B plan ssm_2012


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B plan ssm_2012

  1. 1. Mobile Value Added Services ?
  2. 2. Location: TBE Egypt for payment solutions HQ, Maadi-Cairo-Egypt Experience: 18 years of experience managing business unit and commercial divisions, supported with Solid academic foundation (EMBA). Educational background: B.SC degree in telecommunication coupled with Executive MBA, major Marketing strategy’s formulation and implementation  Business Specialties: Sales, Marketing, Business Development, Product /Brand Management, Customer service, and Operation. Business industry: telecommunications, household appliances, and FMCG business in the Egyptian marketProfile: Proven experience and knowledge of telecommunications, household appliances, and FMCG business in the Egyptian market. 18 years of experience as professional Management at multinational environment . Fully awareness and skilled with planning, organizing, controlling, and leading skills. Proven experience in building new business from scratch in the Egyptian market. Reliable awareness of the Gulf area market "customers culture and habits" acquired during his 12 years living in Kuwait, 2
  3. 3.  The Egyptian ICT Market The Egyptian ICT value chain and key players Users Pattern What is MVAS and It’s Role MVAS’s customer value Market survey on VAS users MVAS Business Models & Entry strategies 3
  4. 4. 4
  5. 5.  Mobile penetration  Internet users 5
  6. 6.  International Internet Bandwidth per Broadband Subscribers inhabitant 6
  7. 7.  Mobile tariffs in $  Internet access tariffs in $ 7
  8. 8.  ICT Revenues  ICT Companies 8
  9. 9.  Portion of ICT spending by household 9
  10. 10.  Percentage of pre/post-paid subscribers  Percentage of pre/post-paid subscribers and expenditure per gender and expenditure per area 10
  11. 11.  Egypt is going through a telecom revolution, especially in the mobile segment. The users base has been adding 1 million subscribers per month (on an average) and recently the mobile subscribers base crossed the 60 million mark in June 2010. The growing intensity of competition has led to more services to end user at lower prices. As more users have been added to the subscriber base, it has led to a future downward pressure on operator costs. The success of the mobile market can be gauged from the fact that the average monthly spending of householders is by fare more than any ICT services, (internet, or fixed line) However the other side of this growth is that ARPU’s have been correspondingly declining . This declining has been accelerated by the marketing interventions like life-time free schemes, it is also a function of the structure of the Egyptian mobility market. At 95%, the prepaid segment completely dominates the market. The flip side is that, customer retention has become very difficult. Loyalties in the pre-paid segments are low due to the low switching cost and its common for user to routinely change their numbers and service providers. 11
  12. 12. 12
  13. 13. Customers & End Users• Business Market• Consumer MarketPublic Network Operators• Fixed Network• Mobile NetworkTelecom VAS Providers• Internet Access Providers (IP Addresses Internet)• Telecom Access Providers (MVAS Aggregators) (Special Numbering Gateway)Internet Telecom Service Providers (ITSPs) (Web/WAP applications)Wireless application Service Providers (WASPs) (SMS/MMS/USSD applications), (Voice/Video applications)Content & VAS Providers• Operators, Media, Web Service providers, Brands, Corporate, Administration 13
  14. 14. All those who are equipped with a terminal (mobile handset, fixed phone, PC desktop/laptop…) enablingaccess to basic services offered by network providers or value added services offered by VAS. 14
  15. 15. Under the regime of public network license, to deploytelecommunication network infrastructures with nationalcoverage for the provision of basic telephone services and VASs to their subscribers as well as carrier services to other operators and services providers. 15
  16. 16. Licensed by the NTRA, there are two types of providers:1. The Internet Access Providers: core business is to offer to the general public, internet access services via connectivity to the backbone infrastructures from national or international operators. Using access technology such as (Dial -up, Fixed wireless, ADSL, VSAT, WIFI, WiMax, GSM/GPRS/Edge and UMTS.2. The Telecom Access Providers (VAS Aggregators): core business is provide and operate special numbers (Short-Codes or Long- Codes) to third party service providers, enabling them to market their on-line service across all mobile operators. (through set up of interconnect and revenue sharing agreements between each mobile operator and the VAS aggregator. 16
  17. 17. Including Internet Services Providers (ISP) and Wireless Application Services Providers (WASP) over web, Vocal/IVR, SMS, WAP, MMS,Video under the regulation. They operate and manage the dedicated middleware application platforms, for both operators and third parties, on revenue share basis. 17
  18. 18. Any body (Telco Operator or non Telco), wishing to useICT to offer to its client some VAS over Web, Voice, SMS, WAP in complement to its basic services. 18
  19. 19. Produce and source different types of contents native format or mobile terminal format (text, audio, picture, video…) 19
  20. 20.  Household pattern Mobile users pattern Internet users pattern Market survey on VAS users “Quantitative” 20
  21. 21.  Proportion of household with ICT tool 21
  22. 22.  Proportion of household using internet 22
  23. 23.  Barriers to use Mobile  Proportion of mobile phones with accessories 23
  24. 24.  Proportion on spending on mobile  Activities undertaken via mobile phones services 24
  25. 25.  Frequency of users access to the internet  Frequency of users access to the internet/gender 25
  26. 26.  Main activities undertaken by users  Main activities undertaken by users/gender 26
  27. 27.  Main locations of users accessing the internet 27
  28. 28.  Still TV screen occupies the highest penetration rate by 95%, comes in second the mobile screen and then the PC. Till 2009 the slow rate of ADSL service penetration rate affect the increase of internet users %. This rate is expected to dramatically increase as result of GSM operators racing for bigger share of broadband services. The Egyptian mobile market still indicate less than 10% of users expenditure for VAS while 70% of there expenditure are still for voice calls. calls still the key driver of mobile users activities while VAS contribute smaller margins of activities, come in first SMS that contribute of 30 % of mobile activities. activities like, communication, video games, songs & SW downloading, educating and wireless learning contribute the highest margins of internet users internet activities. Based on the age group the location of accessing the internet changes, but still home is the first choice to all age groups to access the internet. 28
  29. 29.  Respondents profile1. Gender: M 62%, FM 38%2. Age: 25-34 76.5% , 35-44 11.5% , 18-24 9%3. Occupation: government employees (17.6 %), private companies (41.2%), engineers (38.2%), and students (3%)4. 3G mobile phone users (82.5%)5. Use mobile for both personal/leisure and business purpose (75.6%) 29
  30. 30. 1. 91.2 % are using M-VAS2. Famous M_VAS; mobile chat (70.5%), internet browsing (59%), CRBT (41.2%), LBS and m-banking3. The most wanted or planed M-VAS to be purchased are mobile TV and video steaming.4. 94.5% join SN site (Facebook, Friendster, linkedIn, etc)5. 62.5% of them access SN via mobile phone 30
  31. 31. 1. High usage of mobile chatting and mobile internet reveals that mobile operators have to keep offering their customers attractive price plans for mobile internet access.2. The customer high expectations on emerging services, such as mobile TV and video streaming, reveals that mobile operators still have to develop a viable business model for these services. 31
  32. 32. 1. Finding from this customer value measurements reveal that: • All of the customer value dimensions are important for customized mobile users • Customers can appreciate and are aware of the benefits and cost in using a mobile service.2. The mobile operators must realize that the services that they create will only be accepted if they are delivering enhanced customer value in exchange for their perceived costs. 32
  33. 33. In mobile telecommunication industry, VAS is defined as services that are:•Not part of the basic voice offer.•Allow the mobile operators to develop another stream ofrevenue
  34. 34. MVASMarket Size New Innovative Applications & Future High End Applications & Services Services Basic Applications & Services players continue to offer more Mobile TV Social Net working innovative services Operators too Focus on MVAS Video Confer- Multi-player to stem Falling ARPU M Commerce encing Gaming Video TV launch of 3G & LTE to drive high the MVAS market takes off, CRBT end applications, A large number of MVAS Contests/Ga Consolidation in the industry players enter various mes segments across the value Industry players explores chain Ring Tones operations across the value chain Wallpapers/ Graphics revenue from MVAS Info contribute to a mere X% of Mobile VAS contribution to total Services total mobile operator operator revenue expected to increase to XX% P2P SMS Year 34 the Mobile VAS industry has evolved over the years from basic P2P SMS to innovative CRBT. This trend is expected to continue in the future, leveraging new technology such as 3G, LTE which could lead to significant market growth
  35. 35. GSM (2G) 9.8- GPRS (2.5G) EDGE (2.75G) 14.4 kbps 56-144 kbps Max 384kbpsWCDMA/UMTS HSDPA (3.5G)(3G)284 kbps- Max 14.4 LTE (4G) 2Mbps Mbps 35
  36. 36.  Booming Economy, Egypt maintain its stable and growing economy that has created job opportunities and increased the spending power of an average Egyptian, this has resulted in higher disposal incomes and faster acceptance of new technologies with a willingness to spend for them. Increasing comfort levels with basic mobility services, Now a critical mass of users in Egypt who are experienced mobility users, they are very comfortable in using their phones and want to exercise the option of doing more on them beyond basic voice applications. 36
  37. 37.  Personalization of the digital world and digital devices, With increasing pressure and stress on individuality, mobile users also want to carry forward their individuality to their mobile, the success of Caller Ring Back Tone (CRBT) is excellent example which illustrates that user are ready to adapt to any service which offer them the option of personalization . Reduction in call rates, The gradual reduction in call rates has ensured that the expenditure on voice for a typical user has gone down, as a results more user have become comfortable in spending on MVAS as it does not significantly impact their overall expenditure on mobility. 37
  38. 38.  Market effort driving VAS, Success of VAS has become important for the growth of operators, most of them are now trying to innovate in their VAS offerings. This has led to a sharp focus on marketing and a somewhat limited the development of content. Focus on entertainment & SMS, Youth account for a large segment of users, also dominate the pre-paid category, this leads to that most of the rich contents available to the end users revolves around music, ringtones, wallpapers, the focus on entertainment has been a strong hook to develop the VAS category and operators & content aggregators have been sharply focused in their effort to pluck this low hanging fruit. Following the global trend TV channels have been focused on making interactive programs. Thus programs, especially sports, music, and content shows have started giving the option to their viewers to participate through SMS. This focus have been a key driver in increasing the familiarity with basic VAS for traditional low user segment like non-working women. 38
  39. 39. Category Characteristics ExampleEntertainment Designed for mass appeal Games, Caller Ring Back Tone (CRBT), music download.Info Characterized by the useful SMS Missed Call Alert information (MCA), Stock Update, Location Based service (LBS).M-Commerce Services involving monetary M-Banking and m- transaction using the mobile payment phone 39
  40. 40.  Person to Person SMS (P2P):, the most common form of mobile communication apart from voice. Ringtones: this is inclusive of monotones, polytones, truetones, also includes CRBT (caller ring back tones). Person to Application SMS (P2A): all range of messages sent by end users for contents and for seeking other information like news & updates. Application to Person SMS (A2P): wide range of service push by enterprise service providers, this include calls on IVR for all other services. Games & Data: include download of one play games and full play gamed also download of logos & wallpapers. Others : include MMS (Multi Media Messages) & subscription charge for WAP services. 40
  41. 41. Software/Network Technology Content Interface Customers Enablers 41
  42. 42. Customers Software/technoloNetwork gy Enablers Content Interface• Back-end system • Software • Mobile • Content• WEB & WAP Development Servers • Payment solutions Provision Portals• Internet • Security solutions • Content • Mobile Aggregation• Mobile • Software Platforms device Network • Application Development 42
  43. 43. Third Parties Aggregator National mobile Mobile End- (VASP) Operators UsersBrands & Media Special Network Access Numbers Providers Corporate Contents Billing Systems VAS platform providers Providers Other VAS Platform Providers (WASPs) 43
  44. 44.  Data/Text Platform1. The end user send the service request in an SMS form.2. The request goes to a server managed by the platform enabler on behalf of the operator.3. The content is arranged by the operator from the content aggregator who buys it from the content developer.4. This content is forwarded to the platform enabler who stores it in the server.5. The server automatically and instantaneously entertain the request from the customer as all these VAS are preloaded into the server. Voice Platform1. The end user calls up the service provider and avails of the service.2. The service is routed to a server managed by platform enabler.3. The server interact with callers using IVRS(Interactive Voice Recognition System), gathers information and routes calls to the appropriate recipient.4. The remaining chain is same as that of a text base platform. 44
  45. 45. Value is described as a “trade-off ” between overall benefitsgained and sacrifices made by the customerOn M-VAS customer value significantly:1. Impacts on consumers’ behavior and commitment2. Inf luences on customer satisfaction, and then, on loyalty intention.
  46. 46.  “Get” Value Dimensions (Benefits)1. Functionality value2. Social value3. Emotional value4. Freedom of choice value5. Epistemic value (curiosity/novelty) “Give” Value Dimensions (Sacrifices/cost)1. Monetary/Price2. Technical difficulties 46
  47. 47. 1. The most important benefit perceived by the respondents is functionality value, followed by freedom of choice, curiosity, emotional, and then social value.2. Respondents perceive that the M-VAS are technically easy to use.3. In terms of monetary cost, respondents perceive the additional cost that they have to pay for using M-VAS 47
  48. 48. 1. Technology (Place)2. Service Targeting (Packaging & Promotions)3. Consumer Targeting (People)4. Network Operators (Price)5. Network Externalities (Products) 48
  49. 49. 1. Focus only on age segment and needs (youth).2. Piracy of contents (barrier for investing in content development).3. Lack of infrastructure (absence of location based VAS).4. Preference for low feature handsets.5. High cost of VAS to end user6. Absence of utility services (m Commerce).7. Transparency in revenue sharing.8. Spam. (miss using) 49
  50. 50. 1. Mobile operators will lose importance in the value chain as the market for content aggregators will consolidate and their better bargaining power, this will ensure a revenue shift from operators to aggregators in the value chain.2. We will see revenue from entertainment VAS come down. End users want control and interactivity, therefore the applications to look out for in future will be user generated contents and mCommerce. However mobile gaming will continue to grow and will contribute a higher share to VAS pie. 50
  51. 51. 1. Regional content is giving a significant increase to the content market especially in the entertainment category. With increasing mobility penetration into the heartland of Egypt, significant VAS revenues will be driven by regional content from B & C class towns.2. Internet on mobile will become a more feasible option as leading players in the internet content space especially configure their sites for access through mobiles. Thus GPRS usage should pick up significantly. 51
  52. 52. Model Definition Revenue DriversSubscription Model Users are partially or wholly The key driver is to maximize charged a specific fee (for the willingness to pay by premium contents) irrespective creating high levels of unique of actual usage. customer value.Advertising Model Content and services are mixed The key driver is network with advertizing material, often traffic that rely on the in the form of banner ads. expansion of SN driven by user recommendation.Merchant Model This involves wholesalers and User mass is the key driver to retailers who trade mobile this model in order to be contents, goods, and services. rewarding or profitable. 52
  53. 53. Strategy Purposes/BenefitsStrategic Partnership Filling the gaps in the core competence among the players in value chainCustomer Value based mass •Differentiating services fromcustomization competitors •Boosting customer loyalty •Inhibiting customers move to competitorsMobile portals A single “Plate” for various “Dishes” Improve customer loyalty 53
  54. 54. M-VAS is changing the role of most players across thetelecom value chain, while also providing room for manynew entrants, and requiring reconsideration of business model and partnership. 54
  55. 55. OneCard,OneCard is a vision for how the internet will combine the best of what’s on offertoday to make your lifestyle easier, simpler, and safer.The world’s first Middle East multi-function secured e-payment services. providingMiddle East consumers with a platform to demand more online facilities in Arabic aswell as services catering specifically to their culture and society.A toll that empowers users to shop and buy internet connectivity, fixed and mobilecommunication services, plane tickets, stock market solutions, and even educationalresources for.OneCard aims to be the only online payment that you’ll ever need when you’reonline.Launched in Saudi Arabia in 2004.OneCard is the most comprehensive online payment solution you’ll ever need, 55
  56. 56. •Choose from the Categories• Mobile Charge Cards• Online Games•»DSL Cards• Prepaid Phone Cards• Internet Phone Cards• Stocks and Currency• Website Services• Hosting Services• Education and Books• Marriage Sites Cards• Download Sites And Movies• SMS& Mobile ApplicationsCards• Speed and safe internet• Chat Services• OneCard Cards• Online Shopping 56