Qualcomm and Teleepoch Enter Into a 3G CDMA Subscriber Unit License Agreement, October 6, 2007

MTN chooses Cambridge Broadband Networks for multi-service wireless network in Rwanda, October 6, 2007

Brazilian government to publish 3G bidding rules soon, October 6, 2007

KTF 3G service suffers from technical problems, October 6, 2007

Argentina’s Personal lunches 3G service in Rosario, October 6, 2007

Russia has it's first 3G network, October 6, 2007

AT&T could drop Alcatel-Lucent as 3G mobile network supplier, October 6, 2007

Enea Extends License Agreement with ZTE for 3G Handsets, October 2, 2007

LG to unveil premium handsets in Brazil, October 2, 2007

KTF 3G subscribers doubled in less than 3 months, October 2, 2007

3G policy in India will be non-uniform, October 2, 2007

- previous news

Brand owners move into mobile services

July 31, 2005

Third party providers are currently receiving less than 30% of mobile service revenues globally according to a new report 'Mobile Content & Services 2005-2010' from Informa Telecoms & Media. Traditionally the mobile network operator has controlled the billing relationship with the customer, and has played a leading role in partnering with content providers. Now however, this picture is evolving as brand owners and media companies start to leverage the consumer base they have developed through consistent marketing investment and branding over the years. Increasingly the strength of the media company's content and its associated brand are seen as decisive factors in bringing a mobile offering to market.

The report reveals that there are a number of issues that are creating a more favourable environment for third party content providers. These include:

- Mobile network operators opening up their content portfolios

- Increased acceptance by consumers of subscription packages

- Strong brands driving consumers to search out content away from operator portal.

The mobile data value chain has seen some radical changes in 2005, not least the emergence of 3G networks as a commercially viable factor in a number of major European markets. 'Traditional mobile value chain players such as the network operators have been joined by a raft of new entrants from other markets.

It is these companies that currently present the most immediate threat to the control mobile network operators

and to the control that they can exert over mobile consumers' says Richard Jesty, lead author of the report. Whereas mobile operators were originally seen as pure service providers, the continuing growth of mobile services revenues has seen them assume the role of content providers as well, often as lead partners with third party service providers.

From 2005 onwards, operators will begin to come under pressure from brand and media owners adopting a virtual

network operator (MVNO) model. Here it is the brand owner which assumes the lead role, aiming to leverage the direct billing channel to generate revenue streams from its content portfolio.

As a result, consumers wanting to locate and acquire their mobile games or music direct from non-operator sources will likely move more toward a 'browse and buy' scenario, meaning that the need to find web content will become more important.