Issue 23 • Oct 2011

THIS MONTH...News The latest news from the industry, along with analysis of what that news means, including:• M-web use proving a boon to operator billing, says DIMOCO 3• M-retailing explodes reveals IMRG Capgemini study 4• M-payments set to be standard way to pay by 2015 5• Mobile access to web now outstrips fixed line, finds MEF 6• Tablet users click on more ads than anyone else 7• Bet-to-view comes to UK Racing apps 8• MobFox and MobPartner form m-ad partnership 8• Bambuser video bloggers get ‘flattrd’ – and paid 9• PPP registration scheme signs up more than 3000 companies 9• Hallow’een text campaign raises funds for Alzheimers Charity 10• X-Factor slots launched by Fremantle Media Enterprises 10

Analysis EdItOrIal All Grown Up PPP registartion scheme and the fall out of World Telemedia Amsterdam show that the industry has matured 11 WOrld tElEMEdIa aMStErdaM What a show! World Telemedia Amsterdam showed a marked return to form. Paul Skeldon outlines some of the best bits 13 WOrld tElEMEdIa aMStErdaM From the show floor What was happening at World Telemedia Amsterdam on the show floor 15 directory The leading industry directory of services 17

Telemedia industry to launch body to tackle hijack fraud globally

Leading members of the telemedia community have pledged to come together and form a body that will lobby the world’s major carried to stamp out what is now seen as an empidemic of hijack fraud that is draining as much as 50% of revenues away from the business – and has rendered it impossible to call some whole countries such as Somali and North Korea as pretty much 100% of all calls to these countries, even if it isn’t PRS, gets hijacked.

Speaking candidly – and anonymously – in a closed workshop at World Telemedia Amsterdam earlier this month, some of the major European telemedia service provid-ers and network operators pledged to form a co-operative action group, joinly fund-ed by the industry members, to develop a proper strategy to take global network operators to task over traffic hijacking that has, as one telemedia exec put it at the meeting, “grown exponentially in the past three years to now be a major problem”.

Hijack fraud is involves someone, somewhere in the supply chain of carriers, between caller and termination point, sucking away the traffic from the intended platform, with the fraudster delivering it to a, usually, poor quality IVR or recorder service attempts to fool the caller into staying on the line as long as possible. The fraudster collects the money from the delivering network and the caller, who has not received the service he paid for, will then often go to the carrier or content provider and demand his money back and making repeat business unlikely.

This method of fraud is sometimes carried out in collusion with an accomplice at the origin carrier who turns a blind eye when a percentage of calls are rerouted down the line. Unscrupulous carriers have also been known to send traffic to the wrong termination point, collecting a kick-back from the fraudster.

The aim of the industry task force is to employ representatives to travel the world speaking to carriers about the problem with the aim of getting them to look more seriously at where this is happening and to try and stamp it out. The group also plans to try and bring a hijacker to trial as an example to all – and operator help is needed in getting a full paper trail of the traffic that has been hijacked.

Hijacking not only affects the victim of the fraud, but also can have a detrimental effect on the telemedia industry as a whole. This practice has ruined terminations that used to work from everywhere in the world, resulting in the international market becoming more fragmented and therefore less attractive.

“Some carriers are really on top of it, others are not doing enough and then termi-nation points are being hijacked and killed. Hijackers are like parasites, if they suck all the goodness out of a plant it will die,” says Stephane Allimant, Chief Executive of Atlas Telecom. “If it is hijacked so much on one termination point no one will use it anymore.”

Chief Operating Officer for Kwak Telecom, Josef Bruckschloegl, sees the problem mainly aimed at the wholesale market. “They hijack the traffic and then offer whole-sale below the interconnection market price, they have 100% mark up and don’t pay out,” he says. “They don’t pay for customer services etc. and never terminate the numbers where they should.”

It is a problem which Bruckschloegl estimates is losing his company between 10 to 15 per cent of traffic a year, and he advises companies within the wholesale com-munity to “make sure the carrier has official documentation for the number ranges, which need to be checked by the collecting party”.

Latest news at www.telemedia-news.comCatch our blog at www.telemedia360.blogspot.com

NEWSUse of the m-web makes direct operator billing the ideal payment method, says DIMOCOover the past two years, direct operator billing has become the ideal payment method for digital content on the mobile web, says mobile payment transaction expert DIMOCO in a report into mobile user habits conducted with Accenture across German speaking countries.

The “Mobile Web Watch Report” 2011, commissioned by Accenture and car-ried out by the market research insti-tute Forsa, finds that 19.5 million users in the German-speaking countries are already surfing the mobile web: 42% in Austria, 44% in Switzerland and 28% in Germany.

“But we’re not only seeing this trend in the German-speaking countries,” points out Gerald Tauchner, CEO of DIMOCO. This is why the company, with its DIMOCO Hub, has specialized in processing mobile payment transac-tions in the Central and Eastern Euro-pean countries as well as processing

mobile messaging transactions world-wide. Billing digital content on the internet, in particular, has turned out to be the biggest growth driver.

According to Accenture, the mobile development is based on three key factors: end devices and technology, services and applications as well as user and usage behavior. For example, the transition from click to touch technol-ogy on smartphones and the preva-lence of mobile broadband service have been the driving force behind the rapid increase in the number of mobile web users. In total, 19.5 million users in the German-speaking countries are surfing the mobile web, with Switzerland lead-ing (44%) followed by Austria (42%) and Germany (28%).

“Payment via the mobile operator’s phone bill is particularly suited for purchasing digital goods while surfing on the mobile web, and when it comes to very small amounts,” says Tauchner,

referring to the Gateway Billing Service recently presented in Austria. With this billing service, companies can flexibly invoice their consumers for digital con-tent purchased on the web using the mobile operator’s billing system. “The consumers surf the mobile web, choose their digital content, click through the simple order process and authorize the payment through their mobile opera-tor’s bill.”

In view of these trends, DIMOCO is stepping up its efforts to continue optimizing the market conditions for web content payment by means of direct operator billing in the Central and Eastern European countries. The CEE mobile payment transaction part-ner DIMOCO developed and operates a hub that directly connects with the network operators’ billing systems. DIMOCO’s customers benefit from the easy service setup and transaction processing.

MOBILE PAYMENT IS KING

NEWSIMRG Capgemini study shows that retail sales over mobile have exploded since 2010the Latest imrg Capgemini e-Retail Sales Index – based upon six quarters of online retail data – demonstrates that average sales via mobile leapt up from 0.4% at the be-ginning of 2010 to 3.3% in Q2 2011, as confidence in the channel grows and mobile sites become more sophisti-cated.

The highest percentage of sales through mobile for participating retailers was just under 7%.

The percentage of visits via mobile is also increasing, from an average of 1.4% in Q1 2010/11 to 7% in the latest quarter. The rate of mobile visits is as high as 12% for some retailers.

In a sign that retailer sites are be-coming more engaging for consum-ers, both checkout and basket aban-donment rates have dropped over the last six quarters, from 37% to 32% and 63% to 59% respectively.

David J Smith, Chief Marketing &

Communications Officer at IMRG, ex-plains: “Mobile has been discussed for a while now as an important channel for retailers to engage through, and with some retailers having up to 12% of their traffic coming through that channel, its popularity among con-sumers is clear.

The Quarterly Index provides invaluable data for retailers that can greatly assist with spend deci-sions, for example revealing the best periods in the year for ROI and how your bounce rates compare with your competitors.

This Index is open to retailers of all sizes and sectors and can perform an important role in helping to shape marketing strategies.”

Chris Webster, head of retail con-sulting and technology at Capgemini, adds: “This Quarterly Index provides us with a unique set of data from online retailers. It allows us to moni-

tor specific aspects of a business and discover emerging trends in con-sumer interaction, which ultimately provides retailers with the right intelligence to evolve their business accordingly.

“The report has revealed that the average basket abandonment rate for UK e-retailers is currently 59%. If we consider this in a physical sense, we can see how alarmingly high this figure is – if three fifths of shoppers, having chosen and queued, walked away from the till, shop keepers would clearly act,” Webster says.

“Likewise online businesses need to be similarly concerned and follow the example of the major eRetailers, such as Amazon. Clarity of pricing and de-livery charges is essential, so there are no surprises at the checkout, and one click ordering is a very effective way to streamline the process through the checkout,” he adds.

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NEWSM-payments will become a standard for retailers with consumers spending £19bn by 2021in the three months Research conducted by WorldPay, a global leader in payment processing and alternative payments, has revealed that customer demand is driving online retailers towards offering m-commerce transactions, and plans are in place to implement in the next one to two years.

The World PayStudy – carried out amongst 109 senior managers at the Internet Retailing Conference in London on 4 October – is backed up by a separate study carried out by Barclays Bank that predicts that British consumers are set to spend £19.3 billion a year using their mobile phones and tablets within the next ten years, compared with £1.3 billion spent today.

WorldPay reveals that, at present, only 29% of businesses currently offer m-com-merce solutions for customer payments. Across the 71% of respondents that do not currently offer m-commerce, 80% revealed plans to add mobile offerings in

the next 24 months, and a further 14% of respondents indicated they were likely to roll out this channel in three to four years.

60% of those polled felt that the greatest driver for offering m-commerce stemmed from customer expectation of being able to complete transactions across mobile devices. 10% of respond-ents said they would only be likely to extend their platforms to m-commerce in order to ‘keep up’ with competitors, while a further 11% said they would upgrade because modern technology makes mobile transactions possible.

Respondents also identified a range of challenges to the successful adoption of m-commerce solutions. 28% of those sur-veyed believe that technological capability is the biggest barrier, whilst 18% felt that data security was. 8% thought the risk of fraud was a concern, and 15% and 13% respectively perceived the cost of process-ing the payment and the overall payment process as the biggest challenges.

So what will consumers be buying using mobile? According to the Barclays research, the convenience of amend-ing shopping lists, making payments and arranging delivery times via mobile means food and groceries remain the most popular ‘on the go’ mobile purchase, ringing up sales of nearly £300 million for supermarkets and grocery stores this year. By 2021 this figure is expected to top £5 billion.

Electricals are the second most popular mobile purchase with £290 million due to be purchased via a smart phone or tablet this year. By 2021 sales are predicted to reach £2.1 billion but, the purchase of electrical goods will fall back in the rankings to fourth position, in value terms. Personal care, which includes hair care, beauty, dental and baby products will enjoy the strongest growth with m-commerce sales rising from £63 million in 2011 to £3.1 billion in ten years time.

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NEWSMobile internet access outpacing fixed-line and driving up m-commerce globally, finds MEFmobiLe is increasingLy the primary platform for internet access, according to the latest Global Consum-er Survey (GCS) report from MEF, the global community for mobile content and commerce.

Based on research conducted among more than 8000 respondents in nine countries across five continents, the MEF GCS found that 72% access the mobile internet on a daily basis with 18% no longer using fixed-line internet access whatsoever.

In each individual market, the number of consumers accessing the mobile internet daily is higher than the number accessing fixed-line internet.

The report also illustrates how con-sumers are engaging in banking, pay-ments and commerce via mobile. 57% of respondents have engaged in some form of banking or financial activity on their mobile, including balance check

and transfer of funds, while 10% have paid a bill via their mobile device.

Meanwhile, 82% reported using their mobile phone to research or purchase a digital or physical product. Findings across all regions concur that the vast majority of respondents are actively using their mobile for the purchase of goods and items.

“This research demonstrates how mobile has increasingly become the platform of choice for internet access and reinforces how consumers are using mobile connected devices for a wide range of content and commerce activities including research, payments and financial activities,” commented Rimma Perelmuter, MEF Executive Director.

“MEF’s GCS report provides invalu-able insights to both mobile specialists and new entrants to the wider ecosys-tem looking to gain a deeper under-standing of the evolving mobile habits

of consumers across developed and developing markets.”

However, the GCS Report also cites security as the biggest barrier to M-Commerce adoption. MEF Global Board Chairman, Andrew Bud com-mented: “This global research illus-trates many positive findings regard-ing consumer engagement across a wide range of mobile content and commerce activities in developed and developing markets.

However, with 27% of consumers stating they would use mobile to make purchases more often if security was addressed, the need to build trust further in order to satisfy growing consumer demand is a clear industry call to action.

There is work to be done, and MEF’s Global M-Commerce initiative is al-ready addressing the issue of security as a core focus. We invite all forward-looking companies to take part.”

NEWSReport Reveals iPad and Tablet users click on more search ads than their phone counterpartsresearch by marin Software, a provider of an online advertising management platform for advertisers and agencies, has found that iPad and other tablet users tend to click on paid search ads at a higher rate than desktop or smartphone users.

According to the report, although paid search ads directly targeted at tablets only comprises 2% of overall paid search spend, the click through rate (CTR) on tablets is 37% higher compared to desk-tops. Furthermore, advertisers target-ing tablets like the iPad enjoy a lower average cost per click (CPC) compared to both desktops and mobile devices.

Marin Software’s Paid Search Quarterly Benchmarking Report consists of key trends and statistics uncovered through an examination of the Marin Global Search Index. The Marin Global Search Index is comprised of data from more than 800 large-scale advertisers and agencies that collectively spend in ex-

cess of $2 billion annually on paid-search through the Marin platform.

The report, which analysed Q3 2011, found that paid search spend targeted to desktops comprised 93% of total spend while smartphones earned 5% and tablets 2% of spend. Ads served to tablet devices provided a 37% higher CTR than ads on desktops. The average CPC for ads served to tablets was 29% lower than desktops.

Compared to last year, search adver-tisers on Google saw a 19% increase in clicks and a 24% drop in impressions during the quarter. During the same time, CTR on Google increased 57% while CPC decreased 18%, suggesting large-scale advertisers realised efficiency gains through improved matching and more effective bidding. On Yahoo and Bing, advertisers saw a 43% higher click volume at a 10% lower CPC on a year over year basis. Despite CTR declining, CTR increased 9% compared to Q2, im-

plying improved ad matching or traffic characteristics by advertisers.

Additionally, continual refinement of match types from Broad to Phrase to Exact was a significant contributor to improved efficiencies for advertisers. Over the last year, search marketers have increased their use of Exact Match, grow-ing their click-share of the match type by 6% while increasing share of spend by 2%.

“As peoples’ desktop browsing habits carry over to devices like the iPad we anticipate advertisers will shift spend and ad strategy accordingly,” said Ed Stevenson, MD of EMEA and APAC at Marin Software. “To achieve the best results, advertisers will need to develop specific programs for each device type. Marin Software provides online advertis-ers an intuitive platform from which they can optimise their campaigns and help unlock the full financial potential of a campaign.”

NEWSBet-to-view now available via the Racing UK iPhone App

MobPartner and MobFox for m-advertising partnership

racing uk and William Hill have teamed up to offer live horseracing via a new bet-to-view service on the Rac-ing UK App, so that anyone who places a minimum £2 bet with William Hill - via the Racing UK App - can watch live racing from the broadcaster’s 30 tracks, which include Cheltenham, Aintree, Newbury, Kempton, Goodwood, New-market, Epsom, Sandown and York.

Racing UK’s App is free and has been downloaded more than 100,000 times and now serves over seven million page impressions per month. It features fast-loading racecards and results for all British and Irish tracks, comprehensive racecourse informa-tion, statistics, blogs, the latest news, Racing UK’s big-race video archive and the unique Predictor tool for unearth-ing winners.

In addition, users can upgrade eas-ily in order to watch live Racing UK streaming on both 3G and wireless networks.

Racing UK’s Director of Business

Development Simon Brydon said: “The Racing UK App is fast becoming the one-stop shop for any racing fan, and the latest version is testament to that. Users can now browse racecards, study form and statistics, activate the Predic-tor, place a bet through our partner William Hill and then watch the race unfold – all through the Racing UK App.

“There is now no excuse to miss the live racing, as aside from bet-to-view, you can upgrade to a subscription to watch high quality video on wireless or 3G networks for every Racing UK meeting.”

Fiona Stevenson, Head of Mobile Marketing, William Hill, added: ‘’Our latest mobile partnership with Racing UK shows our confidence in the mobile market.

“Racing fans can now watch races from the UK’s best racecourses whilst betting directly with the UK’s best bookmaker, with the benefit of form and data, and all while on the move.’’

mobpartner, a world pioneer in Affiliate Mobile Marketing , and Mob-Fox, one of the world’s leading and fastest-growing independent mobile advertising networks, are proud to an-nounce a strong partnership.

In concrete terms, each MobPartner publisher “media buyer” who buys traf-fic from MobFox advertising network will directly benefit from a 20% bonus advertising credits on their MobFox account.

“This partnership with MobFox is a new step on our vision to improve the mobile advertising business. This will facilitate our media buyers to increase their advertising budgets and generate more revenues on MobPartner. Follow-ing inMobi, Buzzcity and Adfonic, we are proud to announce this great deal with MobFox,” explains Vianney Settini, CEO of MobPartner.

In a few words, a “media buyer” is a publisher on MobPartner that purchas-

es mobile advertising space on mobile ad networks to deliver banner and text ads for mobile offers. A media buyer has preselected mobile campaigns from a mobile CPA affiliate company and is at-tempting to obtain quality mobile traf-fic to profit from the action. CPA stands for Cost per Action. An action is deliv-ered when the end user has viewed the advertising on their mobile phone and takes a subsequent action which can be a purchase, a subscription or even a download.

“After launching a range of innova-tive, performance based features it was an obvious decision for us to part-ner with the leading Mobile Affiliate Network. This partnership will allow MobPartner’s media buyers to tap into an exclusive, performance orientated network of over 5,000 mobile applica-tions and websites across iOS, Android, Windows Phone 7 and mobile web,” adds Julian Zehetmayr, CEO at MobFox.

NEWSVideo bloggers given a chance to be ‘flattrd’ and earn money

PhonepayPlus UK PRS registration scheme passes the 3000 mark

in a month where global anti-capi-talism protests emphasised the growing popularity of live video streaming, users of live broadcasting service Bambuser are be-ing given a chance to earn both recogni-tion – and money – for their work.

From today, creators of Bambuser videos will have the opportunity to earn money through the integration of the micropayment platform Flattr. Viewers of their broadcasts can now “flattr” them by rewarding them with a micro-donation.

“For the first time, the work of Bambuser broadcasters can be supported by the wider digital community,” said Bambuser Executive Chairman Hans Eriksson. “This is a real breakthrough for content providers as admirers of their work can now finan-cially reward them every month.”

Working in a similar way to the Face-book ‘Like’ button – but with a monetary value – registered Flattr users can support broadcasters by simply clicking onto the ‘Flattr’ button on the Bambuser site.

“Increasingly great content is being cre-ated by ordinary people, not big corpora-tions,” said Linus Olsson,co-founder of

Flattr. “Bloggers, podcasters and citizen journalists are among the biggest groups of Flattr users, and video is clearly on the uptrend. We’re thrilled Flattr can help the Bambuser community get easily rewarded for their work.”

The announcement has been warmly welcomed by a collection of bloggers and video websites. Community blogger Mike Downes says: “Flattr sounds like a wel-come addition to reward people for their dedication and hard work. What a brilliant way to say ‘Thanks, I’ve enjoyed this’. I can’t wait to see the scheme in action.”

Turi Munthe, CEO of citizen journalism website Demotix adds: “Unfortunately not all videos shot by Demotix users are bought by the mainstream media. How-ever, any additional opportunity for them to be supported by the wider community is something we support.”

Mark Rendeiro, founder of citizen journalism website Citizenreporter says: “In a world where the independent jour-nalist is only beginning to rise, we need new tools and methods to help them do their work.”

phonepay pLus’s new industry-wide Registration Scheme now has more than 3000 premium rate telephone serv-ices (PRS) providers signed up. The UK PRS regulator launched the Scheme in April and registration became mandatory on 1 September 2011, when PhonepayPlus’ new Code of Practice came into force.

The Scheme will provide details of all PRS providers in the UK, with benefits for both consumers and industry – helping PRS companies with their due diligence, while giving consumers better informa-tion about premium rate numbers and customer care lines. Importantly, the Regis-tration Scheme will help the regulator to better target enforcement at the providers causing consumer harm.

Paul Whiteing, PhonepayPlus’ Chief Executive, says: “This is good news for the PRS industry, good news for consumers and good news for PhonepayPlus. As we look forward to working with industry to embed and enforce the new Code

of Practice, it is reassuring to know that thousands of PRS providers are registered with us. This helps us to target enforce-ment which, in turn, helps build consumer confidence in PRS and prevent damage to the PRS market.”

PPP has pledged to now pursue non-registered PRS providers, who will be in breach of the new Code. Any providers contracted with non-registered providers will also be in breach of the new Code, even if they are registered themselves.

“From the very start – when the Reg-istration Scheme was only an idea – we have worked hard to consult with the PRS industry and to carefully consider and act on its input,” says Whiteing. “That does not stop here. We continue to work with indus-try to improve the Registration Scheme and build consumer confidence. We will shortly undertake an evaluation of the Registration Scheme and we look forward to wide-ranging input, from all PRS provid-ers in an increasingly diverse market.”

NEWSHalloween text campaign raises funds for Alzheimer’s Society

FremantleMedia Enterprises launches X Factor Jackpot slots in the UK

the aLzheimer’s society and Tesco have launched an innovative Halloween-themed text donate campaign to raise vital funds to help the fight against dementia.

People are being urged to get out their mobiles this October and text the word SCARY to 70444. In return they may receive a spooky Halloween trick or treat text message back. Texts cost £1.50 which will be donated to Alzheimer’s Society and Alzheimer Scotland.

Treats include handy hints and tips on how to make your own Halloween costumes and recipe ideas for spooky party food. And tricks include cheesy jokes and riddles.

Together, Alzheimer’s Society and Alzhe-imer Scotland are Tesco Charity of the Year 2011 and hope to raise £5million to build a better future for people with dementia. During October thousands of Tesco staff across the UK are joining together to cel-ebrate Halloween with a variety of spooky events and ghoulish activities that will raise vital funds.

Tom Hubbard-Green, E-Marketing and Social Media Manager at Alzheimer’s Socie-ty said: “As a charity we’ve used text donate before; but we’ve never used it in such an innovative way. The campaign is themed around Halloween and uses a special platform which lets us send randomized

bounce-back messages to our supporters featuring a trick or a treat. This type of text donate campaign is a first for Alzheimer’s Society and we hope it will be attractive to those wanting to donate to a charity, but don’t have the time to spare to organise a fundraising activity.” He continues: “It’s a fun and easy way to celebrate Halloween while raising vital funds to help fight dementia.”

Josh Hardie, Head of Corporate Respon-sibility from Tesco, said: “This campaign is a fresh way to raise money for our charity of the year, Alzheimer’s Society and Alzheimer Scotland during October. This year our staff and customers will go all out to celebrate Halloween, with spooky outfits and fun activities. We think they’ll like the oppor-tunity of receiving something in return for their donation. We hope everyone will get out their mobiles and show their support and get texting.”

The partnership will fund new research, dementia support professionals to help those living with the condition and a Dementia Community Roadshow which is travelling around UK Tesco stores raising awareness of dementia and encouraging people worried about their memory to visit their GPs.

The text to donate campaign, which will launch on Friday 7 October, will run throughout October, including Halloween on Monday October 31st.

fremantLemedia Enterprises (FME), in association with Syco, has launched a brand new online slots game The X Factor Jackpot developed in part-nership with Ash Gaming Ltd. Providing players with a strong link to the actual TV show format and including the extended use of show assets, the all new The X Factor Jackpot slots game features the familiar voice of Peter Dickson and a main bonus round featuring popular contest-ants from previous series and actual TV video footage.

The player is also treated to three progressive jackpots and free spin bonus rounds complete with sticky wilds. The X Factor Jackpot slots game will be offered

to customers of Openbet, GTS and Finsoft and provide operators with further mar-keting and promotional opportunities.

Simon Murphy, Head of Gambling EMEA said “We want to marry the best brands with great quality visuals and game play. The use of actual TV show content combined with Ash Gaming’s reputation of developing great games is the perfect solution and we look forward to watching this game grow in popularity amongst Slots players.”

Chris Ash, Founder, Ash Gaming said “We are confident that the game captures the glamour and excitement of the show and delivers a gaming experience worthy of the brand.”

Editorial Editor Paul Skeldon paulskeldon@me.com | Sales & Marketing info@telemediamagazine.com | Production Director Annika Micheli annika@telemediamagazine.com | Publisher Jarvis Todd jarvis@telemediamagazine.com

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What we’ve been listening to Just like Honey, The Jesus & Mary Chain | What we’ve been amused by The Daily Mash | Who we’ve been following The Steve Jobs obit-fest | What we’ve been reading about Steve Jobs saving the world| November 2011 will bring... Massive sales of my book (see advert below)

All grown upWorld Telemedia Amsterdam showed how the industry has grown up and is now ready for the challenges of 2012, finds Paul Skeldon

news that the telemedia industry is to work collaboratively on tackling fraud – as revealed at a special plenary meeting at World Telemedia Amsterdam on 12 October – marks a huge step change in the industry. While fraud has long been a problem for the vast law-abiding majority of telemedia companies, often, some of the companies in the industry have not always been as above board themselves.

But what we witnessed in Amsterdam was the final proof that the telemedia sector has grown up. Looking round the conference and show floor it was great to see so many familiar faces: shocking though to see how much greyer, lined and indeed responsible most of us now look. And with this literal growing up has come a new, responsible industry.

The fact that so many players are pledging time and money to stamping out fraud is one thing. The fact that 3000 UK PRS companies have signed up to the PPP reg-istration scheme clearly shows how things have changed of late. We now have a responsible and ‘proper’ industry which can, while still making a great living from adult, chat, dating, psychic and so on, is well placed to start to reap the rewards of a wider m-commerce and e-commerce marketplace and a rapidly expanding interac-tive media and advertising industry.

The economy may be in the doldrums, but there is still much to look forward to in 2012 for telemedia.

COMMENT

those of you who weren’t in Am-sterdam between 12 and 14 October at WORLD TELEMEDIA missed a great event. The old vibe that makes an over-seas telemedia event go with a swing and a bang was back in spades. Great venue, great exhibition and great con-ference – with some excellent speakers, thanks everyone – and, despite the mock-groaning, everyone was secretly glad to be back in Amsterdam. Even the Europub.

BEATING FRAUDThe show was particularly interesting as it offered the chance for the industry to come together not just to network and do deals, bit to also start making in roads into some of the key issues that are impacting on it.

Most notable was the upshot of the fraud seminar session on Wednesday 12 October, which not only saw a number of key industry players discuss the is-sues of fraud – and indeed of arbitrage, more of which anon – but also several of the leading companies in the indus-try decided at the World Telemedia meeting t form a group to start working to lobby the major networks around the world to start to do something about traffic hijacking.

Hijacking has long been a low-level problem for the industry, but in the past three years it has grown expo-nentially and is now taking up to 50% of revenues away from some services, according to estimates by the panel-lists. The ad hoc grouping, which had its inaugural meeting at the show, is set to detail its modus operandi in the coming weeks.

Elsewhere at the event, we saw the usual round of lively parties and drinks receptions – though is it me or is every-one better behaved these days? – and a conference that brought in a host of telemedia favourites and some inter-esting newbies to debate everything from interactive services, to billing and m-payments, to marketing to chat and dating and telemedia essentials.

MEN HATE SPORTSOne of the most surprising upshots of opening keynote from SKOPOS was that, while most male orientated mobile services are hung around sport, a study of male mobile users found that only 37% of them liked sport. SKOPOS’ research of consumers also found that the web and mobile web use was nor-malising risqué behaviour among adult users – which has to be good news for the telemedia sector.

CHAT, DATING AND PSYCHICThe adult worlds of chat and dating – along with horoscope and psychic – are also blooming, our panel found, with users growing despite the recession. Hard times usually bring out the small spends, so traditionally telemedia serv-ices do well and this seems to be being borne out. According to AIME’s David Ashman’s presentation flirt, chat and dating has grown by 35% year on year to £37.4million in the UK in 2010. Tarot, psychic and astrology is up 23.1% to £21.4million in the same period.

According to Ashman, virtual gifts is the star player right now in premium rate, growing an eye watering 438% to £8.1million in 2010 – with even more expected from 2011.

VIRTUAL GOODSThis market for virtual goods was exemplified by Andy Rogers, MD of enteraction, who showed the audience just how virtual goods are so lucrative. The virtual goods market is now worth some $10.3billion worldwide and is largely made up of a vast number of micro-transactions made by purchasers. Their key role is in acquisition and viral marketing and they go hand in hand with what enteraction specialises in, social games.

The company built the famous Coro-nation street game around ITV’s leading soap and it has sold all manner of virtual goods within it ever since, very successfully.

“For ITV we increased CRM database

by over 125,000 names in two months and collected detailed demographic and usage information on all players – data is key to success, make sure you know how to interpret it,” Rogers told the crowd.

BILLING AND PAYMENTSThe other area where the telemedia

show brought together some of the finest minds was around the billing and m-payment space. The whole issue of adapting PSMS as a more widespread billing tool and the issues surrounding developing effective in-app billing were two key topics at the event. Payforit, also got a look in, as did France’s novel Internet+ online ISP billing tool.

PSMS is getting something of a make over in some European territories as billing companies like txtnation start to get operators to agree pay out rates that are good enough to start to justify PSMS as a payment tool for things like tickets and vending machine drinks – where the vendor or the consumer is happy to swallow a very small premium for the convenience of using mobile.

TSMSThese transactional SMS (TSMS) services pave the way eventually for SMS to perhaps become a much more widespread payment tool for real world goods.

“Transactional SMS is normal short-code billing as we know it: that means that you’re still promoting text in information in the traditional way using a 5 digit short-code number,” explained Danny Marino from txtnation. “However operators will reward much higher pay outs for qualifying campaigns and services.”

According to Marino, pay outs will be 90+%, based on the particular applica-tion submitted and its individual merits. Operators are also open to discussing very specific product or service margins to ensure the right pay out structure is offered to each individual company so that txtnation and its clients can devise

INDUSTRYWorld Telemdia Amsterdam

What an eventWorld Telemedia retunred to its spiritual home in Amsterdam this month and the old flame was still alove. Here Paul Skeldon Reports on the highlights of the conference, while overleaf we look at some of the other happenings

INDUSTRYWorld Telemedia Amsterdam

a model that really works on a commer-cial level for each service provider.

“I think, with the emergence of NFC and other mechanisms which are be-coming more popular or certainly more accessible to the everyday consumer, that the operators want to ensure that they’re kept in the game,” Marino says. “By offering transactional SMS with the out payment rates they are talking to us about it really opens up mobile billing to many more spaces that would otherwise have continued to think of short-code billing as simply not viable for them. Now we can look at small value products in retail environments being available to purchase via mobile in a way that commercially just wasn’t possible before.”

IN-APP BILLINGPSMS is also sitting behind a raft of in-app billing services, which are also very much flavour du jour in the telemedia world. Allowing people to buy things while they are in app is growing in popularity – unless you run Apple apps, obviously. But for the growing number of Android and other app users, in-app billing is becoming a cool new tool.

According to Forrester Research, app revenue is set to reach $38billion by 2015 and that 75% of revenues come from apps with in-app billing, TelServ’s Tijl Houtbeckers told the audience. The company has launched an in app billing tool, BillMi, which uses PSMS in the background to bill for in app and in game stuff and allows pay-to-use,

pay-while-using and pay-before-use (crediting) for most non Apple apps.

It is available in 93 countries and is integrated into the native app experi-ence so, even though it uses PRS in the background, it never takes anyone out of the game or app they are using.

There was, of course, much more at World Telemedia Amsterdam than we have space for here, but all the presen-tations are available at wtevent.co.uk and it will only be a few short months before we do it all again, so stay tuned and stay premium rate.>>FOR MORE ON THE SHOW GO ON-LINE NOW AT WWW.WTEVENT.CO.UK>>

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gLobaL mobiLe and digital tech-nology business Mobile Interactive Group (MIG) has bought global Dutch micropay-ments business Zaypay and was at the show to talk through how the company will bring huge benefits to MIG’s teleme-dia customer base.

Based in the Netherlands, Zaypay is a profitable mobile micropayments busi-ness that launched in 2006. To date the business has provided secure micropay-ment solutions to several hundred global customers through one secure easy to use platform.

Barry Houlihan, CEO and Founder, MIG says: “MIG’s vision for Zaypay is to build a one stop shop for online and mobile monetisation solutions to merchants, online billing providers and developers

globally. We understand that developers are driving our industry now and Zaypay is a platform that has been built by devel-opers, for developers – Our aim is to build stronger relationships specifically with the developer community, to provide developers with a frictionless payment system that’s tailored to their platforms and to further understand and support their requirements around monetisation on an international scale.”

“The industry press recently reported that users are increasingly choosing simple SMS mobile payments for micro-transactions whilst on social networks and gaming sites. Market insights and industry stats also indicate that the world-wide market for mobile payments will grow to $633.4 billion and that mobile

payment users will grow 600 percent, to 490 million by 2014 (Source: Generator).

Bastiaan Peters, CTO, Zaypay adds: “We’re extremely proud of what we’ve achieved over the past five years; we’ve built a profitable micropayments technol-ogy business and now, with the acqui-sition from MIG, the Zaypay business can be taken to the next level. MIG is a well-respected business that has a strong reputation for developing robust global technology platforms. It will be exciting to work with a group of such forward thinking, innovative individuals who un-derstand where the industry is going and who have a clear vision for the future.”

MIG will continue to operate Zaypay as a standalone business.

worLd teLemedia AMSTERDAM 12-14 October continued the fine tradition of offering the best not only in informal seminars, thought leadership and a traditional exhibition, but also a raft of fun networking, hospitality and social offerings that helped oil the wheels of business. And this year was no exception.

Dialoga and International Premiums are the event’s major Platinum sponsors and Dialoga is running a hospitality suite throughout the event where delegates can meet, refresh and do business.

Dialoga Group offers access numbers of all kind and payout in all number types coupled with a broad range of Telco-grade Cloud-telephony services such as Cloud PBX, Cloud IVR, Cloud ACD, Real-Time Calls Statistics and Analytics, Cloud ACD, Call Recording and Monitoring, Multilingual Text-To-Speech and Auto-

matic Speech Recognition that helps you to improve your business efficiency and gain better customer loyalty.

DIALOGA GROUP works with compa-nies in a variety of industries, including media, marketing and content providers, telecommunications, e-business, distribu-tion, travel, transportation, public sector, finance, insurance, call centres handling efficiently a call volume of 100 millions minutes per month. With more than 15 years of experience in providing commu-nications solutions, DIALOGA GROUP is a fast-growing international company with offices in New York City, London, Munich, Frankfurt, Paris, Madrid, Barcelona, Palma de Mallorca, Bilbao and Lisbon.

International Premiums, the show’s other platinum sponsor, meanwhile, is a worldwide telecom media services pro-vider and aggregator. It has acquired the

sole distribution rights for: +232 22 and +232 24 Sierra Leone, +224 55 Guinea and +252 70 Somalia.

Offering the Highest Payouts, Inter-national Premiums helps its customers organize their premium rate business eas-ily and efficiently by providing monthly, biweekly, weekly and DAILY payments.

Oxygen8, Advanced Telecoms Services (ATS), Atlas Interactive and MIG were all Gold Sponsors of the show and Oxygen8 offered hospitality throughout the event, while Atlas ran a superb bar and lounge and MIG gave everyone welcome drinks on the show’s opening night on Wednes-day 12 October. Cheers!

ATS provided the event with a fantastic mobile website and a custom QR code. Go to www.wtevent.co.uk , point your QR code scanner at the code and, voila!, you have access to our brilliant mobile site.

INDUSTRYWorld Telemedia Amsterdam

From the show floorPaul Skeldon reports on the key happenings from the show floor and the sponsors at World Telemedia Amsterdam earlier this month. Thanks to everyone for coming

MIG demos global micropayments business Zaypay

Hospitality, networking and fun

INDUSTRYWorld Telemedia Amsterdam

INDUSTRYWorld Telemedia Amsterdam

A rapidly growing digital adult market needs a fast and simple payment methodwith the rapidLy growing adult digital content market – whether on the web or in the form of mobile con-tent – comes the need for fast, simple payment methods. Since almost eleven years the leading provider of mobile transaction process in the CEE coun-tries, World Telemedia sponsor DIMOCO has specialized in supporting the adult entertainment branch in the fields of mobile payment.

The company has a tremendous portfolio of mobile payment products and offers various methods for billing mobile and web content in the Cen-tral and Eastern European countries. Depending on the requirements of

the service provider the order can be placed on various ways, e.g. via text message or on the mobile or classic web. Very practically for companies in the adult branch, the payment-process is handled with the consumer’s existing cellular payment plan.

The main advantages of mobile pay-ment are a higher conversation rate, a great usability and a fast payment process. The extra plus: no user registra-tion is necessary. So at DIMOCO mobile payment is definitely king.

DIMOCO has consistently followed the strategy introduced at the begin-ning of this year, thereby strengthening its position as a competent and versa-

tile mobile payment operator for digital merchandise provided via cell phones and the web.

DIMOCO was founded in 2000 and is now one of the leading mobile messag-ing and payment providers in Central and Eastern Europe. The company devel-ops, operates and markets a mobile mes-saging and payment transaction hub.

With this “hub”, DIMOCO bundles connections to cellular providers in Central and Eastern Europe as well as connections to messaging hubs worldwide. This, DIMOCO offers its busi-ness customers a fast, simple means of processing their mobile messaging and payment transactions.

worLd teLemedia AMSTERDAM featured a unique mobile website, built for us by Gold Sponsor Advanced Telecoms Services (ATS) that offered delegates – and those who couldn’t join us – access to all the latest conference and event data, ac-cess to meeting bookings and a generally supercool experience of the show.

And to make getting access to it even easier, ATS also built the event a customer QR code that will be festooned all over the event. It is also on the show’s website www.wtevent.co.uk. Just fire up your QR scanner, point at the custom QR code and Bob (Bentz)’s your uncle you are in.

The m-website is optimized for most commonly used handsets and will also feature news from the show once it gets going.

more and more publishing houses and trading companies are looking for a payment method for mobile applications as an alternative to app stores. CM Telecom was at WORLD TELEMEDIA AMSTERDAM to of-fers clients a different and convenient method of payment: Mobile Content Billing.

Mobile Content Billing is a way to pay for mobile services, only charging the user’s mobile telephone bill or pre-paid credit. This method of payment is not just quick & easy for the end user; it also has an extensive coverage in The Netherlands & Belgium. All mobile devices with access to the internet can pay for online content through Mobile Content Billing. End users can pay for

online content that is offered on a mo-bile website with one simple click.

Mobile Content Billing is a mobile payment method which is easy acces-sible for end users. It is immediately usable for everyone and the ease of payment for the end user is bigger compared to an app store, wallet or credit Card payment.

Before the mobile payment is made, CM Telecom authorizes the payment. Therefore the end users can only ac-cess the content when the payment was successful. Payments are possible up to an amount of € 10,- per transac-tion.

In addition, the end user has insight into his own transaction overview us-ing the mobile site http://payinfo.mobi

INDUSTRYWorld Telemedia Amsterdam

Telemedia on the move

CM Telecom offers alternative payment method for app stores

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