MONTEREY, Calif.-Wireless data industry leaders met in Monterey, Calif., earlier this month to discuss further actions needed to capitalize on the momentum the long-fledgling market has been able to create recently.
At a welcoming reception, Starfish Software President and Chief Executive Officer Philippe Kahn was the first to identify the solutions that became the theme of the week-innovation and infrastructure.
It was perhaps fitting that the beautiful coastal town played host to two conferences, each focused on those themes. The Wireless Data Forum, now a subgroup of the Cellular Telecommunications Industry Association, concentrated on efforts needed on the infrastructure side during its member meeting at the beginning of the week. For innovation, Zsigo Wireless Data Consultants Inc. held its WirelessDeveloper ’99 show to close the week.
Both shows included speakers and panelists not directly associated with the wireless data industry, heeding complaints that for too long, the industry has been talking to itself rather than those needed to spur its growth.
In that vein, representatives from various Internet portal companies and content providers who attended told the wireless data folks just what they expected in order to go wireless. On the WirelessDeveloper end, many applications developers attended who knew nothing of the wireless industry, which provided industry leaders a chance to introduce their services to the computer industry.
Compelling content is the means to sell network airtime, attendees said, but more ubiquitous coverage is needed for that to occur.
“There needs to be someone to create the value for wireless data like HBO and CNN did for cable,” said Kevin Compton, general partner at venture capitalist firm Kliner Perkins Caufield & Byers.
This is why carriers are looking to Internet portal companies for assistance. Personalized Web portals like Yahoo! and Excite already have subscribers who have personalized the information through filters. To further personalize service, portal providers would like to extend their services to a mobile environment.
So the two need each other-the wireless carriers need the portal companies’ content, and the portal companies need the wireless carriers’ means of mobility.
However, three things are needed before content services will attract the mass market: a network that supports both voice and data, data-enabled devices, and money to educate the customer via marketing.
Not all voice carriers have committed to offering data services. These carriers are accustomed to selling voice to a mass market, and won’t sell data until they’re convinced there is another mass market for it.
Opponents of this view say carriers have to grow the market. But carriers don’t want to cultivate the market. They want it now.
At issue is that most wireless data applications are vertical in nature while carriers’ interests are in the horizontal market.
“I’m saying find a business model and make money today, not three years from now,” said Konstantin Zsigo, president of Zsigo Wireless. “I’m saying make money in the vertical space while developing for the horizontal space … don’t build demand before there’s the infrastructure.”
The idea of getting Internet content wirelessly is not heavy on the consumer’s mind at this time, analysts say, because carriers have done little to educate them on the possibility.
“I don’t think we’ve done a very good job at all at promoting our service,” said Steven McCrudden, director of business development at Omnipoint Corp.’s Multimedia Services unit. “It has nothing to do with data or information services. This is a marketing problem.”
The awareness problem stems from the fact few carriers have made any effort to launch content services. Analysts say carriers are too conservative, withholding deployment until several trials and market studies are completed. Meanwhile, four new Web sites come along and gain millions of subscribers.
“Set something up right now,” said Alan Reiter, president of Wireless Internet and Mobile Computing. Launch a content service commercially and see what happens; otherwise the market will pass you by, Reiter commented.
Analysts suggest content providers like CNN may benefit from the early promoting.
In the early days of cable, people who wanted MTV were asked to call their local cable operator and say “I want my MTV.” CNN has a customized news service available on the Web now. CNN can add a link asking customers to call their paging/PCS provider and demand to them “I want my CNN.”
