HELSINKI, Finland—Norwegian telecom operator Telenor’s competitors in Scandinavia are puzzled by the Oslo-based operator’s decision to price at the high end for multimedia messaging services (MMS). Telenor intends to charge MMS users a price of US$1.40 to send images and pictures via their cell phones. The market had hoped Telenor would pitch prices of half this rate.
The telecom industry in Scandinavia is manifestly concerned that the high-end charge structure will discourage take-up of MMS services and nullify the market for such services before the technology gains wide acceptance.
“Charges as high as US$1.40 are certainly on the very high side. The MMS market will be driven by the under 20s. We need to foster this side of the market, not alienate it. It is important to remember that there is so much one can charge to a market segment which has limited disposable income,” said Tele2 Chief Executive Officer (CEO) Fredrik Berglund.
Nordic operators such as Europolitan Vodafone and Telia are playing a wait-and-see strategy before committing to price frameworks for MMS. Few operators want to be the first to market with MMS until there is sufficient MMS-capable cell phones on the market.
Telenor, through its subsidiary Telenor Mobil, is the first mobile operator in Norway to launch MMS. The initial technology will allow for sending text, drawings, photographs, sound and short animations.
To attract users, the company designated 12 April to 1 May as a “free-for-all.” During this period, Telenor Mobile users will be able to send MMS messages at no cost. The US$1.40 charge will then apply for each unit image, photo or animation sent after 1 May.
The service is available for all Telenor Mobile customers with MMS-enabled handsets. During the trial period, customers are given access to the service by sending an MMS message to Telenor Mobil. Using the system, it will be possible to send holiday snapshots directly to a friend’s mobile phone.
“We have chosen a single price rate regardless of how much data the message contains and regardless of the customer’s subscription base. We believe that sending a multimedia message should be as straightforward as sending a text message,” said Telenor Mobil’s Esben Tuman Johnsen.
Telenor Mobil will offer MMS content services via both the telenormobil.no and djuice.no portals. After 1 May, mobile users without MMS-enabled handsets will instead receive regular text messages. They can then log on to Telenor Mobil’s Internet site and view the messages there. It will also be possible to send MMS messages from these pages.
In March, Telenor Mobile’s mobile Internet service provider Djuice entered a partnership agreement with Walt Disney Internet Group (WDIG) that will bring Disney-branded content, including MMS, to the Scandinavian mobile market for the first time.
Under the distribution agreement, Disney Mobile content, including logos, ring tones, wallpaper screens, electronic greeting cards and games, based on Disney’s popular characters, will be available to Djuice mobile users in Norway, Sweden, Denmark and Finland. Djuice will launch the Disney offering in May.
“Disney’s SMS (short message service), WAP (Wireless Application Protocol) and future MMS services will be essential in Djuice’s portfolio of services, including sound, picture and text for the Scandinavian market. With the implementation of 3G and mobile devices with color screens, the Disney Mobile services will be optimized,” said Jon Erik Haug, Djuice’s managing director.
