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MOBILEPENETRATION IN THEUNITEDSTATES ANDEUROPE 851Table 1Summary of Key Wireless TechnologiesWAP Wireless application protocol
i-Mode A wireless service launched in Japan in spring 1999 by NTT DoCoMo. The
service is accessed by a wireless packet network (PDC-P), and the contents
are described in a subset of the hypertext markup language.
GSM Global system for mobile communication
GPRS General packet radio service
UMTS Universal mobile telephone system (third-generation telecommunications
system based on wideband code division multiple access)
Wireless LAN Wireless local access network
WCDMA Wideband code division multiple accessSource: Nokia (http://www.nokia.com).refers to the exchange process (i.e., buying and selling)
that is carried out by wireless means (e.g., mobile phone,
m-commerce, wireless Internet, or any handheld wireless
devices).Major Services Are Provided by
Third-Generation Technologies
The advancement in third-generation (3G) technology
brings additional benefits to consumers. Multimedia func-
tions of 3G consist of several media components which
allow wireless delivery of video clips, still images, and
music. It can be “interactive and distributional” (i.e.,
users may have subscribed to certain distributional ap-
plications, and receive only those subscribed services).
The maximum speeds of GPRS can reach up to
171.2 Kbps faster data transmission speed or download
time. So GPRS enables interactive visual display (i.e.,
MMS [multimedia message service]) and enhancing com-
munications quality.
Besides these benefits, 3G technologies deliver the fol-
lowing value-added wireless services as well:- Internet access (e.g., users can download ring-tones,
music, cartoon characters, real-time events) - Location-based application (e.g. users can send promo-
tional messages to specific groups of customers) - Simple games (e.g., users can play card games and
crosswords)
Factors Influencing Adoption of Wireless
(or Mobile) Internet
The decision-making process is complex, and there is no
perfect formula to explain customers’ purchase behavior.
An industry report published by the International Tele-
communication Union (ITU, 2002a) in September 2002
reported that the adoption of mobile Internet service
might be due to the following factors:Application of mobile multimedia services such as video
clips or still images, video, and music through 3G tech-
nologies
Availability of Internet-enabled handsets with affordable
prices“Unrestricted and nonproprietary” mobile Internet con-
tent
Simple billing systems or models for both voice and data
transmission servicesMobile communication and Internet access have been
the key drivers for consumer telecommunications services
in recent years. In 2002, the ITU (2002b) indicated the top
20 mobile and Internet markets worldwide (Table 2).MOBILE PENETRATION IN THE UNITED
STATES AND EUROPE
e-Marketer reported the interactive survey conducted by
Telephia and Harris (Figure 1). The survey indicates that
Greenville had the highest mobile phone’s penetration
(i.e., 71%) among 35 major U.S. cities by December- It is closely followed by St. Louis (69%). Forrester
Research study in March 2002 reported that Finland,
Norway, Sweden, and Italy have highest mobile penetra-
tion (Figure 2).
Marketing Opportunities and Wireless
(or Mobile) Internet
An analysis of Internet usage and projections covering
more than 50 countries, carried out by Computer Indus-
try Almanac in March 2002, reported that there would
be 1.12 billion Internet users worldwide by the end of
2005, and wireless Internet users will reach 48%. “The
wireless Internet will take off when always-on service and
useful content for the small displays of wireless devices
are available,” predicts Dr. Egil Juliussen, author of the
report (Computer Industry Almanac, 2002). Access to the
Internet through personal digital assistants (PDAs) with
multiple functions (e.g., built-in Internet access, digital
camera, music player, and scanner) is expected to increase
in developed countries.
Interestingly, these wireless devices are expected to
be considered the primary devices for Internet access in
countries with low Internet penetration rates. The report
suggests that 41.5% of the worldwide population will use
the wireless Internet by 2004. In some developing markets
such as the Philippines, the penetration rate of mobile
phone services was three times higher than fixed-line
penetration at the end of 2001.