Telstra wary on ringback tones

By Angus Kidman, ZDNet Australia
31 January 2005 05:05 PM
Tags: wary, telstra, kidman, angus, ringback, tones, gordon
Telstra is continuing to weigh up plans to enter the ringback tones market, but the telco harbours concerns that Australians may not be enthusiastic adopters of the service.

Ringback tones allow telephone users to specify a particular sound -- often a piece of music or dialogue from a movie -- which anyone who calls them will hear in place of a conventional network ringing tone. Because ringbacks are stored on a central network for playback, they aren't restricted to the limited range of sounds available for mobile phone ring tones. The tones can be customised for particular groups of callers, so family members might hear a song while business associates hear a pithy line from the latest action blockbuster.

Ringbacks have proved particularly popular in Asia, and the Arc Group estimates total global annual ringback sales at more than AU$4 billion. However, it may be a while before Australian mobile users enjoy such a service, despite the popularity of other customisation services such as ring tones, wallpapers and games.

"We're certainly investigating what ringback tones would mean for Telstra," said general manager for wireless consumer data services Graham Gordon. However, Gordon argues that cultural differences between Australia and other countries in the region might mean ringbacks aren't a guaranteed smash.

"Their popularity will certainly be strong, but I'm a bit reticent to launch into it just yet," he said.

Because they use original recordings, ringbacks have higher licence fees, and those are more easy to monetise in markets with a larger population, Gordon noted.

Gordon's comments echo a recent report from Ovum which noted that Western consumers may not have the same enthusiasm for ringbacks that Asian countries have shown. "The ringback tone service is difficult to explain and market," the report noted.

Talkback 5 comments

    Judging from the Successfull l ...Anonymous -- 03/02/05

    Judging from the Successfull launch of ringback Tone in the UK by TMobile, i think it would be a smash amongst the Australian public especially for the ages between 16-25.
    Telecom New Zealand also launched Ringback Tone last year and are also crying out success.
    I'm sure Telstra would not mind taking a bite out of a pie that could be worth more than AU$4 billion.

    Ring Back Tones (RBT) complime ...Anonymous -- 04/02/05

    Ring Back Tones (RBT) compliment ring tones and takes personalisation to a newer level.

    It was first successful in Korea by SK Telecom and now have a huge chunk of the Korean RBT market. If Mr. Graham Gordon believes RBT wont be popular in Australia then i believe he should have a chat to SK Telecom subscribers in Korea.

    Soon after Korea, T mobile launched RBT in UK and called it "caller tunes" and they now have more than half a million subscribers within 5 months. I think Mr. Graham Gordon should have a chat to them as well. And taking into consideration, Australians generally tend to follow the UK demographics.

    I mean how exciting is this service. We are now replacing boring dial tones not only with real audio but also as a strong marketing tool. companies will be able to send strong sales and marketing messages directly to a captive audience. Not forgetting its efficiency and cost effectiveness. RBT will open a whole new world of advertising.

    Gurus all around the world has predicted RBT a billion dollar indusry. Simon Buckingham from research firm, Mobile Streams said, "i certainly think ring back tones service is going to be very very popular" and he should know because he is the mobile phone guru who made his fortunes from text messaging and ring tones. I certainly think Mr. Graham Gordon should have a chat with him as well.

    Mr. Graham Gordon, RBT would mean...Telstra will have the opportunity to increase their ARPU by this exciting value added service. Telstra will also have the opportunity to get out of commodization. Most importantly, Telstra will have another way to retain loyalty to their existing subscibers. RBT sets on the network giving Telstra total control of the revenue thats been generated. So i believe we should commercialise this service and open a new indusry in the Australian market.

    Lastly, without music this service wont be successful. So i anticipate content providers are waiting for their opportunity to have another reveune stream in respect to RBT. Issues i believe will be raised are when can they acquire the RBT license and i am sure APRA/AMCOS is also waiting for this opportuniy.

    So it is imperative we should start looking into getting RBT solution in Australia and contribute to the telecommunication/contents market.

    I believe its time to give it ...Anonymous -- 09/02/05

    I believe its time to give it a shot!

    shareholders would be keen to know why it's taking so long?

    Bouygues Telecom is going to l ...Anonymous -- 01/03/05

    Bouygues Telecom is going to launch dringos (ringback tones in English) this year. Does someone knows when Orange and SFR will come in this growing market ???

    Orange and SFR should be launc ...Anonymous -- 05/03/05

    Orange and SFR should be launching ringback tone soon. I guess the problem arises when Telcos realise to intergrate the RBT into their MSC switch, they might have to grow through some expenses. And i guess Telcos want to see if RBT investment will be feasible for them. But judging from the trends around the world, i would say Orange and SFR will soon enter the market

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