The growth of online social communities and user generated content (UGC) on the fixed line internet, with sites such as MySpace and YouTube, has encouraged the mobile industry to try to replicate this success on mobile. One example is SeeMeTV from Hutchison’s 3UK. Mobile operators must embrace UGC and mobile communities further, as a key source of revenue.

According to a new market research study, there are significant potential benefits for mobile operators in offering such services, including the increase of mobile data usage, reduced churn and greater opportunity for customer segmentation.

Current mobile solutions that have experienced some success include SeeMeTV from Hutchison’s 3UK, which allows users to upload captured video content from mobile, download other users’ clips and receive payment from the operator every time a user generated clip is downloaded. The service generates over one million video downloads per month.

Sweet spot: convergence

However, the sweet spot for such mobile services will be when they compliment existing or newly created fixed line services. One example: Approximately 13% of U.S. users currently access dating services from their mobile phone. The remaining 87% who access dating services are using fixed-line internet access.

Several challenges face the success of mobile UGC and social communities, including varying user internet experience depending on device or network and smaller screen and keypad on mobile, mean that the services will need to compliment rather than compete with fixed line services.

This convergence will enable users to maintain contact with fixed-line communities in which they engage, rather than restrict usage to operator defined content. This is key to encouraging usage of such services on mobile because MySpace users, for example, will want to be able to contact other MySpace users via mobile and not be restricted from doing so by operators.

Segmentation and advertising bonuses

The report also finds that UGC and communities will provide a way for mobile operators to generate additional revenue through customer segmentation and advertising. Communities allow operators to monitor user feedback and gain a better understanding of what subscribers want from their content. So, for example, an operator can provide a community that is discussing the latest track by a music artist with links to download the track or video or ringtones.