CPA WAP

The Perspectives of WAP Services in Ukraine

22/01/2007

WAP services Development in Kyivstar

Traffic

0

5

10

15

20

25

30

35

40

45

50

Q4 2004 Q4 2005 Q1 2006

Current usage of WAP sites

• Creation of Content storage

• Creation of informational portals to support Company’s image

• Creation of trade points to sell for Mobile Content

Review of WAP Ukrainian market (2)

Statistics :

Daily traffic

Sites quantity

Approximate Revenue from GPRS traffic

% From Total Revenue

>1 Gbyte 19 520 000 57 %

> 100 Мbyte

100 240 000 26 %

> 10  Мbyte 445 97 000 10 %

> 1 Мbyte 1 671 34 000 4 %

> 100 Кbyte 6 998 13 000 1 %

> 10 Кbyte 16 108 3 000 0 %

> 1 Кbyte 26 018 400 0 %

Review of WAP Ukrainian market (3) TOP 20 WAP sites:

1 http://sota.org.ru/ Content

2 http://wap.amobile.ru/ Content

3 http://wap.bodr.net/ Free of charge Content: Java books, Polyphonic

4 http://c100.nsk.ru/ Free of charge music (mp3, midi, mmf, amr)

5 http://wapfile.ru/ Video, mp3

6 http://wap.siza.ru/ Free of charge melodies and wall-papers

7 http://wap.siemens-club.ru/ Free of charge Content

8 http://wap.1124.ru/ Partner’s program

9 http://wap.starport.com.ua/ Kyivstar portal

10 http://telewap.ru/ Free of charge melodies, wall-papers, video, books

11 http://wap.kotok.ru/ Free of charge Content

12 http://wap.vipmobila.com.ua/ Free of charge Content

13 http://wap.wab.ru/ Free of charge Content

14 http://wap.sota.org.ru/ Content

15 http://get.didrov.ru/ Content

16 http://xxx.wap2.ru/ Free of charge Content

17 http://partner.1124.ru/ Partner’s program

18 http://st.wapix.ru/ Content

19 http://wap.funs.ru/ Content

20 http://nnew.wap2.ru/ Free of charge Content: Java book, Polyphonic

Review of WAP Ukrainian market (4)This slide shows the average amount of traffic downloaded in one session. Here we can see that in most cases the subscriber downloads only 2-3 Kbytes

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

Reasons holding back WAP development

• Low profitability for Content Providers

• Lack of development and low quality of WAP sites

• Lack of innovative ideas and services in WAP

• Low WAP penetration among Operators’ subscribers

• Need for correct WAP settings for mobile phones

Subscribers perception of WAP advertising

• Response Rate upon advertising of SMS services via SMS distributions : 3 – 5 %

• Response Rate upon advertising of Voice services via SMS distributions : 6 – 8 %

• Response Rate upon advertising of WAP services via SMS distributions : 12 – 15 %

• Response Rate upon advertising of WAP services via MMS distributions : 25 – 30 %

Kyivstar’s activity for development WAP market of Ukraine

• CPA WAP – new program of WAP development for Kyivstar Content Providers and Content Aggregators

• Program oriented mostly for cooperation with Aggregators

• Revenue for Aggregators:

Phase 1: Revenue sharing from WAP Traffic Phase 2: Revenue sharing from sales of Content via WAP Phase 3: Revenue sharing from Premium WAP Traffic

Common Conditions of Cooperation

Kyivstar’s responsibility Aggregator’s responsibility

Technical support Technical organization

Billing organization Customer care support

Accordance to Law

Advertise support•SMS distribution•MMS distribution

Advertising Activity

Revenue Sharing for WAP traffic

• 50/50 for all off-brand WAP sites

• 60% (Kyivstar) & 40% (Aggregator) for Kyivstar branded WAP sites

(Kyivstar is responsible for advertising)

• 60% (Kyivstar) & 40% (Aggregator) for internationally hosting WAP sites

• Minimum Aggregator’s traffic is 5 GB per month

Revenue sharing from Sales of Content via WAP

• How it works :

• Revenue sharing:70% (Aggregator) & 30% (Kyivstar) for all types of Content for any price categories

• Necessity to develop the special technical program to cooperate with Kyivstar (CPA v.2.0. protocol)

Example

1. The phone receives a ”teaser” from a news service ordered by subscriber

2. User accepts to access the service by clicking on “continue”. This hyperlink points to the url of the service. Cost of service is UAH 5,-3. The phone connects to the WAP site of Content Provider 4. The Phone downloads the wap page

5. The user can now view the WAP pages containing premium content, and may choose content of interest

- Billing, WAP Push message -

6. He may for example wish to look at the pictures

7. Content provider offers services via CPA WAP.

Revenue sharing from Premium WAP Traffic

• Coming soon…..

• Ability to download any Content from external WAP sites without MT SMS

• Ability to set up any tariff per Megabyte for any URL

Content Provider opportunities with WAP solutions

• Creation of free of charge Content

Examples: One WAP site with downloadable thematic Content/Logotypes

& Melodies with small advertising. Generate more than 20 GB

• Creation of profitable informative and entertainment portals

CPA WAP Forecast

WAP Forecast

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

Oct'06 Dec'06 Feb'07 April'07 June'07 Aug'07 Oct'07 Dec'07

0

20

40

60

80

100

120

traffic MBwap sites

Next steps

• WAP Services are available only on off-portals

• Cooperation with Kyivstar in CPA project is available only via

Content Aggregators:

Point ComJump

Inform Mobilei-FreeIricom

Mobile Answers

Thank you for your attention!