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Time to look to 3G in the developing world for revenue?

While UK MNOs have had their appeal to get £3.5billion tax back on the £22billion they spent on 3G licences in the UK by the EU, the GSM Association (GSMA) is calling for network operators of the world to unite to roll out more 3G at in the 900kHz range across other parts of the world to drive up use of mobile internet — and therefore content services — by as many as 300million people.

Those who invested in 3G licences in the UK may well think twice about spending on more 3G when it has failed to deliver on its promise here in Europe, but it might be worth considering that markets in Europe are pretty flat for mobile and that new markets — especially in the Middle East and Africa — may well be just what is needed to start generating some much needed cash.

Studies of the Middle Eastern mobile market, for instance, reveal that larger average disposable income means that mobile revenues for operators could well be 20 per cent higher than in Europe. This could be very handy for the world’s MNOs and content companies — more readies means more frivolous spending on content.

And boy is it needed. As our top story this week shows, the UK operator 3 has seen impressive demand for its 3G based video services — getting 3million hits in two months — so the market, in the UK at least, is tentatively starting to adopt mobile content services. But is it enough?

Put simply, no. The only reason 3’s model works is because it is free to the consumer, being funded by advertising. This is likely to become a common — and complicated — business model across Europe and anything linked to advertising funding is not secure: ask your local TV company.

Perhaps introducing more widespread 3G across vast swathes of the non-European world could at least give operators and content companies an initial boost in these new markets. The much needed revenue this could generate could make its way back to Europe, where it can be invested in making 3G here work as it was planned to do and start to deliver services people actually want to pay for.

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3’s ad-funded video content gets 6million downloads in two months

UK 3G mobile operator 3’s ad-funded mobile video service, which went live in April this year as the first of its kind in the UK, has logged more than 6 million streams of video content to customers in two months. The service wraps demographically targeted advertising around free-to-view video content and the high hit rate so soon after launch validates 3's position as the first operator to launch an ad-funded content package of this type, says the MNO.

The Rhythm NewMedia powered service has already attracted content brands such as ITN and TV showsFifth Gear and The Apprentice and is being supported by advertisers such as Microsoft, Lynx, Ministry of Sound, Intel and Cisco.  In a demonstration of the long term potential of ad funded mobile content, more than 600,000 customers have already viewed clips — representing more than 10 per cent of 3's customer base in the first two months of the roll out.

Closer inspection of usage reveals some interesting trends around mobile content consumption amongst customers. Peak viewing times are around the morning commute (7am-9am) and the late evening (8pm-11pm) and the service is most popular amongst 25 to 34 year old men and 18 to 24 year old women. The most popular content types are breaking news and weather followed by horoscopes and movies.

Advertising is incorporated into video clips as start and end 'bumpers' around quality, branded video content, ensuring customer impact each and every time they view a clip.  Ads can be targeted according to user's demographic information and can be frequency regulated at an individual level —  restricting the number of times one consumer sees a certain ad.

John Penberthy-Smith, Marketing Director at 3, says: "This service is a win for customers and for advertisers.  People get to view great video content for free and advertisers get to reach out to their audiences in a targeted way. The volumes we're seeing on the service show that it's a model that works and that 3 is once again leading the market in mobile media."

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Extending 3G to GSM spectrum in 2012 could add 300 million new users, claims GSMA study

The widespread deployment of 3G networks in the 900MHz GSM spectrum band, as well as the 2100MHz band, could enable an additional 300 million people across Asia, Europe and Africa to enjoy mobile broadband services by 2012, with obvious implications for the mobile content and mobile internet sector, according to a study for the GSMA. 
 
The greater range of radio waves in the lower spectrum band and their ability to provide better coverage in buildings would enable operators to achieve much broader 3G coverage, particularly in rural areas. The study shows that a 3G network in the 900MHz band would achieve up to 40 per cent greater coverage than a 3G network in the 2100MHz band for the same capital expenditure.
 
The cost-effectiveness of 3G at 900MHz would be of particular significance in developing countries, many of which are looking to HSPA, an evolution of the leading 3G technology, to provide high-speed Internet access in the many regions that lack fixed-line infrastructure.

However, GSMA cautions that the level of success of 3G in the 900MHz band will depend on multiple countries making this spectrum band available in a harmonised way, so that equipment manufacturers have a large market to target and can quickly achieve economies of scale, particularly for handsets.
 
“National governments need to coordinate their spectrum policies to enable the widespread rollout of HSPA in the 900MHz band,” says Tom Phillips, Chief Government and Regulatory Affairs Officer of the GSMA. “Such coordination would make HSPA at 900MHz a cost-effective way to provide valuable broadband services to the many people untouched by the high-speed Internet revolution that has swept through the developed world.” 

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Freemantle to develop games based around Pop Idol for 41 territories worldwide

FremantleMedia Enterprises, the commercial division of FremantleMedia, one of the largest international creators and producers of TV entertainment brands in the world, is working with Namco Bandai Networks to develop, publish and distribute mobile games based on the Idols format, one of the world's most successful television franchises.
 
The multi-year agreement between Namco and FremantleMedia will see mobile games based on the TV talent show format launch across a number of territories in Europe, the Middle East and Asia Pacific.

FremantleMedia has sold the Idols format to 41 territories to date, and these local versions of the format are watched by millions of people around the world. Mobile games based on television shows have been consistent best sellers, with games based on familiar shows topping the UK's ELSPA mobile download chart for four months out of the last six.

This agreement is the first time Namco has licensed content specifically for a European audience, and follows the creation of a dedicated European mobile entity in January 2007.

Mark Newton, Executive Vice President, EMEA of FremantleMedia Enterprises' licensing team says: "Idols is one of our most important brands and we're pleased to be working with industry leader, Namco, on the development of mobile games in this multi-territory deal. Namco’s experience in games development and wide distribution network will ensure that we produce exciting and highly creative gaming experiences that fans of Idols can enjoy the world over."

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‘Intuitive Texting’ partnership offers MNOs chance to evolve messaging and generate new revenues

Messaging technology company Acision has agreed to partner with mobile instant messaging (MIM) specialist Colibra to make its next generation mobile messaging technology — called Intuitive Texting — interoperative with existing messaging services such as SMS and MMS.

The move creates what the companies see as the most comprehensive platform available for converged messaging and is aimed at mobile operators looking to further maximize messaging revenues, by offering MNOs services that can help them grow and evolve messaging offerings across platforms.

The intuitive messaging solution is already live with TMN in Portugal, supporting the operator’s cutting-edge ‘Super SMS’ service, as reported in Contentfutures earlier in the year.
 
“We are committed to providing our customers with industry-leading expertise for their messaging services,” says Steven van Zanen, Vice President Marketing at Acision. “Incorporating elements of Colibria’s Elevate platform into our intuitive messaging technology suite will enable operators to address the changing messaging needs of the digital youth community. In turn it will help operators capture a substantial portion of the expected messaging revenue growth. Our customers’ subscribers will be able enjoy a superior messaging experience, enhanced with the interactivity and additional community-centric features.” 

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Location, location, location-based services for Vodafone users?

The UK’s leading real estate website Rightmove.com has launched on mobile, as the move towards mobile internet services gathers pace.  The launch of Rightmove mobile means that home hunters and property professionals alike can search for properties wherever they are using the latest in mobile technology.
 
The mobile site is accessible to all networks and handsets which enable mobile internet browsing. However, Rightmove has partnered with Vodafone to launch the new mobile service and have built a special ‘find me’ facility available only to Vodafone subscribers, which allows user can ask the Vodafone mobile network to find their current location using satellite technology and can then see all available property in the area and be directed towards their nearest Rightmove agent.
 
All available properties for sale and for rent will be featured on Rightmove mobile, allowing Rightmove mobile users to access over 695,000 properties to buy or to rent anywhere in the UK, 24 hours a day, Users can directly contact Rightmove member estate agents, letting agents and new home developers and download property details to their phone.

“This is a great service for both buyers and sellers alike, as all UK properties to rent or buy will automatically appear on the Rightmove mobile internet portal,” says Miles Shipside, Rightmove Commercial Director.  We believe that mobile internet is set to become part of everyday life in a very short space of time, and Rightmove is at the forefront of this development, providing further exposure for our member agents and giving them access to new and emerging technology.”

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Vivendi Games Mobile lines up host of new titles to boost its 2007 ratings

Vivendi Games Mobile, a division of Vivendi Games, has announced plans to boost its standing in the mobile games marketplace with the launch of a diverse line-up of titles for the second-half of 2007.

The upcoming rosta includes a number of original titles and familiar franchises that highlight Vivendi Games Mobile’s product-driven approach to gaining market share and will continue to drive its rapid rise into the ranks of the industry’s leading mobile games publishers. Two of Vivendi Games Mobile’s 2007 titles released earlier this year, People’s Choice Hangman and Surviving High School ’07, have already been honored with Wireless Gaming World’s Editor’s Award. 

“The titles announced today will deliver highly enjoyable gameplay and are the product of pioneering design by our internal studios and external development partners worldwide,” says Paul Maglione, president of Vivendi Games Mobile.  “We look forward to bringing these titles to a mass market audience of mobile gamers in collaboration with our distribution partners.  All of the upcoming games will continue to feature a refreshingly different marketing approach that carriers have begun to associate with Vivendi Games Mobile, including one of a kind digital and viral initiatives as well as marketing strategies based on user-generated content.”

Games slated for a H2 2007 launch include:
• Crash of the Titans
• Delta Force
• Leisure Suit Larry: Love For Sail
• Shock Blocks - Brain Shock
• Slide N’ Loop
• The Legend of Spyro: Eternal Night
• Urban Attack
• SWAT: Elite Troops 

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Following the US legislative action to make most forms of on-line gambling illegal in the USA, Juniper Research have taken the opportunity to re-assess its forecasts for mobile gambling, providing updated numbers on casinos, lotteries and betting.

ContentFutures.com is a publication of Juniper Research Limited

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