1. Опубликовано на Procontent.Ru
Mobile VAS in Europe and MEF’s Role
Andrew Bud
Global Chair, Mobile Entertainment Forum
Executive Chairman, mBlox Inc.

2. Опубликовано на Procontent.Ru
mBlox - the world’s largest mobile transaction network
 Globally connecting content/service providers and mobile operators to
connect, clear and settle bulk MT, Premium SMS and WAP Billing
 2.5 billion transactions worth $500m per year across four continents
 Direct premium connections throughout USA, Europe and APAC
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3. Опубликовано на Procontent.Ru
Mobile Content - a huge global industry
700
Mobile
600
Paid for Content
Advertising
500
Data services
Internet
Access &
Traffic
400 Messaging
0 50 100 150
Advertising
300
Paid for Content
Mobile
200 Paid for Content
Advertising
Internet
100
0 10 20 30 40
0
Internet Mobile
*All revenues in $bn worldwide, 2006
Sources: Andrew Bud, MEF Vice Chair Analysis based on data provided by 2
Informa, Zenith Optimedia, Point-Topic, TIA,, Pyramid Research, Yankee

4. Опубликовано на Procontent.Ru
Personalisation content slows down Italy
€903m €1031m +15%
€1188m Interactivity
100 2% 4%
1,5% 4%
1,5%
8% 8% 6% Games +6%
90
-6%
80 35% 27%
35% Ringtones & logos
35% 30%
70 +6%
7%
Chat and social
60 networking
7%
50 7% +15%
25% 25%
Other Infotainment
40
45% (Sms, Mms, Micro-
2%
41% 2% browsing) +27%
30 38%
20
34% 34% Music +20%
15% 15%
10 1,5% 1,5%
1% Mobile Tv e Video
9% 11% 11%
Infotainment
+16%
0
2005 2006 2007
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5. Опубликовано на Procontent.Ru
Category Trends in another big EU country
3rd Party Services - TM Revenue Share
Operator Revenue from Off-Portal Services
retained revenue
Mar-06
Mar-07
Mar-08
Un
Ad
Al
Co
Do
M
M
No
TV
isc
ob
er
kn
ult
mp
na
n
/R
ts
ile
Mo
ow
t io
/
et
/I
ad
Ch
Co
n
n
iti
bil
nf
io
on
at
o
e
nte
nt
Category
4

6. Опубликовано на Procontent.Ru
Is the industry in trouble?
• Declining ringtone sales
• down 20% in Europe 2007-8
• Participation TV sharply down
• scandals in the UK, EU regulation
• Regulatory pressure everywhere
• abuse of PSMS MT causes severe consumer backlash
• Flat overall revenues
• declines in eg UK offset by slow growth in eg Italy
• Disappointing mobile advertising
• Disappointing mobile TV
• Consumers frightened of mobile data
• Content revenues leaking through cracks
5

7. Опубликовано на Procontent.Ru
Yet Europe’s market…
40%
35%
30%
25%
Mobile Media Users
20%
3G
15% Smartphone
10%
5%
0%
DE ES FR IT UK EU5 US
6

8. Опубликовано на Procontent.Ru
…is poised for change?
• 3G Penetration reaching critical mass
• Nearly 30% handset penetration in EU5
• HSPA coverage exceeds 80% of O2 UK, 90% of KPN Netherlands
• Quality smartphones aimed at consumers
• Nokia and Apple changed the environment
• Nokia, LG, Samsung, Blackberry marketing to consumers
• WAP Billing rolling out
• faster, safer mobile content payments
• Mobile social networking growing
• virtual goods are a business
• Applications as a new content category
• Apps stores making money now
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9. Опубликовано на Procontent.Ru
So many opportunities
• New mobile models for music
• Mobile now accounts for 40%-50% of digital music sales in Europe
• Ringback Tones
• On-portal sales disappointed in Europe
• Could off-portal unleash growth?
• Mobile Video
• From operator-underwritten…
• …to real business
• Integration with the Content Industry’s business models
• Reporting that works
• Real advertising
• Breaking away from Data Charge Terror
• Flat-rate
• Sender Pays
8

10. Опубликовано на Procontent.Ru
The Mobile Entertainment Forum (MEF)
addresses all of these issues
• MEF is currently running initiatives and policy
activity that address all these opportunities
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11. Опубликовано на Procontent.Ru
What is MEF?
• MEF is the global trade body for the
Mobile Entertainment industry
• MEF exists to represent the interests of enterprises
along the mobile entertainment value chain.
• The MEF’s mission is to:
• build awareness and promote the industry’s interests
• create business development opportunities
• develop commercial guidelines and best practices to
promote a healthy and profitable industry.
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12. Опубликовано на Procontent.Ru
Who is the MEF?
MEF has over 170 members worldwide.
content owners/aggregators
application developers
ad agencies
handset manufacturers
mobile service provisioners
analysts carriers
law firms
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13. Опубликовано на Procontent.Ru
MEF Russia-based Members
• High growth new territories are the future of MEF
• Leading-edge businesses seeking a global perspective
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14. Опубликовано на Procontent.Ru
MEF Global Members include:
Operators eg Global Mobile Recent Joiners eg
Content Players eg
• Vimpelcom • BBC
• Vodafone • Sony • Dolby
• Orange • Endemol • Flirtomatic
• Telefonica • MTV • Huawei
• T-Mobile • National Geographic • Jump Games
• Telecom Italia • Zed • MediaFLO
• Turkcell • Jamba • Vringo
• Du • Dada
• Bharti Airtel • Hungama
• Tata • Real Networks
• Maxis • Playboy
13

15. Опубликовано на Procontent.Ru
MEF Addresses all Stakeholders
Press
and
Public Opinion
Mobile and Digital Mobile
Entertainment Network
Industry Operators
Governments
and
Regulators
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16. Опубликовано на Procontent.Ru
MEF Insights provide competitive advantage
• Quality of Experience Study
• Broadest-ever study of consumer behaviour and experience
• 4,500 consumers in 19 countries – including Russia
• What mobile content do they use? What do they like?
• What have they heard of? What would they buy? Would they take ads?
• What is their quality of experience?
• Unique insight into the global industry
• Consumer Confidence Surveys
• How is the market reacting to the global recession?
• Quarterly updates on market health and robustness around the world
• Ad-Funded Mobile Entertainment
• Studies exposing the real size of the mobile advertising market opportunity
• Covers US, UK, France, India, APAC
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17. Опубликовано на Procontent.Ru
MEF Initiatives change the Industry
• Mobile Video
• Consumer preference research
• Business model analysis – what works in video?
• Standards gap definition
• Video download charts
• Content Reporting Standards
• 10% of revenue leaks down cracks between content providers and mobile
• Reducing risk, reducing cost, reducing conflict
• Standard templates for communicating along the value chain
• Enablers (coming soon)
• Helping operators become “smart pipes”
• Helping content providers deliver better consumer experiences
• Communicating content industry needs to the operators eg Ringback APIs
• Describing service needs and business models for new enabler APIs
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18. Опубликовано на Procontent.Ru
MEF Policy protects the industry
• Working with regulators to devise wise policies
• Working with industry to explain new regulations
• EU Directives impact the global market
• Audio-Visual Media Services (AVMS) directive – the MEF guide
• Unfair Commercial Practices directive
• Contributing to national discussions at members’ request
• UK consultations on child protection, consumer protection
• US practices for participation TV
AND
MEF Parties network the industry
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19. Опубликовано на Procontent.Ru
Summary
 The huge European mobile VAS industry is at a turning point
 The easy money is ending
 Some believe that faster speeds and advanced technology alone will
improve the consumer experience
 Some ignore consumer trust and regulatory pitfalls
 A maturing industry needs to grasp the huge new opportunities…
 …and make them work properly
 MEF is playing a key role in helping the industry to meet
these challenges with…
 Insights
 Initiatives
 Policy
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