DIGI Telecommunications Sdn Bhd is aiming to capture at least 20% share of the country's growing mobile content market this year through its Content Provider Access (CPA) programme, launched yesterday for local and foreign content providers.
DiGi chief operating officer Tore Johnsen said the company was opening up to content providers its subscriber base of 1.8 million mobile phone users and its infrastructure under the CPA concept to boost the local mobile content industry.
Malaysia's mobile content market is estimated to be worth RM200mil this year and is expected to double to RM400mil in 2004.
We have 60 content providers who have signed up for the CPA programme and we expect more to join the programme later this year, Johnsen said after the opening of the inaugural CPA forum for about 150 content providers in Cyberjaya.
Most of the content providers who have signed up for the programme are in the business of mobile phone download of ring tones and logos, chat services as well as providing information on the entertainment and business sectors.
DiGi is the pioneer of the CPA concept. Johnsen said the company had invested several million ringgit in the CPA platform, which also includes a short messaging service (SMS) centre. More money would be poured into the development of the concept over the next few years, he added, but declined to give figures.
According to Johnsen, DiGi commands about one-fifth of the total number of mobile phone users in the country that the content users could reach, especially youths and the business community.
He estimated that 75% of DiGi's subscribers were active SMS users.
Revenue derived from SMS will continue to be substantial and we will see this trend sustaining in the years to come, he added.
Under the CPA programme, a content provider will be charged a one-off payment of RM2,000 and a monthly subscription of RM500 for using DiGi's multimedia infrastructure. Of the revenue derived from subscribers, 70% will go to the content provider and the balance 30% to DiGi.
On DiGi's strategy to widen its customer base this year, Johnsen said no effort would be spared to woo more subscribers, as it had an aggressive target to meet this year. However, he declined to reveal any figures.
We still see potential for growth in new customers this year as the mobile phone industry is still growing. We will capture the new phone users and increase our market share as there is still a lot of room for expansion in the new mobile phone users segment, he said.
Earlier, in his opening address to the content providers, Johnsen said the mobile entertainment and mobile information services would expand tremendously over the next few years.
He said that their skill in developing mobile information and entertainment services, combined with DiGi's subscriber base and infrastructure, offered a powerful and highly profitable proposition for mutual growth and expansion.
The CPA would provide an opportunity for content providers to use DiGi's subscriber base and still be able to concentrate on their core business of content creation, he stressed.
While the initial focus of the CPA is on premium SMS, its future development will include wireless application protocol, multimedia messaging service and location-based services.