Advertising is the next big opportunity in mobile—by some estimates released this week, it will be a burgeoning $250 billion industry within two years, but other more conservative estimates predict it to fall between $11 billion and $20 billion in the next three years. So, which is it?
This week’s outrageous projection—$250 billion by 2010—came from the GSM Association, which believes that an initiative that Vodafone, O2, T-Mobile, and 3 are working on, could make it as easy for advertisers to run campaigns on mobiles as it is on TV or in print. The results were reported in Mobile Entertainment.
Criticisms came fast. Chetan Sharma, who co-authored the book “Mobile Advertising: Supercharge your brand in the exploding wireless market” said in his blog: “I have seen ridiculous projections before but this has to top everything we have seen before and then some more.” In an October cover story in the Economist that hailed mobile phones as a marketers’ promised land, still said mobile advertising is only a tiny business. In 2006, $871 million was spent on mobile ads worldwide, according to Informa Telecoms & Media, and the most bullish forecasted between $11.4 to $20 billion by 2011.
The GSMA said the industry will be large because of all the great things about mobile that we’ve all heard before—it’s a personal device that people carry with them always; and it can provide behavioral statistics on consumers; and therefore it can provide more targeted ads. The article points out that the carriers are doing this as a defensive move against Google and others. Their aim is to build a system that’s as quick and painless as online, while still reaching millions of consumers.
So, the question is, will the carriers be able to pull it off? In Sharma’s first chapter, he points out what the wireless industry is up against: “The challenge is that the market is too nascent to make simple linear projections and assumptions. We must be mindful of the difference between emerging and steady state markets when building our business strategies.”
Wireless Mobile Telecom Wireless News Mobile Advertising
- October 23rd, 2007
- 12:45 pm
The GSM Association has called on delegates to the World Radiocommunication Conference to set aside 100 Mhz of spectrum freed up from analogue broadcasting for mobile broadband services. The four-week WRC opened on 22 October in Geneva and will look at revising international agreements on the use of radio spectrum and satellite orbits. In addition to deciding on spectrum for 3G and wireless broadband services, the conference will discuss issues such as the introduction of HDTV services, harmonisation of spectrum use for electronic news gathering, regulatory procedures for satellite services for members of the ITU and access to spectrum for air industry command systems.
The GSMA has called for the allocation of UHF spectrum in the 470MHz to 806/862 MHz band to mobile broadband, which offers an efficient way to increase the penetration of communication services worldwide, particularly in under-served rural areas. Specifically, the GSMA would like to see the 750MHz to 862MHz spectrum band set aside in Europe, Africa and the Middle East and the 698MHz to 806 MHz band for the Americas, while the Asia-Pacific region could choose either band. By agreeing on these bands now, the equipment industry would face lower costs for developing standardised equipment, according to the industry group.
Wireless Mobile Telecom Wireless News
- October 19th, 2007
- 2:24 pm
The GSM Association and money transfer services specialist The Western Union Company have announced an agreement to facilitate the development of cross-border mobile money transfer services. Western Union and the GSMA are developing a commercial and technical framework that mobile operators can use to deploy services that enable consumers to send and receive low-denomination, high frequency money transfers using mobile phones. The Western Union mobile service will connect operators to Western Union’s existing global money transfer system. Once connected to the Western Union service, operators will be able to use their own mobile wallet software to enable person-to-person mobile money transfers over Western Union’s cross-border remittance network. The Mobile Money Transfer service will enable consumers to transfer money to or from mobile wallets and will offer a global network of Western Union Agent locations for cash-to-mobile and mobile-to-cash transactions. Thirty-five GSMA operators are participating in the GSMA Mobile Money Transfer programme. The first commercial services that make use of the framework are anticipated to be rolled out in the second quarter of 2008.
Wireless Mobile Telecom Wireless News
- August 23rd, 2007
- 8:42 am
The WiMAX Forum, an industry-led non-profit organization committed to promoting and certifying interoperable WiMAX products, today announced that Vodafone, the world’s leading international mobile communications group, has become a principal member of the WiMAX Forum.
WiMAX technology is set to allow high-speed internet access from laptops and other mobile devices over larger distances than previous technologies such as Wi-Fi.
“Our membership of the WiMAX Forum will complement our existing memberships of other key industry bodies such as the GSMA, 3GPP and the Next Generation Mobile Network initiative,” said Steve Pusey, Global Chief Technology Officer, Vodafone. “Vodafone remains technology neutral as far as our future network options are concerned, and joining the WiMAX Forum is a logical step as we seek to evaluate the full capabilities and potential of this technology.”
“The WiMAX Forum is pleased that Vodafone has joined our organization,” said Ron Resnick, President of WiMAX Forum, “We look forward to Vodafone playing a key role in the future development of WiMAX technology.”
The WiMAX Forum is an industry-led non-profit organization comprising more than 470 companies including 141 operators committed to promoting and certifying interoperable WiMAX products. WiMAX products are designed to deliver wireless broadband services to both residential customers and businesses by creating economies of scale made possible by standards-based, interoperable products and services.
Wireless Mobile Telecom Wireless News
On Monday the GSM Association (GSMA), which represents the operators, released a study it had commissioned from analysts at Ovum. It showed that allowing 3G to be used over the 900MHz GSM spectrum band — a process known in the industry as “refarming” the spectrum — would let an additional 300 million people in Asia, Europe and Africa have access to the more advanced mobile technology. 3G currently operates around 2000MHz, but employing lower frequencies would allow transmission over greater distances, as well as better indoor penetration.
A 3G network operating in the GSM band would give 40 percent greater coverage than it would at 2100MHz — leading to a reduction in cost. Making 3G data services more cost-effective would, of course, help fend off rival technologies such as mobile WiMax — currently enjoying its greatest success in developing countries — but, interestingly, Ovum’s study “does not attempt to address the potential competitive effects of refarming”, according to the GSMA.
O2 and Vodafone currently use the 900MHz band for their GSM voice services, and both companies have previously called for refarming to be allowed. However, analysts say that, if those two operators were allowed to refarm their 900MHz spectrum for 3G services, rivals like T-Mobile and Orange — both of which use the higher frequency 1800MHz range for their GSM services — might object. The subject of 3G and the cost of its delivery is a sensitive one for operators, because of the multi-billion-pound cost of their licences.The Ovum study calls for international co-ordination in the opening up of the 900MHz band, particularly due to the interference problems that could otherwise arise. “900MHz is one of the most used spectrum bands in the world and regulators must be careful to avoid interference with existing GSM services or interference across national borders,” said Stewart Anderton, principal consultant at Ovum.
Tom Phillips, the GSMA’s chief government and regulatory affairs officer, said that “national governments need to co-ordinate their spectrum policies to enable the widespread rollout of HSPA [enhanced 3G connectivity] in the 900MHz band.”
Wireless Mobile Telecom Wireless News
The GSM Association (GSMA) has launched an Innovation Programme to help thousands of small and medium businesses (SMBs) develop mobile products and services to reach mobile operators and bring their developments to end users. Before a Mobile Innovation Summit at the GSMA Mobile Asia Congress in Macau in November, senior executives from mobile operators and venture capitalists will review submissions from innovators and identify the top 50 small companies targeting the mobile user. These firms will be able to meet operators and investors at the summit.
Wireless Mobile Telecom Wireless News
Motorola (News - Alert) Inc. has announced its intention to participate in the GSMA Pay-Buy-Mobile Initiative.
To ensure efficient mobile phones and wireless services globally, GSM Association (GSMA), the global trade organization for mobile operators, had announced a scheme last year called Pay-Buy-Mobile which is a global approach to expedite secure purchases and payments from mobile phones. Mobile payments can be made using a SIM or a Universal Integrated Circuit Card (UICC) card in mobile phones which link to Near Field Communication Technology (NFC).
To facilitate implementing NFC system, Motorola Inc. will supply handsets and be involved in all trials sponsored by the GSMA. Motorola will also provide feedback to GSMA Near Field Communications Technical Guidelines white papers, and work with the European Telecommunications Standards Institute (ETSI (News - Alert)) and the NFC Forum.
Alan Wright, senior director, Strategic Business Development, Mobile Devices, EMEA and India, said, “Participating in the GSMA Pay-Buy-Mobile Initiative further advances Motorola’s goal of bringing the promise of mobile payments and financial services to customers around the globe. It is a key component of our strategy to deliver seamless mobility to mobile consumers”.
Wireless Mobile Telecom Wireless News
Nasdaq-listed handset maker China TechFaith reports a quarterly net loss of $3.4 million. The firm also announced that it is cutting its workforce by 400, which could lower its operating expenses by at least $2 million per quarter.
ZTE wins a contract from the United Telecom of Georgia to build a commercial CDMA network that could serve 100,000 users. It is the biggest CDMA network order Georgia has ever made.
The GSM Association (GSMA) signs a deal with Microsoft to collaborate on mobile Internet research. GSMA and Microsoft will work on consumer user trends and the mass market potential of notebook PCs with embedded mobile broadband.
Wireless Mobile Telecom Wireless News
The GSM Association (GSMA) has announced a global research program in partnership with Microsoft to determine the market potential of embedding mobile broadband capabilities into notebook PCs.
The program hopes to assess the opportunities to drive PC broadband connectivity growth beyond business users to consumers and small business notebook users.
Through the GSMA, 13 mobile operators are participating in the research; Telefonica/O2 is a sponsor of the study. Other participating networks include: AT&T Mobility (formerly Cingular Wireless), China Mobile, DTAC, Maxis, MTN, Orange, SingTel, Smart Communications, TeliaSonera, Turkcell, Vodafone and Wind.
“Following the success of our initial program to infuse the notebook market with mobile connectivity, we are delighted to be working with Microsoft to initially understand the scale of the opportunity for mobile broadband enabled PCs in the mass market,” said Rob Conway, CEO of the GSMA, in a statement. “Understanding the market size and customers’ requirements is the first step toward developing devices to meet those requirements.”
The collaboration will begin with a global market research study including field research, conducted by Pyramid Research, which aims to quantify mass-market interest in mobile broadband. The researchers hope this will identify key adoption drivers, as well as the customer value proposition.
Wireless Mobile Telecom Wireless News
Like many of you, I’ve closely followed the current mobile advertising craze. I’ve heard numerous vendor pitches and listened to debates about the pros and cons of delivering ads to consumers via their mobile phones.
The Mobile Marketing Association, of course, is developing industry best practices guidelines to make sure that customers aren’t offended or alienated by ads. And today the GSM Association launched a mobile advertising program it says will drive the development and success of mobile advertising by determining how to deliver and measure mobile advertising. Those carriers participating in the GSMA efforts include such key operators as AT&T, 3, KTF, Orange, T-Mobile and Telefonica O2 Europe.
But while all these industry groups debate and strategize, there’s a small Ohio operator that’s already steps ahead of the crowd. Revol Wireless, which uses the tagline “Welcome to the Revolution,” is a small regional flat-rate operator that is working with mobile ad firm Mobile Posse to deliver advertising messages to the idle screen of cell phone users. Called Revol Perks, the application was introduced in March. Customers that want to join Revol Perks can download a software application to their phones and receive a one-time $10 discount. This serves as their opt-in to receive idle screen advertisements, and the subscribers also provide some demographic information such as age, gender and ZIP code. This information is then used to tailor the ads to the users.
The ads appear on the screen of the subscriber’s phone when it isn’t in use. The customer can click on the message to read more or cancel it.
So far this initiative has attracted quite a few advertisers including firms such as Panera Bread and Pizza Hut. Revol subscribers, meanwhile, seem fairly accepting of the idle screen ads. Although the carrier hasn’t revealed how many subscribers are using the service, Jon Jackson, CEO of Mobile Posse, says that 75 percent of Revol subscribers that were offered Revol Perks have signed up for it and only a handful–less than 1 percent– have opted out.
Revol’s idle screen advertising model is still in its early stages but I find it interesting that a small regional operator is leading the way in mobile advertising instead of following in the footsteps of the large Tier 1 operators. Innovation is alive and well in the wireless industry–you just may have to look to the Tier 2 and Tier 3 operators to find it.
Wireless Mobile Telecom Wireless News
Mobile Advertising Forecasts All Over The Map From $11-$250 Billion
