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Analysys Mason: Mobile Content and Applications Influence $80M of Mobile Spending

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September 24, 2010

Analysys Mason: Mobile Content and Applications Influence $80M of Mobile Spending

By Rahul Arora, TMCnet Contributor

According to a research study done by Analysys (News - Alert) Mason, mobile content and applications influence $80 billion of global mobile spending.

According to Analysys’ principal analyst, Jim Morrish, it is projected that $27 billion in annual voice, SMS and data revenue amount will “follow” users who wish to switch between mobile operators on the basis of an MCA proposition.

“The total value of rich content belies the total value of a rich content proposition,” said Morrish, who also leads Analysys Mason’s mobile content and applications research program, in a press release. “We estimate that a mobile network operator in a developed market that has a 35 percent market share of subscribers would lose 4 percent of its market share over the following five years if it halted investment in its MCA proposition.”

Due to indirect revenue effects of losing market share and corresponding voice, SMS and other data service revenue and investment done in MCA is nine times higher than the loss of direct MCA revenue.

MCA propositions are a long-term competitive difference that does exist and offers more opportunities for MNOs. Therefore, a MCA portfolio is more crucial than the direct revenue option.

Mobile companies will have the choice to understand the importance of exclusive content in a fixed environment and apply it to a mobile environment, and bring content and information across both fixed and mobile environments.

Many of the top players, including Google (News - Alert), may not benefit from this move, as MNOs will have to be contended with indirect revenue benefits.

“Some elements of an MCA proposition should potentially be regarded as loss leaders – “super applications” that are core to engaging the consumer,” said Morrish.

Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf

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