Synergy with Internet Messaging is the Key for the Future Success of Mobile Messaging

Research conducted by LogicaCMG and STL reveals that the future success of mobile messaging services is dependant upon much closer interaction between mobile operators and leading Internet players

[USPRwire, Thu Oct 12 2006] LogicaCMG and STL research among mobile operators at this year’s Telco 2.0™ and IMS Services Forum finds that:

* Fifty percent believe that profitability of today’s messaging can be improved by enhancing SMS with presence and conversational chat features

* Sixty-four percent believe that operators and Internet players need to establish an aligned mobile Instant Messaging (IM) community based on both phone numbers and third party identifiers

October 12, 2006 – A research study conducted by LogicaCMG and STL among delegates at this year’s Telco 2.0™ and IMS Services Forum in London has revealed that the future success of mobile messaging services is dependant upon much closer interaction between mobile operators and leading Internet players. The research, across 70 senior figures from the mobile industry, shows that in the future, successful mobile messaging will require operators and Internet companies to work together to deliver successful integrated services which take advantage of each industry’s respective strengths.

The co-located Telco 2.0™ and IMS Services Forum, held in London last week, was attended by senior business managers, strategists, marketers and technologists from the major international operators, Internet companies and key vendors. During the show, LogicaCMG and STL asked delegates for their thoughts on the next five years of mobile messaging.

Nearly two-thirds (65 percent) of those questioned said they believed that interoperability with Internet instant messaging domains, such as Yahoo! Messenger, MSN Messenger, GoogleTalk and AOL Instant Messenger, was the most important factor for success of mobile IM. In addition, 28 percent believe that interoperability with SMS and MMS is crucial to the successful introduction of mobile IM, and only 7.5 percent believe low price to be the key. Delegates stressed that this integration needs to go beyond user experience and even include revenue share of the services offered.

Interestingly, 50 percent of the audience felt that enhancing SMS with presence and conversational chat features will be the most effective way to improve the profitability of today’s messaging services, enabling operators to introduce differentiated bundled tariffs and better price segmentation.

Considering the future direction of mobile operators, a resounding 62 percent of delegates stated that the competitive edge of tomorrow’s operator would lie in providing enhanced access for the end-user, offering anywhere-access to Internet services. This should be topped with a platform for security, identity management and payments facilities in addition to traditional communications services. A further 27 percent of those asked stated tomorrow’s competitive edge rests with offering increased operator-defined person-to-person communications and person-to-application access, with only 7 percent suggesting that operators will ultimately move away from pure communication offerings and instead focus on becoming content distributors.

When asked about new revenue sources for operators, 66 percent of all respondents believed that service plans that include discounted messaging services in return for advertising would be effective, half of them being convinced that it will seriously increase profitability.

Chris Lennartz, director, marketing and business development, LogicaCMG telecoms, commented on the results: “With Internet giants such as Microsoft, Google and MySpace moving into the mobile space, this research indicates a strong motive for operators to collaborate closely in order to achieve the best potential results for mobile messaging. Ultimately, the success of future mobile messaging strategies will be determined by the end-user, and if mutual relationships between mobile operators and Internet players can lead to an increasingly fluent service then everyone will benefit.”

Martin Geddes, Chief Analyst, STL, added: “We are already starting to see greater collaboration between mobile players and Internet companies through recent deals between O2 and Bebo and Vodafone and virtual world site, Second Life, although these do not yet generate upstream advertising revenues for the operators. However, the big question remains: who will control the messaging user experience and thus gain most from these new revenue streams?”

NOTES TO EDITORS

About LogicaCMG
LogicaCMG is a major international force in IT services. It employs 30,000 people across 36 countries. LogicaCMG’s focus is on enabling its customers to build and maintain leadership positions using LogicaCMG’s deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG). More information is available at www.logicacmg.com

About STL and ‘Telco 2.0™’
STL is a specialist analyst and consulting company focused on the TMT (Telecoms, Media and Technology) sector. It has a passion for stimulating innovation in this sector and catalyzing growth for incumbent players and new entrants. In May 2006 it founded the ‘Telco 2.0™’ Industry Initiative to help companies address the critical question of ‘how to make money in an IP-based world?’ The initiative includes a major market study, ongoing market research, in-house workshops, a weblog, and the Telco 2.0™ Industry Brainstorm. STL also publishes IMS Insider, an analyst service focused on IMS (IP Multimedia Subsystem), SDP (Service Delivery Platforms) and Next Generation Networks, which runs the IMS Services Forum. More information is available at: www.telco2.net.

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