Market Overview additional service provider from J'son & Partners Consulting

The company J'son & Partners Consulting presented the main results of additional market research service provider. As part of this study was carried out to study the current status and major trends of the market by regions (America, Europe and Asia), made a detailed review of the situation and to develop scenarios for further development of the market of additional services in Russia.

In this paper we consider such additional services of cellular communication, as SMS, MMS, RBT, LBS, IVR, mobile Internet, mobile commerce, mobile marketing and mobile TV.

It is estimated J'son & Partners Consulting, the market of additional services in Russia in 2008 reached 94 billion rubles. (or 3.8 billion dollars) in the first half of 2009, revenue from VAS provider was 55 billion rubles.

Most of the proceeds from the additional service provider (as, however, and proceeds from the basic services) are operators of «big three»: «MTS», «VimpelCom» and «MegaFon» (83,3% in the 1 half of 2009) .

Short Message Service (SMS) continues to be the main driver of revenue (more than 50% of the proceeds from all additional services). Content services (including mobile commerce) and mobile Internet take up almost equal proportion: 22.6% and 22.5% respectively.

Given the socio-economic situation (reduction in effective demand, as well as took place in late 2008 devaluation of the ruble, not accompanied by growth of ruble prices for additional services) in 2009 should expect a decline in the market in dollar terms to U.S. $ 2.95 billion . when growth in ruble terms of 4% (a realistic scenario).

The main negative trends of Russian market of additional services should be noted:

1.Stagnatsiyu segment «Mobile Content», due to, first of all, the rapid fall in sales of ringtones, and paid video content (which is offset by increased revenue for the service, RBT). This is due to the increase in literacy of subscribers, the rapid growth of the functionality of mobile terminals, providing advanced features to search for music tracks and videos on the Internet, as well as ill-considered policies right.
2.Snizhenie growth of revenues from services RBT. This is due, primarily, a limited content RBT-base, the exhaustion of the capacity of formats promotion ( «Some melody instead blasts»), with a very complicated procedure for selecting the desired melody.
On the other hand, proceeds in several market segments continues to grow:

• Mobile commerce. This service is closely linked to market Internet services - the bulk of the funds used to pay for Internet services. Internet traffic, despite the crisis is growing, which means an additional demand in the segment of mobile mikroplatezhey.
• Mobile Internet. This service is particularly relevant in areas where wireless access is often the only option for Internet access.