Dear Industry Executive

Will Payforit boost content sales?

All of a sudden the mobile internet actually seems a reality. As discussed in last week’s issue (and passim), flat rate data charging is heralding in true mobile web surfing — the theory being that if it doesn’t cost an arm and a leg, then consumers will freely search the web on their phone.

And now there is another huge — and much needed — boost to the mobile content market. The arrival of mobile payment mechanism Payforit, nominally on the 1 July, will herald an unprecedented boom in mobile content sales and will open up the mobile internet to the vast majority of companies that do not as yet sell things through the wireless channel.

The theory goes that consumers, thanks to flat rate data, will be able to browse and find things on their phones without worrying about the cost. Once they have found them, Payforit offers a trusted, easy to use and understandable method to pay for things. These two things in tandem suddenly make the fixed web work on mobile.

And about time too. WAP promised to change the mobile world back in 2000. Since then it has been one false start after another and content sales and uptake have suffered as a consequence. Suddenly making mobile open to browsing, search and discovery and then giving consumers a trusted third party payment mechanic to buy content is bound to lift sales. Suddenly it all looks a feels like the web that they already use.

But for those already in the content business there is something of a caveat. Well, perhaps. Currently only some two per cent of businesses that have a presence online have a commercial mobile presence. Making m-commerce so much easier is bound to start to attract many of the remaining 98 per cent who, today, don’t offer mobile.

While this is a boon for consumers — think of the choice! — it will make the mobile content space even more crowded and competitive. And, let’s face it, there is no evidence to suggest that, even if there is more choice, there will be even more sales. So, while thinks look rosy, there may well be some serious commercial thorns to negotiate.

Sign up today

Europe and US join forces to drive development of mobile advertising

The GSM Association (GSMA) and the US Mobile Marketing Association (MMA) have agreed to cooperate to accelerate the development of mobile advertising worldwide, the two organizations announced last week at the Mobile Marketing Forum in New York.  The two organisations will collaborate to deliver standardisation and transparency around current mobile advertising activity, and to develop new, innovative advertising techniques.
 
The MMA will lead the development of guidelines, formats and best practices for mobile advertising, while the GSMA will work with mobile operators globally to develop and prioritise consistent structures, such as inventory types, commercial and measurement models that will allow advertisers to create valuable advertising propositions.
 
“This partnership will build on the Mobile Marketing Association’s work to date in the development of mobile advertising,” says Bill Gajda, Chief Commercial Officer, of the GSMA.  “The MMA and GSMA will bring leading advertisers, agencies and operators together to ensure that this very promising, but nascent, advertising medium realises its full potential for the benefit of all players in the ecosystem.”
 
The agreement follows the recent announcement of the GSMA’s Mobile Media and Entertainment Group that will oversee its Mobile Advertising Programme, which is made up of representatives from leading mobile operators from around the globe.
 
“The value chain for mobile advertising is more complex than other media channels, with the mobile operator playing a key role, hence the driver for collaboration.  The GSMA brings the global GSM mobile operator community to the table and we look forward to working with them to expand the reach of a sustainable mobile advertising ecosystem,” said Laura Marriott, president of the MMA.  “We look forward to working jointly with the GSMA to deliver a consistent global industry standard for mobile advertising.”

Comment | Forward to a Friend

Vodafone claim that mobile VoIP “a terrorist threat” causes uproar

Vodafone’s claims — voiced on Sky News in the UK — that IP based mobile services, especially VoIP such as Skype were expensive and could be an aide to terrorists has been met with some vigorous opposition within the IP and mobile communities.

The story, which fans the flames of a two month long war of words between the network operator and the nascent mobile IP comms industry, centres around Vodafone excluding IP services such as Skype from its flat rate data charges rolled out last month.  Vodafone has a vested interest in protecting its voice revenues — which account for 80 per cent of its profits — but many in the IP industry are angry that the company has chosen to use cost and the threat of terrorism as arguments in favour of its effective ban on IP.

“Mobile VoIP is only expensive if a user places a mobile VoIP call using the internet connection provided by their mobile operato — for example, from a 3G data connection,” says Aaron Powers Vice President of Business Development at mobile IP provider Vyke. “This is because of the very high tariffs charged by mobile operators in general for mobile data services. If Vodafone, for example, claims that mobile VoIP is ‘expensive’ for the user when used via the Vodafone mobile data network, it is because Vodafone’s mobile data network charges are expensive. I hope that, like me, you appreciate the irony of Vodafone warning its customers about its own tariff structure.”

On the terrorism issue, that VoIP over mobile is untraceable and so a boon to terrorists, Powers echoes the feeling of many in the industry: “Stating that VoIP services are unsafe and that they may be used by terrorists to avoid detection by law enforcement is, at best, irresponsible.  In Vyke’s opinion, this attempt to associate public fears over the threat of terrorism with a new and beneficial technology amounts to nothing less than scare mongering.”

Mobile VoIP has been widely tipped as a threat to MNOs hegemony over mobile voice calls, now that Wi Fi is present in many urban areas around the world. The threat also extends to delivery of content over Wi Fi to mobiles. We haven’t heard the last of this debate.
 

Comment | Forward to a Friend 

“3G for all” handset set to kick start 3G content market, hope operators worldwide

Inspired marketing or a panicked moved by network operators worried by the lack of global uptake of 3G, either way, the winning handset in the GSMA’s “3G for All” programme, the LG-KU250, is now on sale across the globe, marking a new phase in the evolution of the market for third-generation mobile services. The 3G handset from LG Electronics was selected by 12 leading operators to spearhead the GSMA’s campaign to make multimedia mobile services accessible to a much wider user base.
 
The handset is priced to enable many more people to take advantage of 3G services, such as video calls, music downloads, high-speed Internet access, multi-tasking and many other multimedia services. The LG-KU250 will be launched by international operators Hutchison 3G, under the model name LG-U250, T-Mobile and Orange in some of their markets and also by local operators. It is set to go on sale in Europe, Asia, Middle Asia and Africa from this month. The availability of the LG-KU250 underlines how consumers are increasingly being offered a much wider choice of 3G handsets at a broad range of price points.
 
“We believe this highly-capable device will help open up a new market for 3G phones and drive further interest in mobile multimedia services across the world,” says Craig Ehrlich, Chairman of the GSMA, the global trade association for mobile operators, and a board member of Hutchison Mobile Communications, which is sponsoring the project. “By focusing 3G handset makers on a much broader base of potential customers, this programme will have a significant and lasting impact on this industry.”

Comment | Forward to a Friend 

Nokia taps in to booming Indian mobile TV market with world’s first DVB-H handset

Tapping in to the boom in mobile content services in India and Asia, Nokia has launched a new N-series multimedia handset designed specifically to support live mobile TV services in the region.

The N92 is the world’s first DVB-H enabled device and is first off being rolled out to accommodate live broadcast mobile TV services from public broadcaster Doordarshan in Delhi. The service currently comprises eight Free-to-Air Doordarshan channels including DD National, DD News and DD Sports supported on the DVB-H compliant handset.

According to industry figures, mobile content in India is likely to contribute to about 30 per cent of the revenues for the broadcasters. The mobile phone market in the country is also expected to touch a whopping 348 million by 2010.

“With growing popularity of mobile devices and its capability to offer instant access to information and entertainment, this initiative will bring in the perfect synergy between television content and the mobile platform," says Nokia Director of Multimedia in India, Vineet Taneja.

“The total TV viewing audience in the country currently stands at 437.8 million. Nokia has also supported the launch of Mobile TV services across several countries, including commercial launches in Vietnam and Finland. The test results from these markets clearly indicate an outstanding demand for Mobile TV services and outlines India as one of the leading countries in Asia to deploy live Mobile TV thereby equipping the Indian consumers with their favourite programmes 'on-the-go', he says. 

Comment | Forward to a Friend

Secondary Asian markets using content to build customer loyalty

TThe content revolution is starting to gain momentum in less developed markets with Spice Nepal (SPNL) in Nepal and Applifone in Cambodia signing deals to use Celltick's LiveScreen Media to turn the mobile handset into a personal, targeted, billboard for content.

Both Spice Nepal and Applifone are using the service to attract new subscribers and differentiate themselves in an increasingly aggressive market. Spice Nepal, known by its MERO MOBILE brand, is focused on achieving the number one spot as leading operator in the Himalayas. 
 
The platform enables them to bring relevant content to subscribers’ attention by streaming interactive messages across the idle-screen. This bypasses issues of search and discovery allowing subscribers to ‘find and buy’ content in two clicks rather than the industry average of 12 to 15. Content teaser messages are interactive and include news, sports results, TV and celebrity gossip as well as weather reports.

“The Asian market is one of the most competitive and it is vital that operators keep subscribers loyal with engaging and exciting new content services,” commented Stephen Dunford, CEO Celltick. “While both Spice Nepal and Applifone are initially using the idle-screen as a means to promote their own content portfolios, there is a key opportunity to use the service as a mobile advertising platform moving forward. We are already seeing LiveScreen Media marketing implementations in areas such as Thailand. Asia is leading the way for rest of the world with these innovations.”

Comment | Forward to a Friend

BBC brings together mobile UGC and P-TV on iPoint platform

Bringing together the lucrative mobile content services of user generated content and participation TV, the UK’s BBC has become the first broadcaster to implement iPoint’s goliveTV platform, using it to develop a ‘have your say’ viewer call in show.

goliveTV is an advanced converged broadcast media solution, supporting the complete lifecycle of user generated content, from content collection via MMS, SMS, Email and live 3G and PC video calling, to content management and moderation, through to publishing across multiple media channels, including the WEB, mobile, and TV (live participation). goliveTV can receive user generated content from any broadband device (PC, 3G mobile, Video phone, and regular mobile phone), classify and tag the content items, screen live callers, and send live callers and stored content on air.

From a business perspective, goliveTV can increase revenues, ratings and branding opportunities beyond current SMS voting approaches to participation TV. Its innovative approach to participation TV allows the creation of new and highly attractive TV show formats as well as the development of viewer communities. Through its support of multiple business models, including the use of mobile devices for content generation and consumption, charge per access, ad sponsored content and others, broadcasters can enhance low margin SMS participation with high volume video calling for both content submission and viewing.

Joseph Daniel, iPoint-media VP Sales & Marketing, says that “Viewer interactivity and user generated content are essential for broadcasters as they compete for viewer attention and retention. goliveTV is the first converged media solution enabling TV broadcasters to effectively utilize all forms of live and recorded user generated content in order to create new and innovative TV show formats.”

With the growing convergence of web, mobile and TV, broadcasters increasingly face new technological challenges connecting multiple types of media. iPoint-media combines its best of breed solution with a flexible business proposition, offering goliveTV as a managed service, allowing broadcasters to focus on their core business, rather than technology, while reducing their total cost of ownership. 

Comment | Forward to a Friend

The marriage of VoIP and wireless technology has gained a lot of attention in the last couple of years, with many industry experts believing it to be the next killer application to revolutionise the telecoms space.

ContentFutures.com is a publication of Juniper Research Limited

Sign up today: http://www.contentfutures.com/subscribe.htm

We have sent this mail to you because we believe you will find it to be of genuine professional relevance. If however you would rather not receive emails of this nature from ContentFutures in the future, click here to remove yourself from further mailings. If you have any problems removing yourself from this list or wish to report any unwanted emails please contact marketing@contentfutures.com