Mobile Instant Messaging Report 2009-2014: Services in the Social Network and iPhone era

• Publication date: November 2009

Report Details Mobile operators across Europe and Asia have been looking to deploy customised but co-branded mobile IM (MIM) services since the end of 2006 in an effort to cement their position in the value chain. This renewed interest is being driven by perceived benefits such as increasing data ARPU, service differentiation, churn reduction and building customer loyalty. However, one other factor in the equation is the phenomenal...

Report Details

Mobile operators across Europe and Asia have been looking to deploy customised but co-branded mobile IM (MIM) services since the end of 2006 in an effort to cement their position in the value chain. This renewed interest is being driven by perceived benefits such as increasing data ARPU, service differentiation, churn reduction and building customer loyalty. However, one other factor in the equation is the phenomenal rise of social networking across platforms, including mobile. IM capability is already being leveraged by social networks such as Twitter and Facebook across the fixed desktop internet, which could spill over onto mobile. In fact, just as social networking has been the main driver behind increasing consumer web access, adoption of IM will also grow along with social networks over mobile.

Across the value chain, factors that have to be taken into account include adopting the right business model, interoperability, service coverage, marketing, customer segmentation and handset usability. As shipments of handsets with embedded IM clients increase, packaging MIM as an intuitive user interface, for example, is difficult but imperative. Overcoming these barriers is critical to drive MIM forward from its current niche role into a mass-market service. How can these be overcome? This report will tell you.

This 150+ page report establishes the potential of MIM services in consumer and corporate markets worldwide, providing subscriber and revenue forecasts. We believe that if mobile operators play their cards right with respect to pricing and marketing strategies, MIM holds significant potential.

The report answers questions such as:

• What are the market trends for mobile IM, and the opportunities and challenges facing operators?
• What are the strategic options and critical success factors for deploying MIM services?
• What is the right business model for MIM services?
• How will the market evolve by 2011, including end-user uptake, revenue and handset forecasts by region?
• How can device usability and the management of multiple end-user "states" be improved to encourage service adoption?
• What can be learned from case studies of current MIM deployments?

Why you should buy this report

• Network Operators:
Gain insight into the implications of the various implementation strategies open to you. Discover which segments offer the biggest opportunities and how they can be targeted effectively.

• Device Manufacturers:
Learn about the available solutions in the market and network operators' demands. The report will help you plan for the hardware/software elements necessary to incorporate IM as a compelling user experience.

• IM service providers:
Find out what the opportunities are with mobile IM, and how you can maximise revenues in this space through the right partnerships.

• Application developers:
Discover how to develop the solutions needed by operators and how to package MIM as part of a wider service portfolio.
Consultants: Understand the dynamics of the MIM value chain and operators' plans in this area.

If you work for any of the above companies then you really need to get to grips with this concept before you get left behind. Act today and order your copy of this innovative report.

Global Mobile Telephony Industry

Table of Contents

Executive Summary:
E.1: Mobile IM. The development is proportional to Mobile handset Market and Fierce Competition.
E.2: Mobile IM could be the Revenue Generating Machine for Operators and Emerging IM Services.
E.3: Interoperability, Ubiquity and Pricing strategies are more likely to be the potential barriers.
E.4: The Rise of social Networking, MVoIP and further development in Mobile IM advertising services: Mobile IM as "The Next Killer combination".
E5: Asian Market is the future ground for growth of MIM.

1. Introduction
1.1 MIM. An Overview.
1.1.2 Comparison between SMS and IM.
1.1.3 Fact or Fallacy: MIM will cannibalise SMS.
Chart 1: Global SMS revenues (2006-2012)
1.2 Factors driving the growth of IM.
1.2.1 Emerging market trends
1.2.2 Increased market share for smartphones.
Table 1: Sales Growth in Smartphones.
1.2.3 Growth of Mobile Portals
1.2.4 Pre installed Mobile IM client in a majority of handsets.
1.2.5 The Evolution of 3G and 4G Services (4g LTE)
1.2.6 Active involvement in Mobile Social Networking
1.3 Distinguishing Features of MIM.
1.4 Fetion IM client from China Mobile
1.5 Aims and Objectives of this report
1.6 Significance of MIM
1.7 Layout and Structure of Report

2. Current Mobile IM Market: Basic Functionality and Deployment Strategies
2.1 Introducing IM into the Mobile world.
2.2 Strategies for offering MIM.
2.2.1 MIM on Wireless Application Protocol(WAP)
2.2.2 SMS Based IM.
2.2.3 Service Provider Driven or Fixed Line IM Model
Figure 1 Service Provider Driven MIM Features.
2.2.4 Operator Driven or Personal MIM Model
2.2.4.1 Benefits of Operator Driven MIM Models
Figure 2 Operator Driven MIM Features.
2.2.5 Operator Centric MIM Model.
Figure 3. IM Access point and IP Service Interface.
2.2.6 Basic and Advance Mobile IM Services
2.4 MIM Deployment and Connectivity.
Figure 4 IM Service Solutions.
2.4.1 Internet Messaging Gateways.
2.4.2 Public IM Services and Interoperability between Operators.
Figure 5 Connecting to Public IM Services.
2.5 MIM Servers.
2.6 MIM Messaging Clients.
2.6.1 Embedded MIM Clients.
2.6.2 Downloadable MIM Clients.
2.6.3 Pre loaded MIM Client Solution
2.6.4 Standards
2.6.4.1 OMA IMPS
2.6.4.2 OMA IMPS Client
2.6.4.3 IMPS Feature Description.
2.6.4.4 OMA IMPS Version 1.3.
2.6.5 GSMA Initiative for Personal IM.
2.6.6 SIMPLE (SIP for Instant messaging and Presence Leveraging Extension)
2.6.7 Comparison between IMPS and SIMPLE.
2.6.8 Jabber's IMPS Solution
2.7 Access method for Operator Enabled Mobile MIM.
2.7.1 Handset Compatibility.
2.8 Distinguishing Features of MIM over other Messaging Services.
2.8.1 Facilitate Search Ability.
2.8.2 Multi-Interaction.
2.8.3 Managing Contact Lists.
2.9 Fixed IM: An Overview.
Table 2. Active Users of Fixed IM Services.
Chart 3. Percentage of Fixed IM Users from US and the rest of the world
Table 4. Protocols Used in Fixed IM Services
2.10 Potential Drawbacks of Fixed IM
2.10.1 Fragmentation.
2.10.2 Interoperability.
2.10.3 Security
Table 5: List of Key Fixed IM Service Providers.
2.11 Brief Description of Fixed IM Service Providers.
2.11.1 AOL's AIM Service
2.11.2 Microsoft's MSN Messenger
2.11.3 Yahoo Messenger
2.12 Emerging Opportunities for Fixed IM players in terms of Partnerships.
Table 6. Partnership between Fixed IM Service Providers and Operators.
2.13 Additional Messaging Services.
2.13.1 MMS
2.13.2 EMS
2.13.3 SMS
2.13.4 Email

3. Regional Market Analysis: Adoption and Issues
3.1 Mobile IM Traffic Gaining Popularity.
Chart 4. Global MIM traffic
Chart 5. Global Number of MIM subscribers
Chart 6. Global MIM revenues
Chart 7. Global shipments of touch screen phones.
3.2 MIM Market in Europe.
3.2.1 Vodafone UK
3.2.1.1 Vodafone 360
3.2.2 Turkcell
3.2.1 NeuStar and Turkcell.
3.2.3 Bouygues Telecom
3.2.3.1 Bouygues Telecom and Miyowa Move Messenger.
3.2.4 O2
3.2.4.1 O2 Germany and NGM
3.2.5 Telefonica
3.2.6 France Telecom
3.2.6.1 Orange and Nokia
3.2.7 Deutsche Telekom
3.2.7.1 T Mobile and OZ Instant Messaging solution.
3.2.8 2012 Olympics could escalate Mobile revenues in Europe
3.2.9 3 and Windows Live Messenger
3.3 MIM Market in US and Latin America
3.3.1 AT&T (Cingular Wireless)
3.3.2 US Cellular
3.3.3 Virgin Mobile US
3.3.4 Verizon Wireless
3.3.5 Telefonica International
3.4 MIM Market in China and Russia
3.4.1.1 China Telecom (China Mobile)
3.4.1.2 China Unicom (Hong Kong Ltd)
3.4.1.3 Fetion's Instant Messaging Service.
3.4.2 MTS
3.4.2.1 MTS, Megafon and Vimpelcom, interconnected by Colibria.
3.5 MIM Market in Africa and Middle East.
3.5.1.1 MTN
3.5.1.2 Movius has chosen MTN
3.5.1.3 MXit
3.5.2 Etisalat
3.5.2.1 Etisalat and Colibria's IMPS
3.6 MIM Market in South Asia
3.6.1 Bharti Airtel
3.6.2 MTNL
3.6.3 Nimbuzz and Spice Mobiles
3.6.4 M1 Singapore and Colibria
3.7 Customer Segmentation and Demographics of MIM. Ref 2.19 onwards
3.7.1 Early Adopters
3.7.2 Youth
3.7.2.1 Teenagers
3.7.2.2 Young Professionals.
3.7.3 Enterprises
3.7.3.1 Alternative to Phone Call
3.7.3.2 Quick Response
3.7.4 Miscellaneous
3.8 Major Concerns in Adoption of MIM. Ref 2.11 onwards
3.8.1 Subscribers willingness to pay.
3.8.2 Operators Lack of Control.
3.8.3 ISPs interest in MIM
3.8.4 Potential Threat to Voice Calls.
3.8.5 Interoperability.
3.8.6 Barriers to mobile IM
3.9 Best Business model for MIM and Industries where MIM will prevail.
3.10 Potential for Handset Manufacturers

4 MIM: Value Chain Analysis and Strategic Options.
Figure 9
4.1 MIM Middleware Vendors.
4.1.2 Agile Mobile and Messenger
4.1.3 Colibria
4.1.4 Commontime
4.1.5 Comverse
4.1.6 Ecrio
4.1.7 Fastmobile
4.1.8 Followap Telecommunications
4.1.9 Intellisync
4.1.10 Jabber
4.1.11 Jataayu
4.1.12 Magic4
4.1.13 IXI
4.1.12 Messagevine
4.1.13 Openwave
4.1.15 OZ communications
4.1.16 Thumbspeed
4.2 Mobile IM Clients.
4.2.1 Adium
4.2.2 Digsby
4.2.3 Ebuddy
4.2.4 Fring
4.2.5 Miranda IM
4.2.6 IM+
4.2.7 Mundu IM
4.2.8 Nimbuzz
4.2.9 Pidgin
4.2.10 Trillian

4.3 Aligning the Mobile IM Value chain
4.4 Handset Manufacturers
4.4.1 Blackberry Curve.
4.4.2 IPhone 3Gs.
4.4.3 Motorola DEXT.
4.4.4 Samsung Omnia Lite.
4.4.5 HTC Touch 2
4.4.6 Benq S6
4.4.7 Samsung Tocco Lite
4.4.8 Nokia 6760 Slide
4.4.9 LG GW620
4.4.10 SonyEriccson Xperia
4.5 Operator side Strategies.
4.5.1 Capitalise on Brand Value
4.5.2 Partnership with competitors
4.5.3 Connectivity to existing IM community
4.5.4 Promote Chat Groups
4.5.5 Improved Operator Control
4.5.6 Fierce Marketing
4.6 Revenue Models and Pricing Strategies
4.7 Selecting the Right Vendor
4.8 Analyze the Customer Requirement
4.9 Interoperability Strategies
4.10 PTT and MIM

Chapter 5: MIM: Potential Framework and Market Exploitation.
5.1 Key factors related to the growth and success.
5.1.1 The role of Handsets
5.2 Pricing strategies
5.3 Network Reliance and Security
5.4 Interoperability Issues
5.5 Improved Mobile Devices and Mobile IM Clients.
5.6 Rapidly developing Asian Market
5.7 Integration of MVoIP
5.7.1 Skype
5.7.1.1 Skype Mobile
5.7.1.2 3 SkypePhone
5.7.1.3 I Skoot
5.7.2 Truphone
5.7.3 Fring
5.7.4 Talkonaut
5.7.5 Gizmo5
5.8 Amplified Mobile Social Networking.
5.8.1 Mobango
5.8.2 Brightkite
5.8.3 Zyb
5.8.4 Buzzd
5.8.5 Ovi
5.8.6 Itsmy
5.8.7 Gypsii
5.9 Advertising on MIM.
5.9.1 4th Screen and Ebuddy
5.9.2 Miyowa and Move messenger.
5.9.3 Meebo and its successful Ad platform
5.9.4 Mocospace to partner with InMobi.
5.10 2012 Olympics

6. Financial Forecasts for Mobile IM.
6.1 Global Subscriber Growth
6.2 Global Handset Shipment Forecasts
6.3 Data Revenues
6.4 Mobile IM Traffic Growth
6.5 Mobile IM Messaging Revenue share
6.6 Market Penetration for Mobile IM
6.7 Mobile IM Client Market share
6.8 Mobile IM server Market share
6.9 Mobile IM Customer Growth
6.10 ARPU growth with MIM
6.11 Operators Revenue share with IM service Providers
6.12 Market share of top public MIM service providers
6.13 Regional Forecasts for Mobile IM
6.14.1 Regional Forecast for US
6.14.2 Regional Forecast for Western Europe
6.14.3 Regional Forecast for Asia
6.15 Corporate MIM Revenues

7. Conclusion:
7.1 Features for MIM Adoption
7.2 Public IM vs. Personal IM
7.3 Asian Market to be fully exploited
7.4 Diminishing concerns and issues as the market grows
7.5 User Awareness could be the key for higher penetration
7.6 Key report findings 

Companies Listed

4th Screen
Adium
Agile Mobile
AOL
Apple
AT&T
Bebo
BenQ
Bharti Airtel
Bouygues Telecom
Brightkite
Buzzd
China Mobile
China Unicom (Hong Kong Ltd)
Colibria
Commontime
Comverse
Deutsche Telekom
Digsby
Ebuddy
Ebuddy
Ecrio
Etisalat
Facebook
Fastmobile
Followap Telecommunications
Fring
Fring
Gizmo5
Google
Gypsii
HTC
I Skoot
IM+
InMobi
Intellisync
Intellisync
Itsmy
IXI
Jabber
Jataayu
LG
Magic4
Meebo
Megafon
Messagevine
Microsoft
Miranda IM
Miyowa
Mobango
MobileOne (M1)
Mocospace
Movius
MTN
MTNL
MTS
Mundu IM
MXit
MySpace
NeuStar
Nimbuzz
Nokia
O2
Openwave
Ovi
OZ Communications
Pidgin
Samsung
Samsung
Skype
Sony Ericcson
Spice Mobile
Symbian
Talkonaut
Telefonica International
TeliaSonera
Thumbspeed
T-Mobile
Trillian
Truphone
Turkcell
Twitter
US Cellular
Verizon Wireless
Vimpelcom
Virgin Mobile
Vodafone
Yahoo
Zyb