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Quarterly Wireless APRU Down Worldwide

Although global wireless subscribers and revenues continue to grow, mobile operators are seeing less and less revenue per user. TeleGeography's latest GlobalComms update shows wireless average revenue per user (ARPU) is declining worldwide, with only North American and Western European companies near their Q2 2004 levels. Eastern Europe was the biggest loser, down more than 27%, followed by Asia-Pacific and Africa, down 18% and 12% respectively. Global ARPU was down 13%.

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Source: Cellular News

Realtones Generate Bulk of Ringtone Revenue

Telephia has reported that 60% of mobile ringtone revenues are generated by realtones. Traditional mono and polyphonic ringtones comprised nearly 33% of the revenue share, while callback tones accounted for 7% of the total revenues. Telephia debuts the first ever actual audience measurement report for ringtones in its new Mobile Audio Report, which tracks purchase activity for mobile ringtones, including traditional ringtones, realtones, callback tones, and voicetones from an opt-in panel of more than 30K wireless subscriber bills.

According to the Telephia Mobile Audio Report, realtones from pop divas Gwen Stefani, Destiny's Child, and Mariah Carey were favorites among mobile users. Gwen Stefani's Hollaback Girl, Cater 2 U by Destiny's Child, and We Belong Together by Mariah Carey were three of the leading realtones in July 2005. The Rap/Hip-Hop, Pop, Soul/R&B, Voice, and Alternative/Punk categories led realtone genres, comprising 76% of all realtone revenues. Rap/Hip-Hop alone accounted for a quarter of realtone revenues, with Pop and Soul/R&B posting 17% and 14%, respectively. Voicetones snatched 11% of realtone revenues, while the Alternative/Punk genre posted a 9% share.

Top Five Ringtone Genres by Revenue Share

Ringtone Genre Share of Revenues Rap/Hip-Hop 25% Pop 17% Soul/R&B 14% Voice/Sound 11% Alternative/Punk 9%

Source: Mobile Audio Report, July 2005
Note: Verizon data includes callback tones only; Cingular data includes AT&T subs only.

"Realtone downloads are more likely to mimic the success of online digital music downloads given the inclusion of vocals and improved voice quality," said Kanishka Agarwal, Vice President of New Products, Telephia. "Gwen Stefani's Hollaback Girl is a great example, as the song has topped both the realtone and online digital download charts, but did not make it into the top 20 for mono/polyphonic ringtone charts."

"The desire for personalization drives mobile users to pay a premium for ringtones with downloads at $1.99 as compared to $0.99 they pay for the entire track online. Realtones' high revenue share shows consumers are willing to pay even more at $2.99 for tones that sound more like a real music track," added Agarwal.

Source: Cellular News

Use of Mobile Data Services Hampered By Poor User Experiences, Survey Says

Macromedia has announced findings of a new consumer survey conducted by Harris Interactive on behalf of Macromedia. The poll confirms that more than 8 out of 10 U.S. adults currently own a cell phone, but a combination of factors relating to consumer experience, including download speeds, confusing menu interfaces, poor graphics quality, and lack of relevant information, serve as barriers to increased use of data services.

The survey reports that, in addition to making and receiving calls, the most common cell phone activities include: using the calendar and address book (42%), downloading or playing games (33%), and downloading ringtones (32%). Among the least common uses is accessing online information services (21%). Consumer experience factors that prevent consumers from doing more with their cell phones include: connecting to network-based services is too slow (22%), menu options are not consumer-friendly (19%), and quality of graphics is too poor (13%). In addition, more than one quarter of U.S. adults polled (27%) claim that the information available from their cell phones is not useful for their day-to-day activities. Among those surveyed, 53% of U.S. adults would access traffic updates on their phones if the service were available, 42% would use their cell phones to participate in emergency responses such as Amber Alerts or SMS support of emergency responses, and 34% would access information about city events, restaurants, entertainment. Further illustrating how the cell phone has become an integral part of consumers' lives, 42% of adults said that they would not go on vacation without a cell phone, compared with only 24% who said that would not go on vacation without a camera.

Source: EContent.

Email, Weather, and Search Top Mobile Internet Use

Telephia has reported that email, weather and search websites are the most popular categories among consumers logging online via their mobile phones. According to Telephia's newly launched Mobile Internet Report, 4.8% of the 191 million U.S. wireless population accessed web email sites in June 2005. Weather-related sites posted a reach of 3.9% of the total wireless audience, while the Search category attracted 2.9%. The Sports category came in at the No. 4 spot, with a total reach of 2.5%, while the News/Politics category attracted 2.1% of wireless consumers logging on via their wireless devices.

Table 1. Telephia Top 10 Mobile Internet Categories (U.S.)

                                            Subscriber Age Breakdown
                                            (% of audience for the
                                                    category)
Website Category      Subscriber Reach (%)  18-24  25-34  35-54  55+
1. Email                               4.8%    19%    29%    41%   11%
2. Weather                             3.9%    20%    28%    43%   10%
3. Search                              2.9%    24%    30%    32%   14%
4. Sports                              2.5%    18%    30%    41%   12%
5. News/Politics                       2.1%    14%    22%    45%   18%
6. Entertainment                       2.1%    18%    42%    33%    6%
7. City Guides/Maps                    2.1%    23%    34%    36%    8%
8. Games                               2.1%    21%    40%    34%    5%
9. Portals                             1.4%     4%    47%    33%   17%
10. Business/Finance                   1.2%    20%    17%    41%   21%
-------------------- ---------------------- ------ ------ ------ -----
Source: Telephia Mobile Internet Report, June 2005

Source: Cellular News

Teens love texting, study claims

FRAMINGHAM, Mass.-Nearly as many U.S. teens acquired their cell phones primarily for text messaging as for talking, according to a study from consultant firm IDC Corp. and text-messaging provider SMS.ac.

The poll of 8,000 teens found that 36 percent of respondents bought their phones to send text messages, while 49 percent said chatting with friends was the main reason they got their phones. The study also found that boys were more inclined to use text messaging than girls, while girls were more likely to have purchased their handsets to call family or to use in emergencies.

"Unlike any technology before it, cell phones have become important social catalysts for teenagers," said Dana Thorat, an IDC research manager. "While parents can rest assured that they can reach their mobile teenagers virtually any place and any time, teens conversely perceive their phones as a means for gaining social acceptance and staying connected with friends."

Source: RCR News

Small Number of Mobile Games Drive Most Revenue

Telephia has reported that nearly 30% of mobile game titles account for 80% of mobile game revenue. According to the latest data from Telephia's monthly Mobile Game Report, consumers paid an average of US$3.86 per game purchased for their mobile devices.

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Source: Cellular News

Web sites influential in consumer wireless purchases

Popular Internet search engines like Google and Yahoo! are having an important influence on consumers shopping for wireless service, according to a survey conducted by predictive research firm Compete Inc. and Yahoo! Inc.

The study found that 37 percent of new wireless subscribers said online searches influenced their offline purchase of wireless service, compared with 21 percent who were influenced by TV commercials and 17 percent swayed by print advertisements.

The survey predicted that by the end of the year, nearly 24 million consumers will perform a search for wireless service on the Internet, representing more than $12 billion in potential annual service revenues. Nearly 19 million of those searches will involve the industry's five largest operators-Cingular Wireless L.L.C., Verizon Wireless, Sprint Corp., T-Mobile USA Inc. and Nextel Communications Inc.-while more than 5 million customers will search for prepaid services offered by Tracfone Wireless Inc., Virgin Mobile USA L.L.C. or Boost Mobile L.L.C.

Source: RCR News

Japan's KDDI to introduce mobile e-flyer

KDDI announced a new mobile marketing service, targeting small businesses. Dubbed as Mobile Electronic Flyer Service, the new initiative offers small business owners to target their registered customers with electronic flyers sent onto their mobile phones.
It should be mentioned that flyers are popular way of marketing in Japan. You can see marketing people distributing flyers, often written by hand, on every corner of any crowded street in big Japanese cities.
The major difference from e-mail is that the e-flyer can be handwritten, including custom drawings and maps. KDDI bets that the novelty effect will gather customers’ attention to this new service.
Small business owners need to send a Fax to KDDI that will notify users by e-mail about the new flyer available for download. The users may click on the enclosed in the e-mail link to see the actual flyer stored on KDDI’s server (they need to set up a special free-of-charge software on their handsets to use the service first).
The service trial will be conducted from mid August to the end of November 2005.
Source: KDDI

Study says mobile gaming up 70% annually

The number of households engaged in mobile gaming increased more than 70 percent during the past year, according to a study released Friday by Ziff Davis Media.

The company's annual gaming survey found that 27.9 million U.S. households played wireless games, up from 16.3 million in 2004. Players spent an average of $13 on games in the last two months, the study determined, and the average gaming session was 19 minutes.

Those who don't play wireless games cited small screen sizes, a lack of quality titles and high costs as the main barriers to mobile gaming.

The Davis Media study, which surveyed more than 1,500 random households, contrasts with a report released by The NPD Group earlier this week. That poll found a mere 7-percent increase in wireless gamers during the past year-from 20 percent to 27 percent of U.S. wireless subscribers-and discovered the average gaming session lasts 11 minutes.

Source: RCR News

Ring tone downloads on the rise

The number of American mobile-phone services offering ring tones and video clip downloads is rising rapidly, new research shows.

Almost 23 percent of mobile-phone owners--around 30 million people--have downloaded ring tones to their mobile phones, while 5 percent did so in the previous year, a study by Ipsos Insight found.

***

"This represents yet another opportunity for industries looking to monetize U.S.-based digital-music distribution. Through a combination of increased ring tone availability and the desire to personalize one's mobile phone with their favorite or the most popular rings, the growth in this already burgeoning industry will likely continue unabated," Matt Kleinschmit, vice president at Ipsos Insight, said in a statement.

The study said 6 percent of mobile phone owners have reported having downloaded full songs to their mobile phones, though that type of service is not available widely yet. And a small number of mobile users are also trying out ring backs, short video clips and music videos.

Source: CNet

US mobile data market grows 80% as SMS finally makes impact

The value of the US mobile data market increased by around 80% during the year to March 2005, according to the June 2005 edition of Informa Telecoms & Media’s World Cellular Data Metrics, as interoperability agreements finally helped SMS make a significant impact on the market, which has traditionally lagged behind Europe and Asia.

Total revenues from non-voice services for the four largest US mobile operators totaled more than USD 1.2 billion in Q1 2005, compared to USD 689 million in the same period of 2004.

Source: Mobile Game Developer

Mobile Carriers Are Distinct in Demographic Make-Up and Content Consumption

If you're an American 18-year-old male who downloads mobile games, you're more than twice more likely to be a customer of Sprint than any other carrier. M:Metrics has found that there are distinct demographic characteristics among the top traditional carriers and MNVOs.

"Our data shows that each carrier attracts its own demographic, which correlates with the consumption of mobile content," observed Seamus McAteer, senior analyst and chief product architect, M:Metrics. "It's not just MVNOs that are focused on marketing to segments of the market -- traditional carriers also appear to appeal to subscribers based on age, gender and household income."

M:Metrics found that carriers like T-Mobile and Sprint have a high percentages of younger subscribers, particularly those between the ages of 18-34, the most voracious consumers of mobile content. As a result, mobile content consumption on both networks is above average, particularly in gaming, photo messaging and text messaging.

Nextel's subscriber base is even more niche. Nextel subscribers are 47.4% more likely to be a 35 to 44 year old male compared with subscribers on other networks, and the carrier has the highest%age of users whose household annual income surpasses $100,000 per year. Interestingly, a Nextel bill is four-times more likely to be paid directly by an employer than a bill from any other carrier.

Source: Cellular News

Teen Uniform includes Wireless

Devices such as cell phones, handheld computers and MP3 players are threatening the traditional hold of the apparel industry on the spending priorities of the country's 15- to 24-year-olds, a report from MarketResearch.com division Packaged Facts indicated. Wireless companies looking to tap the segment's estimated $485 million in spending power should consider alternative marketing techniques.

Source: RCR News

Yankee Group Reveals Nearly 50 Million US Workers Are Mobile

Enterprises evaluating wireless options predominately choose on price and coverage area. However, as the mobile workforce grows, enterprises have placed new value on wireless cost control and other administrative tools to help manage those expenditures. Forty percent of respondents place high importance on software that allows mobile phones to replace main office phones, which paves the way for increased growth.

Although clear growth opportunities exist, the enterprise market is dominated by three companies. Cingular continues to lead the B2B market with a 34% market share. For companies with only one carrier contract for all wireless services, Verizon edges out Cingular with a 31% market share, compared to Cingular's 30% stake. Once completed, the Sprint/Nextel merger will create a third force in the market.

Source: Business Wire

Is mobile marketing still in its infancy?

The number of cell phone owners now reaches more than 1.5 billion worldwide and overtakes the number of global Internet users. Despite the huge popularity of cell phones among consumers, the lack of simple mechanism of placing advertisements onto small screens of mobile phones keeps advertisers away from wireless channel, according to Strategy Analytics.

In its "Advertising on the Fourth Screen: Opt-In To Dominate Mobile Marketing Spend" report, the market research company foresees only 2% of total $47 billion online advertising budget spent on mobile marketing in 2010, leaving it a niche revenue opportunity. According to Strategy Analytics, the main barrier for mobile advertising will be a "low consumer acceptance of advertising on their handsets, device fragmentation and negative sentiment from carriers towards marketing supported content models."

"We expect sponsored video and audio services to grow strongly over the next five years capturing 17% of total spend by 2010, while browser based advertising will claim the greatest share with 44%," said David Kerr, Vice President of Strategy Analytics.

Mobile Advertising Spending Worldwide, by Type, 2010:

• Browser – 44%
• MMS – 18%
• Download/streamed rich media – 17%
• Download Mid (Java, BREW) – 16%
• SMS/EMS – 5%

However, marketers look at mobile advertising with interest. According to a recent report from Forrester Research, at least half of the US marketers consider mobile phones as a new advertising channel in near future.

New Advertising Channels US Marketers Are Interested in Advertising on, 2005 (as a % of respondents):

• Blogs – 64%
• RSS – 57%
• Mobile devices (including phones and PDAs) – 52%

Source: eMarketer

Text Message Pilot Program Generates Big Response

CLX is a wireless marketing company that is striking success with a new text message program. Their PollCast™ has teamed up with the hotel chain http://www.marriott.com/ to survey wireless customers. The program has demonstrated a response rate of 60%.

PollCast™ has had success with other marketing campaigns with major retailers and consumer brands. The program is on a subscriber-based, opt-in basis with users reaping benefits such as money, miles, or points for their participation in company polls.

It is unique in its ability to provide clients with data about the ‘hard to reach’ 15-30 year old customers.

Source: Yahoo! Finance

Coming Soon to a Tiny Screen Near You

Americans bought $4 billion in wireless data services last year, Yankee Group says. But 85% of that was for simple text messages--and only one-third of U.S. residents have done even that. The remainder came from downloaded applications. And 60% of that sliver was for the easiest download of all:ring tones, according to Qpass, which helps carriers bill for data services.

Source: Forbes

Verizon Wireless Reaches 200 Million Downloads

By June, 2005, Verizon is expected to surpass 200 Million downloads. Verizon's Get It Now service currently contains a library of more than 500 games, productivity tools, information services, ring tone providers, wallpaper providers, an IM chat client -- Mobile IM -- that includes access to Yahoo! Messenger, MSN(R) Messenger, or AOL(R) IM (AIM), and more. Verizon Wireless nationally launched Get It Now in September 2002. Other statistics from Verizon include:

- More than 120 million applications in the past 12 months, up from 61.5 million downloads during the prior 12 month period.
- More than 56 million applications in the first five months of 2005, compared to 34 million during the same time period of 2004.
- More than 22.5 million game applications from January through May 2005 - nearly double the same period last year.
- More than 50 million games have been downloaded since the launch of the service.

Source: PR Newswire

Men Chat More Than Women with Mobile Phones

Cingular Wireless conducted their 5th Annual study about mobile phone usage and found "...men use their phones 35 per cent more than women, spending 571 minutes a month talking on their mobiles, compared to an average of 424 wireless minutes a month for women."

When it comes to the type of use, men use their mobile phone for business more than women, but the opposite is true when is comes to home use "...with women spending 491 minutes each month versus the 321 minutes per month that men use."

Also in the study, the survey revealed that [women] use...[the camera function]...more frequently, with 60 per cent of women taking pictures regularly, as opposed to only 40 per cent of men.

Source: vunet.com