Press release: Surge in Mobile Data Revenue Makes Case for Managed Service Model

The slowdown in voice revenues is putting increased pressure on operators worldwide to maximise returns from mobile data revenues

According to projections from Informa Telecoms & Media (www.informatm.com), mobile telecom revenues will reach US$1.1 trillion by 2015 with 40% of this figure (US$440 billion) coming from data services. The pressure on carriers to maximise returns from data revenues is therefore becoming intense.

Research commissioned by Motricity (NASDAQ: MOTR), a leading mobile marketing, advertising and data services company, reflects the findings of a survey run by Informa Telecoms & Media, which suggests that a growing number of carriers are interested in moving to a managed service model for data offerings.

From the results of a global online survey sent out to mobile, fixed and converged carriers globally, and interviews conducted with carriers in the Asia Pacific region, many operators see the managed service model as a way of managing risk effectively and being able to focus more on their core business. Risk management comes from limiting the upfront investment in infrastructure and being able to launch services more quickly. With the core competence of carriers not necessarily the development, delivery and management of services and applications, outsourcing such services can also give the operator more time to implement more directly customer-facing activities.

Key survey findings include:

  • Third-party management of mobile data services such as merchandising, marketing, advertising, business intelligence, segmentation and commerce solutions will enable operators to expand their subscriber service offering.
  • Top priorities for managed services include specialist services such as web discovery, advertising, content management and hosting/data-centre management.
  • When asked which data services were most important to carrier revenues currently, the results suggested messaging (35%) is perceived as the key driver, ahead of mobile internet (17%) and music (14%). The situation changes when asked what would be the most important data service in two years, with mobile internet (29%) and social networking (28%) overtaking messaging (26%) as the key driver for revenue growth.
  • The pressing need for innovation is critical for emerging markets due to the increased competitive, investor and subscriber demands placed on operators to manage churn, expand margins and improve the user experience.  In the Asia Pacific region, 82% of respondents either currently have a relationship with a managed service supplier around their data offerings or plan to do so within the next three years. Carriers from this region expressed the most critical functions for operator support as including content provider management, portal management and business intelligence leading to more strategic market segmentation.

“In the course of carrying out this research, it was interesting to note a common thread from operators – the need to launch new services within increasingly rapid deployment cycles but at the same time managing opex tightly. Quite a trick to pull off,” commented Nick Jotischky, principal analyst at Informa Telecoms & Media, “and one that makes the potential selection and management of a managed service supplier an even more strategic decision.

“Motricity’s solutions are the key to driving new revenue streams for operators worldwide,” said Ryan Wuerch, chief executive officer, Motricity. “Based on Informa’s research, coupled with Motricity’s aggressive international expansion plan, we are in a prime position to partner with operators in emerging markets. Our goal is to enable our partners to quickly monetize mobile data usage by providing the enhanced mobile Internet experience that their subscribers demand.”

Motricity is a leading mobile data services and solutions provider that partners with some of the world’s largest operators, including: AT&T, Sprint, Verizon Wireless, XL Axiata,, Celcom and Reliance Communications.

About Motricity

Motricity empowers mobile operators, enterprise brands and advertising agencies to maximize the reach and economic potential of the mobile ecosystem through the delivery of relevance-driven merchandising, marketing and advertising solutions.  Motricity leverages advanced predictive analytics capabilities to deliver the right stuff, to the right person at the right time.  Motricity provides their entire suite of mobile data service solutions through one, integrated, highly scalable managed service platform.  Motricity’s unique combination of technology, expertise and go-to-market approach deliver definitive return-on-investment for our mobile operator, brand and advertising agency customers. For more information, visit www.motricity.com or follow the company on Twitter @motricity.

About Informa Telecoms & Media

Informa Telecoms & Media (www.informatm.com) delivers strategic insight founded on global market data and primary research. We work in partnership with our clients, informing their decision-making with practical services supported by analysts.

© Informa UK Ltd 2011.  All rights reserved.

Media Contacts:

Informa Telecoms & Media                                                                                Motricity

Denise Duffy                                                                                               Jennifer Morgan

O: +44 (20) 337 73136                                                                                 O: +1 425 638 8375

M: +44 (0) 7500 3308 26                                                                               M: +1 206 931 4559

denise.duffy@informa.com Jennifer.morgan@motricity.com