2009-04-06
Color Ring Back Tone -- A Gold Mine in Mobile Market
www.huawei.com
HUAWEI Confidential
CONTENTS
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RBT
A Proven Gold Mine in Mobile Market
RBT Service Operation Experiences Technical Solution HUAWEI Achievement
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What s RBT (Ring Back Tone) Service?
calling
Caller hear song/music/melody before callee picking up Communication enrich people s life, RBT enrich people s communication
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RBT was deployed world wide
Europe North America Verizon Wireless T-Mobile US AllTel Sprint Nextel Cingular Wireless Bell Mobility Vodafone Telefornica Orange 3 Sweden T-Mobile 3 UK SFR France TMN TIM Asia China Mobile China Unicom SKT NTT DoCoMo KDDI AIS Telkomsel Global Telecom FarEast Tone Hutchinson Hutch Thailand TATA Reliance Aktel Bangladesh Millicom Laos Mobilink Pakistan ViBo Taiwan AirTel India Telstra Oceania
CIS, M Asia MTS Megafone Vimpelcom
AM/Telcel Mexico Telefonica Moviles Latin America
MTN Nigeria Orange Cameroon Maroc Telecom Mobinil Egypt MTN Swaziland Emtel Mauritius Orange Cote d'Ivoire Africa
Turkcell STC Syriatel MTC Kuwait Wataniya Maldives Mobily Umniah Yemen Tel Middle East
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Threefold Increase - IDC WW RBT Market Forecast
WW RBT Subscribers 2006-2010
T
WW RBT Service Revenue 2006-2010
Total Market CAGR 31.5%
Japan - CAGR 18.5% Asia-Pacific - CAGR 23.8% MEA - CAGR 46.1% USD $M
Total Market CAGR 31.3%
800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0
12000 10000 8000 6000
Japan - CAGR 14.2% Asia-Pacific - CAGR 21.8% MEA - CAGR 47.7% Europe - CAGR 46.1%
Europe - CAGR 46.7%
4000
Latin America - CAGR 93.0%
Latin America - CAGR 95.3% North America - CA GR 47.5%
2000
North America - CAGR 52.9%
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
Digital Music global revenue reaches $32.2B at 2010 in Gartner!s forecast. And global RBT revenue reaches $10.2B in 2010 in IDC!s forecast. More than 30% DM!S revenue comes from RBT. IDC Forecasts 677 million CRBT Users WW at YE2010 RBT, a gold mine which can bring you immense profit and enhance your brand.
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Entry to Digital Music
My My Music Music Video Video My My Full-track Full-track My My Ring Ring Tone Tone My My RBT RBT
Personal RBT Library
My My RBT RBT
Personal Music Library
RBT Platform
Digital Music Platform
Mobile Phone will be the most popular music player soon.
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Successful RBT story in Asia ! CMCC
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China Mobile (1H 2006):
128.4 million RBT subscribers 46.8% penetration rate
China Mobile RBT Development
RBT Subscribers RBT Revenue RBT Penetration
25.88% 13.3% 46.8%
430 million US$ total RBT revenue in 2005. !New telecom services are crucial to the development of our company. The subscriber"s ARPU are decreasing. All operators throughout the world are trying to maintain and even increase ARPU by deploying new mobile data services. The RBT service we deployed is actually not a huge investment, but contributes 8 RMB (1 USD) to our ARPU.# Mr. Wang Jianzhou, CEO of China Mobile
32%
e l i b o M a in h C n i S M S r e t f a S A rV e l l i k d n 2 RB T i s t h e
9.2% 128.4M 90.1M 430M$ 330M$ 14.6M 16.3M$ 2004 1H 27.2M 106.3M$ 2004 YE 57.92M 172.5M$ 2005 1H 2005 YE 2006 1H
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Successful RBT story in Asia ! TTSL, India
Reliance: The largest CDMA operator and largest PTO in India
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Lucent/Alcatel switch based solution Available for both postpaid and prepaid subscribers 1 M subscribers capacity in the 1st phase and 2M for 2nd phase Launched on 31th May 2006 Activate RBT subscribers reach 1.2M by Dec. 2006
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Successful RBT story in Middle East ! Syria Tel
16000 14000 12000 10000 8000 6000 4000 2000 0
Day 1 Day 2 Day 3
Subscriber Increase
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20% penetration in the first 5 months,
Interconnecting with Siemens switch based solution Available for both prepaid and postpaid subscribers Users! Self-Management Access: IVR, WEB
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Successful RBT story in Middle East ! STC, Saudi
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The biggest mobile operator in Saudi Arabia RBT system capacity is 3M Available for both post paid and prepaid subscribers Launched service on 24th Mar. 2007 RBT active subscribers reach 100K with 20 days
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Successful RBT story in Middle Ease ! Umniah, Jordan
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1st operator to launch RBT in Jordan 71K activate subscribers by the end of 2006 Name RBT service as Aghanilak
IN based solution Available for both prepaid and postpaid subscribers Users Self-Management Access: IVR, WEB
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Successful RBT story in Africa ! Emtel, Mauritius
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1st operator to launch the RBT service in Mauritius Penetration rate reached 15% in TWO weeks Interconnecting with Siemens switch based solution Available for both prepaid and postpaid subscribers Users! Self-Management Access: IVR, WEB, SMS
86% users subscribe to the service via SMS
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Successful RBT story in Africa
Orange Cameroon
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The first operator in Cameroon launched RBT Service RBT system capacity is 50000 Launched service on 16th Mar. 2007 RBT active subscribers grows up to 49000 with 4 weeks.
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Successful RBT story in Africa
Madacom, Madagascar
The first operator in Madagascar launched RBT Service
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RBT system capacity is 50000 Launched service in Sep. 2006 RBT active subscribers grows up to 20000 by Dec. 2006.
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CRBT Service Performance Stars
Country
Vietnam Thailand Ghana India Thailand India Colombia Saudi Arabia Pakistan Russia Turkey
Operator
RBT Subs (M)
9.01 6.03 0.9 5.8 1.6 2.45 0.64 3.77 2.2 3.6 3.8
Total Subs (M)
24 28 6.0 52 15 21 5 19 20 43 36
Penetration
37.5% 21.5% 15.0% 10.5% 9.5% 11.7% 12.9% 19.8% 11.1% 8.4% 10.6%
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CONTENTS
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RBT
Proven Gold Mine in Mobile Market
RBT Service Operation Experiences Technical Solution HUAWEI Achievement
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Challenges of RBT service
1
Consumer perception
An altruistic service, self-experience is not good l Non-functional service, dispensable
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Network support
Which technical solution? l How to integrate with other subsystem?
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Wider chasm of RBT product
Penetration 30% Trial& Initial period Growing period 10% Mature period Lifeline Time
2
How to maintain RBT platform?
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Content
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Quantity
Quality l Type
Service tariff
Tariff structure l How much for each part?
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How to share content revenue with CP/SP
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Open Sesame - Four Golden Keys for RBT
1
SIMPLE Experience $ Simple, Interesting Propagandize RBT Concept
2
CROSS CHASM Attract Subscriber More subscriber more revenue
3
PROFIT Increase RBT ARPU high RBT changing rate, low churn rate
4
WIRELESS MUSIC Expand RBT to wireless music, develop related content service
Trial phase
Initial phase
Growing phase
Mature phase
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Four Golden Keys ! manage complexity
" Value chain establishment " CP/SP cultivation " CP/SP management
CP/SP
" Content Acquisition " Customer requirement analysis
Content
" Brand value " Brand Promotion
Brand
Access
" Easy usage " Friendly UI " Multiple access ways
CP/SP
" Collect & analyze customers appeals " Help customers resolve problems
Customer care
Revenue
Tariff
Access
Promotion
Advertising
" Tariff structure " Pricing principle
" User Experience " Discount & Bonus " Events
" Type of media " Content of Ads
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RBT is fashion - AIS advertisement TVC (2004)
Key Message:
It s cool to let anyone calling you hear the song or special message, instead of traditional one. The !MORE" Songs you change, The !MORE" inin-trend you are..
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RBT is common - AIS advertisement TVC (2005)
Key Message
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Waiting is more fun if you use Calling Melody Calling Melody are for everyone.
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Content" From Quantity to Precision
Few high quality is enough
Enrich content for young generation
Enrich content for common customer & dig individual requirements
Prioritize pop music and natural sounds Few quantity Simple to use: Basic content browsing & setting features
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Increase quantity. Focus on Pop music and interesting human voice Content package: music box
Research content requirement: Special RBT for Special You Content push: Based on consumer behavior analysis RBT Workshop to encourage DIY
Trial phase
Initial phase
Growing phase
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Tariff structure of RBT service
Typical RBT tariff structure
Content Fee
RBT revenue breakdown of CMCC
78%
Browsing Fee
18% 4%
Monthly Fee
Monthly Subscription Contents IVR Airtime
Most revenue comes from Monthly fee, while content fee has minimum impact on total revenue l IVR fee for content browsing is considerable
Principle: l Share most content revenue with SP/CP. (CMCC:SP/CP = 15%:85%) l Keep the mainstream (monthly fee & IVR fee) of revenue.
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RBT service brand is helpful
A service brand including a logo and a name.
China Mobile Name & Logo: Color Ring China Mobile named & registered RBT service as !Color Ring" in 2003. This forced the competitor # China Unicom name his RBT service as !Cool Ring". Now !Color Ring" became common name of RBT service, only a few people knew Unicom s !Cool Ring"
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A sound & impressive brand helps leading operator to screen follower An elegant brand helps to materialize this intangible service and improve customers perceive
Service brand promotes operator s brand at the same time
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CONTENTS
l
RBT
Proven Gold Mine in Mobile Market
RBT Service Operation Experiences Technical Solution HUAWEI Achievement
HUAWEI Confidential
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RBT call flow
MSC based solution
HLR identifies the called party as CRBT subscriber and transfers the CRBT mark (SS_CODE) to MSC
HLR
IRAQ O_MSC routes the call to T_MSC as usual
Call established
Phone picked up
T_MSC
O_MSC
O_MSC initiates another call leg to CRBT platform who will play the CRBT
CRBT heard O_MSC by the caller disconnect with CRBT
CRBT
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RBT Platform Architecture
Switching Network
IP (intelligent peripheral )
RBT Call Control
User Profile
Content File
Service management and operation platform
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Logical Function Diagram
MSC Internet SMSC WAP GW WAP App USSD SERVER USSD App 3rd party NE 3rd Party App Provided by 3rd party IVR App Web App SMS App
Open API based on XML SOAP
IN
Billing
Self-management for end-user
Service management for Corp. administrator
SST TCIP/IP Charging module CDR
Web Interface
Service management for customer care Service and resource management for system administrator content management for content provider SNMP User Profile Content library
Provisioning module Network management for network administrator
Mediation/ CRM
GUI
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RBT system network structure
NMS SP Billing SMSC SCP
SNMP
HTTP
HTTP
FTP
SMPP
Real-time
IRAQ
IP Portal
User Profile
Content library
E1 ISUP WAN
MSC
MSC
MSC
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RBT service features
u u u u u u u u
Multiple end user accesses: WEB/IVR/SMS System/CP/customer care WEB portal Setting RBT based on date/time/week/duration Setting RBT based on caller/caller group Mixture RBT RBT copy RBT content/service present ##
IRAQ
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CONTENTS
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RBT
Proven Gold Mine in Mobile Market
RBT Service Operation Experiences Technical Solution HUAWEI Achievement
HUAWEI Confidential
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History of Huawei RBT
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First domestic RBT system launched in China Mobile Shanghai in May, 2003 Five months later, first overseas RBT system launched in AIS, Thailand In less than three years#
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Main Vendors in the market
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Worldwide Application
Russia Ukraine Romania Moldova Mongolia Bulgaria Portugal Uzbekistan Turkey Syria Tajikistan Morocco China Jordan Kuweit Afghanistan Algeria Libia Iran Pakistan Bhutan Mali Bangladesh Saudi Arabia Hong Kong Senegal Sudan Vietnam Benin India Gambia Togo Yemen Laos Philippines Liberia Thailand Ghana Nigeria Cote d'Ivoire Sri Lanka Cambodia CameroonUganda Equatorial Indonesia Guinea Congo Tanzania Madagascar Mauritius
Mexico
Dominica
Colombia Ecuador Peru Brazil Paraguay
Botswana Swaziland
" Huawei RBT is serving for 1/2 top 10 operators and 1/3 top 50 operators. " Huawei has provided RBT platform for more than 200 operators over 70 countries since 2003. " More than 421 million users and the whole capacity exceeds 529 million. " 5 years experience help you achieve success of RBT marketing just in 1 step.
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Key customers for RBT
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Easy Interconnection with Other Vendors
China Mobile China Unicom Mauritius MT Vietnam Vietel Madagascar Orange Guinea SOTELGUI Kampuchea CAMGSM Uganda Telecom Morocco Telecom China CMCC China Telecom Russia Rostelecom Russia MTS Indonesia ExcelCOM Kenya Safaricom Madagascar MADACOM Syria Syriatel
IN
China Mobile China Unicom Bengal TMIB Russia MTS Singapore Singtel Saudi Arabia STC Nigeria Starcomm
China CMCC China Telecom Thailand AIS China Unicom Colombia Movistar Brazil OI British BT Ethiopia ETC
CRBT
ortugal Optimus India TATA
India TTSL Thailand TRUE Philippine sun cellular Madagascar Orange Guinea SOTELGUI Kampuchea CAMGSM China Mobile China Unicom
Syria Syriatel
Thailand AIS China CMCC
SMS
Thailand AIS UAE ETISALAT China Mobile China Unicom Tanzania Mobitel
Indonesia ExcelCOM Kenya Sarfaricom Madagascar MADACOM
Thailand AIS China Mobile Colombia Movistar Chile Movistar
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Rich experience for swap project
Operator China Mobile Beijing China Mobile Chongqin China Mobile Guangxi China Mobile Heilongjiang China Mobile Guangdong China Unicom Guangxi Etisalat, Suadi Turkcell, Turkey Original Vendor Wisepot (HK vendor) ITL (HK vendor) SHT (Chinese vendor) Qinghua (Chinese vendor) NEC Jingpeng (Chinese vendor) Ericsson ECT Swap Date 2003 2003 2004 2005 2006 Q2 2006 Q3 2007 Q1 2007 Q1 New vendor Huawei Huawei Huawei Huawei Huawei Huawei Huawei Huawei Swap Full swap Full swap Full swap Full swap Full swap Full swap Full swap Full swap
All these operators believes RBT will make a fortune for them and they finally found that selecting a right vendor is the key issue to make them going forward!
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Benefits for Operator
Ensures continuous future roadmap evolvement and development Minimize risks with rich implementation experiences Share the business experience of many successful cases around globe
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Roadmap
Normal RBT
CRBT
RBT Evolution
Digital Music
Digital Media
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Thank You
www.huawei.com
