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Submitted by Mike Grenville on Thu, 01 Nov 2007 15:17 |
Messaging and MMS in particular could hold the key to the mobile internet. Rather than trying to mimic the internet, operators should make the most of the unique advantages they have says Acision.
Operators looking to profit from mobile internet must focus on enhancing existing internet applications and communities with made for mobile capabilities and multi-channel access, according to an expert panel polled by messaging company Acision last week in London.
Over two thirds of the panel, comprised of senior representatives across the telecoms industry, believed that the most lucrative operator mobile internet strategy lies in augmenting the fixed internet experience with mobile capabilities such as location, immediate access and unique customer identity.
MMS As A Distribution Channel
The panel also favoured a cross-channel access approach to mobile internet, with 24 per cent advocating leveraging SMS and MMS to increase revenues. MMS in particular is seen as a multimedia distribution channel for internet-originated commercial content as well as user-generated content, with 58 per cent believing this to be its biggest value-add. Only 15 per cent believed that the future of MMS is restricted to P2P multimedia sharing.
Tom Veldman, Product Marketing Director at Acision said that "our questionnaire was around the role for mobile operator. The mobile market is maturing in many parts of the world and it is no longer just an acquisition play. Years ago they were set up to flourish in a growth market. In Latin America and parts of Asia there is still room for that approach, but in others they need to differentiate on service rather than just price. They have been focusing on one price fits all for voice/SMS/MMS."
"The internet has many niches and communities for those that want it. But also the revenue is often indirect rather than direct" said Veldman. "Acision believes that if operators can shift their mindset there is an opportunity. Firstly don't look at internet brands such as Google as a threat but partners to enhance mobile."
"Last year there was doom and gloom for operators now that the internet has arrived but now they are looking at the opportunities. Industry experts are in close agreement," he said. "Operators have a golden opportunity to boost revenues with the mobile internet but the right strategy is crucial. A holistic approach will be key - operators should maximise their value-add by leveraging the entire mobile ecosystem at their disposal, from location based services to SMS interactivity. Revenues will come directly from the customer through usage of mobile internet services, but operators can also expect indirect revenues from internet brands that are keen to increase interaction with their users by mobilising their offerings."
Too Rich Content
Veldman agrees that the days when the death of SMS was predicted in the face of rocketing usage are well and truly over. "The trap a lot of people in telecoms fall into is that as MMS is richer so people will like it even more"! he said. "But it is more about value add. No one says voice is going away so why would text."
MMS is not as simple or as casual as SMS, it is used for communications and chitchat while MMS is more about expression and passing a piece of content to someone. It has its place in the scheme of communication services but MMS is a bit more complicated and expensive so needs to have an objective.
MMS To Mobilise Internet Services
One way we believe MMS will be successful is to mobilise internet services. For example with eBay when you sit behind the PC you can see and bid, but if want to bid for a certain product some people spend hours behind the PC so as not to miss an item when it becomes available. Mobile messaging can give value to people on the move by sending an MMS alert when it comes online. The mobile network could even send you messages based on your location.
Mobile Value Add
Rather than trying to mimic the fixed internet, the mobile industry should see how we can add value. Another example is the always online capability but also the ubiquity of SMS. By making a link with SMS, all Instant Messaging networks can be connected.
SMS and MMS are standard communication channels and now it is time that operators build value on top of that by using the unique information that they have. They need to think more like supermarkets and offer different types of services.
3 Understanding MMS
MMS is mostly event driven and there are big increases around Xmas and fireworks. Among the operators Veldman points to 3 who has understood MMS best. He notes that 3 use MMS as a promotional tool as a free promo clip service. now and again the clip includes a particularly attractive colour video and there is an immediate spike in traffic as people forward it to their friends.
As further evidence Veldman points to SeeMeTV where people can upload short video clips by MMS and it is then made available to all the other 3 users as paid content for 20p with the author getting a kick back fee.
Veldman also highlighted O2 as not treating SMS/MMS in isolation but approaching the messages across the channels.
MMS Finds Its Place
After a slow start, MMS traffic is growing with double digit growth everywhere, even Norway which was the first country to launch MMS and where it is three times the European average. In terms of numbers, MMS is never likely to catch SMS. Launched as a peer-to-peer messaging service before it was ready, it now looks as though MMS is finding its place in the range of mobile messaging options and could hold the vital key to making the internet a success for mobile operators.
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