Major Trends of the Russian Mobile Content Market (2006-2007)

The Russian VAS Market in 2006-2007

In lined up with the Web universe the Russian versatile world is arising quick. In 2006 the Russian worth added administrations (VAS) market grew consistently, and proceeded with its development in 1Q 2007, arriving at USD 615 million, a 34% year-on-year development, revealed ComNews Research. Each of the three central parts of the VAS market, administrators, content suppliers (CP) and aggregators, as well as endorsers are developing with it. Significant Russian versatile administrators presented more forceful and emphatic strategies in the VAS scene, sending off new WAP-entrances and administrations and seriously diminishing the quantity of content accomplices. The VAS share in administrators’ general income structure came to 14% in 1Q 2007. With the send off of the primary 3G organizations in 2007-2008, Russian administrators will just build their substance offering. Union and stricter arrangement by administrators cut the quantity of center substance suppliers to 80-100 organizations. Last year CPs leveled up their abilities in giving IVR and RBT administrations, pushing for more video content, portable games and local area administrations.

Significant CPs pushed for better quality substance offering, presentation of new items and worldwide market development. Today the triumphant equation of the Russian VAS market is guaranteeing content quality and expansion of items and administrations. IVR, SMS-based TV lotteries, RBT and versatile games featured in the most well known and fruitful substance administrations segment. IVR administrations got the “Good fortune” of incomes in 2006. Moreover, ceaseless WAP infiltration development, versatile local area administrations and client created content all guaranteed that this year will be positive.

Notwithstanding, the generally resurgent market has its spot of salt. Robbery is on the ascent, while low satisfied quality and SMS-spam stayed a huge deterrent to the market’s quicker improvement. At long last, staying high WAP-traffic rates and administrators’ high income shares VSMB act as the extra weight to the market advancement.

What’s the Name of the Game?

Pavel Roitberg, Head of Department of Products and Services, MTS, noted at the last Mobile Content Forum held in Moscow in June 2007 that “we have changed the guidelines of the game.” While before MTS, the biggest Russian versatile administrator, had 250-300 substance accomplices, the examination showed that 70% of all incomes come from 15 significant accomplices, 20% from 20 CPs and 10% from 35 accomplices. Therefore, MTS stopped agreements with insufficient accomplices, in this manner slicing their general accomplice number to around 100 organizations. What’s more, this is basically similar circumstance for its opponents, VimpelCom and MegaFon.

Bad quality of content, as well as a wealth of fake offers, decreased endorsers’ confidence in CPs and brought about a sharp fall of content deals in 2005. Gaining from that negative insight, significant administrators and content suppliers hurried to guarantee the better nature of versatile substance. For instance, MTS made a substance quality control program making its accomplices straightforwardly liable for the substance quality. Simultaneously, significant Russian CPs made a relationship to control portable substance contributions.