AUS OPERATORS RAMPING UP FOR MOBILE DATA PUSH

Communications Day, Tim Marshall, 16 August 2005

Aus operators ramping up for mobile data push

Australian mobile operators are just months away from a major mobile data marketing push as they attempt to arrest slowing growth and boost market acceptance of new multimedia messaging products.
With various systems in place with all four of Australia's mobile networks, North American developer Airwide Solutions is tipping a late 2005 surge in activity as operators seek out ways to better utilise their infrastructure. Airwide CTO Vincent Kadar says that to date, operators have been ineffective in monetorising their mobile data network and that with voice services growth now a real worry, there is a growing momentum behind new application to person (A2P) systems.

"They are not even monetising what they can out of their existing 2.5G network. There are a multitude of capabilities on the handsets out there, such as MMS that are not being utilised. How many operators do you know that are actively promoting MMS-based, event-based services? Virtually none," he said.
A provider of A2P software and device control systems with a strong background in SMS solutions, Airwide is the relatively young product of the merger of Taral Networks and Schlumberger Messaging Solutions. The company is currently ramping up for an expansion into new growth markets such as Asia Pacific and is positioning Australia as one of its key springboard markets.
"In some instances, or in fact in most particular instances, this ends up being our first deployment ground. In many cases the operators in this market have a very unique network infrastructure and unique offering and are part of a global footprint, so they become a test-ground for either a global initiative or for a set of solutions that may only occur in this market," Kadar said.

Indeed, compared to voice revenues, the prospects for mobile data growth in Australia make early operator investment in new systems and revenue streams seem fairly obvious. According to a recent IDC report, spending on non-voice services in Australia this year will total $1.53 billion, and will grow 10 times the rate of the voice market over the next five years. Kadar says that significantly, the adoption of new A2P systems also allow operators to tap all-new areas of growth, such as marketing companies, without straining its existing subscribers.

"What we are going to see, not just because of 3G but as a new strategy for pushing content, is we're going to see real build-outs and promotional campaigns towards the end of this year from the operators here locally for A2P multimedia services. Putting in gateways, putting in push servers, being able to push out content that you can then connect back in and view," Kadar said.

STEPPING STONE: According to Airwide Asia Pacific president Peter Lynch, a strong base in Australia also provides a good stepping-stone into the regional market. For instance, a good deployment with Optus could provide for a mass rollout throughout the Singapore Telecom - led Bridge Mobile Alliance, which now counts operators in eight countries, including India, a major target for Airwide. "It's a great opportunity, something that we'd like to be part of. We've had some initial discussions with Bridge Mobile and they expressed an interest in our device management platform," Lynch said. "They want that common customer experience wherever they are in the Bridge Mobile network and device management is certainly well positioned for that."
With funding from equity investors including Key Venture, Kodiak, Axiom and Artiman, Airwide is putting together plans to support its growth in the Asia Pacific, and other growth channel partnerships with the likes of Ericsson and Alcatel, but is expected to increasingly invest in its own facilities over the coming years.

Kadar said, "The investors, as we invest in growth, are completely backing us. They've got pockets that they can dig into even deeper to help us expand."