Ringback Tone Current Market Overview

Back in 2002 was the first introduction of customized ringback tones, made by the South Korean operator SK Telecom with its 'Color Ring' ringback tones service. SK Telecom generated over €80 million (US$100 million) in Q2 2002 and has reached 54% of SK Telecom's 18 million subscribers in penetration.

In spite of the rapid growth and high penetration of ringback tones in South Korea, western operators decided to take an approach of “we will wait and see” towards the new app on the block. Having a lesson learnt about different markets behaving differently through the i-mode experience, western operators realized that not every "killer app" in Asia would necessarily stick in the USA and European markets.

Despite of the cold welcoming, today Ringback Tone is becoming one of the biggest mobile entertainment revenue generators. In some operators Ringback tones are overtaking ringtones sales. In Europe and North America there’s a 60%-80% of Ringback Tone potential end-user-coverage, 80%-90% wireless operators are expected to launch the service by end 2006, and at least one operator in each Western European countries and almost all in North America has already launched the service. Also analysts forecast a substantial RBT market growth in the upcoming years.

At present, most of the operators are facing various challenges in the way to increase Ringback Tone service penetration, create on going usage of content, increase the awareness and in general turn Ringback tones into a more successful service. Understanding operators' needs and challenges Comverse Fun Dial (Comverse’s Ringback Tone brand) team came up with the idea to hold a global marketing seminar. The Fun Dial Marketing Seminar was the first ever industry conference that was dedicated to the Ringback tone market. The Fun Dial Seminar brought together leading industry experts, Fun Dial customers and operators with Ringback Tone service from other vendors, as well as content providers and managed services providers to facilitate an environment of knowledge sharing and to create an open forum to discuss burning issues related to Ringback Tones.

At the opening seat, Richard Abdalian, VP Developing Markets, Universal Music Group International Digital presented the role of content in the success of mobile music. “Music and content are ever seeking creative new distribution channels. The wide adoption of cellular by a wider range of demographics, younger segments, music savvy’s etc’ has opened new avenues of revenue for both cellular companies as well as the music industry” He Said.

• How to turn the Ringback Tone into a successful service generating significant revenue?
• Two case studies of successful Ringback Tone marketing strategies led by mobile operators
• The Comverse Fun Dial's vision on the future of the Ringback Tones service
• These and more are among the many issues that will be reviewed here, at Xellular Identity, in a series of posts during November. I welcome you to tune in on Tuesday for the first case study!