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Mobile Web / Internet Monetization in Asia Growing Rapidly

September 10th, 2013

Mobile Monetization Trends AsiaMobile is more incremental to Internet traffic than users at this stage. Monetization varies by segment, with eCommerce and games seeing earlier and easier monetization on mobile traffic than advertising. For offline companies, wireless technologies can be a productivity tool and hence important competitive advantages, and growth in mobile usage also creates new opportunities for other parties in the value chain (i.e. device makers, telcos, software, data analytics providers and app developer).

Industry practitioners see mobile to be incremental to overall Internet traffic, but monetization in certain segments can see transitional issues due to evolving business models, industry fragmentation, device limitations and payment issues.

How are Telcos Doing in the Mobile Data Boom ?
Wireless companies are accelerating 2G to 3G migration with lower entry data plans and cheaper smartphone offerings.They are upholding or moving to tiered pricing. They are also controlling handset subsidies and shifting subsidies mainly to mid/high-end phones with higher ARPU. For the Long Term, they are focused on upgrading 3G/4G networks to improve user experience and gain network advantage and improving their own mobile content / application offerings to fight OTTs and to avoid being just the
dump pipe.

The Chinese smartphone market is expected to grow from about 170mn in 2012 to over 350mn in 2013 driven by (1) low-cost, high-performance phones, (2) maturing Android/apps ecosystem, and (3) telco data plans/subsidies. Slowdown in Smartphone growth in 2014 will be offset by Tabelts.

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