mms – where are we today?

MMS MMS –– Where are we today?Where are we today?

Giulia ArenaSr. Associate Director, Messaging

Bell Mobility

VMA ConferenceOctober 25, 2004

BCE BCE –– Who We AreWho We Are

Bell Canada Enterprises:• Canada’s largest communications company• 26 million customer connections

– Local telephone, long distance, wireless communications, Internet access, satellite television, data and video services

• Through Bell GlobeMedia hold interests in some of Canada’s leading media organizations including CTV, The Globe and Mail and TQS, a French-language network operating in Quebec

• 2003 revenues were over $19 Billion• Intention to migrate 100% of our core traffic onto a national IP

network by 2006, offering by that time a full suite of IP-based services to our customers

• The strategy:– Delivering integrated communications to customers– Setting the IP standard in the industry– Driving performance through Innovation – Simplicity –

Productivity

Bell MobilityBell Mobility

Bell Mobility:• Canada’s largest mobile provider• First Canadian company to launch a high-speed wireless network• More than four and a half million wireless subscribers• From January 2003 to today data revenues have doubled• Industry leading churn

________________________________________________

Competitors:• Today: 2 GSM (Rogers Wireless and Microcell) & 1 CDMA (Telus

Mobility)• Future: 1 GSM (assumes approval of Rogers Wireless

purchase of Microcell) & 2 CDMA (Telus Mobility and Virgin Mobile Canada)

• Note: VMC is a joint venture between Virgin and Bell MobilityCanada:• Year-end penetration projected to be 41 – 42%• Over 1 million net additions per year

StatisticsStatisticsMultiMedia Messaging Services (MMS): Allows for the transmission of multimedia content such as images, audio and video clips.

• Digital camera sales are growing at more than 60% per year1:– 11 M (2000) to 50 M (2003)

• Camera phone sales are also growing – they have more than doubled each year since they launched:– Less than 1 M in 2000 to nearly 70 M in 2004

• Digital Camera Forecasts:– 2004: mobile phones to add more new cameras to the mix than digital

and film combined– 2005: ~ 320 M digital cameras will be sold; 78.99% will be embedded

in mobile phones• InfoTrends2 predicts that 150m phones with built-in cameras will be

sold worldwide in 2004, making up about 25% of all cellphone sales. In more advanced markets such as Japan, this level rises to about 80%. Globally, camera phone sales are set to reach 656m units in 2008. (The Guardian, July 5, 2004)

(1) http://mobileimagingreport.com/Mobile_Imaging.htm

(2) The Guardian, July 2, 2004

The % of MMS phones as a % of overall mobile phone sales is increasing.

Bell Mobility MultiMedia MessagingBell Mobility MultiMedia Messaging

Picture and Video Messaging: Show and Tell the Story

www.bell.ca/myvideosor www.bell.ca/mypictures

How the Service WorksHow the Service Works

SHOOT• Launch the phone’s camcorder or camera by selecting the ‘camera’ button

on the main keypad• Select the camcorder option for videos or select the camera option for

pictures• Press the ‘camera’ button again to start filming or to take a picture.SAVE• The total number of videos and pictures the phone can store depends what

resolution the camera is set at and the length of the videos e.g. the Samsung A680 can store up to 17 – 15 second – videos if there are no pictures stored on the device

SHARE• Select the ‘share’ option located on the bottom left of the screen• Enter the mobile numbers and/or e-mail addresses of photo recipients• If desired, record a 10 second voice memo• If desired, enter a text caption up to 125 characters in length• Preview the video/ picture before selecting ‘send’• The first time you ‘share’ a picture/ video, you are prompted to create a

password. This password is also used when you log on to the On-line Album

• Videos/ pictures are sent using WAP

Shoot, Save, Share … it’s that simple.

• Bell Mobility offers picture and video messaging to its customers via a non-standards based multimedia solution.

NonNon--Standards Based Multimedia MessagingStandards Based Multimedia Messaging

Mobile phone features offered: • Inbox/ Outbox• Add voice or text memo prior to share• Set up visual caller ID using a video/ picture stored in the phone• Send picture/ video to up to 10 mobile phone numbers and/or

email addresses at one time• Create a screensaver using a video/ picture stored in the phoneOn-line web-based personalization:• On-line album (up to 300 pictures/ videos)• Send pictures/ videos from on-line album• Album management:

- Folders within album- Picture enhancements include following capability: lighten/

darken subject, crop image, antique imaging, black and white, soft focus, comic bubble (add caption), cartoons

BMC has differentiated itself by offering a non-standards based solution.

PricingPricing

$0.50

$0.75

$0.50

$0.75

Per Picture Fee (after 10 pictures sent)

$0.50

$0.75

53 KB

200 KB

N/A

N/A

Picture(640x480)

Video

$5 Mobile Browser BundleIncludes 10 pictures, Includes 10 pictures, 1 video1 video

$3.15

$10.75

53 KB

200 KB

$0.05/KB

$0.05/KB

Picture(640x480)

Video

Pay Per Use

Total Cost

Approx KB size

Transport Fee

Media Type

After 2 Month Promotion

PROMOOffer

• 2 months FREE $5 1X Mobile Browser bundle• Includes 10 free pictures and 1 free video each month

• The same picture or video can be sent to any number of recipients without incurring incremental charges!

Pricing has been kept simple and affordable.

MMS MMS -- The SituationThe Situation

MMS has developed well:• The user experience is

improving• Consumers are catching on• Increasing network speeds• Interoperability is increasing• Improvements in hardware• New applications and services

Challenges remain:• User interface still challenging

at times• Billing still confusing• Fragmented standards

– Legacy support– Interoperability– OMA/3GPP2 & 3GPP

standards still being defined• Legislation may impact uptake• Privacy concerns• Decisions around objectionable

content• Low cost phones

MMS has improved greatly… however work remains to be done to maximize the opportunity.

Carrier ObservationsCarrier Observations• Carriers are counting on MMS to be a key driver behind

increased data revenues and ARPU• Opportunity for increases in:

– airtime – revenue – service differentiation; and – customer loyalty

• Some learnings from the SMS space • Customer education and ease of use are key to uptake• Rich content will drive usage:

– Consumer applications e.g. postcards, World Cup alerts, maps, mobile dating, blogging, print fulfillment

• Digital rights management will determine extent of content– Verticals e.g. police forces, real estate, insurance, sales

• … but peer-to-peer messaging will continue to be the big driver behind MMS as it has been with SMS

MMS will be a key revenue driver for carriers.

Driving GrowthDriving Growth

Marketing:– Simple user interface– Easy to understand and

affordable pricing – Extension of service to legacy

handsets– Communicating the service

using lay person’s terms (stay away from the technology)

– Compelling applications

Technology:– Interoperability (point-to-point or

via gateway):• Between networks for peer-to-

peer messaging• With external servers such as

email and voice mail• Offering to PrePaid and

PostPaid customers• Extension of service to legacy

handsets– Embedded cameras– Little or no latency in service– Successful transcoding of

messages– Spam prevention– Roaming support– Self provisioning– Phone memory size

Key factors in driving growth are:

A combination of marketing and technology factors will drive the

success of this service.

SummarySummary

In conclusion:

• The % of MMS phones as % of overall mobile phone sales is

increasing

• Early time to market via a non-standards based solution can assist

carriers in a competitive environment

• Keep:

– the marketing message simple (“Show and Tell the Story”);

– the user interface simple (Shoot, Save, Share); and

– pricing simple and affordable.

• MMS has improved greatly… however work remains to be done to

maximize the opportunity

• MMS will be a key revenue driver for carriers

• A combination of marketing and technology factors will drive the

success of this service.

The future of MMS is exciting and offers fantastic opportunities to all!

Questions?

mms – where are we today?

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