It’s as if the dotcom boom and bust never happened – this bubble seems ready to burst. I
agree there is some need, but think there has been very pointed exaggeration of the need
for internet access around the clock, and on top of that the willingness to pay for it. And
that is the critical issue when you create a business plan.
He also noted that ‘The usage rates of wireless Lan have been appallingly low’. He
cites the case of Amsterdam’s Schipol airport, through which 41m passengers pass every
year, but where there are only a dozen Wi-Fi hotspot users a day. Other hotspot opera-
tors confirm, in private, that they see similarly low usage numbers.
Despite the media hype about public wireless networks it appears as if the main appli-
cations for wireless networks are at home and at work.
Some marketers are now considering Bluejackingwhich involves sending a message
from a mobile phone (or other transmitter) to another mobile phone which is in close
range via Bluetoothtechnology. It has potential for: (1) viral communication; (2) com-
munity activities (dating or gaming events); (3) location-based services – electronic
coupons as you pass a store.
Whether WAP, I-mode or other forms of phone are used, users can now surf or browse
specially built sites, extending the 5S benefits derived from web sites, although con-
strained by the smaller screen and limited graphics.
Now we’re moving into location-based marketing where customers receive messages
on their mobiles relevant to their geographic location (whether passing a store or arriv-
ing in an airport).Current levels of usage of mobile commerce
Mobile commerce (m-commerce)refers to the use of wireless devices such as mobile
phones for informational or monetary transactions. Levels of product purchase by
mobile phone have proved very low in comparison with the Internet, even for standard-
ised products such as books and CDs. Many m-commerce providers such as Sweden’s
M-box went into receivership. However, analysts expect that with new access platforms,
such as 3G (third-generation mobile devices which will have higher access speeds offer-
ing video transmissions), this will change. Consider the example of travel, which is the
leading e-commerce category in Europe by revenue for the fixed Internet.
IT Week(2005), quoting a JupiterResearch report, estimated that although in 2004 there
were 5.1 million 3G devices, by 2010 this would increase dramatically to 184 million.
The Japanese experience with i-Modesuggests that with suitable access devices cou-
pled with the right content and services that support colour images, the impact of 3G
could be significant. Mobile phone ringtones and other music downloads are the most
popular i-Mode purchase, followed by other paid-for information services. The strength
of the proposition is indicated by the fact that over 30 million Japanese were using this
service despite a launch less than two years previously. The i-Mode service has now been
launched in Europe.Strategies for mobile commerce
Different types of strategy can be identified for two main different types of organisa-
tions. For portal and media owners the options are to migrate their own portal to
WAP/SMS (the option followed by Excite and theGuardian) or to partner with other
WAP portals and provide content for these. Revenue models may include sponsorship or
subscription for individual content items or on a subscription basis. Options for adver-
tising are also being explored – http://www.247europe.comis one of the first companies to
offer WAP-based advertisements. For destination sites such as banks and retailers, the
options available include:CHAPTER 3· THE INTERNET MACRO-ENVIRONMENT
Bluejacking
Sending a message
from a mobile phone or
transmitter to another
mobile phone which is
in close range via
Bluetooth technology.
Bluetooth
A standard for wireless
transmission of data
between devices, e.g. a
mobile phone and a
PDA.
Mobile commerce
(m-commerce)
The use of wireless
devices such as mobile
phones for
informational or
monetary transactions.
I-Mode
A mobile access
platform that enables
display of colour
graphics and content
subscription services.