They go by all sorts of names-clearinghouses, hubs and gateways-and they represent companies’ attempts at nailing down the precise formula for a business model aimed at nurturing the wireless Internet marketplace. This business model, the companies say, will tear down the wall between carriers and content providers and-ultimately-pad the wallets of both.
In essence, companies such as Wmode, Pinpoint Inc. and TSI Telecommunication Services Inc. are offering carriers and content providers a kind of virtual mall. In this mall, wireless content providers can set up shop and distribute their wares without having to make tedious and often costly deals with each and every wireless carrier. Instead, they can simply sell their goods and rely on mall security to tackle the administrative functions. And carriers benefit by being able offer their subscribers an entire mall of content without having to develop and maintain business relationships with each and every store.
This mall-style business model contquot;A lot of carriers have recognized the benefits of a clearinghouse-type business model.”
Other companies echo Wmode’s assertion.
“There are a variety of operators interested in this,” said Lisa Huetteman, director of business development at TSI.
TSI last week released its Mobile Data Services suite of products, which includes a mall-type setup for wireless carriers and content providers. TSI’s suite includes services to document agreements between both parties and tests to assure quality of service. The company also tracks content usage and bills accordingly. And beyond the mall-style offering, TSI offers short message service consolidation and GPRS network roaming services. Company executives said all of the suite’s services will be commercially available next year.
“It’s really creating a virtual roaming environment for the subscriber,” Huetteman said of TSI’s Mobile Data Services.
Before TSI’s mall-style service is accepted, Huetteman said, carriers must change their just teamed to create a mobile gateway for carriers and content providers in Europe. The mobile interactive gateway, dubbed MIGway, will start with SMS applications and then expand into other types of mobile Internet content. The goal is to give carriers and content providers a streamlined way to set up business deals.
Other mall-style offerings include Pinpoint’s Fuel platform, which gives pricing control to content providers and charging control to carriers. Content providers can decide which applications should be free and which should cost, and carriers either can eat that cost to offer free content or can pass it on to subscribers. AirMedia in February introduced its Wireless Hub, which it describes as a “business-to-business online marketplace,” where content providers can publish and sell information and carriers can select and buy content.
And the list goes on.
But while these mall-style companies continue to laud the value of their offerings and boast of their continuing negotiationpanies start bagging carrier business deals, then their business model will be validated-and not before.
“This is a bunch of visionary nonsense,” he said.
