
March 12th 2009
Issue 18
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Mobile services to capture
more advertising revenue in emerging markets
As market penetration rates for mobile services continue to soar
in emerging markets, advertisers are expected to dramatically increase
their spending on "third-screen" ad campaigns targeted
specifically to users of mobile data services, providing a potentially
huge new revenue stream for operators of mobile networks, according
to the latest report by Pyramid Research (www.pyr.com), the telecom
research arm of the Light Reading Communications Network (www.lightreading.com).
Mobile Advertising in Emerging Markets examines mobile advertising
initiatives and the revenue potential in emerging markets, with
a particular emphasis on Brazil, China, Indonesia, Mexico, Romania,
Russia, South Africa, and Turkey. This 84-page report puts Pyramid
Research's findings in context by making comparisons with global
trends and developed markets, such as the U.S. and the U.K. Download
an excerpt of this report here.
Pyramid predicts that mobile advertising will boost mobile data
service revenue by 10 percent within the next five years, as mobile
service adoption rates grow worldwide. Mobile data services are
expected to account for more than 33 percent of operators' service
revenue at the global level by 2013, making any driver of this market
a strategic component.
The expected growth in mobile data subscriptions will make mobile
advertising a robust growth area despite an expected overall downturn
in advertising spending over the next two years, notes Jan Ten Sythoff,
manager of Mobile Content at Pyramid Research and co-author of the
report. "Fixed-line Internet and mobile platforms will take
market share away from traditional formats in the short term and
grow in line with economic recovery from 2011 onward," say
Sythoff. "Mobile and Internet platforms combined will account
for roughly 12 percent of overall advertising spending in emerging
markets and 30 percent in developed countries by 2013," he
adds.
The Pyramid report identifies eight developing markets in which
mobile advertising initiatives are gaining ground. Combined, these
markets will account for more than 35 percent of mobile subscriptions
worldwide by 2013. "South Africa and Indonesia stand out as
markets where the mobile sector's share of overall advertising spending
will surpass that of the Internet medium as early as 2009,"
says Sythoff.
"The development of mobile advertising is favorably affected
by mobile networks' evolution to 3G, but even basic services, such
as sponsored messaging and alert systems, are enabling brands to
reach a wider audience and make the most of the mobile channel,
Sythoff adds. "For example, SMS-based approaches can help companies
reach more than 60 percent of the mobile audience across emerging
markets immediately and close to all subscribers in five years."


Alfa held in contempt for second
time by US Court
A US federal court in
New York yesterday held four Alfa Group companies in contempt for
the second time for their failure to comply with the court's orders
confirming the Kyivstar arbitration award. Shortly after the hearing
ended, Telenor heard rumours that a Russian bailiff acting on behalf
of Farimex Product, Inc. had arrested all of Telenor's shares in
Russian mobile operator VimpelCom. This was confirmed this morning...

Uplogix names Transcendent Global
Networks LLC as channel partner
“The network management
solution from Uplogix is ideally suited for managing satellite equipment
and the associated IT infrastructure in remote environments,”
said Greg Berlocher, President of Transcendent Global Networks...

Orbital Board of Directors authorizes
new $50 million stock repurchase program
Orbital Sciences Corporation
has announced that its Board of Directors has authorized the company
to repurchase up to $50 million of its common stock over a 12-month
period beginning immediately. The new stock repurchase authorization
will overlap with a previous $50 million authorization that expires
on May 2, 2009. Orbital currently has approximately $3 million remaining
under that plan...

New Telenor heads in Serbia and Russia
Kjell Morten Johnsen has
been appointed new CEO of Telenor Serbia, replacing Stein-Erik Vellan,
who has been nominated head of Telenor's initiative in India. Mr.
Johnsen will take up his new position as of March 16 this year.
New Head of Telenor Russia will be Ole Bjørn Sjulstad...

Ericsson board proposes a long-term
variable renumeration program
Ericsson's Long-Term Variable Remuneration Program
is an integral part of the company's remuneration strategy and the
Board of Directors has therefore decided to propose that the Annual
General Meeting on April 22, 2009, resolves on a continued Long-Term
Variable Remuneration Program 2009 (LTV 2009) which is in all material
respects similar to the previous programs.The program comprises
in total 27 million B-shares...


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