MOUNTAIN VIEW, USA: Smartphone penetration in the US mobile markets is increasing rapidly. For some time, mobile operators have been offering a branded 'catalog' of mobile content and services that could be purchased from the handset itself.
However, all that is changing for smartphones, in which newer types of targeted app stores are being introduced to enable the device owner to purchase content from outside the operator environment. The availability of a large number of inexpensive or free mobile applications that leverage the next-generation technical capabilities of the target device will help drive adoption.
However, in the end, service differentiation and generating suitable return on investment from the app store business could be challenging.
New analysis from Frost & Sullivan: An Insight into the US Smartphone Application Storefront Market, finds that smartphone downloads from all app stores will reach 6.67 billion in 2014. The market segments covered in this research include prepaid and postpaid mobile, SMS and MMS, mobile Internet, iPhone, Android, Windows Mobile, Palm, and Symbian.
"Next-generation devices are being introduced at a rapid pace, and stakeholders are offering app stores to facilitate downloads of compelling applications from multiple categories, serving a wide range of communication, entertainment, information, and personalization requirements of the mobile user," says Frost & Sullivan Industry Analyst Vikrant Gandhi.
"For example, Apple, Google, Nokia, Palm and Microsoft have either already introduced app stores or are in various stages of app store rollouts and are working to ensure that the entire service experience is compelling for the end user or device owner."
A vast majority of applications are available 'free of cost' to the end user, significantly driving adoption in the US smartphone app store market. These applications leverage advanced device capabilities such as touch screen, accelerometers, full Web browsing, and location-based services, among others, to deliver a truly compelling proposition.
The most significant challenge is to ensure service differentiation and optimal management of the scale of the app store business. App store providers should always be open to support new business models to drive the introduction of innovative services and content types. Having a clear value proposition is also important for mobile operators.
"Unless the app store providers establish exclusivity agreements with application developers -- something that is not feasible for a large majority of applications -- it will be difficult to provide enough differentiation through the app stores," notes Gandhi.
"The best example of how this could be done is Apple's app store, in which the entire experience of service purchase and consumption -- including device characteristics, form factor and the operating environment -- was a radical shift at the time of its introduction."
This does not mean that services could not be differentiated at all. The moot point then is the extent to which providers are willing to invest in their infrastructure to offer new service to their customers, which then ties back into something that is still being examined -- identifying the main purpose of launching the app stores and if app stores alone are strong enough reasons to purchase a particular type of device.
A single participant cannot provide all the services in the mobile content industry. App store providers need to work with multiple application providers and offer them sufficient incentives for their app store initiatives.
Services of independent, third-party app store providers such as Handango, Handmark, and PocketGear can also be used to run an app store business profitably with adequate service differentiation.
"For instance, outsourcing or white-labeling of the app store business might become a good idea in the long run since a device vendor or an operating system provider may not want to commit large resources to manage the smartphone app store business," concludes Gandhi.
Showing posts with label Frost. Show all posts
Showing posts with label Frost. Show all posts
Thursday, August 13, 2009
Friday, July 3, 2009
Converged services a natural play for telcos
SINGAPORE: Converged services have become one of the marketing strategies employed by service providers today to grow revenues and subscriber base, and reduce customer churn.
"Bundling two or more services such as fixed voice, broadband, mobile and pay TV into attractive price plans has proven to result in less customer churn than single-service offerings," says Frost & Sullivan senior industry analyst Kamlesh Kalwar. He cites Hong Kong's PCCW which has managed to keep churn rate below one percent since introducing its converged services.
Kalwar further reckons that single-service telco offerings may soon be a thing of the past as tomorrow's consumers are likely to demand fully converged services from a single provider as a result of changing lifestyles and technology convergence.
New analysis from Frost & Sullivan, Asia-Pacific Converged Services Market Potential, reveals that approximately 20.8 percent of households across 14 Asia-Pacific countries subscribed to dual-, triple- and quadruple-play (quad-play) services in 2008 for total bundled billings of $58.7 billion. By 2014, residential bundled-service revenues are expected to hit $88.3 billion.
Dual-play services, typically fixed-line and broadband, are the most commonly contracted bundles at present, with 10.8 percent of residential users.
Triple-play services (fixed-line, broadband and TV) however are likely to see greater adoption in the longer term to account for 11.4 percent of residential subscribers in 2014; while dual-play subscriptions drop to 10.2 percent household penetration and quad-play (fixed-line, TV, broadband and wireless) expected to grow nearly two-fold to 4.9 percent.
Kalwar argues that three forms of convergence are driving the delivery of bundled or multiple services to a single user - convergence of networks, content and devices.
Network convergence: Thanks to IP (Internet protocol), existing networks are capable of delivering a multitude of services -- such as a broadband network enabling applications like Internet, TV and VoIP -- with just an incremental upgrade to the core network. Operators are banking on this opportunity to up-sell their services and increase average revenue per user (ARPU) and customer stickiness.
Content and device convergence: The increased mobility of present-day consumers dictates the need for multiple access points to the same content. Similarly, the sophistication of devices available today supports consumers' expectations for ubiquitous access to such content.
Given this, Kalwar believes that converged services present obvious benefits to both service providers and users, "Converged services is expected to be a critical strategy for communication service providers in the mid- to long-term.
"Apart from meeting customers' demands with attractive price points while maintaining ARPU and retaining customers, telcos are also able to roll-out loyalty programs to reward subscribers and offer one-stop customer service centres and consolidated monthly billings for users," he adds.
Kalwar cautions however that pricing alone is just part of the battle. "Quality of service, timeliness of market entry and [type of] content will also make or break an operator's converged offerings. StarHub, for example, has virtually cornered the pay TV market in Singapore with its exclusive content rights and early introduction of services," he says, adding however that content and broadcast regulations vary country to country, of course.
"Bundling two or more services such as fixed voice, broadband, mobile and pay TV into attractive price plans has proven to result in less customer churn than single-service offerings," says Frost & Sullivan senior industry analyst Kamlesh Kalwar. He cites Hong Kong's PCCW which has managed to keep churn rate below one percent since introducing its converged services.
Kalwar further reckons that single-service telco offerings may soon be a thing of the past as tomorrow's consumers are likely to demand fully converged services from a single provider as a result of changing lifestyles and technology convergence.
New analysis from Frost & Sullivan, Asia-Pacific Converged Services Market Potential, reveals that approximately 20.8 percent of households across 14 Asia-Pacific countries subscribed to dual-, triple- and quadruple-play (quad-play) services in 2008 for total bundled billings of $58.7 billion. By 2014, residential bundled-service revenues are expected to hit $88.3 billion.
Dual-play services, typically fixed-line and broadband, are the most commonly contracted bundles at present, with 10.8 percent of residential users.
Triple-play services (fixed-line, broadband and TV) however are likely to see greater adoption in the longer term to account for 11.4 percent of residential subscribers in 2014; while dual-play subscriptions drop to 10.2 percent household penetration and quad-play (fixed-line, TV, broadband and wireless) expected to grow nearly two-fold to 4.9 percent.
Kalwar argues that three forms of convergence are driving the delivery of bundled or multiple services to a single user - convergence of networks, content and devices.
Network convergence: Thanks to IP (Internet protocol), existing networks are capable of delivering a multitude of services -- such as a broadband network enabling applications like Internet, TV and VoIP -- with just an incremental upgrade to the core network. Operators are banking on this opportunity to up-sell their services and increase average revenue per user (ARPU) and customer stickiness.
Content and device convergence: The increased mobility of present-day consumers dictates the need for multiple access points to the same content. Similarly, the sophistication of devices available today supports consumers' expectations for ubiquitous access to such content.
Given this, Kalwar believes that converged services present obvious benefits to both service providers and users, "Converged services is expected to be a critical strategy for communication service providers in the mid- to long-term.
"Apart from meeting customers' demands with attractive price points while maintaining ARPU and retaining customers, telcos are also able to roll-out loyalty programs to reward subscribers and offer one-stop customer service centres and consolidated monthly billings for users," he adds.
Kalwar cautions however that pricing alone is just part of the battle. "Quality of service, timeliness of market entry and [type of] content will also make or break an operator's converged offerings. StarHub, for example, has virtually cornered the pay TV market in Singapore with its exclusive content rights and early introduction of services," he says, adding however that content and broadcast regulations vary country to country, of course.
Friday, June 12, 2009
Apac network security market remains resilient: Frost
MALAYSIA: The Asia-Pacific network security market is likely to grow by 6.5 percent in 2009, dropping nearly two-thirds from the robust growth in 2008.
Last year was perhaps too soon for the Asia-Pac region to feel the full brunt of the financial meltdown, the final quarter however -- typically the strongest quarter -- was a tell-tale of what to expect in 2009, growing a dismal 1.5 percent over Q3-2008.
According to Frost & Sullivan industry manager Arun Chandrasekaran, however, despite the weak sentiments and businesses exercising caution in spending, the commitment to network security investments remains strong. “Most companies recognise that the risks of not implementing adequate IT security far outweigh the cost of investing in it,” he says.
"Amidst pressure to control CAPEX (capital expenditure) and stretch every dollar, companies are more likely to deploy the more affordable converged security solutions," Chandrasekaran adds. "Adoption of managed security services is also expected to rise as companies try to minimise outright purchases."
New analysis from Frost & Sullivan Asia-Pacific Network Security Market, finds that the market -- covering 14 Asia-Pacific countries -- was worth an estimated $1.81 billion in 2008, growing 17.9 percent from the year before. A modest CAGR of 7.5 percent is expected from 2009 to 2015, to gross revenues of just over $3 billion by end-2015.
The growth in 2008 continued to come from the epicentres of emerging markets like China, India, as well as ASEAN countries like Vietnam and Indonesia, all registering year-on-year growth rates of above 20 percent.
Firewall and IPSec VPN solutions continued to be the dominant choice, accounting for the bulk of revenues last year at 74.6 percent ($1.34 billion). This trend is likely to continue through to 2015.
The SMB segment contributed slightly more than one-third to the total revenues in 2008. Chandrasekaran expects this percentage to rise over the next few years. "More and more SMBs are beginning to install at least first-layer perimeter defence on their corporate networks as converged or integrated security appliances have made
network security affordable for smaller businesses." By 2015, SMBs will
account for approximately 45 percent of the revenues.
Despite being one of the hardest hit, the BFSI (banking, financial services and insurance) sector remains the leading adopter of network security solutions at 20.8 percent ($377 million) of revenues in 2008, followed closely by service providers and the government sector at 18.4 percent ($333 million) each.
Chandrasekaran believes that the banking sector will continue to be the biggest spender on network security moving forward, mainly due to rising regulatory compliance. Moreover, he says, "Following the loss of public confidence in the banking system after the financial debacle of September 2008, the last thing any CIO would want is a security breach to further dent the confidence of existing and potential customers."
Last year was perhaps too soon for the Asia-Pac region to feel the full brunt of the financial meltdown, the final quarter however -- typically the strongest quarter -- was a tell-tale of what to expect in 2009, growing a dismal 1.5 percent over Q3-2008.
According to Frost & Sullivan industry manager Arun Chandrasekaran, however, despite the weak sentiments and businesses exercising caution in spending, the commitment to network security investments remains strong. “Most companies recognise that the risks of not implementing adequate IT security far outweigh the cost of investing in it,” he says.
"Amidst pressure to control CAPEX (capital expenditure) and stretch every dollar, companies are more likely to deploy the more affordable converged security solutions," Chandrasekaran adds. "Adoption of managed security services is also expected to rise as companies try to minimise outright purchases."
New analysis from Frost & Sullivan Asia-Pacific Network Security Market, finds that the market -- covering 14 Asia-Pacific countries -- was worth an estimated $1.81 billion in 2008, growing 17.9 percent from the year before. A modest CAGR of 7.5 percent is expected from 2009 to 2015, to gross revenues of just over $3 billion by end-2015.
The growth in 2008 continued to come from the epicentres of emerging markets like China, India, as well as ASEAN countries like Vietnam and Indonesia, all registering year-on-year growth rates of above 20 percent.
Firewall and IPSec VPN solutions continued to be the dominant choice, accounting for the bulk of revenues last year at 74.6 percent ($1.34 billion). This trend is likely to continue through to 2015.
The SMB segment contributed slightly more than one-third to the total revenues in 2008. Chandrasekaran expects this percentage to rise over the next few years. "More and more SMBs are beginning to install at least first-layer perimeter defence on their corporate networks as converged or integrated security appliances have made
network security affordable for smaller businesses." By 2015, SMBs will
account for approximately 45 percent of the revenues.
Despite being one of the hardest hit, the BFSI (banking, financial services and insurance) sector remains the leading adopter of network security solutions at 20.8 percent ($377 million) of revenues in 2008, followed closely by service providers and the government sector at 18.4 percent ($333 million) each.
Chandrasekaran believes that the banking sector will continue to be the biggest spender on network security moving forward, mainly due to rising regulatory compliance. Moreover, he says, "Following the loss of public confidence in the banking system after the financial debacle of September 2008, the last thing any CIO would want is a security breach to further dent the confidence of existing and potential customers."
Tuesday, May 26, 2009
Frost on MTN and Bharti Airtel Round 2
SOUTH AFRICA: MTN announced that it is exploring a potential transaction with Indian telecommunications giant Bharti Airtel. The proposed deal would see MTN acquiring 25 percent of Bharti, and Bharti acquiring effectively 49 percent of MTN’s share capital.
This is the second time that MTN and Bharti have entered into discussions. There were attempts to come to some sort of agreement last year, but the proposed transaction fell through, apparently due to disagreements about what each partner wanted to achieve.
“I think the important thing is that this time there is a clear definition of what MTN and Bharti are looking for,” says Frost & Sullivan senior ICT industry analyst Lindsey McDonald. “Last time, Bharti wanted to buy MTN, then MTN turned around and wanted to buy Bharti. What eventually led to the breakdown was that the management of MTN didn’t want to give up their ability to steer the company in the direction they think best.”
The transaction proposed today however seems to offer clearer benefits to both participants.
“It’s a partnership,” McDonald explains. “Basically what will happen is that both companies will get exposure to new revenues from areas they are not already in, without having to go there and establish new operations themselves.”
She says that, given the current economic climate, it would be difficult for MTN to launch its own operations in an entirely new market.
“MTN is trying to increase its exposure to new revenue streams without taking the risk of having to start operations in a new market,” she says. “It’s always difficult to go into a new country, install new infrastructure and come to grips with a new group of customers and a new culture. But the economic conditions are such that going into a new market now would be even more risky.”
MTN has already given a hint of its new approach this year through its partnership with Neotel.
“The company has made it clear that it is looking to ensure it maintains margins by taking an approach to the market that is more cautious than the MTN we might have known a few years ago,” McDonald says.
She believes that the two operators need to concentrate on what they have in common. Bharti is the market leader in India and MTN is a market leader in Africa.
“The good thing about this is that this partnership would see the two companies cooperating with each other,” she adds. “As there is no overlap in footprint, their operations would be complimentary.”
This is the second time that MTN and Bharti have entered into discussions. There were attempts to come to some sort of agreement last year, but the proposed transaction fell through, apparently due to disagreements about what each partner wanted to achieve.
“I think the important thing is that this time there is a clear definition of what MTN and Bharti are looking for,” says Frost & Sullivan senior ICT industry analyst Lindsey McDonald. “Last time, Bharti wanted to buy MTN, then MTN turned around and wanted to buy Bharti. What eventually led to the breakdown was that the management of MTN didn’t want to give up their ability to steer the company in the direction they think best.”
The transaction proposed today however seems to offer clearer benefits to both participants.
“It’s a partnership,” McDonald explains. “Basically what will happen is that both companies will get exposure to new revenues from areas they are not already in, without having to go there and establish new operations themselves.”
She says that, given the current economic climate, it would be difficult for MTN to launch its own operations in an entirely new market.
“MTN is trying to increase its exposure to new revenue streams without taking the risk of having to start operations in a new market,” she says. “It’s always difficult to go into a new country, install new infrastructure and come to grips with a new group of customers and a new culture. But the economic conditions are such that going into a new market now would be even more risky.”
MTN has already given a hint of its new approach this year through its partnership with Neotel.
“The company has made it clear that it is looking to ensure it maintains margins by taking an approach to the market that is more cautious than the MTN we might have known a few years ago,” McDonald says.
She believes that the two operators need to concentrate on what they have in common. Bharti is the market leader in India and MTN is a market leader in Africa.
“The good thing about this is that this partnership would see the two companies cooperating with each other,” she adds. “As there is no overlap in footprint, their operations would be complimentary.”
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