Mobilemonday Global Summit KL Bruno Bensaid 20080519

MobileMonday Global Summit 2008 – Kuala Lumpur – May 19, 2008 1 Bruno Bensaid1

MobileMonday Global Summit 2008 – Kuala Lumpur

May 19, 2008

Bruno Bensaid

Innovation in the China Mobile Industry

MobileMonday Global Summit 2008 – Kuala Lumpur – May 19, 2008 2 Bruno Bensaid

My profile

• Established in China since 1997.

• VP Business Development for Ventech (China), VC fund focusing on China TMT

companies. 100% sub of Paris-based Ventech, French venture fund focusing on TMT and biotech. Ventech was elected best VC of the year (2007)

• Founder of Mobilemonday in shanghai (2006). Running 150-people events monthly covering all angles of the industry.

• Launched and managed Wireless businesses in Shanghai from 2002-2006 (In-

Fusio, Faith Inc, Freever, Open-Plug), consulted to European Telecom operators

• Worked with Cisco Systems @ APAC HQ in Singapore (1999-2002)

• Reachable on linkedin, msn, skype,

twitter, facebook and….phone!


What’s New?

Telco reorganization, 3G, Mobile TV…


China Telecom Industry to Restructure

• Emergence of 3 national champions, with fixed and mobile capabilities (Government-led reorganization).

To be confirmed:

• China Railcom to be merged into China Mobile

• China Netcom (fixed line operator) to be merged with China Unicom (GSM network)

• Unicom's CDMA business to be merged with China Telecom (largest fixed operator)

• TD-SCDMA (China 3G home grown standard) launched with at least one operator (China Mobile). Other standards (WCDMA and/or CDMA2000) will likely co-exist too.


• Large scale commercial trial of home-grown technology TD-SCDMA is currently conducted by China Mobile in eight

major cities, including Beijing, Shanghai and Guangzhou.

• China Mobile to provide 20,000 trial users with handsetsand data cards free of charge. 40,000 handsets to be rolledout to paid customers soon.

• Yet, the ecosystem is not healthy. Commit, a TD-SCDMA design house invested by Nokia, TI, LG (etc) went bankrupt(May 2008). Government backing to TD-SCDMA is weak.

• Meanwhile, Edge deployed by China Mobile in tier-1 cities, CDMA1X (Unicom) deployed in key provinces. LTE trialed.

3G finally coming, but the ecosystem is weak


• DMB-T and CMMB main standards adopted by SARFT (State Administration of Radio, Film and Television) for mobile TV.

• 6 mobile TV licenses - SMG, CCTV, Beijing TV, Guangdong media group, Renmin Guangbo Diantai, China Radio Int’l.

• CMMB used for mobile phones and data connected devices, with interaction and billing. DMB-T to be used on mobile display terminals (transportation) without need for interaction.

• CMMB trialed in Beijing, Shanghai & Shenzhen. 90% of Beijing covered, 20 channels offered. Devices from Lenovo, ZTE, Innofidei etc shipping. SMG launching dongles in Shanghai.

Mobile TV standard Also given a Thumbs Up


Market Update

China MVAS growth fueled by commoditized services


Mobile Subscribers growth only getting stronger

• 575 Mil Mobile Subscribers (March 2008). +9.4 Mil new mobile subscribers in March.

• Net loss of 1.4 Mil subscribers of fixed operators (326 Mil).

• Mobile penetration ~ 45%

• ~ 60 Bil SMS sent per month (+29% YoY)

• 210 Mil Internet subscribers (end 2007), ~ +6 Mil new suscribers / month


Wireless value-addedservices accounted for 25.7% of China Mobile'stotal income in 2007, withringback tones, WAP and MMS services all continuingto grow.

And so is MVAS growth

* Source China Mobile


• Mature, commoditized services are driving growth, fueled by operators’ walled garden strategies.

• The Most Acclaimed applications and services are not the most innovative: IM, Digital Newspaper, short novels/ebooks and Entertainment MVAS dominate (music, logos/pictures, small videos)

• Operator walled garden strategy successful. End 2007, China Mobile had 12.81 mln active Fetion (IM) users, 23.55 mln paid mobile newspaper subscribers, and 34.56 mln Wireless Music Club VIP members.

But Innovation does not drive Growth, Mature Services Do


• 由《通信产业报》主办的“2007中国手机客户端软件TOP50评选”。Out of 50, the top 20 cover:

• 1.手机QQ IM Entertainment• 2.掌上书院 Mobile ebooks

• 3.PICA IM• 4.PingCo IM Micro-Blogging

• 5.ucweb优视浏览 Mail / browsing• 6.百阅 Mobile ebooks• 7.飞信 IM

• 8.空中-Opera2.0 Browsing• 9.手机MSN IM

• 10.百灵鸟音乐客户端 wap platform• 11.手机大头 IM Entertainment Browsing

• 12.掌讯通 Mobile ebooks Entertainment• 13.掌媒 Mobile ebooks

• 14.维信 Mobile Widgets• 15.胖葫芦 Mobile Widgets

• 16.网秦手机杀毒 Anti-virus • 17.凤凰移动台 Entertainment

• 18.MM狂下载 Entertainment• 19.V8书客 Mobile ebooks• 20.贝多 IM

2007 Most acclaimed Mobile Applications


• By end 2007, Fetion (China Mobile IM service) had over 73 million registered users with about 67 million addition in 2007, but only 12.8 million are active users.

• Despite solid growth, real usage is actually down (10% only of H2’2007 additions are really active, comparedwith 30% in H1’2007).

• Reflects the limited growth potential of Fetion, whichmost of users use for free SMS communication betweenPC and mobile phone (compared with Tencent’s QQ complete suite of services using IM as a pillar).

Yet, too little innovation could lead to failure


Mobile Innovators in China

Making the Most of 2.5G networks


Mobile 2.0 in China is Late but Youth are driving usage

• Widsets (Mobile Widgets) reached “only” 3 mil users by end 2007, in a ~ 50-60 Mil Active Mobile Internet users population (the real mobile internet potential population is 3x higher). Hard to call it a success!

• But outlook is positive. Recent research indicate Youth will drive mobile 2.0 usage:

• 31% Youth used mobile phones to access the Internet in the past six months (40.2% with College students, the highestusage among all populations surveyed)

Source: CNNIC April 2008


Political Reasons

• Payment mechanisms with operators are mature and varied (SMS, WAP etc), but made difficult to implement if Service Providers / Content Providers have not reached a “critical mass”.

• Walled gardens is a real threat. Once popular, a service can virtually be monopolized and run by China Mobile and kick early entrant out.

• Late entrants Innovators clearly discouraged to operate independently or face heavy losses in the first years (leveraging too much on ad rather than paid services)

Barriers to Innovation - I


Technical and Marketing Reasons

• slow speeds are slowing down innovation and adoption (though the infrastructure is massively upgraded to Edge or CDMA 1x, and TD-SCDMA now trialed on large scale)

• Flat rates or quasi-flat rates are back, but not communicated well enough. Data packages are confusing

• No or little service is bundled with data packages (except overly expensive Blackberry data package and service, a possible failure)

Barriers to Innovation - II


Cultural Reasons

• Competitors don’t cooperate in China! - Most popular web and mobile platforms are still proprietary (“silo mentality”). When API is open, it is limited in scope.

• Few platforms enable mashups and interoperability.

• Older netizens generation is a BBS generation (anonymous). Moving towards SNS (public) is slow, but Younger generation, self-conscious and open, will drive adoption of new services and social networks.

Barriers to Innovation - III


• Tencent still leading the train of innovation, leveraging on their integrated suit of free and paid services, across mobile and online platforms (and in process of opening their QQ SDK).

• Baidu, online search leader (80% market share) successfully launched its wap suit of services and is following with tons online/mobile (just launched an IM client, Baidu Hi). Expect strong content innovation in 2008-2009, as search is the entry point to other services

Established Innovators


• Mobile Advertising established in the landscape (but no real expectation on revenue until 2010).

• IM feature a must, in proprietary format or open source.

• VoIP calls, call-back and push-to-talk (Vivame, Bedo)

• Click-to-call very popular (after search results or banner based, like with MadHouse)

• Photo/video sharing and geo-tagging (more recent)

• Content compression widely adopted

• Mobile Clients, like GGlive (3G.cn) enable rich content streaming and TV-like experience.

• Free content with advertising (Datuu, 5MM etc).

2007 Adopted Innovations


• For SNS, location-aware features will be key (POI, discovery of friends in the vicinity etc), using GPS or cell ID (Bedo, Gypsii, Mimo etc).

• Information organized into CHANNELS:

o Customized Search, pre-arranged or pre-fetched search content

(Datuu, Roboo, Cgogo etc).

o 3rd generation mobile browsers (client-server) enabling content

categorization and behavioral features, helping prioritize content

downloaded (Dratek, Datuu etc).

• M-commerce should emerge (NFC payment trial in Shanghai, or wap-based m-payment, like with 3G.cn), But mobile widgets and RSS still niche (Panghulu…)

2008 Innovation Trends


Tencent

Undisputed MVAS leader


Tencent’s IM “QQ” is China’s youth “email” and much more

Courtesy

• Integrated offer of service leveraging on a rich IM client deployed over 300 mil accounts (84% market share).


In large cities, such as Shanghai, Beijing, Guangzhou, Shenzhen,penetration has reached over 100%. Subscribers growth is now occurring in 2-tier and 3-tier cities as well as rural townships.

Tencent’s QQ Labs at the cornerstone of innovation

Courtesy of

• In-house R&D (QQ labs) enabling diversification into casual games, CtoC , Entreprise IM, Blogs, wap portal, bookmarks, video download, online and mobile ad serving etc.

Courtesy


Bedo.cn

Pure-IP based location aware SNS


• Communication

o Mobile instant messaging

o Push to talk

• Content

o Mobile blog/spaces

o Music/software sharing

• Location

o Local friend finder/matcher

o Geo-tagged contents

o Local events

o Using GPS or free cell-ID

Content

Location

Communication

bedo.cn is a location based mobile SNS providing the

following IP-based services:

The Essence of Mobile 2.0 Chinese Innovation


Bedo.cn - Mobile Interface

26

� “Radar” – Find who is nearby. Support both GPS phones and non-GPS

phones (via Cell-ID)

� Find what happened around (blogs,

pictures, events etc)

� Click to chat, or push-to-talk;

� One to one, or one to many;

� Phone to phone, or phone to PC

� Chat with MSN/Yahoo friends

� Picture sharing and geo-tagging &

mobile blogs

�Click buddy’s icon to chat/voice talk instantly

�View her latest blog updates, sharing newest findings

�Local blogs are displayed as a star

�Click star to view the blog, which could be in text, photo, voice format

�Local weather & nearby POI advertisement can be displayed automatically in the bottom area

�Can view the internet comments/ratings of the POI service provider


Bedo.cn - Website Interface

• Find who is nearby

• Roaming to any

place through a

nation wide map

• Read local blogs,

events

• Post, reply &

comment

• Update location

through the map

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Bedo.cn - PC Client Interface

• Desktop users can also use

a PC client for multimedia

instant communications with

mobile users

• Talk/chat/share with their

mobile friends

• Users can learn:

o presence & distance of

their buddies

o coming up local events

o local UGC blogs etc

28


Text chat, and Voice Talk!

• Chat between Pep, MSN, and Yahoo users

• Push to talk between GPRS/wifi phones, between mobile and PC(only 0.6KB/second)

• One to one, or one to many

With advanced voice compression algorithm,

smartphone users can chat, push-to-talk, and share

pictures/videos...


Free mobile blogs & spaces

• Picture and video sharing

• Personal spaces &

virtual homes in the map

• RSS subscription

• Music/software sharing

Users can enjoy free mobile blogs & spaces,

content sharing etc


5th Media Mobile

Idle Screen mobile content channels


Basic

Slide Through

Click Through

人姓名 TrackID 可帮助Rolling bar for News, Product

Tips

Content

Channel

A new media, sliding on idle screen


SportsSports ConsumersConsumers Life StyleLife Style FashionsFashions

MusicMusic TravelTravel HomeHome FoodFood

Well-defined Media Rich channels, updated automat. or manually


ArtsArts GamesGames CarsCars Night LifeNight Life

MoviesMovies MenMen WomenWomen FinanceFinance

User Defined Channels, fed with partners content


“爱的契机”席琳�狄翁2008世界巡回演唱会日期:2008.4场馆:上海体育场、北京工人体育场票价(RMB): 300, 500, 800, 1000, 2000, 3000立即预定

Reservation

1-click to call...

1-click to call...

Ticketing

1-click

to call

Content/ad to be shown

哆啦A梦大雄的恐龙官方授权手游小恐龙回到白垩纪的日本,途中经历的一系列精彩故事!画面精美且易上手、多种道具完美结合，经典再现电影故事情节。马上体验哆啦A梦神奇的百宝袋

NO1 胡彦斌 - 男人KTV铃音下载整曲下载NO2 韩雪 - 你不会知道铃音下载整曲下载NO3尚雯婕 -在梵高的星空下铃音下载整曲下载NO4王力宏 - 改变自己铃音下载整曲下载NO5金莎 - 不可思议铃音下载整曲下载

Music

Games

Free Content Download, Ticket Selling, Promotional activities


Roboo

New Generation Mobile Search Service


“UGC”-based and Channel-based Search

12 Mobile Search Channels

ringtones; songs/music; wallpapers/screensavers; pictures; video; games; software; hardware; pages;

eBooks; news; stocks; weather/local life

• Personalized Ad: display proper ads by matching query

with contents, plus phone characteristics, city, popularity, user profiles (gender, interests…).

• Innovative: user participation (input comments on

search results, upload contents onto search engine!!!)

“human-centered” PopRank algorithm:

• user modeling, user comments / scoring

• matching of user queries with user profiles / phone

characteristics

• content popularity


Roboo Search Channels Overview


Datuu

Fully Automated Suite of Services


New Generation Browsing and Search

• Choice of 200 most popular and up-to-date websites (appearing in browser and search results)

• Content Filtration - browser and search engine remove unwanted material and separates text from pictures into two individual pages


• Integrated search, stream/download and play-the-track user experience. Datuu acting as a proxy, not storing songs

• Songs ranked by popularity.

• High compression (from 3Mb to ~500Kb)

• Creation of playlists on the fly

Search-to-listen mobile music download


MTI

Location-based hardware solutions


Healtcare and safety location-based Services

• MTI has developed an LBS platform and a cell Capture®

technology and algorithm to catch roaming position without

GPS and Carriers support. It has been used in the Stand-

alone device, Kare® and Smartcard®, to support a LBS

service in positions of vehicle, kid, senior, field-workers,

valuable assets, even pets…All devices are voice enabled

• MTI cooperates with local carriers for co-marketing Kare® and Smartman®, billing monthly fees

Smartman ® device


Kare®: Kid Tracking device

Regular alerts to parents’ phone

Dadhome

Localization Assistance

Hands free speaker Mic.

Localization reports sent by the child

Localization of the child at any time based on Cell ID

Emergency Key (calls pre-sent emergency number)

24x7 Customer service


Kare II®: Device for the elderly

子女家庭电源开关

紧急求助拔销

服务菜单

WAP/Internet

多功能滚轮

收音机

免提喇叭

一按无忧键


3G.cn

Rich Media Mobile Portal


Mobile Portal with Rich Media Client

• No.1 wireless portal in China, +50 million registered users, and 8 mil daily users.

• Information in text and picture, from +50 channels

• GGLive: Live TV client (8 mil

downloads, 800k daily users)

• GGMusic: Music streaming rich

client, with search and playlist

management.

� 全方位的图文资讯，超过50个频道

分类专业提供

� 广泛深度的互动娱乐，包括社区、交友、游戏、3G秀等

� 高品质的影音享受，包括电视、音乐、电影、体育直播的流媒体提供


Most Innovative Rich Clients: GGLive and GGMusic

• Services include: live broadcasting, Movie, Video-on-demand and interactive entertainment

• GGLive also offers GG radio, live radio streaming• GGMusic: Online music Streaming, with automatic search

and download of lyrics of played song


Tokiva

MVNO for Global Travellers


An inexpensive suite of communication services

Inexpensive phone calls around the world, using call back. Also integrated with IM, phone book, SMS. The service was launched in September 2007, with over 700k registered users as of 01/2008.


Patent Pending Technology

Web / SNSService

Voice Service

MessagingService

Sharing Service

Billing Service

TorontoShanghai

GPRS Network

TokivaMobile Platform

VoIP Gateway

Data Channel

Voice Channel

InternetGPRS Network

USPTO Provisional Patent

#60/808560, 60/990996

USPTO Provisional Patent

#60/808560, 60/990996


Pang Hu Lu

Mobile RSS and Widgets


Panghulu enables users to subscribe for any digital content and play it on the mobile phone.

Free Internet Resources

RSS Feeds

Other Information Sites

Online Services

BBS

SNS

Search

Ticket Booking

…

Traditional Media

Publishing

BroadcastCMS

Automatic Conversion Gateway

Multimedia Compression Technology

Handset Adaptation Technology

A simple syndication tool, competing with Widsets


Business model: ad + revenue sharing

� Placing advertisements amidst free contents

� Sharing premium content subscription fee with CPs

� Sharing advertising revenue with online service providers and CPs


Thank You!

Bruno Bensaid - 布鲁诺 - email/msn: [email protected]

Mobilemonday Global Summit KL Bruno Bensaid 20080519

Business

Transcript of Mobilemonday Global Summit KL Bruno Bensaid 20080519