The Real Mass Market: Mobile Data for All
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Dear Michael,
In which continent do you see LBS evolving? Do you see it implemented in Asia or Europe?
Thanks for the nice webinar.
Kind regards, Milja Hofman.
Dear Milja
Thank you
I beleive we wiill see LBS evolving in all geo regions but drivers and pace may be different. As Shailendra eluded to in his section of webinar we are already seeing uses of LBS in emerging markets such as India targetting both high end (A-GPS) and more mass market (cell id based) applications.
Also as a general trend for applications such as web browsing which I spoke about, there is a growing need for local relevance to content being accessed.
Regards
Michael
Hi Michael,
Thanks for the webinar.
Given that the spend potential of the average emerging market consumer is lower how do operators ensure an ROI on consumer services?
Hi James,
Good question. As mentione dduring my section of the webinar it is very important to operators in the emerging markets area that total cost of ownership relating to service is a low as possible, which means upfront costs for deployment, harware and software and ongoing operational overheads, support etc. vendors need to be aware of this and package their solutions according for this target market-e.g. allow the operator to start off with a low capacity system to help reduce initial investment costs and grow as more subscribers start to use the service. Equally operators must incentivise their users to avail of the service and must be sensitive to their spend potential. making the price too high will marginalise uptake, making it too low will increase adoption but at no economic benefit to the operator. So there is a balance to be reached. One idea as mentioned in the webinar is to offer no commitment pay as you go time/volume based access to service which if offered at the right price , will attract in new users. Incentivise further by providing access to limited content for free ( could also be limited to a promotional perdiod). Subsidize with ads etc
Regards
michael
Hi,
I had been hoping that you would mentioned that another way for operators to reduce cost is to give more responsibility to the content and application providers to take more responsibility for service marketing and development. That implies that they must have higher revenue share to cover their cost. The operator will be left with a smaller portion of the cake, but of a much bigger cake, and hence the result is higher revenue for all parties. Tear down the walls! 🙂
Hi Anne
I guess for services where the operator already has a rev share agreement with the content and app providers that model could work as it would incentivize them to do more in promoting their services and also attract more new content providers into the mix.
Michael
Is the mobile internet really a mass market proposition for emerging markets?
Don’t you think a better strategy for operators would be to focus on the upper middle class and richer user segments in metropolitan areas first?
I beleive it is as if you leave it out and focus on the middle class and I’m assuming high end users the operator is very much limiting their ROI. Yes you can probably get better ARPU from such users but theer are less of them. also they will consume more data in the network (e.g. if they are using smartphones) and so operators costs will increase. By adopting server side adaptation technology the reach of a mobile web service increases immensely to the mass market feature phone segment. Yes operator must sell the service at a lower cost in this case but with more users even paying a small amount per day or hour pass to access the web will quickly lead to an attractive revenue stream. Also feature phone users will consume less data per session and so the costs in supporting these subscribers is less.
Any thoughts around why MMS messaging is so low, and how it usage can be driven, in both established and emerging markets ?
A couple of points which I beleive are impact this and they apply accross the board
1 Inter carrier interoperability is still an issue even in developed markets meaning that recipient does not receive the message or receives a web link to retrieve message-bad experience
2 There is still a cost perception which leads people to use alternatives like forwarding images via email for free instead
3 Social network could be looked at as one catalyst to stimulate growth
4 That said people simply will never use mms on mass as a communications mechanism as there will only be select situations where use of MMS is appropriate
Good session and would like a copy of the slides please?
Mac
Hi Mac
A copy of the presentation is avavailable to download here: http://www.informatm.com/content/marlincontent/ITMG/ibctelecoms/matt/MCI/The%20Real%20Mass%20Market%20-%20Mobile%20Data%20for%20All.ppt
Any of the speakers mentioned anything or included M2M data in the figures. I work in the enterprise market, in my opppinon it could be one of the growing applications in Europe during the for next 4 years.
Thank you very much