Speaking at the SMS Congress this week, Aviram Bogin, Director of Business Development, called on the mobile industry to co-operate more actively in creating a new business value chain for mobile data services. Bogin pointed to the success of China's Monternet SMS service, founded on the same principle as Japan's hugely successful iMode, as an exemplar of how European network operators can support third party application vendors by sharing costs and risks. This will ensure the creation of the compelling content - using existing and widely adopted messaging standards - that will drive the mobile data revenues carriers need to remain financially viable.
"Comverse has been closely involved with China Mobile Communications Corporation (CMCC) and has been hugely impressed with the success of its Monternet service. Publishing transparent business models and developer kits to third party application vendors has created a value chain in which all parties win: developers are properly incentivised to create applications, customers get the compelling services they crave, and network operators drive up Average Revenue Per User. It's a win-win-win scenario and one that can be implemented today."
The Monternet service, introduced in November 2000 by CMCC, provides a 'I-mode-alike' revenue-sharing business model for value-added mobile data services. Under the plan, CMCC has established a wide array of partnerships with Internet content and service providers to develop mobile wireless businesses around the SMS platform. It provides a common infrastructure, a common user experience, transparent business models and extends to co-marketing with its partners for products and services under the Monternet umbrella. Monternet traffic has enjoyed a huge growth rate and today accounts for around 30% of all SMS traffic in China. Compare this with WAP accounting for less than 10% in Europe!
Bogin continued, "The truth is that the mobile industry has not acted as a community but as a discrete set of vested interests. European carriers, although now much more sympathetic to content developers than even a year ago, have so far failed to build a similar value chain over here. There is a big difference between simply being open for business on the one hand and actively working with your partners to create revenues on the other. With commercial MMS services just around the corner, now is exactly the right time for Europe to start building a similar value chain. The experiences we are about to undergo and the lessons we will learn by providing Value Added Services over fast, always-on GPRS networks will be critical preparation for the success of 3G. I believe that the industry is now ready to act. But let's act as an industry."
If you would like to talk to Aviram Bogin, please contact:
Gillie Tennant/Vicky Steel
Tel: 01753 448836
Comverse, a unit of Comverse Technology, Inc. (NASDAQ: CMVT), is the world's leading provider of software and systems enabling network-based multimedia enhanced communications services. More than 390 wireless and wireline telecommunications network operators, in more than 100 countries, have selected Comverse's enhanced services systems and software, which enable the provision of revenue-generating value-added services including call answering with one-touch call return, short messaging services, IP-based unified messaging (voice, fax, and email in a single mailbox), 2.5G/3G multimedia messaging (MMS), wireless instant messaging, wireless data and Internet-based services, voice-controlled dialing, messaging and browsing, prepaid wireless services, and additional personal communication services. Other Comverse Technology business units include: Verint Systems Inc., a leading provider of analytic solutions for communications interception, digital video security and surveillance, and enterprise business intelligence; and Ulticom, a leading provider of service enabling network software for wireless, wireline, and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company.
For additional information, visit the Comverse web site at http://www.comverse.com
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