Russian Mobile Content Market overview

Russian Mobile Content Market overview

Russian Mobile Content
Market overview
Mobile Monday, 2007
Kirill Petrov, i-Free
Key market facts
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Country population
Mobile penetration
Mobile penetration (active subs.)
Subscriber Growth 2006 (active subs.)
Volume of mobile market, 2006
Volume of VAS market, 2006
Volume of Mobile Content market, 2006
WAP penetration (to active subs.)
Volume of mobile retail market:
145 mln.
104,6%
87,3 mln. (60,1%)
8,4 mln.
$14 bln.
$2 bln.
$0,4 bln.
17,3%
$5,65 bln.
Market shares of “big 3”
mobile operators
Market share, 2007bgn
Others; 15,1%
MTS; 33,7%
Megafon; 19,5%
Beeline; 31,7%
Mobile retail market
overview
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Top-5 retailers market share (2006,end): 78% (vs. 56% at 2006, bgn)
Average retail price per mobile phone, 2006: $193 (vs. $164 at 2005)
Mobile retail market volume, 2006: $5,65 bln.
Total mobile phones sold, 2006: 29,27 mln.
Volume of mobile phones retail market, bln.$
Shares in sales of mobile phones on 2H, 2006
Key differences in Russian
Market
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End of 2002 - B2C (premium SMS) content downloading in Europe
End of 2003 – B2C (premium SMS) content downloading in Russia
2002-2004 – development of on-portal models in Europe
2006 – main developments in on-portal model in Russia
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Î developed off-portal model, many independent service providers, less market regulation, no market barriers for offportal WAP, developed off-portal WAP
– Europe: operators control phone sales points, close cooperation with vendors on
phone models customization
– Russia: independent market of mobile phone distribution, no cooperation with
vendors
– Europe: subscription model kills demand on off-portal content (Jamba!/Jamster!)
– Russia: no subscription model
– Delays in 3G development in Russia
– Europe: Expansion of service providers: Europe -> Europe -> North America ->
Eastern Europe, Latin America, China
– Russia: Expansion of service providers: Russia -> CIS -> South-East Asia, South
Asia, Latin America, Africa
VAS trends and estimations
Customization
Infotainment
Games
Communities and UGC
Media Interactive
Mobile Marketing
m-Commerce
Rich media content
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150
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2002
2003
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2005
2006
2007
2008
2009
2010
Market dynamics and major milestones
Aggregation
launch InCore
Call-TV launch
Voice- и WAP-CPA
launch in Beeline
New aggregation model, MTS
MTS WAP-portal
launch
“Music project" of Beeline. New
price model on MegafonPro
Closing of some
call-TV projects
USSD-portal,
MTS
“relaunch“ of GOOD'OK (RBT)
service by MTS with IMMO.
Adv.start
New revenue
sharing in MTS
New Tele2 Portal
launch
BREW-browser
at Skylink
VAS structure
Revenue sharing
VAS revenues structure
Revenue sources
Source: Comnews Research
Market structure
2006 ~380-400 mln.$
2007 ~420-460 mln.$
How the revenues transfer
through the value chain
Revenue estimation, 2007
Key trends
Operator branded services and portals developments
MTS portal
Tele2 portal
Incore (Megafon’s aggregator)
Temafon (Beeline’s aggregator)
Specialization among content- and service-providers, defining the strategy
Specialization (IMMO, SMS Media Solutions, Next-Media)
Diversification (i-Free, Infon)
Vertical Intergration (Next-Media, i-Free)
Aggressive growth (А1)
Horizontal integration (Solvo, Nikita, Jump)
Market Infrastructure Growth, creation of market institutes
Content Providers (CSPA)
Rightholders (Digital Access)
Game developers (Association of Developers)
Numerous conferences and forums (2 majors: MoCo and VAS
Conference)
Key trends
Mergers and acquisitions
Investment Companies and strategic investors (Nikita+Solvo+Jump by
Marshall Capital, Infon by Monstermob (La Netro ZED))
Small startups by bigger players
Fast WAP-media development
Specialization of WAP-players
WAP-advertizing developments
WAP-resources quality growth
Innovations
A lot of Startups
Fast technology change
3G launch by the end of 2007 by all key players
New service infrastructure needed
Review of business-models needed
New services and rich-media content needed
What if?..
Two ways of growth
or…
2009:
VAS
670mln.$
WAP-sharing
WAP-index
WAP-advert.
3G-CPA
WAPID
3G-ODP
Subscription
ODP
RBT-CPA
3G
m-Commerce
RFID-m-Commerce
LBSCPA
On-Device Adv
Infosubscription
WAP-penetr.
3G-Flat-Rate
Video-IVR, Video-RBT
Adult
Who we are
i-Free is the leading content & service-provider of information and entertainment
services in Russia and the former Soviet Union
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Our core work:
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Production and distribution of content and rendering of information services, development
of community-based services, SMS broadcasts, WAP and voice portals
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Interactive media projects
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Mobile marketing & mobile business solutions
What distinguishes us:
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6 years of successful work experience in the mobile telecom market
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International success. We currently operate on the territories of Russia, Ukraine,
Kazakhstan, Moldova, India, China, Brazil, Mexico
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High level of technological development. We have covered all of the basic technologies
available on the market: IVR, SMS, MMS, WEB, WAP, STK, J2ME, BREW
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Professional and experienced staff. Our staff are >280 highly qualified professionals
working in different areas
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Active market position and leading role in Russian Mobile Content and Service Providers
Association
Thank you!
Kirill Petrov
Managing Director i-Free
[email protected]