OVERVIEW| What's a Ringback Tone? |
 | Ringback tones replace the standard "ring-ring" sound heard when a call is connected and you're waiting for the other person to answer. Rings are replaced with content such as music, jokes, or personal messages that entertain waiting callers. One way to understand ringback tones is that, like ringtones, they replace a run-of-the-mill sound with something fun and creative. Ringback tones are selected and controlled by the person being called. | |
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| A common trait between ringback tones and downloaded mobile ringtones is that both represent ways for service providers to tap new revenue streams. With ringback tones, service providers can leverage the things that helped make ringtones a hit, such as the ability to personalize and liven up something otherwise mundane. However, ringback tones provide a new twist: they allow users to express themselves to the people who matter most - the people who are calling. From an operations perspective, carriers can utilize many of the same ringtone management tools and content relationships. The difference is that ringback tones offer a much more lucrative business model. Why Ringback Tones? Why do ringback tones have a brighter future than ringtones? One reason is that they work with any phone, old or new, wired or wireless, because the service resides on the network rather than on the phone. By comparison, only wireless subscribers can use ringtones, and even they're limited by factors such as the phone's audio quality and memory - assuming that their phone can handle ringtones at all. Everyone who calls a ringback tone subscriber will be exposed to this service, unlike the case with ringtones, which are heard only by the called party. A key upshot is that a ringback tone service can immediately tap a service provider's entire customer base. It's conceivable that a customer could also have multiple ringback tones, such as one for their home number, one for their wireless phone, and one for their office number, regardless of whether those services are delivered by disparate networks. A ringback tone service has the potential to generate more revenue per subscriber than a ringtone service. One reason is that with ringtones, revenue is earned only when a user makes the effort to download one. Aside from a handful of demographics, such as teens, few users tend to change their ringtones on a regular basis. Carriers are lacking the tools to encourage customers to consume additional content. This is not the case with ringback tones, which empower carriers to be much more proactive in motivating customers to consume more content. Ringback tones are controlled and managed from the network, not from the user's device. The intelligence and control provided by the network creates a richer service that allows for unique content to be directed to individuals and groups, made specific for time of day, or customized for unique events. The ability to influence and motivate the purchase of content moves the carrier from back-seat passenger status to a driver of new revenue-generating services. A network-based system with personalized Web pages enables easy customization and maintenance of multiple ringback tones. Unique content can be provisioned for specific people - such as classical music for your father or disco for your sister. Time of day or one-time events, such as birthdays, can also be provisioned, or a mix of content can be assigned randomly. Intuitive Web portals encourage users to sample and then provision multiple selections of content. Downloadable clients such as BREW or J2ME, WAP pages or IVR systems provide other ways for users to adjust the ringback tones that they've selected for their family and friends without the need to go back to their Web provisioning page. Users can also avoid the issue where first-time callers hang up because they're surprised to hear something other than a ring. For example, they can record a brief voice message before the music or other content starts, such as: "This is Sam. Hold on while I answer the phone." This feature has a side benefit - callers immediately know that they've reached the right person, something that a standard ring doesn't provide. In addition in markets such as Asia where ringback tones have taken off callers are now accustomed to hearing a personal ringback tone. From a pricing perspective, ringback tones provide users with a better value proposition than a one-time download of a ringtone: - Flexibility: Customers have the right to use the content multiple times at their discretion. For example, they can specify for whom, when, and how often the content will be used. The service provider is the secure middleman ensuring that the content owners are duly compensated.
- Service: The network provides a simple and highly customized service for every call made to your number. The service provider provides a continuous service by matching each caller to the correct content and then playing the unique content for each call, versus the generic ring from the network switch.
- Storage: The service provider holds and maintains each customer's collection of ringback tones, so all customers receive their own space on the network for content storage. This is for all of their ringback tones, not just those that are active.
- No limitations: Unlike ringtones, ringback tones aren't limited by users' devices. Ringback tones reside on the network, so they'll work with any wired or wireless phone. As a result, users know that all of their callers can enjoy the service. Ringback tones are not a niche play.
These benefits highlight another reason why ringback tones differ from ringtones. Users are buying more than content: they're buying a customized service and storage. Many carriers view ringback tones as a must-have from a competitive standpoint. For example, once one carrier launched the service in a Pacific Rim country, others quickly followed, largely because calls met with a standard ring now seem old fashioned to users. Enterprises are also another potential large market segment. Companies can use ringback tones to influence the mood and perceptions of incoming callers, or they can create customized ringback tones for specific customers. Companies can also create outdial ringback tones that play a corporate theme song, music for a new product launch, or other company-specific content whenever an employee dials out from a wired or wireless company phone. |
TECHNOLOGY Technical Overview
Ringback tones are network based (which provides a business benefit that revenues are collected on a monthly recurring basis for basic service as well as content charges for each ringback tone the subscriber selects).
RBTH's RBT system enables telecom operators to address critical issues such as user subscription and service set-up management, delivery operation, and billing statistics & usage pattern tracking. Unlike other RBT systems, our solution is compatible with different protocols such as GSM, CDMA, and PHS. This allows RBT subscribers to enjoy the service while they roaming outside their area and smoothly interact with people using different mobile phone systems.
A party that is calling a ringback tone subscriber during the initiation of the call will have the call flow diverted to the ringback tone system via the call switching system to enable delivery of the ringback tone (that can also be for a particular calling party by examining the calling parties phone number ID). When the ringback tone subscriber answers then the call in connected normally.
There are several methods within the switching system to interrupt the call connection flow in order to replace the standard "ring-ring" ringback tone with a custom ringback tone to provide the service. RBTH's licenses and intellectual property cover all the combinations within the network that can provide the service. The two main configurations are connecting to the switch that the calling party is connected to or the switch that connects the receiving caller (who is the subscriber to the ringback tone service).
Deploying Ringback Tones
The first step in deploying a ringback tone service is to tweak the switch to allow for the interruption of the call flow so that instead of playing a generic ring, it connects to the ringback tone system. Intelligent network switches can be easily reconfigured to have the calling party receive the customized ringback tone. Here the advantage falls to the wireline carriers who long ago invested in upgrading their networks in order to supply a slew of smart or intelligent services (e.g., 800 number services).
Intelligent switches are not as prevalent for wireless carriers, who can choose to implement either a service node or a switch-based solution. Service nodes route the entire call through the ringback tone platform, but this circuitous path requires additional ports and trunks for each call, which can be an inefficient use of network resources. A few switches can mitigate the incremental costs if they have the ability to release the call from the ringback tone platform once the call has been completed. This is known as release link trunking.
A switch-based solution requires potentially expensive software upgrades to the switch. This solution is identical to the change a carrier would make in an intelligent network switch. However, a software change to a switch requires this capability to be added to the software release cycle of each switch vendor and then scheduled into the release verification testing in the network.
In China a unqiue solution to providing a central ringback tone solution that will work across different wireline and wireless technologies (CDMA, GSM, PHS, etc) and across different regions has been developed and a patent application filed by RBTH. It allows for ease of deployment as well as customer roaming across China. This service has been deployed by Tekenet. More information can be found in the China Partners section.
After Initial Deployment
Once the initial investment is made, service providers and their partners have the ability to add features and services whenever they want, without requiring additional changes to the switch. A basic offering can first be deployed to build usage. Next, service providers can add additional personalization and customization features that help drive content consumption and use.
CALL FLOW DIAGRAMSA party that is calling a ringback tone subscriber during the initiation of the call will have the call flow diverted to the ringback tone system via the call switching system to enable delivery of the ringback tone (that can also be for a particular calling party by examining the calling parties phone number ID). When the ringback tone subscriber answers then the call in connected normally. There are several methods within the switching system to interrupt the call connection flow in order to replace the standard "ring-ring" ringback tone with a custom ringback tone to provide the service. RBTH's licenses and intellectual property cover all the combinations within the network that can provide the service. The two main configurations are connecting to the switch that the calling party is connected to or the switch that connects the receiving caller (who is the subscriber to the ringback tone service). The architecture and call processing flow are best described by diagrams, which are shown below. The first diagram here shows the ringback tone system connected to the calling party's switch and the dotted lines show the basic sequential call processing flow: |
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Figure 1. Call Flow based on Ringback Tone server connected to originating switch |
| A more detailed sequence diagram that shows the step by step events that occur in the above figure is shown here: |
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Figure 2. Call Sequence Diagram - RBT server connected to originating switch |
| The other common architecture, as mentioned above, is for the ringback tone system to be connected to the receiving switch (the receiver of the call is the ringback tone subscriber). This is shown in the following figure: |
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Figure 3. Call Flow based on Ringback Tone server connected to receiving switch |
| A more detailed sequence diagram that shows the step by step events that occur in the above figure is shown here: |
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Figure 4. Call Sequence Diagram - RBT server connected to receiving switch |
| Ringback Tone Holding's patents cover these and all other configurations used to deliver the ringback tone service. |
MARKETOverview Ringback tones are especially attractive to those in the 15 – 34 age group who seek products and services that they can customize to demonstrate their own personality. For telecom operators, ringback tones are a high utilized additional service that has proved to be a strong recurring revenue generator when they maintained a balance between technology, quality, and appeal. In addition the service is network based so that revenues are collected on a monthly recurring basis for basic service as well as content charges for each ringback tone the subscriber selects (rather than simple downloaded ringtones or games which are a one-time purchase)
Ringback tones have proved to be more than a fad, but a permanent part of the mobile lifestyle
The RBT service has become a standard service in Korea where it was originally invented and first launched by SK Telecom in early 2002 and has proven itself to be more than a fad as it permanently replaces the conventional ringing tone for many mobile phone users and remains a pioneering MVAS that continues to generate significant revenues in that market with subscriber penetration rates still exceeding 50%. After its introduction throughout Asia, RBT has been launched in both the European and US markets in late 2004.
According to Ovum, the worldwide RBT market is forecasted to grow to US$2.4 billion by 2008, a somewhat conservative figure in light of the developments in Asian markets.
In addition ringback tones have rich development potential that RBTH is heavily involved in, such as advertising sponsored ringback tones which provide value for both the advertiser and subscriber. In addition with the introduction of 3G services video ringback tones can be used to offer images before the call connects – an enormous opportunity for advertisers
RBTH is focusing on the China market, which represents the largest mobile phone and services market in the world. More information on the specifics of the China Market can be found in the China Business > China Market section.
China Market Section :
| In China RBTH operates through its China subsidiary Ring Back Tone Union (Beijing) Telecom S&T Co., Ltd. (RBTUB). RBTUB sublicenses its rights to local partners and collects local royalties from those parties, sharing revenue with RBTH. RBTB was founded in 2003 as a foreign investment joint venture and was designated by the PRC government as a ‘National High-Tech Firm’ in 2004. In addition RBTH works through its subsidiaries and partners in China related ringback tone research and development. Project include development of a multi protocol RBT system and work on future 3G related ringback tone applications. RBTH's ringback tone intellectual property licensing business in China is currently structured around the following technology and patents (more information on the patents can be found here): |
- Method and Device for Business Ring Back Tone through Uniform Platform and Multioperator Sharing (PRC Patent Application 200410000058.2)
- Method and Device for Generating Voice/Text/Image Commercial Information Ring Back Tone During Communication Wait (PRC Patent Application 99810683.6)
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| China Business Model Example (Telecom Monthly Subscription Based) 
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| As can be seen in the diagram the RBT Service Provider (also referred to as the Master Content Provider) is responsible for delivery of value added services (such as Ringback Tones) and is critical to both generating revenues and royalties to RBTH. This concept of a mobile value added service provider (Master Content Provider or MCP) is a relatively new concept in China where telecom operators at the provincial level utilized often multiple service providers to offer MVAS. The co-existence of small scale provincial MCPs has resulted in the following problems: |
- Deployment of out of date systems that deliver inferior services
- System clashes brought by conflicting technology
- Incompatible systems and equipment used by the provincial operations belonging to the same telecom operator
- Notable contrasts in the quality of service providers and their products
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| As part of a restructuring of the MVAS provider industry, telecom operators now strongly prefer work with MCP who can operate on the nationwide level and provide a quality and standardized service to all their customers. Using a major MCP, like Zhongyi Weisheng in the case of China Mobile or Tekenet throughout China enables the telecom operator to achieve a standardization of equipment and systems and offer a better service. |
IP/PATENTS| Core Ringback Tone Patent |
| The patent for the ringback tone method is titled ‘Method and Device for Generating Voice/Text/Image Commercial Information Ring Back Tone During Communication Wait’ (PCT Patent WO 01/06735). The patent has been filed in many countries, has been granted in several and is currently in process in others. RBTH acquired an exclusive license for the patent for Asia and other regions from Ringfree International Corporation (US) and either has been assigned or in process of being assigned the patent rights via the patent officies in the reigions for which the exclusive license from RFI to RBTH is covered. The abstract of the patent is: |
| Voice/text/image commercial information generating method and device during a communication is on wait. The method includes the steps of: checking a telephone call, connecting with a commercial information ringback tone generating system/device at an originating or a receiving communication system when the call is detected, beginning to transmit a commercial information in forms of voice/text/image instead of the original ringback tone or a guide message to an originating telephone from the commercial information ringback tone generating system during a communication wait, requesting a connection to a receiving telephone from the commercial information ringback tone generating system after an A-timeout lapses, continuously transmitting the commercial information to the originating telephone, checking whether the receiving telephone accepts the connection request, stopping the providing of the commercial information ringback tone if the telephone connection is made, connecting a communication line between the originating and the receiving telephones, checking whether the communication is finished, and disconnecting the communication line if the communication finishes. | |
| Patent claims cover methods for generating RBT during the wait period of call connection. More information on the patent can be found at the World Intellectual Property Office web site by clicking here. The patent itself can be viewed or downloaded (by right-clicking and selecting "Save Target As...") in PDF format by clicking: View/Download PCT Patent WO 01/06735 (3.5 MB PDF) (Adobe or PDF Reader Required)   Download Adobe Reader
China Patents RBTH’s business in China is currently structured around both the method patent described above (the China application is PRC Patent Application 99810683.6) and additional invention patents created and filed by RBTH. One additional core patent filed in China tiled "Method and Device for Business Ring Back Tone through Uniform Platform and Multioperator Sharing" (PRC Patent Application 200410000058.2) relates to a method and device that allows a uniform MVAS and ringback tone platform to be shared by multiple operators across China. It was developed by RBTH’s China subsidiary Ring Back Tone Union Beijing Telecom S&T Co., Ltd. (RBTUB) in 2003, and is currently pending in the China Patent Office (PRC Patent Application 200410000058.2). Two of the patent claims are based on providing a unified MVAS platform that can support both multiple operators, nationwide support and user roaming of services. This is novel as opposed to the current art which is based on single operator and local support. The other claims are specific use cases for delivering RBT services via a unified MVAS platform This patent was designated as one of the top 10 patent applications of 2004 by the PRC State Council. In addition RBTH continues to work on developing and licensing additional intellectual property rights to enhance its portfolio. |
Personalizing mobile phones from screen savers to specialized ring tones are just a few methods mobile operators deploy to increase revenue within their subscriber base. Ringback tones add a more sophisticated dimension to customization. Unlike ring tones, which reside in the handset and may require specific resident features, the ringback tone service resides on the telecom provider’s network. Every mobile customer, regardless of handset, can use the ringback tones service, and all of their callers, regardless of whether they’re calling from a fixed-line or mobile phone, will hear the ringback that the customer has chosen for them to hear. Most importantly, ringback services provide an operator with other methods to increase average revenue per user (ARPU) by selling additional ringback tones to their subscribers.
