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Mobile Content Gathers Pace in Australia

  • 06 June, 2005 15:49

<p>Increasing returns and the pace of technical change has breathed life into the Australian telecommunications industry.</p>
<p>Sydney, Monday, 6 June 2005 – According to a new study from Frost &amp; Sullivan, the mobile content market generated AU$129m in 2004.</p>
<p>This equated to an average customer spend of 85c per month on mobile content across all Australian mobile phone subscribers. The top earner was the personalization market, including ringtones and wallpapers, altogether accounting for 69% of the content revenues. The forecast for growth is strong with the total market predicted to grow to AU$1.015 billion by 2009.</p>
<p>“Our research has shown that the Australian mobile content is on the brink of strong growth, driven by increasing consumer awareness and industry competition to supply new mobile products and services”, says Chia Seiler Telecommunications Analyst at Frost &amp; Sullivan.</p>
<p>The strongest sources of growth over the next five years are forecasted to be entertainment (including the lucrative adult services sector), followed by enterprise applications and productivity services (e.g. personal email and instant messenger services).</p>
<p>While mobile ringtones and wallpapers have been one of the most visible sectors of the market to date, in 2004 the mobile content industry broadened beyond the market of “early adopters” supplying news, information, and productivity services, such as email, to an increasingly mainstream market.</p>
<p>Enterprise applications had only a relatively small presence in the Australian mobile content market through 2004. In part this is a natural reflection of the fact that the drivers of entertainment, personalization, and convenience do not effect the enterprise market to the same degree as the consumer market, however it is also true that there are still relatively few true mobile enterprise and business applications. Stronger growth is predicted for this market as the applications mature and the productivity gains become more convincing.</p>
<p>The inevitable movement of online products also picked up a notch as yet more companies ported their online services to the mobile world.</p>
<p>With respect to the year ahead, Ms Seiler comments that, “One of the largest challenges for the mobile content industry in 2005 will be the establishment of successful business models in a fast paced and turbulent industry”.</p>
<p>“In the end it is consumers and businesses that will benefit from increasingly sophisticated applications and services in ways that many may not yet have imagined”, says Seiler.</p>
<p>The report provides detailed market segmentation of the personalisation, entertainment, productivity, enterprise, and information markets, as well as forecasts for each segment over the period 2004 – 2009.</p>
<p>The market share for mobile telecommunications service providers is detailed as well as mobile content ARPUs (average revenue per user) for 2004.</p>
<p>The market is also segmented into the payment platforms used for purchasing the mobile content. Specifically, premium SMS, telecommunications service provider portals, IVR, SIM toolkits, credit card, and URL payments are covered.</p>
<p>Mobile subscriber forecasts for 2.5G services and 3G services are given for the period 2004-2009.</p>
<p>About Frost &amp; Sullivan</p>
<p>Frost &amp; Sullivan’s Asia Pacific ICT division is the largest dedicated telecommunications and network convergence analyst group in the region. The team consists of highly capable and experienced analysts and consultants, operating in a network of offices across the Asia Pacific including Singapore, Korea, Malaysia, China, India, Australia and Japan.</p>
<p>Frost &amp; Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost &amp; Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com</p>
<p>For more information</p>
<p>Chia Seiler
Industry Analyst –Telecommunications
Frost &amp; Sullivan Australia
Tel: +61 2 8247 8915
Email cseiler@frost.com</p>

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