mobile apps: where are you in the value chain?

“We Accelerate Growth”

MOBILE APPS – WHERE ARE YOU IN VALUE-

CHAIN?

MOBILE MONDAY PRESENTATION

August 8, 2011Frost and Sullivan

ICT Practice

“We Accelerate Growth”2

Mobile Applications

Source: Frost & Sullivan analysis

“Mobile App Market: $25 Billion by 2015”- World Mobile Applications Market 2011 -

“Android To Surpass Apple's App Store In Size By

August 2011”-TechCrunch 2011 -

“More than 15 billion apps have been downloaded

from the revolutionary App Store and more than

425,000 apps are available”- Apple 2011-


Mobile Broadband Market – Where are we?


• One of the lowest fixed line voice &

fixed broadband penetration rates

in the region – this limits the avenues

through which the general population

can connect to the internet

Subscriber Numbers Forecast

Indonesia (% of population)

2.3%

• At the end of 2009, Indonesia already

had more wireless broadband users

compared to fixed users, with 24.8

million wireless broadband users

and 1.4 million fixed broadband

users


Mobile Broadband Market – What are the Key Drivers?


• Very high mobile penetration rate ~59% – leading to an increasing user base

who has the basic capability to access data services

• Low voice ARPUs – forcing operators to look for new revenue opportunities

• Low cost feature & smart phones – the availability of low-cost phones along

with creative smart-phone promotions making it possible for majority

Indonesians to get connected online

• Introduction of low cost tablets – new low-cost tablets backed by good

internet connectivity can help revive & provide momentum to schemes like „One

Laptop per child‟

• Social Networking Trend – Indonesia has the second biggest Facebook user

in the world with more than 36 Mn users and it is also one of the largest Twitter

Global Markets with an estimated 19% of internet population utilizing the service


Mobile Broadband Market – How far are we?

As of 2010, the Indonesian market had a wireless broadband penetration rate of approx.

2.3% and is expected to reach around 23% by 2015

3.8 6.2 8.2 9.7 10.5 10.8 1.4 3.8

8.1

15.6

27.5

45.7

0.1

0.2

0.2

0.2

0.2

0.2

2010 2011 2012 2013 2014 2015

Large screen Small screen Multi screen

Mobile Broadband

Subscribers - Indonesia (Mn)

Total data revenues in 2010 represented approximately 33% of total wireless

revenues. This share is expected to reach around 54% by 2015



Regional Smartphone Sales – Outlook

1.20.3 0.7 0.7 0.2

18.7

4.7

6.6

2.6

11.2

Indonesia Malaysia Thailand Singapore Philippines

2009

2015

Smartphone sales (Mn)

2009 & 2015

60.44%

46.41%

89.81%

24.99%

58.06%CAGR 2009-2015

Indonesia shows the highest growth in the ASEAN Region for both total

mobile device & smartphone sales with 7.6% and 58.1% respectively

Indonesia’s smartphone market leads growth in ASEAN with expected

18.7 sales Mn by 2015



43%

11%

15%

6%

25%

Indonesia

Malaysia

Thailand

Singapore

Philippines

7

Smartphone Market – Indonesia is leading in ASEAN Region

Smartphone sales – 2009 Est. Smartphone sales – 2015

39%

9%22%

22%

8%

Indonesia

Malaysia

Thailand

Singapore

Philippines

By 2009 Indonesia has 1.2 Mn smartphone sales and projected

to reach 18 Mn by 2015 or ~43% of ASEAN market



Mobile OS share – Symbian & BlackBerry are head to head

• Blackberry & Symbian OS

are on top two places in

Indonesia with market share

around 38% by Jun 2011

• While in Asia market

Symbian still sits on top with

52% share

52.99%

10.70%

9.64%

7.62%

6.20%

4.55%

38.38%

3.90%

38.64%

2.25%

0.62%

7.50%

SymbianOS

Android

BlackBerry OS

Samsung

iOS

Sony Ericsson

Source: StatCounter.com 2011; Frost & Sullivan analysis

Asia

Indonesia


Why Smartphone? – Push your content & ads’ “eyeballs”

Traditional Media… …More “eyeballs”….. …Higher revenues

Source: Frost & Sullivan analysis, various sources

1internetworldstat.com 2011

2 facebook.com 2011

Content matters little if potential consumers have no idea it exists…

Internet: 2.1 Bn1

Facebook: 350 Mn2

Twitter: 75 Mn2

LinkedIn: 50 Mn2

http://simplyzesty.com/wp-content/uploads/2010/12/Screen-shot-2010-12-15-at-09.55.36.png


The value chain: Before the rise of “smartphones”

Mobile

platform

Applicati

on dev.

Transacti

on mgt.

Handset/

device

providers

Mobile devices


Consumers

Network

element

Customer

careBilling Marketing

Service provision

Key access to consumers

AdvertiserContent

providerAggregator

Telco

operator

Service delivery


The rise of “smartphones” & changes in the ecosystem

Advertiser Agency Aggregator

Content pools:

Media, Apps,

Games

Content delivery

Mobile

platformApps

Stores

Mobile

Webs


Handset/device

providers

Telco

operator

Handset & Operator

Key access to

consumers


Where YOU will be NEXT?


Mobile

platform

Apps

Stores

Mobile

Webs

Advertiser

Agency Aggregator

Handset/device

providers

Telco

operator


Understand your market: Social Network – Indonesia

Indonesia is the 2nd largest “facebook” user after the United States

United States 155,388,440

Indonesia 36,493,440

United Kingdom 29,729,640

Turkey 28,455,820

India 25,726,380

Mexico 24,336,060

Philippines 23,458,980

France 21,981,740

Italy 19,205,260

Germany 18,487,320

Top 10 Facebook Users

1

3

5

4

6

7

9

8

2

10

Top 10 Sites


Google.co.id


Understand your market: Where smartphones are used?

Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT , Apr 2011

5,013 smartphone users

Frost & Sullivan analysis

29%

32%

50%

53%

54%

66%

72%

73%

77%

87%

93%

School

Library

Airport

At doctors

At café

Social gathering

Work

Restaurant

In a store

Commuting

Home


Understand your market: Most frequent activities

81%

77%

68%

48%

Browsed the internet

Used a search engine

Used an App

Watch videos





Understand your market: The most visited sites

77%

65%

46%

43%

38%

Search engine

Social networking

Retail websites

Video sharing

General consumer website





“Understand your market, know

where you are in value chain, then

monetize your apps”


About Frost & Sullivan

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Dewi Nuraini

Corporate Communications, Frost & Sullivan

Phone : (+6221) 571.0838 / 571.3246

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mobile apps: where are you in the value chain?

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