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Monday Feb 11, 2008

Off-Portal Content: $8 billion Market by 2011

New research from mBlox, the self-proclaimed world's largest mobile transaction network, and Cambridge University's Judge Business School forecasts that mobile carriers will more than double their off-portal entertainment revenue within three years. According to the study, off-portal revenue will jump from $3 billion in 2007 to $8 billion by 2011.

A report on the survey on Cellular-News.com says that the additional revenue will come largely from three emerging areas - WAP billing, sender-pays data and handset/subscriber data. Currently, most off-portal content revenue is derived from premium SMS, SMS and short-code rental.

For more details on the three growth areas and the breakdown by revenue, click continued.


WAP billing - $2.5 billion: Utilizing the power of the mobile Internet, WAP billing will create a universal two-click charging model with transparency, which protects the consumer and enables business models for a wide range of content including video, music, games and advertisements.

Sender-pays data - $1.7 billion: Sender-pays data is the key to unlocking the mass market for rich media to the mobile phone. This allows for revenues to be distributed throughout the value chain while protecting the consumer from unintentional bill shock. By increasing consumer trust through transparent pricing of downloadable content, the market will unlock additional revenues for the industry.

Handset and subscriber data - $1.5 billion: Handset and subscriber insight information will provide a series of data look-up services that will provide insight into the handset and its owner. These new services are crucial for the effective distribution of content and the development of many applications, including mobile advertising and location-based services. Carriers either have already or can infer these data, and can charge for them thanks to their indubitable value to content providers. The key to making these services available will be a suitable approach to privacy, which of course, will vary from country to country.



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