The OTT Opportunity for Operators

THE OTT OPPORTUNITY FOR OPERATORS THE SITUATION 2012 2014 19 BILLION APP MESSAGES SENT 50 BILLION APP MESSAGES WILL BE SENT DAILY 21 BILLION SMS MESSAGES WILL BE SENT STATS 17 BILLION SMS MESSAGES SENT OTT MESSAGING IS HERE TO STAY "CHINA MOBILE CANNOT BLOCK TREND AND MUST ADJUST ITS STRATEGIES IN ORDER TO ADAPT TO THE NEW SITUATION" XI GUOHUA, CHAIRMAN OF CHINA MOBILE "BY WORKING TOGETHER WE CAN MAKE THE OTT SER VICE PERFORM BETTER ON THE NETWORK. WE CAN ALSO HELP TO DIFFERENTIATE BLENDED SERVICES. WE'RE ALREADY WORKING WITH A NUMBER OF OPERATORS ON THIS" TALM ON MARCO, CEO OF VIBER THE REACH OF SMS STILL DWARVES OTT MESSAGING IN - 2012 THERE WERE VS 3.5 BILLION 586 MILLION USERS SMS USERS OF MESSAGING APPS THE OPPORTUNITY SMARTPHONE PENETRATION IS NOT AS HIGH IN COUNTRIES SUCH AS INDONESIA, MALAYSIA AND THE PHILLIPPINES, ASIT IS IN COUNTRIES AND REGIONS SUCH AS SINGAPORE, NORTH AMERICA OR WESTERN EUROPE 63% 44% 17% 28% 28% Singapore USA Indonesia Malaysia Thailand IN THE FEATURE PHONE PREDOMINENT MARKETS BRIDGE THE GAP TO NEEDS TO OTT PLAYERS FEATURE PHONES TO GET SIGNIFICANT MARKET PENETRATION. USE SMS TO BRIDGE THE GAP BETWEEN DATA-DRIVEN SERVICES ON SMART PHONES REGULAR TELCO SERVICES IN FEATURE PHONES. FEATURE PHONE USERS OTT >> 88888 THU >> (100% APPLICATION FEATURE PHONE USERS CAN USE OTT AND SUDDENLY COMMUNICATION IS APPLICATIONS TO SEND SM SES TO FAMILY HAPPENING WITH 100% OF THE MARKET AND FRIENDS USING SM ART PHONES RATHER THAN SELECTED SMARTPHONES. THE OPERATOR BENEFITS FROM INCREASED SMS TRAFFIC AND INCREASED DATA TRAFFIC AS MORE SMARTPHONE USERS EMBRACE OTT SERVICES. THE SOLUTION SAVVY MOBILE OPERATORS WILL REALIZE THAT to OTT SERVICES ARE HERE TO STAY BY INVOLVING A TRUSTED, VALUE-ADDED SERVICE PROVIDER, SUCH AS SILVERSTREET, OPERATORS CAN WORK WITH THE OTT PLAYERS IN A MANAGEABLE, PREDICTABLE AND PROFITABLE WAY silverstreet* For more info: http://www.silverstreet.com/ Ben Chong, Chief Strategy Offi cer, ben@silverstreet. com SOURCES: VIBER, 2013 I INFORMA TELECOMS AND MEDIA, 2012 http://english.peopledaily.com.cn/90778/8147347.html I http://www.thinkwithgoogle.com/mobileplanet/en/ Malaysian Communications and Multimedia Commission (MCMC) THE OTT OPPORTUNIT Y FOR OPERATORS, SILVERST REET WHITE PAPER, 2013