Content Futures

Mobile Entertainment & Commerce
...the analyst view

Edition Forty Three - 31st October 2007

Lead Stories
 
 
Dear Industry Executive

3UK and Skype: the end of MNOs as we know them?

The ‘will-they-won’t-they’ game of ping pong played out between mobile network operators and VoIP calling has taken an interesting turn in the UK. This week the CEOs of 3G operator 3 UK and VoIP calling company Skype jointly announced The Skype Phone, which will be exclusively available on 3 and will allow users to make calls over Skype when connected to the mobile web.

To date most network operators have blocked any sort of Wi-Fi access or the ability to make phone calls over the web using the likes of Skype. It simply isn’t in their interests to do so: why cannibalise voice revenues, which are already under pressure, with mobile web services, which are getting cheaper and cheaper by the month?

So why is 3UK bending over backwards to make it easy for its users to do just that?

Well, speaking in the BBC Business News, a company spokesman suggested that it was simply a way of prizing customers away from the other operators. 3 is the smallest network operator in the UK market, so who can blame it? Priced at just £49.99 for the phone – or £89.99 for a pair (think about it) – the package is attractive.

Is it attractive enough to lure people away from their operators and on to 3? Will those that do take up the offer use the carrier’s other services with alacrity too? Will it boost ARPU enough to justify the loss of voice revenue? Will it even work?

So many questions. And very few answers. But perhaps the biggest question mark hangs over what if the services is actually a success?

If users to take it up, what then for 3’s voice revenues? And if users are using their new VoIP handset to make Skype calls, using google to search, socially networking with Facebook and watching TV with one of many mobile and TV services, what exactly will 3 be getting out it all?

It is also very interesting to see what the other operators will do. No one wants to go VoIP, but if it is a runaway success and consumers vote with their feet, will all network operators take the plunge. Is this beginning of the end of MNOs as we know them?


 
 
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Operators are in pole position to profit from mobile web – if they look at multichannel access and leverage SMS and MMS

Operators looking to profit from mobile internet must focus on enhancing existing internet applications and communities with made for mobile capabilities and multi-channel access, according to an expert panel polled by messaging company Acision last week at the Telco 2.0 executive brainstorm in London. 

More than two thirds (68 per cent) of the panel, comprising senior representatives across the telecoms industry, believe that the most lucrative operator mobile internet strategy lies in augmenting the fixed internet experience with mobile capabilities such as location, immediate access and unique customer identity. 

The panel also favour a cross-channel access approach to mobile internet, with 24 per cent advocating leveraging SMS and MMS to increase revenues. MMS in particular is seen as a multimedia distribution channel for internet-originated commercial content as well as user-generated content, with 58 per cent believing this to be its biggest value-add.  Only 15 per cent believed that the future of MMS is restricted to P2P multimedia sharing. 

Asked how operators can avoid price commoditisation as a result of flat rate pricing models for mobile internet, the industry experts favoured two options.  The most popular (44 per cent) is to offer differentiated internet packages targeted to individual consumer segments, ranging from basic to premium offerings with specific flat-rate price points. Almost as popular, 36 per cent of delegates thought that mobile operators are in a position to charge internet brands for providing an optimised mobile internet experience against assured service levels.

Tom Veldman, Product Marketing Director at Acision commented; "Industry experts are in close agreement; operators have a golden opportunity to boost revenues with the mobile internet but the right strategy is crucial.  A holistic approach will be key - operators should maximise their value-add by leveraging the entire mobile ecosystem at their disposal, from location based services to SMS interactivity.  Revenues will come directly from the customer through usage of mobile internet services, but operators can also expect indirect revenues from internet brands that are keen to increase interaction with their users by mobilising their offerings."

  
 
 

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Europe and India lead assault on US mobile content market

 
Europe’s premiere mobile content and value-added services company Zed and India’s Tanla Mobile are leading the march of companies crossing the Atlantic to exploit the suddenly booming US market for advanced mobile content services.

Zed – the leading mobile content company worldwide in terms of revenue and geographical presence, turning over a record $100m in the month of September alone – plans to increase its focus in the US by introducing a portfolio of entertainment and community products and services for the Web and mobile markets. In order to replicate its global success in the US, Zed will join the operations of Zed USA with 9 Squared, which was acquired via the acquisition of the MonsterMob Group PLC in February 2007. The combined entity will launch a number of new Zed-branded community and entertainment applications that are currently experiencing tremendous success outside the US.

Meanwhile, Tanla Mobile, a leading provider of mobile messaging, billing, payments and interactive services, has entered the North American market, offering to bring its elevated mobile experience honed across Europe and India to the bourgeoning US market.

“Mobile adoption rates in the U.S. have reached such a precarious state that operators are under intense pressure to find alternate means to increase ARPU” said N.V. Subba Rao, President and CEO - North America, Tanla Mobile. “As the only company in this sector that provides an integrated mobile solution encompassing content management, messaging, payments and customised applications, we’re excited at the opportunity to help U.S. content and service providers generate new data revenue, optimise business efficiencies and improve consumer interactivity.”

“US consumers are looking for products that allow them to balance their connected online and mobile lifestyles,” says Brian Casazza. “Zed’s products are not only fun and entertaining, but they enable a consumer to access them from the Web and mobile – thereby allowing the user to always be connected to their community and interact passionately with other peers. We are very excited to introduce these successful applications to the US market.”

 

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CBS enhances its mobile news and sports with Medio’s best of breed search and advertising

In a US industry first, CBS Mobile has teamed up with mobile search and advertising company Medio Systems to add search capabilities and search-enabled advertising opportunities to its CBS Mobile websites. This partnership marks a significant milestone for both companies in driving a standard for delivering easy-to-access mobile content to a growing mobile Internet audience, projected by eMarketer to exceed 750 million users worldwide by 2010.  

Under the agreement, Medio Systems will provide CBS Mobile users the ability to easily search and navigate content on CBS Sports Mobile (wap.cbssports.com), CBS Mobile News (wap.cbsnews.com), and CW Mobile (wap.cwtv.com) websites. The partnership also expands the wide-ranging menu of advertising options CBS mobile offers clients.

"Medio's search is truly mobile-centric in concept and design," says Cyriac Roeding, Executive Vice President, CBS Mobile. "When users search their favorite sports team on their cell phone, they want a very different search result than they would online. For instance, on their small screen, they might want a quick snapshot of the latest scores, injuries, news and gossip about the club.  This is the kind of experience we will be providing within CBS Sports Mobile with Medio Search."

This announcement with CBS marks the official launch of Medio Mobile
Search for Publishers, an advertising-supported search solution that is
built and optimized for the mobile experience.


 
 
 
nfc 

Local search the ‘low hanging fruit of LBS’, says TruePosition

A staggering 70 per cent of consumers are receptive to advertisement-sponsored local search services, which could prove to be a significant new source of revenue for mobile operators. So finds a study carried out by IDC on behalf of wireless location technology company TruePosition.

According to the study, mobile local search looks set to be the LBS low hanging fruit for the mobile operator community, but only if MNOs can agree a free advertising based business model.  80 per cent of Spanish, 60 per cent of UK and 70 per cent of US respondents would be likely to consider subscribing to mobile local search services, but only if they are free.  Only 40 per cent Spanish, a quarter of UK and US would consider paying for them.

Parent monitoring children, and even bosses keeping track of their employees are both seen as key areas for LBS development. Its role in UGC and social networking is contested however. On the one hand, says TruePosition, it could add a whole new location based element to networking sites, but users would demand some form of security about who ‘saw’ them before signing up.
 
“Location based services have been met with extreme cynicism in Europe over the last few years. They have promised much and delivered little.  But these research findings clearly demonstrate that we are now experiencing something of an LBS renaissance,” says  Robert Morrison, TruePosition’s Senior Vice President of Market and Business Development. “The technology, handsets and high bandwidth networks now exist to deliver the accuracy to ensure the best possible user experience.  This will pave the way for LBS to deliver the revenues they have always promised and drive demand for the innovative services highlighted in our study.”


 
 
 
nfc

52m consumers to use mobiles to pay for everyday goods and services by 2011, finds study

Nearly 52 million consumers will adopt new mobile technologies such as NFC (Near Field Communication) and other physical mobile payment methods to pay for everyday goods and services by 2011, according to the latest study by Juniper Research. This will help drive the physical mobile payments market to $11.5 billion by the same year.

NFC and other physical mobile payments methods will begin to offer consumers a viable alternative both to cash, credit and debit cards supporting their increasingly mobile lifestyles.

The new Juniper Research study found that by 2011, around 12 per cent of the total mobile phones in circulation will offer support for contactless payment, specifically NFC – equating to nearly 470 million NFC-enabled handsets worldwide, thereby providing a significant marketplace for retailers to offer goods via mPayment applications.

The report also found that mobile payment applications and services are already available in most regions in a variety of formats where they are being adopted in either a trial or commercial mode with favourable user feedback.

Industry players, such as retailers, handset vendors and the financial community in the Far East and the US are seen as particularly receptive to the idea of using RFID or NFC to facilitate mobile payments for physical goods and services.

However, the study warns that members of the mobile payments value chain must develop a mutually satisfactory, robust business model, guaranteeing revenue to all parties
 

Spinvox gives mobile blogging a voice
 

The power of mobile social networking and microblogging have been given a boost with the announcement from SpinVox, a leader in Voice-to-Screen messaging, that posting on Facebook, Jaiku and Twitter can be now achieved simply by using your voice. ’Social Networks through SpinVox’ enables voice-driven social networking from any mobile phone.

People can create an account on www.spinvox.com, where they can manage one, two or all three of their networking sites from one, personalised page.  In addition, accounts can be set up so that one voice-powered contribution can be posted automatically to all three networking sites. SpinVox expects to extend this capability to other well-known social networking and micro-blogging sites in the coming months.  

Now bloggers can generate posts by simply speaking into any mobile handset. Social Networks through SpinVox then automatically creates text and then posts directly to their chosen sites. No need to send an SMS, or to log on to the web from a mobile or wait until they get home and are online.  If a user wants to share something immediately with their online community – an urgent piece of news, a review of a great film or their latest holiday adventure - they can.  Bloggers are no longer off-line just because they’re out and about.  It can all be done through a simple phone call. 

“SpinVox is all about using voice to enable person-to-person messaging through any network or service – whether by SMS text, email, blog, or social network walls and spaces,” says Christina Domecq, CEO and co-founder of SpinVox.  “The use of social networks and micro-blogging sites has exploded in the past few years, but, so far, they’ve lacked true mobility and so are not achieving their full potential.  Whether you’ve just walked out of a concert or have discovered a great new place to eat, your voice can now be used in place of the keyboard to tell the world the news and capture your thoughts, emotions and experiences `in the moment` as and when they happen.”

 
 

Upcoming Events

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GSMA Mobile World Congress 2007
 
12th - 14th November 2007, Venetian Macau
 
The only place where the best converge.  The GSMA Mobile Asia Congress 2007, formerly known as 3GSM Mobile Asia Congress, is THE place to connect to the Mobile future!  Mobile Asia Congress is a unique environment for leading companies to showcase the latest in mobile products and solutions, a place for the industry's innovators to develop new ideas and for its leaders to set out their visions for growth.
 
Contact us today to register for the most highly-regarded event in the mobile industry.
 
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Make the greatest, most effective investment in yourself and your company by being part of the most highly-regarded event in the mobile industry, the GSMA Mobile Asia Congress.
 
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Software Engineer, Mobile Applications
 
Google, London, England, United Kingdom
 
Google engineers continue to stretch the boundaries of how people connect with information, and this extends to the company's mobile initiatives. Our Mobile Applications Software team includes talented engineers who work on problems unique to mobile computing, from inception through the end of the product development lifecycle.
 

As Software Engineer in Mobile Applications, you'll take a big-picture approach to create client applications that run on the mobile phone. Well-rounded, patient, focused, eager to work in teams and adept at sound judgement, you bring sharp coding skills in mobile applications. This job offers an excellent opportunity to help drive the flow of information into users' hands.

To apply for this position please click here 
 
 
 
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Marketplace

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ROK TV Rolls into India
 
CROK Entertainment Group, the UK-based specialist mobile applications developer, has launched its first streamed mobile TV deployment in India through local operator BSNL.
 
"We're delighted to be working with BSNL on the delivery of mass-market mobile TV in India" said Laurence Alexander, CEO of ROK "as we all recognise India to be such a dynamic and fast-growing mobile market."
 
For more information please contact Bruce Renney on +44 (0)1902 374 896
 
 
Put on Your Managers Coat, Grab Your Mobile Phone and Lead Your Team to Victory  
 
Ojom GmbH, a leading creator and global publisher of mobile games, today announced the launch of Manager Pro Football 2008 for mobile phones, the highly anticipated follow up to the 2006 edition. The game allows you to experience the highs and lows of being a football manager as you lead your team to glory.

Marc Buße, Channel Manager, of Ojom GmbH, said: "This game appeals to both mobile gamers and football fans alike and with Euro 2008 well on its way, the much anticipated Manager Pro Football 2008 comes at the right time. This is a strategic and addictive game that will have you cheering from the dugout."

 
For more information, please visit: www.ojom.com
 

 
 
Price: £1490 (Single User) £1990 (Multi User) £2990 (Enterprise Wide)
 
This extensive study presents the current and future opportunities for portable tracking and navigation products and services in Western Europe from 2007 to 2012.  The report contains a thorough analysis of three key product areas: personal navigation devices; personal navigation software for handheld computing devices; and mobile phones & wireless connected tracking devices & services (for vehicles & people).
 
Furthermore, this methodical report also covers developments in products for vehicle and person tracking applications whilst providing a practical five year forecasting suite.
 
 
For more information and for the new whitepaper 'Navigating the Wireless Opportunity' please visit the website 
 
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