19. 6 The advent of these global OTT players is not necessarily bad news for telecom operators Increase in data traffic Higher ARPU iPhone user US 1.63 ARPU of the average customer Western Europe 2.45 Source: Booz & Company
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21. 8 Telcos should get into digital content, but this is not where the money is for them Mobile revenues in selected regions & countries, by type (2009) Projected market size $7bn Apps sales (2013E) $40B $75B $82B $21B $162B $37B $18B Content 1% 2% 4% 5% 5% 6% 10% 12% 8% 13% 9% 10% P2P messaging 18% 9% $1.6tr 10% Telecom industry revenues (2013E) 8% 11% 7% Other Data 40% 37% 23% Voice A drop in the bucket 0.4% Apps sales represent only of overall projected telecom revenues in 2013 Middle East India USA Korea China Japan Africa Source: Informa Global Content Forecasts 2008-2013, and Mobile Operator Revenues Update 2010 Q2. Source: Booz & Company
22. 9 The real economic value of digital media for telcos is to strengthen their core business through… Increasing ARPU Reducing churn Acquiring new customers
23. 10 In the Middle East, global competition is weakenedby specific factors… The regional opportunity is very small compared to other regions Global players do not have access to local / Arabic content Entertainment & media market by region (US$ billion) They might be restricted from operating in the region (licensing & regulatory constraints) Source: PWC
24. 11 Better access to local content … and telcos have an opportunity to leverage unique differentiating levers Billing relationship Telecom operators’ differentiating levers Particularly relevant in the Middle East
53. Targeted and local contentExamples of partnerships Strong portfolio of Content Provider partners Supplier account management program Health content provider DMC developed their own iPhone application