Comms MEA

DECEMBER 2009

Critical analysis for telecommunications executives

Qualcomm

Jay Srage, Qualcomm

Special Supplement

WIRELESS WORLD How thhe latest generation of wiireless technology is set too drivve innovation across all ssecttors

Emerging markets, Emerging opportunities.

3G is enabling many people to make their first phone calls and access the Internet for the first time.

Qualcomm is driving the evolution of 3G, ensuring the wireless ecosystem has a continually evolving roadmap that offers value today and well into tomorrow.

Together with our partners, we’re bringing exciting and affordable devices to life that deliver the best voice services and mobile broadband experiences to people everywhere.

Advanced wireless technology creates meaningful opportunities — for everyone.

Learn more at www.qualcommMEA.com

CONTENTS 1

THIS CommsMEA | December 2009 www.itp.net

2

Jay Srage reveals the benefits of partnering with Qualcomm.

2

INTERVIEW

4

An increasing array of connected mobile devices can mean more revenue for operators.

4

Trusted partner Jay Srage, Vice President of Business Development for Middle East, North Africa and Central Asia, explains why telecom operators are increasingly turning to partners such as Qualcomm to innovate.

Beyond the mobile phone New types of connected devices are coming to market, promising greater functionality for consumers and new revenue opportunities for many sectors of the wireless industry.

FOCUS

8 Health care solutions A new generation of innovative wireless services can save lives and money, with mobile technology enabling a variety of connected solutions.

PROFILE

11

8

Mobile connectivity can help those in the health care sector to save lives.

FEATURE

Social networks From Facebook to YouTube, momentum is continuing to gather around social networks and operators can get involved via third party applications.

www.itp.net November 2007 | CommsMEA

2

INTERVIEW JAY SRAGE

TRUSTED PARTNER Jay Srage, Vice President of Business Development for Middle East, North Africa and Central Asia Qualcomm International, explains why telecom operators are increasingly turning to partners such as Qualcomm to innovate.

COMMSMEA: WHAT TRENDS ARE YOU SEEING IN THE MENA REGION IN THE TELECOMS SPACE?

Jay Srage: The economic tension of the past couple years appears to be relaxing somewhat.

Mobile operators are continuing to make strategic investments in their networks and service strategies, although not with the same aggressiveness and or in the same areas they did in earlier years. The most significant development in the industry right now has been an accelerated trend towards the commoditisation of services.

In several countries, competition has escalated into huge price wars. This has created pressure among mobile operators to maintain market share, which has which led to a decline in voice and data revenues.

In markets like Saudi Arabia and Egypt, there has been significant price erosion on the voice minutes and data package costs, as well as with hardware like data dongles, USB dongles and different devices being offered as part of these data packages.

In the wake of this commoditisation, many operators that have sustained their market share are now asking where they go from

CommsMEA | December 2009 www.itp.net

here. In other words, how do they gain back the big value-based propositions rather than commodity-based propositions? They are realizing that offering innovative services – not just connectivity – is important to creating customer loyalty and maintaining healthy profit margins.

Mobile operators are also focusing on new technologies – not necessarily the deployment of new technologies but the upgrade of existing networks. We have seen a lot of announcements around HSPA+, which extends the life of HSPA and the life of 3G, and there is significant market interest in LTE. It is also important to look at coverage.

There are certain countries like the UAE that have significant coverage but there are certain places that are not covered. If you look at Saudi Arabia and Egypt, the operators are focusing on quality of service and getting the right coverage and capacity for their markets.

I would say across industry there is convergence with a trend towards commerce and mobile banking applications with operators starting to invest and evaluate new technologies to be deployed in better times.

COMMSMEA: WHAT IS QUALCOMM DOING FOR OPERATORS IN THE REGION?

What Qualcomm is doing goes specifically into the core of providing value to the operators, allowing them to sustain their market share or grow it.

Differentiation is important because right now you have competitive markets and you have operators that have engaged in price wars across the board.

Qualcomm is helping operators to move from price-oriented value propositions to services-oriented value propositions, and differentiation is key to this market strategy.

Differentiation can happen on three different fronts.

The first front is around innovations in new services such as media, social networking applications, corporate services and vertically integrated applications like tele-health or teleeducation.

There is a significant business opportunity in providing corporate services. The key to develop is a solid business plan, one that goes beyond just by providing a bundle of minutes or a bundle of data but actually providing applications that support and target specific

JAY SRAGE

INTERVIEW 3

“Qualcomm is helping operators to move from priceoriented value propositions to services-oriented value propositions, and differentiation is key to this market strategy.” industries with those applications. Qualcomm offers an array of resources to support operators in launching these types of services.

The other area that we are involved in is differentiation through devices. Mobile operators are now looking at the device as a differentiating tool because it is the mechanism that will deliver these services.

It started with the iPhone and Blackberry where the value proposition is very well known, but there are many devices on the market.

Increasingly, mobile operators are looking at their product portfolio to stand out in the market. We work with them on building a value proposition that includes devices so they can compete and differentiate themselves from other operators on the device side.

One trend we are seeing is the emergence of data packaged phase device bundles, where customers get a sim card and device with a free month of service, and then a data package discounted over the next three months. We want to move this to the next level and include a portal – an “app store” – where consumers can buy applications. We want to take it to the next level by giving operators the capability to offer their customers media content purchasing, application purchasing through app stores, and integration with social networking applications.

TECHNOLOGY TRANSFER

The third area of differentiation, which is more at a governmental level, is technology transfer. Today, most technology used by mobile operators in MENA is imported from

outside the region. Qualcomm is working with companies and local governments to establish an ecosystem where these services and applications can actually be developed by operators in-house, which will enable them to localise services and make them more pertinent to MENA customers.

It’s a change in mindset. Operators, developers, governments and others have to start thinking that they are no longer simple implementers of technology, but are creators of ideas and when you close the loop, the whole ecosystem starts to happen and you get the technology transfer environment in the region.

The operators will benefit from this because you cannot import all these applications from outside. When you have an app store, you need the applications to be locally flavoured, and the same principle applies to content.

COMMSMEA: DO THE CHALLENGES FACED

BY ME OPERATORS DIFFER FROM THOSE IN WEST?

Yes, because they are at different stages of evolution. If you look at the operators in Japan, they were the first to evolve 2G to 3G, and they went through the growing pains of moving from voice to data, analogue to digital, and from data connection to services.

Soon after, Europe and the US followed Japan down this path, then the Middle East.

If you look at the landscape today it is starting to converge, so Japan is where the US is today. Both Verizon and DoCoMo announced that they will launch LTE in 2010. Some operators in Europe are now

looking at extending the life of 3G and putting LTE on hold so each region is trying to steer towards its own market dynamics and its own environment.

Middle East operators made large investments in their 3G networks and expanded very quickly. They deployed networks covering most of their populations with 3G and now they are looking at new ways to maximize their ROI in the investments.

Now is a good time for operators to take a step back, consolidate, integrate, and build new strategies to bring value to the customers.

QUALCOMM IN MENA “Qualcomm’s role is to be a trusted advisor, to its partners. Our mission is different from that of a consultant – Qualcomm supports operators regardless of the technology path they choose.”

“Qualcomm not only develops many types of mobile technologies itself, but also works with an entire ecosystem of device manufacturers, developers, publishers, content providers and others to offer unique solutions. We provide operators with an array of different options and let them decide what makes most sense to deploy,” says Jay Srage.

“Qualcomm envisions a world in which all consumer electronics are connected.

Consumers should be able to connect any device to any network and at any time, so if you are using your camcorder, you should be able to shoot a video, then upload it straight on to your favorite social networking website or on to DVD player to record it.”

www.itp.net December 2009 | CommsMEA

4

TECHNOLOGY QUALCOMM

BEYOND THE MOBILE PHONE

New types of connected devices are coming to market, promising greater functionality for consumers and new revenue opportunities for the wireless industry.

L

ooking ki far f beyond b d th the ttraditional diti l mobile phone, technology innovators throughout the wireless industry have long understood that using wireless for voice communications was only the beginning of a bold new world of possibilities.

As the industry grows and evolves, the vision of ubiquitous connectivity is giving way to an even broader view of a digital utopia. People have their choice of a limitless variety of ever smarter, always on, and “always with you” devices, where the benefits of multiple functions like entertainment, banking, navigation and personal computing are converging into one handy device. New devices coming to market promise to deliver affordable— and truly instant—access to people, information, personal resources and digital media, anywhere in the world.

The smartphone device category has proven to be a real game changer.

Accounting for approximately 13.5%

CommsMEA | December 2009 www.itp.net

off ttoday’s handset d ’ mobile bil h d t market k t as off March 2009 (per Gartner Research), the smartphone is defined as a mobile device that offers advanced capabilities like full Internet browsing.

This is a pivotal capability according to the experts who study the future of the Internet. A recent study conducted by the Pew Internet & American Life Project predicts that, “by 2020, the mobile phone—now with significant computing power—will be the primary Internet connection and the only one for a majority of the people across the world.”

The smartphone is now being quickly embraced by the public, making a strong contribution to handset sales and spurring steady growth in data revenues. The widespread proliferation of powerful and reliable 3G broadband data networks has been a key driver, and device manufacturers recognize the value of bringing Internet-capable mobile devices to market.

One example is Research in Motion (RIM), maker of the popular Blackberry® family of smartphones. The company reported shipping its 50-millionth device since 1999, of which 26 million, or nearly half of these devices, were shipped within RIM’s last fiscal year, which ended in February 2009. Blackberry smartphone shipments contributed to an astounding 84% year-over-year growth rate for the company, up from around $6 billion in fiscal year 2008, to around $11 billion in fiscal year 2009.

According to Gartner Research director, Robert Cozza, Samsung, HTC and Apple also saw their volumes and market share increase last year. Cozza attributes the success of these companies to their ability to offer compelling device experiences and touch interfaces. He further predicts that in 2009, mobile platforms will be a major battleground as the associated user experience grows in importance.

Momentum around smartphones

QUALCOMM

continues to increase despite the difficult global economy, earning this device category high praise for helping the wireless industry maintain stability and growth through tough times.

Recent breakthroughs in 3G enabling technologies are not just taking user experiences to new heights. They are also inspiring whole new categories of connected devices and paving the way for new types of wireless business models, like the highly publicized Kindle e-reader device from Amazon. Another recent example is the Zeebo gaming platform, a 3G wireless home entertainment and gaming system that aims to bring affordable 3D games to middle-class consumers, particularly in emerging markets.

Not surprisingly, computer manufacturers are quickly taking advantage of this exciting trend of adding wireless to previously “unconnected” devices. Some of the most highly recognized brands in the industry are quickly breaking into this new market segment. Eighteen notebook manufacturers have launched 3G embedded broadband solutions that are currently being sold by more than 30 operators around the world.

Contributing to this momentum, Qualcomm has introduced its global mobile Internet solution, known as Gobi™, which enables any type of device to achieve ubiquitous, seamless and location-based 3G connectivity to the Internet. This embedded, single-chip multimode solution is currently available in 47 notebook models offered by nine manufacturers. 3G mobile broadband connectivity solutions eliminate the need to plug into a local area network (LAN) or find a Wi-Fi “hot spot.” As a result, 3G is generating great interest in the business community, which is rapidly shifting to notebooks as the computer of choice for its workers.

A recent study by Forrester Research found that notebooks now represent almost 40% of all corporate PCs, up from 22% just three years ago. A recent survey published

by In-Stat found that 44% of notebook PC users express frustration with coverage when using Wi-Fi compared with just 15% using a cellular broadband service.

Companies that provide their workers with 3G-enabled notebooks that offer wireless wide-area network (WWAN) connectivity stand to benefit from increased employee satisfaction. In addition, the use of wireless notebooks can be a useful tool in improving customer service and in expanding revenue opportunities.

Providing reliable and seamless connectivity to users, whether at home or in the enterprise, is critical to the success of today’s wirelessly connected notebooks.

ENABLING SMARTER DEVICES

To complement this segment, Qualcomm and its partners are developing solutions to address the growing global demand for affordable computing with always– on access to the Internet. The new Snapdragon™ platform, available from Qualcomm, is an example.

Featuring the first processor for mobile devices that breaks the 1GHz speed barrier, Snapdragon’s capabilities are in many respects more comparable to those associated with a computer than with a traditional mobile handset. In addition to its processing power advantage, the Snapdragon platform delivers 3G broadband connectivity and ultra low power consumption.

With the commercial availability of Snapdragon, two new categories of wireless devices are emerging: “smarter” smartphones and “smartbooks.” A logical next step along the smartphone continuum, next-generation smartphones are significantly more functional and powerful. Toshiba recently revealed the first advanced smartphone powered

by Snapdragon, and some 15 other companies, including Samsung and LG, have committed to developing new wireless products enabled by this breakthrough technology that delivers a unique and dramatically enhanced user experience.

TECHNOLOGY 5

The smartbook category is another logical step on the mobile continuum, taking the user experience in the world of mobile computing to a whole new level. Moving away from traditional mobile computing device categories based on weight and screen size, the smartbook combines the benefits of multimode connectivity, mobile computing power, integrated GPS functionality, extended battery life, personalization features and more.

Devices in the smartbook category represent the first truly mobile computing device, delivering a smartphone experience via a larger, high-resolution touch screen.

Smartbooks will provide consumers with a sub-compact, ultra-thin, portable mobile device featuring built-in “always on” 3G connectivity, all day battery life and an easy-to-use custom interface.

Designed primarily for content consumption, communicating and multimedia on the go, smartbooks will also be optimized for content creation and highly personalized everyday computing.

This category represents the first practical example of truly converged devices Smartbooks will likely be viewed as supplemental devices used by consumers who are willing to carry multiple devices.

Smartbooks also have great potential in emerging markets such as India and China, where smartphones and netbooks are becoming more prevalent. According to Gartner, netbooks earned the distinction as the fastest-growing segment of the personal computer market last year with sales of 11.7 million units.

Seeing continuing momentum, ABI Research forecasts sales of 35 million netbooks this year. This bodes well for the new smartbook category. Research firm Solis forecasts that by 2013, 72 percent of netbooks will have built-in 3G Internet connectivity. Given the excitement over the Apple iPhone’s user experience, the idea of delivering a similarly engaging and highly personalized user experience on a larger display device is an exciting prospect, both for consumers and for the wireless industry.

www.itp.net December 2009 | CommsMEA

freedom to go be.

The world is your hotspot.™ A laptop with Gobi™ technology inside gives you the freedom to connect to the Internet through the widest selection of 3G cellular networks.1

Do more...

Connect virtually anytime, anywhere2

in more places...

The widest selection of global carriers

and pay less.

Control unpredictable connection charges

Find your laptop at www.GobiMEA.com 1 Requires separate third-party cellular service subscription.

2 Subject to specific notebook manufacturer and/or network operator terms and conditions.

Nothing in these materials is an offer to sell any of the components or devices referenced herein. Certain components for use in the U.S. are available only through licensed suppliers. Some components are not available for use in the U.S. © 2009 QUALCOMM Incorporated. All rights reserved. QUALCOMM is a registered trademark of QUALCOMM Incorporated. Gobi and “The world is your hotspot” are trademarks of QUALCOMM Incorporated.

8

FOCUS HEALTHCARE

WIRELESS SOLUTIONS

FOR HEALTHCARE A new generation of innovative wireless services can save lives and money

T

he cost of healthcare continues to rise globally. In the U.S. alone, Americans are projected to spend more than $2.5 trillion on healthcare this year, the equivalent of $8,160 per U.S. resident. While the numbers may not be as dramatic in other parts of the world, the importance of bringing healthcare costs under control is an issue of universal importance.

Fortunately, this trend has provided yet another opportunity for the 3G wireless ecosystem to demonstrate the value of mobile connectivity. Mobile technology already enables a variety of connected healthcare solutions. Applied creatively, the 3G platform has tremendous potential to help streamline and relieve some of the strain on the healthcare system, reducing costs and ultimately improving healthcare on a global scale.

GETTING TO THE HEART, WITH WIRELESS

Including healthcare services, medications and lost productivity, heart disease in the U.S. is projected to cost more than $304.6 billion in 2009. The 3G wireless ecosystem has taken several bold steps aimed at reducing this alarming statistic. One of the earliest and most successful uses of wireless technologies to date for patients with heart conditions is CardioNet, a remote

CommsMEA | December 2009 www.itp.net

monitoring and diagnostics solution.

Using a 3G mobile broadband network, CardioNet devices wirelessly transmit patients’ ECG (electrocardiogram) data to the CardioNet Monitoring Center, providing physicians with succinct, timely monitoring information for diagnosis and therapy management.

The CardioNet solution has been credited with discovering significant undetected cardiac problems in 41% of patients who had previously been unsuccessfully monitored by other methods. So far, this solution has been used to securely diagnose over 200,000 patients in the U.S. Another exciting wireless technology breakthrough for heart patients is the recent implant of the world’s first wireless pacemaker. After suffering from a serious heart condition for more than 20 years, this summer, a woman in New York received a wireless pacemaker that communicates with a remote monitoring service, alerting her and her doctor if there is an issue that could compromise her health.

Not only does the wireless pacemaker keep the patient alive, it improves the quality of care by allowing nearly all of the routine check-up work to be completed before the patient visits the doctor’s office.

This gives the doctor more time to focus

on the patient rather than ordering and administering tests. While this pacemaker operates over a local area network, it provides proof of concept for extending future evolutions into wide area network deployments, like CardioNet. HEALTH SOLUTIONS

Wireless healthcare is not limited to specialized devices like pacemakers or those used with CardioNet. In fact, innovative companies are now using the very popular and effective “applications store” business model to deliver healthcare solutions directly to 3G mobile phones. For example, Verizon offers The Pill Phone in the U.S. via its applications store. The Pill Phone is an easy-to-use application that reminds people when to take their medications.

The Pill Phone also provides visual/ audible prompts, tracks/stores pill-taking records, shows what most pills look like, confirms that the dose was taken and displays potential side effects.

Bones in Motion (BiM) Active addresses another aspect of healthcare − physical fitness. Available in the US at both Verizon and Sprint applications stores, BiM Active tracks and records runners’ and cyclists’ workouts via GPS. BiM Active monitors the information that is important to these

HEALTHCARE

types of athletes such as distance traveled, speed, caloric burn, route, elevation, weather and degree of difficulty.

BiM Active also allows users to upload their personal data to a central server wirelessly in order to track fitness progress or share routes and other info with fellow enthusiasts.

The proven performance and impressive potential of wireless health solutions like CardioNet, The Pill Phone and BiM Active inspired Gary and Mary West – two successful entrepreneurs – to establish the West Wireless Health Institute (WWHI) in San Diego. Its mission: to advance health and well-being around the world by identifying, validating and accelerating the use of innovative and cost-effective wireless solutions to address critical, unmet medical and community needs.

WWHI is one of the world’s first medical research organizations dedicated to advancing health and well-being through the use of wide-area wireless technologies, as well as PAN and BAN (personal-and body-area networks, respectively).

The institute enables inventors, medical device makers and others to plan, nurture and refine their ideas for wireless health solutions. Dr. Eric J. Topol, chief medical officer of West Wireless Health Institute and director of the Scripps Translational Science Institute, says, “The rapid and remarkable progress in wireless sensors – continuously tracking important parameters such as blood sugar, blood pressure, all vital signs, sleep state and even caloric intake and expenditure – has the potential to change medicine in a radical and unprecedented way. Not only does this fit the optimal models of individualized and consumer-driven healthcare, but there also is tremendous potential to upgrade quality of care, reduce the cost burden and shift away from reactive to preventive medicine.”

Dr. Topol cites a 2008 study that was distributed by a coalition of companies and organizations that support healthcare reform. The study estimated that if the U.S. adopted remote monitoring for sufferers of congestive heart failure,

diabetes and chronic obstructive pulmonary disease, a savings of $21.1 billion could be realized.

INNOVATIONS TO COME

The possibilities and potential of wireless technology for enhanced healthcare are boundless. Evidence of this can be seen in the many directions in which wireless healthcare is branching out, from remote diagnostic services to personalized medicine to personal health performance.

What’s coming in the future? Scientists are developing “smart” disposable bandages that use non-invasive sensors to monitor vital body parameters and movements on a continual basis, and then transmit that data from the body via wireless networks, like 3G and Bluetooth™, to a hospital or doctor anywhere in the world. These bandages can monitor heart rhythm, respiratory rate, blood pressure, temperature, sleep cycles, calories taken in and expended, pollen count, air quality, activity level and other factors.

Another exciting development is pills equipped with micro-sensors that can be safely ingested and that release extremely precise dosages when activated wirelessly.

According to an article recently published

by The Wall Street Journal, Andrew M. Thompson, co-founder and CEO of Proteous Biomedical – a company testing digestible wireless chips that can be attached to pills – says that the chips’ circuitry is safely digestible and, in highvolume production, will add less than a cent to the cost of a pill. He expects the technology to arrive in the U.S. around 2012. Bold, new ideas like digestible wireless chips and smart bandages equipped with vital wireless sensors are poised to transform the healthcare system, saving costs, time, resources and most importantly, lives.

The private sector – namely the wireless ecosystem and some visionary medical partners – are making significant progress toward modernizing our healthcare system with wireless technologies that are revolutionizing the way we live. And the story is just beginning.

FOCUS 9

EMERGING MARKETS

Many of the advanced wireless healthcare solutions discussed in this story may eventually be used worldwide. However, healthcare services leveraging the power of wireless have already begun making a positive impact in many emerging regions.

In Peru, at the Kausay Wasi Health Clinic, where doctors fly in from the United States to volunteer their time and serve residents who would otherwise have no access to health care, the harsh mountainous terrain makes wired connections unreliable.

With the help of FACES Foundation, Capitol City Medical Teams and Qualcomm, through its Wireless Reach™ initiative, the clinic now has connectivity, wireless-enabled laptops, cell phones and related IT equipment. These improvements enable clinic and visiting physicians to communicate with colleagues and medical specialists from around the world in real time.

In Kenya, an estimated 392,000 adults with HIV need anti-retroviral therapy (ART). ART is not a cure, but it helps patients with HIV fight off infectious diseases, thus improving and potentially prolonging their lives. However, for the treatment to be effective, a 95 percent rate of adherence must be achieved, meaning that it’s critical for ART sites to be properly stocked with anti-retroviral medicines (ARVs). To ensure this, Telkom Kenya, Qualcomm and other organizations have collaborated to equip participating ART sites with computers, software and support equipment for wireless connectivity over Telkom Kenya’s EV-DO Rev. A advanced wireless broadband network.

Medicine inventory reports, which were previously completed by hand and delivered by mail, now reach the Kenya Medical Supplies Agency (KEMSA) electronically via a 3G mobile broadband network, providing a more timely inventory of ARVs in the medical offices.

Technology, including 3G, provides a simple, practical solution to a real healthcare problem.

www.itp.net December 2009 | CommsMEA

Annie’s mobile phone helped her arrive to her interview 15 minutes early.

For more than 720 million people worldwide, 3G wireless has become an essential part of their lives. From the humble cellphone to the mighty smartphone, the power of wireless is now extending into exciting new “connected” devices that are changing the way we live, work and play.

Technology made personal.

Qualcomm scientists and engineers pioneered the technology at the heart of today’s most advanced wireless devices and services.

Connecting you to the Internet, anytime and virtually anywhere.

Putting crystal clear mobile TV in the palm of your hand. Making mobile banking possible—and much more. We’re helping people find their way, find a friend, find an answer, even monitor a heartbeat.

And we’ve only just begun. Every day. A little more. A little better.

Something new. Something that matters. Technology for life.

We are wireless futurists.

To learn more, visit www.qualcomm.com

Tim rests easier knowing his grandmother’s heart is being Tim rests easier knowing his monitored by CardioNet™. grandmother’s heart is being monitored by CardioNet™

Maria wirelessly sent her fiancé a picture of her dream wedding cake.

SOCIAL NETWORKING

FEATURE 11

SOCIAL NETWORKS Momentum is building around social networking services. Don’t get left behind!

F

rom Facebook to YouTube to other popular sites on the Web, social media has become an important part of our social fabric. The data speeds provided by 3G technologies, such as EV-DO Rev. A and Rev. B, HSPA and HSPA+, have accelerated the transition of social media from the PC to the mobile device. In 2008, there were approximately 92.5 million people worldwide accessing social networks via their mobile phones.

In 2013, that number is forecasted to grow to 698.1 million.

The mobile environment is more than simply a way for social networks to extend their Internet strategies. It offers many personalized features that are not generally available on a PC-based device, like touchscreens, GPS, mobile video recorders and megapixel cameras, to name a few.

“The mobile phone’s convenience,

built-in cameras and location awareness will make the mobile phone the dominant media creation device of the future,” states an August 2009 report by Forrester Research entitled How Mobile Handsets Will Deliver 24x7 Social Computing.

REVENUE STREAM

What does the rapid growth of social networks mean to the wireless industry?

Revenue and more revenue! According to Informa, revenue from mobile social networking services reached approximately $1.1 billion in 2008 and is predicted to grow to $4.5 billion in 2013.

The forecasts describe an industry with an extremely high potential for continued growth. The 2008-2013 CAGR (compound annual growth rate) of mobile social networking revenues is expected to exceed 30%, outpacing even well established

services, such as text chat rooms, which are still growing at a rate of over 25% per year.

With the popularity of social networks being accessed by mobile phones anywhere at any time, comes much higher data usage. According to VentureBeat.com, the following four social networks are among the top 10 most visited mobile Internet sites: Facebook, Bebo, MySpace, and YouTube.

In April 2009, Facebook Mobile had 30 million members across all networks – a 200% annual growth rate from the year prior. And in April 2008, MySpace Mobile received 1.4 billion page impressions in the U.S. alone.

VentureBeat.com also reported that in only seven months, North American CDMA2000 operator Sprint accounted for one million subscribers to their MySpace Mobile site. In the mobile social

www.itp.net December 2009 | CommsMEA

12

FEATURE SOCIAL NETWORKING

“Wireless network operators can offer third-party social networking services as part of their own branded portal and simply share the revenues from the subscription fees with the third-party provider.” networking arena, wireless operator revenues are typically generated from SMS/MMS usage.

On the origination side, consumers create messages via their mobile handsets every time they update their profiles, make comments or leave messages for other users. Message termination activities are increased as well, primarily when SMS alerts are sent to community members to inform them of a change in status of their friends/contacts or to provide them with results of a search query.

WIRELESS OPPORTUNITIES

Wireless operator-branded and managed social networking services can be very lucrative. There are a number of approaches that operators can use to capitalize on the social media phenomenon.

For example, they can bundle the cost of a mobile social networking service into their postpaid tariff or offer the service a-lacarte as an add-on to a monthly mobile phone bill.

For prepaid customers, the access fee is either debited to their account on a daily or monthly basis or is prorated. Adding to the value proposition, the operator also has the flexibility to control the social network content and operations.

Wireless network operators can offer third-party social networking services as part of their own branded portal and simply share the revenues from the subscription fees with the third-party provider. The upside for operators is that they don’t have to manage the user

CommsMEA | December 2009 www.itp.net

interface and content of the service.

Another benefit is that the third-party social networking service provider may promote its own service without requiring the operator to contribute to the marketing budget. According to Informa, in the U.S. and Western Europe, the revenue split is typically 50/50 to the social networking service provider. In Japan and in selected Asia Pacific markets, the social networking service’s revenue share can be significantly higher.

With the popularity of social networks, some networking services are bypassing the Internet altogether and jumping directly to mobile. MocoSpace, a social network for chatting, blogging, and video/ photo uploading, is designed specifically for use on mobile devices. It is an off-deck mobile site, meaning it is not featured on any specific wireless operator’s portal, but rather as a stand-alone mobile Web site that can be visited using any phone with mobile broadband access.

VentureBeat.com reports that MocoSpace is the largest mobile social network in the U.S., with well over six million registered users and more than one billion monthly page views. To a wireless network operator, this translates into massive amounts of data usage and increased user-dependency on the mobile phone.

EMERGING TRENDS

Emerging regions around the world are also taking part in the social media craze.

BuzzCity, another mobile social network

service platform popular in markets such as India, Indonesia, Kenya, Bangladesh and Libya, operates using an ad-supported model as its primary source of revenue.

In April 2008, this exceptionally “sticky” site reached 2.5 million users and acquired billions of ad banners.

China’s number one Internet site happens to be a mobile social network called QQ.com. An interactive blogging, gaming and chatting site, it charges users for virtual goods such as avatar clothing and blog décor. According to QQ.com, 67 percent of the site’s revenue comes from these virtual goods. Today, it has over 200 million bloggers, over 300 million IM users and over 60 million photo uploads per day.

SOCIAL NETWORKS JUST KEEP GROWING According to Informa, today more than 300 million registered users are engaging in some type of social network and over 140 million are accessing those sites via their mobile devices, nearly all telecommunications industry players can participate in the growth and success of mobile social networking. Business strategists throughout the wireless industry would do well to incorporate mobile social networking into their business planning. The business case is strong and growing. Social networking services help to differentiate your offerings, create new customers and increase revenues.

Redefining Mobility for the Way You Live Life is in constant motion. The technology you depend on day in, day out should be seamless, versatile, intuitive and powerful.

Qualcomm CDMA Technologies is the world’s largest fabless semiconductor producer and leading provider of wireless chipset and software technology.

Leveraging our legacy of wireless innovation, we develop solutions that keep mobile phones, computing devices, smartbooks and consumer electronics in step with your anytime, anywhere lifestyle. Our solutions not only help you, they help enable mobile device manufacturers to create a greater variety of devices that deliver the features, functionality and enhanced user experience you need for the way you live.

Watch for Qualcomm to continually redefine mobility.

www.cdmaMEA.com ©2009 Qualcomm Incorporated. All rights reserved.

Qualcomm is a registered trademark of Qualcomm Incorporated.

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Copyright © 2009 QUALCOMM Incorporated. All rights reserved. QUALCOMM and PLAZA are registered trademarks of QUALCOMM Incorporated in the United States and may be registered in other countries. Next Generation Mobility For All. is a trademark of QUALCOMM Incorporated. Other product and brand names may be trademarks or registered trademarks of their respective owners.