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среда, 29 апреля 2009 г.

MTS bets on content

Recently MTS announced launch of Omlet project.

This project is one of the major events on VAS market in Russia. It is purely convergent service. Subscribers are going to have similiar experience from web and from mobile where they are able to get content: music, video, game, and socialize. MTS made mix of web TV and VOD, mobile TV and VOD, games and social capabilities. Main priority according to Pavel Roytberg is to attract significant subscribers base to this portal - to get them consume service. They plan to attract 500,000 subscribers till the end of 2009 and 1,600,000 one year later. Overall investments are thought to be about $5 mlns. The result could be seen in near future - will Omlet be our legal content shop?

In Russia it is one of the first Mobile TV offerings with such a broad range of content. As example, Megafon Mobile TV still acts similiar to test zone with small amount of subscribers and live channels without any further development (solution is based on proprietary software with no features for enabling video in 2,5G networks). Beeline seems to have such a project in plans but facing huge financial problems at the moment and hence left all development projects on pause. So, MTS is confirming its status of VAS leader as from previous year VAS Conference. Moreover, it is one of the first projects in the world - there are single deployments of convergent web TV and mobile TV under single brand.

There is still a problem with piracy in Russia. Very small portion of content is being sold legally. But all change and this is not an exception. Soon legal content market share will grow and Content Shop projects will gain more popularity and revenue to its owners. And MTS bets on it. Long investments in right direction.

I believe that it could help MTS raise mobile traffic and gain revenue on content sales. I think that Content is one of the main trends in MNO business development aming others such as Mobile Advertising, Mobile Internet (traffic) and Mobile Commerce.

Thanks,
Denis.