Openwave Unveils New Edition of Mobile Insights Report Uncovering Mobile Internet Trends and Opportunities in Emerging Markets

Openwave® Mobile Analytics Suggests New Revenue Opportunities for Operators; Mobile World Congress 2010

BARCELONA, Spain – Openwave Systems Inc. (Nasdaq:OPWV), a global software innovator delivering context-aware mediation and messaging solutions, published a Winter 2010 report highlighting key mobile internet usage trends in Africa. The findings are the result of Openwave® Analytics collecting and interpreting traffic and usage behavior data from a tier-one mobile operator in South Africa. There are over 400 million mobile subscribers in Africa, compared with approximately 300 million in North America. Key mobile internet trends, as well as recommendations for new revenue generating opportunities, are highlighted in the 2010 winter report and below.

Top Categories

Social Networks

Social networks factored most prominently in the findings for the South African operator with social networks being the leading internet category, accounting for 27 percent of total hits that were generated by only five percent of subscribers. In South Africa, there are a large number of social networks that are specifically designed for feature phones. Considering that there are a low percentage of subscribers generating the social networking hits, this underlies the popularity of social networks and the potential for growth.

Operator Portal

The portal for this South African operator had a high traffic rate in terms of percentages of hits and numbers of unique visitors. Operators have the potential to generate increasing revenues by selling ad space, subscriber profiles and ad delivery channels to advertisers. Operators could benefit from promoting a social networking and search partner on its portal to drive higher volume traffic and to raise the value of its inventory.

Mobile Search

Mobile search is the third most popular destination, but it sees a greater percentage of data volume than the operator’s portal. According to Openwave Analytics, Google leads the pack by a wide margin, but another local option, abphone.com, has garnered almost a third as much data traffic as Google by focusing on a specific search area: entertainment and multimedia. This trend bodes well for global and regional search engines’ search-based ad revenue, and could help the operator forge close partnerships with the multiple search engines through on-deck partnerships.

Instant Messaging

Nearly six percent of South African subscribers use IM services. The South African market is fairly deregulated, allowing a host of local, innovative IM providers to thrive, without any significant risk to messaging revenues. Operators in Africa have an opportunity to promote these types of IM services as on-deck partners and, for a small premium, enable location and presence through operator-owned API’s.

Top Sites

Facebook

Facebook is the most popular mobile internet site in South Africa, and the social networking giant has been successful in emerging markets in large part because the site displays easily on standard feature phones, of which there are a significant number in South Africa. In addition to this operator’s subscribers regularly visiting Facebook, they also upload pictures and videos to their sites, and use Facebook for instant messaging and notifications because of how costly it is for prepaid subscribers (90%+ of our operator’s subscriber base) to send MMS and SMS messages.

An opportunity for African operators would be to more tightly integrate SMS/MMS with Facebook to make it simpler to upload content and updates. Operators could also offer subscription services for advertisers and marketing agencies to access anonymized, segmented customer data and help them launch viral campaigns.

MXit

The South African operator’s data suggests that locally developed application, MXit, had the highest number of unique users, higher than internet giants Facebook and Google. Operators could promote MXit and other local application options as on-deck partners, or as a pre-installed application on the handset, in return for a share of the revenue, promotion of banner ads, or even content downloads. This could bolster operator revenues while ensuring that SMS revenues don’t get eroded as MXit continues to grow.

“The ability to make accurate assessments of subscriber behavior in batch mode as well as real-time and to act upon those findings is crucial for operators to be competitive,” said John Giere, senior vice president, products and marketing, Openwave. “Openwave Analytics is a comprehensive solution that addresses marketer’s needs by monitoring data network traffic, user behavior, emerging trends and uncovering subscriber behavior insights. We believe that insights can help improve mobile operator’s understanding of their subscribers and facilitate new revenue opportunities for mobile ecosystem players.”

Openwave Analytics is a feature-rich, predictive solution fueled by real-time analytics that provides early identification of mobile data trends that enable operators to make timely decisions to avoid bandwidth problems while targeting business driving opportunities. Openwave Analytics mediates among all different ecosystem elements, enhancing every mode of IP traffic including mobile internet, messaging, video and social networking. The result provides operators with a 360-degree view of their network, devices and services, and enables operators to proactively optimize network resources, quickly launch smart mobile services, and provide a contextually relevant user experience.

About Openwave

Openwave Systems Inc. (Nasdaq:OPWV) is a global software innovator delivering context-aware mediation and messaging solutions that enable communication service providers and the broader ecosystem to create and deliver smarter services.

Building on its mobile data heritage, Openwave mobilizes the Internet with predictive solutions fueled by real-time analytics that mediate among all different ecosystem elements, enhancing every mode of IP traffic. The result can provide customers with a 360-degree view of their network, devices and services, and enables them to proactively optimize network resources, quickly launch smart mobile services, and provide a contextually relevant user experience.

Openwave is a global company with a blue chip customer base spanning North America, Latin America, Australia, New Zealand, Asia, Africa, Europe, and the Middle East. Openwave is headquartered in Redwood City, California. For more information please visit www.openwave.com.