Figure 1 : Flow of Funds in Malaysia’s Networked Content Industry

(1)

27 June 2003 Attachments

Z HL

(2)

2 A.T. Kearney/ZOHL Group/MCMC

Objectives

Figure 1 : Flow of Funds in Malaysia’s Networked Content Industry

Distribute Package

Publish

Create Publish Package Distribute

Create

Private Free- to-Air TV

Subscription TV Operator

Telcos

Private Radio Operators Advertising

Production Local Television Production Advertising Agencies

Local Record Labels

Television Talent

Music Talent

ISP / Audio- text Providers Interactive

Developers

Government Television and Radio

Wireless \ Interactive Content Providers

Source: A.T. Kearney / ZOHL Group Analysis;

Satellite Government

Advertiser

Subscription TV

Subscribers

Internet and

Audio Text Users

Wireless Data

Users

(3)

Figure 2 : Networked Content Industry Objectives

Malaysia’s National Vision

Networked Content Industry Objectives

Cultural Objectives

1. Consolidate racial and national unity through the projection of national culture

2. Encourage the production of content which is high quality, innovative and creative

3. Enrich and enhance the quality of material and spiritual living in accord with social-economic development Economic Objectives

4. Make Malaysia a major centre for the national, regional and global content industry

5. Develop required capabilities to compete 6. Achieve efficiency and financial viability

²

Social Objectives

7. Contribute to Malaysia becoming a knowledge society 8. Make access and content available everywhere and

affordable to all

9. Establish a secure, robust and safe networking environment

²

Notes: 1) Results of a government and industry survey conducted on 20 May 2003. Participants where asked to provide their personal opinion by allocating 1 through to 10 to the top 20 industry objectives.

2) For clarity sake, the survey objectives “Contribution to GDP” and “Job Creation” have been consolidated in to objective 3.

Similarly, “secure and safe environment” and “ robust network environment” are consolidated in 6.

3) Objective 9 was not identified in the survey, but found important based on CMA 1998 and draft national content policy Source: CMA 1998; Draft National Content Policy, A.T. Kearney/ZOHL Industry Survey 20 May, 2003

Relative Importance of Objectives

¹

Gained from CMA and Draft National Content Policy ³

6.4 5.7 4.5

6.3 6.3

4.8 4.0 2.5

Most Importance Least

Importance

Proposed

(4)

Current Performance and Key Issues Figure 3 : Local Content Popularity

Source: A.T.Kearney Analysis; OECD; Zenith Optimedia; Ovum; International Federation of the Phonographic Industry; ScreenDigest; Internet Software Consortium (ISC)

Television

(Local Content in Top Ten Programs)

18

63

51 51

21 18

Malaysia S.Korea France UK Singapore Canada

Audio

(Local Content % Share of Total Music revenues)

0.0

1.6

0.1 0.1 0.1 0.0

Malaysia S.Korea UK France Canada Singapore

Internet

(Web pages in global Top 500 List per million capita)

0.6

2.9

1.7 1.5

1.3

Malaysia France Canada UK S.Korea

Moving Pictures

(Number of local movies produced per million capita)

7

10 10 10

6 5

M alaysia France S.Korea UK Singapore Canada

(5)

Figure 4 : The Networked Content Industry Size relative to GDP

0.63

1.49 1.46

1.27 1.23

0.91

0 0.5 1 1.5 2

Malaysia Singapore S.Korea UK France Canada

US$0.6B US$1.4B US$5.6B US$19.9B US$16.9B US$6.3B Industry Value

Source: Local radio authorities;Zenith Optimedia; Ovum; IDC

Note: 1) These figures represent networked content related revenue only; excludes box-office revenue, records sales, SMS revenue and business internet subscription and usage

(6)

Current Performance and Key Issues Figure 5 : Access Medium Penetration

17

14

10

6 4

<1

M alaysia UK S.Korea Singapore Canada France 45

27

8 1 2

17

M alaysia S.Korea Canada Singapore UK France

12

54 46 43

19 70

M alaysia Canada S.Korea UK Singapore France

Internet Penetration (% of households)

Broadband Penetration (% of households)

Wireless Data Penetration (% of users)

21

57

43 43

26

10

M alaysia Canada Singapore UK France S.Korea

Subscription TV Penetration (% of households)

Note: 1) TV and radio penetration are not mentioned as they are close to 100% in all countries Source: A.T.Kearney Analysis; IDC; A.T.Kearney Mobinet Survey 2003; Zenith Optimedia; Ovum

(7)

Figure 6 : Percentage of Networked Content Share of Total Advertisement Spend

33

49

43

40

38

35

Malaysia Canada Singapore S.Korea France UK

Source: Zenith Optimedia

(8)

Current Performance and Key Issues

Figure 7 : Percentage of Advertising Expenditure on Malaysian Media 1998 – 2002

32 31 30 28 27

58 60 61 61 63

0 10 20 30 40 50 60 70 80 90 100

1998 1999 2000 2001 2002

Television Radio Newspapers Magazines Others

Source: ACNielsen 2002; Zenith Optimedia

(9)

Figure 8 : Effect of Made-In-Malaysia on Multinational Advertising Spend

Typical Multi-National Company Advertising Spend Allocation (RM million)

Advertising Budget Ad Agency Commission

Advertisement Production Costs

Television Air-Time Costs 1.0

0.15

0.3

0.55 Ad agencies charge a 15%

commission on all transactions

To comply with MIM, MNC’s will spend about 300K on advertisement productions, costs that can

be avoided when advertising in other countries MNC’s typically allocate

a fixed amount towards advertising spend

After agency and production costs, the residual budget will

be allocated to air-time costs

Note: MNC’s are able to screen foreign television commercials in Malaysia if it is part of a sponsorship deal with a program, however sponsorship represents an additional cost burden on the advertiser

Source: Interviews with advertising agencies

Illustrative

(10)

Current State and Key Issues

Figure 9 : Revenue Redistribution to Local Content in Television

997 million

8%

Subscriber TV Revenue

Local Content Spend

80 million

Subscriber Television Local Content Investment (RM)

76%

24%

Free-to-Air Television Local Content Investment

Foreign

40% Local

60%

Source: Malaysian Broadcasters Television Alliance; Interviews with Astro

CMA Local Content Quota

Programming Costs in 2002

Local

Foreign

(11)

Figure 10 : Estimated Percentage of Moving Pictures and Music Revenue Lost from Piracy

Source: International Intellectual Property Alliance

12 10 12

20 18 70

Canada France

UK Singapore

S.Korea

Malaysia

(12)

Figure 11:Relative Bargaining Powers of Industry Players

Production Exhibition Distribution

• Small scale

• Low advertisement

• Insufficient lobbying

• Products in low demand

• No choice of distribution channel

• Relatively large scale

• Available Substitute Products

• Freedom of choice

• No possibility to integrate into production

• Low revenues due to piracy

• Available substitute products

• Freedom of choice

• Can dictate prices

• No possibility to integrate into production

Competitive Advantage,

Total Industry Revenue Distribution Level of

Bargaining Power

High

Low

Illustrative

(13)

Figure 12 : Overlapping Regulation

Note: 1) List only includes primary regulations, however there are also site specific local permits required by local authorities

Pesticide Act Telemedicine Act 1997

University and University Colleges Act 1971

Medicine Act National Anthem Act Sale of Food and Drugs Act Securities Industry Act 1983

Banking and Financial Institutions Act Trade Description Act 1972

Communication and Multimedia Act

FINAS Act 1963

Cinema

TV Radio Internet

Advertising Guidelines

Broadcasting Guidelines

Emerging Distribute Distribute

Package Publish

Create

Penal Code Internal Security Act

Indecent Advertisement Act

Digital Signatures Act 1997

Sedition Act 1948Consumer Protection Act 2000 Defamation Act 1952 Trade Marks Act 1976 Copyright Act 1987 Geneva Convention, Berne Convention, other treatise Made in Malaysia Guideline

Film (Censorship) Act 1952

Wireless

Film

&TV Radio &

RM P&M, B&L, IS

Various Content Specific Acts

Pay TV

Acts governing content during and after

“consumption”

Input Industries

Acts governing entire industry Foreign Direct Investment Guideline

Federal Constitution

Networked Content Value Chain

Output Industries

Computer Crimes Act

Printing Presses & Publications Act

Sale of Goods Act

(14)

Figure 13 : Government Bodies Involved in Regulating and Enforcing Networked Content Industry

Advisory JAKIM (Advisory)

Domestic Trade Consumer

Affairs Finance

Education Health

Agriculture Energy,

Com. and Multim.

Information Home Affairs

Ministry

Intellectual Property &

Consumer Affairs Division Administrati

on Division Private

Education Division Food Quality

Control Division &

Pharmac.

Division Pesticide

Control Division Commercial MCMC

Department FINAS

Lembaga Penapisan Filem(LPF) Governing

Body

Monitoring of false advertising Monitoring of copyright and

piracy Approving of

all gaming ads as defined in

Common Gaming Act,

1953 Approving of

all private education ads Approving of

all poison &

medicine related ads Approving of

all pesticide ads Approval for

advertising on RTM (KP#

Issuance) Licensing of

all TV adds (MIM) Censoring of

all adds Advertising

Enforcement Licensing of

film developers and producers Censoring of

all audiovisual / promotional

content Content

Licensing of wireless, ISP, TV and radio Licensing of

film distributors and exhibitors Access

Note: Content forum will be the body responsible for administering the content code once it is ratified

(15)

Figure 14 : Relative Broadband Subscription Fees (2003, US$ income adjusted)

Source: A.T. Kearney; Analysys

$0 $10 $20 $30 $40 $50 $60 $70 $80

Malaysia

South Korea

UK

France

Canada

Singapore

(16)

SMS Usage in Europe, Asia and US in 2002

29% 38%

81%

81% 62%

19%

Europe Asia US

Never used SMS Used SMS

• US telecoms regulations, which permitted different mobile operators to choose

different, incompatible technologies has led to complexities in formulating interconnect agreements for data

• In late 2002, the largest US mobile operators agreed to pass text messages between their networks, however the agreement is still only partly implemented.

• Since interconnect agreements were

formalised in September 2001, Malaysia has experienced a surge in SMS traffic

• In 2002, Malaysian telcos made preliminary agreements to share ‘shortcodes’ that allow users to access wireless data services from different providers on a single number

• Interconnect agreements are still outstanding in areas such as WiFi, MMS and 3G –

which could pose a threat to the uptake of these new services

Mobile Data Service Interconnect Challenges Low penetration

of SMS usage

Figure 15 : Potential Adverse Impact of Ineffective Open Standards and Interconnectivity

Source: A.T.. Kearney Mobinet Survey

(17)

Figure 16 : Ineffective Government Incentive Schemes

• In early 2000 the “One Family, One Computer” scheme enabled contributors to the EPF to

withdraw part of their savings for personal computer purchases, but was cancelled in 2002

Source: IDC

46 34 64 60

68

13

France UK

Canada Singapore

S.Korea Malaysia

PC Penetration Rate (% of households)

• Despite an investment of RM 5.1 billion over 5 years in ICT

initiatives, Malaysia’s internet subscription rate still lags benchmark countries

12

54 46 43

19 70

Malaysia Canada S.Korea UK Singapore France

Internet Subscription

(% of households)

(18)

Create Publish Package Distribute Total

1,967 million

Subscription TV (66%) Free-to-Air TV (34%)

170 million 1,257 million

398 million

143 million

Satellite (53%) Terrestrial (47%)

Free-to-Air Programming (66%) Advertising Production (19%) Subscription Programming (15%)

1

Television

Figure T.1 : Malaysian Television Industry Size in 2002 (RM)

Note: 1) ‘Create’ represents the talent pool required for television production and is typically 25% of production costs Source: Zenith 2002; ACNielsen; A.T. Kearney / ZOHL Group Analysis

(19)

Figure T.2 : Relative Networked Content Industry Size (Revenue % of Total NCI Revenue)

0%

25%

50%

75%

100%

Malaysia UK France Canada S.Korea Singapore

Wireless Internet Radio Television

Source: Zenith 2002; ACNielsen; A.T. Kearney / ZOHL Group Analysis

(20)

Television

Figure T.3 : Estimated Revenue Growth for Total Television Industry in Malaysia 1997 - 2002

643 663 770

1179

1493

1808

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

1997 1998 1999 2000 2001 2002

RTM AdEx RTM Government Funding

TV3 & NTV7 AdEx Astro AdEx & Fees

Revenue (RM millions)

CAGR (%) 97 - 02

Source: Zenith 2002; ACNielsen; A.T. Kearney / ZOHL Group Analysis

26% - Total

15% TV3 & NTV7 66% - Astro

10% - RTM

Growth due to launch of NTV7 in 1998 – however 0% CAGR

over 2000-2002

4% - Total FTA

(21)

Figure T.4 : Television Penetration of Households in 2002

Total Households Free-to-Air TV Households

5.3 million (100%)

4.3 million (82%)

Source: MCMC Statistical Bulletins (2002); ITU

Note: TV Households Figures assume 2% growth from 2001 ITU estimates

59%

31%

10%

Indian

Chinese

10%

63%

27%

Malay

(22)

Television

Figure T.5 : Subscription Television Penetration (% of households)

21

57

43 43

26

10

Malaysia Canada Singapore UK France S.Korea

(23)

Figure T.6 : Television Industry Size (Revenue % of GDP)

Source: Zenith Optimedia; IDC

Note: 1) These figures represent networked content related revenue only; excludes television content creation

0.52 0.50 0.45

0.59 0.95 0.87

UK France S.Korea Singapore Canada Malaysia

An addition 0.05% of GDP is an increase of 11% or RM 175 million

An addition 0.23% of GDP is an increase of 53% or RM 830 million Average of benchmark countries

RM 1.575 million

(24)

Television

Figure T.7 : Number of Local Programs in the Top Ten Television Programs

Source: A.T.Kearney Analysis

7

10 10 10

6

5

Malaysia France S.Korea UK Singapore Canada

(25)

Figure T.8 : Free-to-Air Television Advertising (RM millions)

0 100 200 300 400 500 600

1997 1998 1999 2000 2001 2002

Source: ACNielsen 2002

CAGR (%) 1%

-2%

Nominal

Real

(26)

Television

Figure T.9 : Benchmark of Television Advertising Spend (% GDP)

0.42

0.38

0.34 0.33

0.25

0.19

Singapore S.Korea UK Canada France Malaysia

+31%

RM 665 million

Up to an additional RM 540 million advertising revenue into the industry if benchmark is achieved

+81% (a)

Benchmark average

(27)

Figure T.10 : Approval Process for Advertising Content

1 – 14 days 3 days 3 - 7 days

1 - 14 days

Yes

MOI reviews Script

& storyboard &

Recommend Changes

Submit for MIM Cert.

To FINAS.

To include PPFIM #

Submit to LPF For Censor’s Cert. Fees Paid

by agency Produce

commer -cials

Agency submits commercial

to TV Broadcasters

for telecast Submit

offline to MOI Approval

With KP

#

Ad Agency Modifies

script &

story board

Appeal Appeal

Reedit

No

1 Week 1 Week

2 Weeks Submit offline

to related Ministry For specific product

If Change Required

No No

MOI

¹

FINAS LPF

Up to five weeks for approval Regulatory Body

Ad Agency submits scripts and

story board to the MOI in

languagesall

Approval Timeline

If Applicable

Note: 1) MOI approval is only required for advertisements screened on RTM, however typical industry practice indicates that most advertisers choose to seek MOI approval in order to assure other commercial TV operators that their content is valid Source: A.T. Kearney and ZOHL Group Analysis

(28)

Television

Figure T.11 : Local Content Quota

Television Investment in Local Content (RM millions)

Subscription TV is not required to broadcast or invest in local content

Free-to-Air

Television 633 350

997 80

1630 430

Subscription Television

Total Television

Total Revenue

55%

8%

26%

Regulations requires 60% local language to be broadcasted, rather than specifying the amount to be invested in local content (e.g. station can choose to show low cost programs or air re-runs)

Local Content Investment

Source: A.T. Kearney and ZOHL Group Analysis

Local content quota in benchmark countries for free-to-air television

where as high as 65%

Not uncommon for national regulators to impose a local content quota on the subscription television

providers

(29)

Figure T.12 : Index of Free-to-Air Television Operators Local Content Spend (estimated)

100

54

131

72 181

99

Total Free-to-Air Television Revenue

Current Local Content Spend

Potential Free-to-Air Television Revenue

Potential Local Content Spend

RM 350 million

Annual spend in local content could increase to RM 470 million

Annual spend on local content could increase to RM 700 million

Current Potential

Growth to Average International Benchmark

Growth to Nearest Benchmark

Source: A.T. Kearney / ZOHL Group Estimates

(30)

Moving Pictures

Figure M.1 : Total and Local Content Box Office Revenue (RM million)

88

69

110

140

18.4 6.5

18.3 8.6

1999 2000 2001 2002

Total

Local Content

Source: Zenith Optimedia; FINAS

(31)

Figure M.2 : Index of International and Malaysian Sources of Revenue for Movie Producers

0 25 50 75 100

International Malaysia

Box Office TV Video

Price Pressure on Video Royal ties

26 28 46

82 14

4

Potential 130%

revenue increase

Source: A.T. Kearney / ZOHL Group Estimates

(32)

Moving Pictures

Figure M.3 : Box Office Revenues and Local Producers Market Share in Malaysia (RM million)

18

5.0 122

4.3 3.4 5.3

Box Office Revenues Local Production Houses Others

Metrowealth

Tayangan

Skop Foreign

Content

Local Content

Source: FINAS; ZOHL Group Analysis

(33)

Figure M.4 : Cinema Admission Prices (US$ income adjusted)

4.7 4.4 6.1 5.5

9.7

5.2

Canada Singapore

France UK

S.Korea Malaysia

Source: Zenith Optimedia; Cannes.Market; Screen Digest

(34)

Moving Pictures

Figure M.5 : Annual Admissions Per Capita

1.9 2.6

3.3 3.14 3.93

0.5

S.Korea UK

France Singapore

Canada Malaysia

Source: Cannes Market; Screen Digest

(35)

Figure M.6 : Current Industry Size per Capita (US$ income adjusted)

3

14

16 17 18 19

Malaysia S.Korea Singapore France UK Canada

Need to increase 4-5

times to reach next benchmark

level

Source: Cannes Market

(36)

Moving Pictures

Figure M.7 : Approval Process for Film Content

Submit to LPF for Censor’s Certificate Producers

submit for FC approval to

shoot from FINAS Producer

obtain production License from

FINAS (onetime only)

Producer start the production

& submit completed product to LPF

Film producer request for Compulsory Screening Dates

from FINAS

Film is screened on the designated dates

allocated by FINAS

Appeal Edit and

resubmit

30 days 30 days

FINAS LPF FINAS

Up to Two months for approval Regulatory Body

Approval Timeline

Inconsistent content regulation increases the risk upfront of investing in content that will

not be screened

Content that is approved by LPF can still be censored or banned when the content is

broadcast on television

Content that is approved must comply with a simplistic ratings systems that categorises content

as general viewing or 18+

Source: A.T. Kearney and ZOHL Group Analysis

(37)

Figure A.1 : Malaysian Radio Industry Size in 2002 (RM)

Note: Networked content for audio only includes content broadcast on radio networks Source: Zenith 2002; ACNielsen; A.T. Kearney / ZOHL Group Analysis

221 million 23 million

197 million

0.8 million 0.2 million

Royalties to local artists

Royalties to record labels

Radio advertising / government funding

Terrestrial broadcasting

Create Publish Package Distribute Total

(38)

Audio/Radio

Figure A.2 : Radio Industry Advertising Revenue Growth 1997 - 2002

Source: ACNielsen 2002; Zenith Media

Advertising Revenue (RM millions)

0 20 40 60 80 100 120 140 160

1997 1998 1999 2000 2001 2002

19%

CAGR

97-02

(39)

Figure A.3 : Radio Industry Market shares and Advertising Premiums 2002

0 50 100 150 200 250

0 5 10 15 20 25 30

Average Rate per Advertisement

Total Advertising Revenue (RM millions)

Era FM My FM

redi 988 Mix FM hitz.fm

THR Light & Easy

RM Saluran Muzik

red 104.9 RM Saluran 5

RM Saluran 6 RM Saluran 4

RM Saluran 1

RM Kuala Lumpur

RM Selangor

Era FM

18%

hitz.fm 12%

Light & Easy 6%

Mix FM 13%

My FM 15%

red 104.9 2%

redi 998 14%

RM Saluran 8%

THR 9%

Other 3%

AMP Rediffusion RM THR

Source: ACNielsen 2002

Note: RM Saluran includes 7 radio station: RM Saluran 1, 4, 5, 6, Selangor, Kuala Lumpur

AMP

Radio Station Market share in 2002 Radio Station Advertising Premiums in 2002

(40)

Audio/Radio

Figure A.4 : Radio Penetration Rates in Malaysia 2002

Population Living in Households / +15 Years Age

Radio Coverage 11.4 million

(100%)

10.3 million (90%)

Source: ACNielsen 2002; Malaysian Department of Statistics

Indian Chinese Malay

Total Households Radio Households 5.3 million

(100%)

4.2 million (79%)

63%

27%

10%

11%

31%

58%

Radio Penetration of Households in 2002 Radio Coverage of Consumers in 2002

(41)

Figure A.5 : Malaysian Local Content as Percentage of Total Music Industry 1998 – 2002

24

15 16 16

18

0 5 10 15 20 25 30

1998 1999 2000 2001 2002

Local content market s h are ( % )

Source: International Federation of the Phonetic Industry

(42)

Audio/Radio

Figure A.6 : Malaysian Local Content Compared to Other Countries 2002

Source: International Federation of the Phonetic Industry

18

63

51 51

21 18

Malaysia S.Korea France UK Singapore Canada

18

77

53

48 47

42

Malaysia Thailand Indonesia Hong Kong China Philippines

Local Audio Content Market Share of Benchmark Countries 2002

Local Audio Content Market Share of Regional Countries

2002

(43)

Figure I.1 : Malaysian Interactive Industry Size in 2002 (RM)

Source: Gartner; A.T. Kearney estimates

541 million 67 million

450 million

21 million 3 million

ISP access revenue

ISP PSTN Charges (90%) Audio-text (10%)

Audio-text (55%)Internet Content (45%)

Create Publish Package Distribute Total

(44)

Interactive

Figure I.2 : Internet Penetration (% of households)

12

54

46 43

19 70

Malaysia Canada S.Korea UK Singapore France

Source: IDC;

(45)

Figure I.3 : Affordability and Accessibility of Broadband in Malaysia

Malaysia has the highest average ADSL monthly subscription fees

(2003, US$, income adjusted)

0 10 20 30 40 50

1999 2000 2001 2002 2003 2004 2005 Malaysia is behind in broadband roll-out

(% of homes connected)

S. Korea

Australia

Malaysia Canada

Source: IDC; A.T. Kearney; Analysys

$0 $10 $20 $30 $40 $50 $60 $70 $80

Malaysia

South Korea

UK

France

Canada

Singapore

(46)

Interactive

Figure I.4 : Cost of a basic PC (US$, PPP adjusted)

1,583

1,452

1,204 1,185

990

694

Malaysia France UK Canada S.Korea Singapore

Note: 1) Based on price comparison for Dell 4600

(47)

Figure I.5 : PC Penetration Rate (% of households)

34 46

60 64

68

13

France UK

Canada Singapore

S.Korea Malaysia

Source: ACNielsen

(48)

Interactive

Figure I.6 : Internet Broadband Subscribers 2002 Q3 – 2003 Q1

1%

3%

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

2002 Q3 2002 Q4 2003 Q1

Penetration rates of households

Source: MCMC Statistical Bulletins (2002)

Su bs cribers

(49)

Figure I.7 : Internet Access Market Shares in 2002

Observations

• 98% of the PSTN usage is billed per minute and provided by Telekom Malaysia

• Celcom Net is now owned by Telekom Malaysia

Malaysian Internet Access Market Shares 2002

TM Net 55.2%

Jaring 26.3%

Time Net 15.6%

Other 0.9%

Celcom Net 2.0%

Source: MCMC Statistical Bulletins (2002)

(50)

Interactive

Figure I.8 : Maturity of Government Online Services in 2002

22%

60% 59%

44%

39%

Malaysia Canada Singapore UK France

Source: Realising the Vision, Accenture, 2002

(51)

Figure W.1 : Cellular Subscriber Growth in Malaysia 1997 – 2008

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cellular Phone Su bs cri bers (Thou sand s)

Forecast

Source: MCMC Statistical Bulletins (2002); A.T. Kearney Analysis

(52)

Wireless

Figure W.2 : Revenue of the overall wireless industry (US$ billion)

0 1 2 3 4

2001 2002 2003 2004 2005 2006

Source: Ovum

(53)

Figure W.3 : Malaysian Wireless Services Industry Size in 2002 (RM)

Content Access Total

50 million

Wireless content providers such as audio-text providers

40 million

10 million

Mainly premium SMS services

Source: Industry interviews

(54)

Wireless

Figure W.4 : Usage of wireless data services around the world (% of users who have used the service)

11

28

3 10

77

27

38

5 3

21

6 4

Malaysia Europe North America Japan

Email News Travel Banking

Still in a testing state

Source: A.T. Kearney Mobinet Survey