MegaFon taps NeuStar for mobile IM

By Dan Butcher

January 7, 2009

MegaFon is Russia's third largest carrier

MegaFon, the first all-Russian carrier in GSM 900/1800 standard, has selected NeuStar to launch its new mobile instant messaging service.

Using NeuStar's Instant Messaging Service Center, MegaFon will launch its own-branded messenger service. The service lets MegaFon's 42 million-plus subscribers better manage their communications and recognize their contacts' current availability while letting subscribers interact with friends and family.

"In the Russian market, mobile has become a very interesting service for the type of demographic that's attracted by IM, primarily younger people ages 16 to 25, who are already used to using IM services on the PC," said Glen Murray, vice president of worldwide sales for NeuStar Next Generation Messaging, London.

"While it's still not at the level of Western Europe, PC penetration has increased in Russia, and IM on PCs is popular," he said. "MegaFon is taking advantage of that to give consumers IM chatting on their mobile phone to take it with them wherever they go."

MegaFon Messenger is already available on dozens of mobile handsets, with more to follow, and over time will be offered as a PC client as well.

Glen Murray is vice president of worldwide sales for NeuStar Next Generation Messaging

The service also may be interconnected to other mobile IM services across Russia using NeuStar's Interconnect Platform, or ICP.

"MegaFon has decided that mobile IM is a service that appeals to one of the key demographics in their consumer base," Mr. Murray said. "We provide the infrastructure for the service and the integration with their network."

Mobile IM has become a key service offering for carriers in the region.

All three of Russia's major carriers have now launched mobile IM services.

MegaFon plans for the service to be interconnected with Vimpelcom's Beeline and MTS' IM service.
Vimpelcom's Beeline IM service is enabled by NeuStar technology.

Subscribers using the service will have access to a MegaFon-branded IM client either already preloaded on their handset or downloadable from an online portal.

Consumers can also choose to chat with friends and other MegaFon subscribers in custom-made chat rooms.

Furthermore, the service enables full two-way continuity between SMS and mobile IM, allowing IM users to easily hold continuous conversations with contacts using traditional SMS messaging.

Mobile IM is emerging as a popular service with Russia's mobile consumers, especially those ages 16 to 25.

MegaFon Messenger will be promoted nationwide to all subscribers as a free service as a means to drive adoption.

Following summer 2009, activation of the service will remain free of charge.

Consumers will then have the option to either pay per message sent or to purchase an unlimited messaging bundle for a fixed price.

Mobile IM gives consumers access to their online contacts, helping them stay in touch and letting them control how they communicate through access to their buddies' real-time status updates.

MegaFon is betting that the mobile IM service that will enhance revenue.

"There are unique challenges in Russia getting access to clients' availability," Mr. Murray said. "Whereas other markets are primarily post-paid, with carriers offering subsidized handsets often preloaded with an IM client, in Russia they don't have that, consumers buy a prepaid SIM card from their operator of choice.

"There's a challenge getting the IM client preloaded on handsets, so we're taking advantage of built-in generic IM clients to get as broad a base as possible, as well as a downloadable client," he said.

There will not be mobile advertising on the IM platform initially, although it is on the roadmap.

"Not in the short-term, but obviously in the long-term operators like MegaFon are looking into options for mobile advertising," Mr. Murray said. "As the economics in Russia change it into a more consumer-oriented culture, mobile advertising will have good potential in the future."

The mobile IM app will be free for a period of time, then monetized by a monthly subscription fee.

"A lot of the advertising to promote the mobile IM service will be poster campaigns, which is the most common way to advertise in Russia," Mr. Murray said. "Initially the focus will be on Moscow, but they will eventually roll out in other big cities, mostly with poster-led marketing campaigns."

Comments on "MegaFon taps NeuStar for mobile IM"

1. Ivan Komarov says:

   January 15, 2009 at 1:55am

   Indeed, Jimm for ICQ, a free client which uses GPRS as a cheap channel is routinely used across operators. There is a future for messaging if it is cheaper than SMS and it is easier than Jimm.

2. kerry ritz says:

   January 11, 2009 at 9:55am

   Not sure why this is big news. palringo is already being used by customers of MegaFon and all of the other Russian operators. Not only does it provide access to ALL of the major IM services it also adds vocal IM (walkie-talkie style voice) and photos-all in one easy to use application. And, of course the current application is free to download!
   
   Kerry Ritz
   Palringo Ltd