Mavam Argentina 2013 - ENGLISH

MAVAMAcision Monitor for Mobile VAS

© Acision, August 2013.

All rights reserved.

Prepared by

ARGENTINA

3TH EDITION

MAVAM | Acision Monitor for Mobile VAS

The third edition of MAVAM (Acision Monitor for Mobile Value Added Service)Argentina, presented by Acision, is specifically centered on Instant Messaging and mobileValue Added Services. The report reinforces its commitment to provide the industry andoperators with information to understand the market trends that enable the developmentof mobile value added services in order to increase usage and acquire new customers.

The rise in popularity of Smartphones is bringing the internet more and more into thehands of users. With this, new ways for end user interaction and connectivity are beinglaunched over networks all the time, and today, SMS and chat-based over-the-top (OTT)and instant messaging services coexist with traditional voice services. This providesconsumers with a variety of new ways to communicate dependent on the recipient anduser usage trends.

The report highlights that the number of mobile subscribers in Latin America continuesto grow, resulting in an increasing use of value-added services and total revenues. InArgentina, (VAS) accounted for 49.4% of the operators’ services sales in the secondquarter of 2013, representing an increase of 30.7% compared to the same period in 2012.VAS sales between April and June rose to $ARG 5.26 billion (USD 1.004 billion) withSMS accounting for over 57% of VAS revenue at $ARG 2.98 billion (USD 570 million).

Mobile Internet services represent that highest area of growth within VAS in Argentina.Sales in the second quarter of the year reached $ARG 1.79 billion (USD 342 million),representing growth of 50.9% compared to the same period in 2012.

In this market there is a coexistence of Smartphones’ growth and the adoption of instantmessaging: there is no replacement, but complementation. And as it happens in othercountries of the region, there are plenty of packed SMS, data and voice services.

Additionally, we are observing a trend in which current consumers are increasingly usingmessaging service in several platforms and devices –a global phenomenon observed notonly in this report but also in other assessments and data from the industry. Today,technology consumers want something 'extra' –a combination of universal reach,incomparable reliability and enriched functions– that could only be met by using multipleservices at the same time. There is no unique application meeting all consumers’messaging requirements that runs over any platform, any device all the time. However, isthe operators’ responsibility to play that role by providing a unique chat/messaging servicein the future?

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Editorial

Fatima Raimondi

Acision

President Latin America


With the Chat OTT services being incorporated in different platforms, such as socialnetworks, there are some moves towards platform consolidation. However, mobileoperators globally are taking a number of approaches to address this trend, by eitherpartnering with OTT partners or launching their own Rich Messaging and RCS typeservices, which may one day provide one access point for all messaging. When questionedabout such a service in Argentina, referring to GSMA´s RCS initiative, "Joyn", therespondents showed a s hypothetical acceptance with (60%) stating they would surely use it.

In addition, operators are looking at ways to enrich messaging services, such as enhancingthe traditional SMS experience. In this report we highlight some of the services whichoperators can activate across their network and their appeal to consumers. Whenquestioned about a range of services, these triggered some high interest, showing that ifoperators were to launch some of this functionality it would fit with consumerexpectations, and enable new routes for service monetisation and incremental revenue.We hope you find the report interesting reading, providing analyses on user preferences inchat services; instant messaging, SMS and MMS, as well as the possibilities of generatingother revenues based services on SMS that empower the value added business and userengagement in Argentina.

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Index

3 Editorial

6 1. Introduction 7 1.1. Value-Added Services in the World11 1.2. Value Added Services in Latin America14 1.3. Value Added Services in Argentina

17 2. MAVAM (Acision Monitor for Mobile VAS)

18 3. Messaging services (Special topic)20 3.1. SMS28 3.2. MMS30 3.3. Instant Messaging (IM)35 3.4. SMS vs IM39 3.5. Joyn

40 4. Mobile Internet40 4.1. Use of the Internet through Smartphones41 4.2. Plan Type41 4.3. Internet uses on the Smartphone42 4.4. Social Networks44 4.5. Mobile Banking44 4.6. Mobile Commerce45 4.7. Maps and location45 4.8. Marketing and Mobile Advertising

47 5. Conclusions

49 6. Glossary

52 7. Technical File

53 8. Team

The year 2013 has been focused on operators launching high speed, fixed (Fiber), as wellas mobile (LTE/4G) networks. In the United States, LTE launches are contributing tomarket growth, while Europe is a region still dominated by 3G. In Latin America, tworaces are taking place: one for 3G universalization, together with a decrease inSmartphone prices with Firefox supported web phone expectations, and the other, forLTE networks to launch which, as of the closure of this report, stood at 21.

In developed countries, handset-grant elimination models, device-to-device shared dataplans and operators' information systems redefinition are being tested, so as to offerintegrated services and customized options that will allow fostering consumption andincreasing the ARPU.

This global crisis and the market dynamics are generating a new merge and acquisitionprocess among operators as well as through the purchase of, or interest in, application

and content companies.

MAVAM | 1. Introduction

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Introduction1

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Graph 1.1

Analyzed Operators

1.1. Value-Added Services in the World

To understand the value added services (VAS) business worldwide, we analyzed VASevolution across the biggest mobile operators in various regions around the world. Wecompared the Q1 values for 2013 and the same period in 2012, except for China Mobile,which publishes annual data as of the closure of 2012 and is compared to 2011.

The companies evaluated are:

• América Móvil – Latin America• AT&T - United States• China Mobile• Orange (France Telecom) - France• NTT Docomo - Japan• Telecom Italy• Telefónica• Telefónica Spain• Telefónica O2 United Kingdom

• Telefónica O2 Germany• Telefónica O2 Ireland2

• Telefónica O2 Czech Republic• Telefónica Latin America

• Vodafone• Vodafone United Kingdom• Vodafone Germany• Vodafone India

1 As of the closure of this study, Telefónica

was in the process of selling this operation.2 In the sale process as of the closure of

this edition.

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In most cases, these operators suffered decreases in their total ARPUs (Voice+VAS) indollars, some of which is due to the change in exchange rates.

Among the companies studied, ATT kept its ARPU stable and Vodafone Germanyincremented it. European suppliers register ARPU’s sharpest drops for different reasons;firstly, they cite that the economic crisis has been preventing greater consumption. Onthe other hand, some companies mention in their financial statements, that it ispredominantly due to the negative impact of EU Regulation 531, which by mid-2012,imposed control over retail prices of roaming services and a reduction in mobiletermination rates, among other regulating measures. And lastly, increased competition haspushed service prices downwards even more as operators fight to retain their customers.

In the case of Vodafone Germany, the drop in voice ARPU is compensated by VAS as aresult of the increase in Smartphone adoption and SMS, voice and data packages. As a

Graph1.2

Total ARPU Variation - Selected OperatorsIn USD - Q1 2012-2013

Source: Convergencia Research based onoperators' financial statements

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result, Vodafone‘s network plans are tailored to reflect this, which include SMS,unlimited calls, and a large capacity for data services for any Smartphone model, whichmay also be combined with fixed services, such as ADSL.

ATT maintained its ARPU as the drop in voice usage is compensated with VAS generatedby Smartphones as well as by the new users who choose a more economical data plan line.

NTT Docomo drops are partly explained by the yen devaluation compared to the dollar,which accumulated 12.8% in the last year.

In the case of Telefónica Latin America and América Móvil, the ARPU fall is mainlyexplained by the local currencies devaluation compared to the dollar (Brazil, Argentina,Venezuela, among others), which is not compensated by the appreciation of othercountries' currencies (Mexico, Colombia, Peru).

Graph 1.3

VAS Share / ARPU ServicesIn USD – Q1 2013

3 In the sale process as of the closure

of this edition

VAS ARPU continues increasing its share over the total revenue. NTT Docomo,Telefónica O2 United Kingdom, Telefónica O2 Ireland3, Orange (France Telecom), and Vodafone United Kingdom, already obtain 50% or more of their value-addedrevenues.

Source: Convergencia Research based onoperators' financial statements


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Graph 1.4

Variation in revenue contribution for Voice services vs. total ARPU VASBetween Q1 2013 and same period in 2012

AT&T reports on SMS combined with voice rather than separately, so their VAS cannotbe compared exactly to the rest of the operators.

Although, VAS relevance grows, in absolute terms, some operators also suffered drops inVAS as well as Voice ARPU. Generally, they are European operators and this is explainedby the crisis and competition.

Source: Convergencia Research based on operators' financial statements


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1.2. Value Added Services in Latin America

In the second quarter of 2013, Latin America registered 687.354 million mobilesubscribers and 116% penetration. This year’s growth in the sector will be guided by a)increased Smartphone adoption and the potential positive effect of Webphones with aFirefox operating system that were launched in late June 2012, and to a lesser extent,tablets; b) LTE service evolution in Mexico, Colombia and Paraguay and LTE launchesin Brazil, Chile and other countries to follow later this year and c) development ofother value added services, such as mobile payments, content, operator OTT servicesand M2M.

Spectrum bids expected in different countries for the next year could bring incorporationof new players. As of the close of this report (June 2013) for instance, DirecTV hadobtained spectrum in Colombia. It is also possible that, as from this year, some mergersand acquisitions may take place.

Lines and revenue growth rates in Latin America, which are higher than those ofdeveloped markets, are strategic for operators groups. For example, in the case ofTelefónica, revenues generated in Latin America are already equivalent to 51% of thegroup's revenues, and in the case of América Móvil, Latin America's strength allowed it tostart, its expansion towards the European continent, between 2011 and 2012, with theacquisition of interests Dutch operator KPN, among other acquisitions.

Operators believe increasing the postpaid database due to the rise of Smartphones and, atthe same time, they restrict the accounting criteria of prepaid lines, so in some casesdecreases are observed in the number of lines.

Graph 1.5

Smartphones and mobilebroadband lines share

over the total linesQ2 2013

4 Excluding Nextel

Source: Convergencia Research


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Fuente: Convergencia Research

In several countries, the ARPU is adversely impacted by a reduction in interconnectionrates. Voice traffic appears to grow although prices are reduced by the packetizing effect.

SMS and MMS service usage continues to grow but at lower rates than previous years.Latin America still isn’t showing a cannibalization effect from instant messaging (IM)and OTT platforms, such as in Europe. Meanwhile, SMS prices also suffer reductionsdue to packetizing.

Graph 1.6

Mobile telephony growth bytype of revenue

2Q 2013 variation vs.2Q 2012

variation in U$S billions

Source: Convergencia Research

Graph 1.7

Mobile telephony sales bytype of revenue

2Q 2013 vs. 2Q 2012 in U$S billions


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During the first semester, some devaluations (Argentina, Venezuela and Brazil, amongothers) and local currencies appreciations occurred, and as a result, total revenuesmeasured in dollars were affected. Meanwhile, in the local currency, most countries sawan increase in their total sales.

Mobile broadband connections represent 20% of the lines, and Smartphones 18%, andboth of which push VAS share in total revenues.

Total revenues in the second quarter represented 25.29 billion dollars, growing 12%compared to the same period in 2012. Voice generated USD 13.96 billion and had a 1%drop in dollars. VAS increased 24% and generated USD 7.67 billion during the quarterand, as a logical consequence of the rise in Smartphones adoption, handset sales grew by61% compared to 2012 and added up to USD 3.64 billion during the quarter. Revenuegrowth is therefore driven primarily as a result of VAS and devices sales.

VAS represents 35% of Latin America operators' revenues. Mobile internet was the greatestrising VAS service(33%) and represents 50% of the total VAS market. SMS represents 41%of VAS and grew 17% in the second quarter 2013 compared to the same period of 2012.

Graph 1.8

VAS sales share2Q 2013 in U$S billions

Graph 1.9 VAS ARPU share / ARPU Services2Q 2013 in U$S


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1.3. Value-Added Services in Argentina

This MAVAM edition analyzes operators' results as of the second quarter of 2013. Thecountry has 58.85 million lines, equivalent to 142% penetration of the population.Growth for the second quarter of 2013 was5.6% when compared to the same quarterof 2012.

Convergencia Research estimates that as of the closure of the second quarter there were12 million mobile broadband lines, out of which 90 per cent belong to Smartphones.

Mobile internet is driving growth in the postpaid base and there are many offersrelated to packaged services, including SMS, data and Voice bundles.

The total local currency ARPU increased by approximately 17% for rate variations aswell as for a bigger use of data services (pushed by Smartphones) and SMS. The ARPUin dollars suffered a 4% reduction in the regular currency due to the devaluation ofthe local currency against the dollar.

The mobile business liquid sales, including handsets in the second quarter of 2013,were $ARG 12.462 billion (USD 2.378 billion) and increased by 23.1% year-on-yearin the local currency (4.54% in dollars due to the currency devaluation).

Graph 1.11 Share by type of voice line. vs. Mobile broadband2Q 2013 variation vs. 2Q 2012

Graph 1.10 Market shareby operatorIn thousands of lines for 2Q 2013

Source: Convergencia Research.

Source: Operators' Balances Sheets. Excluding Nextel.

5 Excluding Nextel and without considering

multiple SIM, or low or null traffic lines

(between 20% and 30% of the total).


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Source: Convergencia Research calculations based on operators' balance sheets. Excluding Nextel

In the case of services (Voice + VAS), the year-on-year variation was 18.75% (0.85%in dollars) equivalent to $ARG 10.657 billion (USD 2.034 billion) of liquid invoicingin the first six months of the year, while handsets sales added up to $ARG 1.805billion (USD 345 million) and grew 57% in the local currency (33.4% in dollars).

In Argentina, as well as in other countries of the region, the trend consists of largerrevenue growth coming from handsets rather than services sales. This is due to the saleof smart devices that have a higher value than traditional telephones. Generally,operators tend to compete to obtain higher value customers offering more expensivehandsets with fewer subsidies.

The growth in revenue is leveraged by VAS. While revenues from voice services grewonly 9% (in local currency), VAS increased by 30.8% in the second quarter of 2013,compared with the same period of 2012.

Graph 1.12 Total ARPUmain operatorsIn $ARG and in U$S 2Q 2013

In US$ 2T 2012Graph 1.13 Mobile telephony business salesIn $ARG millions and in U$S millions 2Q 2013 vs. 2Q 2012

Source: Operators' Balances Sheets. Excluding Nextel.


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Source: Convergencia Research. Excluding Nextel

Between April and June 2013, value-added service sales reached $ARG 5.263billion(USD 1.004 million), and represent 49.4% of mobile service sales.

SMS and MMS sales in the second quarter were of $ARG 2.986 billion (USD 570million), 20.8% more than in 2012.

Mobile internet posted sales for $ARG 1.794 billion (USD 342 Millions) and grew50.9% compared to the second quarter of 2012.

The other VAS (content and other services) grew a 32% in the local currency(+12.25% in dollars) and posted $ARG 482 billions invoicing (USD 92 million).

Graph 1.14

VAS sales by type In billions of $ARG and billions of U$S - 2Q 2013

MAVAM | 2. MAVAM (Acision Monitor for Mobile VAS)

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MAVAM (Acision Monitor for Mobile VAS)2

The Acision MAVAM study's objective is to analyze the evolution of services in LatinAmerica. This has been carried out in Brazil since 2009 and in Mexico and Argentinasince 2010.

This Argentinean edition has a new content structure adapted to support the changes in the market analyzing new aspects of mobile value-added services.

This edition has the following characteristics:

1. 833 internet surveys (CAWI).

2. The sample includes 50% cases in the Federal Capital City and Great BuenosAires, and 50% in the rest of the country. The sample was selected respecting thepercentages of inhabitants per region, revenue levels, gender and country age.

3. This edition's special topic is messaging services, and specialemphasis was placed on the analysis of Smartphone users.The Smartphones percentage found in the sample ishigher than the one registered nationally, this is becauseof the methodological bias that the internet surveymethodology implies. For this reason, the sampledoes not replicate the subscription modality andmarket share percentages. Smartphone use datarepresent smartphone users but do notrepresent the total number of mobiletelephony users in the country.

4. Other analyzed topics in this editioninclude: Mobile internet, social networks,mobile commerce, mobile banking, maps andlocation, and marketing and mobileadvertising.

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MAVAM | 3. Messaging services (Special topic)

In December 2012, the first SMS turned 20 years old. Since then, short messages viamobile phone networks have turned into a pillar for mobile communications, due totheir massive nature as well as to the service profitability. SMS has won popularity inevery demographic strip due to its simplicity and reliability. In Latin America, with aprepaid base that may be around 80% and 90% of subscribers and an ARPU of aroundUSD 10, the price ration between the SMS and minute of voice was fundamental whenexpanding the frequency of use of text messages. In those countries where SMS wasintroduced with a unit value per message sent substantially lower than that of voiceminute, the frequency was higher6.

In 1996, ICQ was created, the first computer instant messaging system. Then, ICQ wassold and, as from 1999, Microsoft Messenger has turned into the number one desktopchat platform. Some years later, MSN changed its name for Windows Live Messengeruntil 2011, when Microsoft bought the IP voice system Skype and decided to integrate,under this latter brand and platform, instant messaging and IP voice services.

With Smartphones, instantmessaging (IM) reached mobilephones and users adopted it athigh speeds. In previous MAVAMeditions, we could observe that,despite the many entertainmentoptions, the telephone's mainfunction was still communicationwith others: voice, SMS, e-mail,instant messaging and socialnetworks.

The instant messaging growthis such that according toInforma consulting firm, in2012, for the first time,more chat messages thanSMS messages wereinterchanged in the world.However, neither service is aperfect substitute: SMS may besent from, and received in, every

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Messaging services (Special topic)3

6 See MAVAM Brazil, Mexico, Argentina,

earlier editions

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phone and from any operator in the world, while instant messaging systems are almostrestricted to smartphones and also require data connection.

Users' appetite for instant communication gives rise to new Chat companies with variedbusiness models. From the emblematic BlackBerry Messenger (BBM) linked to themanufacturer's operating system, to WhatsApp -which plans to start charging for itsservices at some point- to Line, which revenue comes from the sale of digital assets(stickers and games). Moreover, besides text chat, messaging platforms addfunctionalities such as sending photos, IP voice and other communication alternatives.

The number of IM ventures is giving rise to a merge and acquisition wave, where anymember of the telecommunications value chain may be interested in acquiring or being

acquired by another one. For example, Facebook acquired Beluga, DeustcheTelecom bought Pinger, Yahoo acquired interest in Kakao and

Samsung has shown some interest in MesaageMe and Viber,according to versions circulating in different media.

Operators and even social networks try toincorporate chat for their customer communities.For example, in 2011, Facebook launchedFacebook Chat; in 2012, Telefónicalaunched its TuMe rich communicationsapplication. And it is precisely richcommunications that the market aims at.Even with initiatives like the Joynapplication, driven by operators andmanufacturers through the GSMAssociation.

All these transformations happen atrecord speeds, that is why the specialtopic of this MAVAM edition isinstant messaging.

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3.1. SMS

The 95% of respondents used the text messaging service (SMS) in the last three months. The user level remains constant, despite registering a 2% decrease against the first quarter of 2011. The difference could be explained as the sample in this edition shows a higher percentage of Smartphones and postpaid services than previous editions.

SMS use is more frequent in Feature Phones (97%) than in Smartphones (93%).

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3.1.1. SMS frequency of use

In Argentina, according to data provided by Indec, 120 SMS are sent on average permonth. However, the figures reported by operators on different occasions are almostthree times this number.

Graph 3.1 Test message users (SMS)Basis: total sample (833 cases - 1Q 2013)

Graph 3.2 SMS: Feature Phone Usersvs. Smartphone UsersBasis: Feature Phones 365 cases, Smartphones

468 cases (1Q 2013)


Operators agreed that the SMS is still current as Smartphones penetration is not yetfull7. Fernando Del Río, Business Director with Claro Argentina, pointed out that theSMS is a faster service, though as the Smartphone use grows, the number of SMS sentdecreases; and but he added that due to packed services and its subsequent serviceprice reduction, people still prefer it. He also considered that operators did not deemit a priority for the service to grow given that the natural evolution is instantmessaging-oriented.

Hernán Larrosasa, mobile productions development manager with Movistar, said that,in their case, the service keeps growing but at a lesser ratio, affected by the idea thatinstant messaging is free of charge (although it is not). He also explained that itsgradual disappearance is a natural consequence of the technological evolution, as thedemand focuses on data services. To satisfy such demand, Movistar launched in Mayan unlimited message, data and SMS service for around $3.90 per day.

Personal stated that the SMS business keeps growing although at a slower pace, andthat its customers’ base sends 305 SMS average per month. For this operator, theservices are supplementary and coexist. The operator launched Personal Messenger, aChat application independent from the device, available for the operator's customersand a multi-device that is activated by sending an SMS. Personal continues makingthe most of the SMS through added value such as Facebook via SMS and competingwith lower price packages in the market.

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7 See note published in Convergencialatina.com

Graph 3.3 SMS Traffic - JuneEvolution 2010-2013 - In millons


3.1.2. Plans and recharges

In MAVAM's sample (with a higher Smartphone percentage as the special topic is InstantMessaging and where given the sample type the national prepaid and postpaid proportionis not maintained), the preponderant hiring modality is postpaid, in the case of

Smartphones (83%) as well as in the case of Feature Phones (62%).

Among those who have a postpaid plan, most of them said they hire more than 100 SMS(22%) or pay per message (21%).

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Graph 3.4

SMS use of frequency(Text message)

Sample: SMS users in smartphones and

feature phones - 435 y 355 cases,

respectively

Use of frequency changes depending on the device. The clients with Feature Phones tendto have higher frequencies in the options of quantity of sent SMS per day. This behaviorwould be indicating that those who have a traditional phone make a less intensive use oftext messaging from those who have a Smartphone.

Graph 3.5

Hiring plans by device type

Sample: Feature Phones (365 cases) -

Smartphones (468 cases)

SmartphoneFeature Phone


Only 8% hire unlimited SMS plans. 47% do not hire additional SMS plans.

People who told they had a prepaid plan were asked how many SMS were normallyincluded in the recharges they bought. 68% does not know how many SMS are includedin the recharges they make.

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Graph 3.6

SMS additional plans andhiring (postpaid)

Sample: Postpaid users (432 cases)

Graph 3.7

SMS plans and recharges(Prepaid)Sample: Prepaid users (219 cases)

3.1.3. Difficulties in SMS use

Questions were made about the difficulties experienced regarding SMS and MMS use inSmartphones and Feature Phones.

The main difficulty for SMS use for Smartphone users in Argentina is its cost (47%), assending SMS constitutes a more expensive option than other messaging alternatives. The

second difficulty stated is not knowing if the person I want to get through is available(39%), a characteristic inherent to instant messaging platforms.

Graph 3.8

Difficulties inSmartphone SMS useSample: Smartphones and SMS

users: 464 cases - Multiple Choice


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3.1.4. SMS relevance

To know the relevance that the SMS service has for users, they were asked what they would feelif operators eventually eliminated the service. The 60% considered that the lack of SMS service

would represent a nuisance. This may lead to think that the level of substitution of SMS for IMis not total and that it has certain characteristics that users value and believe, to begin with, theyare irreplaceable by another service or that the substitution process is incipient between onemodality and another or that the SMS is an intrinsically natural service to mobile telephones.

3.1.5. New SMS-based services

Due to the transformation time of the messaging business explained at the beginning of thischapter, it is interesting to analyze the consumers' willingness regarding new functions thatcould be offered together with the SMS service.

To find out about willingness, two questions were asked: one for users to indicate the appealof a list of services and another one to indicate the appeal of a list of functions that could beoffered with the SMS.

Graph 3.9

Difficulties in Feature PhoneSMS use

Sample: Feature Phones and SMS users

(358 cases) - Multiple Choice

In the case of those who have a traditional phone, 41% mentioned delivery speed as adifficulty they have experienced and, in second place, 35% considered they have experiencedno difficulties that would stop them from using the service.

Graph 3.10

(Detailed) Reaction in frontof an eventual elimination ofthe SMS serviceSample: SMS Users (822 cases)


3.1.5.1. Appeal according to the type of serviceRespondents were asked how appealing the following services would be for them.

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A message service that would ensure immediate delivery of all messages. For example: If you sent a WhatsApp

message to a friend but at that time your contact did not have access to internet, the messaging service would send

a message VIA SMS, ensuring that your message is delivered immediately.

A message service through which you may send ALL your messages to all your contacts, friends and family without

worrying which means to use. Your message will be delivered regardless of the means that your contacts would

rather use.

A message service through which you may reach everybody regardless of the means each of them is using at that

time. For example: You are sending a message to three friends. Two of them are using WhatsApp and another one,

SMS. The message will reach the three of them without your needing to shift from WhatsApp to SMS or viceversa.

A message service where you may receive all your messages regardless of the fact if you are using a

Smartphone, computer or tablet. For example: A friend of yours sends a message from his/her cell phone.

Your Smartphone is off and you are using the computer at that moment. You will receive the message in your

computer instantly.

An instant message service where you have a single history of all your conversations, regardless of the means used

(Smartphone, tablet, notebook, desktop). For example: you and your friend are communicating via SMS or Facebook

Messenger. You visualize all the messages in a single history.

To define the appeal of each of the functions, the respondents were asked to assign ascore from 1 to 5 according to how appealing they found them, 1 being not appealingat all and 5, extremely appealing.

The idea of a unifying messaging service is, a priori, interesting for this market, as theoptions of receiving all messages regardless of the source device, the idea of reachingevery person regardless of the means (platform or device) they are using and the ideathat a sent message has delivery guarantee through SMS if the user is not connected tointernet have the highest scores8.

8 Multiple comparisons were carried out

through a free distribution method (i.e., free

from assumptions about the distribution of

these data).


3.1.5.2. Appeal of functions offered together with SMSTo this aim, respondents were asked how appealing they would find the functions listedbelow if they were offered together with the SMS service.

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Graph 3.11

New services appealSample: Smartphone users - 464 cases

1. Presence: it shows whether your Smartphone is connected.

2. Message notice: an indication of when an SMS was delivered/opened.

3. Black List: blocking people who you do not wish to receive messages from.

4. White List: presetting the people that you wish to receive SMS from.

5. Automatic answer: Similar to the e-mail out of office function.

6. Automatic subject: Similar to the e-mail automatic subject.

7. A copy of the messages: all your SMS messages are sent (as a copy) to your e-mail.

8. Collect SMS: when the addressee is the one who pays for the SMS if, for example,

the SMS issuer has no prepaid credit.

9. Prepaid SMS: for when you want to give courtesy credit, a text message for the person

to be able to answer your message without paying for it.

10. Forward messages: when you ask for an SMS to be sent to a tablet or notebook that

you preset.


To define the appeal of each of the functionalities, respondents were asked to assign ascore from 1 to 5 according to how appealing they found them, 1 being not appealing atall and 5, extremely appealing.

Most services generated a mild interest, with a 3.06 point average.

The service that generated more interest was the message reading notification (3.60points) as, besides obtaining the highest average, answers have lower scattering levels. As acounterpart, the one that generated the least interest is message signature. It obtained lowscores (2.77) and also there is less scattering in the answers, which is equivalent to ahigher opinion consensus.

The Black list function obtained 3.29 points. It was the second option with the highestscore, although with a lower consensus than message notice.

Presence (shows if the Smartphone is connected or not), which obtained 3.21 points, andprepaid SMS (3.06 points) also show an interesting potential.

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Graph 3.12

Additional functions appealSample: SMS users (790 cases)


3.2. MMS

29% of respondents used the MMSservice at least once during the last threemonths. This figure is somewhat highand it could be explained by the largerpercentage of customers withsubscription plan the sample has incomparison with the distribution by type of plan observed at a national level.

The use of multimedia messaging ishigher among Smartphone users (34%)than among Feature Phone users (23%).It is considered that this second valuemay be extrapolated to the totalcountry.

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Graph 3.13 MMS use in the last three monthsSample: Mobile phones users (833 cases)

Graph 3.14 Reasons for increasing MMS frequency of useSample: Smartphone users who increased MMS use - 99 cases - Multiple choice


They were also asked about the situations when they use MMS, related to the fact thatrespondents indicated that the most frequent situation was "Special or funny moments"(55%), followed by Holidays (43%) and Everyday curiosity (41%). The answers maysuggest that sending images is related to leisure time.

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Graph 3.15

MMS usage situationsSample: Smartphone users that use

MMS - 158 cases - Multiple choice

Graph 3.16

MMS use barriersSample: Smartphone users that use MMS

158 cases - Multiple choice

3.2.1. Barriers and motivations for MMS use

The main barriers for MMS use are the lack of certainty if the person may receive themessage (54%) and that it is an expensive service (47%)

In concordance with the second most mentioned barrier is the fact that 47% consideredthat a price reduction could motivate a higher use of MMS. The positive impact on the


demand of a price reduction would not only imply a challenge to find the reductionvalue to attract the highest number of customers, but also it will relate to its relativevalue concerning other communication services. Additionally, as Smartphones expand,MMS may be substituted by the delivery of images through IM platforms.

In second place, there were consider as possible motivations: having the certainty thatMMS will arrive rapidly to sent people (35%) and the certainty that they could send itto any person (31%).

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Graph 3.17

Motivation to increaseMMS use

Sample: Smartphone users that use MMS


3.3. Instant Messaging (IM)

In this MAVAM edition, we asked about the use of instant messaging only among thosewho have a Smartphone, which, in the case MAVAM's sample, represents 56% of therespondents. This percentage is higher than the one estimated for Argentina, whereapproximately 19% of mobile lines correspond to Smartphones.

86% of Smartphone users in MAVAM's survey use at least one instant messagingapplication.

WhatsApp is the most frequently used application (77%), followed by Facebook (56%)and Twitter (28%). These three messaging applications differ from one another: FacebookMessenger is a function within a social network; WhatsApp is an instant messaging


application by definition, and Twitter is a microblogging platform. This could indicatethat chat applications respond to different communication needs or interaction preferences.

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The use of instant messaging decreases as users are of an older age. Though, except forBBM, where the largest percentage of users is under 24 years old, all social networks havetheir highest peak in the 25-34 year-old group.

66% of the respondents use more than two applications of instant messaging. Theapplications combinations which are installed jointly are WhatsApp and Facebook (48%),

Graph 3.18

Instant Messaging (IM) useSample: Smartphone users -


Graph 3.19

Use of InstantMessaging (IM)by age group

Sample: Smartphone users -



WhatsApp and Twitter (25%) and, Facebook and Twitter (22%). This evidence thatdifferent applications can coexist, and this coexistence it appears by the specialty ofeach platform: each platform has some different fortress and in that way it goescompensating for covering a wide range of communication demands of users.

3.3.1. Behavior and Attitude

66% of those who own a Smartphone use two or more applications at the same timeand for 77% of them, this simultaneous use is common. These values could bereasserting the idea that instant messaging platforms coexist.

38% uses 3 messaging applications simultaneously.

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Graph 3.20

Simultaneous use ofSmartphone messageapplicationsSample: Users of multiple Smartphone

IM applications - 468 cases

Graph 3.21

Attitude towards simultaneous use of Smartphone message applicationsSample: Users of multiple Smartphone IM applications - 464 cases

3.3.2. Frequency of use

Respondents were asked about the number of messages they send on average per day usingthe applications installed in their phones. We have observed that those who use WhatsAppsend 34 messages a day on average, while Facebook Messenger users said they send around23 messages a day via this platform. Based on this information, we concluded thatWhatsApp is the most frequently used application and that it is used extensively.


3.3.3. Contacts

Respondents were asked to indicate how many contacts they communicated with via everyapplication and we could observe that Facebook Messenger and WhatsApp are the mostfrequently used options to communicate with more contacts, with averages of almost 15 and 13contacts respectively. These are also the most frequently used, which could explain a networkeconomy effect. Additionally, GoogleTalk, although it is the third application regarding thenumber of users, has around half the number of contacts (6 contacts). On the contrary, Skype

Messenger users, which make up only 13% of the sample, have 7 contacts on average.

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Graph 3.23

Average of contacts by IMapplication in Argentina

Sample: Users of multipleSmartphone IM applications -

468 cases

Graph 3.22

Average of messages sentper day via the three main IM

applications in ArgentinaSample: Users of multiple Smartphone

IM applications – WhatsApp, Facebook

Messenger and Google Talk - 361, 262

and 75 cases respectively


3.3.4. Difficulties in IM use

Respondents were asked about which had been the situations that stopped them fromusing instant messaging applications. The most frequently mentioned option was "Speed: Sometimes a message takes too long to arrive" (42%).

The second option most frequently mentioned was "Because I don't have WiFi access"(36%), which indicates that there are Smartphone users who try to leave the mobilenetwork as much as possible or who do not use the mobile network for data service.

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3.3.5. IM Relevance

Respondents were asked how they would feel infront of an eventual elimination of the IMservice: 20% would feel lost; 43% consideredthat even with SMS, they would need themessaging service.

In a comparison with what was stated for the SMShypothetical elimination, we can observe that theanswers are very similar, so we deduce that IM, aswell as SMS, are indispensable for users.

Graph 3.24

Reasons that hinder IM useSample: Users of multiple Smartphone


Graph 3.25

(Detailed) Reaction in front ofan eventual IM elimination

Sample: Users of multiple Smartphone



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3.4. SMS vs. Instant Messaging (IM)

To understand the SMS and instant messaging services coexistence, the preferences of oneover the other under different circumstances were analyzed.

3.4.1. Superiority

Respondents were asked if any of the two services was superior to the other one inrelation to reliability, delivery speed, cost/price and quality.

IM was considered superior regarding delivery speed (43%), cost (63%) and quality(36%). In the case of the reliability attribute, there is not enough evidence to support thatrespondents consider one better than the other. Despite this, it is clear that, forrespondents, IM is superior in the attributes analyzed.

Graph 3.26

SMS and IM serviceassessment

Sample: Smartphone users - 464 cases

3.4.2. Service preference according to addressee

To know how SMS and IM applications coexist, respondents were asked which servicethey would choose in the face of different situations. From the data presented in graph3.27, we conclude that IM and SMS use are perceived equally appropriate,9 except atworkplace, where SMS is preferred.

9 With 95% reliability, we may say that the

distribution of percentages on which these

statements are based are significantly

different from 33%-33%-33%.


3.4.3. Reasons

Smartphone users were asked what the reasons were for which they would rather use IMinstead of SMS. The two reasons most frequently mentioned were the cost (70%) and thepossibility of sharing files (56%). Delivery speed (42%) and the possibility of knowing if theperson to be contacted is available (41%) were also relevant.

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Graph 3.27

Selecting the mostappropriate servicefor each occasion

Sample: IM and SMS

Smartphone users - 464 cases

Graph 3.28

Reasons for using IMinstead of SMSSample: IM and SMS Smartphone users

464 cases


An inverse question was asked so as to learn the circumstances in which they would preferusing SMS instead of IM. What stood out in relation with this question is that SMS ismore frequently used to communicate more important messages (40%) and for work orstudy matters (31%).

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3.4.3.1. IM and SMS combinations

Given that instant messaging and SMS coexist as communication options, it is interestingto ask about the SMS frequency of use against the highest penetration chat platforms(Facebook and WhatsApp).

3.4.3.2. WhatsApp + SMS93% of respondents who use WhatsApp also use SMS. This demonstrates that the use ofan IM application does not eliminate SMS use, mostly because SMS is universal. Graph3.30 shows that WhatsApp is more intensely used than SMS: the number of dailymessages, in average, by this group through WhatsApp is 34 and average of SMS is 14per day.

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Graph 3.29 Reasons for using SMS instead of IMSample: IM and SMS Smartphone users - 435 cases


3.4.3.3. Facebook Messenger + SMS96% of respondents that use Facebook Messenger also use SMS. Comparing theamount of sent messages, it is observed that there is greater intensity on the social

network platform. The number of daily messages, in average, by this group throughFacebook Messenger is 23 and average of SMS is 17 per day.

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Graph 3.30

Sent messages average perday WhatsApp vs. SMS

Sample: WhatsApp and SMS

smartphones users - 335 cases

Graph 3.31

Sent messages average perday Facebook Messenger

vs. SMSSample: Facebook Messenger and SMS

smartphones users - 251 cases


3.5. Joyn

Joyn is an application driven by the GSM Association (GSMA), which combines voicecommunication, chat with one or multiple persons at the same time and also allowssharing videos, photos and files. This application enables contacting users who do nothave the SMS or mail application.

In general, it is a free-of-charge application with flat rate or prepaid plans within theterritory of a certain country.

World operators are cooperating in the initiative for the platform to haveinteroperability, that is, for it to "simply be on the phone and work". Movistar, Orangeand Vodafone have already launched this service in some countries.

Handset manufacturers10 are driving this platform and, in some models, it is alreadypreloaded. It may also be downloaded for iPhone and Android platforms.

3.5.1. Awareness

2% of respondents stated having heard about Joyn.

3.5.2. Willingness

All users were explained what Joyn consists in and then they were asked if they woulduse it or not. The willingness showed was important: 14% answered that they wouldsurely use it, 18% would use it if it was part of a package and 28% if it was free ofcharge. The free condition seems to be necessary for customers to accept it.

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Gráfico 3.33

Joyn awarenessSample: Total 833 cases

Graph 3.32

Joyn awarenessSample: Total 833 cases

10 Some Smartphone models by Huawei, HTC,

LG Electronics, Motorola Mobility, Nokia,

RIM, Samsung, Sony, ZTE.

MAVAM | 4. Mobile Internet

In the second quarter of 2013, Convergencia Research estimates that 21% of mobilelines in Argentina were Smartphones.

In the sample selected for MAVAM, survey made to internet users, the ratio ofsmartphones climbs to 56%. As explained in previous editions, in general, the profile of the respondent surveyed through the Internet is a user more familiar with technologyand usually has either more intensive uses of the services or more innovative devices, and as in the special topic related to messaging, the analysis of those having smartphoneswas prioritized.

Given these characteristics, usage patterns are representative of Smartphone users andshould not be construed as being extrapolated to the entire population of Argentina.

4.1. Use of the Internet through Smartphones

An 88% of those who have a Smartphone accessed the Internet over the last threemonths. 82% of those who have a Smartphone and access to mobile Internet do it on a daily basis.

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Mobile Internet4

Among the 12% of those who despite not having a Smartphone do not use the Internet,the main reason (38%) is that they do not need it. Secondly they consider the browsingspeed is very low (29%).

Gráfico 4.1

Internet users throughSmartphonesSample: Smartphones - 468 cases

Graph 4.2

Internet access frequency through SmartphonesSample: Internet users through Smartphones - 410 cases

N

SO

E

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E

N

S

O

E


4.2. Type of plan hired

The 83% of those who have a Smartphone hire a postpaid subscription plan and in most cases,they do not know how many megabytes are included in their plan. The 43% don’t know and a

20% don’t know, but the service is included in their plan. 32% of users hire unlimited plans.

In a 58% of cases, the limit of megabytes hired is not exceeded.

4.3. Uses of the Internet on the Smartphone

The four most frequently mentioned activities when using the Internet on the Smartphoneare use of instant messaging (73%), e-mails consultation (73%) and access to social networks(71%) and searches (68%).

A second group is made up of map consultations (56%), news reading, videos anddownloading information on products, the last three with 51% of mentions.

The most frequently consulted news sites are Clarín 67%, Infobae 48% and La Nación 45%.

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Graph 4.3

Reasons not to access theinternet on the Smartphone

Sample: Smartphone users whodo

not access to internet through

the mobile phone - Total 58 cases

Graph 4.4

Amount of megabytes hiredSample: People who hire postpaid plan

388 cases)


4.3. Social networks

Among users who have a Smartphone and accessed to internet, 71% used the mobilephone to access a social network. 98% has an active profile in Facebook, 51% in Twitterand 40% in Google+.

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Graph 4.6

Active profilesin social networks

Sample: Smartphone and mobile

internet users accessing social

networks - 292 cases

Graph 4.5

Activities performed whenusing the Internet on the

SmartphoneSample: Mobile internet users - 410 cases


Facebook (68%) and Twitter (53%) have the highest ratio of daily usage frequency,although the latter has a much smaller customer base, while Instagram concentrates itsusers on the weekly frequency (62%).

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Graph 4.7

Access frequencyto social networks

Sample: It varies depending

on the social network

Facebook main activities are the relationship with friends through messaging (90%),photos and moments (80%), search for people and relatives (60%) and knowing people’sprofile (55%).

Graph 4.8

Uses of FacebookSample: Facebook users on smartphone

(285 cases)


4.4. Mobile Banking

25% of Smartphone users make queries or access banking information. The mainactivity is making balance querie (83%) followed by pay bills (50%).

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Graph 4.9

Mobile banking usagefrequency

Sample: Smartphones users that access

to their bank website - 103 cases

4.5. Mobile Commerce

6% of those having Smartphones made searches for products and services over the last

three months, but only 19% made a purchase.

The top two reasons mentioned for not making a purchase using the Smartphone are thepreference to buy through the computer (62%) and that it is difficult to make paymentthrough the mobile device (24%).

Graph 4.10

Products search and shoppingthrough the Smartphone

Sample: 50 cases

Shopping Search


4.6. Maps and location

56% of those having a Smartphone use map services. 86% consult the map for gettingoriented, and 23% mentioned that after consulting the map, they generally visit the siteor store consulted.

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4.7. Marketing and mobile advertisement

Respondents were asked how much they agreed with receiving relevant messages fromoperators and other companies on the cell phone. In general, Smartphone users disagree,

and Feature Phones users agree with it.

Considering both groups, it may be observed that there is concern about spam, since inmost cases they agree to receive advertisement only if they have previously consent to it.

Graph 4.11

Activity performed afterconsulting maps

Sample: Smartphone users that access

to internet trough their mobile phone

and consult maps (231 cases)

Graph 4.12

Prefered means to receiveadvertisements

Sample: Total 825 cases

Activity %I was just using it to localizate 86%I went to the stand/store/establishment 23%I went to the stand/store/establishment and use their services 18%Website search of the stand/store/establishment 17%

I went to the stand/store/establishment and make a purchase 16%

I just wanted to know how the store looked like 8%

I called the stand/store/establishment 7%I made a online shop in the store/establishment 4%

I started to recommend the stand/store/establishment 4%


However, when asked about the preferred communication means when receiving messagesfrom operators or companies on the cell phone, 50% opted for the SMS. 14% say theywould prefer any application other than the proposed options (IM, MMS, Facebook) andthe same percentage said that any of the proposed options are the same for them (14%).

Note: 61% of those who have a Smartphone pay low or none attention to advertisingmessages. 35% rarely pays attention and 26%, never do. 40% pays high attention (22% sometimes pay attention and 11%, most times) and 6% pays high attention (always watches advertisements).

Search sites (66%) and video sites (45%) are the places with the highest number ofmentions regarding display of advertising messages.

52% click on the message or visit the advertiser's site.

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Graph 4.13

Places mentioned whererespondents say having seen

an advertising messageSample: 162 cases

MAVAM | 5. Conclusions

Value Added Services in Argentina are mobile telephony’s growth engine. They represent49.4% of the VAS and grew 32% in local currency (12.25% in USD) as compared withthe second quarter of 2012.

Sales in the second quarter amounted to $ARG 5.2634 billion (USD1.004 million).SMS continues to be the service that posts the highest revenue within the value-addedsolutions (56.7%) and generating more than $ARG 2.986 billion (USD570 million) inthe same period.

Mobile Internet is the fastest growing service. It recorded sales totaling ARG$1.794billion (USD 342 millions) and grew 50.9% in local currency compared to the samequarter 2012. It represents 34.08% of the VAS.

Smartphones growth and the adoption of instant messaging coexist in this market withhigh usage of SMS; we do not observe a substitution process but a complementarity

process. Such as in other countries of the region, there areplenty SMS, data and voice packaged offers.

Necessary. 60% of users claim that in case of ahypothetical disappearance of SMS they would have

problems to communicate. 22% would feellost and 38% would need it even whenhaving other communication alternativesavailable. In the same situation, but inrelation to instant messaging, 61% ofSmartphone users also said they wouldhave difficulties. 20% would feel lostand 41%, despite having SMS, wouldneed Chat applications.

Opportunity. The idea of a unifyingmessaging service is, a priori, interesting forthis market, as the options to receive allmessages regardless of the source device,the idea of reaching every user no matterwhat platform or device they are using andthe idea that a sent message is guaranteedto be delivered through SMS if the user is

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Conclusions5

MAVAM | 5. Conclusions

not connected to the Internet, got high scores when asking onthe interest aroused in those who have a Smartphone11.

Preferred. When questioned in the research, Smartphoneusers expressed a preference for instant messaging over SMSprimarily due to its perceived cost advantage (63%), speed ofdelivery (43%) and quality (36%). SMS scored equally withIM regarding reliability.

Almost identical. The research highlighted that the messaginghabits for Smartphone users often depends on the circumstancesand the choice of which messaging platform to use can dependon the social context. For instance, both SMS and instantmessaging (IM) are seen as good tools for informalcommunications with friends and family, etc. However, for work

related matters and more formal settings, the speed and reliability ofSMS are often preferred.

Simultaneously. According to the research, 93% of those who own a Smartphone useat least one IM application with up to 77% of them using more than one IM applicationat the same time to send messages to different users on divergent platforms. These valuescould be reasserting the idea that instant messaging platforms coexist with each other andother traditional forms of messaging.

Joyn. When asked about the possible launch of a service like Joyn in Argentina, the 60%of respondents showed a positive interest, although offering the service for free seemed tobe necessary to drive adoption. The research highlighted that 18% of respondents woulduse if it were included in their pricing plan and 28% would only use it if it were free.

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11 Multiple comparisons were

performed through a free

distribution method (i.e. free

from assumptions on the

distribution of these data).

MAVAM | 6. Glossary

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The description of the services presented in this report is presented in the following sections.

Messages The services in this category can be defined as:

SMS (Short Message Services): sends short text messages.

MMS (Multimedia Message Service): sends short text messages with image, photo,or video.

E-mail: receives or sends emails via cell phone. Receiving or sending can be donemanually, in other words by user’s initiative, or can be activated through the pushmechanism, which periodically and automatically receives and sends mail.

Instant Messages: service which permits access to instant messaging systems like MSNor Yahoo.

Answering Machine or Voice Messaging: gives access to the automatic messagesrecording service offered by the carrier, in case of receiving calls that can’t be answered.

Entertainment The services in this category can be defined as:

Music: service which provides the download of songs to be played in the cell phone. Thehandset must be able to play several music formats such as MP3, AAC, MP4, WAV,among others.

Ringtone: service which provides the download of ringtones to be used in the handset.The cell phone must be able to play multiple formats of ringtones, such as MIDI, AAC,MP3, MP4, WAV, among others.

Images: service which provides the download of images and photos to be displayed onthe cell phone. The handset must be able to display several formats of pictures and imagessuch as JPEG, GIF, among others.

Games: service which provides the download of games to be played on the cell phone,individually, or through internet or Bluetooth connections, in groups. The cell phone must

Glossary6

MAVAM | 6. Glossary

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be able to run the games available in the device and also the downloadedones, and additionally provide Bluetooth or data connectivity forinternet access (eg.: EDGE, EVDO, or 3G).

Video: service which provides the download of videos or videostreaming to be played on cell phone. The handset must be able to playdownloaded videos or received video streaming. The cell phone must beable to play videos in 3GP, MP4, WMV, AVI, among others.

Open TV: This feature is present in some cell phones and permitsuser to watch free TV programs with the handset acting as an

analogue or digital TV receptor and capturing contents through the same signals(frequencies) received by traditional TV’s at home.

Internet and Location The services in this category can be defined as:

Internet Access: service which provides broadband access to the Internet via cell phoneor modem. In both cases users must have a data plan contract with the mobile operator.

This service has the following characteristics:

Cell phone: the internet access from cell phone can be done in the following ways: 1. Using a browser to access the same websites accessed by fixed internet through acomputer. Examples of browsers: the ones offered by the cell phone or smartphone(Internet Explorer Mobile, for Windows Mobile), or alternative browsers such as Skyfireor Opera. 2. Accessing the WAP websites inside the Carrier network through WAP browser. 3. Through specific programs installed in the handset (Widget, Web-App) provided bycompanies like Yahoo Mobile.

Modem: devices which can be connected to desktop computers or notebooks. ProvidesInternet broadband connection using a computer browser (Internet Explorer, Firefox,and others).

Social Networks: service which includes all the necessary elements to provide access tosocial networks such as Orkut, Twitter, Facebook, and others. This access can be done

N

SO

E

MAVAM | 6. Glossary

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through browser and internet access, both present on cell phones, or through a specificapplication provided by mobile operators or other companies.

Payments and Banking: usually offered by banks or other credit institutions, whichallows the access to users accounts in these institutions. These services can range fromsimple balance consults to the payment of bills or conclusion of investment transactions.

Location Based Services: service which provides users’ geographic location. Theseservices have the following characteristics:

Location: can be provided as the following: 1. Through a process of triangulation using information from cell sites and applicationsystems provided by the operator for this purpose; 2. Through the GPS installed in the cell phone.

Offered Services: 1. Location: service usually offered by the mobile operator which allows informing thegeographic location of a particular subscriber. Eg.: service hired by parents to monitortheir children’s habits, or with the purpose of promoting safety. 2. Maps: service offered by other companies providing maps on cell phones, usually to locateaddresses, and also permits to locate users in the map if their handsets have a built-in GPS. 3. Contextual Filter: permits the mobile operator, or other service providers, to offeraddresses or other types of promotions at stores, restaurants, movies, among others, basedon the instant location of users.

Mobile MarketingThe services in this category can be defined as:

Mobile Marketing: these services are implemented by mobile operators, to advertise theoperator itself or other companies for the subscriber base. Usually these ads are sent viaSMS. The advertisements can also be sent directly by competitor carriers or othercompanies, again using SMS messages.

Mobile Advertising: similar to Mobile Marketing, Mobile Advertising is also anadvertising service implemented by mobile operators or other companies. If the subscribersagree to receive it they can participate of promotions such as free minutes, free SMSpackages, and others, as a reward for receiving advertisements.

N

SO

E

MAVAM | 7. Technical File

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Scope Mobile phone users

Technique CAWI (Computer-Assisted Web Interviewing)Method 12/15-minute surveySample 833 casesMarket ArgentineSurvey date June 1-10 2013

Sex Sample

Male 421 51%Female 412 49%

Age Sample

18-24 years old 131 16%25-34 years old 178 21%35-44 years old 168 20%45 or more 356 43%

Location Sample

CABA 526 63%Pampa húmeda 148 18%NEA 56 7%Cuyo 36 4%NOA 34 4%Patagonia 33 4%

SEL Sample

ABC1 242 29%C2 256 31%C3 160 19%d1 d2 e 175 21%

Operator Sample

Movistar 316 38%Personal 266 32%Claro 232 28%Nextel 17 2%Otra 2 0%

Plan Types Sample

Prepaid (Rechargeable card) 219 26%Pospaid (Monthly billed - without limit of use) 289 34%Pospaid + control 328 39%(A monthly bill, with limit of use.Once limit is reached, I can make a recharge and continue using it)

Technical File7

MAVAM | 8. Team

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Team8

Fatima Raimondi | President, Acision Latin America

Silviane Rodrigues | Market Development Director, Acision Latin America

Mariana Rodríguez Zani | Director

Emilia Gibellini | Analyst

Nadia Arno | Analyst

Román Mergá | Analyst

Leonardo Nocera, Bernabé Diaz | Design

Humberto Perissé | Director

Izildinha Neumann | Commercial

Sol Caballero

Juan Pablo Daniello

Documents

Mavam Argentina 2013 - ENGLISH