The main trend in the Russian mobile content market

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The main trend in the Russian mobile content market

In line with the world of the web, the Russian mobile world is growing rapidly. In 2006, the Russian Value Added Services (VAS) market grew steadily and continued to grow in the first quarter of 2007, reaching USD 615 million (CP). Aggregators and customers grow with you. Major Russian mobile operators have introduced more aggressive Russia phone number list and open policies on the VAS stage, introduced new WAP portals and services, and significantly reduced the number of content partners. The share of VAS in the structure of total operator revenues reached 14% in the first quarter of 2007. With the launch of the first 3G network in 2007-2008, Russian operators will only increase content offerings. Consolidation and stricter operator guidelines will reduce the number of major content providers to 80-100 companies. Over the past year, CP has improved its ability to provide IVR and RBT services and advocated for more video content, mobile games and community services.

Key CP called for better content delivery, new product launches, and expansion of the global market. The formula for success in the Russian VAS market today is ensuring quality content and diversifying products and services. IVR based on TV SMS lottery, RBT and mobile games participate in the most popular and successful areas for content services. IVR services saw Lady Luck’s revenue grow in 2006. In addition, continued growth in WAP penetration, community mobile services, and user-generated content promises positive results this year.

However, the markets that are resurgent have a pinch of salt. Piracy is on the rise, while poor quality content and SMS spam remain major barriers to faster market development. Moreover, the high volume of WAP traffic and a high proportion of  b2c phone list operators also have an impact on market developments.

What’s the name of the game?
Pavel Roitberg, Head of Products and Services at MTS, said at the last forum for mobile content in Moscow in June 2007: “We have changed the rules of the game.” While MTS, Russia’s largest mobile operator, has 250-300 content partners, the analysis found that 70% of all revenue comes from 15 main partners, 20% from 20 CP, and 10% from 35 partners. As a result, MTS canceled contracts with inefficient partners, reducing the number of partners to around 100 companies. And it’s a pretty much the same situation for its competitors VimpelCom and MegaFon.

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