Acision launches next edition of Mobile Value-Added Service (VAS) Monitor demonstrating a 41.5% increase in Brazilian VAS revenues from Q1 2009

MAVAM'S fourth edition highlights the potential of mobile social networking

Sao Paulo, Brazil: June 7, 2010

Acision, a world leader in mobile data, has today announced the general release of the fourth edition of MAVAM - Acision's Mobile VAS Monitor, which analyzes trends across the Brazilian value-added mobile services market and, in this edition, focuses on the adoption of mobile social networking in the region. The latest report, which is produced in conjunction with research house Teleco and analyzes data related to the first quarter of 2010, reveals that Mobile VAS revenues in Brazil have reached $2.4 billion, an amount that represents a 41.5 percent increase in VAS revenues compared to the same period in 2009. The data also highlights that value-added services represent 14.8 percent of Brazilian operator's gross revenues - an increase from 11.5 per cent from the first quarter of 2009.

"To continue increasing VAS revenues, operators do not necessarily need to make significant investments in infrastructure," said Rafael Steinhauser, Acision's president for Latin America. "A key way to expand VAS revenues is to stimulate the usage of services such as messaging, predominantly SMS, through packages and promotions which are aimed at reducing the average cost. MAVAM' latest edition reveals that SMS continues to be the top Mobile VAS in Brazil with 79 percent of research respondents claiming to have used the service in the first quarter of 2010. The average recoded rate of sent text messages went from 23 SMS per mobile phone in February 2010 to 26 text messages per mobile phone in April 2010. As for the average unitary cost of an SMS, it fell in that same period, from $0.24 to $0.13.

The incentive to use mobile phones for Internet access and, specifically, to access social networking sites is another way of increasing Mobile VAS revenues. As highlighted in this edition, social networks such as Facebook, Orkut, LinkedIn and Twitter have become a favorite among Brazilians, placing the country as a world leader in terms of adoption. MAVAM reveals that 69 percent of interviewees claimed to access social networking sites on a regular basis, mainly to communicate with friends. However, out of that total, only three percent access networks through mobile phones - a percentage that increases to 13 percent among users of Smartphones.

"The growth of social networking is very impressive," adds Steinhauser. "People are increasingly using channels such as Orkut, Facebook, YouTube and Twitter to communicate as well as exchange photos and videos with friends. The trend can be emulated via mobile phones if the operators provide easy, affordable access to mobile broadband."


MAVAM - Fourth edition's results

The research represented in the latest edition of MAVAM was conducted during April 2010, questioning mobile phone users in the cities of Rio de Janeiro, Porto Alegre and Sao Paulo. These three cities represent 26 percent of mobile phone users in Brazil. The research's results indicate that, in the second half of 2010, the country should exceed the barrier of 100 mobile phones per 100 inhabitants.
The most used VAS in the last 3 months: SMS, music, MMS and Internet access

SMS: SMS, or text messaging, is still the most popular messaging service in Brazil, with an average of 79 percent of users. There has also been an increase in users in the age group from 50 to 65. The average rate of sent SMS has also grown, if compared to the last MAVAM report, going from 23 to 26 SMS per mobile phone per month. That figure is higher than the previously estimated average in Brazil in 2009 - 12 SMS per mobile phone per month - however, much lower than the one verified in other countries such as the United States, which recorded an average of 487 SMS per mobile phone per month in the second half of 2009. The price of SMS and MMS is still issue the largest inhibitor for the services wider usage. MAVAM's fourth edition has shown stability in MMS usage, which has stayed at 7 percent, with the average of 1.5 MMS sent per mobile phone per month.

Internet in Mobile Phones: MAVAM's has revealed that Smartphone users are the most likely to use handsets for Internet access (14 percent), against four percent for other devices. According to MAVAM, out of the total number of mobile phones users, only three percent sent or received e-mails, seven percent have used instant message services (up from three percent in February 2010) and three percent have a data plan modem (mobile broadband). Among those who have subscribed to such a plan, the majority use location, maps or GPS services.

Entertainment: The research has confirmed the popularity of music and other entertainment services among mobile phone users. Ringtones and music have the highest quantity of downloads by users, and for which they pay the highest average unitary price. According to MAVAM, 59 percent of mobile phone users have listened to music on their mobile device in the last three months at an average of 3.6 times per week. After music, the most accessed mobile entertainment services are games (40 percent), videos (five percent) and open TV (two percent).

Mobile Payments: This edition of MAVAM demonstrates that mobile payment and mobile banking services have kept their growth pace, mainly in Sao Paulo. Across the three surveyed cities, seven percent of interviewees claimed to have conducted banking through mobile phones and five percent have made payments through their device.

To access the fourth edition of MAVAM, please visit www.acision.com, or request the full study to Pimenta Comunicação.

NOTES TO EDITORS

About Acision
As a world leader in mobile data, Acision aims to power innovation and profitable growth in mobile data services. As the pioneer of mobile messaging, Acision's real time mobile data solutions support its customers worldwide to drive new revenues with innovative services while controlling, optimizing and monetizing data traffic. For more information, visit Acision at www.acision.com

About Topaz Partners

Topaz Partners
18 Commerce Way
Woburn, MA
01801

Contacts