The World Will Run On Mobile Internet

The telecommunication industry is witnessing a new force - the galvanisation of mobile technology and the Internet with broadband services to form the vIobile Internet.

Over the next two years, people rom around the globe will be using mobile communications as part of their everyday lives. It has already become a way of life for users in Japan and Europe - for communicatmg with others; for accessing the Internet and inranets; and for leisure and education. By 2005, the same pattern will have emerged in the US. This will take the tally to an estimated 1.2 billion mobile users globally : 750 million forecasted data users, easily outnumbering the predicted 670 million wired, Internet users'.

 

In all three regions (Europe, Asia Pacific and US), there will be nore wireless connections to the Internet than fixed. In response, many mobile operators will need to transform themselves from voice centric network carriers to data centric service providers.

As a result of the massive increase in web enabled mobile terninals, the majority of e-business transactions, business or consumer, will originate or terminate in a mobile device. This simple hange will have a fundamental impact on the business models of elcos, lSPs and content provlders.

"In 2005, there will be about ne billion mobile phone subscribers, and a substantial portion of the phones sold that year will have multimedia capabihties."

It will have an equally large impact on every organisation that ants to transact business in the new economy. This economy is nown as the Mobile Internet World.

Over the last decade, globalisation, the explosion of the Internet and convergence across (cos, computing and the media have caussd massive changes in professional and social lifestyles. We can access information, shop and bank online, work from home, and speak and send messages via mobile device throughout much the world.

In fact, current data shows that the Mobile Internet revolution has already begun. The explosion of the Internet and intranets in the fixed world is driving the demand for mobile data services.

* Of current mobile traffic volume, 3 per cent of second genera tlon mobile phones already offer basic data services. By 2003, more consumers will access the web via mobile phones than by PCs.

* Currently, several European countries have more mobile phones than fixed lines.

* In Finland, 8 per cent of mobile traffic is non voice.

* Existing technology now being deployed provides bandwidth far in excess of those offered on today's telephone networks. Currently, data amounts to over 50 per cent of traffic on these net works:

* The market for m-commerce in Europe alone is estimated to be worth Euro23 billion by 2003, compared with a mere Euro300 million in 1998.

Looking to the future of the success of the Mobile Internet appears set to continue.

* The popularity of wireless devices for voice communications and the subsequent substitution of fixed phones will accelerate the adoption of broadband mobile services.

In the next decade, the number of mobile users is predicted to quadruple at the same time as voice usage will triple.

* Mobile Internet-enabled laptops will free people from their desks creating mobile offices, mobile application hosting and mobile ecommerce, or 'm-commerce.'

For operators to succeed in the Mobile Internet world, they will need to not only adopt new busi ness models but more importantly, forge new relationships with customers and vendors alike.

In the Mobile Internet world, 45 per cent or more of traffic revenues will be non voice. The business focus for operators will need to rapidly shift from voice centric, circuit switched providers of products to data centric, IP based ser vice providers. Not all will successfully make the transformation.

As a result, a number critical success factors will govern the survivors:

* The ability to transfer risk, particularly technology and implementation risk, to those best able to manage it.

* The ability to develop innovative end-user applications rapidly to gain first mover advantage.

* The implementation of stateof the-art self service operating and business support systems.

* Get to market first' ambition armed with the right services aimed at the right customers.

* Decreasing cost of operation utilising zero-touch customer care.

Providing not only transport, but creation, aggregation, and personalisation of content and information.

To achieve this, the telecom munications industry will need to develop a new approach in its relationships with operators, vendors, content providers and ser vice providers.

What are the global market trends ?

In the developed world, growth will be driven by the dexnand for, and convenience of, Mobile internet services. While in developing countries conversely, the lack of an alternative fixed network means wireless broadband networks (whether mobile; satellite or fixed wireless) may offer the only means of communications. However; each of the major regions are at different stages of readiness for the explosion of Mobile Internet services:

Asia Pacific region: Japan, Australia, Hong Kong and Singapore are by far the most ready markets for wireless data in the Asia Pacific region. Most car riers and mobile service providers have developed their Mobile Internet strategies, and are currently aligning with necessary partners, developing affiliate programs and building up their application portfolios.

The Japanese market, with over four million wireless Internet users, is the world leader in narrowband wireless data.

USA : The USA has suffered from multiple standards but the adoption of a single third generation (3G) standard will create the

platform for a true nationwide Mobile Internet service. Mobile penetration is currently 30 per cent, relatively low compared with other regions. However, it is predicted that in the next two years, 80 per cent of mobile phones will have mobile data capabilities. The rollout of Nextel's IDEN-based high sped mobile network may finally cause analogue cellular operators to realise that the Mobile Internet age has arrived.

Europe : The 'mobile data wave', although a global trend, has surged ahead in Europe. European markets are currently one to two years ahead of most of the world, with only Japan offering more advanced services. Currently, 117 million Europeans have mobile phones, most of them digital and three countries (Finland, Spain and UK) have already awarded 3G licences. At the moment, Finland has a mobile penetration of 70 per cent, with users shopping via wireless terminals. And in several countries including Finland, Austria and Italy, mobile customers out number fixed the line subscribers.

Mobile transactions services are already on offer with the ability to purchase a range of services from banking, to chocolate bars and car washes via a mobile phone.

The world is moving towards a mobile online economy- the explosion of the Internet, intranets and other information services in the fixed world is driving the demand for data services. Similarly, the popularity of wireless devices for voice communications and the subsequent fixed wireless substitution will strengthen the market adoption of broadband cellular ser vices.

* The market demand for mobile broadband services has been rising, and will continue to rise, due to a shift towards multimedia as data rates increase, improvements in handset technology continue and access tariffs decrease.

* Internet access will become free with revenue based on advertising and comntission from ecommerce.

* Lifestyle trends include the growing demand to always be contactable and the eniergence of the mobile office.

* Increased work-related travel and Working hours will lead to more efficient use of leisure time.

* More widely dispersed social activities, friends and families will

aIso demand continued access to mobile communications.

* Personal security awareness will lead to a need for communications-based solutions such as vehicle breakdown callout services.

What applications and services will generate value ?

The mobile phone is moving away irom solely'a telephony device, and toward a role as a unique 'Personal Identifier and Assistant.' It is only a matter of time before everyone and everything becomes 'connected'.

Broadband capacity allows operators to differentiate across a wider range of service attributes. In parallel, end users are increasingly demanding interactive data applications. Application or service dimensions such as guaranteed quality of service, security, personalised content, location sensitivity and consistency of presentation across a range of access devices will be the new differentiators. The Mobile Internet offers a range of applications for various user groups.

Lifestyle applications are broken down into three separate customer segments.

* The 'Lost Traveller' who requires local information and directions' for services such as hotels, restaurants or entertaintnent.

The 'Time Poor' leads a busy life conducting maintainance transactions (shopping; bill payment, ticketing and administration) when mobile.'

*The Socialites' are demanding of data services for interactive media and messaging.

Segment Applications aliow a quicker and more efficient method of updating between mobile wdrkers (technicians; sales people, maintenance workers and couriers) and their base.

Mobile Pirofessional Applications allow professionals to combine the functionality of their desktop with the advantages of timeliness, location, flexibility and mobility 3G will ~reate a new generation of service professional, unchained from the desktop with LAN like functionality while on the move.

* The organise function will facilitate real time synchronisation and notification of address books and calendars.

* Company intranets, e-mail, knowledge management systems and extranets, will be available on the move, on an "always'on" basis.