Zain Jordan focuses on m-commerce to boost revenue

Operator sees mobile advertising as yet another area for growth in the country
Zain Jordan is set to boost its revenue through mobile commerce services in the country
Zain Jordan is set to boost its revenue through mobile commerce services in the country

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Zain Jordan, a subsidiary of Zain Group, is to focus on mobile commerce to increase its revenues after launching its HSPA+ network in the country in March.

"In the new business initiatives, we have mobile commerce as the new revenue generator. We launched mobile commerce in the Middle East with the first centre in Jordan, and we are seeing good numbers in this space," Osama Tarazi, marketing manager for mobile data services, Zain Jordan, told CommsMEA at a recent event in Dubai. However, he said that the market still needs to be educated about the benefits of mobile commerce to reach maturity.

Zain Group made the initial launch of the ‘Zain E-mal' mobile wallet service to its customers in Jordan in January, and the operator plans to roll out similar services into other operations in the Middle East this year. The mobile wallet service includes cash-in/cash-out, money transfer and airtime top-ups.

The E-mal service has attracted over 4,500 users in less than two months since its launch and Zain Jordan expects to attract 50,000 users by the end of 2011, according to the Amman News Daily, a local newspaper.

Tarazi said that the Jordanian market has a lot of potential for advertising spend. However, he added that in the case of mobile advertising, the challenge is that "the market has zero profiles".

"So, operators should focus on mobile marketing to create an interest specific to customers. This business will boom as advertisers can have a better target on their ad spend," he added.

While Zain Jordan experienced a decline in its SMS revenues owing to aggressive competition, the operator plans to increase its mobile data revenues to contribute to over 15% in the coming year. "With the recent launch of HSPA+ mobile broadband and mobile internet services in the country, we will be focusing on the new services such as mobile TV, mobile advertising and m-commerce," Tarazi added.

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