GLOBAL PREMIUM A2P (MT) & P2A (MO) SMS/MMS MESSAGING MARKET SIZE & FORECAST ( )

Transcription

1 GLOBAL PREMIUM A2P (MT) & P2A (MO) SMS/MMS MESSAGING MARKET SIZE & FORECAST MarketsandMarkets

2 MarketsandMarkets (M&M) is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. M&M covers thirteen industry verticals, including advanced materials, automotive and transportation, banking and financial services, biotechnology, chemicals, consumer goods energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2011 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets 2

3 1 SUMMARY Since its inception on December , the global short message service (SMS) has grown by leaps and bounds. In 2008, the global SMS traffic was xxx trillion in terms of volume, which grew to xxx trillion in 2009 at a growth rate of xxxx%. MarketsandMarkets forecasts SMS traffic volume to grow from xxx trillion in 2010 to xxx trillion in 2015 at a CAGR of xxx%. Largely driven by short-code based SMS services, premium messaging (PSMS) is estimated to have contributed approximately xxx% of the global messaging volumes in 2008, which is expected to reach xxx% during The PSMS segment is estimated to contribute approximately xxxx% of the global messaging revenues in The global premium messaging market traffic is expected to grow from xxxx billion messages in 2008 to xxx billion messages in 2015 with an estimated CAGR of xxxx% from 2010 to TABLE 1 GLOBAL PREMIUM MESSAGING MARKET, BY VOLUME (UNITS IN BILLION) Type CAGR% PSMS XXXX XXXX XXXX XXXX XXX PMMS XXXX XXXX XXXX XXXX XXX Total XXXX XXXX XXXX XXXX XXX MarketsandMarkets 3

4 The PSMS segment accounted for the largest share - i.e. 85.1% - of overall premium messaging market in The segment is expected to reach billion messages in 2015 growing at a CAGR of 39.9% during TABLE 2 GLOBAL PREMIUM MESSAGING MARKET, BY REVENUE ($BILLION) Type CAGR% ( ) PSMS XXXX XXXX XXXX XXXX PMMS XXXX XXXX XXXX XXXX Total XXXX XXXX XXXX XXXX The global premium messaging market by value has grown from $XXXX billion in 2008 to $XXX billion in 2010 at a CAGR of XXX%. The PSMS segment accounted for XXX% of the overall premium messaging market revenue at $XXXX billion in Volume-wise, PSMS traffic is higher than PMMS (95.62 billion and XXX billion for PSMS and PMMS respectively as of 2010); the reason being- PMMS faces bandwidth and resolution issues, which are absent in case of PSMS. MarketsandMarkets 4

5 2 MARKET OVERVIEW 2.1 PREMIUM MESSAGING MARKET DEFINITION Over the years, the service providers have explored new line (data-based) of revenue other than the voice based revenue; this has created opportunities for the growth of data revenue, which is further enhance with the introduction of value added services (VAS) that are charged at a premium. Mobile VAS include non-voice advanced messaging services such as SMS, MMS, MIM, and UM and wireless data services which are based on wireless data bearer technologies such as WLAN, 1xRTT, GPRS, WAP with VAS applications that includes mobile gaming. Mobile VAS also consists of voice-based services such as PTT and WDA. Premium messaging is a sub segment of the VAS portfolio, which refers to the purchase, or subscription of content or specific programs provided by third party content providers, at a premium price. For instance, voting during TV shows, purchase of wallpapers, ring tones, weather alerts, sports score alerts, daily jokes and various other programs. MarketsandMarkets 5

6 FIGURE 1 PREMIUM MESSAGING MARKET DEFINITION Voice Data Standard SMS/MMS Standard calls Mobile content services using PSMS & PMMS Voice messages to subscribers Target market P2P A2P and P2A 2.2 PREMIUM MESSAGING MARKET STRUCTURE In the mobile value chain, the messaging market is an integral part of the data revenue for network operators and is divided primarily into two segments: premium and non-premium. The premium messaging services can be further segmented into Premium Short Message Service (PSMS) and Premium Multimedia Messaging Service (PMMS). PSMS and PMMS are again classified as Premium Application to Person (A2P) and Person to Application (P2A), which are also termed as Mobile Terminated (MT) and Mobile Originated (MO) respectively. Premium mobile content which originates from a mobile device of a subscriber in the form of SMS or MMS and directed towards automated application of a service provider or network operator is called P2A or MO premium SMS or MMS. In either of the cases, the service is based on a short MarketsandMarkets 6

7 code (three to six digit numbers) or long code (ten digit numbers) and has a higher charge than normal SMS or MMS service. Premium messages are also known as reverse billed SMSs. Non-premium services are classified as Network-based and IP-based. Network-based include SMA and MMS and IP based include Instant Messaging (IM) and . FIGURE 2 MESSAGING MARKET STRUCTURE Messaging Market Premium service Non-premium service PSMS PMMS Network based services IP Based services SMS IM A2P (MT) P2A (MO) Mobile marketing Voting and entertainment MMS Subscriber services Billing & micro payments Generally, premium A2P messaging services are used for delivery of mobile marketing contents, information services, and alerts. P2A services include interactive service like TV voting, and multimedia content, which generally deal with users request for special content or services. MarketsandMarkets 7

8 2.3 PREMIUM MESSAGING VALUE CHAIN ANALYSIS The premium messaging value market chain primarily consists of three players namely: Content providers They develop, format and customize the content used to facilitate premium messages. Mobile content refers to anything available to the users of mobile phones such as ringtones, screensavers, and games. Mobile content providers develop such content and then deliver it to integrators or SMS wholesalers. SMS wholesalers and/or aggregators - The wireless carriers or network service providers route all such requests for premium connectivity through aggregators or wholesalers; whose primary role is to act as middlemen between a content provider's systems and the wireless carrier's networks. Generally, SMS aggregators or wholesalers act as both - a gateway between the content providers and mobile network operators and as a medium to make the overall process or premium messaging exchange fast and efficient. Mobile network providers often develop their own content and route premium messages directly to their subscribers. An aggregator exclusively routes and receives bulk messages, whereas, sometimes, content/platform provider develops content/platform and sells directly to the service providers or mobile network operators. MarketsandMarkets 8

9 FIGURE 3 PREMIUM MESSAGING SERVICES VALUE CHAIN Mobile network operators Subscriber base Content/ platform providers SMS Wholesalers Content providers/service providers provide information/data to SMS wholesalers for aggregation. SMS aggregators/wholesalers send A2P messages to mobile subscribers through MNOs to sell the content through different network operators. The user, in response, sends a P2A message to service provider MNOs, for which premium charges are applied to mobile subscriber s mobile bill. An SMS aggregator/wholesaler is connected to several mobile network operators. Currently, service providers face the issue of network complexity and therefore earn least revenue as compared to the other points in the value chain. MarketsandMarkets 9

10 FIGURE 4 PREMIUM MESSAGING SERVICES VALUE CHAIN ANALYSIS Subscribers pay U.S. $XX for premium content Retains up to U.S. $XXX Retains U.S. $XXX to U.S. $XXX Receives up to U.S. $XXX Subscriber's Mobile network operators SMS wholesalers/ aggregators Content providers In the mobile network value chain, the figure above indicates that mobile network operators (MNOs) deals with large number of small and large aggregators or SMS wholesalers. MNOs are responsible for collecting fees of the service from the subscribers and hence keep a major portion of the fees with them; remaining part of the fees is distributed between SMS wholesalers and content/platform developers. MNOs receive the highest share in the total revenue as subscribers can be targeted only through them. The revenue share between the operators and that of service /content providers is distributed in the ratio of XX:XX; whereas, in the complete value chain, mobile network operators earn about XX- XX%, aggregators earn about XX- XX%, and content providers earn about XX- XX% of the revenue. MNOs keep close to XX% of the total revenues earned while the rest is divided among SMS wholesalers and content/platform providers. However, the revenue share varies amongst different geographies and according to the size of individual players. Also, the current revenue sharing scheme is not helping the market to grow, as there is lack of innovative binding and must subscribe services. This is due to the lack of interest shown by content/platform providers, as there share in the revenue is very low compared to the MNOs, in spite of being crucial to the development of premium messaging applications. MarketsandMarkets 10

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