Mavam México inglés

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MEXICO Prepared by

4TH EDITION

MAVAM

Acision Monitor for Mobile VAS Š Acision, August 2013. All rights reserved.



MAVAM | Acision Monitor for Mobile VAS

Editorial The fourth edition of MAVAM (Mobile Value Added Service Monitor) Mexico, launched by Acision, is specifically focused on Mobile Messaging and Value Add Mobile Services (VAS), and strengthens its commitment to provide the industry and operators with the intelligence to understand market dynamics and launch and tailor mobile value added services for increased consumer uptake. The rise in Smartphone popularity is bringing the internet to more and more users' hands. With this, new ways for end user interaction and connectivity are being launched over networks all the time, and today, SMS and chat-based over-the-top (OTT) and instant messaging services coexist with traditional voice services. This provides consumers a variety of ways of communicate, who can choose which service suits their needs best dependent on the recipient and user usage trends.

Fatima Raimondi Acision President Latin America

The report highlights that the number of mobile subscribers in Latin America continues to grow, resulting in an increasing use of value added services and total revenues. In Mexico, Value Added Services represent 33% of operators' sales, equivalent to $MEX 15.09 billion (USD 1.21 billon) in the second quarter of 2013. SMS services alone generated $MEX 7.77 billion in the second quarter of the year accounting for 52% of VAS. Mobile Internet revenue was recorded at $MEX 4.80 billion in the same period and represents a 32% of VAS. Operators concur that SMS is still very important, especially for the 80% of the population who do not have a Smartphone. In Mexico, operators have also introduced packaged pricing plans to include SMS and mobile data, with plans incorporating a large number of SMS to accommodate usage. In addition, we are seeing a trend where today’s consumers are messaging more over a number of different platforms and via multiple devices - a global phenomenon, which we have seen not only in our research but across other analyst and industry data points. Today, tech-savvy consumers want something ‘extra’ – a combination of universal reach, uncompromised reliability and enriched features – which can only be fulfilled by using multiple services concurrently. Today there is no single application, that meets all consumers messaging requirements which works across any platform, any device at any time. But can operators fulfill a role by providing one single chat/messaging service in the future?

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MAVAM | Acision Monitor for Mobile VAS

With chat OTT services now being incorporated into different platforms, such as social networks, there are some moves towards consolidating platforms. However, mobile operators globally are taking a number of approaches to address this trend, by either partnering with OTT partners or launching their own Rich Messaging and RCS type services, which may one day provide one access point for all messaging. When questioned about such as service in Mexico, referring to the GSMA’s RCS initiative, “Joyn�, respondents showed a hypothetical acceptance with only 12% of those questioned stating they would not use it. In addition, operators are looking at ways to enrich messaging services, such as enhancing the traditional SMS experience. In this report we highlight some of the services which operators can activate across their network and their appeal to consumers. When questioned about a range of services, these triggered some high interest, showing that if operators were to launch some of this functionality it would fit with consumer expectations, and enable new routes for service monetization and incremental revenue. We hope you find the report interesting reading, providing analyses on user preferences in chat services, instant messaging, SMS and MMS, as well as the possibilities of generating other revenues based services over SMS that empower the value added business and user engagement in Mexico.

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MAVAM | Acision Monitor for Mobile VAS

Index

3

Editorial

6 7 11 14

1. Introduction 1.1. Value-Added Services in the World 1.2. Value Added Services in Latin America 1.3. Value Added Services in Mexico

17

2. MAVAM (Acision Monitor for Mobile VAS)

18 20 28 30 35 39

3. Messaging services (Special topic) 3.1. SMS 3.2. MMS 3.3. Instant Messaging (IM) 3.4. SMS vs IM 3.5. Joyn

40 40 41 41 42 44 44 45 45

4. Mobile Internet 4.1. Use of the Internet through Smartphones 4.2. Plan Type 4.3. Internet uses on the Smartphone 4.4. Social Networks 4.5. Mobile Banking 4.6. Mobile Commerce 4.7. Maps and location 4.8. Marketing and Mobile Advertising

47

5. Conclusions

50

6. Glossary

53

7. Technical File

54

8. Team

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MAVAM | 1. Introduction

1

Introduction The year 2013 has been focused on operators launching high speed, fixed (Fiber), as well as mobile (LTE/4G) networks. In the United States, LTE launches are contributing to market growth, while Europe is a region still dominated by 3G. In Latin America, two races are taking place: one for 3G universalization, together with a decrease in Smartphone prices with Firefox supported web phone expectations, and the other, for LTE networks to launch which, as of the closure of this report, stood at 21. In developed countries, handset-grant elimination models, device-to-device shared data plans and operators' information systems redefinition are being tested, so as to offer integrated services and customized options that will allow fostering consumption and increasing the ARPU. This global crisis and the market dynamics are generating a new merge and acquisition process among operators as well as through the purchase of, or interest in, application and content companies.

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MAVAM | 1. Introduction

1.1. Value-Added Services in the World To understand the value added services (VAS) business worldwide, we analyzed VAS evolution across the biggest mobile operators in various regions around the world. We compared the Q1 values for 2013 and the same period in 2012, except for China Mobile, which publishes annual data as of the closure of 2012 and is compared to 2011. The companies evaluated are:

Graph 1.1

Analyzed Operators

• América Móvil – Latin America • AT&T - United States • China Mobile • Orange (France Telecom) - France • NTT Docomo - Japan • Telecom Italy • Telefónica • Telefónica Spain • Telefónica O2 United Kingdom

1 As of the closure of this study, Telefónica was in the process of selling this operation. 2 In the sale process as of the closure of this edition.

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• Telefónica O2 Germany • Telefónica O2 Ireland2 • Telefónica O2 Czech Republic • Telefónica Latin America • Vodafone • Vodafone United Kingdom • Vodafone Germany • Vodafone India


MAVAM | 1. Introduction

Graph1.2

Total ARPU Variation - Selected Operators In USD - Q1 2012-2013

Source: Convergencia Research based on operators' financial statements

In most cases, these operators suffered decreases in their total ARPUs (Voice+VAS) in dollars, some of which is due to the change in exchange rates. Among the companies studied, ATT kept its ARPU stable and Vodafone Germany incremented it. European suppliers register ARPU’s sharpest drops for different reasons; firstly, they cite that the economic crisis has been preventing greater consumption. On the other hand, some companies mention in their financial statements, that it is predominantly due to the negative impact of EU Regulation 531, which by mid-2012, imposed control over retail prices of roaming services and a reduction in mobile termination rates, among other regulating measures. And lastly, increased competition has pushed service prices downwards even more as operators fight to retain their customers. In the case of Vodafone Germany, the drop in voice ARPU is compensated by VAS as a result of the increase in Smartphone adoption and SMS, voice and data packages. As a

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MAVAM | 1. Introduction

result, Vodafone‘s network plans are tailored to reflect this, which include SMS, unlimited calls, and a large capacity for data services for any Smartphone model, which may also be combined with fixed services, such as ADSL. ATT maintained its ARPU as the drop in voice usage is compensated with VAS generated by Smartphones as well as by the new users who choose a more economical data plan line. NTT Docomo drops are partly explained by the yen devaluation compared to the dollar, which accumulated 12.8% in the last year. In the case of Telefónica Latin America and América Móvil, the ARPU fall is mainly explained by the local currencies devaluation compared to the dollar (Brazil, Argentina, Venezuela, among others), which is not compensated by the appreciation of other countries' currencies (Mexico, Colombia, Peru).

Graph 1.3

VAS Share / ARPU Services In USD – Q1 2013

Source: Convergencia Research based on operators' financial statements

3 In the sale process as of the closure of this edition

VAS ARPU continues increasing its share over the total revenue. NTT Docomo, Telefónica O2 United Kingdom, Telefónica O2 Ireland3, Orange (France Telecom), and Vodafone United Kingdom, already obtain 50% or more of their value-added revenues.

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MAVAM | 1. Introduction

AT&T reports on SMS combined with voice rather than separately, so their VAS cannot be compared exactly to the rest of the operators. Although, VAS relevance grows, in absolute terms, some operators also suffered drops in VAS as well as Voice ARPU. Generally, they are European operators and this is explained by the crisis and competition.

Graph 1.4

Variation in revenue contribution for Voice services vs. total ARPU VAS Between Q1 2013 and same period in 2012

Source: Convergencia Research based on operators' financial statements

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MAVAM | 1. Introduction

1.2. Value Added Services in Latin America In the second quarter of 2013, Latin America registered 687.354 million mobile subscribers and 116% penetration. This year’s growth in the sector will be guided by a) increased Smartphone adoption and the potential positive effect of Webphones with a Firefox operating system that were launched in late June 2012, and to a lesser extent, tablets; b) LTE service evolution in Mexico, Colombia and Paraguay and LTE launches in Brazil, Chile and other countries to follow later this year and c) development of other value added services, such as mobile payments, content, operator OTT services and M2M. Spectrum bids expected in different countries for the next year could bring incorporation of new players. As of the close of this report (June 2013) for instance, DirecTV had obtained spectrum in Colombia. It is also possible that, as from this year, some mergers and acquisitions may take place. Lines and revenue growth rates in Latin America, which are higher than those of developed markets, are strategic for operators groups. For example, in the case of Telefónica, revenues generated in Latin America are already equivalent to 51% of the group's revenues, and in the case of América Móvil, Latin America's strength allowed it to start, its expansion towards the European continent, between 2011 and 2012, with the acquisition of interests Dutch operator KPN, among other acquisitions. Operators believe increasing the postpaid database due to the rise of Smartphones and, at the same time, they restrict the accounting criteria of prepaid lines, so in some cases decreases are observed in the number of lines.

Graph 1.5

Smartphones and mobile broadband lines share over the total lines Q2 2013

Source: Convergencia Research

4 Excluding Nextel

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MAVAM | 1. Introduction

In several countries, the ARPU is adversely impacted by a reduction in interconnection rates. Voice traffic appears to grow although prices are reduced by the packetizing effect. SMS and MMS service usage continues to grow but at lower rates than previous years. Latin America still isn’t showing a cannibalization effect from instant messaging (IM) and OTT platforms, such as in Europe. Meanwhile, SMS prices also suffer reductions due to packetizing.

Graph 1.6

Mobile telephony growth by type of revenue Q2 2013 variation vs.Q2 2012 variation in USD billions

Source: Convergencia Research

Graph 1.7

Mobile telephony sales by type of revenue Q2 2013 vs. Q2 2012 in USD billions

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MAVAM | 1. Introduction

Graph 1.8

VAS sales share Q2 2013 in USD billions

During the first semester, some devaluations (Argentina, Venezuela and Brazil, among others) and local currencies appreciations occurred, and as a result, total revenues measured in dollars were affected. Meanwhile, in the local currency, most countries saw an increase in their total sales. Mobile broadband connections represent 20% of the lines, and Smartphones 18%, and both of which push VAS share in total revenues. Total revenues in the second quarter represented 25.29 billion dollars, growing 12% compared to the same period in 2012. Voice generated USD 13.96 billion and had a 1% drop in dollars. VAS increased 24% and generated USD 7.67 billion during the quarter and, as a logical consequence of the rise in Smartphones adoption, handset sales grew by 61% compared to 2012 and added up to USD 3.64 billion during the quarter. Revenue growth is therefore driven primarily as a result of VAS and devices sales. VAS represents 35% of Latin America operators' revenues. Mobile internet was the greatest rising VAS service(33%) and represents 50% of the total VAS market. SMS represents 41% of VAS and grew 17% in the second quarter 2013 compared to the same period of 2012.

Graph 1.9

VAS ARPU share / ARPU Services

Q2 2013 in USD

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MAVAM | 1. Introduction

Mobile lines by operator

1.3. Value Added Services in Mexico

2Q 2013 variation vs. 2Q 2012

In the last quarter of 2012, Telcel and Movistar launched the first LTE networks in the country, while Nextel started rendering 3G services in Mexico. These technological evolutions turn Mexico into one of the countries taking the lead in the evolution towards the fourth generation mobile technology. This technology is available in ten cities through Telcel.

Graph1.10

At the close of the second quarter in 2013, Mexico had 98.84 million mobile lines (excluding Nextel), the equivalent to an 89% of penetration over the population. Growth for the second quarter of 2013 was 5% compared with the same period in 2012. All operators had negative variations between 3% and 11% in their ARPUs (local currency) as a result of the drops in interconnection rates that impacted on the voice and SMS businesses. Source: América Móvil, Telefónica and Cofetel balance sheets. Iusacell estimated. Excluding Nextel.

Graph 1.11

Market share by operator

In thousands of lines for 2Q 2013

Source: América Móvil and Telefónica balance sheets. Iusacell estimated. Excluding Nextel.

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MAVAM | 1. Introduction

Total ARPU main operators

Graph1.12

In MEX$ 2Q 2013 vs 2Q 2012

Mobile business net sales, including handsets, in the second quarter of 2013, were $MEX 57.05 billion (USD 4.57 billion) and had a 10% year-on-year increase in the local currency (19% in dollars). In the case of voice services, the year-on-year variation was 1,13% (9,36% in dollars), equivalent to $MEX 31.15 billion (USD 2.49 billion) of invoicing in the second three months of the year. Handset sales grew by 40% in Mexican pesos (51% in USD) and accounted for $MEX 10.80 billion (USD 0.86 billion).

In USD 2Q 2012

Value added services, driven by mobile internet services, are the growth engine for mobile telephony revenue in Mexico, which grew 13% in the local currency (22% in USD) and represented $MEX 15.09 billion (USD 1.21 billion). Mobile internet accounts for 32% of VAS and, in the second quarter of 2013, it achieved sales for $MEX 4.80 billion (USD 0.38 billion), 51% more than in the second quarter of 2012, as a result of Smartphone growth and the operators' strong competition on mobile internet, both 3G and LTE services (although network coverage is only just beginning).

Source: Am茅rica M贸vil and Telef贸nica balance sheets. Iusacell estimated. Excluding Nextel.

Graph 1.13

Mobile telephony business net sales

In millions of $MEX and billions of USD 2Q 2013 vs. 2Q 2012

Source: Convergencia Research calculations based on operators' balance sheets. Excluding Nextel

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MAVAM | 1. Introduction

SMS and MMS sales in the second quarter were of $MEX 7.76 billion (USD 0.62 billion), with no variations in local currency compared to the second quarter 2012 (8% more in dollars). The lack of growth in revenue is a consequence of the reduction in interconnection rates and the packages on offer with other services. Operator plans focus on large SMS bundles instead of unit payment to support their use against the development of instant messaging. Both effects reduce the average price of SMS sent.

Graph 1.14

VAS sales by type of service In billions of $MEX and billion of USD 2Q 2013 vs. 2Q 2012

Source: Convergencia Research calculations based on operators' balance sheets. Excluding Nextel

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MAVAM | 2. MAVAM (Acision Monitor for Mobile VAS)

2

MAVAM

(Acision Monitor for Mobile VAS)

The Acision MAVAM study's objective is to analyze the evolution of services in Latin America. This has been carried out in Brazil since 2009 and in Mexico and Argentina since 2010. This Mexican edition has a new content structure adapted to support the changes in the market analyzing new aspects of mobile value added services. This edition has the following characteristics: 1. 825 internet surveys (CAWI) were carried out. As explained in previous editions, the data collection method generally derives from users who are familiar with technology, so some data (explained in the text) may not be extrapolated to the total number of mobile telephony subscribers in Mexico. 2. 50% of the surveys were performed in the Federal District and the remaining 50%, in the rest of the country. 3.

4. Other topics analyzed in this edition include: Mobile internet, social networks, mobile commerce, mobile banking, maps and location, and marketing and mobile advertising.

N E

O

This edition's special topic is messaging services, and special emphasis was placed on the analysis of Smartphone users; therefore there are a higher percentage of them in comparison to what is estimated for Mexico.

S

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MAVAM | 3. Messaging services (Special topic)

3

Messaging services

(Special topic)

In December 2012, the first SMS turned 20 years old. Since then, short messages via mobile networks have turned into a pillar of mobile communications, due to its ubiquity as well as in terms of profitability for the operator. SMS has won popularity around the globe to its simplicity and reliability. In Latin America, with a prepaid base that may be around 80% and 90% of subscribers and an ARPU of around USD 10, the price ration between SMS and minute of voice was fundamental when expanding the frequency of use of text messages. In those countries where SMS was introduced with a unit value per message sent substantially lower than that of voice minute, the frequency was higher5. In 1996, ICQ was created, the first computer instant messaging system. Then, ICQ was sold and, as from 1999, Microsoft Messenger has turned into the number one desktop chat platform. Some years later, MSN changed its name for Windows Live Messenger until 2011, when Microsoft bought the IP voice system Skype and decided to integrate, under this latter brand and platform, instant messaging and IP voice services.

N O

E

S

With Smartphones, instant messaging (IM) reached mobile phones and users adopted it at high speeds. In previous MAVAM editions, we could observe that, despite the many entertainment options, the telephone's main function was still communication with others: voice, SMS, e-mail, instant messaging and social networks. The instant messaging growth is such that according to Informa consulting firm, in 2012, for the first time, more chat messages than SMS messages were interchanged in the world. However, neither service is a perfect substitute: SMS may be sent from, and received

5 See MAVAM Brazil, Mexico, Argentina, earlier editions

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MAVAM | 3. Messaging services (Special topic)

in, every phone and from any operator in the world, while instant messaging systems are almost restricted to smartphones and also require data connection. Users' appetite for instant communication gives rise to new Chat companies with varied business models. From the emblematic BlackBerry Messenger (BBM) linked to the manufacturer's operating system, to WhatsApp -which plans to start charging for its services at some point- to Line, which revenue comes from the sale of digital assets (stickers and games). Moreover, besides text chat, messaging platforms add functionalities such as sending photos, IP voice and other communication alternatives. The number of IM ventures is giving rise to a merge and acquisition wave, where any member of the telecommunications value chain may be interested in acquiring or being acquired by another one. For example, Facebook acquired Beluga, Deustche Telecom bought Pinger, Yahoo acquired interest in Kakao and Samsung has shown some interest in MesaageMe and Viber, according to versions circulating in different media. Operators and even social networks try to incorporate chat for their customer communities. For example, in 2011, Facebook launched Facebook Chat; in 2012, Telef贸nica launched its TuMe rich communications application. And it is precisely rich communications that the market aims at. Even with initiatives like the Joyn application, driven by operators and manufacturers through the GSM Association. All these transformations happen at record speeds, that is why the special topic of this MAVAM edition is instant messaging.

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MAVAM | 3. Messaging services (Special topic)

3.1. SMS The 90% of respondents used the text messaging service (SMS) during the last three months. There seems to be a reduction in the number of people who use SMS compared to previous MAVAM editions; however, the samples are not accurately comparable, as in this edition, there is a higher percentage of Smartphones, because it is aimed at analyzing the Smartphone user segment in particular.

Graph 3.1

Test message users (SMS)

Sample: total sample (825 cases- 1Q 2013)

SMS: Feature Phone Users vs. Smartphone Users Graph 3.2

Sample: Feature Phones 141 cases, Smartphones 684 cases (1Q 2013)

3.1.1. SMS frequency of use According to Cofetel (Comisi贸n Federal de Telecomunicaciones) between 2012 and 2011 SMS traffic grew 15%. But in the first quarter of 2013 the forecasted growth compared with the same period of 2012 was only 1%. SMS sent by mobile subscriber drops 6% from an average of 82 SMS per month during the first quarter of 2012 to an average of 78 SMS per month during the first quarter of 2013. However some operators agreed that the SMS business would remain stable regarding users and revenue in the short term.

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MAVAM | 3. Messaging services (Special topic)

Graph 3.3

Evolution of SMS sent over the first quarter Cofetel data

Millions of SMS sent

Average SMS per subscription

In the MAVAM survey the frecuency use of SMS is similar between Feature Phones and Smartphones. The most frequent value (44% of Smartphone users and 46% of users Feature Phones) is, in both cases, between 2 and 5 SMS per day.

Graph 3.4

SMS (Text Messages) frequency of use

Sample: Smartphone users (611 cases) - Feature Phone users (135 cases)

Smartphone

Feature Phone

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MAVAM | 3. Messaging services (Special topic)

3.1.2. Plans and recharges In MAVAM's sample, the preponderant hiring modality is prepaid, both for Smartphones (50%) and Feature Phones (85%).

Graph 3.5

Hiring plans by type of device Sample: Smartphone users (684 cases) Feature Phone users (141 cases)

Smartphone

Feature Phone

38% of those who have a postpaid plan say that it includes up to 100 SMS; in the second place are those who do not know how many messages their plan includes (21%) and the ones who pay per message sent (21%). 40% do not need to hire additional SMS to their plan.

Graph 3.6

SMS plans and recharges (Postpaid) Sample: Postpaid (364 cases)

SMS planes

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SMS frecuencia de recarga


MAVAM | 3. Messaging services (Special topic)

People who told they had a prepaid plan were asked how many SMS were normally included in the recharges they bought: 70% were not able to specify this information, which could suggest that there are opportunities to improve the way in which prepaid users are informed about offers or SMS recharge alternatives, or that initial recharges are enough. 14% answered that the most frequent recharge modality is the option with less than 30 SMS.

Graph 3.7

SMS plans and recharges (Postpaid) Sample: Prepaid (461 cases)

3.1.3. Difficulties in SMS use Questions were made about the difficulties experienced regarding SMS and MMS use in Smartphones and Feature Phones. Smartphone users pointed out that difficulties were the cost (53%) and the impossibility of knowing if the message has been delivered (48%). Meanwhile, for 38% of those who have a Feature Phone, delivery speed is the main barrier, and second (48%), they agree with Smartphone users on the impossibility of being certain if the message has been delivered or not.

Graph 3.8

Difficulties in Smartphone SMS use

Sample: Smartphones - Multiple Choice

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MAVAM | 3. Messaging services (Special topic)

Graph 3.9

Difficulties in Feature Phone SMS use Sample: Feature Phones - Multiple Choice

Graph 3.10

(Detailed) Reaction in front of an eventual elimination of the SMS service. Sample: SMS Users 818

3.1.4 SMS relevance To know the relevance SMS service has for users, they were asked what they would feel if operators eventually eliminated the service. 53% considered that the lack of SMS service would represent a nuisance. This may lead to think that the level of substitution of SMS for IM is not total and that it has certain characteristics that user’s value and consider, to begin with, as irreplaceable by another service or that the substitution process is incipient between one modality and another or that SMS is an intrinsically natural service to mobile telephones.

3.1.5 New SMS-based services Due to the transformation time of the messaging business explained at the beginning of this chapter, it is interesting to analyze the consumers' willingness in front of new functions that could be offered together with the SMS service. To find out about willingness, two questions were asked: one for users to indicate the appeal of a list of services and another one to indicate the appeal of a list of functions that could be offered with the SMS.

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MAVAM | 3. Messaging services (Special topic)

3.1.5.1. Appeal according to the type of service Respondents were asked how appealing the following services would be for them.

A message service that would ensure immediate delivery of all messages. For example: If you sent a WhatsApp message to a friend but at that time your contact did not have access to internet, the messaging service would send a message VIA SMS, ensuring that your message is delivered immediately. A message service through which you may send ALL your messages to all your contacts, friends and family without worrying which means to use. Your message will be delivered regardless of the means that your contacts would rather use.

A message service through which you may reach everybody regardless of the means each of them is using at that time. For example: You are sending a message to three friends. Two of them are using WhatsApp and another one, SMS. The message will reach the three of them without your needing to shift from WhatsApp to SMS or vice versa.

A message service where you may receive all your messages regardless of the fact if you are using a Smartphone, computer or tablet. For example: A friend of yours sends a message from his/her mobile phone. Your Smartphone is off and you are using the computer at that moment. You will receive the message in your computer instantly.

An instant message service where you have a single history of all your conversations, regardless of the means used (Smartphone, tablet, notebook, desktop). For example: you and your friend are communicating via SMS or Facebook Messenger. You visualize all the messages in a single history.

To define the appeal of each of the functions, respondents were asked to assign a score from 1 to 5 according to how appealing they found them, 1 being not appealing at all and 5, extremely appealing.

6 Multiple comparisons were carried out through a free distribution method (i.e., free

Even if we can observe that a service which allows receiving all the messages regardless of the device being used is the one with the highest average score (4.04), the rest of the options are also around 4 points on average. From here we may conclude that a service unifying all these characteristics would be quite interesting6.

from assumptions about the distribution of these data).

The service that undoubtedly obtains the lowest score is the single message history (3.55).

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MAVAM | 3. Messaging services (Special topic)

Graph 3.11

New services appeal Sample: SMS and IM Users - 680 cases

3.1.5.2 Appeal of functions offered together with SMS To this aim, respondents were asked how appealing they would find the functions listed below if they were offered together with the SMS service. 1.

Presence: it shows whether your Smartphone is connected

2.

Message notice: an indication of when an SMS was delivered/opened

3.

Black List: blocking people who you do not wish to receive messages from

4.

White List: presetting the people that you wish to receive SMS from

5.

Automatic answer: Similar to the e-mail out of office function

6.

Automatic subject: Similar to the e-mail automatic subject

7.

A copy of the messages: all your SMS messages are sent (as a copy) to your e-mail

8.

Collect SMS: when the addressee is the one who pays for the SMS if, for example, the SMS issuer had no prepaid credit

9.

Prepaid SMS: for when you want to give courtesy credit, a text message for the person to be able to answer your message without paying for it

10. Forward messages: when you ask for an SMS to be sent to a tablet or notebook that you preset

To define the interest in each function, respondents were asked to assign a score from 1 to 5 according to how interesting the function was, 1 being not interesting at all and 5, extremely interesting.

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MAVAM | 3. Messaging services (Special topic)

Graph 3.12

Additional functions appeal

In general, all functions were well qualified (average of 3.79 over a maximum of 5). The message notification function is among the ones that were scored the best, with a score of 4 in most cases. This is consistent with the SMS barriers that also posted high percentages both in Smartphone users and Feature Phones users. Other functions that proved to be really interesting as well were Black Listing, Prepaid SMS and Presence. The functions related to presence and delivery certainty are typical characteristics of instant messaging. This could be telling us that the “instantaneity� value proposal that instant messaging has imposed on users is being expanded to every service. Combining the Black Listing option -in order not to receive messages from certain contacts- to the possibility of White Listing, it can be said that there is some potential to develop a function that allow users to manage who are the people that they would like to interact with.

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MAVAM | 3. Messaging services (Special topic)

Graph 3.13

3.2. MMS

MMS use in the last three months

Sample: 821 cases

The 69% of respondents used the MMS service at least once during the last three months. This figure is affected as the MAVAM sample selected on this occasion has high Smartphone percentages. In the case of Feature Phones, only 28% of users used the MMS service in the last three months. This value may be closer to the users’ average in Mexico.

96% of those who use MMS and have a Smartphone expressed that during the last year they had increased the use of multimedia messaging. When asked about the reasons for these increases, most of the users (74%) identified reasons different from those stated on the list of suggested options.

Graph 3.14

Reasons for increasing MMS frequency of use

Sample: MMS Smartphone users who increased MMS use - 654 cases - Multiple choice

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MAVAM | 3. Messaging services (Special topic)

They were also asked about the situations when they use MMS; for which respondents indicated that the most frequent situation was "Special or funny moments" (37%).

Graph 3.15

MMS usage situations Sample: MMS Smartphone users 301 cases - Multiple choice

3.2.1. Barriers and motivations for MMS use The main barrier for MMS use is that the service is expensive (51%). The same barrier was identified in previous MAVAM editions. And the second one is the lack of certainty whether everybody may receive the message (48%).

Graph 3.16

MMS use barriers Sample: MMS Smartphone users Multiple choice

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MAVAM | 3. Messaging services (Special topic)

In concordance with the option mostly mentioned in the use barriers is the fact that 50% considered that a price reduction could motivate a higher use of MMS. The positive impact on the demand of a price reduction would not only imply a challenge to find the reduction value to attract the highest number of customers, but also it will relate to its relative value concerning other communication services. Additionally, as Smartphones expand, MMS may be substituted by the delivery of images through IM platforms. In second place (30%) is the motivation that the service will be part of the hired package.

Graph 3.17

Motivation to increase MMS use MMS Smartphone users - Multiple choice

3.3. Instant Messaging (IM) In this MAVAM edition, we asked about the use of instant messaging only among those who have a Smartphone, which, in the case of MAVAM's sample, represent 83% of the respondents. This percentage is higher than the one estimated for Mexico, where approximately 20% of mobile lines correspond to Smartphones. Therefore, Smartphone users' behavior represents those have a Smartphone but it may not be extrapolated to Mexico's total users. WhatsApp is the most frequently used application (84%), followed by Facebook Messenger (70%) and Twitter (43%). These three messaging applications differ from

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MAVAM | 3. Messaging services (Special topic)

one another: Facebook Messenger is a function within a social network, WhatsApp is an instant messaging application by definition and Twitter is a microblogging platform. This could indicate that chat applications respond to different communication needs or interaction preferences.

Graph 3.18

Instant Messaging (IM) use Sample: Smartphone users 684 cases - Multiple choice

The use of instant messaging decreases as users are of an older age, except for BBM users. Drops are bigger in the case of Facebook Messenger, where it has an 80% penetration among respondents under 24 years of age; while people over 45 only use it in a 48% of the

Graph 3.19

Use of Instant Messaging (IM) by age group Sample: Smartphone users 684 cases - Multiple choice

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MAVAM | 3. Messaging services (Special topic)

cases. In Twitter's case, the percentages are 52% and 27% per age group, respectively. The use of Blackberry Messenger (BBM) application is interesting, as penetration per age group has an inverse behavior, that it, it increases with age.

3.3.1 Behavior and Attitude The 98% of those who own a Smartphone use more than one application at the same time and for 84% of them, this simultaneous use is common. These values could be reasserting the idea that instant messaging platforms coexist. A 53% uses up to three messaging applications at the same time.

Graph 3.21

Attitude towards simultaneous use of Smartphone message applications Sample: Users of multiple Smartphone IM applications - 667 cases

Graph 3.20

Simultaneous use of Smartphone message applications Sample: Users of multiple Smartphone IM applications - 680 cases

3.3.2. Frequency of use Respondents were asked about the number of messages they send on average per day using the applications installed in their phones. We have observed that those who use WhatsApp send 42 messages a day on average while Facebook Messenger users said they send around 29 messages a day via this platform. Based on this information, we concluded that WhatsApp is the most frequently used application as well as the one more extensively used.

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MAVAM | 3. Messaging services (Special topic)

Graph 3.22

Average of messages sent per day via the three main IM applications in Mexico Sample: Users of multiple Smartphone IM applications - 667 cases

3.3.3. Contacts Graph 3.23

Average of contacts by IM application in Mexico Sample: Users of multiple Smartphone IM applications 937 cases

Respondents were asked to indicate how many contacts they communicated with via every application and we could observe that Facebook and WhatsApp are the most frequently used options to communicate with more contacts, with averages of almost 15 and 14 contacts respectively.

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MAVAM | 3. Messaging services (Special topic)

3.3.4. Difficulties in IM use Respondents were asked about which had been the situations that stopped them from using instant messaging applications. The option most frequently mentioned was "Because I don't have WiFi access" (51%), which indicates that there are Smartphone users who try to leave the mobile network as much as possible or who do not use the mobile network for data service. The second option was "Speed: Sometimes a message takes too long to arrive" (31%).

Graph 3.24

Reasons that hinder IM use Sample: Users of multiple Smartphone IM applications - 937 cases

Reason

%

Because I don't have WiFi access Speed: Sometimes a message takes too long to arrive Range: I can't get through to all the people via this service Because of the uncertainty that I will get an immediate answer

51% 31% 31% 29%

Because of the uncertainty that the person will read the message immediately

23%

Cost: The instant messaging application consumes much internet time in my mobile phone

22%

None of these reasons stops me from using instant messaging applications

20%

I don't like to use instant messages to deal with work or study matters

19%

Reliability: The service is not available sometimes or the message is not delivered.

17%

I don't rely on instant messaging services to send important messages.

16%

Because of the impossibility to send the same message to more than one person.

12%

Graph 3.25

3.3.5. IM Relevance

(Declared) Reaction in front of an eventual IM elimination

Respondents were asked how they would feel in front of an eventual elimination of the IM service: 76% considered that the lack of the service would be a nuisance; 50% considered that even with SMS, they would need the messaging service; and 26%, that they would feel at a lost.

Sample: Users of multiple Smartphone IM applications - 646 cases

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MAVAM | 3. Messaging services (Special topic)

3.4. SMS vs. Instant Messaging (IM) To understand the SMS and instant messaging services coexistence, the preferences of one over the other under different circumstances were analyzed.

3.4.1. Superiority Respondents were asked if any of the two services was superior to the other one in relation to reliability, delivery speed, cost/price and quality. Instant messaging is perceived as superior for all valued attributes.

Graph 3.26

SMS and IM service assessment Sample: IM and SMS Smartphone users - 680 cases

3.4.2. Service preference according to addressee To know how SMS and IM applications coexist, respondents were asked which service they would choose upon different situations. From the data presented in graph 3.27, we conclude that IM use is perceived as more appropriate to communicate in most cases. For work communications (37%) and communications between members of a couple (41%), both services are identical.

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MAVAM | 3. Messaging services (Special topic)

Graph 3.27

Selecting the most appropriate service for each occasion Sample: IM and SMS Smartphone users - 680 cases

3.4.3. Reasons Graph 3.28

Reasons for using IM instead of SMS Sample: IM and SMS Smartphone users -

Smartphone users were asked what the reasons were for which they would rather use IM instead of SMS. The two reasons most frequently mentioned were the cost (67%) and the possibility of sending files and images (52%).

646 cases

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MAVAM | 3. Messaging services (Special topic)

Also, the opposite question was made to be able to know when they preferred to use SMS instead of IM. What stood out in relation with this question was that SMS are more frequently used to communicate more important messages (36%) and, in second place, for work messages (34%). This could indicate a preference for SMS regarding formal communications

Graph 3.29

Reasons for using SMS instead of IM

Sample: IM and SMS Smartphone users - 614 cases

3.4.4. IM and SMS combinations .

/

%

3

Given that instant messaging and SMS coexist as communication options, it is interesting to ask about the SMS frequency of use against the highest penetration chat platforms (Facebook and WhatsApp).

3.4.4.1. Facebook + SMS Facebook Messenger has a more intense use than SMS. The average number of messages sent by this sample trough Facebook Messenger is 26 per day, while the average for SMS is 9 per day.

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MAVAM | 3. Messaging services (Special topic)

Graph 3.30

Average messages sent per day Facebook Messenger vs. SMS Sample: Smartphones using Facebook Messenger and SMS - 440 cases

3.4.4.2. WhatsApp + SMS 75% of the interviewed answered that they use WhatsApp simultaneously with SMS. Comparing the quantity of messages sent through WhatsApp and SMS, the messaging application is more intensely used. The average number of messages sent on a daily basis by this sample through WhattsApp is 38 per day, while for SMS is 8 per day. Graph 3.31

Average messages sent per day WhatsApp vs. SMS Sample: Smartphones using Facebook Messenger and SMS - 512 cases

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MAVAM | 3. Messaging services (Special topic)

3.5. Joyn Graph 3.32

Joyn awareness Sample: Total 825 cases

Joyn is an application driven by the GSM Association (GSMA), which combines voice communication, chat with one or multiple persons at the same time and also allows sharing videos, photos and files. This application enables contacting users who do not have the SMS or mail application. In general, it is a free-of-charge application with flat rate or prepaid plans within the territory of a certain country. World operators are cooperating in the initiative for the platform to have interoperability, that is, for it to "simply be on the phone and work". Movistar, Orange and Vodafone have already launched this service in some countries. Handset manufacturers7 are driving this platform and, in some models, it is already preloaded. It may also be downloaded for iPhone and Android platforms.

Grรกfico 3.33

Joyn awareness Sample: Total 825 cases

3.5.1. Awareness The 3% of the respondents stated having heard about Joyn. This figure seems to be a bit high as the service has not been launched in any country of the region yet.

3.5.2. Willingness All users were explained what Joyn consists in and then they were asked if they would use it or not. The willingness showed was of an intermediate level: 13% would use it, 11% would use it if it were included in the package and 20% would use it if it were free of charge. But 12% would not use it and 44% does not know what to answer. 7 Some Smartphone models by Huawei, HTC, LG Electronics, Motorola Mobility, Nokia, RIM, Samsung, Sony, and ZTE.

From these responses, it can be deduced that in order for users to adopt Joyn, it will be important to work on the attributes and differentials to convince the undecided and, among these, it is clear that the service should be free of charge or perceived as such.

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MAVAM | 4. Mobile Internet

4 Graph 4.1

Internet users through Smartphones Sample: Smartphones - 684 cases

Mobile Internet It is estimated that in the second quarter of 2013 there were some 15 million Mobile Internet users in Mexico. In the sample selected for MAVAM, survey made to Internet users, the ratio of Smartphones climbs to 83%. As explained in previous editions, in general, the profile of the respondent surveyed through Internet is more familiar with technology and has usually either more intensive uses of the services or more innovative devices. Given these characteristics, usage patterns are representative of Smartphone users and should not be construed as being extrapolated to the entire population of Mexico.

4.1 Use of the Internet through Smartphones The 95% of those who have a Smartphone accessed the Internet over the last three months. The 91% of those who have a Smartphone access the Internet daily. The highest frequency of use is several times a day (71%).

Graph 4.2

Internet access frequency through Smartphones Sample: Smartphones that used the Internet over the last 3 months - 651 cases

Between 2% that despite having a smartphone does not use Internet the main reason (14%) is that they do not find the need. Secondly, (14%) there is the fact that it would greatly increase their account amount.

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MAVAM | 4. Mobile Internet

Graph 4.3

Reasons not to access the Internet on the Smartphone Sample: Total 33 cases – Multiple choice

Graph 4.4

Amount of megabytes hired Sample: 432 cases

4.2. Plan Type The 53% of those having a Smartphone, hire a postpaid subscription plan and in most cases, they hire a 300-500 Mb plan. Then, there are those who acquire the unlimited data plan option (20%). An 18% do not know how many megabytes they hire, and 12% know that data is included in their plans but they do not know how many megabytes there are. In the 53% of cases, the limit of megabytes hired is not exceeded.

4.3. Internet uses on the Smartphone The three most frequently mentioned activities when using the Internet on the Smartphone are instant messaging (77%), access to social networks (76%) and e-mails consultation (73%). A second group includes maps consultation (69%), videos (65%) and news reading (52%).

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MAVAM | 4. Mobile Internet

Graph 4.5

Activities performed when using the Internet on the Smartphone Sample: 651 cases

4.4. Social Networks Among those users having a Smartphone and having accessed social networks over the mobile phone (77%), 98% has an active profile in Facebook; 66%, in Twitter; and 43%, in Google +.

Graph 4.6

Active profiles in social networks Sample: Smartphones with access to social networks - 499 cases

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MAVAM | 4. Mobile Internet

Facebook (79%) and Twitter (54%) have the highest ratio of daily usage frequency, although the latter has a much smaller sample of customers (66% have an active profile on Twitter vs. 98% on Facebook).

Graph 4.7

Access frequency to social networks Sample: It varies depending on the social network

Graph 4.8

Uses of Facebook

Facebook main activities are the relationship with friends through messaging (88%), photos and moments (86%), searching for people and relatives (68%), knowing people’s profile (60%), and scheduling meetings and parties (57%).

Sample: 490 cases

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MAVAM | 4. Mobile Internet

4.5. Mobile Banking The 29% of Smartphone users make queries or access banking information. The main activity is to make balance queries, which generates an average of 8 visits per month. The second activity is to make credit card balance queries, with an average of 6 visits per month.

Graph 4.9

Frequency of use of mobile banking services Sample: 188

Graph 4.10

Products search and shopping through the Smartphone Sample: 141 cases

4.6. Mobile Commerce The 44% of the people having Smartphones searched for products and services over the last three months, and 56% made a purchase. The main reasons cited for not making a purchase using the Smartphone was the preference to buy through the computer (81%) and secondly, that they preferred doing shopping at a store (34%). The top-five categories of products and services mentioned at the time of making searches to purchase are: cinema and shows tickets (44%), computers (34%), books (34%), games (33%), and clothing (30%). The main methods of payment mentioned when making the purchases through the Smartphone are credit card (58%) and PayPal (50%).

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MAVAM | 4. Mobile Internet

4.7. Maps and location The 69% of those having a Smartphone use the map services. The 70% consult the map for getting directions, and 31% mentioned that after consulting the map, they generally visit the site or store consulted and use the services offered by the site consulted. Graph 4.11

Activity performed after consulting maps Sample: 116 cases - Multiple Choice

4.8. Marketing and Mobile Advertising Respondents were asked how much they agreed with receiving relevant messages from operators and other mobile companies. In the case of Smarthpone users, there is certain agreement on receiving messages, while for Feature Phone users it is irrelevant. Regardless of the level of agreement to receive messages from operators and companies on the mobile phones, when asked about the preferred means of communication to receive messages on the mobile phone, 41% chose the SMS. In second place are those who chose instant messaging (23%). Graph 4.12

Prefered means to receive advertisements Sample: Total 825 cases

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MAVAM | 4. Mobile Internet

SMS was the preferred means for Feature Phone users as well as for Smartphone users. Note: On average, 44% pays some kind of attention to advertising messages. 7% always pays attention to them, and 14% answered that they do so most of the times. Search sites (78%) and video sites (55%) are the places mostly mentioned regarding advertising messages display.

Graph 4.13

Places mentioned where respondents say having seen an advertising message

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MAVAM | 5. Conclusions

5

Conclusions Currently, Value Added Services in Mexico represent 33% of mobile operators’ revenue. In the second quarter of the year, sales amounted to MEX$15.09 billion (USD 1.21 billion) and grew 13% in Mexican pesos (22% in USD) over the same period of 2012. SMS and MMS services were affected by the drop in interconnection rates and price reductions resulting from packaged products and pricing models with a large number of SMSs included as part of the bundle. Due to these changes, revenue remains flat at MEX$7.77 billion (USD 0.62 billion) in the second three months of 2013. Mobile Internet driven by the scope reached by Smartphones recorded sales amounting to MEX$4.80 billion (USD 0.38 billion) in the second quarter of 2013, and it now represents 32% of VAS revenue. Text messaging is used both by those who own feature phones and Smartphones, while among the latter, OTT chat services and Instant Messaging applications gain ground but SMS remains necessary to communicate with the 80-85% of people who do not have smart devices. Among those having feature phones, SMS continues being an indispensable communication option. Coexistence of services. The existence of OTT chat services and Instant Messaging platforms, although increasing the messaging traffic significantly, does not disqualify the use of SMS. Mobile users are leveraging both types of services to connect and communicate, with 98% of those having a Smartphone using more than one instant messaging application and consider this as normal (84%). This indicates that while chat applications are popular and usage is on the increase, they do not provide the full functionality needed to enable interoperability across all messaging services, as they as used in islands and communities, and users still have to full back to SMS. Today there is no single application, that meets all consumers messaging requirements across cost, rich features and service quality which works across any platform, any device at any time.

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MAVAM | 5. Conclusions

WhatsApp (84%) is the Instant Messaging application most widely used and the one with the highest number of messages sent on average (42 messages per day), as well as the service users use to communicate to the highest number of contacts through (15 contacts). Facebook Messenger is the second most used application (70%) with a preference among younger people. The use increases to 80% among those under 24 years. Relevance: For 53% of SMS users (all devices), not having the service would be a problem. 16% would feel lost and 36% believe that even having other alternatives available, but they still need SMS. In the case of Smartphone users, dependence on chat platforms is high. 76% said that a possible lack of the service would be a problem. 50% even stated, that while they still have SMS they would still want access to chat and instant messaging platforms, with 26% saying they would feel lost without them. Guarantee: Although in different proportions, Smartphone (48%) and feature phone users (29%) agree that one of the main difficulties found in SMS is not knowing whether the message was delivered. This represents an opportunity to think of new applications or services related to messaging. Delivery guarantee is an issue highly valued by the user. In the same way, from a list of 10 applications, the one most valued by users was a service which enabled notification of delivery receipt and SMS reading, when an SMS is sent. Opportunity: Among Smartphone users, there was a high interest for a unified service which would allow sending and receiving of messages no matter what device is being used, who the sender is, to ensure immediate delivery of messages regardless of the platform or device the recipient is using (multiplatform) and automatically identify how to get service received depending on the platform.

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MAVAM | 5. Conclusions

Enabled: Additional features users would value as complementary to SMS are black lists to block unwanted messages from particular contacts, and white lists to enable them. Joyn. In view of the possible launch of a service like Joyn (the GSMA’s RCS initiative) in Mexico, respondents showed a hypothetical acceptance of such a service, with 13% stating they would use it, 11% saying they would use it if it were included in their package, and 20% would only use it if it were free. Only 12% said would not use it and 44% said they did not know. From these responses, we concluded that in order for users to adopt Joyn, it will be important to work on attributes that would differentiate the service to convince the undecided, and for the service to be free or perceived as such.

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MAVAM | 6. Glossary

6

Glossary The description of the services presented in this report is presented in the following sections.

Messages The services in this category can be defined as: SMS (Short Message Services): sends short text messages. MMS (Multimedia Message Service): sends short text messages with image, photo, or video. E-mail: receives or sends emails via cell phone. Receiving or sending can be done manually, in other words by user’s initiative, or can be activated through the push mechanism, which periodically and automatically receives and sends mail. Instant Messages: service which permits access to instant messaging systems like MSN or Yahoo. Answering Machine or Voice Messaging: gives access to the automatic messages recording service offered by the carrier, in case of receiving calls that can’t be answered.

Entertainment The services in this category can be defined as: Music: service which provides the download of songs to be played in the cell phone. The handset must be able to play several music formats such as MP3, AAC, MP4, WAV, among others. Ringtone: service which provides the download of ringtones to be used in the handset. The cell phone must be able to play multiple formats of ringtones, such as MIDI, AAC, MP3, MP4, WAV, among others. Images: service which provides the download of images and photos to be displayed on the cell phone. The handset must be able to display several formats of pictures and images such as JPEG, GIF, among others. Games: service which provides the download of games to be played on the cell phone, individually, or through internet or Bluetooth connections, in groups. The cell phone must

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MAVAM | 6. Glossary

be able to run the games available in the device and also the downloaded ones, and additionally provide Bluetooth or data connectivity for internet access (eg.: EDGE, EVDO, or 3G). Video: service which provides the download of videos or video streaming to be played on cell phone. The handset must be able to play downloaded videos or received video streaming. The cell phone must be able to play videos in 3GP, MP4, WMV, AVI, among others. Open TV: This feature is present in some cell phones and permits user to watch free TV programs with the handset acting as an analogue or digital TV receptor and capturing contents through the same signals (frequencies) received by traditional TV’s at home.

Internet and Location The services in this category can be defined as: Internet Access: service which provides broadband access to the Internet via cell phone or modem. In both cases users must have a data plan contract with the mobile operator. This service has the following characteristics: Cell phone: the internet access from cell phone can be done in the following ways: 1. Using a browser to access the same websites accessed by fixed internet through a computer. Examples of browsers: the ones offered by the cell phone or smartphone (Internet Explorer Mobile, for Windows Mobile), or alternative browsers such as Skyfire or Opera. 2. Accessing the WAP websites inside the Carrier network through WAP browser. 3. Through specific programs installed in the handset (Widget, Web-App) provided by companies like Yahoo Mobile. Modem: devices which can be connected to desktop computers or notebooks. Provides Internet broadband connection using a computer browser (Internet Explorer, Firefox, and others). Social Networks: service which includes all the necessary elements to provide access to social networks such as Orkut, Twitter, Facebook, and others. This access can be done

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MAVAM | 6. Glossary

through browser and internet access, both present on cell phones, or through a specific application provided by mobile operators or other companies. Payments and Banking: usually offered by banks or other credit institutions, which allows the access to users accounts in these institutions. These services can range from simple balance consults to the payment of bills or conclusion of investment transactions. N

O E

S

Location Based Services: service which provides users’ geographic location. These services have the following characteristics: Location: can be provided as the following: 1. Through a process of triangulation using information from cell sites and application systems provided by the operator for this purpose; 2. Through the GPS installed in the cell phone. Offered Services: 1. Location: service usually offered by the mobile operator which allows informing the geographic location of a particular subscriber. Eg.: service hired by parents to monitor their children’s habits, or with the purpose of promoting safety. 2. Maps: service offered by other companies providing maps on cell phones, usually to locate addresses, and also permits to locate users in the map if their handsets have a built-in GPS. 3. Contextual Filter: permits the mobile operator, or other service providers, to offer addresses or other types of promotions at stores, restaurants, movies, among others, based on the instant location of users.

Mobile Marketing The services in this category can be defined as: Mobile Marketing: these services are implemented by mobile operators, to advertise the operator itself or other companies for the subscriber base. Usually these ads are sent via SMS. The advertisements can also be sent directly by competitor carriers or other companies, again using SMS messages. Mobile Advertising: similar to Mobile Marketing, Mobile Advertising is also an advertising service implemented by mobile operators or other companies. If the subscribers agree to receive it they can participate of promotions such as free minutes, free SMS packages, and others, as a reward for receiving advertisements.

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MAVAM | 7. Technical File

7

Technical File Scope

Mobile phone users

Technique Method Sample Market Survey date

CAWI (Computer-Assisted Web Interviewing) 12/15-minute survey 825 cases Mexico June 1-10 2013

Sex

Sample

Male Female

440 385

Age

53% 47%

Sample

18-24 years old 25-34 years old 35-44 years old 45 or more

81 246 342 156

Location

10% 30% 41% 19%

Sample

DF Center North BajĂ­o/West-Center Southeast Norwest/Pacific

468 116 98 60 50 33

SEL

57% 14% 12% 7% 6% 4%

Sample

AB C+ C C- / DE

303 263 168 91

Operator

37% 32% 20% 11%

Sample

Telcel Movistar Iusacell Unefon Nextel Otra

527 191 69 28 9 1

Plan Types

64% 23% 8% 3% 1% 0%

Sample

Prepaid (Rechargeable card) Pospaid (Monthly billed - without limit of use) Pospaid + control

461 226 138

56% 27% 17%

(A monthly bill, with limit of use.Once limit is reached, I can make a recharge and continue using it)

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MAVAM | 8. Team

8

Team

Fatima Raimondi | President, Acision Latin America Silviane Rodrigues | Market Development Director, Acision Latin America

Mariana Rodríguez Zani | Director Emilia Gibellini | Analyst Nadia Arno | Analyst Román Mergá | Analyst Leonardo Nocera, Bernabé Diaz | Design

Humberto Perissé | Director Izildinha Neumann | Commercial

Javier Carreto Mares | Owner Mario Juvera | Associate Yazmín Vera | Account Director

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