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Telecoms and Online Gaming: Why and How!



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  • 1. Telecoms and Online Gaming:Why and How!
    Fadi Mujahid
    30 November 2010
  • 2.
  • 3. Online Gaming
    Massive-scale multiplayer games played while connected to the Internet
    Gamers interact with each other
    Social Activities
    Trade, chat, fight, cooperate, work, etc.
  • 4. Online Games Business
    364M User worldwide (2010)
    Over 20% of Internet Population
    Revenue of $13B (2011)
    In 2007
    Internet growth rate 9.4%
    Online Game player growth 16.5%
    Single-Player Games growth -3%
    In Vietnam for example
    2010: 11% of the entire population is Online Game players (40% of the Internet population)
  • 5. Telco’s & Online Games Business
    High rate of online gaming growth is associated with partnerships between Telco's and online game companies
    In China (news headlines)
    Alcatel partners with Chinese Online Game Supplier (2004)
    Shanghai Telecom expands into online gaming business (2004)
    Shanghai Telecom, THE9 (online gaming company) jointly promote 3G services (2009)
    In Korea
    SK Telecom, through strategic alliances with game developers, is one of the top game publishers in Korea
  • 6. Telco’s & Online Games Business
    In China, during 2008, Online Gaming was the direct result of
    $4.5B revenue for Telecom Industry
    $1.6B revenue for IT Industry
    Orange and a success story
    Scores of success stories in other countries
  • 7. Why Telco’s are Involved in Online Games?
  • 8. Right Combination
    Online games are leveraging on the Telco’s mobile and broadband infrastructure
    Why not leverage on their own infrastructure?
    Some online games have higher ARPU than telecom services
    Telco’s can benefit the most from e-commerce and m-commerce booming
    Online Games and virtual worlds are the future of m-commerce and e-commerce
    Telco’s are focusing more on VAS and content as a revenue generator
    Online games provides rich content with high interactivity
  • 9. Right Customer Segments
    92% play at home
    Have broadband Internet access
    Have high-end PC
    Computer and Internet Savvy
    Over 50% age 16-25
    22% purchase online virtual goods at the game
    Mobile Payment
    Credit Card Payment
    Pre-paid Card Payment
  • 10. Billing & Payment
    Telco’s are already dealing with customer billing and payment services
    In S. Korea, Telco's offer online game publishers an integrated billing and payment services for 5% - 10% of the payment
  • 11. Online Games Future Trends
    Merger of virtual worlds and online games
    IPTV through your virtual world
    Telecommunication through your virtual world
  • 12. Game Power 7 Online Games Portal
  • 13. Game Power 7Online Games Portal
    Founded 2007 as the first online games company in the region
    Vision: Create a state-of-the-art online game hub in the region
    Released the first Arabic MMORPG in the region: Arabic Rappelzأمل الشعوب
    Attracted more than 25 major game developers to partner with to publish their games in the region
  • 14. Game Power 7Online Games Portal
    Long experience in media localization for the region
    Respect for cultural and religious concepts
    First Arabic Pipeline for online games localization
    Translation and text rewriting for story and dialogue
    Clothing modifications
    Modifications of controversial contents
  • 15. Game Power 7Online Games Portal
    Currently, 150k registered users
    4 MMO games
    Integrated Social network (similar to facebook) for the gamers
    Huge content repository produced by gamers themselves: videos, screenshots, paintings, etc.
    Revenue Source
    In-game Virtual Goods
    In-game Ads
  • 16. Game Power 7Online Games Portal