BOSTON-According to a new report by Ovum, potential mobile e-commerce providers should provide unique and compelling services, rather than hype about new technology that is purported to change the world, if they want to reach the buying public.
Duncan Brown, co-author of the report, “Mobile E-commerce: Market Strategies,” noted, “It’s debatable whether ordinary consumers are actually demanding mobile e-commerce services right now. It’s more a case of suppliers sensing an opportunity to make money, and pushing an idea at them.
“Business users, rather than the mass market, will be the first serious adopters, but even they won’t pay a premium for existing services, which are easier and cheaper to access using the phone or a [personal computer],” Brown continued.
The report noted that the current climate has all the frenzy, uncertainty and ill preparedness of a gold rush. Companies need to avoid investing in applications, which sound impressive on paper but do not attract user take-up.
“Potential mobile e-commerce players have to realize that at this point in time, good substitutes for their services already exist-it’s only the delivery method that has changed,” Brown noted.
Ovum warned that the barrage of operator marketing and media coverage hyping technologies such as Wireless Application Protocol has left many believing that shopping via a mobile phone will be a reality within the year.
“The industry hasn’t even agreed on a framework for trusted and secure payments yet, let alone standardized its technology,” Brown said. “It’s just not going to happen until these big questions are answered.”
On the bright side, the report did note that if the market fulfills its promises, end-user spending over wireless devices could rise to more than $200 billion by 2005.
