most relevant comments to the user, such asthose of their friends <strong>and</strong> followers on their social-network accounts.ResultsA st<strong>and</strong>ardized measure for the success of social TV has yet to be discovered, but MTV hasreceived record-breaking results in ratings that can be largely credited to its use of socialmedia. The 2010 VMAs broadcast was a ratings triumph, attracting 11.4 million viewers inthe US, the biggest audience the network had managed since 2002. This was topped by the2011 VMAs, which attracted 12.4 million viewers, MTV’s largest audience in 27 years <strong>and</strong>the highest total of all nonsports cable broadcasts of 2011 to date. In addition to the recordbreakingaudience, the event ranked as the top cable broadcast of the year among viewersages 12 to 34, who made up 8.5 million of the total viewers (see fig. 5).www.informatm.com © 2011 Informa Telecoms & Media 19

Fig. 5: US, MTV Video Music Awards 2010-2011 performance fact sheetThe extensive social-media campaign surrounding the awards ceremony <strong>and</strong> the fact thatapproximately 70% of viewers were of the millennial generation – the heaviest users ofsocial media – suggest a significant correlation. They also signify MTV’s success in producingrelevant content for its target audience, which it is likely able to do more effectively as a resultof its extensive communication with its audience on social networks.In another sign that social media had a positive impact on the VMA broadcast’s ratings, MTVachieved a Twitter record of 8,868 tweets per second during the broadcast of the ceremony,the most tweets per second for a TV broadcast.MTV received industry recognition for its successful use of social media in March 2011 atthe Shorty Awards, an event that “honors the best individuals <strong>and</strong> organizations producingshort-form, real-time social media content.” MTV’s Twitter Tracker for the 2010 VMAs wonthe award for Best Integration of Social Media with Traditional Media.In 2Q11, MTV achieved four of the top five highest-rated cable broadcasts with its showsincluding Jersey Shore, Teen Mom <strong>and</strong> 2011 MTV Movie Awards.Reality show Jersey Shore has achieved huge ratings for MTV. It is the most popular showin the network’s history, with its third season averaging 7.7 million viewers. Receiving 14.3million “likes” on Facebook by October 2011, its ratings success must be partly attributed toMTV’s effective use of social media. The Jersey Shore Facebook game attracts approximately 2million users per month. The season 4 premiere of Jersey Shore broke a social-media record,according to SocialGuide, a website that measures social-TV activity. With 191,000 uniquecommentators <strong>and</strong> nearly 300,000 comments, the show scored the biggest social performanceof a TV-series episode. The huge success of Jersey Shore helped boost Viacom’s cable-networksrevenue to US$2.4 billion in 3Q11, a 16% year-on-year increase. Jersey Shore contributed to a14% increase in advertising revenues worldwide <strong>and</strong> 12% in the US.MTV has a strong presence on Facebook as the fifth-most-popular br<strong>and</strong>, with 28 million fanson its primary Facebook page in October 2011 (see fig. 6). This does not take into account thenumber of fans of its 80 other Facebook pages for its individual programs <strong>and</strong> characters –including all of these fan pages, the total amounts to more than 53 million.www.informatm.com © 2011 Informa Telecoms & Media 20

Fig. 6: Global, most-popular br<strong>and</strong>s on Facebook <strong>and</strong> Twitter, Oct-11MTV’s experimentation with social media paid off with the US launch of Skins, which gained55,000 “likes” on Facebook, 9,000 followers on Twitter <strong>and</strong> 2,500 followers on Tumblr, allbefore the show had aired. The skins.tv community hub received more than 5 million videostreamrequests <strong>and</strong> attracted 700,000 unique visitors. To put this into perspective, Jersey Shorehad 1,500 Facebook fans a week after it had aired. This demonstrates the ability to generatesignificant buzz around a program on social networks before it has even been broadcast.However, Skins’ popularity on social networks did not translate into long-term success forthe show: It was cancelled after its first season, deemed too controversial <strong>and</strong> explicit for USaudiences.The MTV Music Group has achieved significant success online – it was the most-visited onlinemusicdestination for February 2011, attracting just under 58 million unique views. MTVattributes a 121% year-on-year increase in Internet traffic to the site over the year in part tothe success of its social-media initiatives.Strategic threatsMTV has had record-breaking success with its social-media strategy in terms of broadcastratings <strong>and</strong> Twitter activity. With dedicated social-media resources within a global digitalmediateam, the network has the opportunity to continue this success <strong>and</strong> gain moreadvertising revenue as a result. However, MTV is reliant on its young audience, which istypically an easily distracted demographic that is continually adopting new technologies.The network will therefore need to keep working hard to maintain a presence on relevantplatforms <strong>and</strong> fend off competitors seeking to lure its target audience away by takingadvantage of innovative products <strong>and</strong> services (see fig. 7).www.informatm.com © 2011 Informa Telecoms & Media 21

Fig. 7: Global, MTV social-media SWOT <strong>analysis</strong>, Oct-11Informa viewpointHaving identified the particular importance of social media to its young demographic, MTVis in a prime position to capitalize on social TV. The network has been quick to spot theopportunities it presents <strong>and</strong> has moved fast to make social media a core component of itsdigital strategy.Receiving record TV ratings, social-media awards <strong>and</strong> the highest number of tweets per secondduring one of its broadcasts, MTV is clearly making the most of the tools at its disposal <strong>and</strong>is developing what could prove to be a winning formula. Taking risks <strong>and</strong> experimentingwith new platforms <strong>and</strong> strategies has undoubtedly paid off for the network. Whether thesecond-screen WatchWith app will receive similar record-breaking results remains to be seen,but with a multitasking, tech-savvy target audience, MTV certainly has the opportunity totriumph in this space, too.Operating in the fast-paced music industry <strong>and</strong> targeting the arguably fickle millennialgeneration, MTV cannot afford to be complacent with its social-media strategy <strong>and</strong>, tomaintain its success, must ensure that it continues innovating <strong>and</strong> pre-empting the latesttrends.www.informatm.com © 2011 Informa Telecoms & Media 22

Global, deployed mobile location services, selectedoperators, 4Q11DataCountry/regionAfricaOperator Service name Service type LocationmethodEygypt Vodafone Directoryassistance2121Nigeria MTN MTN Eye TrafficinformationLocalcurrencyLocalpricePrice(US$)No of Unit typeunitsLocal search n/a EGP 1.50 0.25 1 Minute/s Provides location information on restaurants,taxi services, etc...Notesn/a NGN n/a n/a n/a n/a Traffic service that recommends the quickestrouteSouth Africa MTN MTN Compass Local search n/a ZAR 0.63 0.08 1 Minute/s n/aAsia PacificMTN WhereRU Security n/a ZAR 12.49 1.66 1 Month/s Locates up to 10 consenting people via SMS,USSD or the InternetMTN 2MyAid Security n/a ZAR 12.49 1.66 1 Month/s Sends a distress SMS to four emergencycontacts. Each alert costs ZAR 2.Look 4 It Local search n/a ZAR 2.01 0.27 1 Minute/s Plus USSD/ZAR 1, USSD+SMS/ZAR 1.49PAYG,USSD+MMS map/ZAR 1.79Look 4 Me Friend finder n/a ZAR 11.70 1.56 1 Month/s Locates consenting people via SMS or theInternetLook 4 Help Security n/a ZAR 12.70 1.69 1 Month/s Sends a distress SMS to four emergencycontacts. Each alert is free. Incl. VATIndonesia Telkomsel Yoyo Trafficinformation /Local searchIndosatYoyoYoyoTrafficinformation /Local searchTrafficinformation /Local searchn/a IDR 2,500.00 0.29 1 Day/s Provides traffic maps <strong>and</strong> points of interestclose to the user. Also has a local chat feature.n/a IDR 15,000.00 1.72 1 Week/s Provides traffic maps <strong>and</strong> points of interestclose to the user. Also has a local chat feature.n/a IDR 50,000.00 5.72 1 Month/s Provides traffic maps <strong>and</strong> points of interestclose to the user. Also has a local chat feature.City Life Local search n/a IDR 1,000.00 0.11 1 Minute/s Not incl. VAT. SMSes are free.Location BasedServiceTelkomselTrackTelkomselTrackTelkomselWaveSecureMobinity.net(mobi<strong>Market</strong>)Local search n/a IDR 1,000.00 0.11 1 SMS Determines user location <strong>and</strong> provides relevantinformationLocal search /NavigationLocal search /NavigationGPS IDR 1,000.00 0.11 1 Day/s Finds closest points of interest, synced withGoogle MapsGPS IDR 5,000.00 0.57 1 Week/s Finds closest points of interest, synced withGoogle MapsSecurity GPS IDR 10,000.00 1.14 1 Month/s Locates lost phone <strong>and</strong> plots its locations on amapLocationbasedadvertisingi-Menu Local search /TrafficinformationJapan KDDI EZ Navi Walk Navigation /Local search /TrafficinformationEZ Navi Walk Navigation /Local search /TrafficinformationEZ Navi Walk Navigation /Local search /TrafficinformationEZ NaviPassenger SeatEZ NaviPassenger SeatNavigation /TrafficinformationNavigation /Trafficinformationn/a IDR 5,000.00 0.57 1 Month/s Offers SMS-based location adsn/a IDR n/a n/a n/a n/a Provides information on traffic <strong>and</strong> places ofinterestGPS JPY 0.00 0.00 n/a n/a Destination search <strong>and</strong> directions service. Somemaps free to view.GPS JPY 95.00 1.24 1 Day/s Destination search <strong>and</strong> directions service. Incl.taxGPS JPY 315.00 4.10 1 Month/s Destination search <strong>and</strong> directions service. Incl.taxGPS JPY 157.00 2.04 1 Day/s GPS car navigation. Incl. taxGPS JPY 315.00 4.10 1 Month/s GPS car navigation. Incl. taxEZ Guide Map Local search n/a JPY n/a n/a n/a n/a n/aDisasterEvacuationNaviSecurity NaviSecurity /NavigationFamilylocatorn/a JPY 0.00 0.00 n/a n/a Shelter map. Free service.n/a JPY 3.15 0.04 1 Update/s Per location fixwww.informatm.com © 2011 Informa Telecoms & Media 23

NTTDoCoMoSecurity NaviSecurity NaviEarthquakeEarly WarningEZ CarNavigationRun & Walk -Special LightRun & Walk -BasicRun & Walk -PremiumDoCoMo mapnavigationDoCoMo mapnavigationFamilylocatorFamilylocatorSecurity / SelflocatorNavigation /TrafficinformationHealth &fitnessHealth &fitnessHealth &fitnessNavigation /Local search /TrafficinformationNavigation /Local search /Trafficinformationn/a JPY 3.15 0.04 1 Update/s Area notification (if user enters or leavespredefined area)n/a JPY 3.15 0.04 1 Update/s Position confirmation emailn/a JPY n/a n/a n/a n/a n/an/a JPY n/a n/a n/a n/a Transfers the destination on user's phone totheir in-car sat navn/a JPY 0.00 0.00 n/a n/a Records user's distance <strong>and</strong> speed, whenwalking or runningn/a JPY 105.00 1.37 1 Month/s Records user's distance <strong>and</strong> speed, whenwalking or running. Incl. VATn/a JPY 315.00 4.10 1 Month/s Records user's distance <strong>and</strong> speed, whenwalking or running. Incl. VATGPS JPY 0.00 0.00 n/a n/a DoCoMo smartphone version is freeGPS JPY 315.00 4.10 1 Month/s i-mode versionAuto GPS Self locator GPS JPY 0.00 0.00 n/a n/a n/aDoCoMo DriveNetDoCoMo DriveNetNavigation /Local search /TrafficinformationNavigation /Local search /Trafficinformationi-area Navigation /Local search /TrafficinformationEasy SearchImadocoKokosekomu-iweb siteGPS JPY 0.00 0.00 n/a n/a n/aGPS JPY 315.00 4.10 1 Month/s n/an/a JPY 0.00 0.00 n/a n/a Free service that offers local search <strong>and</strong> trafficinformationFriend finder GPS/Cell-ID JPY 10.50 0.14 1 Update/s n/aSecurity /Familylocatore-cab Self locator /Local searchn/a JPY 262.50 3.42 1 Month/s Sends an emergency signal to alert users if theirfamily is in trouble.GPS JPY n/a n/a n/a n/a Sends user's location to attract the nearest cabALSOK Security GPS JPY n/a n/a n/a n/a Security service that monitors user via GPS. JPY10,500 to dispatch guardsExpert Amulet@ HELPNETSeamontzanmai - Havea nice leisure!Safety ZanmaiSelf locator /SecurityHealth &fitness /SecurityFamilylocator /SecurityGPS JPY n/a n/a n/a n/a Emergency service that locates user's positionusing GPSGPS JPY 315.00 4.10 1 Month/s Service for outdoor enthusiasts (sailing,climbing), using GPS to monitor activityGPS JPY n/a n/a n/a n/a Lets user's track family members for securityPit queue Security GPS JPY n/a n/a n/a n/a Emergency rescue serviceVehicle FinderLitee-LocationP Tsu hereEmiProfessionalFool - LightEmiProfessionalFool - St<strong>and</strong>ardMapismLocationSearchPackage IIMobility LIVEAsset/StafftrackerFamilylocator / SelflocatorFamilylocatorAsset/Stafftracker /SecurityAsset/Stafftracker /SecurityAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerGPS JPY 105.00 1.37 1 Month/s Locates the position of user's car on a mapGPS JPY 525.00 6.83 1 Month/s n/aGPS JPY 630.00 8.20 1 Month/s Family locator for young childrenGPS JPY 210.00 2.73 1 Month/s The Efumiru package is a suite of locationinformation management services. Additionalcost of JPY 102,000 to buy the software (incl.VAT)GPS JPY 525.00 6.83 1 Month/s The Efumiru package is a suite of locationinformation management services. Additionalcost of JPY 102,000 to buy the software (incl.VAT)GPS JPY n/a n/a n/a n/a Information management solutions fortelecommunications <strong>and</strong> other devicesGPS JPY n/a n/a n/a n/a Tracks sales <strong>and</strong> maintainance staffGPS JPY n/a n/a n/a n/a Tracks delivery vehicleswww.informatm.com © 2011 Informa Telecoms & Media 24

PhilippinesE. EuropeCzechRepublicSmartTelecomsTelefonicaO2Vehicle FinderNEO - Plan SVehicle FinderNEO - Plan MVehicle FinderNEO - Plan LDoco Car -St<strong>and</strong>ard PlanDoco Car -Message PlanDP2 ASPservicelocation -MobileDP2 ASPservicelocation - PCASP Corporate- Plan SASP Corporate- Plan 030ASP Corporate- Plan 090ASP Corporate- Plan 300e-Location/EXAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerAsset/Stafftracker /SecurityAsset/Stafftracker /SecurityAsset/Stafftracker /SecurityAsset/Stafftracker /SecurityAsset/StafftrackerTraffic Monitor TrafficinformationGPS JPY 8,400.00 109.29 1 Month/s Business management <strong>and</strong> sales personnelservice. JPY 52,500 intial cost, offering 500minutes per month.GPS JPY 36,750.00 478.16 1 Month/s Business management <strong>and</strong> sales personnelservice. JPY 157,500 intial cost, offering 2,500minutes per month.GPS JPY 63,000.00 819.71 1 Month/s Business management <strong>and</strong> sales personnelservice. JPY 210,000 intial cost, offering 5,000minutes per month.GPS JPY 6,510.00 84.70 1 Month/s Location information managementGPS JPY 8,085.00 105.20 1 Month/s Location information managementGPS JPY 1,050.00 13.66 1 Month/s Logistics, sales <strong>and</strong> maintainance packageGPS JPY 5,250.00 68.31 1 Month/s Logistics, sales <strong>and</strong> maintainance packageGPS JPY 31.50 0.41 1 Month/s 1 location search, incl. VAT. Personnel tracker.GPS JPY 1,260.00 16.39 1 Month/s 30 location searches, incl. VAT. Personneltracker.GPS JPY 1,470.00 19.13 1 Month/s 90 location searches, incl. VAT, Personneltracker.GPS JPY 2,520.00 32.79 1 Month/s 300 location searches, incl. VAT. Personneltracker.GPS JPY n/a n/a n/a n/a Corporate location informationGPS PHP n/a n/a n/a n/a n/aGoogle Maps, Navigation GPS CZK 30.00 1.69 1 Day/s Internet package which includes map services.Mapy.cz, NokiaCZK 15 for the first hour.MapsGoogle Maps,Mapy.cz, NokiaMapsGoogle Maps,Mapy.cz, NokiaMapsT-mobile GPS Locator Familylocator /Asset/Stafftracker /SecurityWhere is...T-MobileNavigatorNavigation GPS CZK 150.00 8.43 1 Month/s Internet package which includes map services.Including 2,250 location look-ups. Each extralook-up costs PHP2.25.Navigation GPS CZK 300.00 16.87 1 Month/s Internet package which includes map services.Including 2,250 location look-ups. Each extralook-up costs PHP2.25.Familylocator /Asset/StafftrackerCarPo Personal Familylocator /Asset/StafftrackerGPS DetectiveNowire GPSLocatorRadom HestiaREXlocalisationof peoplewith complexservicen/a CZK 120.00 6.75 1 Month/s Tracking service that locates user's family, car orpet.n/a CZK 4.80 0.27 1 Update/s Tracking service that locates user's family or car.After 1,000 updates price drops to CZK 3.48.Local search n/a CZK 3.60 0.20 1 SMS Local search service that find points of interest.Incl. VAT.Familylocator /Friendfinder /Asset/StafftrackerAsset/StafftrackerSecurity / SelflocatorSecurity /Familylocator /Asset/Stafftrackern/a CZK n/a n/a n/a n/a Monitors location of children <strong>and</strong> employeesn/a CZK n/a n/a n/a n/a Monitors location of family, friends oremployeesn/a CZK n/a n/a n/a n/a Tracks the location of employees in the fieldn/a CZK n/a n/a n/a n/a Emergency location servicen/a CZK n/a n/a n/a n/a Security services for children <strong>and</strong> the disabledT-Trace Self locator GPS CZK n/a n/a n/a n/a SMS communication of user's location, alongwith an MMS map.www.informatm.com © 2011 Informa Telecoms & Media 25

yLocator -Personal <strong>and</strong>Asset TrackingNajdiDeti.czWhere is theONIGPS/GSMlocation ofpersonsSD LocatorT-CarsPersonalTrackingContinuousmonitoring ofmobileAsset/Stafftracker /FamilylocatorFamilylocatorAsset/StafftrackerAsset/StafftrackerAsset/StafftrackerAsset/Stafftracker /Familylocator /TrafficinformationAsset/StafftrackerRussia Megafon Navigator Familylocator /Friendfinder / SelflocatorPol<strong>and</strong>OrangePolskaPlusn/a CZK n/a n/a n/a n/a n/an/a CZK n/a n/a n/a n/a SMS notifications on user's child's whereaboutsn/a CZK n/a n/a n/a n/a Locates user's mobile phone, with updates every10 minutes.GPS CZK n/a n/a n/a n/a Staff trackern/a CZK n/a n/a n/a n/a Enterprise LBSn/a CZK n/a n/a n/a n/a Tracks employees or the elderly.n/a CZK n/a n/a n/a n/a Staff trackern/a RUB 45.00 1.47 1 Month/s Location service. First 2 weeks are free. Users get10 locations per month. It is free to determineyour own location.Surrounding Local search n/a RUB 9.00 0.29 1 Update/s Search for points of interestTrackerMegaFon -Y<strong>and</strong>ex.MapsWatchMegafonNavigationNavigationOrangeNavigationOrangeNavigationOrangeNavigationOrangeWhere areyou?Where is thecild?Where is thecild?Where is thecild?What, Where,Which Way?FamilylocatorNavigation /Local search /TrafficinformationFamilylocator /Friend finderNavigation /Local search /TrafficinformationNavigation /Trafficinformation /Local searchNavigation /Trafficinformation /Local searchNavigation /Trafficinformation /Local searchNavigation /Trafficinformation /Local searchCell-ID RUB 0.00 0.00 n/a n/a Free servicen/a RUB 0.00 0.00 n/a n/a Free servicen/a RUB 2.00 0.07 1 Day/s Locates friends <strong>and</strong> family <strong>and</strong> sends users anupdate via SMS / MMSn/a RUB 2.00 0.07 1 Day/s Locates friends <strong>and</strong> family <strong>and</strong> sends users anupdate via SMS / MMSn/a PLN 10.07 3.22 1 Week/s Navigation, maps <strong>and</strong> trafficn/a PLN 25.19 8.05 1 Month/s Navigation, maps <strong>and</strong> trafficn/a PLN 150.68 48.17 12 Month/s Navigation, maps <strong>and</strong> trafficn/a PLN 245.99 78.63 24 Month/s Navigation, maps <strong>and</strong> trafficFriend finder n/a PLN 2.44 0.78 1 Update/s Helps users locate their friends individually oras a groupFamilylocatorFamilylocatorFamilylocatorWhat to see? Local search /Self locator /NavigationWhere is thechild?I know whereyou aren/a PLN 6.15 1.97 1 Month/s Users can browse the location <strong>and</strong> previousdestinations of their children. Includes 10updatesn/a PLN 1.23 0.39 2 Update/s Users can browse the location <strong>and</strong> previousdestinations of their children.n/a PLN 11.07 3.54 20 Update/s Users can browse the location <strong>and</strong> previousdestinations of their children.Local search n/a PLN 0.00 0.00 n/a n/a Free local search serviceFamilylocatorFamilylocatorn/a PLN 0.00 0.00 n/a n/a Free service which locates user's position <strong>and</strong>informs them of local sitesn/a PLN n/a n/a n/a n/a Fees charged according to SMS pricesn/a PLN 1.22 0.39 1 SMS n/aDrogowskaznik Local search GPS PLN 2.46 0.79 1 Week/s Free for the first weekDrogowskaznik Local search GPS PLN 6.15 1.97 1 Month/s Free for the first weekwww.informatm.com © 2011 Informa Telecoms & Media 26

Ukraine Kyivstar Tracker FamilylocatorL. AmericaMTSUkraineCell-ID UAH 2.00 0.25 1 Hour/s Via SMS, MMS or WAPMTS Locate Local search n/a UAH 0.80 0.10 1 SMS Locates nearby places of interestChild MonitorMobileY<strong>and</strong>ex.mapsFamilylocator /Friend finderSelf locator /Trafficinformation /Navigationn/a UAH 10.00 1.23 5 Update/s 10 updates/UAH 15, 20 updates/UAH 25, 100updates/UAH 50n/a UAH n/a n/a n/a n/a Provides satellite pictures of the city fornavigation <strong>and</strong> traffic updatesBrazil TIM Foursquare Self locator n/a BRL n/a n/a n/a n/a n/aVivo Vivo Co-Piloto Navigation /Local searchVivo Co-Piloto Navigation /Local searchGPS BRL 4.99 2.89 3 Day/s n/aGPS BRL 9.90 5.73 1 Month/s Free for the first monthMexico Movistar Ligamed Friend finder n/a MXN n/a n/a n/a n/a Users can Locate friends nearby, <strong>and</strong> chat withthemLocalízameFriendfinder /SecurityTelcel Telcel GPS Navigation /Local search /TrafficinformationTelcel GPS Navigation /Local search /TrafficinformationTelcel GPS Navigation /Local search /TrafficinformationTelcel GPS Navigation /Local search /TrafficinformationTelcel GPS Navigation /Local search /TrafficinformationTelcel GPS Navigation /Local search /TrafficinformationCell-ID MXN n/a n/a n/a n/a Locates friends <strong>and</strong> other Movistar usersGPS MXN 35.00 2.70 1 Day/s Provides turn-by-turn navigation, local points ofinterest <strong>and</strong> favourite locations. Incl. VATGPS MXN 60.00 4.62 1 Week/s Provides turn-by-turn navigation, local points ofinterest <strong>and</strong> favourite locations. Incl. VATGPS MXN 80.00 6.16 15 Day/s Provides turn-by-turn navigation, local points ofinterest <strong>and</strong> favourite locations. Incl. VATGPS MXN 140.21 10.80 1 Month/s Provides turn-by-turn navigation, local points ofinterest <strong>and</strong> favourite locations. Incl. VATGPS MXN 301.60 23.24 3 Month/s Provides turn-by-turn navigation, local points ofinterest <strong>and</strong> favourite locations. Incl. VATGPS MXN 503.34 38.79 6 Month/s Provides turn-by-turn navigation, local points ofinterest <strong>and</strong> favourite locations. Incl. VATArgentina Movistar Location Friend finder n/a ARS 1.00 0.24 1 Update/sMiddle EastPersonalGPS Guidance Navigation /Local search /Self locatorHow I travelSMSPersonalLocationPersonalTraffic AlertsIsrael Cellcom CellcomNwigtorn/a ARS 20.00 4.75 1 Month/s ARS 25 to download. Both prices are excl. VATNavigation n/a ARS 0.90 0.21 1 SMS Mobile transport guide. Public transportdirections cost ARS 0.50/SMSAsset/StafftrackerTrafficinformationNavigation /TrafficinformationPartner Orange GPS Navigation /Trafficinformationn/a ARS n/a n/a n/a n/a Tracks up to 10 personnel, with historicallocation informationn/a ARS 1.00 0.24 1 Update/s ARS 1/day subscription feen/a ILS n/a n/a n/a n/a Pre-installed navigation software givesdirections <strong>and</strong> offers traffic updatesGPS ILS 24.90 6.77 1 Month/s Directions with real-time traffic informationSaudi Arabia Mobily Mobile Map Navigation n/a SAR n/a n/a n/a n/a Displays different locations <strong>and</strong> sends them tofriendsSTCFriend FinderFriendfinder /FamilylocatorAmaken Local search /Self locatorLocation BasedServicesTurkey Turkccell Turkcell'sWhereTurkcell IBBTrafficn/a SAR n/a n/a n/a n/a n/an/a SAR 25.00 6.66 1 Month/s n/aLocal search n/a SAR n/a n/a n/a n/a Map-based service that locates places ofinterestSelf locator Cell-ID TRY 1.20 0.67 1 SMS n/aTrafficinformationn/a TRY 0.00 0.00 n/a n/a n/awww.informatm.com © 2011 Informa Telecoms & Media 27

VodafoneReach me by Familythe earthquake locatorTurkcellTurkcellCompassWhat's aroundme?Vodafone Taxi Local search /NavigationWhere am IreportUAE Etisalat Location BasedServicesN. AmericaCanadaRogersWirelessTelusMobilityTeleNav GPSNavigationGreenfinderRogersNavigatorTelusNavigatorTelusNavigatorResourceTrackerTrack <strong>and</strong>DispatchUS AT&T AT&TNavigatorW. EuropeAT&T FamilyMap - 2 peopleAT&T FamilyMap - 5 peoplen/a TRY 0.00 0.00 n/a n/a Informs the user of their family's locationLocal search n/a TRY 0.00 0.00 n/a n/a Free local search service that locates points ofinterestLocal search n/a TRY 0.40 0.22 1 Update/s n/aSelf locator /FamilylocatorSelf locator /Local searchNavigation /Local searchHealth &fitnessn/a TRY 0.00 0.00 n/a n/a Locates the closest taxi rank. Free to download<strong>and</strong> then data is charged.n/a TRY 0.40 0.22 1 Update/s Locates user's position <strong>and</strong> informs familymembers of where user isn/a AED 0.80 0.22 1 Update/s Mobile map service <strong>and</strong> points-of-interestsearchn/a CAD 10.00 10.02 1 Month/s Users get voice-assisted navigation, full colourmaps <strong>and</strong> place-of-interest search. First monthis free.GPS CAD 3.00 3.01 1 Month/s Tracks user's distance on the golf course,including hazardsNavigation GPS CAD 4.99 5.00 1 Month/s Voice-assisted navigation service with GoogleMaps <strong>and</strong> turn-by-turn directionsNavigation /Trafficinformation /Local searchNavigation /Trafficinformation /Local searchAsset/StafftrackerAsset/StafftrackerNavigation /TrafficinformationFamilylocatorFamilylocatorVerizon VZ Navigator Navigation /Local searchVZ Navigator Navigation /Local searchVZ Navigator Navigation /Local searchFamily LocatorFamilylocatorFrance SFR SFR GPS Navigation /TrafficinformationGermany T-Mobile NaviGate - DayUltd GermanyNaviGate - DayUltd AbroadNaviGate -Monthly FlatRateNavigation /TrafficinformationNavigation /TrafficinformationNavigation /TrafficinformationNAVIGON Navigation /Local search /TrafficinformationNAVIGON -Safety & RelaxPackageNAVIGON- PremiumPackageNAVIGON- Europe 20PackageNavigation /TrafficinformationNavigation /TrafficinformationNavigation /TrafficinformationGPS CAD 3.00 3.01 1 Day/s Location service featuring a self-locator, speechrecognition, turn-by-turn directions, trafficinformation, pedestrian navigation, local search<strong>and</strong> weather reports.GPS CAD 10.00 10.02 1 Month/s Location service featuring a self-locator, speechrecognition, turn-by-turn directions, trafficinformation, pedestrian navigation, local search<strong>and</strong> weather reports.GPS CAD n/a n/a n/a n/a Tracks mobile workersGPS CAD n/a n/a n/a n/a Tracks mobile workersGPS USD 9.99 9.99 1 Month/s Provides voice-guided <strong>and</strong> visual turn-by-turnGPS driving directions with automatic reroute,full-color maps, <strong>and</strong> real-time traffic alerts. Firstmonth is free.GPS USD 9.99 9.99 1 Month/s Users get to see a map of their child's location,<strong>and</strong> can schedule email or text alerts.GPS USD 14.99 14.99 1 Month/s Users get to see a map of their child's location,<strong>and</strong> can schedule email or text alerts.GPS USD 2.99 2.99 1 Day/s Local search, maps <strong>and</strong> voice-prompted turnby-turndirectionsGPS USD 4.99 4.99 1 Week/s Local search, maps <strong>and</strong> voice-prompted turnby-turndirectionsGPS USD 9.99 9.99 1 Month/s Local search, maps <strong>and</strong> voice-prompted turnby-turndirectionsGPS USD 9.99 9.99 1 Month/s Family locator serviceGPS EUR 2.50 3.45 1 Month/s Maps <strong>and</strong> routes, pedestrian navigation <strong>and</strong>weatherGPS EUR 0.99 1.37 1 Day/s Provides regularly updated online maps,congestion reports <strong>and</strong> weather informationGPS EUR 2.99 4.13 1 Day/s Provides regularly updated online maps,congestion reports <strong>and</strong> weather informationGPS EUR 4.99 6.89 1 Month/s Provides regularly updated online maps,congestion reports <strong>and</strong> weather informationGPS EUR 0.00 0.00 n/a n/a Free navigation softwareGPS EUR 9.95 13.73 1 Download/s Indicates the prescribed speed <strong>and</strong> fixed speedcameras <strong>and</strong> also provides early notice of theright lane.GPS EUR 9.95 13.73 1 Download/s 3D navigation that considers user's individualdriving style <strong>and</strong> recommends the best routeGPS EUR 19.95 27.53 1 Download/s Allows user to use their h<strong>and</strong>set as a navigationdevice outside the country.www.informatm.com © 2011 Informa Telecoms & Media 28

VodafoneNAVIGON - TrafficTraffic Package information /LIVENavigationNAVIGON - 3DPackageMobileNavigation -NaviFlatMobileNavigation- NaviFlatEuropeGPS EUR 19.95 27.53 1 Download/s Real-time traffic informationNavigation GPS EUR 19.95 27.53 1 Download/s L<strong>and</strong>scapes <strong>and</strong> cities are presented in 3DNavigation /Trafficinformation /Local searchNavigation /Trafficinformation /Local searchUK O2 O2 More LocationbasedadvertisingVodafoneVodafone satnavSource: Informa Telecoms & MediaNavigation /Local search /TrafficinformationGPS EUR 5.00 6.90 1 Month/s Navigation system with automatically updatedmaps <strong>and</strong> traffic-jam avoidance via GPS.Min. 24 months. Incl. Germany, Austria &Switzerl<strong>and</strong>.GPS EUR 9.95 13.73 1 Month/s Navigation system with automatically updatedmaps <strong>and</strong> traffic-jam avoidance via GPS. Min.24 months. Incl. Germany, Austria, Switzerl<strong>and</strong>,Belgium, Denmark, Finl<strong>and</strong>, France, Greece, UK,Italy, Netherl<strong>and</strong>s, Portugal, Sweden <strong>and</strong> SpainGPS EUR 0.00 0.00 n/a n/a Users receive location-based marketingmessagesGPS GBP 5.00 7.91 1 Month/s Maps <strong>and</strong> voice instructions help users navigateto local destinationswww.informatm.com © 2011 Informa Telecoms & Media 29

Global, mobile-instant-messaging prices, selectedoperators, 4Q11DataRegion/countryAfricaOperator Mobile IM br<strong>and</strong> Services Data inclusive Price (localcurrency)Egypt ECMS Nokia Messaging Service AIM; Google Talk; ICQ; OVI Chat;Windows Live Messenger; YahooEgypt ECMS Nokia Messaging Service AIM; Google Talk; ICQ; OVI Chat;Windows Live Messenger; YahooEgypt ECMS Nokia Messaging Service AIM; Google Talk; ICQ; OVI Chat;Windows Live Messenger; YahooEgypt ECMS Nokia Messaging Service AIM; Google Talk; ICQ; OVI Chat;Windows Live Messenger; YahooPricing modelPrice (US$)500MB EGP50.00 Per month 8.351.5GB EGP90.00 Per month 15.043GB EGP150.00 Per month 25.065MB EGP1.00 Per day 0.17Egypt Vodafone BlackBerry - Postpaid BlackBerry Messenger 200MB EGP100.00 Per month 16.71Egypt Vodafone BlackBerry - Prepaid BlackBerry Messenger 150MB EGP100.00 Per month 16.71Egypt Vodafone BlackBerry BlackBerry Messenger 5MB EGP5.00 Per day 0.84Kenya Safaricom MXit MXit 1MB KES8.00 n/a 0.08Kenya Safaricom BlackBerry BlackBerry Messenger Unlimited KES999.00 Per month 10.30Kenya Airtel BlackBerry BlackBerry Messenger; GoogleTalk; YahooUnlimited KES5,000.00 Per month 51.53Nigeria Glo Mobile Glo Direct Windows Live Messenger; Yahoo Per-KB NGN0.15 n/a 0.00Nigeria Glo Mobile BlackBerry Social BlackBerry Messenger; Yahoo Unlimited NGN100.00 Per day 0.64Nigeria Glo Mobile BlackBerry Social BlackBerry Messenger; Yahoo Unlimited NGN400.00 Per week 2.54Nigeria Glo Mobile BlackBerry Social BlackBerry Messenger; Yahoo Unlimited NGN1,200.00 Per month 7.63Nigeria Glo Mobile BIS Day BlackBerry Messenger Unlimited NGN300.00 Per day 1.91Nigeria Glo Mobile BIS Week BlackBerry Messenger Unlimited NGN900.00 Per week 5.72Nigeria Glo Mobile BIS Month BlackBerry Messenger Unlimited NGN2,800.00 Per month 17.80Nigeria MTN BIS Week BlackBerry Messenger Unlimited NGN1,000.00 Per week 6.36Nigeria MTN BIS Month BlackBerry Messenger Unlimited NGN3,000.00 Per month 19.07Nigeria MTN BIS Quarterly BlackBerry Messenger Unlimited NGN8,000.00 Per 3 months 50.85Nigeria MTN BlackBerry Messaging/Social BlackBerry Messenger Unlimited NGN450.00 Per week 2.86Nigeria MTN BlackBerry Messaging/Social BlackBerry Messenger Unlimited NGN1,500.00 Per month 9.53South Africa MTN PAYG BlackBerry BlackBerry Messenger; Other Unlimited ZAR2.00 Per day 0.27South Africa MTN PAYG BlackBerry BlackBerry Messenger; Other Unlimited ZAR59.00 Per month 7.84South Africa Vodacom Prepaid BlackBerry BlackBerry Messenger Unlimited ZAR59.00 Per month 7.84AsiaChina China Mobile Fetion Unlimited CNY5.00 Per month 0.78India Airtel Airtel Messenger ICQ; Windows Live Messenger;Yahoo; OtherIndia Airtel Weekly Personal Mail BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndia Airtel Monthly Personal Mail BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndia Airtel Weekly Internet-Mail Service BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndia Airtel Monthly Internet-Mail Service BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndia Airtel Monthly Enterprise-Mail Service BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooUnlimited INR50.00 Per month 1.04Unlimited INR80.00 Per week 1.66Unlimited INR299.00 Per month 6.22Unlimited INR100.00 Per week 2.08Unlimited INR399.00 Per month 8.30Unlimited INR899.00 Per month 18.71India Vodafone MSN @ Vodafone Windows Live Messenger Per-SMS INR3.00 n/a 0.06India Vodafone Yahoo Messenger Yahoo Per-SMS INR2.00 n/a 0.04India Vodafone Rediff & Indiatimes Rediff & Indiatimes Per-SMS INR3.00 n/a 0.06India Vodafone PAYG BIS 15 BlackBerry Messenger Unlimited INR15.00 Per day 0.31India Vodafone PAYG BIS 44 BlackBerry Messenger Unlimited INR44.00 Per 3 days 0.92India Vodafone PAYG BIS 100 BlackBerry Messenger Unlimited INR100.00 Per week 2.08India Vodafone PAYG BIS 399 BlackBerry Messenger Unlimited INR399.00 Per month 8.30India Vodafone BIS 299 BlackBerry Messenger Unlimited INR299.00 Per month 6.22India Vodafone BIS 599 BlackBerry Messenger Unlimited INR599.00 Per month 12.47India Vodafone BES 899 - Enterprise plus service BlackBerry Messenger Unlimited INR899.00 Per month 18.71Indonesia Indosat Nokia Messaging Service - Daily Google Talk; Windows LiveMessenger; YahooUnlimited IDR1,500.00 Per day 0.17www.informatm.com © 2011 Informa Telecoms & Media 30

Indonesia Indosat Nokia Messaging Service - Weekly Google Talk; Windows LiveMessenger; YahooUnlimited IDR35,000.00 Per month 4.01Indonesia Indosat i-fun i-fun 1KB IDR10.00 n/a 0.00Indonesia Indosat i-room i-room Unlimited IDR5,000.00 Per month 0.57Indonesia Indosat i-Chat i-Chat Per-SMS IDR250.00 n/a 0.03Indonesia Indosat mobinity.net Windows Live Messenger; Yahoo Unlimited IDR5,000.00 Per month 0.57Indonesia Indosat BlackBerry Mail & Chat BlackBerry Messenger; GoogleTalk; ICQ; Windows LiveMessenger; YahooIndonesia Indosat BlackBerry Mail & Chat BlackBerry Messenger; GoogleTalk; ICQ; Windows LiveMessenger; YahooIndonesia Indosat BlackBerry Mail & Chat BlackBerry Messenger; GoogleTalk; ICQ; Windows LiveMessenger; YahooUnlimited IDR2,000.00 Per day 0.23Unlimited IDR15,000.00 Per week 1.72Unlimited IDR45,000.00 Per month 5.15Indonesia Telkomsel Yahoo Koprol Yahoo Unlimited IDR1,000.00 Per day 0.11Indonesia Telkomsel Yahoo Koprol Yahoo Unlimited IDR3,000.00 Per week 0.34Indonesia Telkomsel Yahoo Koprol Yahoo Unlimited IDR10,000.00 Per month 1.14Indonesia Telkomsel Yahoo Messenger SMS Yahoo 10 SMS IDR1,000.00 Per day 0.11Indonesia Telkomsel Yahoo Messenger SMS Yahoo 20 SMS IDR1,500.00 Per 3 days 0.17Indonesia Telkomsel Yahoo Messenger SMS Yahoo 50 SMS IDR3,000.00 Per week 0.34Indonesia Telkomsel Yahoo Messenger SMS Yahoo 150 SMS IDR9,000.00 Per month 1.03Indonesia Telkomsel Armor Life Google Talk; Windows LiveMessenger; YahooIndonesia Telkomsel Armor Life Google Talk; Windows LiveMessenger; YahooIndonesia Telkomsel Armor Life Google Talk; Windows LiveMessenger; YahooUnlimited IDR1,000.00 Per day 0.11Unlimited IDR6,000.00 Per week 0.69Unlimited IDR30,000.00 Per month 3.43Indonesia Telkomsel Mango Mango Unlimited IDR2,000.00 Per day 0.23Indonesia Telkomsel Mango Mango Unlimited IDR10,000.00 Per week 1.14Indonesia Telkomsel Mango Mango Unlimited IDR35,000.00 Per month 4.01Indonesia Telkomsel T-Messenger T-Messenger Unlimited IDR5,000.00 Per day 0.57Indonesia Telkomsel T-Messenger T-Messenger Unlimited IDR20,000.00 Per week 2.29Indonesia Telkomsel T-Messenger T-Messenger Unlimited IDR50,000.00 Per month 5.72Indonesia Telkomsel TelkomselGo TelkomselGo Unlimited IDR1,000.00 Per day 0.11Indonesia Telkomsel TelkomselGo TelkomselGo Unlimited IDR6,000.00 Per week 0.69Indonesia Telkomsel TelkomselGo TelkomselGo Unlimited IDR20,000.00 Per month 2.29Indonesia Telkomsel Nokia Messaging Google Talk; OVI Chat; WindowsLive Messenger; YahooIndonesia Telkomsel Nokia Messaging Google Talk; OVI Chat; WindowsLive Messenger; YahooIndonesia Telkomsel Nokia Messaging Google Talk; OVI Chat; WindowsLive Messenger; YahooIndonesia Telkomsel BlackBerry Lifestyle (Chat &Social Networking)Indonesia Telkomsel BlackBerry Lifestyle (Chat &Social Networking)Indonesia Telkomsel BlackBerry Lifestyle (Chat &Social Networking)BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndonesia Telkomsel BlackBerry Business (Chat & Mail) BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndonesia Telkomsel BlackBerry Business (Chat & Mail) BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndonesia Telkomsel BlackBerry Business (Chat & Mail) BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooIndonesia Telkomsel BlackBerry Unlimited (FullService)Indonesia Telkomsel BlackBerry Unlimited (FullService)Indonesia Telkomsel BlackBerry Unlimited (FullService)Unlimited IDR1,000.00 Per day 0.11Unlimited IDR10,000.00 Per week 1.14Unlimited IDR25,000.00 Per month 2.86Unlimited IDR2,000.00 Per day 0.23Unlimited IDR15,000.00 Per week 1.72Unlimited IDR60,000.00 Per month 6.87Unlimited IDR3,000.00 Per day 0.34Unlimited IDR20,000.00 Per week 2.29Unlimited IDR80,000.00 Per month 9.16BlackBerry Messenger Unlimited IDR5,000.00 Per day 0.57BlackBerry Messenger Unlimited IDR35,000.00 Per week 4.01BlackBerry Messenger Unlimited IDR99,000.00 Per month 11.33Indonesia Telkomsel mig33, Nimbuzz, eBuddy Other Unlimited IDR500.00 Per day 0.06Indonesia Telkomsel mig33, Nimbuzz, eBuddy Other Unlimited IDR2,000.00 Per week 0.23Indonesia Telkomsel mig33, Nimbuzz, eBuddy Other Unlimited IDR8,000.00 Per month 0.92Philippines Globe SuperSurf - Prepaid Unlimited PHP50.00 Per day 1.16Philippines Globe SuperSurf - Prepaid Unlimited PHP220.00 Per 5 days 5.11Philippines Globe SuperSurf - Postpaid Unlimited PHP50.00 Per day 1.16www.informatm.com © 2011 Informa Telecoms & Media 31

Philippines Globe SuperSurf - Postpaid Unlimited PHP220.00 Per 5 days 5.11Philippines Globe SuperSurf - Postpaid Unlimited PHP999.00 Per month 23.20Philippines Globe SQUISH Windows Live Messenger; Yahoo Unlimited PHP15.00 Per day 0.35Philippines Globe SQUISH Windows Live Messenger; Yahoo Unlimited PHP30.00 Per 3 days 0.70Philippines Globe SQUISH Windows Live Messenger; Yahoo Unlimited PHP50.00 Per 5 days 1.16Philippines Globe SQUISH Windows Live Messenger; Yahoo Unlimited PHP100.00 Per month 2.32Philippines Smart Nimbuzz Other Unlimited PHP0.00 n/a 0.00Philippines Smart Yahoo Messenger Yahoo Per-SMS PHP2.50 n/a 0.06Philippines Smart Unli Yahoo Mail & Messenger Yahoo Unlimited PHP15.00 Per day 0.35Philippines Smart Chikka - UNLI plan Chikka Unlimited PHP20.00 Per day 0.46Philippines Smart Chikka Chikka 10 SMS PHP5.00 Per day 0.12Philippines Smart Chikka Chikka 20 SMS PHP10.00 Per day 0.23Philippines Smart Chikka Chikka Per-SMS PHP2.50 n/a 0.06Philippines Smart Unlimited BlackBerry PrepaidPlansPhilippines Smart Unlimited BlackBerry PrepaidPlansPhilippines Smart Unlimited BlackBerry PrepaidPlansBlackBerry Messenger Unlimited PHP50.00 Per day 1.16BlackBerry Messenger Unlimited PHP300.00 Per week 6.97BlackBerry Messenger Unlimited PHP1,200.00 Per month 27.87Philippines Smart Windows Live Messenger Windows Live Messenger Unlimited PHP10.00 Per 30 minutes 0.23E. EuropePol<strong>and</strong> Orange Polska GG w Orange GG w Orange Unlimited PLN1.23 Per week 0.39Pol<strong>and</strong> Orange Polska GG w Orange GG w Orange Unlimited PLN4.92 Per month 1.57Pol<strong>and</strong> Polkomtel GG plus GG plus Unlimited PLN1.50 Per week 0.48Pol<strong>and</strong> Polkomtel GG plus GG plus Unlimited PLN5.00 Per month 1.60Russia MTS Chat Chat Unlimited RUB1.50 Per day 0.05Russia Megafon Chat Chat Unlimited RUB2.00 Per day 0.07Czech Republic T-Mobile BlackBerry BlackBerry Messenger Unlimited CZK534.31 Per month 30.04Ukraine MTS Ukraine BlackBerry Internet Services BlackBerry Messenger Unlimited UAH199.00 Per month 24.56L. AmericaArgentinaArgentinaArgentinaTelefonicaMovilesTelefonicaMovilesTelefonicaMovilesWindows Live Messenger Windows Live Messenger Per-IM ARS0.10 n/a 0.02SMS Messenger Windows Live Messenger Per-SMS ARS0.43 n/a 0.10Windows Live Mobile Windows Live Messenger Unlimited ARS1.25 Per day 0.30Argentina Personal Personal Messenger Google Talk; Windows LiveMessenger; OtherArgentina Personal Personal Messenger Google Talk; Windows LiveMessenger; OtherBrazil Vivo BlackBerry BIS BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBrazil Vivo BlackBerry BIS Light BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBrazil Vivo BlackBerry Social BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooUnlimited ARS1.00 Per day 0.24Per-SMS ARS0.25 n/a 0.06Unlimited BRL69.90 Per month 40.46Unlimited BRL34.90 Per month 20.20Unlimited BRL29.90 Per month 17.31Brazil Vivo BlackBerry Mail BlackBerry Messenger Unlimited BRL19.90 Per month 11.52Brazil Vivo Windows Live Messenger Windows Live Messenger Unlimited BRL1.99 Per week 1.15Brazil Vivo Windows Live Messenger Windows Live Messenger Unlimited BRL6.99 Per month 4.05MexicoMexicoMexicoMexicoTelefonicaMovilesTelefonicaMovilesTelefonicaMovilesTelefonicaMovilesBlackBerry 2BlackBerry 7BlackBerry 15BlackBerry 30BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooBlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooMexico Telcel BlackBerry Social BlackBerry Messenger; GoogleTalk; Windows Live Messenger;Yahoo200MB MXN59.00 Per 2 days 4.55500MB MXN129.00 Per week 9.941GB MXN199.00 Per 15 days 15.342GB MXN299.00 Per month 23.04Unlimited MXN170.47 Per month 13.14Mexico Telcel Mobile Internet Mail BlackBerry Messenger Unlimited MXN120.03 Per month 9.25Mexico Telcel Basic Mobile Internet BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooUnlimited MXN230.99 Per month 17.80www.informatm.com © 2011 Informa Telecoms & Media 32

Mexico Telcel Unlimited Mobile Internet BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooMexico Telcel Mobile Internet Modem BlackBerry Messenger; GoogleTalk; Windows Live Messenger;Yahoo500MB MXN382.30 Per month 29.463GB MXN482.90 Per month 37.21Mexico Telcel Windows Live Windows Live Messenger Unlimited MXN19.16 Per day 1.48Mexico Telcel Windows Live Windows Live Messenger Unlimited MXN59.51 Per week 4.59Mexico Telcel Windows Live Windows Live Messenger Unlimited MXN99.86 n/a 7.70Colombia Comcel Comcel Messenger Comcel Messenger Per-SMS COP100.00 n/a 0.05Colombia Comcel Comcel Messenger - Prepaid Comcel Messenger Per KB COP5.00 n/a 0.00Colombia Comcel Comcel Messenger - Postpaid Comcel Messenger Per KB COP3.48 n/a 0.00Colombia Movistar Movistar Messenger Windows Live Messenger; Other Unlimited COP1,990.00 Per week 1.08Middle EastSaudi Arabia Mobily BlackBerry Internet Service BlackBerry Messenger 120MB SAR29.00 Per week 7.73Saudi Arabia Mobily BlackBerry Internet Service BlackBerry Messenger 1GB SAR99.00 Per month 26.39Saudi Arabia STC Groupy Groupy Per-SMS SAR15.00 Per month 4.00Saudi Arabia STC Groupy Groupy Per-MMS SAR40.00 Per month 10.66UAE Etisalat Etisalat Messenger Etisalat Messenger Unlimited AED2.00 Per 15 minutes 0.54UAE Etisalat Etisalat Messenger Etisalat Messenger Unlimited AED25.00 Per month 6.81UAE Du Social BlackBerry service - Daily BlackBerry Messenger Unlimited AED1.50 Per day 0.41UAE Du Social BlackBerry service BlackBerry Messenger Unlimited AED30.00 Per month 8.17Turkey Turkcell Nimbuzz Other Unlimited n/a n/a n/aTurkey Vodafone Vodafone Instant MessagingService - EbuddyWindows Live Messenger Unlimited 0 n/a 0.00Turkey Vodafone Vodafone Chat Windows Live Messenger Per-IM TRY0.40 n/a 0.22N. AmericaCanadaCanadaCanadaCanadaCanadaCanadaRogersWirelessRogersWirelessRogersWirelessRogersWirelessRogersWirelessRogersWirelessRogers Instant Messaging Rogers Instant Messaging Per-IM CA$0.15 n/a 0.15Rogers Instant Messaging Rogers Instant Messaging Unlimited CA$5.00 Per month 5.01Data Day Pass Other Unlimited CA$1.00 Per day 1.00Data Day Week Other Unlimited CA$3.00 Per week 3.01Data Day Pass - Smartphones Other 20MB CA$2.00 Per day 2.00Data Day Week - Smartphones Other 125MB CA$7.00 Per week 7.01Canada Telus Mobility Windows Live Messenger Windows Live Messenger Unlimited CA$5.00 Per month 5.01Canada Telus Mobility Chat <strong>and</strong> dating Windows Live Messenger Per-page CA$0.10 n/a 0.10Canada Telus Mobility BlackBerry Social Networking BlackBerry Messenger; WindowsLive MessengerUnlimited CA$15.00 Per month 15.03Canada Telus Mobility BlackBerry email & IM BlackBerry Messenger Unlimited CA$15.00 Per month 15.03US AT&T Mobility Messaging Unlimited withMobile to Any Mobile CallingUS AT&T Mobility Family Messaging Unlimited- with Mobile to Any MobileCallingAIM; Windows Live Messenger;YahooAIM; Windows Live Messenger;YahooUS AT&T Mobility Messaging Unlimited AIM; Windows Live Messenger;YahooUS AT&T Mobility Family Messaging Unlimited AIM; Windows Live Messenger;YahooUS AT&T Mobility Messaging <strong>and</strong> Data Unlimitedfor Non-SmartphonesUS AT&T Mobility International Long DistanceMessaging 1000USUSW. EuropeVerizonWirelessVerizonWirelessMobile IMMobile IMFrance Orange Orange Messenger by WindowsLiveFrance Orange Orange Messenger by WindowsLiveAIM; Windows Live Messenger;YahooAIM; Windows Live Messenger;YahooAIM; Windows Live Messenger;YahooAIM; Windows Live Messenger;YahooItaly TIM Nokia Messaging Google Talk; Windows LiveMessenger; Yahoo; OtherUnlimited US$20.00 Per month 20.00Unlimited US$30.00 Per month 30.00Unlimited US$20.00 Per month 20.00Unlimited US$30.00 Per month 30.00Unlimited US$30.00 Per month 30.00Unlimited US$10.00 Per month 10.00500 IM US$10.00 Per month 10.005,000 IM US$10.00 Per month 10.00Windows Live Messenger Unlimited [$€-2] 0.00 Per day 0.00Windows Live Messenger Unlimited [$€-2] 0.00 Per month 0.00Per KB [$€-2] 0.06 n/a 0.08Italy TIM Windows Live Messenger Windows Live Messenger Unlimited [$€-2] 1.00 Per day 1.38Italy TIM TIMxSmartphone Windows Live Messenger Unlimited [$€-2] 2.50 Per week 3.45Spain Telefonica Chat Other Per-SMS/ MMS [$€-2] 0.23 n/a 0.32www.informatm.com © 2011 Informa Telecoms & Media 33

Spain Vodafone Rate for BlackBerry BlackBerry Messenger; GoogleTalk; Windows Live Messenger;YahooSpain Vodafone BlackBerry Unlimited BlackBerry Messenger; GoogleTalk; Windows Live Messenger;Yahoo10MB [$€-2] 7.08 Per month 9.77Unlimited [$€-2] 17.70 Per month 24.42UK O2 BlackBerry Bolt On BlackBerry Messenger 500MB $5.00 Per month 7.91Source: Informa Telecoms & Mediawww.informatm.com © 2011 Informa Telecoms & Media 34

Mobile-content-<strong>and</strong>-application deals, 6-Oct to 19-Oct 11DataDate Companies Type of deal Sector Territory Value (US$mil.)6-Oct10-Oct12-OctRIM, NewBayNetworksTrapeze Group,Concept DataTechnologiesKeynoteSystems, MobileCompleteMadvertise,BlumbergCapitalKIT Digital,HarmonicZain, NewBayNetworksRadiumOne,AirpushConnexion2, G4SJustice ServicesDescriptionAcquisition Cloud services Global n/a RIM acquires NewBay Networks, a white-label provider of cloud services, inan attempt to develop its cloud-content offering. NewBay's services enableusers to create, store <strong>and</strong> share digital content in the cloud.Acquisition Ticketing Global n/a Transportation-software firm Trapeze Group develops its mobile ticketing<strong>and</strong> payment service with the acquisition of Concept Data Technologies.The deal couples CDT's Web <strong>and</strong> secure mobile ticketing services withTrapeze's enterprise-service portfolio.Acquisition Cloud services Global 60 Internet- <strong>and</strong> mobile-cloud-monitoring firm Keynote Systems acquiresMobile Complete (operating as DeviceAnyWhere), an enterprise cloudbasedplatform for testing <strong>and</strong> monitoring mobile sites <strong>and</strong> apps.Funding Advertising Global 10 Mobile ad network, Madvertise announces a second round of fundingworth US$10 million, courtesy of new investor Blumberg Capital.Madvertise says it will use the money to exp<strong>and</strong> its European business.ProductpartnershipContract awardProductpartnershipProductpartnershipTV/video Global n/a Cloud-software <strong>and</strong> multiscreen-video management company KITDigital <strong>and</strong> video-infrastructure firm Harmonic team up to enable videoproviders to exp<strong>and</strong> broadcast <strong>and</strong> pay TV services with new multiplatform,multidevice delivery models.Social-networkaggregationLocalReponse Funding Location-basedadvertisement13-Oct Sprint, Ideal Life Productpartnership17-Oct19-OctWaze, Li Kashing,KleinerPerkins Caufield& ByersUg<strong>and</strong>a Telecom,MultichoiceUg<strong>and</strong>aSaudi Arabian/a Saudi Arabian operator Zain selects NewBay to supply its LifeCache SocialNetworking Mobile Web platform, to roll out its social-networking service,MyWorld, which lets users access social-media sites in Arabic <strong>and</strong> English.Advertising UK n/a Online-ad network RadiumOne teams up with push-notification mobile adnetwork Airpush to ensure that advertisers <strong>and</strong> developers get optimizedperformance across the Android platform in the UK.Staff tracker US, Canada n/a Lone-worker-services firm Connexion2 <strong>and</strong> security group G4S JusticeServices team up to deliver custom lone-worker services in the US <strong>and</strong>Canada that help reduce risk.Global5 LocalReponse (formerly Buzzd) raises US$5 million to exp<strong>and</strong> its sales team<strong>and</strong> target agencies <strong>and</strong> marketers, as the company repositions itself as alocation-based "check-in" advertising network.Health (services) US, Canada n/a US operator Sprint <strong>and</strong> Canadian health-management supplier Ideal Lifelaunch "wireless kiosks" providing remote health information over Sprint'snetwork. The kiosks can be set up in facilities such as libraries, schools <strong>and</strong>community centers.Funding Navigation Global 30 Israel-based mobile-traffic-navigation-app company Waze raises US$30million from Hong Kong investor Li Ka-shing <strong>and</strong> venture-capital firmKleiner Perkins Caufield & Byers to launch in China <strong>and</strong> develop newfeatures for its 7 million customers.ProductpartnershipPayments Ug<strong>and</strong>a n/a Ug<strong>and</strong>a Telecom <strong>and</strong> Multichoice Ug<strong>and</strong>a sign a mobile payment deal,whereby DSTV customers can pay their monthly subscription fees via theoperator's mobile-money-transfer service, M-Sente.Snapette Inc. Funding Social location Global 1.3 IPhone location-based fashion-app startup Snapette raises US$1.3 millionin seed funding from venture-capital firms in Silicon Valley. The funds willgo toward management hiring, multiple platform launches <strong>and</strong> new socialcommercecapabilities.Poynt, TimesInternetElementalTechnologies,EurosportProductpartnershipLocal search India n/a Location-based search company Poynt <strong>and</strong> Times Internet (a subsidiaryof Indian media house Times Groups) launch mobile-local-search appTimesPoynt in India. The service offers points-of-interest search, businessdetails <strong>and</strong> directions.Contract award TV/video Global n/a Video-processing specialist Elemental Technologies announces thatEuropean entertainment group Eurosport has deployed its technology <strong>and</strong>will run its live <strong>and</strong> on-dem<strong>and</strong> multiplatform streaming services on top ofit.Gamevil, KNetP Joint venture Games Global n/a Mobile games publisher Gamevil gains the rights to publish titles fromgame developer KNetP.America Movil,DLAGetJat, MobotapKIT Digital,TelecomArgentinaAcquisition Content delivery Latin America n/a Latin American operator America Movil is set to acquire ClaxsonInteractive's on-dem<strong>and</strong>-digital-content firm, DLA, before the end of theyear.ProductpartnershipSource: Informa Telecoms & MediaBrowsing Global n/a Free-app store GetJar <strong>and</strong> Dolphin Browser creator Mobotap launch theDolphin Browser 7.0, exclusively on GetJar. The most popular third-partybrowser on Android, Dolphin offers a "HotApps" searching tool <strong>and</strong> cloudbasedbookmarking services.Contract award Video on dem<strong>and</strong> Argentina n/a Cloud-software provider KIT Digital is powering Telecom Argentina'smultiscreen over-the-top premium video service. The Arnet Play serviceenables users to view on-dem<strong>and</strong> multimedia content on Web browsers<strong>and</strong> set-top boxes, with extensible access to other devices.www.informatm.com © 2011 Informa Telecoms & Media 35

Mobile content-<strong>and</strong>-application-service/usage-dataannouncements, 6-Oct to 19-Oct 11DataDate Service Providers Announcement type Service type Territory Description6-OctPaymentsystemMyMobileWorkers.comMTS Russia Launch NFC Russia Russian operator MTS launches an NFC-based payment system thatenables users to pay for fuel at Lukoil gas stations. The service, whichwill be made available to customers in the Perm region, costs RUB200(US$6) a month.Momote Launch Enterprise Global Mobile software firm Momote relaunches MyMobileWorkers.com, itsmobile-work-force-management offering, featuring a software videodemo <strong>and</strong> case studies outlining its pay-as-you-go pricing.10-Oct BlackBerry Tag RIM Launch NFC Global RIM unveils BlackBerry Tag, a service that enables users to exchangecontact details, URLs, photos <strong>and</strong> other multimedia content by tappingtheir phones together. It is anticipated for the BlackBerry 7 OS update.Mobile TV MobiTV Usage data TV/video Global MobiTV announces that a record 167 million minutes of mobile TVwas viewed in September over its services. The company, which offerslive <strong>and</strong> video on-dem<strong>and</strong> services, notes that 65% of viewing was liveprogramming.Androidenterprisesecurityplatform3LM Launch Security Global 3LM, a subsidiary of Motorola Mobility, is rolling out its Androidenterprise-security platform. The preloaded security software has beenlicensed to other Android-h<strong>and</strong>set vendors, including HTC, Sharp <strong>and</strong>Sony Ericsson.Facebook Facebook Service update Socialnetworks11-Oct Facebook app Walmart Launch LocationbasedadvertisingMobile appmarketGlobalUSSocial network Facebook updates its iPhone <strong>and</strong> iPad apps, addinghigh-resolution photo-viewing, HD video recording <strong>and</strong> a new userinterface.Retail giant Walmart plans to launch a Facebook app that offerstailored marketing regarding deals, events <strong>and</strong> limited-distributionproducts at each of its 3,600 US outlets.Berg Insight Usage data Applications Global Berg Insight forecasts that revenues from premium-app installations,in-app purchases <strong>and</strong> subscription services will reach US$11.9 billionby 2015, up from US$2.2 billion last year. It also predicts that thenumber of mobile application downloads will increase at a CAGR of56.6% over the same period.E-book app Txtr Launch Books Europe E-reading-services specialist Txtr launches customized e-book appsin Samsung app stores across Europe (Germany, Austria, Switzerl<strong>and</strong>,France, Italy, Spain, Pol<strong>and</strong> <strong>and</strong> the UK), including special deals <strong>and</strong> acustom, local e-book store.12-Oct Mobile Money Q-Tel Service update Remittances Qatar Qatar Telecom is enabling free local <strong>and</strong> international remittances viamobile. The service has been set up in cooperation with Qatar NationalBank.MasterCardPayPass appGoodDynamicsDeveloperNetworkprogramIn-apppaymentserviceMobile admarket13-Oct Nokia 603,Nokia LuneBluetooth17-OctSMS alertserviceE-bookrevenuesOpera MiniMulti-screenTV serviceEtisalat Launch NFC UAE UAE operator Etisalat announces the MasterCard PayPass app, whichenables users to pay via their smartphones for transactions up to US$50. Outlets have to sign up to the NFC-based service, which will beavailable first on the BlackBerry 9900 by the end of the year.Good Technology Launch Security Global Good Technology rolls out a security platform that app developers cancouple with their mobile applications. Companies can register for theGood Dynamics Developer Network program to take advantage ofthese resources.Ericsson Launch Payments Global Ericsson launches its in-app payment service based on the IPXplatform, enabling carriers <strong>and</strong> content providers to offer paymentoptions including subscriptions, free trials <strong>and</strong> other digital assets. Itoffers the merchant real-time price updates <strong>and</strong> small denominationsof virtual currency.BuzzCity Usage data Advertising Global Mobile media firm BuzzCity reports 87.1 billion ads served in 2011,up 60% compared with all of 2010. The UK is the only major marketin which BlackBerry is the leader; it has 71.7% market share in thecountry.Nokia Launch NFC Global Nokia announces two NFC-enabled devices, including the Nokia 603low-cost tag-reading h<strong>and</strong>set <strong>and</strong> the Nokia Luna Bluetooth single-tappairing device.Kerala Women'sCommission, StatePoliceAssociationof AmericanPublishersVodafone Turkey,Opera SoftwareLaunch Security India The Indian province of Kerala introduces an SMS-alert service (from theKerala Women's Commission), where women who need assistance (toprevent violence) can text directly to the State Police Monitoring Room.Usage data Books US New figures from the Association of American Publishers indicatethat e-book revenues grew 153% year-on-year in July. It also noted thatdigital-audio-book revenues were up 26.7% this year.Launch Browsing Turkey Based on the terms of a deal signed July 19, close to 17 millionVodafone Turkey customers will soon be receiving free access to a cobr<strong>and</strong>edversion of the Opera Mini mobile browser, which was releasedon Oct. 17.B.Net Launch TV (streamed) Croatia Croatian cable <strong>and</strong> DTH operator B.Net, a subsidiary of VIPnet,launches a multiscreen TV service that enables subscribers to watch upto 13 channels on both smartphone <strong>and</strong> tablet devices.www.informatm.com © 2011 Informa Telecoms & Media 36

18-Oct19-OctBlackBerryappsAny ScreenDone RightIn-apppurchasesRIM Launch Applications Global RIM is set to offer a range of premium mobile apps free, to compensatefor last week's BlackBerry-service outage, relating to a core switchfailure in its network infrastructure. RIM will also offer enterprisecustomers one month of free technical support.Wowza MediaSystems,TelefonicaLaunchContentdeliveryDistimo Usage data ApplicationstoresGlobalGlobalMedia-server-software firm Wowza Media Systems announces thatTelefonica has deployed its services for Telefonica's Adobe Flash <strong>and</strong>Microsoft Silverlight-capable devices.App-analytics firm Distimo reports that in-app purchases are nowresponsible for three-quarters of iPhone-app revenues, up from justone-quarter a year ago. Close to half of iOS in-app buys come in freeapps, but only 4% of iOS apps offer in-app purchase options.Lookout Lookout Security Launch Security Global Lookout Security announces Lookout, an iPhone app that enables usersto view a single screen that indicates whether their device is protected.The mobile security firm already has 12 million users of its products,almost completely on Android devices.Q-Tel MobileMoneyQ-Tel Launch M-Wallet Qatar Qatar Telecom launches its m-wallet network, Q-Tel Mobile Money,which enables users to transfer funds domestically <strong>and</strong> overseas, addmobile credit <strong>and</strong> make payments.Android app STC Launch Applications Saudi Arabia Saudi Arabia-based operator STC introduces an Android app thatenables customers to view the latest STC offers on their device,access phone bills <strong>and</strong> monitor their Quicknet mobile broadb<strong>and</strong>consumption.rCloud Doyenz Launch Security Global SME cloud-recovery-services firm Doyenz announces rCloud, a servicethat offers faster recovery for virtual environments, restoring them inless than 15 minutes.Mobile InsightsReport:EuropeanEdition, 3Q11InMobi Usage data Advertising Global Independent mobile-ad network InMobi reports significant growth inEurope, with mobile impressions increasing 46% in 3Q11. It also notedthat Android now represents a third of all ads in the region, which isdouble that of iOS.Scan <strong>and</strong> Pay Valassis Launch M-commerce UK UK-based coupon- <strong>and</strong> voucher-services provider Valassis launchesself-scanning mobile application Scan <strong>and</strong> Pay, which enables users toscan products <strong>and</strong> pay for their items on their mobile device.Source: Informa Telecoms & Mediawww.informatm.com © 2011 Informa Telecoms & Media 37

Global messaging announcements, 4-Oct - 19-Oct2011DataDate Operator/company Territory Announcement4-Oct Clarion Call UK UK mobile messaging company Clarion Call selects Ericsson IPX to provide A2P SMS.5-Oct IT&E Micronesia IT&E selects Jinny Software to provide mobile messaging <strong>and</strong> voicemail platforms for itsCDMA <strong>and</strong> GSM networks in Saipan, Guam, Tinian <strong>and</strong> Rota.5-Oct Personal Argentina Personal partners with Gemalto to launch the Facebook for SIM service.10-Oct Cincinnati Bell US Cincinnati Bell partners with Ditech Networks to launch its Voice2Text service, whichwill enable mobile subscribers to have their voicemails transcribed to text <strong>and</strong> sent tothem as an SMS or e-mail.11-Oct Zain Sudan Zain Sudan awards Jinny Software a contract for the upgrade of its MMSC, SMSC,message router, SMSC Accelerator, WAP gateway <strong>and</strong> ring back tone server. Jinny willalso provide management tools to Zain.11-Oct Zain Saudi Arabia Zain Saudi Arabia awards NewBay a contract for the supply of its LifeCache SocialNetworking Mobile Web platform.11-Oct MoneYou Germany ABN AMRO's German banking subsidiary MoneYou selects MACH to provide itsA2P Messaging platform, which will enable MoneYouto send mobile transactionauthentication numbers (mTANs) to its online banking customers.13-Oct Multichoice, Ug<strong>and</strong>a Telecom Ug<strong>and</strong>a Multichoice partners with Ug<strong>and</strong>a Telecom to enable its DSTV customers to pay theirmonthly subscriptions using UTL's mobile money transfer service, M-Sente.13-Oct Sprint Nextel US Sprint Nextel has partnered with Canadian remote health management provider IdealLife to launch wireless kiosks for the transmission of health <strong>and</strong> wellness information.13-Oct Kerala Women's Commission India The Kerala Women's Commission has partnered with the National Informatics Centre tolaunch a service that would enable women to send SMS SOS alerts to their local policeforce, using the short code 537252.13-Oct Yoigo Spain Yoigo partners with mobile messaging <strong>and</strong> commerce provider Sybase 365 to launchRegistered SMS, which will enable companies to send SMSs with the same legal st<strong>and</strong>ingas registered mail.13-Oct Whypoll, Canvasm India Indian NGO Whypoll partners with value-added-service provider Canvasm to launch theFight Back safety application for women who live in New Delhi. The application enablesusers to send an SMS SOS alert, containing their GPS location, to up to five recipients.14-Oct Sprint Nextel US Google Voice enables inbound MMS from US mobile operator, Sprint.17-Oct Bharti Airtel Africa Bharti Airtel awards Nokia Siemens Networks a contract for the supply of its VAS-as-aservice(VAAS) platform <strong>and</strong> its Serve atOnce Device Management (SADM) software.18-Oct Essar Telecom Kenya Essar Telecom Kenya partners with mobile marketing <strong>and</strong> advertising agency Flytxt todeploy Flytxt's Neon platform into its network in order to deliver marketing campaignsto its subscribers.19-Oct Bakcell Azerbaijan Bakcell Azerbaijan enables MMS interoperability with Azerfone-Vodafone <strong>and</strong> NarMobile.Source: Informa Telecoms & Mediawww.informatm.com © 2011 Informa Telecoms & Media 38

NewsNews In BriefOperatorsVodafone UK to close Vodafone 360Vodafone UK is to shut down its Vodafone 360 address book, portal aggregation <strong>and</strong> contentservice on December 31, 2011, according to a notification sent to Vodafone 360 registeredusers. The notification redirects UK Vodafone 360 subscribers to a web site that includesadvice on how to export their 360 contacts to their PC or smart-phone. Vodafone launchedthe 360 service in the UK in Oct. 2009 <strong>and</strong> across another seven markets in Europe in Nov.2009, backing it with a substantial marketing campaign. The service was available nativelyin two Samsung h<strong>and</strong>sets, the H1 <strong>and</strong> the M1, <strong>and</strong> as a downloadable application for a rangeof h<strong>and</strong>sets from other manufacturers. However by end-May 2010, the service had attractedfewer than 500,000 users, <strong>and</strong> in July 2010, Vodafone announced that it would discontinuethe development of the two Samsung h<strong>and</strong>sets.Middle Eastern operators line up to compensate BlackBerry users over service outagesFollowing on from multiple BlackBerry service outages in the past week, mobile operators inthe Middle East, including Etisalat, Du, Q-Tel, Mobily <strong>and</strong> STC, are planning to compensateBlackBerry users on their networks. Email, messaging <strong>and</strong> browsing services were disruptedacross four continents due to a fault in RIM’s UK servers. Etisalat said pre-paid users can receivethree days free usage, <strong>and</strong> post-paid users can have their monthly bill adjusted. Du, STC <strong>and</strong>Mobily have made similar announcements.Orange France launches SoshOrange France has launched its much anticipated br<strong>and</strong>, Sosh, with a selection of six h<strong>and</strong>sets<strong>and</strong> no tie-in contracts that offer bundles of voice minutes <strong>and</strong> data combined with unlimitedSMS/MMS <strong>and</strong> access to Orange’s 30,000 Wi-Fi hotspots. The other two French mobile players,Bouygues Telecom <strong>and</strong> SFR, have also launched their own sub-br<strong>and</strong>s ahead of Free Telecom’slaunch of mobile services in 1Q12.VoIPTelefonica to trial free internet calls in UKUK operator Telefonica is trialling a new VoIP calling service, O2 Connect, which will allowsmart phone users to use voice <strong>and</strong> text services over Wi-Fi networks from their mobilenumber to any UK mobile or l<strong>and</strong>line. The move is an attempt to deflect the threat of mobileusers making an increasing number of calls using over-the-top services that operators can’tmonetize. O2 Connect is the first service from Telefonica’s Digital Business division, <strong>and</strong> willuse technology from Internet phone company Jajah. It will be available initially for Apple <strong>and</strong>Android smart phones, with the trial to start in October by invitation only. The company hopesto launch O2 Connect commercially in 2012.MMSCTIA says SMS traffic up, MMS down in 1H11US telecommunications industry body, the CTIA, has revealed in its semi-annual survey for1H11 that SMS traffic increased 16% year-on-year, from 982.9 billion messages in 1H10,to 1.14 trillion messages in 1H11, but that MMS traffic declined 12.1% from 32.1 billion in1H10, to 28.2 billion in 2H11. The survey also found that, for the first time, the number ofwireless subscriber connections exceeded the population of the US <strong>and</strong> its territories, at 327.6million <strong>and</strong> 315.5 million, respectively, resulting in a mobile penetration rate of 103.9%. Inaddition, the CTIA stated that there was a 111% increase year-on-year in mobile data trafficin the US, from 161.5 billion MB in 1H10 to 341.2 billion MB in 1H11. At the same time thenumber of data-capable devices increased by just 5%, from 264.5 million to 278.3 million.The number of active users of smart-phones <strong>and</strong> wireless-enabled PDAs also increased 57%from 61.2 million in 1H10, to 95.8 million in 1H11. However the average monthly bill actuallydeclined, marginally, in value from US$47.47 in 1H10 to US$47.23 in 1H11. Minutes of usealso experienced minimal growth, from 1.14 trillion in 1H10 to 1.15 trillion in 1H11. In total,wireless service revenue totalled US$164.6 billion for the twelve months to end-June 2011,representing a year-on-year increase of 6%. The CTIA stated that its members increased theirinvestment in networks <strong>and</strong> infrastructure, spending US$27.5 billion between June 2010 <strong>and</strong>June 2011, representing an increase of 28% over the previous year.www.informatm.com © 2011 Informa Telecoms & Media 39

Google Voice enables inbound MMS from Sprint subscribersGoogle has announced that its Google Voice service will now accept inbound MMS, includingimages <strong>and</strong> other types of multimedia messages, from the subscribers of US mobile networkSprint. Google Voice users will need to enable the text-to-e-mail forwarding feature in theirsettings, in order to view the MMSs on their mobile forwarding phone <strong>and</strong> in their e-mailinbox. Google is also working on enabling the messages to be viewed in the Google Voiceinbox, according to a Google Voice blog post by senior software engineer, Ilya Frank. “MMS hasbeen one of the constant feature requests since we launched Google Voice,” Frank blogged.“We are working with other mobile operators to make this work across all mobile phones.”Bharti Airtel contracts NSN for centralized MMS platformBharti Airtel has awarded Nokia Siemens Networks a contract for the supply of a centralizedMMS platform, which will deliver MMSs across the company’s 16 African subsidiaries usingNSN’s VAS-as-a-service (VAAS) platform. The VAAS platform will also provide NSN’s MobileInternet Browsing Solution (MIBS). In addition, Bharti Airtel will roll out NSN’s Serve atOnceDevice Management (SADM) software, with the aim of helping its subsidiaries reduceoperational costs associated with the launch of new devices <strong>and</strong> services.Bakcell enables MMS interoperability in AzerbaijanAzerbaijan’s second-largest mobile operator, Bakcell, has enabled its mobile subscribers toexchange MMSs with the subscribers of rival Azerbaijan operators Azerfon-Vodafone <strong>and</strong> NarMobile. Bakcell, which has 2.7 million subscribers, will charge AZN0.08 (US$0.10) per off-netMMS.HealthOrange Kenya launches MpedigreeOrange Kenya has launched Mpedigree, an SMS based system to fight counterfeit drugs inKenya. The service is to be rolled out in health centers countrywide <strong>and</strong> will ensure that alldrugs have their serial numbers scanned before being administered to patients. Accordingto the Health Ministry, counterfeit drugs account for up to 30% of the total drugs in thecountry. Orange Kenya is also working with Qualcomm <strong>and</strong> other partners in a project dubbed‘Wireless Reach’ aimed at automating the procurement of Anti-Retroviral drugs in publicclinics.Sprint signs M2M health agreement with Ideal LifeUS operator Sprint <strong>and</strong> Canadian remote health management solutions supplier Ideal Lifehave launched wireless kiosks for users to capture health <strong>and</strong> wellness information remotely.The kiosks will transmit medical data using Sprint’s wireless network. The kiosks are designedfor high-volume traffic <strong>and</strong> can be installed in communal settings such as community centers,libraries, schools, employer facilities, living centers, gyms, health clinics <strong>and</strong> physicians’offices.PlatformsTelefonica taps Wowza for media serverPan-regional telco Telefonica will use software company Wowza’s media server to provisioncontent across a range of devices <strong>and</strong> systems, including iPhone, Andorid, Flash <strong>and</strong> MicrosoftSilvelight. The recently announced Telefonica Global Delivery Service has already deployedmore than 40 content delivery nodes in 10 countries, <strong>and</strong> it is expected to end the year withnodes in 22 cities with an aggregate capacity of 600 Gbps. Telefonica further plans to increasethe capacity of its CDN to more than 2 Tbps by the end of 2012. The Global Delivery Service iscurrently available in Europe <strong>and</strong> North America, <strong>and</strong> it also has an overwhelming presencein Latin America, including Brazil, Argentina, Peru, <strong>and</strong> Chile. In Spain, Telefonica currentlyprovides content delivery services to large corporate customers.IT&E to deploy Jinny messaging platforms across MicronesiaMicronesian mobile operator IT&E has awarded Jinny Software a contract for the supply ofmobile messaging <strong>and</strong> voicemail platforms for its CDMA <strong>and</strong> GSM networks in Saipan, Guam,Tinian <strong>and</strong> Rota. Jinny will provide IT&E with its SMSC, MMSC, WAP gateway, voice-mailsystem, <strong>and</strong> CDMA over-the-air programming platform.Zain selects Jinny for mobile VASZain Sudan has awarded Jinny Software a contract for the upgrade <strong>and</strong> supply of its mobileVAS platforms. Jinny will provide Zain with upgrades to its MMSC, SMSC, message router,SMSC accelerator, WAP Gateway <strong>and</strong> ring-back tone server; the vendor will also supply Zainwith solution management tools. Last month, the operator also announced that it hadwww.informatm.com © 2011 Informa Telecoms & Media 40

chosen Jinny to supply its mobile advertising platform. Zain has more than 10 million activecustomers.Voice-to-textCincinnati Bell launches voice-to-textUS regional operator Cincinnati Bell has launched its Voice2Text service, using DitechNetworks’ Phone Tag platform. The Voice2Text service will enable the conversion ofvoicemails to text or e-mail messages. Cincinnati Bell is offering the service at two paymonthlytariffs: US$4.99 for Voice2Text Lite, which includes 25 conversions, <strong>and</strong> US$5.99 forVoice2Text Unlimited, which includes unlimited conversions. Users of the service can list upto two e-mail addresses for the delivery of the transcribed messages; they can also choosewhether to have the SMS option switched on if they are receiving messages via e-mail. Inaddition, the Voice2Text service includes a profanity filter, defaulted to ‘off’, which can beswitched on if the user wishes profanity to be transcribed.RegulationCTIA issues guidelines for mobile usage alertsThe US industry body, the CTIA, has issued a set of guidelines that are targeted at ensuringmobile operators provide their subscribers with free alerts when they reach monthly limits onvoice, data <strong>and</strong> text. The Wireless Consumer Usage Notification Guidelines also recommendsthat mobile operators provide a free alert to their subscribers to notify them of internationalroaming charges while abroad. The Guidelines will become part of the CTIA’s Consumer codefor Wireless Service, <strong>and</strong> m<strong>and</strong>ates that within 12 months participating operators shouldprovide at least two of the four types of alerts, <strong>and</strong> that within 18 months, participatingoperators should provide all four of the different types of alerts. The plan is designed to beopt-out for mobile subscribers, as opposed to opt-in, <strong>and</strong> has won the support of US President,Barack Obama, as well as the Federal Communications Commission <strong>and</strong> the ConsumersUnion.EnterpriseYoigo offers secured SMS serviceSpanish mobile operator Yoigo has partnered with mobile messaging <strong>and</strong> commerce serviceprovider Sybase 365 to launch the Registered SMS service. The Registered SMS service istargeted at the enterprise market, <strong>and</strong> will enable companies to send SMSs which will havethe same legal st<strong>and</strong>ing as registered mail. Spain’s Real Casa de la Moneda (Royal Mint)has certified Registered SMS as a service which can be used to legally prove the delivery ofdocuments <strong>and</strong> information, meaning that disputes over whether correspondence has beendelivered may be resolved without court proceedings. Sybase 365 <strong>and</strong> Yoigo anticipate thatthe service could be used to advise of final bill reminders, contractual updates or overdraftnotifications.Ericsson IPX provides messaging services to Clarion CallEricsson Internet Payment Exchange (IPX) has won a contract with UK messaging serviceprovider Clarion Call, under which Ericsson IPX will provide Clarion Call with A2P SMS. ClarionCall provides one-to-many communications for about 350 independent schools in the UK,enabling schools to use a web-based terminal to contact parents <strong>and</strong> guardians by SMS, voicemessage <strong>and</strong> e-mail. Schools are able to send notifications for multiple purposes, includingupdates on school trips <strong>and</strong> internal memos for staff. Clarion Call also provides the ability forschools to track which parents received messages <strong>and</strong> when. “It is of the utmost importancethat we can guarantee when providing this service we not only ensure 100% delivery ratesbut also guarantee messages are sent promptly <strong>and</strong> effectively,” said Peter May, managingdirector of Clarion Call. The company has also recently exp<strong>and</strong>ed its target market to includethe wider enterprise market <strong>and</strong> non-UK customers.SafetyIndian NGO launches SMS-based safety applicationWhypoll, an Indian non-government organisation, has partnered with value-added-serviceprovider Canvasm to launch the Fight Back safety application for women who live in NewDelhi, according to local media reports. Fight Back, which will be available to download fromWhypoll’s web site for a small fee, will enable users to send an SMS SOS alert that includes theirGPS location to up to five recipients, including the police. The alert can also be used to poston Facebook <strong>and</strong> Twitter. New Delhi reportedly has one of the highest incidences of attacksagainst women in India.www.informatm.com © 2011 Informa Telecoms & Media 41

Kerala launches SMS alert service for womenIn the state of Kerala in India, the Kerala Women’s Commission has introduced an SMS alertservice in which women in trouble (in respect to sexual violence) can SMS 537252 <strong>and</strong>the message will be passed on the State Police Monitoring Room where assistance will beprovided with the help of respective local police stations. The system has been developed withthe technical support of the National Informatics Centre.Fund-raisingCalifornian body allows political contributions via SMSThe Fair Political Practices Commission in California, US, has voted to enable politicalcontributions via SMS, according to local media reports. The FPPC stated that the donationswould be allowable, providing that the c<strong>and</strong>idates report the identity <strong>and</strong> address of thosegiving more than US$100. However FPPC chairwoman Ann Ravel was quoted as saying thatshe believes those using the capability would likely only give small contributions, that is, US$25 or less. The new FPPC regulations will take effect in about 30 days.Banking <strong>and</strong> paymentsABN AMRO subsidiary MoneYou selects MACHMoneYou, the German banking subsidiary of ABN AMRO, has awarded global mobilemessaging <strong>and</strong> data connectivity <strong>and</strong> roaming provider MACH a contract for the supply ofits A2P messaging platform. MoneYou will use MACH’s A2P messaging platform to enabletwo-factor authentication for its online banking customers via SMS; specifically, MoneYouwill be able to send mobile transaction authentication numbers (mTANs) to all of its onlinebanking customers, regardless of their mobile operator network. “Any authentication servicein the financial world must be as secure as possible <strong>and</strong> utterly reliable,” said Liesbeth Rigter,business manager for MoneYou Deutschl<strong>and</strong>. “We were clear that we required a messagingservice that would meet our criteria as well as provide a high quality of customer support.”Etisalat launches smartphone payment serviceUAE operator Etisalat is launching the MasterCard PayPass app, allowing users to pay usingtheir mobile smartphones for transactions up to US$50. Service is expected to go live by theend of the year. Customers can use the service to, for example, buy food <strong>and</strong> clothes, or usethe Dubai Metro, though UAE retails outlets <strong>and</strong> businesses must sign up first before Etisalatsmartphone users can pay them using the smartphone app. Technically, the service is an NFC(near-field communications) electronic payment service, which functions in similar fashionto Bluetooth technology. The service will be first available on BlackBerry 9900 before beingrolled out to other devices.Madagascar operator records US$1 bil. in mobile money transactionsMadagascar fixed <strong>and</strong> mobile operator Telecom Malagasy (Telma) saw its mobile moneyservice, MVola, attract about two million users (sending <strong>and</strong> receiving parties), one year afterlaunch of service. Over the year to early October 2011, MVola recorded MGA300 billion (US$1.1 billion) in transactions. According to Informa Telecoms <strong>and</strong> Media, Telma shared 22% ofthe Malagasy 6.5 million mobile market in 3Q11.Ug<strong>and</strong>a Telecom in mobile payment deal with MultichoiceMultichoice Ug<strong>and</strong>a has signed a mobile payment deal with Ug<strong>and</strong>a Telecom. Under thepartnership, DSTV customers will be able to pay their monthly subscriptions via UTL’s mobilemoney transfer service, M-Sente, in a move aimed at improving efficiency <strong>and</strong> convenienceby eliminating long queues at service points. According to the Head of M-Sente, Peter Kakaire,the mobile money service has over 300,000 registered users.Telenor Pakistan offers incentives to use Easypaisa serviceTelenor Pakistan is offering free call time, SMSs, <strong>and</strong> data for the users of its Easypaisa mobilebanking service. Under the limited time offer, if users transfer more than PKR1,000 (US$ 11.45)or pay utility bills using the Easypaisa service, they get 150 minutes of call time (75 minuteson-net <strong>and</strong> 75 minutes off-net), 1500 SMS, <strong>and</strong> 15 MB GPRS data free, with 10 days validity.Cloud servicesAcision launches Cloud Services StoreMobile messaging <strong>and</strong> data infrastructure vendor Acision has announced the availabilityof its Cloud Services Store, with the first services available from the store comprising itspersonalized messaging offerings. The personalized messaging services consist of groupmessaging, auto-reply <strong>and</strong> auto-signature, message copy, personalized black- <strong>and</strong> whitelisting,distribution list, multi-SIM, alias <strong>and</strong> divert. Acision’s chief executive, Jorgen Nilsson,www.informatm.com © 2011 Informa Telecoms & Media 42

said that the vendor’s Cloud Services Delivery Model is aimed at assisting mobile operators tolaunch new value-added-services with minimal expenditure <strong>and</strong> investment. “This model isparticularly important as we move to an IP messaging world with new <strong>and</strong> novel messagingfeatures, which operators will want to launch rapidly for fast user adoption <strong>and</strong> revenuegeneration,” Nilsson added.UsageValue-added-services in Brazil total US$1.41 billion in 2Q11The mobile value-added-services (VAS) market in Brazil was worth BRL2.48 billion (US$1.41billion) in 2Q11, according to Acision’s Mobile VAS Monitor (MAVAM). MAVAM also foundthat VAS revenues grew 31% between Jun. 2010 <strong>and</strong> Jun. 2011, to represent 20% of Brazilianmobile operators’ net sales. SMS revenues totalled BRL 992 billion (US$563.3 million) in2Q11, representing an increase of 29% year-on-year <strong>and</strong> contributing 41% of VAS revenues.According to MAVAM’s consumer survey, 56% of respondents send more than one SMS perday, up from 46% in 1Q11. Also, 78% of those surveyed stated that they had activated Internetaccess on their mobile devices, with 45% of those who had activated Internet access usingit within the past three months. In addition, the MAVAM report identified that operators’net sales of smart-phones rose by 37% between Jun. 2010 <strong>and</strong> Jun. 2011. The report alsocanvassed consumers with regards to their uptake <strong>and</strong> use of mobile money <strong>and</strong> bankingservices, finding that 69% of those interviewed were unaware of mobile banking <strong>and</strong> paymentservices. Only 10% of interviewees had accessed a banking website via their mobile device.The most recognized mobile money service in Brazil is the SMS transaction alert, which had24% market awareness.Instant messagingSamsung’s ChatON available for downloadH<strong>and</strong>set manufacturer Samsung has announced that its ChatON messaging application isavailable for download from its own app store, Samsung Apps, <strong>and</strong> from Android <strong>Market</strong>.ChatON is a free application which will enable mobile users to send <strong>and</strong> receive instantmessages, multimedia content <strong>and</strong> animated messages. Other features include group chat,interaction ranking, video, voice, location, web access <strong>and</strong> the threading of shared content. Inaddition to being available via app stores, Samsung will embed ChatON into its bada smartphones<strong>and</strong> a number of its feature-phones. The vendor said that ChatON will also be madeavailable for other device operating systems by end-2011.SMSNepal Telecom generates 8.4 million SMS over DashainThe mobile subscribers of Nepal Telecom sent <strong>and</strong> received a total of 8.4 million SMSsduring the country’s recent 15-day religious festival, Dashain, according to local media. Onthe seventh day of the festival, Fulpati, NT customers sent <strong>and</strong> received 3.2 million SMSs,generating NPR1.6 million (US$20,113). On Astami <strong>and</strong> Nawami, the eighth <strong>and</strong> ninth days,NT subscribers sent <strong>and</strong> received a total of 2.4 million SMSs, generating NPR1.2 million inrevenues, <strong>and</strong> on Bijaya Dashami (tenth day) NT’s SMS traffic totalled 2.8 million, generatingNPR1.4 million. NT’s average daily traffic is between 1.1 – 1.2 million SMSs.Syniverse sees 15% increase in SMS after August ‘quakeMobile messaging <strong>and</strong> data connectivity <strong>and</strong> roaming provider Syniverse has announced thatit saw a 15% increase in the SMS traffic passing over its networks in the two hours after theAug. 23 earthquake along the eastern seaboard of the US. Syniverse processed 220 millionSMSs during these two hours, the company stated, adding that it attributed its ability toprovide this level of uninterrupted service to its global network of its two comm<strong>and</strong> centersin the US <strong>and</strong> India, <strong>and</strong> its 15 data centers on three continents.Social networkingPersonal Argentina launches first Facebook for SIM servicePersonal Argentina has partnered with Gemalto to launch Facebook for SIM, an applicationthat is embedded inside the subscriber identification module (SIM). Facebook for SIM willenable mobile users who do not necessarily have smart-phones or mobile data plans to access<strong>and</strong> interact with their Facebook accounts. Users will be able to receive notifications of wallposts <strong>and</strong> messages, <strong>and</strong> view friend requests <strong>and</strong> status updates. Personal Argentina has 17.4million customers.Zain selects NewBay for social networkingZain Saudi Arabia has awarded NewBay a contract for the supply of its LifeCache SocialNetworking Mobile Web platform, in order to roll out MyWorld, Zain’s operator-br<strong>and</strong>edwww.informatm.com © 2011 Informa Telecoms & Media 43

mobile social networking service. MyWorld will enable Zain’s nine million subscribers to view,update <strong>and</strong> interact with social networks <strong>and</strong> social media sites, such as Facebook, Twitter<strong>and</strong> MySpace. The service will be available in Arabic <strong>and</strong> English.Voice SMSKirusa’s voice-SMS platforms process 400 million calls in AugustVoice-SMS platform provider Kirusa has announced that its platforms, which are deployedwith about 30 mobile operators, processed a total of 400 million calls in August. The companyalso stated that there were also 53 million unique users of its platforms as of end-August.Tigo Ghana CEO, Carlos Caceres, said that the Kirusa platforms <strong>and</strong> services are being used bymillions of mobile subscribers in Ghana.Machine-to-machineEverything Everywhere exp<strong>and</strong>s M2M partners with Raco dealThe UK’s Everything Everywhere has formed a partnership with US M2M vendor RacoWireless to provide Raco’s M2M customers access to Everything Everywhere’s network.Everything Everywhere, a 50/50 joint venture between France Telecom <strong>and</strong> DeutscheTelekom, will also provide access to the European networks of its parent operators. EverythingEverywhere sees M2M as a future key revenue driver, <strong>and</strong> recently deployed a propriety M2Mplatform developed in partnership with Transatel.<strong>Market</strong>ing <strong>and</strong> advertisingEssar Telecom Kenya partners with Flytxt in AfricaEssar Telecom Kenya has partnered with mobile marketing <strong>and</strong> advertising agency Flytxt inorder to deploy Flytxt’s integrated carrier class mobile marketing software platform, Neon,into its network. Neon will enable Essar to offer promotions to its subscribers. By deliveringhighly personalized marketing messages, the operator hopes to grow its subscriber base,which stood at slightly over 1.5million in 2Q11.Bulmers Cider uses O2 Media for location-based marketingBeverage-maker Heineken has partnered with O2 Media, useyourlocal.com <strong>and</strong> StarcomMediaVest to launch a mobile marketing campaign for its Bulmers Cider division, usingO2 Media’s You Are Here location-based marketing service. The campaign is aimed atencouraging opted-in subscribers to O2 Media to visit a nearby pub which sells the Bulmerrange of ciders. Between now <strong>and</strong> the end of Oct. 2011, O2 Media will send 100,000promotional messages about Bulmers Ciders to O2 customers aged 18 <strong>and</strong> over, who enterwithin the range of a location marked by a geo fence set up by O2 Media. The message willredirect the recipient to www.useyourlocal.com for the location details of their nearest pub.VideoBSNL partners with DigiViveIndian VAS provider DigiVive has tied up with GSM/WCDMA government-owned operatorBSNL to offer 65 live mobile TV channels as well as 5,000 hours of video on dem<strong>and</strong> contentfor BSNL subscribers. The subscription fee for the service varies from INR8 (US$0.2) per day toINR99 per month for BSNL customers.Etisalat announces intent to launch mobile VODUAE operator Etisalat is working on bringing video-on-dem<strong>and</strong> to the mobile <strong>and</strong> tabletscreens in four to six months.TariffsM1 launches mobile plans for the deaf, hard-of-hearingSingapore telecommunications firm M1 has launched two mobile service plans exclusively forclients <strong>and</strong> members of the Singapore Association for the Deaf (SADeaf). The MessageSurf <strong>and</strong>BlackBerry MessageSurf plans are priced at SGD25.68 (US$19.63) <strong>and</strong> SGD29.96 per monthrespectively <strong>and</strong> include 50 minutes of outgoing video calls, 10,000 SMS <strong>and</strong> MMS messages,<strong>and</strong> 3 GB of data with excess data usage capped at SGD30. The plans will come with additionalbenefits such as unlimited free calls to three M1 numbers, per second billing <strong>and</strong> all day freeincoming video calls.Safaricom increases call chargesKenya’s leading mobile operator, Safaricom, has increased its call charges by KES 1(US$0.0098) citing high inflation <strong>and</strong> the depreciating Kenyan shilling. Following the increment,customers will pay KES4 <strong>and</strong> KES5 for on-net <strong>and</strong> off-net calls respectively. The operatorwww.informatm.com © 2011 Informa Telecoms & Media 44

has also increased international calling rates, however, data <strong>and</strong> SMS services will remainedunchanged. The move is seen as an end to an era of low call rates that customers have enjoyedsince August last year. Orange Kenya <strong>and</strong> Airtel have welcomed the move <strong>and</strong> promised tomake similar increments once they have evaluated the impact of the rising inflation on theiroperations.Pick & Mix launched by Virgin Mobile AustraliaMobile operator Virgin Mobile Australia has launched the ‘Pick & Mix’ postpaid plan. Theplan, which sells for AUD19 (US$ 19) per month, includes AUD19 credit <strong>and</strong> 100 MB of data,after which subscribers can then select a number of options. Under the plan, calls are chargedat AUD0.15 per minute <strong>and</strong> SMS messages cost AUD0.15 each. An unlimited SMS option ischargeable at an additional AUD10 per month, an unlimited voice option costs AUD30 permonth <strong>and</strong> customers can opt for 500 MB of data costing an extra AUD5, 2 GB which costsAUD10 <strong>and</strong> 4 GB which costs an additional AUD20 per month. Subscribers of the Pick & Mixplan are allowed to change their plan options anytime.Vodafone Australia offers new prepaid cap rechargeVodafone Australia has launched a new prepaid cap recharge for AUD30 (US$30). Therecharge offers AUD450 worth of credit <strong>and</strong> also features unlimited access to selected socialnetworking sites, unlimited SMS <strong>and</strong> 500 MB of data. The credit expires in 30 days.Du launches Emirati Plan for UAE nationalsUAE mobile operator Du has launched a new mobile package, the Emirati Plan, whichis exclusive to UAE passport or National ID holders. Benefits of the plan include specialmobile numbers, national offers, such as 2,000 national minutes, 1000 SMS <strong>and</strong> 2GB of dataper month, international offers with the special rate of AED1.45 (US$0.39) per minute forinternational calls to over 190 destinations, lifestyle rewards, invitations to major events, <strong>and</strong>exclusive content. The Emirati Plan is available in three tiers: Emirati 100 Plan, Emirati 250Plan <strong>and</strong> Emirati 500 Plan (numbers correspond to the monthly price plan). 5% of the fee paidby the user will be donated by Du to CSR initiatives in the country.Play offers 500 free SMS to new subscribersPolish mobile operator, Play (P4), is currently giving its new subscribers who have signed upto the operator 500 free SMS to all mobile networks in the country.Bakcell launches mobile package targeted at youth marketAzerbaijan’s Bakcell has launched the CINeration mobile connection package targeted at theyouth market. The package provides on-net calls for AZN0.02 (US$0.02) per minute <strong>and</strong> SMSor MMS messages for the same price to all Azerbaijan networks, as well as half-price mobileinternet access.www.informatm.com © 2011 Informa Telecoms & Media 45

With its prospects doubtful, WAC’sbest bet is to focus on OneAPIaggregation, says Guillermo EscofetCommentGuillermo EscofetIt’s perhaps too easy <strong>and</strong> fashionable to trash multilateral operator initiatives – to thinkthey are doomed to failure from the word go. But their dismal track record supports suchcynicism. And after attending Informa’s WAC Focus Day in Berlin a couple of weeks ago, onecouldn’t help but leave the event with a pessimistic view of the prospects for the WholesaleApplications Community, or WAC for short.The event attracted a good mix of delegates from the operator, developer <strong>and</strong> vendorcommunities, making for a lively <strong>and</strong>, at times, heated debate. Developers did the usualthing they do at such events: Pummel operators for what they see as their clumsy efforts tocompete with the big over-the-top players on the content-<strong>and</strong>-applications front. Even theWAC spokespeople who were there to drum up support for the initiative sounded less thanconvincing when answering questions about the initiative’s chances of success.Although WAC started off competently enough, diligently meeting the deadlines it imposedon itself through its strict rollout timetable, its hardest challenges are still ahead of it:• Attracting developer interest.• Getting h<strong>and</strong>set makers to support WAC applications.• Getting member operators to move fast enough with its implementation.All of these are huge challenges – <strong>and</strong>, many would argue, beyond WAC’s means to overcome.Describing WACBut before I continue I should explain what WAC is. And therein lies one of WAC’s problems:WAC is not easy to explain, since it’s trying to be more than one thing at once – <strong>and</strong> hasprobably bitten off more than it can chew. It essentially has three roles:• It is the inheritor of the JIL initiative started in 2008 by operators China Mobile,SoftBank Mobile, Vodafone <strong>and</strong> Verizon Wireless to offer developers a Web-runtimeenvironment <strong>and</strong> retail channel for widgets capable of working across a wide rangeof devices <strong>and</strong> mobile networks. The underlying aim was to take some developerattention away from the native-app ecosystems, principally iOS <strong>and</strong> Android, whichhave become the focus of mobile-app activity <strong>and</strong> innovation.• It has also taken the baton from OneAPI, another cross-operator initiative, launchedseveral years ago by the GSMA to get carriers to expose network APIs in a st<strong>and</strong>ardizedway <strong>and</strong> provide developers with a single point of access to the network capabilities ofnumerous carriers at once – <strong>and</strong> eventually all carriers globally. WAC’s role is to providethat single point of access.• It is also meant to act as a wholesale channel for content <strong>and</strong> applications, supplyingthese to the retail storefronts of individual operators around the world. WAC widgetsare not necessarily the only content that could be distributed through it.Attracting developersAll this is a complex message to put across. But without a clear message of what WAC is about,it will be difficult for it to grab developers’ attention. And if it can’t attract developers – <strong>and</strong>significant numbers of developers at that – there won’t be any point in it.It is hard enough for any operator-led initiative to attract the attention of developers – or, if itdoes get noticed, to be taken seriously. This is something operators that embarked a few yearsago on ambitious plans to build developer communities around their br<strong>and</strong>s have found outthe hard way. If you attend any of the big developer get-togethers, the operators are hardlyever mentioned – they are not on the developers’ radar. And if they are mentioned, it is withcontempt <strong>and</strong> derision.www.informatm.com © 2011 Informa Telecoms & Media 46

Few developers are aware of WAC, <strong>and</strong> most of those who are, are unconvinced by it. WACspokespeople say they are waiting until WAC can offer developers a fair crack at monetizationbefore they launch a big outreach campaign to attract them.Progress so farWAC, which was unveiled by operator club the GSMA in February 2010 <strong>and</strong> constituted into aseparate non-for-profit entity in July 2010, launched its first commercial service in February2011, dubbed WAC 2.0 – a developer platform for HTML5 Web apps linked to the storefrontsof eight major operators (China Mobile, MTS, Orange, Telefonica, Telenor, Smart, Verizon <strong>and</strong>Vodafone). Eight other operators were expected to hook up to WAC’s wholesale-applicationsoffering in 2011.But it is unclear how things have progressed since the commercial launch. There is noinformation on the number of developers that have signed up to the widgets platform – thevast majority are likely to have hailed from the JIL program – or on the number of widgetsdeveloped, placed on the storefronts of affiliate operators or downloaded/sold. And there hasbeen no update on how many operators have joined the initial eight as WAC members.Nor is there information on the number of h<strong>and</strong>set models that have been launched this yearsupporting the WAC 2.0 Web runtime. Ffive major h<strong>and</strong>set makers – LG, Huawei, Samsung,Sony Ericsson <strong>and</strong> ZTE – are signed up to WAC, but they have all been quiet about their WACimplementation plans. The h<strong>and</strong>set makers will only bother preinstalling the Web runtime ifoperators placing large h<strong>and</strong>set orders make WAC 2.0 a specification. But, with the exceptionof South Korean operators, there isn’t much evidence that operators are making a special pointof dem<strong>and</strong>ing WAC 2.0 support on new h<strong>and</strong>sets.WAC is planning to give an update to journalists <strong>and</strong> analysts soon, so maybe we’ll find outthe answers to these questions then. But that information was lacking at the WAC Focus Day.And the fact that WAC doesn’t yet feel that it has a good monetization story to tell developersshows that it hasn’t met with much commercial success.What’s coming upWAC is now saying that the first commercial release of WAC 2.0 will happen this monthin South Korea, where the three main operators will start offering WAC widgets to theirsubscribers – free at first <strong>and</strong> with a paid-for offering as of December.On the network-APIs front, WAC is gearing up to launch an in-app payments API linked to thebilling systems of several member operators, as part of its WAC 3.0 release. The API, whichwill be the first to be launched by WAC, is in a beta trial with a small set of developers <strong>and</strong> isexpected to launch commercially by year-end or at February’s Mobile World Congress.Some of the first operators to hook up to the WAC in-app billing API are likely to be DeutscheTelekom, Telefonica, Telekom Austria <strong>and</strong> Telenor, though it won’t be at group level. Forexample, Martin Prosek, manager of VAS-platform development O2 Czech Republic, part ofthe Telefonica group, told delegates that it would probably take the Czech carrier another yearor two to roll out WAC APIs.Sorting out prioritiesThere is much more enthusiasm among Western operators for WAC’s network-API offeringthan for its widgets offering. Speaking off the record with operator representatives at theshow, it became clear that most don’t see much point in persisting with the Web runtime –or, at least, don’t think that the Web runtime should precede everything else in WAC’s rolloutschedule, as it has until now.WAC’s original vision was that the network APIs would primarily be used to enrich the widgetsbeing created on its platform. But it doesn’t necessarily have to be that way. The APIs canbe a separate offering in their own right <strong>and</strong> be offered to the far-more-sizable communityof native-app developers out there. Furthermore, the operators see a much greater chance ofmonetization through the APIs than the widgets.But, of course, reorienting WAC toward serving the native-app-developer community goesagainst one of the fundamental ideas behind the initiative – that of establishing an alternativeapps ecosystem to iOS, Android <strong>and</strong> other native-app platforms. So it’s not an easy mindshift for WAC to make. Yet it is a shift that has already been made by many of the operatorswww.informatm.com © 2011 Informa Telecoms & Media 47

signed up to WAC. These operators will tell you – at least off the record – that there isn’tmuch point in trying to establish such alternative app ecosystems. They’ve tried to do thatthemselves <strong>and</strong> failed. Instead, they are now trying to piggyback on existing ecosystems – justas Telefonica is doing with its open-API program, BlueVia, which partnered with Microsoft’sdeveloper community, for example; or just as Vodafone is doing with Android, offering carrierbilling <strong>and</strong> its own content channels on the Android <strong>Market</strong> store.Piggybacking on other communitiesIn off-the-record conversations, operator execs involved with WAC admit that the initiativedoesn’t have much of a chance of directly attracting a large <strong>and</strong> diverse mass of developers.And they add that, although WAC might not be saying so in so many words, it too is aware ofthe problem. Therefore, WAC’s main strategy will be to go to existing developer communities,such as Android’s, <strong>and</strong> offer them its SDK. And, in this context, the network APIs will be theWAC asset most likely to be of interest to developers – as something they can mash up withthe applications they are already creating within those communities.Officially, WAC says it will be taking a two-pronged approach: It will try to recruit developersdirectly <strong>and</strong> will try to hook up with developer communities.Network APIsAlthough network APIs appear to be WAC’s trump card, there are doubts about the usefulnessto developers of most of the network capabilities that operators are busily exposing throughopen APIs. There is high dem<strong>and</strong> among developers <strong>and</strong> app-store owners for carrier billing. Ina commercial trial conducted in Canada last year for the OneAPI initiative, involving all threemain MNOs there, billing was by far the most requested API of the three that were offered todevelopers. The others were SMS <strong>and</strong> location.When you speak to developers in developed markets, many don’t see much point in being ableto add network-positioning (cell-ID) <strong>and</strong> SMS/MMS capabilities to their applications, becausemost smartphones – the h<strong>and</strong>sets for which most developers want to develop apps – nowcome with GPS, offering free <strong>and</strong> far-more-accurate positioning than cell-ID, <strong>and</strong> becausethere are numerous IP-based messaging services available for mobile phones that offer fargreater capabilities than SMS/MMS, also free (as long as the data consumed is covered by aflat-rate data plan, which almost all smartphone users have anyway).The picture is different in emerging markets, where smartphones are still scarce <strong>and</strong> thevast majority of people wanting to engage in messaging or location-based services on mobilephones have to do so via SMS <strong>and</strong> cell-ID, respectively.Telefonica, whose mobile-messaging APIs are central to the novel business model of itsBlueVia program, in which developers get a share of what their application users spend onSMS/MMS via the BlueVia APIs, would argue that there is dem<strong>and</strong> everywhere for mashingup SMS <strong>and</strong> MMS into mobile apps. Hence its alliance with Twitter in the UK, in which Twitterhas hooked up to BlueVia’s MMS API to allow Telefonica (O2) subscribers to share photos onTwitter via picture messaging.Operator curseBut, ultimately, it is the fact that WAC is primarily made up of operators that most conspiresagainst its chances of success. And that’s for two reasons: the natural rivalry <strong>and</strong> distrustbetween operators, <strong>and</strong> antitrust regulations.Although most operators have come to realize that their biggest competitors on the servicesfront are no longer fellow operators but OTT players, such as Apple <strong>and</strong> Google, it is in theirDNA to want to differentiate from their fellow operators – <strong>and</strong> to hold things back from them<strong>and</strong> strike out on their own – even when they put their signatures to multilateral initiativessuch as WAC <strong>and</strong> pay lip service to the need to work together for the common good.And even when there is a desire to do things together, it is often prevented by regulation. Abig h<strong>and</strong>icap for WAC is that it cannot go to developers with a clear message on the revenueshare/pricingmodel they can expect from selling widgets through operator storefronts orfrom hooking up to network APIs, because antitrust laws prevent operators from agreeing oncommon prices. That means that behind the common interface provided by WAC, developerswill be offered different terms by different operators. But in the current app-store climate,developers have gotten used to, <strong>and</strong> dem<strong>and</strong>, transparency on the business model beingwww.informatm.com © 2011 Informa Telecoms & Media 48

offered by store owners. So they are likely to view with suspicion any app-ecosystemproposition that doesn’t offer clear revenue-share terms.In the OneAPI Canadian trial, pricing was one of the stumbling blocks. Developers that hookedup to the joint SMS API offered by the three Canadian operators found that the wholesaleprice charged per SMS was higher than the price offered by traditional SMS aggregators! Thatis absolutely crazy <strong>and</strong> another example of operators shooting themselves in the foot. Afterall, one of the main ideas behind OneAPI is that you cut out or reduce aggregator-middlemenfees, turning cross-network access to APIs into a more affordable, self-service activity.Most valuable roleWAC has, potentially, a valuable role to play as an aggregator of OneAPI APIs. It is a not-forprofitorganization <strong>and</strong> will be taking a small share – it won’t say how much exactly – of therevenue made through the network APIs <strong>and</strong> applications sold through it, just to cover costs.It will levy its share from the operators, not developers – though it will be up to operatorsto decide whether to make up for that cost in the wholesale price charged to developers forhooking up to the APIs or in the retail price charged to users for purchasing apps.OneAPI desperately needs a global aggregator like WAC for it to start making progress <strong>and</strong>avoid ending up in the scrapheap of failed multilateral operator initiatives. Going about it on acountry-by-country basis – where all the operators in each territory aggregate their APIs withthe help of specialized third parties, as was done in Canada – is just not going to work. Fromwhat I’ve been able to find out, there is still no other country following in Canada’s footstepson OneAPI. And it’s not even clear whether the service set up in Canada will persist.The reasons for creating WAC, <strong>and</strong> for that matter OneAPI, were good. Operators desperatelyneed to aggregate their offerings to have any chance of competing against the global reach ofOTT players. But the clock is ticking, progress is slow <strong>and</strong> there is still a huge mountain to climb.www.informatm.com © 2011 Informa Telecoms & Media 49

BlackBerry outage: What went wrong,<strong>and</strong> what can RIM learn from theincident?CommentMalik SaadiIt looks like the BlackBerry service outage is now behind us, but it couldn’t have come ata worse time for RIM. The incident followed harsh criticism about the company’s recentfinancial performance <strong>and</strong> about product delays that disappointed its partners, chief amongthem the operators.So what went wrong in the RIM service systems, <strong>and</strong> what key lessons can the company drawfrom the incident?What went wrong?RIM said the service disruption was due to a failure of a core hardware switch related to itsBlackBerry Internet Servers (BIS); it would appear that the BlackBerry Enterprise Server (BES)was not affected. Not only did the switch fail, but the failover system that is supposed toback up to another switch <strong>and</strong> recover the system did not respond properly, even though thesubsystem had been tested before implementation.If the problem really is related to a hardware failure, then the service disruption should notrecur, <strong>and</strong> the problem should be contained once <strong>and</strong> for all. But if the problem had deeperroots <strong>and</strong> was caused by unknown software glitches, then a full recovery of the system couldtake days or even weeks, particularly if the system was exposed to malware or a virus attack.Another source of the outage could be a system overload resulting from the increased numberof BlackBerry users, combined with the implementation of new features <strong>and</strong> services such asmedia-content sharing, BlackBerry Messenger (BBM) music download <strong>and</strong> online interactivegaming. Not only do these services generate a huge amount of data that cross the BIS, theyalso expose the system to malware attacks. If this is the case, RIM will need to scale up itsinfrastructure considerably to cope with the traffic crossing the BIS, which could dem<strong>and</strong>significant investment <strong>and</strong> time to implement. In the meantime, to alleviate the trafficburden, the company might be forced to switch off some features <strong>and</strong> services that generatelarge amounts of data. If this is what is really happening, then the company could seriouslydamage its credibility further with its partners – <strong>and</strong> they would question their reliance onRIM’s road map.The situation could have been much worse if the BES had been affected, because the serverdeals with enterprise services that contain time-sensitive information, including e-mail. Lossof this content would have seriously exposed RIM to legal liability <strong>and</strong> would have pushedenterprise customers to look for alternatives immediately. Having said that, a number ofenterprise customers rely on BIS for e-mail services. In fact, RIM recently launched the BESlightversion, which lets enterprises download the BES free of charge <strong>and</strong> enables employeesto access the service via BIS. So employees now have the same functionality from BES, but gainaccess via a BIS plan.How has RIM h<strong>and</strong>led communication of the problem ?The short answer is “very badly.” And RIM’s poor communication on the incident has done thecompany considerable harm.Google or Apple would have h<strong>and</strong>led a similar problem more efficiently. When Apple hadproblems with the antenna system in the iPhone 4, it communicated the problem clearly <strong>and</strong>managed to calm the media furor within a day. This was mostly thanks to the interventionof Steve Jobs, Apple’s late CEO. Jobs talked to the industry about the problem <strong>and</strong> promised tocompensate the people it had affected or to provide a solution, in the shape of the “bumper,”free of charge.In contrast, RIM’s leadership was slow to respond <strong>and</strong> communicated poorly on the matter.The company’s co-CEOs, Mike Lazaridis <strong>and</strong> Jim Balsillie, apologized to customers only whenwww.informatm.com © 2011 Informa Telecoms & Media 50

the pressure escalated, <strong>and</strong> only on the third day of the crisis. True, both Lazaridis <strong>and</strong> Balsillieseemed contrite. But they struggled to identify main causes of the outage, <strong>and</strong> they did notsay what they were doing to address the situation or how they intended to compensatecustomers. At this stage, RIM gave the impression that it was struggling to contain theproblem <strong>and</strong>, worse still, that it was probably not even aware of the main reasons behind theservice outage.What will be the impact on RIM’s customers?Since BIS is the main service affected, consumers were the most exposed to the BlackBerryservice outage. As these customers do not usually deal with sensitive data, it will take morethan just a couple of days of bad user experience to persuade them to look for alternatives.Consumers often have a bad data experience because of poor cellular coverage or a shortageof mobile network capacity, so they will likely perceive the current BlackBerry incident as justanother failure of the mobile system. Having said that, if the problem repeats itself, it will bedisastrous for RIM, because customers might walk away from the BlackBerry.Although the BES was not directly affected, some businesses might see the incident <strong>and</strong> RIM’sresponse as a good reason to re-evaluate their reliance on centralized servers <strong>and</strong> instead lookto invest in more corporately controlled servers. Not only would this enable IT departmentsto minimize the risk of unforeseen collapses, it could also give employees more flexibility touse their own devices.What will be the cost of compensating customers?If we consider the fees customers pay to connect to BlackBerry services, an average of US$5 permonth, <strong>and</strong>, if we assume that all 70 million BlackBerry subscribers should be compensatedfor the loss of service they have suffered, then RIM should refund its customers about US$12million per day in total. This amount does not take into account liability fees for loss of dataor any related legal issues. RIM might have to pay more than US$100 million as a result, <strong>and</strong>the figure could increase for each subsequent day the service is out of action.A number of mobile operators in the Middle East <strong>and</strong> Europe are already taking the hit <strong>and</strong>are putting plans in place to compensate BlackBerry customers affected by the outage. Thecarriers are likely to ask RIM for compensation for damages incurred during the service outage.What about the BlackBerry br<strong>and</strong>?Although the company derives almost 80% of its revenues from selling devices, its br<strong>and</strong>relies on the services it offers, including secure <strong>and</strong> efficient e-mail <strong>and</strong> messaging, plus fast<strong>and</strong> data-optimized Internet-browsing services. These applications are enabled thanks to itsNetwork Operating Center (NOC), including the BIS <strong>and</strong> BES. A number of users are hookedon BlackBerry devices because they enjoy using the services rather than being specificallyattracted to the BlackBerry phones. If the problem is not resolved once <strong>and</strong> for all, consumers<strong>and</strong> business customers will consider looking for alternatives.What lessons should RIM take from the experience?RIM could draw a number of lessons from the experience, but the three most crucial are thefollowing:• Decentralize equipment <strong>and</strong> services <strong>and</strong> build more reliable backups. RIM shouldchange the core architecture of its service infrastructure by building more regionalizedserver infrastructure; this way, the company could have more flexibility to deal withpotential outages in specific regions without affecting the global reach of its services.This change would require considerable investment but would be a fundamental steptoward maintaining the reliability <strong>and</strong> quality of RIM’s services.• Moderate its ambitions <strong>and</strong> focus on specific market segments <strong>and</strong> services in linewith its core expertise <strong>and</strong> br<strong>and</strong>. RIM has extended its market considerably in a shorttime. For example, although the majority of BlackBerry users were business customersbefore 2009, today most of them are consumers. The company has more than doubledits user base in less than a year, from 32 million in August 2010 to 70 million in August2011. In addition, the company has upgraded a number of its services – including itspopular BBM from a basic text platform to a massive media center. The exponentialgrowth in the number of BlackBerry users, together with the significant grade ofBBM, is putting a huge burden on the BIS, <strong>and</strong> it is now questionable whether thisinfrastructure could adequately cope with the consequent uplift in traffic.• RIM should review the way it communicates with the industry <strong>and</strong> put contingencyplans in place to address potential problems during times of crisis. Service disruptionswww.informatm.com © 2011 Informa Telecoms & Media 51

<strong>and</strong> malfunctions often occur in the telecommunications industry. But these problemsare usually dealt with transparently <strong>and</strong> efficiently. RIM has h<strong>and</strong>led the situationpoorly, <strong>and</strong> its leaders were slow to apologize <strong>and</strong> reassure users that plans were inplace to compensate them.www.informatm.com © 2011 Informa Telecoms & Media 52

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The Senior Decision Makers Event!Successful Strategies for cross-platform Digital TVSend 3 Delegatesfor the Price of 2!See back page for detailsDigital TV Summit is the only event that exclusively bringstogether all aspects of the digital television industry6th - 7th December 2011, Doubletree Hilton, London West EndKey issues to be covered include:How established companies are growing theirbusinesses geographicallyThe rise <strong>and</strong> rise of non-traditional media suchas connected TV <strong>and</strong> OTTFinance <strong>and</strong> Investment in a tougheconomic climateGrowth opportunities for channelsStrengthening <strong>and</strong> extending the br<strong>and</strong>: how tobuild loyalty in a TV anywhere worldDelivery across multiple platformsFuture content revenue streams <strong>and</strong>distribution modelsMulti screen strategies: The marriage of content<strong>and</strong> innovation3D <strong>and</strong> the mass marketIncludes theEuro50 Gala Dinner6th December 2011Follow us on:Join us on:“This was a very interesting event, thatoffered the opportunity to learn more aboutdifferent successfull business models”[AC, Yahoo]“Very good event to meet with the keyplayers in the Digital TV area” [HS, Stream Group]“Great location ...very good networkingopportunities” [DS, Erste Group]Contact UsFor Sponsorship Opportunities contact:Patricia.arescy@informa.comTel:+44 (0)20 7017 5320For <strong>Market</strong>ing Opportunities contact:Ewa.kania@informa.comTel:+44 (0)20 3377 3229For Speaking Opportunities contact:Carolyn.dawson@informa.comTel:+44 (0)20 7017 4246To Register Visit www.digitaltvsummit.com