MAVAM - Acision Monitor of Mobile VAS, Argentina Edition, was produced under request of Acision, the leading mobile data company in the world, from Convergencia Research. This study presents the market data about SMS, MMS, mobile broadband, social network, entertainment, mobile payment and others in Argertina.

1. ARGENTINA
Prepared by
1˚ EDITION MAVAM
Acision Monitor for Mobile VAS
© Copyright Acision March 2011

3. MAVAM | Acision Monitor for Mobile VAS
Editorial
MAVAM Argentina
By mid of 2010, Latin America became the second region of the world regarding number of
mobile phone service subscribers. Globally-speaking, sales in the region account for 10% of
mobile operators revenues.
Main countries in Latin America already exceed the 100 lines per 100 inhabitants. Today, a
new stage begins in the region, in which the Value Added Services (VAS) will be increasingly
more relevant for the growth of mobile operators’ revenues. Besides the proportional
increase of VAS, the region’s economic growth is added, where most of the countries will
grow at rates over 4% annual of GDP.
VAS in the region already accounts for 21% of mobile operators’ revenues, while in most
developed countries this segment already reached 50%. With no doubt, Latin America will
Rafael Steinhauser follow this trend regarding the VAS share in the operator’s total business.
Acision
President for Latin America In Argentina, during 2010, VAS accounted for 37% of mobile operators’ revenues; thus
Argentina is ranked first within Latin America regarding this category.
Acision, global mobile data solution leader, has created MAVAM (Acision Monitor for
Mobile Value Added) in September 2009, in order to assess status and evolution of main
trends in the VAS market. Each edition of MAVAM monitors six VAS areas: messaging, data
(mobile broadband), mobile marketing / advertising, mobile banking / payment,
entertainment and social networks.
Since its launch in 2009, MAVAM is quarterly published in Brazil. In December 2010,
MAVAM started to expand throughout Latin America and it presented its first edition of
MAVAM Mexico.
Acision is today honored to present first edition of MAVAM Argentina, thus providing a
half-term report that will enable to keep track of the evolution of value added business.
Thus, through this study, our intention is to provide systematic and recurrent information
for all players of the telecom industry. It is a consultation and forum tool for the new
generation of mobile businesses.
Worth reading it.
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4. MAVAM | Acision Monitor for Mobile VAS
Index
2 Editorial
4 1. Introduction
5 1.1. Value Added Services in the World
9 1.2. Value Added Services in Latin America
10 1.3. Value Added Services (VAS) in Argentina
12 2. MAVAM (Acision Monitor for Mobile VAS)
13 3. MAVAM Argentina
13 3.1. Message services
15 3.1.1. SMS
16 3.1.2. MMS
17 3.1.3. Instant Messages (IM)
17 3.1.4. Voice mail
18 3.1.5. E-mail
19 3.2. Entertainment
21 3.2.1. Games (Use and downloads)
23 3.2.2. Music (Use and downloads)
24 3.2.3. Ringtones (Downloads)
24 3.2.4. Images ( Downloads)
25 3.2.5. Video ( Downloads) and Mobile TV (Watching)
25 3.3. Mobile Internet
27 3.3.1. Social Networking
28 3.3.2. Mobile Money and
Mobile Banking
29 3.3.3. GPS and Maps
29 3.3.4. Mobile Marketing and Advertising
32 4. Conclusions
33 5. Technical Data Sheet
34 6. Glossary
37 7. Team
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5. MAVAM | 1. Introduction
1 Introduction
By the end of the year 2010, there were 5.41 billion service subscribers worldwide, out of the
6.92 billion total inhabitants, which means a penetration of 78 cell phones every 100
inhabitants. Pursuant to the estimations made by Convergencia Research América Latina3,
by the end of 2010 there were 559.74 million mobile subscribers equivalent to 10.37% of
the total global lines. The average penetration in the region is 96 lines every 100
inhabitants; and between 2011 and 2012 every country, except for Cuba and Nicaragua,
will exceed 100% penetration.
In 2010 the global revenue generated by mobile phone services was equal to around 800
billion Dollars5, which is equivalent to 1.3% of the Gross World Product (GWP). Pursuant
to the estimations made by Convergencia Research, the revenue derived from mobile phone
services in Latin America in 2010 was about 81 billion Dollars, which amounts to 8.5% of
the global business of mobile services.
Latin America is not an exception to the transformation of the mobile services industry,
which is taking place globally: saturation of penetration rates, new devices, and increase in
the data traffic, among others. Notwithstanding that, the economic projections made by
most countries with their gross domestic products growing above 4%, generate conditions
which are more than optimistic to face this transformation process in which value added
services (VAS) will play a key role.
Graphic 1.
Mobile Subscribers 2010 Mobile Revenues 2010
Total world as of Q4 2010: 5400 Million Total world 2010: 796 billion
1 Source: Report by Telecoms & Media
WCIS+, 4G Américas’ Web site
2 Source: Estimations made by the World Bank.
3 Includes Latin America, Caribbean, Central
America and Mexico.
4 Data assessed on the basis of balance sheets,
regulators and own estimations.
5 Source: Estimations made by Convergencia Source: Convergencia Research based on the balance of the operators, local regulators and the Internacional
Research. Telecommunication Union (ITU).
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6. MAVAM | 1. Introduction
1 1. Value Added Services in the World
In order to show the global impact of VAS on the business of mobile phone services, a
sample was selected which includes seven companies with presence in different countries
(See graphic 2). At each company, an analysis was conducted of the total revenue evolution
from December 2009 to December 2010, and the evolution of the participation of the
revenues obtained from VAS in relation to each company’s total sales.
VAS services basically include: SMS and MMS (messaging service), music, videos, games,
ringtones (entertainment), mobile banking and payments, mobile broadband, social
networks, and marketing / mobile advertising.
Graphic 2.
Operators analyzed
1. AT&T - Unites States of America
2. China Mobile - China
3. France Telecom
4. América Móvil Latin America
5. Telefónica
5.1. Telefónica Spain
5.2. Telefónica Ireland
5.3. Telefónica Latin America
6. Vodafone
6.1. Vodafone United Kingdom
6.2. Vodafone Germany
6.3. Vodafone India
7. NTT Docomo Japan
8. SKTelecom Korea
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7. MAVAM | 1. Introduction
Variation in the revenues obtained from the Voice Services
vs. VAS
The mobile voice business faces a generalized downward trend (See graphic 3). In this sample
of countries, which is varied as to geography and typology, there have been up to 12%yearly
falls, except for such countries as China (+ 6%) and India (+21). These countries are
undergoing pure expansion processes, with a mobile phone penetration rate below the global
mean (77 %) and with 3G technology which is just taking off. In the particular case of
China, with almost 860 million mobile subscribers by the end of 2010, only 25 million
(3%) use 3G technology services and Vodafone India, with 124 million mobile customers
aims at launching mobile broadband services through 3G technology on the January-March
quarter of 2011. There are currently almost no 3G services in India.
Graphic 3.
Variation in the revenues
obtained from Voice
Services vs. VAS
December 2009 vs. December 2010
Source: Convergencia Research on
the basis of the financial reports
of the operators.
In the particular case of the VAS business, there is a general 2-digit increase, highlighting
Telefónica Latinoamérica (Telefónica Latin America) (+ 43%), Vodafone India (59%), and
América Móvil (40,4%).
It may be further observed that the gap –between countries with higher and lower economic
development– in VAS use and market penetration ratios is increasingly reduced as less
developed countries introduce more customers and as the counties with more developed
economies enter a phase of solely vegetative growth.
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8. MAVAM | 1. Introduction
The countries with lowest mobile phone penetration
rates are undergoing a natural evolution stage, which has
already been undergone by those countries with higher
penetration rates. This evolution path ranges from those
VAS mainly based on SMS (a feature which is operational
on almost all the telephones) to those VAS based on
mobile Internet (in developed countries with more
sophisticated devices).
Not only is the annual growth of mobile VAS important in
absolute values, but its increasing contribution to the mobile
ARPU is also relevant. On many occasions, not only does it
compensate the losses in the voice business but it also makes
it possible to increase the total ARPU. A good example of
such situation is Telefónica Latinoamérica, where in spite of a
6%-yearly fall in the voice business as a consequence of the
increase in the use of VAS, the total ARPU has also been increased by almost 2% (-0,2% in
constant currency).
Considering the development of more mature countries such as the United States, Germany,
and the United Kingdom, this contribution figure exceeds 35% with a clear upward trend.
In particular, in Japan the revenues obtained from voice services have just been put in the
same level with the revenues from VAS.
Graphic 4.
Analysis of VAS
contribution to the
mobile ARPU
December 2010
Source: Convergencia Research on the
basis of operators’ balance sheets
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9. MAVAM | 1. Introduction
Graphic 5.
ARPU fluctuation: Total vs. Voice. vs. Service Penetration and Data
December 2009 vs. December 2010
Source: Convergencia Research on the
basis of the operators’ balance sheets,
local regulators and International
Telecommunication Union (ITU).
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10. MAVAM | 1. Introduction
1.2. Value Added Services in Latin America
By the end of 2010, the nucleus of mobile subscribers in Latin America consisted of 83%
prepaid and 17% postpaid. The high prepayment level has not constituted a restriction on
the growth of revenues for value added services (VAS), which represent between 15% and
25% of the operators’ revenues, and may even reach values between 35% and 40% in
some cases.
Graphic 6. By the end of December, the average ARPU in the region was closet to USD 11,28. The
VAS by component ARPU values in Dollars have remained almost unaltered over the last three years as a
Average Total Region 2010 result of a combination of effects which are related both by the value proposals and by the
ARPU’s own increases in local currency, depending on the operator’s country. In most
cases, except in the case of Brazil, the main value added component is the one generated
by SMS.
Graphic 7.
ARPU Voice vs. Data in Latin America per country
Source: Estimations Convergencia Source: Convergencia Research
Research
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11. MAVAM | 1. Introduction
1.3. Value Added Services (VAS) in
Argentina
Argentina is one of the countries with highest mobile service penetration levels. By the
end of 2010, there were 52,256,7506 cell phone lines, equivalent to 130% of penetration
on the population. Mobile clients increased 7% between 2009 and 2010. Although there
are different points of views and estimates as to the number of lines related to a single
user (does not have more than one cell phone line) or active user (consumes voice
minutes), the fact is that regardless of the estimate made, percentages show that
penetration has reached a saturation point as to connecting people.
In 2010, sales increased 20.5% and amounted to 28,696 million Argentine pesos (almost)
USD 7,192 million, equivalent to 9% of the Latin-American mobile services market.
Market share per number of lines Market share per total sales
Graphic 8.
Market share 2010
Source: Convergencia Research based on
balances and own estimates.
Argentina is the third Latin American market in number of subscribers, after Brazil and
Mexico. However, regardless of this feature there are other factors that make it special. One
of them is that post-paid users represent 27% of the market, while the Latin American
average barely exceeds 17%. This is due to the fact that “controlled accounts” cover part of
6 Estimates of subscribers and percentage of the market (controlled accounts refer to fixed rate agreements and recharging options) which
prepaid users against post-paid users are not usually seen in the countries of the region. “Controlled accounts” are an interesting
include Nextel. basis when offering packages and value added services.
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12. MAVAM | 1. Introduction
Graphic 9. However, the most particular feature in
Prepaid vs. Post-paid Argentina is that it is the country that
Total market 2010 mostly contributes with VAS (value added
Source: Convergencia Research based on services – SVA7) to the operators’ total
balances and own estimates sales. In 2010, value added services
represented 36.88% of the market,
equivalent to a sales volume of almost
9,445 million Argentine pesos (USD
2,369million).
The increase in value added services sales
in relation to 2009 was nearly 40% while
voice mail services increased 13%.
SMS segment represents 68% of value
added services. However, data segment is
the segment that mostly increased, almost
50% annually.
VAS vs. Voice VAS per type
Graphic 10.
Argentina: VAS 2010
Source: Convergencia Research.
Only includes Claro, Movistar
and Personal
7 Followed by Venezuela with 33% of VAS
contributions to mobile operators’ total sales.
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13. MAVAM | 2. MAVAM (Acision Monitor for Mobile VAS)
2 MAVAM
(Acision Monitor for Mobile VAS)
MAVAM aims at analyzing the trends of value-added services in Latin America. Since 2009,
this study has been carried out in Brazil. In 2010, it was carried out in Mexico, while, in
2011, the survey will focus on Argentina.
With the launch of Acision MAVAM Argentina, conducted by Convergencia Research,
every six months the mobile market will be provided with a tool that allows monitoring the
development of value added services within the country.
The services analyzed in this edition include:
• Messages
• SMS
• MMS
• E-mail
• Instant messages
• Voice mail
• Entertainment
• Music
• Images
• Games
• Ringtones
• TV
• Video
• Internet access
• Social networking
• Location Based Services (LBS)
• Payments and banking
• Mobile Marketing
MAVAM Argentina was carried out through a survey addressed to mobile phone users
within Argentina, through Computer Assisted Web Interviewing (CAWI) with a sample
of 800 respondents from Februarty 28th through March 18, 2011.
The methodological bias in Internet surveys turns some cases inapplicable to the whole
market and thus they can only be used as reference and guidance. These cases are
explained along this study.
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14. MAVAM | 3. MAVAM Argentina
3 MAVAM Argentina
3.1. Message services
Message services, particularly SMS, are the mostly used value-added services. However,
the adoption level at Latin American countries differs from one country to another.
Differences are generally explained by cultural and offer aspects. For instance, the ratio
between SMS relative costs and voice mail costs per minute.
Graphic 11.
World: SMS average
per month by user 2010
Graphic 12.
Latin America:
SMS per month
by user 2010
Source: Convergencia Research
based on regulators.
* Mexico: Two sources. Cofetel (regulator) 58 SMS per month. Other market sources estimate the number in
138 SMS. These estimation differences usually occur in most Latin American countries data due to the use of
non-standardized methods.
**Argentina: 126 SMS per day, based on data from Indec-CNC. 270 SMS per day, MAVAM data for active users.
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15. MAVAM | 3. MAVAM Argentina
Graphic 13.
SMS sent per month
by user
Selected countries 2010
According to the Argentine Communications Regulatory Board (CNC for its initials
in Spanish), in 2010, there was a 19.2% increase in the SMS sent, thus amounting to
75,669 million of short messages sent. This means that, in average, during 2010, 126
messages were sent per subscriber.
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16. MAVAM | 3. MAVAM Argentina
3.1.1. SMS
This MAVAM edition shows that 97% of users have used SMS in the last three months.
This percentage shows that the use of SMS in Argentina is as popular as the use of voice
mail and the SMS business growth will be encouraged by the increase in use and in
applications among people and devices using short messages to communicate.
Graphic 14.
Use of SMS
For this sample, 270 SMS are sent in average per
month; it mostly duplicates the market´s average.
The reason for this estimate is that users are usually
familiar with technology. These percentages are
interesting as reference data as they show the extent
to which the use of SMS can be stimulated among
current mobile subscribers.
33% of respondents cannot determine how much
they pay for SMS. In average, within this sample,
users spend $38 per month in SMS.
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17. MAVAM | 3. MAVAM Argentina
3.1.2. MMS
It can be noted, that at a worldwide level, a broad number of cell phones, considered
basic phones, can send MMS (multimedia messaging) and many of them also have
cameras (which can be considered a logical element to exchange pictures through cell
phones). However, this service is not widely used. Today, the development of sophisticated
devices and the increase in social networking is changing the way users share pictures. In
general, pictures (or other images related to people´s privacy) are not sent from one
person to another; but from one person to many others. Users tend to “upload” or
“publish” them in the social networks they are registered in.
72% of respondents said that their cell phones allow them to send MMS8. However, only
16.3% of respondents have used MMS in the last three months. If we consider active
people those who send more than one MMS per week, we can conclude that only 7% of
respondents have adopted MMS as a habit in their cell phones.
Graphic 15.
Use of MMS
Reference percentages.
Applicable to this sample only.
Not applicable to the whole
market.
8 Probably, the number of cell phones that It is worth mentioning that, as the survey is made on the Internet, those much more
allow sending MMS is greater, but it is sophisticated uses, unlike SMS, are affected due to the user´s familiarity with technology.
interesting to consider that only 72% of Therefore, these percentages are used as reference or guidelines. The whole market may
users are aware of it. not act alike, but they are considered a guide to adoption and development levels.
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18. MAVAM | 3. MAVAM Argentina
The difference among the types of cell phones including MMS and their use means that
there is a margin of growth within this service if interested offers are found and if the
service is not left behind by other picture exchange methods, like the abovementioned
social networks.
3.1.3. Instant Messages (IM)
Graphic 16. According to this sample, 11% of
Used mobile Instant respondents have used instant messaging in
Messaging in the last the last three months. In average, they use
three months Instant Messages 19 times a month.
3.1.4. Voice mail
48% of respondents use voice mail. In average, respondents use voice
mail 9 times a month and its frequency is focused on an occasional use
(38%). The remaining percentage is evenly distributed among daily,
weekly and fortnightly use of voice mail.
It is worth mentioning that due to the fact that users are most familiar
with technology, the relatively low use of this service may show
replacement effects that may be a sign that the voice mail is turning
obsolete. Some of the replacement effects include, not listening to the voice mail and
answering it by text messaging, not listening to the voice mail and answering the call
because the user has caller ID, not listening to the voice mail to avoid expending on the
service and waiting until the person calls again.
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19. MAVAM | 3. MAVAM Argentina
Graphic 17.
Use of Voice mail
Basis: 48% of the respondents
3.1.5. E-mail
57% of respondents said that they have a cell phone allowing the setup
of an email account and 19% thereof have Push mail in their phones,
regardless of their use or not. Percentages are somehow high and should not
be considered valid at the country´s level as the users surveyed are familiar
with technology.
14% of respondents confirmed that they have set up an email account in
their cell phones. However, if we consider only those who use email on a
daily basis or use it several times a week, the percentage is reduced
to 9.1% of respondents. Today, this adjustment is the best e-mail
market estimator.
As regards Push mail, those who have set up this option and used it in the last three
months (5.75% of respondents), use the service on a daily basis.
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20. MAVAM | 3. MAVAM Argentina
Graphic 18.
E-mail in cell phones:
Devices and use
Active user: Used e-mail in the last
three months and have used it daily
or several times a week
3.2. Entertainment
Mobile entertainment can be divided into two large groups; one where
entertainment is available through preloaded games, radio or MP3, and the
other, where entertainment is available through the download of ringtones,
video, images and music.
Except for ringtones and for the use of games in the cell phone, it should be noted
that this MAVAM´s edition, the data of which was collected through Internet,
represents a group of users particularly familiar with technology (advanced users).
This highly affects the adoption of value-added services in relation to the whole
market and should be taken as reference and should only represent a group of
inhabitants using cell phones and having access to the Internet.
As regards downloads for entertainment, images and pictures (21%) and music
(14%) have been largely downloaded in the last three months. However, it
should be noted, that there is no detail on whether these downloads were
made through mobile network or through device data exchange (Bluetooth
or computer phones).
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21. MAVAM | 3. MAVAM Argentina
As regards ringtones, music and images and games, download percentages are extremely
reduced if active users are considered; that is to say, those who download them on a daily
basis, several times a week or once a week.
As regards videos, the gap between active users and frequent users is narrower; but the basis
is very small (less than 50 cases).
Figures show that within the entertainment market there is space to grow in terms of
penetration (a larger number of users) and use.
Graphic 19.
Entertainment-related
downloads in
the last three months
It is necessary to understand that within advanced users, entertainment-related downloads
focus on free content. Therefore, operators
may find data service prices
more important than the
contents price.
The contents which users are
more open to are paid games
(38% made paid downloads)
and ringtones (37% made
paid downloads).
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22. MAVAM | 3. MAVAM Argentina
Graphic 20.
Entertainment:
Type of download
Although the percentage of users who pay for downloads is very low, this sample shows that
the suggested prices (charged9) amount to $4 per download.
Music Ringtones Games Video Images
Average Price per download $AR 4 $AR 4 $AR 7 $AR 5 $AR 4
3.2.1. Games (Use and downloads)
88% of respondents have cell
phones with preloaded games.
However, only 76% of such users
use them (equivalent to 67% of
9 It should be noted that users answer based on the total number of
the Price charged, that is to say, what they respondents).
think they have paid and there is generally a
distortion from actual content prices.
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23. MAVAM | 3. MAVAM Argentina
Graphic 21.
Preloaded games
In average, respondents use preloaded games 13 times a month. But it is worth mentioning
that 44% are frequent or active users of preloaded games (they use them on a daily basis and
between 2 and 3 times a week), while only 23% occasionally use them.
Graphic 22.
Frequency of use of
preloaded games
in cell phones
(Basis: who use preloaded games
in cell phones - 76%)
Users who downloaded games (13%) use them more frequently than those who use
preloaded games. In average, they use downloaded games 16 times per month. 38% of
respondents have paid for downloads; their average price is $AR 7.
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24. MAVAM | 3. MAVAM Argentina
3.2.2. Music (Use and Downloads)
Almost 64% of the respondents’ cell phones feature the possibility to
either use the radio or use the MP3. Generally, almost 100% of
respondents having a device that allow them to listen to music through
their cell phones actually use this feature.
Graphic 23.
Cell phones with radio
and/or MP3
50% of respondents listening to music through their cell phone do so on a daily basis.
Should we add those who listen to music 2 to 3 times a week, we can assert that cell phones
are the favorite devices for such purpose. This habit is an active habit among mobile users.
Graphic 24.
Frequency of use of
music in cell phones
Basis: Those having cell phones
with radio or MP3 and
answered they listen to music.
(64% of users)
14% of users downloaded music in the last three months. 78% of downloads were for free.
Respondents download music 9 times per month in average.
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25. MAVAM | 3. MAVAM Argentina
The frequency of downloads is divided between those who rarely make downloads (40%)
and those who actively do it (daily, weekly or several times a week) and they represent 44%
of respondents who have downloaded music in the last three months.
Graphic 25.
Frequency of music
downloads
Basis: 14% of the sample.
3.2.3. Ringtones (Downloads)
9% of respondents downloaded ringtones in the last three months.
Generally, downloads are rarely made (monthly, occasionally in 69%
of cases). In average, ringtones are downloaded 5 times per month,
and 63% of downloads are free.
3.2.4. Images (Downloads)
21% of respondents have downloaded images in the last three
months. However, those who frequently download images (on a daily
or weekly basis or several days per week) only represent 5% of
respondents. 88% of downloads are for free. Those who have paid to
download images spend $AR 4 in average per downloaded image.
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26. MAVAM | 3. MAVAM Argentina
3.2.5. Video (Downloads) and Mobile TV
(watching)
In average, 6% of respondents have downloaded images in the last three months.
Frequency of downloads is high (on a daily or weekly basis or several days per week).
90% of downloads are for free.
The number of respondents who have watched mobile TV is significantly low (less
than 1%).
3.3. Mobile Internet
Within this sample, 59% of respondents have a cell phone whereby they can access
the Internet, regardless of their actual use or not. They were asked which network
they used. 78% of respondents use the mobile operator´s network, 7% of them
only use Wi-Fi and 15% both.
Graphic 26.
Mobile Internet Access
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27. MAVAM | 3. MAVAM Argentina
Although users know the different connection methods that can be used to access the
Internet through a cell phone, only 19% of respondents have used their cell phone for
Internet. This percentage (19%) is too high to consider it valid for more than 52million
existing lines in Argentina. However it is a good mobile Internet adoption level
gauge for advanced users (use fixed internet and have mobile phones).
19% of respondents having access to the Internet through their cell phones think
that a browser (78%) and Wireless Application Protocol (WAP) (33%) are most
commonly used.
If we only consider those who access the Internet on a daily basis or several
times a week, we can conclude that 14% of respondents are mobile Internet
active users.
This survey, carried out among Internet users having cell phones, is important
due to the fact that it shows that the use of mobile services is affected by the use
of Internet through a computer. Use of Internet requires a higher level of
knowledge in relation to other services, such as SMS. That is to say, there is a
chance to increase the use of mobile Internet and in general, this will bring benefits if the
use of fixed internet is also increased.
Graphic 27.
Mobile Internet:
devices and use
59% of mobile internet users in the last three months asserted they have hired a data plan.
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28. MAVAM | 3. MAVAM Argentina
3.3.1. Social Networking
15% de of respondents accessed a social network in the last three months. The mostly
used social networks include Facebook (98%) and Twitter (31%).
In average, for this sample, respondents access social networks 19 times per month. As
regards both Facebook and Twitter, 74% of users access those networks on a daily basis.
Graphic 28.
Cell phone social
network access
Answer: multiple choice.
Basis: 15% of the respondents
having access to social networks
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29. MAVAM | 3. MAVAM Argentina
3.3.2. Mobile Money and Mobile banking
The number of existing cell phones and the low levels of banking services in regions such
as Latin America are interesting for the development of mobile banking and/or mobile
services as monetary distribution channels.
In this MAVAM´s edition we focused on two aspects: mobile banking only accessed by
banked population and the use of cell phones to transfer credit to subscribers.
The results show that 5% of respondents accessed a bank through their cell phones and
made payments, while 15% thereof, transferred credit from one cell phone to another.
Graphic 29.
S
Use of money and
mobile banking
It should be noted that online
banking (bank web sites that can
be accessed by cell phone) is
widespread in Argentina. Many
market studies show that inquiries
are made by cell phones rather
than by the banks´ web sites.
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30. MAVAM | 3. MAVAM Argentina
However, the use of cell phones as a means of payment has not been widely developed in
Argentina. To sum up, there is a chance to develop mobile banking and mobile money
business lines.
3.3.3. GPS and Maps
7.1% of respondents have used GPS and/or maps through their cell phones in
the last three months. The figure is too high to consider it valid for all mobile
users in Argentina. Therefore, this information is taken as a reference and is
applicable to those users who have cell phones but who also use Internet
through desktop computers.
3.3.4. Mobile Marketing and advertising
Mobile marketing and advertising comprise a broad and wide cross group of practices that
ranges from banners in the operator´s web site, to advertising SMS and most sophisticated
options involving users´ interaction.
To organize this group, MAVAM classifies practices in two large groups: Mobile
marketing, referring to advertisements made by operators, and Mobile Advertising,
referring to advertisements made by companies other than operators.
This MAVAM edition assesses the practices related to the use of messaging for advertising
or promotion.
89% of respondents declared that they have received an SMS or MMS with promotions
or advertising in the last three months.
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31. MAVAM | 3. MAVAM Argentina
Generally, for this sample, users
highly receive advertisements or
Graphic 30. promotions in their cell phones.
Received advertising 33% receives advertisements and
or promotion in their promotions in their cell phones
cell phones in the last between 2 and 3 times a week. In
three months average, respondents receive 13
advertising messages per month.
14% of respondents do not
remember the advertising issuing
party, while 74% state that they
receive messages from their operator
(mobile marketing). 12% have
Graphic31. received messages from companies
Frequency of advertising SMS/MMS in cell phones other than their operators (mobile
advertising).
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32. MAVAM | 3. MAVAM Argentina
Graphic 32.
Mobile advertising issuing party
62% of users declared they carefully read
the messages received in their cell phones,
while 38% do not. We consider that these
percentages can be enhanced by
accurately focusing on the users segment,
the sending of messages and their consent
to receiving advertising messages.
For your information, MAVAM Brazil´s
seventh edition deeply analyzed mobile
marketing and advertising in the country.
Segmentation based on preferences and
the users’ consent were considered
significant to enhance message receptivity.
Although conduct is affected by cultural
aspects, MAVAM Brazil data can be used
Graphic 33. as a reference as to the significance of
Were advertising segmentation and the users’ consent to
messages carefully extend mobile marketing
read? and advertising business.
Among those who have
carefully read
advertisements, many
declare that the messages belong to
the operator and consist of discounts in
services and/ or recharges mostly related to
SMS or data packages. The
mostly mentioned second item
refers to contests to win money
or prize draws of vehicles.
Finally, messages may include
discounts at stores and
operator´s loyalty programs.
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33. MAVAM | 4. Conclusions
4 Conclusions
Argentina is the Latin American country with the highest percentage in VAS contribution
to the operators’ total sales. In 2010, they represented 36.88% of mobile phone
companies’ annual sales.
Value added services increased 40% in 2010 in relation to the previous year and sales
amounted to almost $AR 9,445 million, while voice mail services only increased 13%.
The increase rates show the importance of VAS in the operator’s current business.
SMS represent the highest VAS earnings (72% of the total VAS). However, data services’
segment is the one that mostly increased in 2010, almost 50%, mainly
encouraged by Smartphones.
In Argentina, in average, 126 SMS are sent per month. The
figure exceeds the world average (101 SMS per month).
97% of respondents to Acison MAVAM´s survey used
SMS in the last three months. Respondents send 270
SMS per month in average. These users are familiar
with technology, which has a positive impact on
service consumption.
In Argentina, the high penetration of post-
paid services (27% against 17% in Latin
America), SMS mass adoption and
Smartphones proliferation have given place
to a more sophisticated offering and a
higher mobile service packaging as
opposed to what happens in other Latin
American countries.
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34. MAVAM | 5. Technical Data Sheet
5 Technical Data Sheet
Universe Cell phone users with Internet access
Technique CAWI (Computer Assisted Web Interviewing)
Instrumento Pre designed survey 15 minutes
Sample 800 respondents
Country Argentina
Date of survey February 28 through March, 2011
Gender Sample
Men 389 48.63%
Women 411 51.38%
Age Muestra
14 - 24 156 19.50%
25 - 34 284 35.50%
35 - 44 188 23.50%
45 - 54 129 16.13%
55 + 43 5..38%
Place of residence Sample
MABA 392 49.00%
Provinces 408 51.00%
SEL Sample
D1 230 28.75%
C3 306 38.25%
C2 188 23.50%
ABC1 76 9.50%
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35. MAVAM | 6. Glossary
6 Glossary
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 done manually,
in other words by user’s initiative, or can be activated through the push mechanism, which
periodically and automatically receives and sends mail.
Instant Messages: service which permits access to instant messaging systems like MSN
or Yahoo.
Answering Machine or Voice Messaging: gives access to the automatic messages
recording 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. The
handset must be able to play several music formats such as MP3, AAC, MP4, WAV,
among others.
Ringtones: 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 on the
cell phone. The handset must be able to display several formats of pictures and images such
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 be able to run the games available in the device and also the downloaded ones, and
additionally provide Bluetooth or data connectivity for internet access (eg.: EDGE,
EVDO, or 3G).
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36. MAVAM | 6. Glosario
Video: service which provides the download of videos or video streaming to be played on cell
phone. The handset must be able to play downloaded videos or received video streaming. The
cell phone must be able to play videos in 3GP, MP4, WMV, AVI, among others.
Open TV: This feature is present in some cell phones and permits user 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 phone
or 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:
• Using a browser to access the same websites accessed by fixed internet through a
computer. Examples of browsers: the ones offered by the cell phone or
smartphone (Internet Explorer Mobile, for Windows Mobile), or alternative
browsers such as Skyfire or Opera.
• Accessing the WAP websites inside the Carrier network through WAP browser.
• Through specific programs installed in the handset (Widget, Web-App)
provided by companies like Yahoo Mobile.
Modem: devices which can be connected to desktop computers or notebooks.
Provides Internet broadband connection using a computer browser (Internet
Explorer, Firefox, and others).
Social Networks: service which includes all the necessary elements to provide access
to social networks such as Orkut, Twitter, Facebook, and others. This access can be
done through browser and internet access, both present on cell phones, or through a
specific application provided by mobile operators or other companies.
Payments and Banking: usually offered by banks or other credit institutions, which
allows the access to users accounts in these institutions. These services can range from
simple balance consults to the payment of bills or conclusion of investment transactions.
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37. MAVAM | 6. Glosario
Location Based Services: service which provides users’ geographic location. These
services have the following characteristics:
Location can be provided as the following:
• Through a process of triangulation using information from cell sites and
application systems provided by the operator for this purpose;
• Through the GPS installed in the cell phone.
Offered Services:
Location: service usually offered by the mobile operator which allows informing the
geographic location of a particular subscriber. Eg.: service hired by parents to monitor
their children’s habits, or with the purpose of promoting safety.
Maps: service offered by other companies providing maps on cell phones, usually to
locate addresses, and also permits to locate users in the map if their handsets have a
built-in GPS.
Contextual Filter: permits the mobile operator, or other service providers, to offer
addresses or other types of promotions at stores, restaurants, movies, among others,
based on the instant location of users.
Mobile Marketing The services in this category can be defined as:
Mobile Marketing: these services are implemented by mobile operators, to advertise the
operator itself or other companies for the subscriber base. Usually these ads are sent via SMS.
The advertisements can also be sent directly by competitor carriers or other companies, again
using SMS messages.
Mobile Advertising: similar to Mobile Marketing, Mobile Advertising is also an advertising
service implemented by mobile operators or other companies. If the subscribers agree to receive
it they can participate of promotions such as free minutes, free SMS packages, and others, as a
reward for receiving advertisements.
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38. MAVAM | 7. Team
7 Team
Rafael Steinhauser | President Latin America
Jorge Leonel | VP Marketing and Business Development
Edson Melo | Marketing Manager Latam
Mariana Rodriguez Zani | Diretor
Inés Leopoldo | External International Advisor
Matías Guardiola | Research Manager
Lina Rivero | Analyst
Andrea Catalano | Analyst
Mónica Perez Serantes | Designer
Cristian Marchiaro | Account Manager
Dolores Lezama | Account Excecutive
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