The EdgeDaily Online
We asked three content developers,
Ati Bakush of Matrix Internet &
Wireless, Hishamuddin Mohamed of Howtraffic
and K K Lim of iNavigate for their views
on what is coming and who are those
that can benefit.
are some of the existing Malaysian content
owners who have taken advantage of opportunities
to make money from mobile delivery of
content to phones. And what seems to be
the best model to make this work?
The model that seems to work is still
guesswork for me but I think it has to
be a hybrid of packet-based and also one-time
charging. An example of Malaysian content
owners are those who create or own rights
to locally created content such as the
associations running sports like Football
Association of Malaysia (FAM) and the
Badminton Association of Malaysia (BAM).
Beyond sports, there are local musicians
and of course, the obvious ones are newspapers,
television channels and radio stations.
As far as the business models are concerned,
each player in the mobile value chain
should work together by focusing on their
core competencies rather than attempting
to do everything on their own. The win-win-win
business model developed by NTT DoCoMo
and widely used in European countries
is, the celcos should focus on key mobile
service delivery infrastructure, mobile
phone providers on developing new handsets,
and content aggregators and content developers
on developing new and innovative applications
and content to exploit the mobile data
bandwidth to generate higher revenue for
should content owners approach this new
Content owners should maintain
realistic ambitions with regard to revenues
from this stream. It requires a long-term
perspective where revenues may not be
immediate. Content should be priced realistically
in order to have maximum reach. Content
owners should also work closely with content
providers to tackle issues such as media
formatting for different handsets. In
the future, content may have to be manufactured
differently so that it may be more easily
adapted to the mobile medium.
role should telcos play beyond delivering
They should be realistic about the revenue
share model and not take too much out
of the deal. This stimulates the industry
and creates strong players.
Telcos should place heavy emphasis on
user education of this new technology
and explain its use to mobile subscribers.
Simply advertising that '3G', 'video streaming',
or 'high speed data' is available on their
networks will do nothing to compel subscribers
to adopt any new technology. The technology
'concept' needs to be presented to users,
to describe to them what it will do for
them on a daily basis.
They should ensure quality and a good
mix of content and services to end-users
and create a conducive business and technical
environment for innovative content and
applications to flourish. They should
also act as a single point to negotiate,
collect and pay appropriate intellectual
property rights fees to music publishers
telcos stick to delivering content, how
crucial is this role in the entire value
chain and what should be a fair revenue
deal for them?
Thirty per cent is fair and more
importantly, stimulates the market. There
is no single content house in the world
that owns 90% of its content outright.
Telcos must accept this. Most content
is a hierarchy of ownership structures.
Telcos need to find the right blend of
revenue-sharing models with content providers
and owners. Then, the business will fly.
Telcos will eventually find themselves
overwhelmed by the content market. Growing
and maintaining a mobile network is hard
enough without sourcing and creating new
applications and content. New technologies
will open up unlimited possibilities.
Imagine if an Internet service provider
(ISP) decided it would be responsible
for managing and delivering all of the
content available on the Internet to its
subscribers. As advanced mobile platforms
create new opportunities, Telcos will
need to rely on others to create new content
One of the biggest challenges which the
industry will be facing is the ability
of the telcos to upgrade their systems
to a) support new types of content and
b) manage increasing transaction volume.
Their role in the value chain is crucial,
failure to deliver content consistently
and in a timely fashion will disrupt the
value chain more than any other component.
Excluding Japan, most Malaysian operators
are fairly competitive regionally with
the current 70:30 revenue share in the
content providers' favour. This figure
has more to do with revenue leakage and
risk calculations than the type of content
which is delivered. From a network cost
perspective, it is in fact cheaper and
more profitable for an operator to deliver
a polyphonic ring tone or video clip than
it is for them to deliver a classic monophonic
are the local content owners in the best
position to generate revenue from this
I believe that the owners of the
following type of content will be well-positioned
for next-generation mobile media; popular
culture; owners of localised popular culture
such as cartoonists, and music/TV artistes;
localised news; local general and financial
news stand to be a popular source of content.
Streaming traffic information via video
will be a guaranteed success.
Media production, advertising agencies,
creative artists, TV channels and other
industries such as security, insurance
there be any losers?
If 'losers' is defined as content
owners who will not successfully sell
their IP through this medium, I would
say that local sports will be considered
government deliver better services through
Governments can most certainly deliver
better services through next generation
networks. Access to interactive self-service
applications over mobile will greatly
increase the efficiency of government
departments to their customers â€”
the public. The much touted, 'e-government'
initiative will finally momentum in usage
and viability once web-based self-care
applications are ported to mobile platforms.
The majority of self-care interactions
with government departments within the
next five years will be conducted over
mobile as opposed to the web. The facilitation
of next generation media platforms will
revolutionise this area more than any
Absolutely! Many government info
services can be better provided through
this medium, such as weather, flood, traffic
and health alerts.