SAN FRANCISCO-Act now! GSM carriers need to deploy wireless data today, speakers told Global System for Mobile communications operators at last week’s GSM in North America conference here.
Carriers need to get data applications into the hands of consumers before next-generation data-centric networks come along, namely General Radio Packet Services, or GPRS, networks.
“You have to whet the appetite of the user,” said Peter Reinisch, vice president of marketing communications and public relations with Siemens AG. “There is no reason to wait. Operators who go for new, value-added, nonvoice services now have a real chance to position themselves properly to become a premier league player for tomorrow.”
The possibilities for wireless data services running across packet-based networks in the future are endless, ranging from personalized maps to instant account status to custom advertisements.
Reinisch encouraged GSM operators that haven’t done so to begin heavily marketing short messaging services as a way to get a number of services like news and sports highlights into the hands of users and stimulate more airtime. Some operators in Europe attribute 30 percent of their revenue to SMS service, he said.
Wireless Application Protocol handsets also will help achieve early market success by allowing Internet access. North American wireless operators are in the process of upgrading their networks to comply with the WAP standard.
“Network operators have to build new competency,” said Steve Ballard, director of messaging and service platforms with Nokia Mobile Phones. “They must execute quickly. Thanks to Sprint PCS (which launched Web access services in September), competition has accelerated, and the time to act is now.”
Conference attendees also heard urgent advice from content provider Reuters Wireless Services, the world’s largest news and TV agency, which already offers SMS content through European partners such as Spain’s Movistar and Telecom Italia Mobile. The agency is looking for new paid subscribers through new distribution alternatives. Wireless is one alternative it seriously wants to pursue, and Reuters is ready to offer its own services via the wireless Internet.
“Operators and content providers should be talking more,” said Paul Kitchen, marketing manager with Reuters Wireless Services, who noted he was the only content-provider representative at the conference. “Make alliances now with content providers.”
One issue carriers will have to address with content providers is how to compensate one another, said Kitchen. Reuters won’t pay to put its content on devices nor will it offer content for free. The agency today is testing subscriptions from end users, and it’s not clear if operators are willing to pay for the content, he said.
“Until there is advertising, revenue sharing is out of the question,” said Kitchen. “We can hope people respect our brand and will share the revenues. We won’t be providing our content for free.”
While the industry debated earlier this decade whether demand for wireless data exists, today there is no doubt, said Pacific Bell Wireless President and Chief Executive Officer Bob Shaner.
“We struggled with CDPD early on,” said Shaner. “We had more questions than we had answers, and we chose not to deploy it. Then in the spring of 1993, we began seeing the stars align. There appeared out of nowhere a strange news story-it was called the Internet. Now the forces of the Internet are behind us … We’ve been walking around with shackles offering only voice.”
Because of the Internet’s widespread adoption, carriers shouldn’t worry about which applications they provide, said Nokia’s Ballard. “All we have to do is educate the consumer on how to access the wireless device,” he said. “Don’t get caught up trying to market CNN vs. ESPN. The customer already knows what they are.”
Hence, familiar applications today should account for more than 80 percent of the mobile data service revenues by 2002, said Siemens’ Reinisch. According to the vendor’s user surveys, customers are most interested in e-mail, fax and voice-mail services, location-dependent services, online banking, Web browsing and simple information services.
