The way towards a
mobile society
[email protected]
Finnish Tourist Board, Helsinki
in co-operation with the WG E: 'Nordic group'
Who loves wires?
Revenues Take Off in 2003?
200
180
More users with wireless
Internet access than with
fixed access in 2005
160
143
Million Users
140
191
171
155 158
126
120
107
100
97
85
80
40
60
40
20
0
12
5
2000
2001
2002
Wireless Internet users
2003
2004
2005
Fixed Internet users
About 10% of mobile phones sold in Western
Europe during 2000 are WAP-enabled.
Forecasted increase, 27% in 2001
The problem with
WAP today
•
•
•
•
connecting
20 s connection time
dropped calls
charging by the minute
Scandinavian slow replacing
towards wap phones < >
services missing (the chicken
or the egg?)
Standard competition holds up
development of advanced services
SMS
WAP
GPRS
3G/4G
Sprint Wireless Web
Ezweb
cdmaOne
iDEN
Sophistication in services
Consumer Adoption
Jphone
CDPD
AT&T PocketNet
PCS
WAP
PALM VII
iMode
The Wireless Market
Shopping
Goods and off-line services
Advertising
Wireless Internet, SMS, PDA
Other
Financial, E-mail, Search,
Positioning, Games
M-Commerce Market Drivers
• Decreasing average revenue per user drives networks
operators to implement new services
• The increasing number of mobile phone subscribers
• Increasing exposure to fixed line e-commerce among
Europeans
• Supplier push (from equipment vendors)
• New billing principles (flate-rate, value-based)
• UMTS licensing
• Application developers
• Content providers
• Content aggregators
• Mobile portals (aggregates applications and content)
• Consumers (consumer profiles and business segments)
• Payment agents (not only banks……..)
Many Rely on Advertising and Shared Air Time Revenues
Advertising/Sponsorship
Shared air time revenue from operators
Consumer Pay Per Use
None, revenue comes from our non-wireless business
Consumer Subscriptions
Consumer Purchases
What revenue streams does
your wireless business have
(or plan on having)?
Liscensing and Syndication Fees
Other revenue from operators
Other revenues
0
N = 34 (multiple answers allowed)
5
10
15
20
25
. . . but Expects Most Revenues From Commerce and
Advertising
Commerce
Advertising
Consumer pay per use
Operator Fees
Subscribtion
B2B business
Which do you expect to be your
most important revenue stream
in two years?
Lisensing and syndication fees
User transactions
Other
0
2
4
N = 34 (multiple answers allowed)
6
8
10
12
14
16
Time Critical Services Dominate Today, Messaging No. 2
News
Stock quotes
E-Mail
Messaging (other than e-mail)
Shopping
Directory
Games
Travel, currency & leisure info
Sports
Ring-tones
Weather
Location and navigation nfo (maps etc.)
What is the most used wireless
content/service on your site?
(up to three answers)
Banking
Horoscope
Images
Gambling
0
2
4
N = 34 (multiple answers allowed)
6
8
10
12
... but believe in
E-mail, Commerce and Games
E-Mail
Shopping
Games
Stock quotes
Messaging (other than e-mail)
News
Directory
Gambling
Fin. Serv.
Film reviews & bookings
Travel, currency, leisure & entertainment info
Sports
What do you expect to be the most used
content/service in two years from now?
(up to three answers)
Location and navigation nfo (maps etc.)
Images
Weather
Ring-tones
0
2
4
6
N = 34 (multiple answers allowed)
8
10
12
14
Consumers Ask For Communication, Banking and
News Services . . .
Gambling
Restaurants
Shopping
Stocks
Games
Europe
Chat/IM
Movies
Yellow pages
Which wireless
data services
would you
like to use?
Sports
News
Directions
Banking
Email
0
Source: Jupiter Net Query
10
20
30
40
50
60
70
Scandinavian countries are aware
of banking services . . .
Gambling
Restaurants
Shopping
Stocks
Fi
UK
Games
Chat/IM
Movies
Yellow pages
Which wireless
data services
would you
like to use?
Sports
News
Directions
Banking
Email
0
10
Source: Jupiter Net Query
20
30
40
50
60
70
80
Spending still small when compared to
the PC platform
Advertising
30
6
25
5
billion euros
billion euros
Shopping
20
15
10
5
4
3
2
1
0
0
2000
Mobile
2005
Web
2000
DTV
Mobile
2005
Web
DTV
Time to move on
Cost, Functionality and Consumer Awareness Are Top
Inhibitors
Cost of using WAP
Consumer interest/awareness
Current functionality of the WAP-standard
Different WAP-implementation in different devices (phones)
Consumer payment standards
Closed mobile operator gateways
Variety of WAP-enables phones (screen size, etc.)
Which of the following
factors are significant
inhibitors to the growth
of your wireless
business?
WAP security
Current advertising potential of WAP
Other
0
2
4
6
N = 34 (multiple answers allowed)
8
10
12
14
16
Some thoughts on UMTS
• Expensive European air... Different procedures for
obtaining a license
• EU was for the first time in winning position > slowing
down the speed, when users need to pay roaming fees
• No timetable for 3G
Important key weaknesses for
further development
• Existing IT-infrastructure is the greatest
handicap in the move to optimised m-commerce
business processes (ex. transport operators legacy systems
do not permit e-ticketing or mobile ticketing)
• Not enough hotels and rest. have a web presence
• Surfing WAP-sites is slow
• Difficult to find WAP-sites
• Secure and convenient payment methods still to come
What will be the future?
GPRS will be the
Inflection Technology for
'Wireless Internet' in Europe
•
•
•
•
Operators roll out services across Europe during 2001
GPRS terminals available in limited numbers today
Widely available during 2001 and common during 2002
Flat rate offers allow extensive usage, charging per bit
allow low entry level, no dropped calls, 1 sec connection
Stakeholders Many Players Fight For the Same Customers
Network
Access
Content
Terminals
Operators / ISP’s
Mobile phone manufacturers
Wireless Portals
Web Portals
Other
Players fight for
anticipated profits
in content, services
and commerce
Operators have a strong position
1. More difficult to change start page, gateway and set
bookmarks
2. High traffic charges give operators the possibility to
subsidize content and services
3. Operators can charge customers phone bills / no
payment standard
4. Positioning information held by the operator
5. Established customer relation / access to customer
data
The tourism industry needs to partner
• Be creative in partnering with others
(Operators is one example)
• For the next three years, content, commerce
and service companies must make partnerships to
reach a broad user base
• Wireless internet revenues will not support
independent content providers. The strategy
should be to use wireless content to
strengthen online / offline services.
Cases
Finland and Denmark
Finland
wap.finlantravelguide.com
• Travel services in English with national coverage
• Content based on existing database with travel options
jointly produced by the Finnish Tourist Board and the
Finnish travel trade
• Launched January 2001
• Free of charge, available to anyone
with a WAP enabled phone
• A platform for local add-on services
• Directions for using the WAP-service:
www.finland-tourism.com
Denmark
wap.visitdenmark.com
• Denmark offers wap service • Service due to expand
to tourists when in the
over the years
country
• Cooperation with local
• Addition to what you can find
tourism partners for up-towhen planning the trip on
date info essential
www.visitdenmark.com
Key issues
from the WG E 'Nordic group'
Key Issues
• Development of new technologies for mobile Internet will
continue. The tourism industry needs to get involved!
• The need for standardisation and structuring of information
has been exposed by the development of Internet, now is the
chance to deal with these issues in the beginning of
mobile Internet.
• Surveys of Internet behaviour of tourists was slow to start,
now is the time to start market research of mobile Internet
on a European level
• Research in mobile Internet and it’s impact on tourism
is limited
Need for EU initiatives
• Co-ordination between databases for mPortals of NTOs’
• Create forums where technology providers and developers
can meet with the tourism stakeholders (public and privat) to
analyse problems, support the development of partnerships
and agree new access conditions and pricing models
• Further support of joint research such as the 5th Framework
Programme
• Arrange conferences on this topic for the tourism industry
Sources
•
•
•
•
•
Jupiter Research
C. Marcussen, Bornholms Research Centre
Durlacher, M-Commerce Report 1999
Mobile Forum Oulu
WG E Nordic Group