DiGi Telecommunications recently announced its Content Provider Access (CPA) concept (http://cpa.digi.com.my ) that opens up the content platform, allowing local content providers to offer their services and content to the entire mobile subscriber base in Malaysia.

While each operator will have its version of the CPA, the general concept remains similar. The CPA concept, borrowed from DiGi's parent company, Norway's Telenor, aims to standardise the technical and financial aspects of offering content across all networks and endusers.

"The CPA does not lock content to just one service provider," said Erik Aas, head of DiGi's mobile division. "It's also good for content providers as they would like to offer their services to all mobile users, not only to DiGi or any other operator exclusively."

The CPA platform resides between the short message service centre (the delivery channel) and the billing system. The platform is connected directly to the content provider via a leased line or a virtual private network.

Individual operators will have their own version of a CPA platform, with which content providers will have to connect to.

One of the standardisation efforts within the CPA is the implementation of a unified short code of five digits that would allow content to be accessed across all participating network providers.

Right now, content is still limited to what is considered "premium" SMS such as ringtones, logos and more. The CPA will however support other services in the future.

A unified short code means that the five-digit number allocated to that specific service will be universal across different provider networks. While short codes allows a more transparent and less confusing way for consumers to request for a service, what truly underlines the CPA is the ability to offer the same content to the entire mobile market.

With it, content providers are not required to sign exclusive deals with network operators. Such deals restrict the content for access by subscribers of a particular provider's network.

"Previously, if you wanted to offer a service or content, you would have to sign with a particular operator or do it on your own. You didn't have a choice," said Tan Swee Yeong, chief executive officer of UnrealMind.com, a local games developer.

"Now, there's an option. This is the complete opposite of the 'walled garden' approach," he added.

The term walled garden is commonly used in the telecoms industry, referring to an environment where operators rely on their own resources and limited enduser access to content within its own portal.

The option still remains for operators and content providers to forge exclusive deals, but now both parties have more avenues.

Another benefit of the CPA is the standardised pricing, which remains the same regardless of the service network. Before, prices of services differed from one operator to another. However with the CPA, prices of services and content can range from between 20 sen to RM10, and will be standardised across all networks.

But the highlight of the CPA really is the issue of revenue sharing. Under the DiGi CPA, content providers will receive 70% of the charges while the operator takes the remainder 30% per message delivered to the subscriber. From the 70% revenue, seven sen would be paid to the operator for the infrastructure costs.

Sounds good? Most definitely given that such an arrangement was unheard of with the exclusive deals that were previously prevalent.

According to content developer Langkah Teknologi, the revenue sharing model for content providers and operators in exclusive deals is the reverse of what the CPA offers.

"Exclusive deals would mostly favour the operators," said Zairil Ayu Ibrahim, its chief operating officer.

And the reason for this is simple: Content providers were relieved from bearing the costs of promoting, marketing and advertising the services and content, which usually amounts to a hefty sum.

However, for services and content delivered on the CPA platform, the content providers are required to advertise and promote on their own.

This drew mixed responses from local content providers.

Some seemed agreeable to this arrangement, saying that the task of promoting their services would allow them more freedom and would be more revenue-driven; others however weren't ready to reach deep into their pockets.

"The advertising and promotions could be the 'big' killer," said UnrealMind's Tan. "If you're a small startup, it will be very difficult to market. You have to find your own sponsors, prizes and more."

The cost of advertising could be a heavy load for some, but one of the ways companies with smaller capital can share the cost is through partnerships, suggested T. Kugan, senior manager of product development and value-added services at DiGi.

"Content providers might want to partner with media companies. This will help reduce advertising and promotion costs," said Kugan.

He noted however that while the market might invite more content providers now, we might see a consolidation in the future as smaller companies with limited budgets are forced to work together.