The lure of wireless Internet promises to transform the worldwide mobile industry. Carriers across the globe are risking it all on the future potential of the mobile Web. The difference between reshaping the wireless experience as we know it-and in the process realizing joyous profit margins-or discovering the mobile Internet is just a pipe dream will most likely come down to content.
Carriers are paying big for licenses, network buildout, marketing, and the mergers and acquisitions necessary to succeed in the new mobile environment. However, the real deciding success factor could be how a carrier’s wireless Internet offering truly benefits a user.
In Japan, 60 percent of wireless Internet use is for entertainment. Business users are just now beginning to realize the benefits of iMode and other wireless Internet services. I suspect the percentages of entertainment use versus business use will vary around the world-by region and even country. Japan’s love of wireless games and cartoons will not be replicated in every global market. The key for carriers is to determine what the users in their markets want and expect.
A few innovative wireless Internet applications include personalized audio, location tracking and interactive games. But a basic, reliable e-mail service could be a carrier’s defining wireless data offering.
Orange is placing its bets on Ananova, the animated female newscaster with blue-green hair who offers
real-time news updates online. The U.K. operator recently purchased Ananova Ltd. for 95 million (US$142.5 million) to boost its wireless Internet content. Other carriers are lining up partnerships and agreements with content providers to enhance their services. In most instances, carriers have the upper hand when negotiating agreements and can potentially establish additional revenue streams by charging content companies for premium space within their services.
A big part of a carrier’s success will be in how it convinces users they need wireless Internet. Many current voice subscribers cannot imagine why they need to receive a real-time stock quote. But maybe accessing their daily horoscopes makes complete sense.
Competition promises to be fierce. Major content providers are even contemplating jumping into the service provider role. One major infrastructure provider said it has been approached by content providers about partnering to bid on spectrum licenses. That model most likely would not pan out, due to vendors not wanting to alienate their current customer bases, but it demonstrates the high number of potential players in the wireless Internet game.
The one obvious success factor is based simply on the ability to get information. Subscribers expect easy access to what they need when they want it. If users cannot get it from one carrier, they will find it in another.
Speaking of content, many Global Wireless subscribers are keeping up to date on international wireless announcements via our new Web site at www.globalwirelessnews.com. The site has free weekly mobile news, updated each Friday and organized by geographic region. Global Wireless correspondents, who are based around the world, provide the in-country reports that make the site a comprehensive one-stop shop for global wireless news.
