NEW YORK-“If they build advanced networks and better devices, mobile commerce will fly.”
That’s been the resounding incantation from m-commerce hopefuls in the wireless industry to date. The reason mobile commerce hasn’t taken off yet is because the networks are way too slow and the devices aren’t exactly stellar, they argue. Once 2.5- and third-generation networks are up and running, and cool, speedy devices are introduced, consumers won’t be able to help themselves-and the mobile commerce revolution will begin.
Not quite, says Jupiter Media Metrix.
“The blame (for consumers’ lack of interest in m-commerce) was continually placed on slow networks and poor devices,” said Dylan Brooks, a wireless analyst with the research firm. The real problem, however, is that “you’ve got to overcome the consumer apathy and their uninterest.”
The firm’s findings, “Mobile Commerce: Profiting Despite Consumer Apathy,” flies in the face of many recent m-commerce studies, including ones from Nokia Corp. and others. Brooks said consumers must first get used to wireless devices and the potential for wireless technology before they can commit to wireless purchases.
“Consumers need to get comfortable using a new medium before they begin conducting transactions,” he said.
And this will happen eventually, Brooks said, creating a $4 billion industry by 2006-but that’s not where the real money will be made. According to the report, wireless technology will influence almost $40 billion of shopping on the wired Internet and in brick-and-mortar stores through features like location-based shopping research and wireless promotions.
