North American Multimedia Messaging (MMS) Markets

Frost & Sullivan, July 2003

Interoperability Issues Prove to be a Stumbling Block for Growth

Seamless interoperability of multimedia messaging services (MMS) in North America is challenged by the presence of multiple network technologies and varied business interests among major mobile network operators (MNOs). Technological issues relating to the global system for mobile communications (GSM) and code division multiple access (CDMA) standards have also compounded this problem. The MNOs, having relinquished billions of dollars on short message (SMS) servicing revenues because of the interoperability issue are not taking any chances on MMS. They have addressed most of the technical issues. Also, as MMS is based on open Internet Protocol, they are in the process of adopting an open communications strategy to ensure smooth functioning across all networks.

This research on the North American MMS markets has segmented the market based on two key applications: Person-to-Person (P2P) and Application-to-Person (A2P). The study includes critical analysis of emerging revenue and business models as well as competitive profiles of key market participants.

Availability of Packet Networks - Key Factor for the Success of MMS

Contrary to popular belief, MMS services do not require 3G bandwidths and can be successfully deployed over existing networks such as general packet radio service (GPRS) and cdma2000 (1xRTT). A good example is that of J-Phone, a leading MNO in Japan and a pioneer of MMS. Since 2001, the company has been offering picture and video messaging services in Japan over its 2G digital networks and has been highly successful with incremental monthly average revenue per unit (ARPU) of approximately $12.

The foundation for MMS in North America has been laid with GPRS and 1xRTT networks already in place. This widespread availability of existing packet networks is critical for the future of mobile data services and is likely to boost the market penetration of MMS.

An Ideal Delivery Platform for New and Converged Applications and Services

The evolution of MMS from basic long-text to graphics, pictures, audio, and video will constantly present the market with new applications and continue to encourage the adoption of MMS and thereby, increase the ARPU. MMS is not just a service but a framework that enables the development and deployment of numerous services that emerge along the natural evolution of the market, says the analyst.

With the increase in IP adoption by the mobile communications world, IP-based MMS is creating an ideal platform for new and converged applications and services. For instance, Push-to-Talk (PTT) services over GPRS have the potential to emerge as a valuable application, as they can be sent through MMS. As devices and consumer preferences evolve, MMS can enable a suite of revenue-generating applications and drive mobile data revenues. The analyst concludes, The market for MMS is in its infancy today, hampered by the lack of applications, devices, and services. However, phenomenal growth is likely 18 months from now, in 2005, as MNOs expedite the rollout of MMS and MMS-enabled handsets.

1 EXECUTIVE SUMMARY

  Introduction & Overview
      1. Overview of MMS
      2. Market Segmentation
      3. Forecast Methodology

  Research Highlights
      1. Summary of Findings
      2. Summary of Conclusions

  2 TOTAL MMS MARKET

  Overview of MMS
      1. Evolution of Mobile Messaging
      2. Introduction to MMS
      3. Market Challenges
      4. Market Drivers
      5. Market Restraints

  Strategic Market Analysis
      1. Significance of MMS
      2. The MMS Ecosystem
      3. Business Models
      4. Revenue Models
      5. Strategic Recommendations

  MMS Market Forecasts: 2002 to 2009
      1. Forecast Methodology
      2. Total MMS Market Forecast
      3. P2P & A2P MMS Market Breakout

  Frost & Sullivan Awards
      1. Frost & Sullivan 'Product Innovation & Differentiation' Award: Summus
      2. Frost & Sullivan 'Product Line Strategy Leadership' Award: Infospace

  3 PERSON-TO-PERSON (P2P) MMS MARKET

  Strategic Analysis & Market Forecasts
      1. P2P MMS Applications
      2. P2P MMS Pricing Model
      3. P2P MMS Market Forecast

  4 APPLICATION-TO-PERSON (A2P) MMS MARKET

  Strategic Analysis & Market Forecasts
      1. A2P MMS Applications
      2. A2P MMS Pricing Model
      3. A2P MMS Market Forecast

  5 COMPETITIVE PROFILES

  2002: Market at a Glance
      1. Competitive Analysis

  Mobile Network Operators
      1. Verizon Wireless (USA)
      2. Cingular Wireless (USA)
      3. AT&T Wireless (USA)
      4. Sprint PCS (USA)
      5. Nextel Communications (USA)
      6. T-Mobile USA (USA)
      7. Bell Mobility (Canada)
      8. Rogers Wireless (Canada)
      9. TELUS Mobility (Canada)
      10. Microcell PCS (Canada)

  MMS Infrastructure Vendors
      1. Nokia
      2. Ericsson
      3. LogicaCMG
      4. Openwave
      5. Comverse

  Application Platform Providers
      1. Taral Networks
      2. Summus
      3. LightSurf Technologies
      4. Run Tones Inc.
      5. InfoSpace Inc.

  

List Of Figures

Chapter 2

Total MMS Market: Industry Challenges Ranked in Order of Impact (North America), 2003-2009
Total MMS Market: Market Drivers Ranked in Order of Impact (North America), 2003-2009
Total MMS Market: Market Restraints Ranked in Order of Impact (North America), 2003-2009
Total MMS Market: MMS Handsets, Subscribers and Penetration Rates (North America), 2002-2009
Total MMS Market: Total Mobile Subscribers, MMS Subscribers and Penetration Rates (North America), 2002-2009
Total MMS Market: MMS Monthly Subscriber ARPU and Revenues (North America), 2002-2009
Total MMS Market: P2P and A2P Subscriber Market Overlap (North America), 2002-2009
Total MMS Market: P2P and A2P Market Subscriber Breakouts (North America), 2002-2009
Total MMS Market: P2P and A2P Market Revenue Breakouts (North America), 2002-2009
Total MMS Market: P2P and A2P Market ARPU Breakouts (North America), 2002-2009
Total MMS Market: P2P and A2P Market Average Monthly Traffic Breakouts (North America), 2002-2009

Chapter 3

P2P MMS Market: MMS Handsets, P2P Market Subscribers and Penetration Rates (North America), 2002-2009
P2P MMS Market: Total Mobile Subscribers, P2P Market Subscribers and Penetration Rates (North America), 2002-2009
P2P MMS Market: P2P Market Monthly Subscriber ARPU and Revenues (North America), 2002-2009
P2P MMS Market: P2P Total Monthly Messages and Content Messages (North America), 2002-2009

Chapter 4

A2P MMS Market: MMS Handsets, A2P Market Subscribers and Penetration Rates (North America), 2002-2009
A2P MMS Market: Total Mobile Subscribers, A2P Market Subscribers and Penetration Rates (North America), 2002-2009
A2P MMS Market: A2P Market Monthly Subscriber ARPU and Revenues (North America), 2002-2009
A2P MMS Market: A2P Total Monthly Messages and Content Messages (North America), 2002-2009

Chapter 5

Competitive Analysis: Mobile Market Metrics for Top 10 Leading MNOs (North America), 2002

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