Europe Mobile Instant Messaging Market

SUMMARY

Subscribers Demand a More User-Friendly Client Interface

Mobile instant messaging (MIM) is the latest value-added service offering within the mobile industry that allows subscribers to enjoy real-time instant messaging with presence information capabilities. However, mobile operators need to understand that subscribers give greater priority to convenience of using the service over the technology and capabilities it offers. Therefore, more efforts must be placed on creating user-friendly client interfaces that integrate effectively with the handset features. It must also indicate the presence information of any contact in the phonebook irrespective of the mobile network or the community the contact belongs to. In addition, there is a need for a centralised presence server that not only indicates the presence information for all multimedia applications that are integrated with MIM, but also reduces the network traffic that results from presence updates.

This Frost & Sullivan research evaluates the potential of MIM to increase mobile operators' data revenues in the Western European market. It examines the current market trends with respect to technology, business and pricing model. The study also provides strategic recommendations to mobile operators on how to best leverage the capabilities of MIM in the future.

Presence in MIM will be the Catalyst for Mobile Communications

Presence is MIM's unique selling proposition that will allow carriers to supplement falling voice revenues. Although some carriers regard presence as a service that diminishes operator's voice revenues, their viewpoint is not adequately justified. This is because presence helps users to "pull" an application rather than enabling them to "push" it through. For example, if a user is aware that their contact is in a meeting, by viewing the presence information, rather than making a call (push), the user sends an instant message requesting the contact to call later.

"Presence information can bring about emotional triggers that stimulate users to call or message, thereby bringing in additional revenues to operators," says the analyst. For instance, an SMS user would send double the number of messages while using MIM due to the real-time conversational experience which stimulates communication. Presence capabilities also indicate if the user is capable of sending multimedia messages or possesses a ‘push to talk' (PTT) device.

MIM to be a ‘Killer Combination' Rather than a ‘Killer Application'

In the future, MIM is expected to transition from its status as a stand-alone application into integrating with messaging applications such as MMS, e-mail and SMS. "Through session initiated protocol (SIP) based application phones, subscribers will enjoy unified conversational communications with seamless switching between different applications by accessing a common presence enabled converged address book," explains the analyst.

However, indicating the presence information for all multimedia applications onto a common address book is difficult given the current protocol standard. For successful deployment of MIM, operators must address server-server protocol (SSP) interoperability issues. Since most multimedia applications are based on SIP, the Open Mobile Alliance (OMA) is integrating SIP and SIMPLE (SIP for instant messaging and presence leveraging extensions) based protocols into their standards, thereby making MIM a ubiquitous service.

TABLE OF CONTENTS

1. Europe MIM

• 1. Executive Summary
  • 1. Key Findings
• 2. General overview of MIM
  • 1. Various modes of data communication
  • 2. Difference between fixed IM and mobile IM
  • 3. Voice revenues for fixed and mobile communications
  • 4. Difference between SMS and MIM
  • 5. Viral effect of IM communities
  • 6. The evolution of MIM
  • 7. Overview of IMPS clients
• 3. Issues in Mobile Instant Messaging
  • 1. Presence and availability
  • 2. Presence : Adding value to communications
  • 3. Presence as a source of revenue
  • 4. Emoticons and Avatars
  • 5. Presence Server
  • 6. Business models
  • 7. Pricing models for MIM
  • 8. Concerns of Mobile operators
  • 9. Advantages of SIP/SIMPLE
• 4. Drivers Restraints and Challenges
  • 1. Drivers and Restraints
  • 2. Challenges
• 5. Future of MIM
  • 1. MIM in the future
  • 2. Overview of MIM in the future
• 6. MIM Market Forecast
  • 1. Data revenues in 2003
  • 2. Forecast for MIM enabled handsets embedded with a client
  • 3. Embedded vs Non-embedded handsets
  • 4. Active MIM users / MIM enabled handsets
  • 5. MIM Market Penetration
  • 6. Active subscribers: SMS vs MIM
  • 7. Market revenue forecast
• 7. Scope of the MIM market
  • 1. Scope of the MIM market in Western Europe
• 8. Conclusion
  • 1. Conclusion
• 9. Recommendation
  • 1. Recommendation to mobile operators

2. Frost & Sullivan Awards

• 1. Frost and Sullivan Awards
  • 1. Frost & Sullivan Product Differentiation Innovation Award
  • 2. Frost & Sullivan Business Development Strategy Leadership Award
  • 3. Frost & Sullivan Product Innovation Award

List of Figures

• Western Europe MIM Market Revenue 2004 to 2010
• Voice revenues for both mobile and fixed line networks 1999 to 2007
• Data Revenues in Western Europe for 2003
• Data revenue break-down in 2003
• Western Europe forecast for MIM enabled handsets embedded with a client
• Embedded vs. Non-embedded client handsets 2004 to 2010
• Active MIM users/ MIM enabled handsets: 2004 to 2010
• Market Penetration for MIM in Western Europe 2004 to 2010
• Active subscribers forecast 2004 to 2010: SMS vs. MIM
• MIM Market Revenue Forecast: 2004 to 2010
• Data revenue break-down in 2010