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To: Eric L who wrote (18549)	3/2/2002 12:02:32 PM
From: Eric L	Read Replies (3) \| Respond to of 34857

re: More Frost and Sullivan on MMS March 02, 2002 CommerceNet Scandinavia Timo Poropudas >> MMS Riches Demand Work And Patience March 02, 2002 05:32 GMT Timo Poropudas Multimedia messaging technology will be the driver of mobile data communications but it will take work and patience to turn the potential into capital. A new report predicts over a quarter billion dollar market in 2006. Marketing consulting company Frost & Sullivan forecasts that only 6 per cent of total handsets shipments in 2002 will be MMS-enabled devices, excluding PDAs. It will not be until 2005 that the penetration of MMS handsets will reach mass market levels. Subscribers will send an average of 5 messages per month in 2002, set to rise to 28 by 2006. Traffic will grow in tandem with the average size of messages exchanged. Accruing revenues worth $68 million in 2002, MMS will add up to a $26.9 billion market in 2006, the report predicts. There are several preconditions for the mass success of MMS, according to the new report. The uptake numbers of high-speed MMS devices across Europe have to be high enough, so the high cost MMS terminals can ruin operators' ambitions to create a mass-market service from day one. The rollout of GPRS and 3G are an indispensable requirement, too. “Enhancements in network connection and data transfer rates are crucial requirements for the deployment of MMS. However, the delivery of GPRS in Europe has been repeatedly delayed,” the report reminds. The study also points to the cost of service delivery as the most prominent inhibitor to the progress of MMS. Operators will not be able to replicate the success of SMS unless the service is rendered at an affordable cost per subscriber. Operators need to install billing systems capable of charging based on the data volume, on the value of the content, on the type of content or on a pay-per-view basis. Pre-pay customers will have an important role in the development. “Therefore, the implementation of a real-time billing system for pre-pay customers is a precondition for reaping the full rewards of MMS,” the report states. Frost & Sullivan foresees interoperability and roaming problems to have an adverse effect on MMS uptake during 2002 and 2003. << - Eric -