Telecoms and Online Gaming:Why and How!

http://www.gamepower7.com
Telecoms and Online Gaming:
Why and How!
Fadi Mujahid
30 November 2010

Online Gaming
 Massive-scale multiplayer games played
while connected to the Internet
 Gamers interact with each other
 Gaming
 Social Activities
 Trade, chat, fight, cooperate, work, etc.

Online Games Business
 364M User worldwide (2010)
 Over 20% of Internet Population
 Revenue of $13B (2011)
 In 2007
 Internet growth rate 9.4%
 Online Game player growth 16.5%
 Single-Player Games growth -3%
 In Vietnam for example
 2010: 11% of the entire population is Online
Game players (40% of the Internet population)

Telco’s &
 High rate of online gaming growth is associated
with partnerships between Telco's and online
game companies
 In China (news headlines)
 Alcatel partners with Chinese Online Game Supplier
(2004)
 Shanghai Telecom expands into online gaming business
(2004)
 Shanghai Telecom, THE9 (online gaming company) jointly
promote 3G services (2009)
 In Korea
 SK Telecom, through strategic alliances with game
developers, is one of the top game publishers in Korea

Telco’s &
 In China, during 2008, Online Gaming was
the direct result of
 $4.5B revenue for Telecom Industry
 $1.6B revenue for IT Industry
 Orange and GOA.com a success story
 Scores of success stories in other countries

WHY TELCO’S ARE
INVOLVED IN ONLINE
GAMES?

Right Combination
 Online games are leveraging on the Telco’s
mobile and broadband infrastructure
 Why not leverage on their own infrastructure?
 Some online games have higher ARPU than
telecom services
 Telco’s can benefit the most from e-
commerce and m-commerce booming
 Online Games and virtual worlds are the future
of m-commerce and e-commerce
 Telco’s are focusing more on VAS and
content as a revenue generator
 Online games provides rich content with high
interactivity

Right Customer Segments
 92% play at home
 Have broadband Internet access
 Have high-end PC
 Computer and Internet Savvy
 Over 50% age 16-25
 22% purchase online virtual goods at the
game
 Mobile Payment
 Credit Card Payment
 Pre-paid Card Payment

Billing & Payment
 Telco’s are already dealing with
customer billing and payment
services
 In S. Korea, Telco's offer online game
publishers an integrated billing and payment
services for 5% - 10% of the payment

Online Games Future Trends
 Merger of virtual worlds and online games
 IPTV through your virtual world
 Telecommunication through your virtual
world

GAME POWER 7 ONLINE
GAMES PORTAL
12

Game Power 7
Online Games Portal
 Founded 2007 as the first online games
company in the region
 Vision: Create a state-of-the-art online
game hub in the region
 Released the first Arabic MMORPG in the
region: Arabic Rappelz ‫الشعوب‬ ‫أمل‬
 Attracted more than 25 major game
developers to partner with to publish their
games in the region

Game Power 7
Online Games Portal
 Long experience in media localization for
the region
 Respect for cultural and religious concepts
 First Arabic Pipeline for online games
localization
 Translation and text rewriting for story and
dialogue
 Clothing modifications
 Modifications of controversial contents

Game Power 7
Online Games Portal
 Currently, 150k registered users
 4 MMO games
 Integrated Social network (similar to
facebook) for the gamers
 Huge content repository produced by
gamers themselves: videos, screenshots,
paintings, etc.
 Revenue Source
 In-game Virtual Goods
 In-game Ads

Game Power 7
Online Games Portal
1/2009
First
MMORPG
Arabic
Rappelz
8/2010
First
Casual
MMO
World of
Secrets
8/2010
First MMO
Sports
X-Kick
12/2010
Strategy
Flash MMO
Game
6/2011
Our
Second
MMORPG
Title

Telecoms and Online Gaming:Why and How!

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