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Development and distribution of applications in partnership with mts(russia)

  1. The development and distribution of applications in partnership with MTS
  2. 2 I. About MTS II. Foreign and domestic markets for applications III. Types of Appstores. Description of JIL & WAC IV. The steps toward partnership
  3. 3 Key facts of MTS 69.3 102.4 $9.8 Subscribers Number, mln Revenue USD, bln Summary, 2009  MTS is largest operator in Eastern Europe, positioned as one of the top-10 mobile operators in the world based on number of subscribers  The brand “MTS” is the most valuable brand in Russia, and is one of the world’s top-100 brand names  MTS is a member of JIL/WAC  Since 2000, MTS is traded on the NYSE  Since 2008, MTS has been an exclusive strategic partner of Vodafone Group Plc  In 2009 MTS entered India market  In 2009 MTS merged with Comstar-OTS, the largest operator of fixed telecommunication service in Russia and CIS * without India MTS is largest phone operator in Eastern Europe with subscriber base more than 102mln * 17.6 1.1 4.6 N/A 2.1 0.2 0.3 7.1 1.8 0.1 8.2
  4. 4 I. About MTS II. Foreign and domestic market of applications III. Types of app stores. Description of JIL & WAC IV. The steps toward partnership
  5. 5 Foreign developers Domestic developers World market Russia & CIS Market Current opportunities Potential opportunities The distribution of application via MTS will help developers to extend their market geography 1 2 • More than 2B subscribers • China • USA • India • Japan • Italy • Norway • UK • Spain • Greece • Austria • Germany • Portugal • Turkey • More than 102M subscribers • Russia • Ukraine • Belarus • Armenia • Uzbekistan • Turkmenistan
  6. 6 16,6 11,1 8,1 6,0 4,7 201220102009 +37% 2011 2013 It’s anticipated that in five years, applications will become the fastest growing segment of mobile market Source Frost and Sullivan, RBC capital market Growth of apps market in the world In Billions (USD) Main factors contributing to growing application consumption in the world Increasing number of smart- phones • Smart-phone users are the target consumers of apps • Smartphones share is expected to grow from 14,8% to 28,3% between 2009-13 New sales channels • The opening of new app stores will push the consumption among smart-phone users Growing number of applications • New apps, focused on specific interests of users and smart- phones with high performance According to experts (Gartner, Booz and Co & others.), the market for applications will grow more than 4 times by 2013 . 1
  7. 77 The mobile phone market will grow an average of 5%/yr from 2010 – 2014 mostly due to smartphones In 2010, more than 1,3bln mobile phones will be sold in the world, and 250mln of them will be smartphones By 2013, mobile will move ahead of PC’s as the most common way of accessing Internet In 2014, 3 out of 10 phones sold will be a smartphone * - By Frost & Sullivan Smartphones sales will be the only growing segment through 2014 0 200 400 600 800 1000 1200 1400 1600 2008 2009 2010 2011 2012 2013 2014 Smartphones Java phones Forecast of handsets sales in the world (mln) 1 12.5 14.8 19.8 24.3 27.2 28.3 31.4 Percentage of smartphones in world market12.5
  8. 8 The market of mobile apps in Russian is at early stage, but has a huge potential - More than 215MM users, - Penetration of mobile communication is148,5% - More than 10% users use smartphones, predicted level of penetration of smartphones in Russia by the end of 2011 will be more 20% - Usage of mobile internet: more than 22% Market volume - SPB Software House - More than 50 private developers(Shamrock, Herocraft, Paragon, Intervale) - Internet resources (Yandex, Rambler, VKontakte, Odnoklassniki, Major players Main goals Distribution channels - MNO portals and app stores - app stores: Apple, Android Market - Payment: 90% payments done via SMS billing 2 - Creating of efficient environment of collaboration with developers - Creating effective sales channels - Increase the popularity of applications among MTS The market for mobile applications in Russia and CIS countries has great potential, provided an effective monetization services, and construction of high-quality channels of sale applications.
  9. 9 Mobile games will grow 1.6 times by 2013, resulting in ~ $246MM USD 5% 25% Java apps Games 70% Application of other OSes 106 150 151 2009 +63% 2013 Forecast 246 22% 17% 61% The structure of selling games and apps US & EURussia • Undeveloped Russian market applications are associated with the following factors: – Low penetration of smartphones – Insufficient number of applications on the market – The lack of special app stores By 2014, the Russian market will be similar to the USA and EU, game and app sales will increase 63% • Assumptions for 2010-13 – Selling games – natural growth 8-10% year – Selling apps– quick growth ~21% partially due to removing obstacles preventing market development – Proportion of Java-app reduces as number of smart- phones grows Unlike the U.S. and EU, games and Java-based applications account for the majority of sales in Russia Russian market for games and applications MM USD Source: estimates of MTS 46 97 2
  10. 10 I. About MTS II. Foreign and domestic market III. Types of app stores. Description of JIL & WAC IV. The steps toward partnership
  11. 11 There are more than 40 app stores in the world, their development is supported by four major participants in mobile market • Support only their OS • Available only on proprietary phones • Available only for subscribers • Collaboration only with some providers OEM app stores Operator app storesPlatform app stores Independent participants Existent app stores All existing app stores have a number of significant restrictions including both the geography of sales and the monetization of applications • Goal: Pushing their OS to improve positioning in adjacent areas • Goal: Decrease monopolyzation application market by sole participant • Goal: Increase customer loyalty and reducing churn • Goal: Distribution of commercial applications
  12. 12 JIL (Joint Innovation Lab) is an exististing mobile apps development environment integrated into the Vodafone app store RUSSIA Development Technical capabilities Distribution JIL provides efficient tools for development and distribution  More than two millions devices in the world  Supports more than 70 device types  Support of TouchScreen, non Touch Screen, QWERTY keyboard, T9 keypad  Usage of Cross Up Sales and Recommendation Engine  Ability to sell applications in 14 countries  Integrated billing  Online statistics www.  Distribution through WEB / WAP interfaces  Specific SDK  Convenient environment of application downloading and sale statistics analysis www.  Specific system for testing applications
  13. 13 WAC – world-wide association, uniting mobile operators and phone manufacturers to establish uniform rules for the creation of mobile applications Goals of WAC WAC members • More than 24 cell phone operators • More than 2 users worldwide • Three phone manufacturers(Sony Ericsson, LG, Samsung) • Development of SDK based on JIL • Development of common schema for development and distribution on all phone operators • Consultation support • Forums and seminars for developers • Providing distribution of all operator members of WAC • Support of a development and distribution platform • Forming a convenient development environment • Forming common rules of development, monetization and distribution of apps App distribution WAC for developers Detailed descriptions
  14. 14 Integration of JIL and WAC will promote common global rules in application development for both operators and application developers Financial terms Administrative terms Logistics terms of distribution • Revenue share: 70% developer and 30% MTS • Developers may assign the price of their applications( 0 -500 RUR., including tax) • Payments to Russian developers will be deposited directly to the developers' bank account • App developers must sign a contract with Vodafone Sales and Services Ltd (VSSL), that will enable distribution in Russia (MTS) and other countries Vodaphone supports (and than in WAC) • Developer are expected to assign the target countries Terms of cooperation JIL & WAC with developers • The application will be tested by Vodafone within 14 days • Contract execution and online metrics for a developer is available on www.
  15. 15 I. About MTS II. Foreign and domestic market III. Types of app stores. Описание JIL & WAC IV. Steps toward partnership
  16. 16 Getting developers into JIL/WAC Increasing consumption Developing sales channels Key factors Building a friendly coop scheme with the application developers is a key strategy for MTS Main factor of success: Getting a high degree of penetration on mobile phones that support JIL / WAC applications Getting developers into JIL/WAC Состав WAC • Users billed directly from their account • Developing app stores with relevant content • Advertizing support for the MTS app store • Integrate app store inks from MTS- customized browsers(Opera Mini) • Pre-installation of app store application onto every proprietary MTS phones(15% of market in Russia by 2011) • The use of incentives and price advertising campaigns • Support of various Operating Systems • Development of open information system at www. • Consultation support • app store advertising support Increasing consumption Developing sales channels Detailed description
  17. 17 The Application Store will be a strategic product for MTS and will be distributed via all possible sales channels MTS Application Store MTS branded phones Other channels Customized version of Opera Mini Interactive Cell Broadcast  Major sales channels : – Installation of quick access in mobile browser (Opera Mini) – Pre-installation of app store application on brand name phones from MTS • Active ad company via SMS, MMS, ICB for smart-phone users of MTS MTS has a significant amount of channels it can use for selling selling applications Sales Channels WEB Portal WAP portals of MTS Sales Channels
  18. 18 Developers must fulfill the following requirements to distribute their apps via the MTS App Store: Step 1. • Please visit www. to review all documentation (available starting 01.01.11) • Contact the MTS representative and discuss the opportunity to sell your applications through the MTS app store • Provide a description of your application, screenshots and proposed price point Step 2. • Complete the agreement form at developer. vodafone. com with VSSL (Vodafone Sales and Services Limited) • Upload your Android apps to developer. • Your apps will be automatically tested by an internal Vodafone system and published to the MTS app store. Step 3. • After testing, your apps will be published on the MTS app store • Metrics are available at developer.vodafone. com • Payments for your apps will be deposited in any currency (USD, EURO, RUR) Sign Contract Publishing apps Selling apps * - before 15.12.2010 only Android apps supported Uploading Symbian и Java apps will be available from 01.02.2011
  19. 19 The following links provide additional information:  www.  MTS Partner Developer site (in progress)  http://  Android Platform  http://  Widget developers Blog
  20. 20 Thank You! Contacts: Roman Savvin– Project Director e-mail: Mob: +7 916 056 80 30 Polina Miloshevskaya– Project Manager e-mail: Mob: +7 916 051 16 91

Notes de l'éditeur

  1. Represents over 3 Billion users