Global: Trends for 2012 - Asia-Pacific

The team at Pyramid Research has looked ahead to 2012 to identify the key trends they expect to see in the coming year.

India’s mobile market will take its first steps toward long-overdue consolidation

The market is much too crowded, with 17 mobile licensees, leading to extreme price competition and erosion of margins. The regulator’s intention to reduce SMS interconnection and roaming charges might be the final catalyst driving consolidation. Pyramid Research has found that large and small markets alike tend toward a three-to-four nationwide operator competitive environment. We expect initial consolidation to take place between 3G and non-3G license holders or for operators to seek alliances to achieve nationwide coverage.

The 'local' handset makers will make their presence felt

The handset market has long been dominated by multinational vendors such as Nokia Corp and Samsung Corp., but the rise of the local vendors can’t be overlooked. Chinese vendors such as Huawei Technologies Co. Ltd., ZTE Corp. and Coolpad have been doing significantly better in recent years in China and India, and their low-cost smartphones will give them an extra boost in sales in 2012, both in Asia and abroad. Other vendors, for example, i-Mobile of Thailand and G’Five/ Micromax in India, are also some notable names coming out of the region, with G’Five entering the top five in India. They will continue to excel in their respective markets based on their understanding of the market, brand and low price strategy. The success in the local markets will also enable them to venture out to regions where the demand for low-cost and entry-level intelligent devices is rising.

Service providers will make cloud computing central to their growth strategies

Cloud computing has been a source of discussion for several years, but we’re now beginning to see the signs that it will become central to operators’ growth strategies in 2012, particularly in more saturated markets where growth in traditional services is waning. We see cloud computing becoming important among Hong Kong’s players, and Chinese operator China Telecom announced the introduction of its eSurf cloud computing service in 2012, giving further weight to the cloud computing trend in the region. With national broadband plans underway in Singapore, Australia, New Zealand, Malaysia, among others, cloud computing will only see its importance rise.

We will witness the beginning of the end of WiMax in Asia

Asia has long been considered an important test bed for WiMax technology, with local governments like the Taiwanese government putting political muscle behind the technology and licenses being awarded throughout the region. 2012, however, might be the year that marks the beginning of the end for WiMax. Operators in Taiwan and Malaysia are opting to use LTE instead of WiMax (or asking permission of regulators to make the switch), and the majority of BWA licensees in India, considered by WiMax proponents as an ideal market for WiMax, are opting for LTE. Waning operator support will also translate into declining vendor support and higher prices for the technology and, most importantly, the price of end-user devices, which ultimately determine a technology’s success.

Global : Mobile Subscription and Penetration Forecast 2008-16

• Global Mobile Penetration reaches 82 percent in Q3 2011 and mobile subscriptions now total around 5.8 billion. However, the actual number of subscribers is around 3.9 billion, since many subscribers have several subscriptions.
• India and China accounted for approximately 40 percent of the estimated – 135 million net additions during Q3 2011, adding around 20 and 30 million subscriptions respectively. For India, this figure is lower than previous quarters due to operators increasing focus on active subscribers.
• Indonesia, Brazil and Bangladesh follow in terms of net additions.
• Mobile subscriptions have grown around 13 percent year-on-year and 2 percent quarter-on-quarters.
• Around 75 percent of subscriptions are GSM. 14 percent are WCDMA/HSPA.
• Mobile broadband subscriptions have grown around 60 percent year–on-year and have reached close to 900 million.
• There is continued strong momentum for Smartphone uptake in all regions. Approximately 30 percent of all handsets sold in Q3 were Smartphone’s, compared to around 20 percent for the full year 2010. However, only around 10 percent of the worldwide installed base of subscriptions uses Smartphone’s, which means that there is considerable room for further uptake.

Subscription Development – Fixed & Mobile:

Demand for fixed broadband maintains a robust place. Net additions during Q2 2011 reached 14 million. Global fixed broadband subscriptions reached around 550 million, mainly boosted by strong growth of DSL in China.

China is the largest single country in terms of fixed broadband subscriptions with around 140 million, followed by the US and Japan. DSL represents more than 60 percent of all fixed broadband subscriptions followed by cable and Fiber-To-The-Home/Building (FTTH/B). Fixed broadband growth will remain steady over the coming years.

The number of fixed voice subscriptions will continue its downward trend as users increasingly switch to mobile and VoIP substitutions. The number or mobile broadband subscriptions will approximately match the number of fixed voice subscriptions by the end of 2011 and is predicted to be close to 5 billion by 2016. Mobile PCs and tablet subscriptions are also increasing and are expected to almost close the gap with the number of fixed broadband subscriptions by 2016.

In total, mobile subscriptions will reach above 8 billion by 2016, excluding the growth potential from M2M and other connected devices.

Regional Mobile Growth:

In Q3 2011, Asia Pacific (APAC), including China and India, Contributed the largest portion of new subscriptions with 55 percent, followed by Central and Eastern Europe, Middle East & Africa (CEMA) with 30 percent.  Western Europe added 2 percent, North America 3 percent and Latin America 10 percent. China currently has the highest number of subscriptions at above 900 million, followed by India and the US.

Figure 4 projects reported mobile subscriptions in each region up until 2016 and is characterized by steady growth. This is especially evident in the Asian regions where there are many developing nations. The number of mobile subscriptions in the APAC region is predicted to grow by 1.3 billion by 2016, representing 55 percent of global net additions.

Subscription VS Subscriber:

There is a difference between the number of subscriptions and subscribers. This is due to the fact that many subscribers have several subscriptions. Reasons for this could include users lowering their traffic cost by using optimized subscriptions for different type of calls, or having different subscriptions for mobile PCs/tablets and for Mobile phones. In addition, it takes time before inactive subscriptions are removed from operator databases. Consequently, penetration can easily reach above 100 percent, which in the case in many countries today.

Mobile Technology:

Figure projects reported mobile subscriptions by technology. Subscription are represented under the most advanced technology the handset is capable of using. Even though HSPA subscriptions are growing rapidly today, GSM subscriptions will continue to lead until the end of the forecast period. This is based on the fact that new lo-end users entering networks in growing markets will use the cheapest handsets available. However, the rapid migration to more advanced technologies in the developed world means that the global number of GSM subscriptions will start to decline from 2012. LTE is currently being deployed and built out in all regions and will be used by a small but growing share of the total subscriber base by 2016.

Global: Mobile-VAS Importance to Mobile Operators

The operators have been successful in attracting new customers through aggressive marketing and competitive pricing, but once the acquisition process has been completed the operators tend to fall short in their duty as a customer-focused service provider.

The single biggest challenge for the telecoms industry over the next coming years will be managing the customer experience end-to-end. Furthermore, the most obvious way operators can compete with over-the-top (OTT) players (Internet brands) is by leveraging customer data and offering a tailored user experience, with targeted marketing and recommendations. Operators are well positioned in the value-chain to do that but it requires serious moves.

Amdocs just recently published very interesting survey on the critical role of Value-Added Services (VAS) to Mobile Operators in terms of customer experience & retention. They conducted telephone interviews with 220 telecom execs from 18 countries: Argentina, Australia, Brazil, Canada, France, Germany, India, Indonesia, Italy, Malaysia, Mexico, Poland, Russia, Spain, Thailand, UK, USA and Vietnam and the findings were as follows:

Mobile VAS is important to operators and revenue contribution will grow significantly over the next 3 years.

Interestingly, VAS ranked a little less important in Latin & North America, but both regions project it will account for ~40% of revenues in the next 3 years.  Countries where at least 50% of respondents said VAS was important or very important included all APAC countries (except Thailand which was 35%), Brazil, France, Italy & the UK. All regions expect at least 10% more VAS revenue contribution over the next 3 years.

Improved customer experience is equally if not more important than generating new revenue streams.  One of the main take away from the last 2 surveys is that customer experience & retention is the main business driver for pursuing VAS.  That makes sense, especially in pre-paid markets where consumers have multiple SIMs – one operator in such a market told that it had a whopping 40% churn.

And data services can’t be the only growth engine.  SMS, while popular and lucrative for operators in the West, isn’t the answer for some emerging markets where you can purchase a Blackberry and data plan, and BBM for free as much as you want.   And while unlimited data plans increase data adoption, heavy usage by some is creating a capacity crunch that decreases network quality – and customer experience.

Almost 50% of subscribers or more will own Smartphone’s in the next 3 years.  Gartner predicts it will be 60% globally. IDC claimed Smartphone penetration was 20% at the beginning of this year.  Respondents rated Blackberry, Android devices & iPhones as the most popular currently – in that order.  Gartner predicts Android will lead the pack worldwide in 3 years, followed by Symbian and iPhone.

Global: Apple Faces IPhone And IPad Ban In Germany

Apple faces the prospect of having its iPad and iPhone devices banned in Germany, just months after securing a ban on Samsung’s Galaxy Tab 10.1 in the country with a similar ruling.

Motorola Mobility, which is the subject of a prospective takeover by Google, won a ruling in a German court against Apple’s European sales company, Ireland-based Apple Sales International, based on a patent relating to a “method for performing a countdown function during a mobile-originated transfer for a packet radio system”.

The Court has granted Motorola Mobility’s requests for an injunction and damages, the company said. The news will come as validation for Google, which is pursuing the business primarily for its patent portfolio.

“We will continue to take all necessary steps to protect our intellectual property, as our patent portfolio and licensing agreements with companies both in the U.S. and around the world are critical to our business,” said Scott Offer, senior vice president and general counsel of Motorola Mobility.

“We have been negotiating with Apple and offering them reasonable licensing terms and conditions since 2007, and will continue our efforts to resolve our global patent dispute as soon as practicable.”

Unsurprisingly, Apple announced plans to appeal the decision.”We’re going to appeal the court’s ruling right away,” read a statement from the firm emailed to Dow Jones Newswire. “Holiday shoppers in Germany should have no problem finding the iPad or iPhone they want.”

The move is the latest twist in an ongoing patent saga between Apple and Google’s Android hardware partners.

Apple recently failed to secure a ban on Samsung’s Galaxy Tab 10.1 in Australia, after an Australian High Court rejected an appeal to keep the device off shelves. It was also denied a preliminary injunction to block the sale of Samsung’s touchscreen smartphones and tablets in the US, while Samsung too lost out in its attempts to ban sales of Apple’s iPhone 4S device in France.

India: 3G Intra-Circle Roaming Agreements – A Must for Consumer Benefit

Private telcos see intra-circle roaming agreements as a way to provide pan-India 3G service to customers. But TRAI, BSNL believe such deals violate license conditions.

3G Auction Summary:

In May 2010, when licenses for 3G spectrum were awarded through auction by the Government of India, it was decided that in each telecom circle of the country (there are 22 circles in all) three or four private carriers would be allowed to bid for spectrum, and one of the two government carriers - BSNL, by and large, and MTNL in Mumbai and Delhi - would be an additional choice available to customers.

At the end of the auction, BSNL/MTNL, which got spectrum in all circles without having to bid but at bid-determined prices, emerged as the largest 3G operation in the country. The state-run operators were also allowed a head start of six months over their private competitors in launching their 3G operations. On the other hand, no single private carrier bid for all-India spectrum. The major private telcos - Bharti Airtel, Vodafone Essar, Idea, Aircel, Tata Teleservices, Reliance - ended up with between 9 and 13 circles each, which meant they could not offer pan-India services.

Now, a dispute has broken out between the private telecom operators and BSNL, with the Department of Telecommunications also weighing in favour of the state-run carrier. The reason - private companies are entering into intra-circle roaming agreements with each other, which would allow them to offer 3G services even in circles for which they had not bid and won spectrum, using the facilities of their partners in such agreements. BSNL has objected to this, saying it is a violation of license permit conditions.

Earlier this year, Vodafone, Airtel and Idea announced a series of Intra Circle Roaming Agreements (ICRAs) that allow the three companies to offer pan-India 3G service (Orissa excluded, as none of the three operators hold a 3G license for this circle). Along similar lines, under an agreement with Tata Telesevices, Aircel has begun offering services in Maharashtra, Madhya Pradesh, Haryana, Gujarat, and western UP circles although it does not hold licenses for those circles.

The Auction itself was Infernal:

It focused on maximising returns for the government, not on maximising consumer benefit. As a result, we have operators with only 5 MHz of spectrum each, split across telecom circles so that none has pan-India coverage, and they have all been forced to pay exorbitant amounts for a land-grab of spectrum that doesn’t quite work to their advantage. The fact that some of them have chosen to tie up and share spectrum shows that they don’t view 3G as a competitive advantage and it was only a defensive move to take part in the auction.

The meantime, the government policy focused on maximising profit and creating artificial scarcity and boundaries has resulted in some consumers being effectively denied access to high speed spectrum just because their preferred telecom operator did not win spectrum in that circle. The government policy on the 3G auction has been out of sync with consumer needs and the state of the telecom industry, looking only at financing its own fiscal deficit. If you want consumer benefit, telecom operators should be allowed to share spectrum – whether 2G or 3G – and focus on maximising ubiquitous availability of affordable consumer services. Right now you have some telecom operators with more consumers and less spectrum, leading to poor quality of service, and others hoarding spectrum with not enough consumers, leading to wastage of spectrum utilization.

Why TRAI didn't considered such ICRA's as an outcome of split Auction?

These ‘Roaming arrangements’ don’t appear to be in line with government policy, but was the TRAI asleep when the arrangement was first made public in June? What has led to them sending this letter a full four months after the services became active. What this delay has meant is that there is little chance of a roll back of the service because customers would (we assume) already have signed up for the service. This way, the TRAI has given enough time for them to build a consumer base so the roaming arrangement is unlikely to be revoked, and fines will probably be imposed. How convenient and/or incompetent. This is not dissimilar to the issues around the 2G scam, where the government ignored the situation until the criticism blew up big.

Did DoT previously okay ICRAs?

All of this raises a basic question, namely, did the Government and the DoT, as well as the private operators not anticipate that operators would get into agreements among themselves to provide pan-India coverage?

The inevitable result of limiting each circle to three or four private carriers was that each of the bidders was forced concentrate its bid of specific circles that it cared the most about. And in the process, they ended up with the rights to provide 3G service only in those circles. That much is clear. What is not clear is whether anyone bothered to ask and answer the question: considering that customers of the telcos travel all over India, would they not want to be online through their 3G service wherever they are, regardless of whether their service provider held a license to offer 3G in that circle?

Private operators reply that this question was asked and answered at the time of bidding itself; the COAI statement alludes to this. The specific questions pertaining to intra-circle 3G roaming in circles where they do not hold licenses were put before the DoT at the time of the spectrum allocation itself, they say. And the Department had at that time indicated that the kind of roaming agreements they are entering into now would be permitted. Some operators also claimed that they had notified DoT about their ICRAs before signing them, suggesting that the Department had not previously found anything wrong with such agreements.

Whether intra-circle roaming was specifically permitted in the license conditions, therefore, is to be resolved. Meanwhile, the action is hotting up on several fronts. TRAI has served notices on the companies, questioning the legality of their 3G intra-circle roaming agreements. The Central Vigilance Commission has also sought the DoT's opinion on the matter. And inevitably, there is also a legal element, with a Public Interest Litigation now brought before the Supreme Court seeking its intervention in the matter.

Implications of Cancelling Wireless 3G Intra Circle Roaming Agreements:

3G Service providers are struggling to survive with poor take-off and adding to their woes is Headless Government’s stand to cancel Roaming arrangements.

For Consumers – If 3G Roaming is scrapped, 3G tariffs may rise over time owing to lower competitive intensity (in this sense, the roaming agreements are definitely pro-consumer).

Note: Already in 3G Poll, 67% of Subscribers are complaining of High 3G Tariffs for not subscribing to the same

If 3G roaming is scrapped, then we believe some churn will happen as non-3G telcos in any circle will try to gain 2G subscribers to replace the revenue lost owing to the 3G subscriber churn.

Again churn will happen where Telcos may lose pure 2G subscribers in circles without 3G spectrum, they will also gain in circles with 3G Spectrum.

TRAI mentions that some telcos are paying 2G spectrum charges in their non-3G circles. Telcos have added 3G subscribers/ provided 3G services without paying the 1% additional spectrum charges on 3G spectrum.

Theoretically Reliance Communications would benefit from cancellation of 3G ICRs. It is the only major telco other than BSNL/MTNL that has a pan-India 3G spectrum and has not entered into 3G roaming agreements.

3G ICRA's: A Win-Win situation for Operator and Subscriber

Those who argue that private telcos are violating license conditions  say 'roaming' is a temporary service available to subscribers as they travel between circles, whereas the way the agreements are being used now is quite different. Armed with ICRAs, operators without a local license are providing full service 3G to customers’ resident within a circle using a 'roaming' agreement with a local license holder. This says the regulatory body Telecom Regulatory Authority of India (TRAI) amounts to 'spectrum-sharing' or a 'Mobile Virtual Network Operation - a kind of 'reseller' operation that is usually carried on by smaller companies that buy bandwidth from license holders. Spectrum-sharing and MVNOs are both not allowed under the terms of mobile permits.

The Telecom Enforcement, Resource and Monitoring (TERM) Cell of the Department of Telecommunications (DoT) has also stepped into the middle of the debate with its views. The Cell, which is responsible for ensuring that no one without a license operates telecom service in the country, recently opined that the agreement between Airtel, Idea and Vodafone is illegal, and has asked DoT to take action against them.


TRAI, in its letter to the Secretary, DoT has suggested that license norms are being violated, and companies are offering 3G services in areas where they had not even bid for spectrum. It is also concerned about possible overloading of the limited spectrum available, as operators compete for customers.


State-owned BSNL, which earlier this year failed in its attempt to enter into ICRAs with private companies to use its pan-India spectrum, is anxious that it should not be exposed to more competition than it had planned for, as a result of the new deals between its competitors. But if BSNL now believes that ICRAs violate license terms, then it is not clear how it could have itself proposed to enter into ICRAs with the private telcos earlier (it is another matter that those talks failed).


Private companies, defending themselves, insist they are complying fully with license conditions. The Cellular Operators' Association of India, the lobbying arm of the major GSM telecom players in the private sector recently represented before the Minister for Telecommunications that ICRAs do not violate the license conditions for 3G services. According to a COAI press statement, "The 3G Intra-Circle Roaming is not an infringement of the licence conditions but is well within the ambit of Licence as clarified by DoT at various forays."

Operators Pitch on Govt Stand:

Tata Tele, Aircel scrap 3G roaming deal

Tata Teleservices and Aircel have scrapped their agreement for offering services in each other's circles. This comes after the DoT termed such agreements as illegal on grounds that it is tantamount to spectrum sharing

Refund 3G license fees if Roaming pact illegal: Bharti Airtel, Vodafone & Idea Cellular

Bharti Airtel, Vodafone and Idea Cellular are seeking Prime Minister Manmohan Singh’s intervention in the 3G ICR issue. The companies want a refund of the 3G license fees they have paid if the roaming pact between them is considered illegal.

Global: Android Stats - South Korea Second Only To U.S. In App Downloads

Research firm research2guidance in conjunction with Android expert and developer network AndroidPIT published a report that offers key findings from an analysis of mobile app trends in the Android Market. The first point is perhaps not so surprising: Although we think of Android as having significant global reach as a mobile operating system, the U.S. remains (by far) the largest market for Android apps. According to the study, with over 3.49 billion total downloads as of September 2011 and with 50 percent of Android app downloads (to date) originating at home, the U.S. is dominating the Android app market.

However, the research firm is quick to point out that, although the U.S. leads, there is some saturation happening here, while other markets abroad have come to represent significant potential growth areas — and hotbeds of activity. In fact, (though this may not be news, it doesn’t seem to be widely covered in the U.S.), South Korea has the second largest market in terms of app downloads — even though it lags behind the U.S. with a small-ish 9 percent market share. In fact, to date, South Korea had the highest number of total app downloads after the U.S., at 603 million.

South Korea has relatively high Android smartphone penetration and a high number of app downloads (per user). According to research2guidance Co-founder Markus Pohl, South Korea’s growing share is supported by the country’s extensive IT infrastructure, which not only is known for its high speed and extensive coverage, but also for being fairly inexpensive, around $0.45 per Mbs compared to $11 in the U.K., for example. (South Korea is also home to major OEMs, like Samsung.)

South Korea is followed by the U.K., Germany, France, and Japan — all of which are currently tallying over 20 million downloads per month. And, what’s more, the study shows that users based in the largest Android markets are not always the most active app downloaders. User download behavior varies widely between markets, but it seems that potential “cash cow” markets are to be found in, perhaps, unexpected places.

Sweden, for example, has a relatively low market share (and low smartphone penetration) compared to the rest of the world, but it has the highest average monthly app downloads per user — at a rate of over 5 apps per user per month. This is compared to the average user in major Android markets, which downloads 2 to 3 applications per month.

Higher average downloads per user show the market’s rate of absorption and growth potential, as higher numbers can indicate the society’s openness towards new apps and the fact that total app downloads in these countries could increase with less marketing efforts compared to countries with less active users.

On the other hand, Russia and China have very low Android smartphone penetration rates and very low app downloads per user. Granted, while a much lower rate of downloads per user might show that these markets aren’t yet ready for Android apps to really take off, the relatively young target market and their population size could have significant impact on app market development in these countries, and will be huge Android adopters in the near future.

As to apps in the Android market seen as a whole, over the past few months, the report finds, the number of apps has grown “faster than ever”. Every week publishers are releasing 11,000 new apps to the market, compared to an average of 7,500 during the summer. At the end of October, the number of total apps was 365,404 — a growth of over 40K total apps than a month ago.

Of the total apps, the share of paid apps dropped to 32.4 percent, as “publishers are increasingly aware that Android users are unwilling to pay for downloads”, which is, in turn, catalyzing the adoption of in-app billing and advertising. Furthermore, in
 October
,
 developers
 charged
 an average of $3.06
 for
 paid
 apps, and prices ranged from $0.99 to $14.87.

Global: Broadband - A Need of the Hour

Overview:

Broadband technologies are fundamentally transforming the way we live. It is vital that no one be excluded from the new global knowledge societies we are building. We believe that communication is not just a human need – it is a right. The greater communication and understanding made possible through access to information and communication technologies (ICTs) can help us overcome the challenges in our complex and interdependent global society.

Broadband Technologies:

• Digital Subscriber Line (DSL):Provides digital data transmission over the wires of a local telephone network. The data throughput of consumer DSL services typically ranges from 256 kbit/s to 20 Mbit/s depending on DSL technology, line conditions, and service-level implementation.
• Bonded dial-up modems: To provide increased bandwidth over dial-up multilinking technology or modem bonding was developed. It require two modems, two phone lines, two dial-up accounts, and an ISP with support for multilinking - and of course any line and data charges would also be doubled.
• Integrated Services Digital Network (ISDN): ISDN, a telephone data service standard ISDN line with 2 data "bearer" channels can be bonded together for 256 kbit/s or more and this technology has been used for video conference applications and broadband data transmission.
• Leased lines: A leased line is a service contract between a provider and a customer, whereby the provider agrees to deliver a symmetric telecommunications line connecting two or more locations in exchange for a monthly rent. Leased lines are more expensive than alternative connectivity services
• Satellite broadband: Satellite Internet is usually among the most expensive ways of gaining broadband Internet access, but in rural areas it may be the only choice other than cellular broadband.
• Cellular broadband: Cellular phone towers are very widespread, and as cellular networks move to third generation (3G) networks they can support fast data; using technologies such as EVDO, HSDPA and UMTS.
• Power-line Internet: Broadband over power lines (BPL), also known as Power line communication, may eventually permit broadband Internet data to travel down standard high-voltage power lines.
• Wireless ISP: This typically employs the current low-cost 802.11 Wi-Fi radio systems to link up remote locations over great distances, but can use other higher-power radio communications systems as well.
• Cable broadband: Broadband cable Internet access requires a cable modem at the customer's premises connected via coaxial cable or a Hybrid Fiber Coaxial and bit rates can be as much as 400 Mbit/s for business connections, and 100 Mbit/s for residential service in some countries.
• Fiber to the Home: Similar to cable Internet access, but promised much faster bit-rates - up to 100 Mbit/s.

Global Growth of Broadband

Benefits of Broadband:

• Dial-up modems are limited to a bit rate of about 60 kbit/s and require the dedicated use of a telephone line whereas broadband technologies supply more than this rate and generally without disrupting telephone use.
• Broadband Internet access may give access to Internet services such as: Telephony, radio, television and videoconferencing, Virtual private networks and remote systems administration Online gaming especially massively multiplayer online role-playing games which are interaction-intensive, faster downloading of videos, pictures, files & software.
• It does not affect the phone line. For DSL internet access, you can use the same phone line for both voice/fax and data transmission.  For cable internet access, you are connected to the internet via the cable network. In either case, your phone line is not occupied while you are connected to the internet.
• Greater access to the Internet and broadband applications and services help accelerate achievement of internationally-agreed development goals, improving awareness of hygiene and healthcare.
• Helping family breadwinners find work, a better salary or return on their goods.
• Provision of public services is transformed to make them global public goods for the global good.

Broadband Targets for 2015:

The Broadband Commission has set four clear, new targets for making broadband policy universal and for boosting affordability and broadband uptake

• Target 1: Making broadband policy universal. By 2015, all countries should have a national broadband plan or strategy or include broadband in their Universal Access / Service Definitions.
• Target 2: Making broadband affordable. By 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces (amounting to less than 5% of average monthly income).
•  Target 3: Connecting homes to broadband. By 2015, 40% of households in developing countries should have Internet access.

• Target 4: Getting people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in LDCs

The Broadband Challenge:

• Affordable Pricing: High monthly fee compared to dialup internet access.
• Security Risk: Higher security risk than dialup connection. A personal firewall is needed to protect your computer.
• Rural Connectivity:Not all phone wires are equipped for DSL service. May not be available in rural or remote areas.Not all cable TV networks are equipped for cable internet access. May not be available in rural or remote areas. 

Sources:

http://www.broadbandcommission.org/Documents/Broadband_Targets.pdf

http://en.wikipedia.org/wiki/Broadband_Internet_access

Global : 5 Trends in U.S. Mobile Gaming Industry

Mobile gaming has really taken off in the past few years, and the continued growth of the underlying forces — smartphone sales, tablet sales, mobile Internet subscribers and app downloads — all point to a bright future for the industry.

Market research firm Mintel recently published a report on the U.S. mobile gaming industry — we took a look to glean insight into the consumption of and current attitudes toward mobile gaming.

First off, the numbers are impressive. Mobile phone and tablet gaming sales in the U.S. reached $898 million in 2010, more than doubling since 2005, and Mintel forecasts that revenues will reach $1.6 billion by 2015. This prediction is in line with eMarketer’s report that mobile gaming revenues are expected to reach $1.5 billion by 2014. With increasing smartphone sales, a growing tablet market and increasing advances in mobile device and game development, this industry is sure to get more interesting in the coming years.

Here are five key takeaways from Mintel’s report. Let us know your thoughts on the future of the mobile gaming industry in the comments below

1.     The Freemium Model Has Potential:

One of the biggest tasks in marketing a mobile game is to figure out which revenue model to use: free (ad-supported), freemium (free download with in-app purchase options) or paid (one-time fee for a full-featured app).

The report points out that, on average, potential revenue for freemium apps outweighs paid apps. Mintel Senior Analyst Billy Hulkower writes:

“Apple enabled in-app purchases from its app store in the fall of 2009, allowing many developers to utilize the “freemium” model, in which the app is free to the user and the game can be enjoyed as is, or enhanced with additional virtual goods. In-app purchases include additional characters, enhancements, powers, and game play levels. Where a paid game may generate revenue from the sale price of the game from $0.99 to about $2.99 or more, a freemium game can actually earn greater revenues in the long run due to its potential ongoing stream of revenue from in-app purchases. Games tracked across 21 iPhone game makers in June 2010 by market research firm Flurry earned on average $14.66 per user per year. GigaOm estimated in November 2010 that 34% of the top 100 grossing apps (all types) on the iPhone used the freemium model.”

While the freemium model seems great in theory, paid games currently rule the industry, having brought in a whopping 92.5% of U.S. mobile gaming revenue in 2010, according to eMarketer. On the other hand, eMarketer predicts that revenue from free, ad-supported games will only amount to a measly 12.3% by 2014, not a significant growth. With ad-supported games lacking umph in coming years and freemium apps providing higher potential revenue for publishers, it seems natural that publishers will continue to innovate into the freemium space in hopes of increasing profits. As a result, we may see a balancing out of revenue between paid and freemium apps in coming years.

2.     Tablet Gamers Download & Play More

Mintel found that 38% of tablet gamers play five or more hours per week, while only 20% of mobile phone gamers play that much. Tablet gamers even download more paid and free games.

Only 7% of those surveyed reported owning a tablet, but the findings make sense. Tablet devices have larger screen sizes and more computing power, while still being portable, potentially making them a better fit for gaming than mobile devices.

Forrester expects tablet sales will grow from 10.3 million units in 2010 to 44 million units in 2015 — growth that should further drive the mobile gaming market.

For now, console gaming still rules, having captured 75% of gaming revenue in 2011, followed by online, PC and mobile gaming.

3.     Users Crave Multiplayer & Social Features

A multiplayer mobile game is often a re-branding of a multiplayer game for the PC or console. Most mobile games are single player mobile games perhaps with artificially intelligent opponents. Multiplayer functionality is achieved through:

• Infrared
• Bluetooth
• GPRS
• 3G
• Wi-Fi
• AI
• MMS
• Wireless LAN

“It is almost a cliché to discuss the importance of integrating social networking components into gaming, but consumers have not lost interest,” writes Hulkower. “They also enjoy multiplayer games for their competitive and social aspects. Despite their digital medium, ‘social’ and ‘multiplayer’ signify human interaction. Young adults, in particular, have grown up with computers, Internet, instant messaging/texting, and Facebook, and want to connect while gaming.”

There have been a few developments in the industry that foretell advances in social features. Apple’s social network gaming platform Game Center, launched in September 2010, enables gamers compete with each other and follow leader boards. Likewise, another platform, OpenFeint, enables iOS and Android gamers to play across platforms.

The success of multiplayer-only games, such as Words with Friends, also points towards consumer interest in mobile gaming with others

4.     Word of Mouth Is the Key Driver for Game Downloads

Mintel’s report highlights a number of stats that tell the story of how users hear about new mobile games. Whether in the physical or digital worlds, word of mouth is the glue that holds it all together. Here are the top ways that gamers hear about new mobile games:

• From Friends: More than 50% of mobile game-playing adults learn about new mobile games from friends and family.

• In App Stores: About 40% of adults learn about new games within app stores, where hot lists, rankings and user reviews are highlighted.

• On Social Sites: 25% of adults hear about new mobile games via social media sites.

Besides these methods, there are also a number of well-trafficked mobile gaming sites that highlight and review games, chronicle new releases and publish cheat codes and tips.

Mobile game firms and publishers should take note and focus on obtaining visible app store distribution, having a social media presence and gaining coverage on mobile gaming sites.

5.     Hit Games Can Come From Anywhere

While EA Mobile, GameLoft and Glu Mobile rank highest in mobile game publisher revenue, hundreds of independent game developers have released smash hits. For example, Rovio’s Angry Birds was the most downloaded game in Apple’s App Store in 2010 — in June, the game hit 1 million downloads per day.

While larger publishers, like EA Mobile and GameLoft, leverage high-profile licensing deals and partnerships, upstart developers — such as Popcap Games and Zynga — have built a name for themselves from the ground up, proving that innovative ideas can take smaller development firms far.