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Mobile Gaming To Grow |
12 Oct 2004 Having generated revenues of $237.4 million in 2003 according to IDC, the
wireless gaming revenue has been predicted to grow at CAGR of 40%. According to a joint study by AT Kearne, Cambridge University and Mobinet,
around 41 percent of the global wireless users are expected to use mobile data
services daily within the next year. Break up data services further and you have a flourishing wireless gaming
market besides applications like mobile email and photo messaging, that
generated revenues of $237.4 million in 2003 according to IDC's latest report on
Asia/Pacific Wireless Gaming 2004-08 Analysis and Forecast (excluding Japan).
The research firm believes that this is expected to reach $1.3 billion in 2008
-a CAGR of 40 percent. According to Telecom Regulatory Authority of India (TRAI), the average
revenue per user (ARPU) of mobile operators for quarter ended March 2004 was Rs
436, down from Rs 457 in the previous quarter. Also average monthly ARPU in
India is around $11, compared to $72 in Japan and $53 in North America. A report from research agency In-Stat MDR on the wireless market in India
says that the ARPU for Indian mobile operators shows declining prospects over
the next several years as growth among the less affluent subscribers is expected
to take a hold. The report also predicts ARPU to decline from the present $11 to
$10.58 by 2007. However, it predicts a steady growth after 2009 when newer data services
become more widely used. Hence, it is imperative that mobile operators have to roll out attractive
voice and data services for the anticipated big-ticket growth in the wireless
market. E-mail was the frontrunner for increased usage of personal computers.
Similarly, mobile operators too have to introduce applications that can boost
the mobile usage to a large extent. It's evident that operators have recognized the revenue potential that data
services can bring in. Though the current revenues being generated by the
non-voice services are not meatier than the voice-based services, operators have
brought in a fresh crop of prospects offering various wireless-related
entertainment services. Among them is wireless gaming, which is conjuring up the
market wildly. Adding feathers in this wireless gaming ecosystem are the carriers that are
providing next generation networks. Hutch, has recently announced its plans to
provide EDGE service (GSM subscribers) for better voice and data transfers. Also
CDMA 2000 1xEV DO have been in place for quite some time. Color phones with General Packet Radio Services (GPRS) for high-speed
Internet access that allows better browsing and easier downloading of games are
also becoming popular with customers. However, operators can make this service
user-friendly only by providing top 10 games, user preferences, ease of
downloads and clear instructions to follow. Games such as Tom Clancy Splinter Cell and Lara Croft Tomb Raider are gaining
popularity and selected range of consumers are willing to fork out the extra
money to pay for premium games. With the demand thus seen in consumers downloading and playing games, there
seems an accelerating need for feature-rich handsets. Betting high on this
demand, equipment manufacturers are introducing advanced multimedia phones,
convergence chipsets, enhanced PDA's and many more into the market. If better marketing, lower data prices, greater service availability, faster
transmission speeds, richer handset features and more intuitive user interfaces
were to add colors to this picture, it would mean a revenue of Rs 14,800 crore
in India - of course, by the end of 2008 - as per the Gartner report
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