You are on page 1of 40


Color Ring Back Tone -- A Gold Mine in Mobile Market

HUAWEI Confidential



A Proven Gold Mine in Mobile Market

RBT Service Operation Experiences Technical Solution HUAWEI Achievement

HUAWEI Confidential

Page 2

What s RBT (Ring Back Tone) Service?


Caller hear song/music/melody before callee picking up Communication enrich people s life, RBT enrich people s communication

HUAWEI Confidential

Page 3

RBT was deployed world wide

Europe North America Verizon Wireless T-Mobile US AllTel Sprint Nextel Cingular Wireless Bell Mobility Vodafone Telefornica Orange 3 Sweden T-Mobile 3 UK SFR France TMN TIM Asia China Mobile China Unicom SKT NTT DoCoMo KDDI AIS Telkomsel Global Telecom FarEast Tone Hutchinson Hutch Thailand TATA Reliance Aktel Bangladesh Millicom Laos Mobilink Pakistan ViBo Taiwan AirTel India Telstra Oceania

CIS, M Asia MTS Megafone Vimpelcom

AM/Telcel Mexico Telefonica Moviles Latin America

MTN Nigeria Orange Cameroon Maroc Telecom Mobinil Egypt MTN Swaziland Emtel Mauritius Orange Cote d'Ivoire Africa

Turkcell STC Syriatel MTC Kuwait Wataniya Maldives Mobily Umniah Yemen Tel Middle East

HUAWEI Confidential

Page 4

Threefold Increase - IDC WW RBT Market Forecast

WW RBT Subscribers 2006-2010

WW RBT Service Revenue 2006-2010

Total Market CAGR 31.5%
Japan - CAGR 18.5% Asia-Pacific - CAGR 23.8% MEA - CAGR 46.1% USD $M

Total Market CAGR 31.3%

800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

12000 10000 8000 6000

Japan - CAGR 14.2% Asia-Pacific - CAGR 21.8% MEA - CAGR 47.7% Europe - CAGR 46.1%

Europe - CAGR 46.7%

Latin America - CAGR 93.0%

Latin America - CAGR 95.3% North America - CA GR 47.5%

North America - CAGR 52.9%











Digital Music global revenue reaches $32.2B at 2010 in Gartner!s forecast. And global RBT revenue reaches $10.2B in 2010 in IDC!s forecast. More than 30% DM!S revenue comes from RBT. IDC Forecasts 677 million CRBT Users WW at YE2010 RBT, a gold mine which can bring you immense profit and enhance your brand.

l l l

HUAWEI Confidential

Page 5

Entry to Digital Music

My My Music Music Video Video My My Full-track Full-track My My Ring Ring Tone Tone My My RBT RBT
Personal RBT Library

Personal Music Library

RBT Platform

Digital Music Platform

Mobile Phone will be the most popular music player soon.

HUAWEI Confidential Page 6

Successful RBT story in Asia ! CMCC


China Mobile (1H 2006):

128.4 million RBT subscribers 46.8% penetration rate

China Mobile RBT Development

RBT Subscribers RBT Revenue RBT Penetration
25.88% 13.3% 46.8%

430 million US$ total RBT revenue in 2005. !New telecom services are crucial to the development of our company. The subscriber"s ARPU are decreasing. All operators throughout the world are trying to maintain and even increase ARPU by deploying new mobile data services. The RBT service we deployed is actually not a huge investment, but contributes 8 RMB (1 USD) to our ARPU.# Mr. Wang Jianzhou, CEO of China Mobile


e l i b o M a in h C n i S M S r e t f a S A rV e l l i k d n 2 RB T i s t h e
9.2% 128.4M 90.1M 430M$ 330M$ 14.6M 16.3M$ 2004 1H 27.2M 106.3M$ 2004 YE 57.92M 172.5M$ 2005 1H 2005 YE 2006 1H

HUAWEI Confidential

Page 7

Successful RBT story in Asia ! TTSL, India

Reliance: The largest CDMA operator and largest PTO in India

Lucent/Alcatel switch based solution Available for both postpaid and prepaid subscribers 1 M subscribers capacity in the 1st phase and 2M for 2nd phase Launched on 31th May 2006 Activate RBT subscribers reach 1.2M by Dec. 2006

HUAWEI Confidential

Page 8

Successful RBT story in Middle East ! Syria Tel

16000 14000 12000 10000 8000 6000 4000 2000 0
Day 1 Day 2 Day 3

Subscriber Increase

l l l l

20% penetration in the first 5 months,

Interconnecting with Siemens switch based solution Available for both prepaid and postpaid subscribers Users! Self-Management Access: IVR, WEB
HUAWEI Confidential Page 9

Successful RBT story in Middle East ! STC, Saudi

l l l l l

The biggest mobile operator in Saudi Arabia RBT system capacity is 3M Available for both post paid and prepaid subscribers Launched service on 24th Mar. 2007 RBT active subscribers reach 100K with 20 days

HUAWEI Confidential

Page 10

Successful RBT story in Middle Ease ! Umniah, Jordan


1st operator to launch RBT in Jordan 71K activate subscribers by the end of 2006 Name RBT service as Aghanilak

IN based solution Available for both prepaid and postpaid subscribers Users Self-Management Access: IVR, WEB

HUAWEI Confidential

Page 11

Successful RBT story in Africa ! Emtel, Mauritius

l l l l l l

1st operator to launch the RBT service in Mauritius Penetration rate reached 15% in TWO weeks Interconnecting with Siemens switch based solution Available for both prepaid and postpaid subscribers Users! Self-Management Access: IVR, WEB, SMS
86% users subscribe to the service via SMS
HUAWEI Confidential Page 12

Successful RBT story in Africa

Orange Cameroon

l l l l

The first operator in Cameroon launched RBT Service RBT system capacity is 50000 Launched service on 16th Mar. 2007 RBT active subscribers grows up to 49000 with 4 weeks.

HUAWEI Confidential

Page 13

Successful RBT story in Africa

Madacom, Madagascar

The first operator in Madagascar launched RBT Service

l l l

RBT system capacity is 50000 Launched service in Sep. 2006 RBT active subscribers grows up to 20000 by Dec. 2006.

HUAWEI Confidential

Page 14

CRBT Service Performance Stars

Vietnam Thailand Ghana India Thailand India Colombia Saudi Arabia Pakistan Russia Turkey


RBT Subs (M)

9.01 6.03 0.9 5.8 1.6 2.45 0.64 3.77 2.2 3.6 3.8

Total Subs (M)

24 28 6.0 52 15 21 5 19 20 43 36

37.5% 21.5% 15.0% 10.5% 9.5% 11.7% 12.9% 19.8% 11.1% 8.4% 10.6%

HUAWEI Confidential

Page 15



Proven Gold Mine in Mobile Market

RBT Service Operation Experiences Technical Solution HUAWEI Achievement

HUAWEI Confidential

Page 16

Challenges of RBT service


Consumer perception
An altruistic service, self-experience is not good l Non-functional service, dispensable

Network support
Which technical solution? l How to integrate with other subsystem?

Wider chasm of RBT product

Penetration 30% Trial& Initial period Growing period 10% Mature period Lifeline Time

How to maintain RBT platform?


l l


Quality l Type

Service tariff
Tariff structure l How much for each part?
l l

How to share content revenue with CP/SP

HUAWEI Confidential

Page 17

Open Sesame - Four Golden Keys for RBT

SIMPLE Experience $ Simple, Interesting Propagandize RBT Concept

CROSS CHASM Attract Subscriber More subscriber more revenue

PROFIT Increase RBT ARPU high RBT changing rate, low churn rate

WIRELESS MUSIC Expand RBT to wireless music, develop related content service

Trial phase

Initial phase

Growing phase

Mature phase

HUAWEI Confidential

Page 18

Four Golden Keys ! manage complexity

" Value chain establishment " CP/SP cultivation " CP/SP management

" Content Acquisition " Customer requirement analysis


" Brand value " Brand Promotion



" Easy usage " Friendly UI " Multiple access ways

" Collect & analyze customers appeals " Help customers resolve problems
Customer care



" Tariff structure " Pricing principle

" User Experience " Discount & Bonus " Events

" Type of media " Content of Ads

HUAWEI Confidential

Page 19

RBT is fashion - AIS advertisement TVC (2004)

Key Message:

It s cool to let anyone calling you hear the song or special message, instead of traditional one. The !MORE" Songs you change, The !MORE" inin-trend you are..

HUAWEI Confidential

Page 20

RBT is common - AIS advertisement TVC (2005)

Key Message

Waiting is more fun if you use Calling Melody Calling Melody are for everyone.

HUAWEI Confidential

Page 21

Content" From Quantity to Precision

Few high quality is enough

Enrich content for young generation

Enrich content for common customer & dig individual requirements

Prioritize pop music and natural sounds Few quantity Simple to use: Basic content browsing & setting features

l l

Increase quantity. Focus on Pop music and interesting human voice Content package: music box

Research content requirement: Special RBT for Special You Content push: Based on consumer behavior analysis RBT Workshop to encourage DIY

Trial phase

Initial phase

Growing phase

HUAWEI Confidential

Page 22

Tariff structure of RBT service

Typical RBT tariff structure
Content Fee

RBT revenue breakdown of CMCC


Browsing Fee

18% 4%

Monthly Fee

Monthly Subscription Contents IVR Airtime

Most revenue comes from Monthly fee, while content fee has minimum impact on total revenue l IVR fee for content browsing is considerable

Principle: l Share most content revenue with SP/CP. (CMCC:SP/CP = 15%:85%) l Keep the mainstream (monthly fee & IVR fee) of revenue.
HUAWEI Confidential Page 23

RBT service brand is helpful

A service brand including a logo and a name.
China Mobile Name & Logo: Color Ring China Mobile named & registered RBT service as !Color Ring" in 2003. This forced the competitor # China Unicom name his RBT service as !Cool Ring". Now !Color Ring" became common name of RBT service, only a few people knew Unicom s !Cool Ring"

l l

A sound & impressive brand helps leading operator to screen follower An elegant brand helps to materialize this intangible service and improve customers perceive

Service brand promotes operator s brand at the same time

HUAWEI Confidential

Page 24



Proven Gold Mine in Mobile Market

RBT Service Operation Experiences Technical Solution HUAWEI Achievement

HUAWEI Confidential

Page 25

RBT call flow

MSC based solution

HLR identifies the called party as CRBT subscriber and transfers the CRBT mark (SS_CODE) to MSC


IRAQ O_MSC routes the call to T_MSC as usual

Call established

Phone picked up


O_MSC initiates another call leg to CRBT platform who will play the CRBT

CRBT heard O_MSC by the caller disconnect with CRBT


HUAWEI Confidential

Page 26

RBT Platform Architecture

Switching Network
IP (intelligent peripheral )

RBT Call Control

User Profile

Content File

Service management and operation platform

HUAWEI Confidential Page 27

Logical Function Diagram

MSC Internet SMSC WAP GW WAP App USSD SERVER USSD App 3rd party NE 3rd Party App Provided by 3rd party IVR App Web App SMS App

Open API based on XML SOAP



Self-management for end-user

Service management for Corp. administrator

SST TCIP/IP Charging module CDR

Web Interface

Service management for customer care Service and resource management for system administrator content management for content provider SNMP User Profile Content library

Provisioning module Network management for network administrator

Mediation/ CRM


HUAWEI Confidential

Page 28

RBT system network structure








IP Portal

User Profile

Content library





HUAWEI Confidential

Page 29

RBT service features

u u u u u u u u

Multiple end user accesses: WEB/IVR/SMS System/CP/customer care WEB portal Setting RBT based on date/time/week/duration Setting RBT based on caller/caller group Mixture RBT RBT copy RBT content/service present ##

HUAWEI Confidential

Page 30



Proven Gold Mine in Mobile Market

RBT Service Operation Experiences Technical Solution HUAWEI Achievement

HUAWEI Confidential

Page 31

History of Huawei RBT


First domestic RBT system launched in China Mobile Shanghai in May, 2003 Five months later, first overseas RBT system launched in AIS, Thailand In less than three years#

HUAWEI Confidential

Page 32

Main Vendors in the market

HUAWEI Confidential

Page 33

Worldwide Application

Russia Ukraine Romania Moldova Mongolia Bulgaria Portugal Uzbekistan Turkey Syria Tajikistan Morocco China Jordan Kuweit Afghanistan Algeria Libia Iran Pakistan Bhutan Mali Bangladesh Saudi Arabia Hong Kong Senegal Sudan Vietnam Benin India Gambia Togo Yemen Laos Philippines Liberia Thailand Ghana Nigeria Cote d'Ivoire Sri Lanka Cambodia CameroonUganda Equatorial Indonesia Guinea Congo Tanzania Madagascar Mauritius



Colombia Ecuador Peru Brazil Paraguay

Botswana Swaziland

" Huawei RBT is serving for 1/2 top 10 operators and 1/3 top 50 operators. " Huawei has provided RBT platform for more than 200 operators over 70 countries since 2003. " More than 421 million users and the whole capacity exceeds 529 million. " 5 years experience help you achieve success of RBT marketing just in 1 step.
HUAWEI Confidential Page 34

Key customers for RBT

HUAWEI Confidential

Page 35

Easy Interconnection with Other Vendors

China Mobile China Unicom Mauritius MT Vietnam Vietel Madagascar Orange Guinea SOTELGUI Kampuchea CAMGSM Uganda Telecom Morocco Telecom China CMCC China Telecom Russia Rostelecom Russia MTS Indonesia ExcelCOM Kenya Safaricom Madagascar MADACOM Syria Syriatel


China Mobile China Unicom Bengal TMIB Russia MTS Singapore Singtel Saudi Arabia STC Nigeria Starcomm

China CMCC China Telecom Thailand AIS China Unicom Colombia Movistar Brazil OI British BT Ethiopia ETC


ortugal Optimus India TATA

India TTSL Thailand TRUE Philippine sun cellular Madagascar Orange Guinea SOTELGUI Kampuchea CAMGSM China Mobile China Unicom

Syria Syriatel

Thailand AIS China CMCC


Thailand AIS UAE ETISALAT China Mobile China Unicom Tanzania Mobitel

Indonesia ExcelCOM Kenya Sarfaricom Madagascar MADACOM

Thailand AIS China Mobile Colombia Movistar Chile Movistar

HUAWEI Confidential

Page 36

Rich experience for swap project

Operator China Mobile Beijing China Mobile Chongqin China Mobile Guangxi China Mobile Heilongjiang China Mobile Guangdong China Unicom Guangxi Etisalat, Suadi Turkcell, Turkey Original Vendor Wisepot (HK vendor) ITL (HK vendor) SHT (Chinese vendor) Qinghua (Chinese vendor) NEC Jingpeng (Chinese vendor) Ericsson ECT Swap Date 2003 2003 2004 2005 2006 Q2 2006 Q3 2007 Q1 2007 Q1 New vendor Huawei Huawei Huawei Huawei Huawei Huawei Huawei Huawei Swap Full swap Full swap Full swap Full swap Full swap Full swap Full swap Full swap

All these operators believes RBT will make a fortune for them and they finally found that selecting a right vendor is the key issue to make them going forward!

HUAWEI Confidential

Page 37

Benefits for Operator

Ensures continuous future roadmap evolvement and development Minimize risks with rich implementation experiences Share the business experience of many successful cases around globe

HUAWEI Confidential

Page 38

Normal RBT


RBT Evolution
Digital Music

Digital Media

HUAWEI Confidential

Page 39

Thank You