The World's Top Ten Wireless Services

SUMMARY

Product overview

With diverse services being implemented worldwide, mobile operators need to focus on the biggest service opportunities. The Top Ten Wireless Services in the World: the critical elements to increasing take-up and ARPU proposes the top ten services in the world and provides case studies of each service, to demonstrate its winning characteristics and to identify how it can be reproduced and improved in other markets.

This is an essential report for any mobile operator planning its service strategy, as it focuses on the services that will make a real difference over the next five years.

The services chosen have been assessed using criteria including take-up, ARPU, market share, cannibalisation of existing services, revenue per Mbyte and profitability. The services include:

• a mobile TV and video service, which is driving 3G take-up and revenues
• an SMS service that achieves double the ARPU of most operators
• a set of bundled voice tariffs that has achieved dramatic increases in voice usage and revenues
• a voice service that is achieving true displacement of fixed lines
• an integrated WLAN/cellular service, that gives the best of both worlds

The Top Ten Wireless Services in the World: the critical elements to increasing take-up and ARPU answers your key questions:

• Which wireless services are the most successful, and why?
• Which are generating the most customers, ARPU and profitability?
• Which are the future stars?
• How do they do it - service content, marketing, pricing, handsets?
• How could they be improved?
• How could their success be reproduced in other markets?

Who should read this report?

• Mobile operators: identify the services that are leading the way in driving revenue (and profit). Understand the key factors in reproducing and improving their success in your market
• Handset and equipment vendors: understand the factors that will drive growth of network infrastructure and terminals to support wireless services
• Investors: identify growth opportunities in wireless services

TABLE OF CONTENTS

• 2-5. Contents
• 6. Document map: Executive summary
• 7. Executive summary
• 8. Document map: Introduction
  • 9. Lessons from the top ten help mobile operators to identify the biggest service opportunities and implement them effectively
• 10. Document map: Service evaluation process
  • 11. Leading services from around the globe have been evaluated to derive the top ten
  • 12. Shortlisted services were evaluated on the basis of market potential,effectiveness of implementation and suitability for reproduction
• 13. Document map: The top ten services
  • 14. The top ten comprises a diverse set of services
  • 15. Number 1 - Sprint PCS (USA) shows the opportunity to enhance voice usage and revenue with contract tariff bundles
  • 16. Sprint PCS has developed a wide range of bundled voice tariffs
  • 17. Sprint PCS achieves the highest voice usage and ARPU in the world
  • 18. The US market demonstrates the massive potential for voice telephony
  • 19. Operators can learn from Sprint PCS to drive growth worldwide
  • 20. Sprint PCS tariff designs encourage heavy usage
  • 35. 3 achieves good revenue per Mbyte with short video clips at affordable prices
  • 36. 3 has developed the breadth and depth of its content over time
  • 37. Mobile TV and video services have global potential
  • 38. Mobile TV and video services are emerging in other markets
  • 39. Number 4 - O2 (Ireland) demonstrates the ongoing value of SMS
  • 40. O2 (Ireland) offers SMS messaging and applications
  • 41. O2 (Ireland) leads the world in SMS revenue
  • 42. O2 (Ireland) has set a strategic objective to drive SMS revenue
  • 43. O2 (Ireland) shows that operators can still extract more value from SMS
  • 44. SMS will continue to be more heavily used than MMS for years to come
  • 45. Operators should drive SMS usage through services and marketing, not price cuts
  • 46. Number 5 - NTT DoCoMo has learnt from its 3G mistakes with FOMA
  • 47. FOMA builds on the success of the highly acclaimed i-mode service
  • 48. After a slow start, FOMA has grown strongly and driven good ARPU
  • 49. 3G coverage was extended to make the FOMA service more attractive
  • 50. Improved 3G handsets were developed to drive take-up of FOMA
  • 51. FOMA services have higher data consumption than i-mode
  • 52. FOMA pricing supports the growth of multimedia services
  • 53. FOMA demonstrates that 3G has huge potential but does not bring automatic success
  • 54. Other operators can learn from FOMA, but must beware its pitfalls
  • 55. Number 6 - Vodafone live! exploits global scope and economies of scale
  • 56. Vodafone live! in Japan evolved from J-Phones J-Sky service
  • 57. Global roll-out of Vodafone live! began in 2002
  • 58. Vodafone live! exploits the global market potential of the Vodafone Group
  • 59. Global roll-out lags behind that of Japan, but is growing steadily
  • 60. Global scale brings many benefits to Vodafone live!
  • 61. Vodafone can spread the cost of marketing, service development and content across many markets
  • 62. Vodafone has a compelling content portfolio, backed by major brands
  • 63. Vodafone must focus on 3G and Japan for further improvements
  • 64. Japan may continue to be a difficult market for Vodafone live!
  • 65. Vodafones competitors may struggle to compete with its global scale
  • 66. Number 7 - T-Mobile (Germany) integrates GPRS, 3G and PWLAN into TM3
  • 67. T-Mobile (Germany) offers a range of services and tariffs to support integrated cellular/PWLAN Internet access
  • 68. There is demonstrable latent demand for mobile Internet/intranet
  • 69. T-Mobile (Germany) is well placed to offer a compelling mobile Internet/intranet service
  • 70. TM3 exploits the respective benefits of 2G, 3G and PWLAN
  • 71. T-Mobile offers a range of tariffs, but must beware the timebased approach
  • 72. Operators replicating the T-Mobile approach need PWLAN hotspots
  • 73. Integrated services call for careful pricing
  • 74. Number 8 - Xing (Japan) demonstrates the potential of ringtones
  • 75. Xing offers a comprehensive ringtone service for all Japanese operators
  • 76. Xing has developed a variety of enhancements to its basic ringtone service
  • 77. Xing has exploited strong demand for mobile ringtones in Japan
  • 78. Xing combines an attractive subscription model with innovative services
  • 79. Ringtones have strong potential in other markets
  • 80. Ringtones have significant benefits over full-track music downloads
  • 81. Third parties similar to Xing may be the key to success
  • 82. Number 9 - IN-FUSIO offers mobile games and services worldwide
  • 83. IN-FUSIO offers mobile games and services to mobile operators
  • 84. IN-FUSIO leads the market for mobile game downloads in Europe
  • 85. IN-FUSIO brings together the components of a successful games service...
  • 86. ...offering specialist expertise coupled with global reach
  • 87. Independent providers are the key to growth of mobile games
  • 88. Number 10 - O2 (Germany) encourages fixed line substitution with Genion
  • 89. Genion offers cheap rate calls within a nominated HomeZone area
  • 90. Genion helps O2 to achieve higher ARPU than its German competitors
  • 91. Genion is a good first step to substitution of fixed lines...
  • 92. ... but highlights the need for developments
  • 93. Fixed-mobile substitution represents a big opportunity in all markets...
  • 94. ...but there are still barriers to be overcome
• 95. Document map: Lessons from the top ten services
  • 96. A study of the top ten provides valuable insights into the optimal balance of services
  • 97. Lessons from the top ten point to future service strategy
  • 98. A balanced approach to service development leads to success
  • 99. 3G provides the basis for driving increased service revenues,but the basics must be put in place
• 100. Document map: Actions
  • 101. Actions for mobile operators
• 102. Document map: Authors, acknowledgements and disclaimer
  • 103. Authors
  • 104. Acknowledgements, Copyright and Disclaimer
• 105. Document map: Lists of figures
  • 106. List of figures
• 107. Document map About Analysys reports and services
  • 108. Reports from Analysys Research
  • 109. Market intelligence services from Analysys Research
  • 110. Custom Research from Analysys Research
  • 111. Analysys Consulting: Strategies for Mobile Convergence

List of figures

• Figure 1: Monthly mobile voice usage and pro rata annual voice ARPU for selected operators in Western Europe and the USA, September 2004
• Figure 2: Forecast voice minutes from fixed and mobile calls in Western Europe, 2004?9
• Figure 3: Forecast retail revenue from fixed and mobile calls in Western Europe, 2004?9
• Figure 4: Proportion of prepaid users in Western European markets, September 2004
• Figure 5: Comparison of prepaid and contract ARPU in Western European markets, September 2004
• Figure 6: Relative duration of use of mobile phones, Internet, radio and TV by UK consumers, 2003
• Figure 7: Messaging and other non-voice ARPU of selected mobile operators, September 2004
• Figure 8: Growth of the FOMA 3G service in Japan to October 2004
• Figure 9: Growth of Vodafone live! users outside Japan to September 2004
• Figure 10: Comparison of customers available to branded service packages from major mobile operators, September 2004
• Figure 11: Forecast revenue from phone personalisation services in Western Europe, 2004?9
• Figure 12: Forecast revenue from mobile games in Western Europe, 2004?9
• Figure 13: Growth in Genion HomeZone service to September 2004