Uptake in U.S. Off-deck Mobile Content Translates into Greater Market Opportunity for Connection Aggregators

PALO ALTO, Calif.--(BUSINESS WIRE)--Growth in off-deck mobile content markets in the U.S. is directly translating into increased revenues for the connection aggregators, who apart from providing connectivity also help in various other processes to enable off-deck content distribution and billing. Being a back bone to the expanding off-deck mobile content market, these connection aggregators are poised for simultaneous growth.

New analysis from Frost & Sullivan (http://www.mobile&wireless.frost.com [1]), An Insight into U.S. Mobile Connection Aggregation Markets, finds that revenue shares for connection aggregators in the U.S. expect to be $167.6 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the An Insight into U.S. Mobile Connection Aggregation Markets, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla@frost.com [2] with your full name, company name, title, telephone number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

In the early stages of the off-deck mobile content markets, lower priced mobile marketing applications accounted for the majority of the revenues. However, with content services gradually becoming popular in off-deck and subscription-based pricing adopted on a larger scale, mobile operators are willing to share more with the value-chain participants at higher price points. Hence, increasing contribution of subscription services towards off-deck revenues also results in a better payout for the content providers.

“Higher-priced subscription services already contribute the majority of revenues and expect to continue accounting for the largest component of the connection aggregators’ revenue pie,” remarks Frost & Sullivan Strategic Industry Analyst, Vikrant Gandhi.

Moreover, U.S. mobile operators may not be willing to open up new “binds” and could be looking to reduce the number of aggregators tied into their systems to maximize efficiencies at the operator end and maintain large control over their off-deck offerings.

Content providers also need not necessarily establish individual agreements with multiple mobile operators, as they have the choice of partnering with “approved” connection aggregators to be able to sell their wares on the mobile networks.

Therefore, it is critical for connection aggregators to establish broad relationships with content providers and mobile operators by 2008, to strengthen their position in the long term. To achieve this, connection aggregators must guarantee a clear value proposition for their services and avoid commoditization of services.

“Apart from providing core services such as connectivity, reporting, settlement and others, they can also help the content providers in application development, smart messaging services, storefront development and others,” notes Gandhi. “Such services further increase the market opportunity and create additional revenue stream for connection aggregators while helping them compete in the young U.S. off-deck mobile content services markets.”

Connection aggregators can also play a role in services such as mobile banking and payments, mobile advertising and others. They can consider offering their own ad management platforms, or can simply help connect the advertisers with the inventory holders. Similarly, mobile financial services such as peer-to-peer money transfer can also require services of connection aggregators.

Participating in a potential concentrate market, these connection aggregators can brave the future by aggressively implementing capabilities to support next-generation platforms such as WAP billing, MMS billing and others.

An Insight into U.S. Mobile Connection Aggregation Markets is part of the Mobile & Wireless Growth Partnership Service program, which also includes research in the following markets: mobile DRM, mobile payments and mobile banking, premium mobile content and applications, mobile video services, mobile advertising and search, strategic insight into mobile content adaptation-porting with transcoding and rendering, mobile handheld devices, mobile office, enterprise mobile and wireless applications, and MVNO. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships, visit http://www.frost.com [3].

An insight into U.S. Mobile Connection Aggregation Markets