It is with great pleasure that we present to you a brand new edition of the Netsize Guide 2010, Mobile Renaissance. For the first time in its 9-year history the book is now updated in its publication year with five new interviews and hot new 2010 telecommunications market data. We´ve kept the original 2009 data, providing you with a unique quarterly view on the mobile telecommunications market trend in 40 countries globally.

Download the Netsize Guide 2010 Updated Edition

Share with us your opinion of the Netsize Guide. Please take a moment to take part in our Netsize Guide reader survey. The questionnaire will take a few minutes to complete. Your feedback will help us to stay focused on what matters to you.

Take the Netsize Guide reader survey

We´d also like to stay in touch with you via social media. Follow @NetsizeCorp and @NetsizeGuide on Twitter. You can also visit our Netsize Guide microsites – Mobile Renaissance and the Netsize briefing room on MSearchGroove – where you are welcome to post your suggestions regarding new topics and trends you feel we should explore in the Netsize Guide.

We are confident you will benefit from the content and case studies we are covering in our upcoming projects, and we look forward to learning what content and companies you would appreciate most.

Drawing from a survey of 1,000+ mobile professionals and practitioners across 67 countries, the report concludes that credit card billing is by no means the way to reach a large and global audience.

The survey found that 85 percent of respondents indicated that operator billing is a key enabler, 39 percent also included credit cards in the mix. A me-too application storefront modeled on the Apple blueprint is not enough.

Payment methods with greatest growth of importance in next five years

The increasing importance of mobile billing schemes relative to credit cards concurs with the findings of Edgar Dunn & Company 2009 Global Payment Trends Survey.

Payment professionals indicated that contactless cards, remote mobile payments and, to a lesser extent, prepaid card products will gain the most importance in the coming 5 years. See chart 1.

In another study, Edgar Dunn & Company identified younger consumers (18 to 30 years old) as the most interested in such alternative payment products, followed by eBay sellers, convenience seekers, and users without access to credit. See chart 2.

Which customer segment is more receptive to alternative payment products

In its 2009 annual report eBay noted that in 2009, more
than $600 million worth of sales were transacted through its mobile applications.

The success of mobile payments relies on speed, convenience and trustworthiness. These are the key enablers “sine qua non”.

Merchants will not implement a new payment mechanism if implementation costs are high, consumer awareness is low and it carries risks of chargebacks, according to the same report.

The good news is that around the world the industry – meaning, mobile network operators, financial institutions, industry regulators and government bodies – are collaborating to ensure that mobile payments will be just that: upright, unfailing and ubiquitous, and a solid alternative to established online payment methods.

Payforit in the United Kingdom is a striking example of a payment method that has made the leap forward from a mobile web-only scheme to the Internet and mobile web at large – be it in the UK, for now.

Online stores and retailers, whether selling “just apps” or more, should look beyond the card.

Referenced reports:

Netsize, the leading mobile commerce and communications enabler, today released “Unlocking the Value of Mobile Commerce”, a report that examines the role of mobile in (online and physical) retail and commerce.

The free report includes exclusive research on the value amounts that people are ready for and willing to pay through their mobile phone for pricey items that go beyond the usual mix of transport tickets and parking tokens.

The report contains data from a Netsize survey of 1,000+ mobile professionals and practitioners and concludes that mobile payment is poised to super-charge shopping as users show a significant interest in buying digital and physical goods and services with their mobile phone.

Key findings:

• While almost all respondents (94 percent) said they would be “very likely” or “somewhat likely” to purchase goods totaling up to €25.00 using their mobile phones, 83 percent of respondent indicated that they would be open to pay for items such as concert tickets (valued at amounts up to €50.00) with their mobile phones.

• Additionally, over half (51 percent) of respondents reported they would be likely to purchase physical goods for amounts up to €100.00 with their mobile phones. This figure confirms the huge growth potential for mobile commerce and increased interest in new ways to shop and buy.

• Payment mechanisms are critical to the quality of the mobile shopping experience. In fact, respondents stressed they value the freedom to choose the method they prefer. Specifically, most (60 percent) respondents report that payment choice is important to them.

• Mobile commerce is poised to reach new heights provided the industry addresses a number of key issues. Clearly, companies and merchants are called on to provide a choice of payment methods. However, all companies across the emerging mobile commerce ecosystem must work together to remove the regulatory barriers that make mobile commerce a challenge.

The full report is available from http://www.netsize.com/Ressources_mCommerce-Report.htm

Planet of the Apps is Europe’s premier conference for those involved in mobile apps. The conference brings together brands, mobile operators, device manufacturers, agencies and developers during three days in London.

Netsize is taking part in the panel sessions on Money and Marketing, discussing the opportunities and pivotal changes brought forward by the mobile device and apps in financial transactions.

Paris, July 19, 2010 — Netsize, the leading mobile commerce and communications enabler, today announced the key to unlocking micropayments online: Netsize mPayment with Payforit version 3.

Click image to view mPayment with Payforit v3 product details

For the first time UK consumers will have a simple, straightforward and trustworthy route to buy digital as well as physical goods and services. Consumers can make transactions online and via WAP using any mobile phone. Merchants benefit via a simplified route to market that accelerates ARPU.

Payforit v3 offers trust, convenience and ease of use. It is supported by all mobile network operators in the UK. Payforit enables consumers to make online purchases from their PC or mobile phone and securely charge the payment amounts to their phone bill. Payforit v3 supports payments from all mobile devices, including WiFi-connected phones.

Netsize mPayment enables Payforit on Web, WAP and Web Lite transactions and also supports single click purchases and subscription services billing with Payforit.

“Netsize mPayment with Payforit v3 provides merchants with a ‘country on a plate’”, says Stanislas Chesnais, Chief Executive Offer, Netsize. “Now merchants can easily start with mobile payments in the UK and focus on promoting their offer, while mPayment with Payforit handles the technical complexities and helps ensure regulatory compliance.”

mPayment with Payforit offers merchants increased pricing flexibility. The easy check-out process significantly improves the rate of successful transactions. The number of clicks and keystrokes needed to make a payment is reduced by more than 50 percent compared to credit cards.

As SMS payment for web based transactions is now not allowed in the UK cross-network, Payforit v3 is the single mobile payment alternative available to merchants, offering a superior user experience.

“For the first time, merchants can take advantage of a mobile payment product in the UK that is secure, easy to use and offers payout rates similar to cards. mPayment with Payforit v3 enables them to do business online with consumers who have no credit card, debit card or PayPal account,” Stanislas Chesnais adds. “Payforit v3 has the potential to expand the UK market. It marks an important step towards an m-commerce economy.”

Visit www.netsize.com for more information about Netsize mPayment with Payforit v3, and sign up for a trial account.

Mobile World Congress, Barcelona, February 15, 2010
Netsize, the leading communications and commerce enabler, today launch Netsize Direct Billing, the unique managed Direct Billing solution for Mobile Network Operators.

Direct Billing is a billing method that charges mobile payment amounts directly to the end user’s mobile phone subscription. It does not require intermediate WAP pages or premium SMS.

Netsize Direct Billing provides mobile operators with a direct billing solution that integrates seamlessly with their billing platform. It is provided as a fully managed service that minimizes the mobile operator’s time and resources that would be required to deploy a direct billing offer. In addition Netsize provide a direct billing API that enables third parties to launch mobile commerce services.

“As a relatively new billing method, Direct Billing delivers operators tremendous benefits for launching mobile commerce services, including ticketing and money transfer,” says Stanislas Chesnais, Chief Executive Officer, Netsize. “We estimate that operators would need a year to launch an in-house developed direct billing offer. Netsize Direct Billing shortens their time-to-market significantly to a few weeks, enabling the operator to catch the mobile commerce wave now.”

“Netsize Direct Billing is the first offer that springs from the Gemalto investment in Netsize,” says Jean-François Schreiber, Senior Vice President, Telecom Solutions and Services, Gemalto. “Gemalto’s worldwide presence enables Netsize to venture into new regions and provide operator groups with a common global platform.”

Netsize provide operator direct billing solutions to most of the large mobile device vendors for their application stores. Netsize is global leader for third party direct billing.

Netsize present Direct Billing at Mobile World Congress, Barcelona, Spain, 15-18 February 2010, at stand 2.G51 in Hall 2.

Netsize offers mobile payment solutions based on operator billing (through premium SMS, MMS and WAP for example) for 100 mobile operators in 28 countries, reaching over 1 billion billable subscribers worldwide, and provides mobile messaging, with SMS and MMS delivery to over 200 countries.

Netsize was founded in 1999 by Stanislas Chesnais, who will remain as CEO. Prior to this capital increase, Gemalto already held 24% of Netsize. Headquartered in Levallois Peret, near Paris, France, Netsize employs approximately 180 people. Netsize will continue to operate as a stand-alone company within the Gemalto Group.

Olivier Piou, Chief Executive Officer of Gemalto, stated: “Gemalto invested in Netsize back in 2001 and was the first and largest outside investor in Netsize. It is natural extension of our long term relationship that Gemalto now becomes Netsize’s majority shareholder. Netsize’s mobile payment platform complements our rapidly expanding mobile software and services offering.”

“Netsize has been a pioneer in mobilizing business and commerce” commented Philippe Vallée, Executive Vice President for Telecom at Gemalto. “Netsize’s “one click” mobile payment solution is a key brick in enabling the monetization of mobile phone downloads and app-stores”.

Stanislas Chesnais, Founder and CEO of Netsize, added “Gemalto’s investment will facilitate our expansion into new markets such Latin America, Africa and South East Asia. We look forward to leveraging Gemalto’s digital security technology to make mobile payments even more pervasive and convenient”.

Investor Relations
Vincent Biraud
M.: +33(0) 6 08 48 33 23
vincent.biraud@gemalto.com

Corporate Communication
Rémi Calvet
M.: +33(0) 6 22 72 81 58
remi.calvet@gemalto.com

About Netsize
Netsize is a leading mobile communications and commerce enabler. Netsize solutions include Mobile Messaging, with SMS and MMS delivery in 200 countries; Mobile Payment through operator-based billing (Premium SMS, MMS and WAP) in 28 countries; and Mobile Content Management platforms with publishing & editing tools to manage messaging services and mobile Internet portals. Netsize manages more than 60 million mobile transactions per month for 800 customers worldwide, including Fortune 500 companies. With 180 employees in 10 offices worldwide, Netsize provides both robust technical infrastructure and marketing expertise to support this successful deployment on a global scale.

For more information about Netsize please visit www.netsize.com

About Gemalto
Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2008 annual revenues of €1.68 billion, and 10,000 employees operating out of 75 offices, research and service centers in 40 countries.

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.

Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as subscriber identification modules (SIM), Universal Integrated Circuit Card (UICC) in mobile phones, smart banking cards, smart card access badges, electronic passports, and USB tokens for online identity protection. To complete the solution we also provide software, systems and services to help our customers achieve their goals.

As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.
For more information please visit www.gemalto.com.

The largest mobile network operator is Vodacom (52% market share, source: Vodacom), MTN is second (35% market share, source: MTN) and Cell C, a subsidiary of Saudi Arabia’s Oger Telecom, is third (4.2 million subscribers, 8.8% market share, source: Cell C). Some 7% have 3G subscriptions.

Mobile, anyone?

South Africa is a very attractive market for mobile services. According to a report from Frost & Sullivan, demand for mobile content services in South Africa will grow by an average of 15 per cent per year until 2013.

It is also the most advanced mobile territory in Africa, with a European-style infrastructure, and consumers whose first introduction to telecoms and the web comes from mobile. Mobile broadband usage is as common as fixed line.

The Mobile Marketing Association recently released some interesting statistics about the phenomenal growth in this market and the current state of mobile adoption in South Africa, as summarized in an article by 20fourLabs.

South Africa is a nation sparkling with confidence, higher than many parts of the world (source: Bureau for Economic Research), and with great ambitions as the 2010 World Cup is gripping this sports mad country!

Launching mobile content services in South Africa

In November Netsize launched its mPayment operator-based billing solution with South Africa coverage with MO premium and MT premium billing. On Vodacom and MTN (total 87% market share) both MT and MO premium are available, and a long number for sending and receiving messages.

Multiple price points per short code are possible. MO premium is available on Cell C with a single price point per short code. For the most common price points shared short codes will be available.

Applications …

Popular mobile applications include banking (money transfer services), advertisement (mobile marketing) and entertainment (content/infotainment and social networking).

Whereas traditional direct marketing and online marketing is costly and less effective due to the language situation and lack of broadband access, mobile is providing an alternative marketing channel. Direct and personal, it has the widest reach of all in this vast country.

With 4 times more people using sms than email, it is clear that in this country the mobile is everyone’s “first screen.”

Regulatory aspects

As most countries, South Africa has put in place industry self regulation. The WASPA Code of Conduct promotes fairness and decency in dealings with subscribers and members in the content value chain.

Advertising must follow the rules in the Advertising Code of Conduct, with clear communication on pricing matters. Operators have set some specific rules as well in particular for MT subscription services.

Online seminar

If you would like to know more on how to launch mobile content services in South Africa and Netsize mobile messaging, billing and marketing solutions, we invite you to view the Netsize online seminar on South Africa at www.netsize.com.

Netsize, a leading mobile commerce and communications enabler, today announces that it has extended the network coverage of Netsize mPayment, its solution for global remote payments, with three mobile network operators in South Africa, Vodacom, MTN, and soon, Cell-C.

The expansion follows the acquisition by Netsize of Africa2you’s assets, a wireless services provider based in Johannesburg, South Africa.

“South Africa is at the forefront of mobile, having one of the highest growth rates for mobile content services,” says Stanislas Chesnais, Chairman and CEO, Netsize. “With Netsize mPayment, content providers can use operator-based billing for charging pay-per-use and subscription services.”

In addition, Netsize announces the availability of subscription services billing with Netsize mPayment on the network of MTS, the largest mobile network operator in Russia with close to 66 million subscribers.

Netsize mPayment enables clients to define alias, end user price point, billing frequency, retry scheme and expiry date. End users confirm their subscription service opt-in by sending an SMS MO message. Opt-in through WAP or PIN-code authenticated web request will be available in the first quarter of 2010.

The new services will be presented in a live online seminar on November 26, 2009.
For more information and to register for this seminar please visit www.netsize.com

Netsize Smart Application Billing enables Application Stores to use operator based billing to charge for application downloads and usage, and permits charging from the mobile application itself.

“Reaching the largest consumer audience and making it easy to buy content are the key success factors for Application Stores. With Smart Application Billing they reach 1.3 billion consumers globally, and consumers can conveniently purchase applications and application extensions via their mobile operator phone bill in both Pay per Use and Subscription business models,” says Stanislas Chesnais, Chairman and CEO, Netsize.

“Our Application Store customers observe an increase of their revenues by 400% as soon as they add operator based billing. Having an alternative for credit card billing clearly removes an obstacle in the purchasing process.” He adds, “On Application Store visits that use a mobile device over a Wi-Fi connection we record a 30% increase in payment transactions. It proves the business case for operator based billing as a successful internet payment method.”

Smart Application Billing uniquely combines three operator based billing methods: Direct Operator Billing, Premium SMS Messaging, and WAP Billing. Depending on the characteristics of the consumer’s network operator Smart Application Billing dynamically proposes the preferred billing method to the application. Direct Operator Billing and Premium Messaging allow the user to make the payment while remaining in the application. WAP Billing is used when the other methods are not available. The user makes the payment outside of the application on a mobile internet payment page.

Direct Operator Billing is the billing method where an installed application on a mobile handset initiates a billing transaction via Netsize directly to the user’s mobile network operator.

Netsize is the delivering operator billing solutions to some of the largest Application Stores. Sony Ericsson has chosen Netsize mPayment for PlayNow™ arena to cover multiple countries in Europe.