Mobile Industry Ready to Explore New Advertising Models

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Survey of mobile industry executives shows advertising and speed-to-market of new data services top-of-mind at CTIA Wireless 2007.

The most important word here is 'relevant,'

According to a LogicaCMG Telecoms survey of mobile industry leaders, the buzz at CTIA 2007 is around mobile advertising and speed-to-deployment of new mobile services. LogicaCMG recently announced the sale of its Telecoms Products business to a consortium of private equity buyers, subject to employee consultation and regulatory approval. Once the transaction closes the Telecoms Products business will trade under the new brand, Acision (http://www.acision.com).

Identifying and enabling appropriate mobile advertising mechanisms was the talk of the show - 41 per cent of the attendees polled ranked mobile advertising as the biggest trend they are seeing at the show. While opinions varied dramatically on how quickly consumers will adopt any kind of advertising model, the benefits to both consumers and operators are clear, according to the respondents. The interest in mobile advertising was surprising to many attendees - 22 per cent ranked this increased interest in advertising models as the biggest surprise at the show.

"The most important word here is 'relevant,'" said Wayne Irwin, president, North America, LogicaCMG Telecoms. "The mobile industry is approaching advertising very cautiously, and is watching consumer adoption very closely to ensure success. Done well, if it's relevant and targeted, mobile advertising can help drive down costs to the consumer while helping grow revenues for the mobile operator. The two biggest enablers of this are near-real-time customer intelligence management systems and more flexible charging and bundling capabilities, two areas where LogicaCMG excels."

Speed and flexibility in deploying, marketing and bundling new mobile services also ranked high - 28 per cent of attendees polled were exploring ways to speed the deployment of new mobile services and 25 per cent were looking for ways to more creatively bundle and market these new services to mobile customers.

Near-real-time access to customer behavior - an important aspect of any successful mobile advertising campaign - was one of the hurdles to faster revenue growth, according to the survey. Being able to respond quickly to consumer demand and make highly targeted appropriate offers is critical to any mobile advertising model.

LogicaCMG's Customer Intelligence Management capability helps service providers create opportunities and sustain growth through personalized, one-to-one interaction with their customers. It enables the process of finding, segmenting, tracing, maintaining and, therefore, influencing the behavior of millions of users over multiple communication channels.

The company's new Advanced Rating service - part of its Intelligent Charging offering - introduces sophisticated new bundling and pricing options to operators' data plans, including a highly scalable version of the popular 'friends and family' billing model. Advanced Rating was announced at CTIA Wireless 2007.

About the Survey
In a non-scientific poll, LogicaCMG Telecoms surveyed 93 telecommunications professionals - including both service providers and operators - on the CTIA Wireless 2007 show floor.

About LogicaCMG
LogicaCMG is a major international force in IT and business services. It employs around 40,000 people across 41 countries. LogicaCMG's focus is on enabling its customers to build and maintain leadership positions using LogicaCMG's deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms and media, financial services, energy and utilities, industry, distribution and transport and the public sector. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG) and traded on the Xternal List of the Nordic Exchange in Stockholm. More information is available at http://www.logicacmg.com/telecoms.

Press contacts

Kevin Walters
Marketing Executive, LogicaCMG Telecoms, North America
Tel: +1 972 246 5404
Email: kevin.walters(at)logicacmg.com

Todd Van Hoosear
Topaz Partners
Tel: + 1 781-404-2409
Email: logicacmg(at)topazpartners.com

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