le mobile20 bruno bensaid 20080408 public

Lemobile20 Conference - April 8, 2008 1 Bruno Bensaid1

Le Mobile 2.0 Conference

April 8, 2008

Bruno Bensaid

Innovation in the China Mobile Industry

Lemobile20 Conference - April 8, 2008 2 Bruno Bensaid

My profile

• Established in China since 1997.

• VP Business Development for Ventech (China), VC fund focusing on China TMT

companies. 100% sub of Paris-based Ventech (www.ventech.fr)

• Founder of Mobilemonday in shanghai (2006). Running 100+ people events monthly covering all angles of the industry.

• Launched and managed Wireless businesses in Shanghai from 2002-2006 (In-Fusio, Faith Inc, Freever, Open-Plug), consulted to European Telecom operators

• Worked with Cisco Systems @ APAC HQ in Singapore (1999-2002)

• Reachable on linkedin, msn, skype,

twitter, facebook and….phone!


What’s New?

The China Mobile Telecommunications reorganization


China Telecom Industry to Restructure

• Emergence of 3 national champions, with fixed and mobile capabilities (Government-led reorganization).

To be confirmed:

• China Railcom to be merged into China Mobile

• China Netcom (fixed line operator) to be merged with China Unicom (GSM network)

• Unicom's CDMA business to be merged with China Telecom (largest fixed operator)

• TD-SCDMA (China 3G home grown standard) launched with at least one operator (China Mobile). Other norms (WCDMA and/or CDMA2000) will likely co-exist too.


• Large scale commercial trial of home-grown technology TD-SCDMA is currently conducted by China Mobile in eightmajor cities, including Beijing, Shanghai and Guangzhou.

• China Mobile to provide 20,000 trial users with handsetsand data cards free of charge. 40,000 handsets to be rolledout to paid customers soon too.

• Meanwhile, Edge has been massively deployed by China Mobile in tier 1 cities, and CDMA1X (Unicom) deployed in key provinces. LTE (Long Term Evoluation) is being trialedby China Mobile.

3G finally coming


• CMMB standard adopted by SARFT (State

Administration of Radio, Film and Television)

• 90% of Beijing covered, 20 channels offered.

• Devices from Lenovo, ZTE, Innofidei and othermanufacturers will ship this April.

Mobile TV standard Also given a Thumbs Up


Market Update

China MVAS growth fueled by commoditized services


Subscribers growth only getting stronger

• 565 Mil Mobile Subscribers (Feb 2008), ~ +9 Mil new subscribers / month

• Mobile penetration ~ 42%

• ~ 60 Bil SMS sent per month

• 210 Mil Internet subscribers (end 2007), ~ +6 Mil new suscribers / month


In large cities, such as Shanghai, Beijing, Guangzhou, Shenzhen, penetration has reached over 100%. Subscribers growth is now occurring in 2-tier and 3-tier cities as well as rural cities.

And so is MVAS growth

* Source China Mobile


• The Most Acclaimed applications and services are by no means the most innovative: IM, ebooks (and News) and Entertainment MVAS dominate (music, logos/pictures, small videos)

• Operator walled garden strategy successful. End 2007, China Mobile had 12.81 mln active Fetion (IM) users, 23.55 mln paid mobile newspaper subscribers, and 34.56 mln Wireless Music Club VIP members.

• Wireless value-added services accounted for 25.7% of China Mobile's total income in 2007, with ringbacktones, WAP and MMS services all continuing to grow.

But Innovation does not drive adoption


• 由《通信产业报》主办的“2007中国手机客户端软件TOP50评选”。Out of 50, the top 20 cover:

• 1.手机QQ IM Entertainment• 2.掌上书院 Mobile ebooks

• 3.PICA IM• 4.PingCo IM Micro-Blogging

• 5.ucweb优视浏览 Mail / browsing• 6.百阅 Mobile ebooks• 7.飞信 IM

• 8.空中-Opera2.0 Browsing• 9.手机MSN IM

• 10.百灵鸟音乐客户端 wap platform• 11.手机大头 IM Entertainment Browsing

• 12.掌讯通 Mobile ebooks Entertainment• 13.掌媒 Mobile ebooks

• 14.维信 Mobile Widgets• 15.胖葫芦 Mobile Widgets

• 16.网秦手机杀毒 Anti-virus • 17.凤凰移动台 Entertainment

• 18.MM狂下载 Entertainment• 19.V8书客 Mobile ebooks• 20.贝多 IM

2007 Most acclaimed Mobile Applications


Mobile Innovators in China

Making the Most of 2.5G networks


• Widsets (Mobile Widgets) received a lukewarm reception. Only 2 mil subsin a year, in a ~ 50-60 Mil Active Mobile Internet users population (the real mobile internet potential population is 3x higher)

Mobile 2.0 in China…We Are Late


Political Reasons• Payment mechanisms with operators are mature, but difficult to implement if

Service Provers /Content Providers has not reached a critical size/mass.

• Walled gardens have taken their toll. Once popular, a service can virtually be

monopolized and run by China Mobile and kick early entrant out.

Technical and Marketing Reasons• slow speeds are slowing down innovation and adoption (though the

infrastructure is massively upgraded to Edge or CDMA 1x, awaiting TD-SCDMA)

• Flat rates or quasi-flat rates are back, but not communicated well enough.

• No or little service is bundled with data packages (except overly expensive

Blackberry data package and service, a failure)

Cultural Reasons• Most popular web and mobile platforms are proprietary (“silo mentality”). No

open platforms to enable mashups and interoperability.

• Older netizens generation is a BBS generation (anonymous). Moving towards SNS (public) is slow. Younger generation is not that shy though.

Barriers to Innovation


• Tencent still leading the train of innovation, leveraging on their integrated suit of free and paid services, across mobile and online platforms (and in process of opening their QQ SDK).

• Baidu, online search leader (80% market share) successfully launched its wap suit of services and is following with tons online/mobile (just launched an IM client, Baidu Hi). Expect strong content innovation in 2008-2009, as search is becoming a key growth area.

“Incumbent” Innovators


• IM is a must, in proprietary format or open source.

• IM/SNS enable VoIP calls, call-back and push-to-talk

• Click-to-call very popular

• For SNS, localization is a key feature, with GPS and cell ID (mandatory in absence of GPS).

• Photo/video sharing very popular.

• Content compression is widely adopted.

• Geo-tagging growing fast.

• Customized Search coming strongly

• Budding: Partial or full sharing capabilities, mashupswith other SNS and download services. M-commerce.

• But mobile widgets and RSS will take longer to pick up

Patterns of Innovation Emerge


Tencent

Undisputed MVAS leader


Tencent’s IM “QQ” is China’s youth “email” and much more

Courtesy

• Integrated offer of service leveraging on a rich IM client deployed over 300 mil accounts (84% market share).


In large cities, such as Shanghai, Beijing, Guangzhou, Shenzhen,penetration has reached over 100%. Subscribers growth is now occurring in 2-tier and 3-tier cities as well as rural townships.

Tencent’s QQ Labs at the cornerstone of innovation

Courtesy of

• In-house R&D (QQ labs) enabling diversification into casual games, CtoC , Entreprise IM, Blogs, wap portal, bookmarks, video download, online and mobile ad serving etc.

Courtesy


Bedo.cn

Pure-IP based location aware SNS


• Communication

o Mobile instant messaging

o Push to talk

• Content

o Mobile blog/spaces

o Music/software sharing

• Location

o Local friend finder/matcher

o Geo-tagged contents

o Local events

o Using GPS or free cell-ID

Content

Location

Communication

bedo.cn is a location based mobile SNS providing the

following IP-based services:

The Essence of Mobile 2.0 Chinese Innovation


Bedo.cn - Mobile Interface

22

� “Radar” – Find who is nearby. Support both GPS phones and non-GPS

phones (via Cell-ID)

� Find what happened around (blogs,

pictures, events etc)

� Click to chat, or push-to-talk;

� One to one, or one to many;

� Phone to phone, or phone to PC

� Chat with MSN/Yahoo friends

� Picture sharing and geo-tagging &

mobile blogs

�Click buddy’s icon to chat/voice talk instantly

�View her latest blog updates, sharing newest findings

�Local blogs are displayed as a star

�Click star to view the blog, which could be in text, photo, voice format

�Local weather & nearby POI advertisement can be displayed automatically in the bottom area

�Can view the internet comments/ratings of the POI service provider


Bedo.cn - Website Interface

• Find who is nearby

• Roaming to any

place through a

nation wide map

• Read local blogs,

events

• Post, reply &

comment

• Update location

through the map

23


Bedo.cn - PC Client Interface

• Desktop users can also use

a PC client for multimedia

instant communications with

mobile users

• Talk/chat/share with their

mobile friends

• Users can learn:

o presence & distance of

their buddies

o coming up local events

o local UGC blogs etc

24


‘LIVE’ Map

• Support both GPS phones & non-

GPS phones

• Free cell location

with excellent coverage now

available in top 20 cities of China

• Users can report

new cells/hotspots -> self expanding

location database

‘Live Map’ in mobile phones, as well as in PC internet:


Text chat, and Voice Talk!

• Chat between Pep, MSN, and Yahoo users

• Push to talk between GPRS/wifi phones, between mobile and PC(only 0.6KB/second)

• One to one, or one to many

With advanced voice compression algorithm,

smartphone users can chat, push-to-talk, and share

pictures/videos...


Free mobile blogs & spaces

• Picture and video sharing

• Personal spaces &

virtual homes in the map

• RSS subscription

• Music/software sharing

Users can enjoy free mobile blogs & spaces,

content sharing etc


5th Media Mobile

Idle Screen mobile content channels


Basic

Slide Through

Click Through

人姓名 TrackID 可帮助Rolling bar for News, Product

Tips

Content

Channel

A new media, sliding on idle screen


SportsSports ConsumersConsumers Life StyleLife Style FashionsFashions

MusicMusic TravelTravel HomeHome FoodFood

Well-defined channels. Media Rich. Updated automatically or manually


ArtsArts GamesGames CarsCars Night LifeNight Life

MoviesMovies MenMen WomenWomen FinanceFinance

User Defined Channels, fed with partners content


“爱的契机”席琳�狄翁2008世界巡回演唱会日期:2008.4场馆:上海体育场、北京工人体育场票价(RMB): 300, 500, 800, 1000, 2000, 3000立即预定

Reservation

1-click to call...

1-click to call...

Ticketing

1-click to call

Content/ad to be shown

哆啦A梦大雄的恐龙官方授权手游小恐龙回到白垩纪的日本,途中经历的一系列精彩故事!画面精美且易上手、多种道具完美结合，经典再现电影故事情节。马上体验哆啦A梦神奇的百宝袋

NO1 胡彦斌 - 男人KTV铃音下载整曲下载NO2 韩雪 - 你不会知道铃音下载整曲下载NO3尚雯婕 -在梵高的星空下铃音下载整曲下载NO4王力宏 - 改变自己铃音下载整曲下载NO5金莎 - 不可思议铃音下载整曲下载

Music

Games

Free Content Download, Ticket Selling, Promotional activities


Roboo

New Generation Mobile Search Service


“UGC”-based and Channel-based Search

12 Mobile Search Channels

ringtones; songs/music; wallpapers/screensavers; pictures; video; games; software; hardware; pages;

eBooks; news; stocks; weather/local life

• Personalized Ad: display proper ads by matching query

with contents, plus phone characteristics, city, popularity, user profiles (gender, interests…).

• Innovative: user participation (input comments on

search results, upload contents onto search engine!!!)

“human-centered” PopRank algorithm:

• user modeling, user comments / scoring

• matching of user queries with user profiles / phone

characteristics

• content popularity


Roboo Search Channels Overview


MTI

Location-based hardware solutions


Healtcare and safety location-based Services

• MTI has developed an LBS platform and a cell Capture®

technology and algorithm to catch roaming position without

GPS and Carriers support. It has been used in the Stand-

alone device, Kare® and Smartcard®, to support a LBS

service in positions of vehicle, kid, senior, field-workers,

valuable assets, even pets…All devices are voice enabled

• MTI cooperates with local carriers for co-marketing Kare® and Smartman®, billing monthly fees

Smartman ® device


24x7 Customer Support infrastructure

互联网互联网互联网互联网

无线移动通讯网无线移动通讯网无线移动通讯网无线移动通讯网

7/24 呼叫中心呼叫中心呼叫中心呼叫中心

GateWay

摩天摩天摩天摩天MMX MMX MMX MMX 平台平台平台平台第三方信息服务第三方信息服务第三方信息服务第三方信息服务

服务种类服务种类服务种类服务种类

� 紧急求助紧急求助紧急求助紧急求助

� 安全定位安全定位安全定位安全定位

� 个人保健个人保健个人保健个人保健

� 儿童益智儿童益智儿童益智儿童益智

� 生活咨询生活咨询生活咨询生活咨询

� 移动通讯移动通讯移动通讯移动通讯

定位宝定位宝定位宝定位宝

心脏远程监护心脏远程监护心脏远程监护心脏远程监护

儿童关爱宝儿童关爱宝儿童关爱宝儿童关爱宝

老人平安宝老人平安宝老人平安宝老人平安宝汽车黑狗汽车黑狗汽车黑狗汽车黑狗


Kare®: Kid Tracking device

位置位置位置位置查询查询查询查询

父母手机可随时查询子女当前位置

Dad home

Emergency procedure

Assistance

免提喇叭免提喇叭免提喇叭免提喇叭

话筒话筒话筒话筒

位置位置位置位置汇报汇报汇报汇报

子女只需按一键，就可快速向父母手机汇报当前位置

定时定位定时定位定时定位定时定位

如果儿童没有按设定的时间在设定地点时，会向父母手机发出提醒信息

紧急报警紧急报警紧急报警紧急报警

长按报警键，自动拨打预设的监护人电话或120,110。并报告当

前的位置

7/24 关爱宝服务关爱宝服务关爱宝服务关爱宝服务

7天/24小时的全天候服务中

心，解决用户的各种咨询及服务


Kare II®: Device for the elderly

子女家庭电源开关

紧急求助拔销

服务菜单

WAP/Internet

多功能滚轮

收音机

免提喇叭

一按无忧键


Tokiva

MVNO for Global Travellers


An inexpensive suite of communication services

Confidential © 2007

Inexpensive phone calls around the world, using call back. Also integrated with IM, phone book, SMS. The service was launched in September 2007, with over 700k registered users as of 01/2008.


Patent Pending Technology

Web / SNSService

Voice Service

MessagingService

Sharing Service

Billing Service

TorontoShanghai

GPRS Network

TokivaMobile Platform

VoIP Gateway

Data Channel

Voice Channel

InternetGPRS Network

USPTO Provisional Patent

#60/808560, 60/990996

USPTO Provisional Patent

#60/808560, 60/990996


Pang Hu Lu

Mobile RSS and Widgets


Panghulu enables users to subscribe for any digital content and play it on the mobile phone.

Free Internet Resources

RSS Feeds

Other Information Sites

Online Services

BBS

SNS

Search

Ticket Booking

…

Traditional Media

Publishing

BroadcastCMS

Automatic Conversion Gateway

Multimedia Compression Technology

Handset Adaptation Technology

A simple syndication tool, competing with Widsets


Business model: ad + revenue sharing

� Placing advertisements amidst free contents

� Sharing premium content subscription fee with CPs

� Sharing advertising revenue with online service providers and CPs


To Go Further


Thank You!

Bruno Bensaid - 布鲁诺 - [email protected] (incl. msn)

le mobile20 bruno bensaid 20080408 public

Business

china mobile industry

bruno bensaid1