If Mobile Telecoms products or services is your business, where should you be looking ?

1. If Mobile Telecom products or
services is your business, where
should you be looking ?

2. Overview
Ever since its inception, the surprising growth of the worldwide mobile market—both in terms
of subscriber numbers and the scale at which new and interesting services are being
World Wide Subscribers
introduced and taken up—has repeatedly surpassed expert estimates.
By end-2008, there were nearly 3.9 billion mobile subscribers worldwide and it is expected
that in 2013 this number will reach close to 6 billion.
Figure 1: Worldwide Subscriber Base (In Million, 2006 – 2013F)
6000
Worldwide Subscriber Base (In Million, 2006 – 2013F)
5,492.7
5,800.1 By end-2008, there were
5,148.1
5000
4,766.5 nearly 3.9 billion mobile
Subscriber Base (In
4,344.8
3,892.6 subscribers worldwide and it is
4000 3,334.3 expected that in 2013 this
Million)
2,725.2
3000 number will reach close to 6
2000 billion.
1000
0
2006 2007 2008 2009F 2010F 2011F 2012F 2013F
Year
Source: Portio Research Ltd.
F – Forecasted
In the initial years, the growth of wireless services was primarily restricted to the developed markets
of The worldwide mobile market with grown rapidly in theadoptedwireless market expanded its 3.9 billion by attracting
has last five years. Declining handset By end-2008, there were
Europe and North America. As prices fell, the by telecom regulators
prices and voice tariffs, along favourable policies nearly
reach mobile
new subscribers in the developing significant increase in America, Africa and Middle East, and Asia Pacific.
worldwide, have acted as factors driving a regions of Latin the subscriber base. subscribers worldwide and it is
expected that in 2013 this
!
Keythe initialmarketsthe Europe of wirelessAmerica. was primarily restricted to the Brazil have also pickedtoup pace.
In
Latin American marketsNorth services
developed
years,
of
growth
and
such as Argentina, Venezuela and number will reach close 6
billion.
! Conversely, the wireless market expanded its reach by attracting new subscribers in
As prices fell, many advanced European markets have almost reached saturation and growth in
these markets is gradually tapering off. Middle East, and Asia Pacific.
the developing regions of Latin America, Africa and
! Today, the Asia Pacific region is growing the fastest in terms of the number of mobile
Atsubscribers.of 2008, American markets —such as Argentina, stood at and Brazil— percent.
the end Key Latin worldwide mobile penetration Venezuela nearly 57
Today, the Asiaup pace. region is growing the fastest in terms of the number of mobile subscribers.
have also picked Pacific
! Conversely, many advanced European markets have almost reached saturation and
growth in these markets is gradually tapering off.
! At the end of 2008, worldwide mobile penetration stood at nearly 57 percent.

3. ASIA’s Contribution
Mobile Factbook – June 2009
Asia Pacific will continue to be the largest contributor to the worldwide mobile subscriber
base till 2013. Currently, China and India are leading in terms of subscriber growth, and Currently, China and India are
these two burgeoning markets have helped the Asia Pacific region to gain the title of ‘World leading in terms of subscriber
Mobile Factbook – June 2009
Mobile Leader’. In 2008, subscribers of the Asia Pacific region formed nearly 44 percent of growth, and these two
Mobile Factbook – June 2009 the worldwide subscriber base. burgeoning markets have
Asia Pacific will continue to be the largest contributor to the worldwide mobile subscriber
helped the Asia Pacific region
base till 2013. Currently, China and India are leading in terms of subscriber growth, and Currently, China and India are
these two burgeoning markets have helped the Asia Pacific region to gain the title of ‘World to gain the title of ‘World
Table 1: Regional Mobile Subscribers (In Million, 2006 – 2013F) Figure 3: Worldwide Subscriber Base – Regional Contribution (2008)1 leading in terms of subscriber
Mobile Leader’. In 2008, subscribers of the Asia Pacific region formed nearly 44 percent of Mobile Leader’.
growth, and these two
the worldwide subscriber base. burgeoning markets have
helped the Asia Pacific region
Mobile Subscribers (In Million) 43.9% to gain the title of ‘World
Figure 3: Worldwide Subscriber Base – Regional Contribution (2008)1
7.6% Mobile Leader’.
Region Worldwide Subscriber Base – Regional Contribution (2008)
2006 2007 2008 2009F 2010F 2011F 2012F 2013F
43.9%
7.6% 11.2%
Europe 823.0 912.1 974.4 1,009.5 1,034.5 1,054.6 1,070.7 1,083.7 25.0%
12.2%
11.2%
Europe Asia Pacific North America Latin America Africa and Middle East
Asia Pacific 1,070.7 1,381.8 1,709.4 1,987.8 2,249.6 2,487.6 2,701.5 2,890.7 12.2%
25.0%
Source: Portio Research Ltd.
251.9 276.5 296.9 315.6 332.6 347.9 361.6 373.8 With operators mobilising to explore and capture potential markets in the developing East
Europe Asia Pacific North America Latin America Africa and Middle
North America nations, it is expected that Asia Pacific will house nearly 50 percent of the worldwide mobile
subscriber base by end-2013. Source: Portio Research Ltd.
Latin America 304.1 374.2 436.0 487.4 536.7 581.9 623.0 659.9 With operators mobilising to explore andRegional potential markets in the developing
capture Contribution (2013F)
Figure 4: Worldwide Subscriber Base –
nations, it is expected that Asia Pacific will house nearly 50 percent of the worldwide mobile
subscriber Worldwide Subscriber Base – Regional Contribution (2013F)
base by end-2013.
Africa and 275.5 389.5 475.8 544.5 613.0 676.0 735.8 792.0 49.8% 6.4%
Figure 4: Worldwide Subscriber Base – Regional Contribution (2013F)
Middle East
2,725.2 3,334.3 3,892.5 4,344.8 4,766.4 5,148 5,492.6 5,800.1 49.8% 6.4% 11.4%
Total
13.7%
18.7%
Source: Portio Research Ltd.
Regional Mobile Subscribers (In Million, 2006 – 2013F)
11.4%
Figure 2 below is a graphical representation of Table 1 above. Europe Asia Pacific North America Latin America Africa and Middle East
13.7%
18.7%
Source: Portio Research Ltd.
Figure 2: Regional Subscriber Base (In Million, 2006 – 2013F) F – Forecasted
Europe Asia Pacific North America Latin America Africa and Middle East
Asia Pacific will continue to be the largest contributor to the worldwide mobile subscriber base till Source: Portio Research Ltd.
2013. Currently, China and India are leading in terms of subscriber growth, and these two burgeoning
3000 F – Forecasted
Mobile Subscribers (In Million)
markets have helped the Asia Pacific region to gain the title of ‘World Mobile Leader’. In 2008,
2500
1
NOTE: The figures may not add up to 100 percent because of rounding-off errors.
subscribers of the Asia Pacific region formed nearly 44 percent of the worldwide subscriber base.
2000
8 © 2009, Portio Research. All Rights Reserved
1500 1
NOTE: The figures may not add up to 100 percent because of rounding-off errors.
With operators mobilizing to explore and capture potential markets in the developing nations, it is
1000
expected that Asia Pacific will house nearly 50 percent of the worldwide mobile subscriber base by
500
8 © 2009, Portio Research. All Rights Reserved
end-2013.
0
2006 2007 2008 2009F 2010F 2011F 2012F 2013F
Year
Europe Asia Pacific North America Latin America Africa and Middle East

4. SMS and MMS
Mobile Messaging Mobile Factbook – June 2009
6
Table 8: Regional SMS Traffic (In Billion, 2006 – 2013F)
SMS Traffic (In Billion)
Region 2006 2007 2008 2009F 2010F 2011F 2012F 2013F Asia totally dominates, this is
inescapable. Over the next five years
Europe 329.0 425.0 465.0 537.6 598.8 657.1 735.7 791.1 and beyond, Asia will account for half the
world’s mobile subscribers, half the
Asia Pacific 967.7 1,605.3 2,102.5 2,444.9 2,649.7 2,890.0 3,069.5 3200.1
handset sales, almost half the messaging
revenues, and well over half of all the
198.2 373.1 624.6 756.4 847.3 882.7 899.7 904.1
North America
messaging traffic. On a global scale, the
future of mobile messaging is an Asian
Latin America 116.9 152.4 191.0 250.2 286.4 317.9 337.3 350.1
story – what happens in Asia will define
Africa and
50.6 70.1 104.2 132.2 160.6 185.9 209.7 226.3
the future of mobile messaging.
Middle East
Regional SMS Traffic (In Billion, 2006 – 2013F) Source: Portio Research Ltd.
Table 9: Regional MMS Traffic (In Billion, 2006 – 2013F)
A few years ago it seemed as though everyone in the mobile industry was convinced SMS would be in decline by
now, and still SMS doesn’t get much glory from network operators, yet SMS is the mainstay of non-voice revenues
MMS Traffic (In Billion)
and will remain that way for many years to come. In full year 2008, SMS generated a staggering USD 89 billion in
worldwide revenues, and 2008 figure will grow to pass the USD 100 billion mark in 2010.
Region 2006 2007 that 2009F 2010F 2011F 2012F 2013F
While many believe 12.6 SMS prices may be in danger of commoditizing, they still have room to move and maintain
Europe 8.8 that 15.7 20.6 26.2 31.5 35.7 40.1
profitability, as SMS is still so fast growing and highly profitable. We wholly believe that SMS is at the heart of the
action Pacific mobile 28.9 41.8 - SMS is 64.5booming 83.3 100 billion market - and yet for most of the last few years
Asia in the 13.0 industry 53.0 a 75.2 USD 90.3
MNOS have shown little interest in the service. As SMS use worldwide doubles over the next few years, operators
need to work with vendors to deliver a broad array of innovative new SMS services.
4.0 6.8 13.2 17.1 20.5 24.1 27.4 29.1
North America
In the mature and highly developed markets of Europe and North America, SMS will likely evolve into SMS 2.0;
Latin America 1.6 1.8 2.3 3.1 4.2 5.5 6.4 6.8
SMS will probably find its way into enterprise applications; mobile e-mail may proliferate throughout the enterprise
space and grow in the consumer space; mobile IM may grow vigorously and messaging revenue should continue
Africa and
to grow East a steady clip. All this looks likely in mature markets, but the real story is always going to be in Asia,
Middle at
0.7 1.4 1.9 2.7 3.4 4.4 4.9 5.4
where hundreds of millions of new users will come online every year and use just one non- voice service – SMS.

5. Mobile Factbook – June 2009
Significance of Data
Figure 11: Value-Investment Mapping of Data Services
Bubble size correlates to
importance of usability
High “Star” Performer Promising Challenging While SMS is the unchallenged star
performer (low on investment, high on
Importance of Perceived Value
perceived value and moderate in need for
usability), services such as mobile
banking/payments and mobile TV are
challenging to develop because the need
for investment in these services is usually
quite high.
Low High
Need for investment
SMS MMS Email/IM Games
Full-track music Mobile Interent UGC TV
Banking/payments Caller Tones
Value-Investment Mapping of Data Services
Source: Portio Research Ltd.
While SMS is the unchallenged star performer (low on investment, high on perceived value
Operators need for usability), services such as mobile banking/payments and mobile
and moderate in worldwide are offering some form of data service or other and are constantly trying to fortify
their challenging to develop because the needThat said, these services is dangerous to foray into offering new data services
TV are data services portfolio. for investment in it may be usually
quite high.
without considering their feasibility. Different data services demand different degrees of resources and
Further recommended reading:
involvement from the operator – as is depicted above.
Strategies for Driving Data ARPU
WithIM, music downloads, mobilestrategies for voice services, report is loaded are looking for ways to increase non-voice
email,
increasing pressure on non-voice mobile services operators
Analyze best practice go-to-market
TV and much more. This long-awaited
including mobile
ARPU. Efforts have help you understand how to develop class-leading mobile
with valuable information that will been made by MNOs in both developed and emerging markets to find products
data services. Purchase this report now and you also receive our previous report on this
and services which can enable them to stem the decline in ARPU.
subject as a bonus, free!
The operators in developed markets have understand MNO high-speed networks to provide multimedia
Ranking the World’s Best Mobile Operators: New ways to measure and
performance, beyond revenues, subscribers and ARPU
leveraged
services; whereas in low-ARPU markets – understanding the constraints of the availability of high-end
This ground-breaking report delivers comparative analysis of the performance at 204 major
handsets –using ten all-new measurements. Exposing the limitations of using service offerings and are providing text-based data
MNOs worldwide MNOs have focused on innovating with
traditional key performance indicators to compare MNOs operating in radically differing
servicesmarket study creates a previously unavailable level-playing field to fairly judge
markets, this and ring-back tones.
and compare MNO performance and to truly identify the world’s ‘best’ MNOs. INCLUDES a
total of 33 MNO case studies outlining strategies used to succeed, and how to emulate them
– covering MNOs in all world regions. Essential reading for ALL in the mobile space and

6. 2008 2013F
Year
Mobile Factbook – June 2009
The following figure shows the contribution of various regions to worldwide mobile
entertainment revenue in 2008.
Mobile Entertainment
Source: Portio Research Ltd.
F – Forecasted Figure 16: Worldwide Mobile Entertainment Revenue – Regional Contribution (2008)
Mobile Factbook – June 2009
The following figure shows the contribution of various regions to worldwide mobile
Table 10: Mobile Entertainment Revenue – Regional (In USD Billion, 2006 – 2013F) entertainment revenue in 2008.
34.2%
Figure 16: Worldwide Mobile Entertainment Revenue – Regional Contribution (2008)
Mobile Entertainment Revenue (In USD Billion) 9 !
Worldwide Mobile Entertainment Revenue – Regional Contribution (2008)
16.9%
42.5% 34.2%
Region 2006 2007 2008 2009F 2010F 2011F 2012F 2013F 6.4%
Asia Pacific Europe North America Rest of the World
Europe 4.2 6.1 8.2 10.2 11.2 12.1 13.0 13.8 16.9%
42.5%
Source: Portio Research Ltd. In 2008, approximately 94
6.4%
percent of the worldwide
Asia Pacific 5.1 7.5 10.2 12.3 14.4 16.3 18.0 19.6 mobile entertainment revenue
The expected regional break-out is unlikely to change significantly in 2013, with Asia Pacific
came from three regions:
and Europe continuing to be theEurope revenue generators. However, the contribution of
Asia Pacific leading North America Rest of the World
Asia Pacific and Europe to the total pie is expected to decline. Europe, North America and
Asia Pacific.
2.0 3.1 4.0 5.0 6.0 7.0 8.0 8.9
North America Source: Portio Research Ltd. In 2008, approximately 94
Figure 17: Worldwide Mobile Entertainment Revenue – Regional Contribution (2013F)
percent of the worldwide
Rest of the mobile entertainment revenue
The expected regional break-out is unlikely to change significantlyContributionAsia Pacific
Worldwide Mobile Entertainment Revenue – Regional in 2013, with (2013F)
came from three regions:
World 0.6 1.0 1.5 2.0 2.4 3.1 3.9 4.8 and Europe continuing to be the leading revenue generators. However, the contribution of
29.3%
Asia Pacific and Europe to the total pie is expected to decline. Europe, North America and
Asia Pacific.
19.0%
Figure 17: Worldwide Mobile Entertainment Revenue – Regional Contribution (2013F)
Total 11.8 17.7 23.9 29.5 34.0 38.5 42.9 47.2
41.6% 29.3%
Source: Portio Research Ltd. 10.1%
Mobile Entertainment Revenue – Regional (In USD Billion, 2006 – 2013F)
19.0%
Asia Pacific Europe North America Rest of the World
9
NOTE: The mobile entertainment services revenue includes the total revenue generated by Mobile Music, Mobile 41.6% Source: Portio Research Ltd.
Games and Mobile Video & TV services.
F – Forecasted 10.1%
In 2008, mobile entertainment services (including mobile music, mobile games and mobile grown gradually in the advanced mobile
The use of mobilePacific
video and TV
Asia entertainment services has
Europe North America Rest of the World
services) generated revenues of nearly USD 24 billion worldwide. high speed networks and the availability of advanced handsets has made it possible for
markets of Europe, Asia Pacific and North America. Technological progress enabling
© 2009, Portio Research. All Rights Reserved 27
operators to provide subscribers with superior entertainment services.
Source: Portio Research Ltd.
FHowever, in other markets like Latin America, Africa and the Middle East (namely the
– Forecasted
Around 94 percent of the 2008 worldwide mobile entertainment revenue camethere remain three regions: Europe,
Rest of the World region) from issues which need to be addressed before these
North America and Asia Pacific. services can really take-off. The wireless markets in these regions are comparatively
The use of mobile entertainment services has grown gradually in the advanced mobile
markets of Europe, Asia Pacific and North America. Technological progress enabling
high speed networks and the availability of advanced handsets has made it possible for
operators to provide subscribers with superior entertainment services.
26 © 2009, Portio Research. All Rights Reserved
Asia Pacific dominates mobile entertainment revenues, aided by However, in other markets like Latin America, Africa and thecountries such
the huge subscriber base in Middle East (namely the
Rest of the World region) there remain issues which need to be addressed before these
as China and India, and the highly advanced mobile markets of Japan andtake-off. The wireless markets in these regions are comparatively
services can really South Korea.
In the field of mobile entertainment, mobile music emerges as the star performer; nearly half of the mobile 26 © 2009, Portio Research. All Rights Reserved
entertainment sector’s revenue in 2008 was generated from mobile music services.

7. Digital Music in ASIA
By the numbers.......
Digital music (i.e. online and mobile) will outsell physical music in
Asia. This year India and South Korea have already crossed over.
Globally, online and mobile music sales will represent more than
60% of all music retail sales by 2009.
Almost 50% of all music purchases in Asia in 2006 were digital, of
which 85% were sales of mobile music e.g. Caller Ringback Tones,
OTA tracks, ringtones
Asian music sales will continue to be dominated by mobile music
which will comprise 75% of all music purchased by 2009.
Asia Pacific will generate more than 40% of all mobile music sales
globally in 2009.
While mature markets like Australia and the United States will see
growing online music revenues at 1:1 online:mobile or greater,
emerging markets will be virtually 100% mobile oriented.

8. We will help you
get there !
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