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MMS Market is Multi-year Trillion Dollar Opportunity
Posted: 06-Nov-2001 [Source: Mobile Streams press release]

[Mobile Streams is predicting that 20 billion multimedia messages will be sent globally in December 2006, growing to 65 billion by December 2008.]

Mobile Streams, the mobile dot com, today published the latest of its highly-regarded research reports, Data on MMS. Multimedia messaging is heralded by all players in the mobile market as the killer application for GPRS and key business case driver for 3G. New "Data on MMS" Report therefore takes a timely look at the stage of development of the multimedia Messaging (MMS) market.

The report's author, Simon Buckingham, believes that "The transition from SMS to MMS is akin in importance to the mobile market as the transition from DOS to Windows was for the PC market. However, the MMS market will take several years to reach critical mass as SMS continues to spread around the world, Enhanced Messaging (EMS) is deployed and new high end multimedia terminals are developed."

KEY FINDINDS This "Data on MMS" report breaks new ground in defining MMS timeframes, adoption rates, statistics, terminal and standards issues and the like. The report breaks news of many new facts, including:

- The first MMS terminal, the Ericsson T68, has been delayed by 3 months to end of Q1 2002. Ericsson cite interoperability testing issues as the reason for the delay. Ericsson is initially shipping the T68 with EMS and without MMS, another indication of the growing momentum behind EMS as an interim standard between SMS and MMS.

- The MMS T68 is reviewed in the report and is a superb breakthrough device in terms of form factor, user interface and user experience.

- Network operators have placed 40 or so MMS commercial or trial contracts, indicating a high degree of interest from network operators in MMS.

- Whilst MMS is being positioned as an evolution and extension of SMS, in fact the two services are very different. Substantial differences between SMS and MMS characteristics have been found in terms of user behavior, discretion levels, device types, service access and complexity. Unlike SMS, most multimedia messages will not be sent from phone to phone or person to person, instead they will be sent from or to PCs and be value added services based around still images.

- A surprise early leader in MMS is Ericsson which has between 25 and 35 MMS infrastructure trials.

- Whilst infrastructure investment in MMS is gathering pace, other services are being reduced. For example, Ericsson has frozen development of its SMSC and Motorola has frozen development of its WAP Gateway.

- Siemens is reselling MATERNA's MMSC on a non-exclusive basis.

- Motorola has 2 MMS contracts.

- Logica has an MMS trial with Orange UK.

- There are two groups of MMSC vendors: the incumbents and the new entrants. The incumbents are existing SMSC suppliers: Logica, Comverse, CMG, Nokia, Sema, Ericsson, ADC, Motorola and Openwave Systems. Materna, Siemens, Alcatel, Unisys, Wiral, Tecnomen are new entrants in the MMSC infrastructure market. All of these companies and their MMS strategies are profiled in the report.

- Mobile Streams is predicting an average expenditure per customer on multimedia messaging services at 48 US dollars per month, spent on various services from subscription.

- At an average price of 1 US dollar per multimedia message, the mobile messaging market will by within ten years be a multi-year trillion dollar opportunity.

DEFINITION The Multimedia Messaging Service (MMS) is as its name suggests the ability to send and receive rich media messages comprising a combination of text, sounds, images and video to and from MMS capable handsets. The Multimedia Messaging Service (MMS) confers the ability to send still images such as mobile postcards, mobile pictures, mobile screensavers, mobile greeting cards, mobile maps and business cards. Additionally, moving images, cartoons and interactive video will also be supported by Multimedia Messaging (MMS).

New mobile network infrastructure is needed for Multimedia Messaging (MMS). In addition to implementing the new bearer services such as GPRS and 3G, new network elements such as Multimedia Messaging Relays and Stores will be needed. MMS is a service that will run over IP based mobile networks--initially GPRS networks and will later be ported to EDGE and 3G networks. Over time, mobile messaging is evolving from SMS to EMS to MMS.


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