Xellular Identity - All About Mobile Content & Marketing

Super Tuesday - Super New Mobile Apps!

A big day like today brings cool new mobile apps!

First, let me share my own news:

As you know, I recently joined MyFrame Inc., who offers you a cool new mobile application called Flixwagon. For those of you who don't know what Flixwagon is, Flixwagon enables anyone with a capable 3G/WiFi mobile phone to broadcast live videos to the internet.

So you're probably saying, "ok, new mobile gig, where's the news?". We partnered MTV. Today, MTV's street journalism team will broadcast from 23 states to ThinkMTV using Flixwagon. Throughout the day, MTV will regularly break into programming and showcase news features from the live reports.

James Whatley from SpinVox shared that that SpinVox has partnered with WNYC Radio to enable greater listener interactivity during the station’s ongoing coverage of the multi-state primary Super Tuesday. Voters will be encouraged to contribute thoughts, comments and observations by speaking messages to a special phone number set up for the radio station. Those messages will be converted into text by SpinVox and will dynamically become a part of the coverage in real time. Hockenberry and Udoji will report on voter sentiments and read select text on-air.

Interesting to see how new means of communication take part in one of the biggest political events. Will follow closely.

Usability Rules!

The common goal of all usability professionals, no matter if they specialize in cooking utensils, clothing or developing mobile applications and services, is to develop products from the end-user needs’ perspective, so they could use them easily and intuitively. Developing products should not be based only on technical possibilities and/or limitations. why? Simply, when it's easy to use, more people will use it and the more revenues the product\service generates. Unfortunately, many products fall at the "technical trap" and leave behind the goal of intuitive usage.

That is why I was very impressed with Hutch (India) “Copy Callertune” feature:

So simple. So elegant. So intuitive. All you need to do is press the * key when the ringback tone is playing. Who wouldn't press * if he\she hears a cool Callertune?

At Hutch’s website I’ve found the following directions:

“How to copy Callertunes Like your friend’s Callertune? Now you can set it on your own Hutch phone - it’s easy! Just call your friend, and while the Callertune is playing, simply press the * key on your Hutch phone. That’s it - the Callertune will automatically be copied and set on your Hutch phone.”

Way to go! And if you come across more cool examples - don't be shy and send me a word about it. Thanks :)

Blogference: Om Malik's Presentation

Om Malik gave an outstanding presentation, focusing on his insights as a professional blogger.

“The early traffic trends of Gigaom made it clear: you can build an audience of a magazine that costs many $M with a laptop, a cellphone and a broadband connection.”

However, to meet these goals you need to:

1. Define your mission statement – what is your value proposition for the end reader?
2. Have an answer to “why are you blogging”?
3. “If you screw up – say that you did, otherwise people would move on to the other 20M places that exist on the web.”
4. “Remember that your readers are smarter than you think and smarter than you think you are.”
5. “People should behave in blogs the way they behave in real life.”
6. “People who disagree with you are more helpful to you in the long run - they say something about you.”

Om also provided some insights for the PR and marketers among us:

1. Marketers don’t put the time to read the blogs and think about the reasons of bloggers to write\think as they do. So, you should invest the time to learn the blogger and only then communicate on one on one basis.
2. Do your homework - sort which blogs you should pay attention to.
3. You have to treat every blogger as a newspaper journalist.
4. Give him\her an opportunity to talk with your CEOs.

As an example of business reaching to blogs "the right way", Om presented the case of Joost. Joost offered GigaOm’s readers 20,000 invites; by doing this Om not only provided an added-value to his readers in the form of his insights but also gave them 20,000 invitations. Joost, on their side, got 20,000 tech savvy users who were eager to take the app for a test drive. It is clear how everybody wins… 

As for GigaOm, Om was asked about his shift from the online media, Business 2.0 magazine, to his private-held blog\business. His answer was that while he was a Senior Writer at Business 2.0 and writing GigaOm (on the same time) he realized that the blog was getting more readship, as well as more recognition and more alert discourse was being held through the blog. And the rest is history...

Putting aside the profession for a moment, I have to say that I was very impressed of Om as a human. There is so much for to learn from him... :)

And last quotation – “Thanks to blogging, I take other opinions more seriously.”

Second Day of Blogference Begins

Hi all,

I just got to Om Malik's workshop about the interaction between blogs, bloggers and business companies. I'll try to update as we go or later on.

Have I said already I'm a big fan of his...? :)

Update: Om just confessed he has a hangover :)

Sprint Offers Pandora Personalised Radio Stream on Mobile Phones

American mobile operator Sprint announced another agreement to eiden its mobile content offering:

In their first mobile deal, Pandora, a personalized online music service provider, is offering to stream radio stations on a number of Sprint handsets via pre-installed or downloaded software. Pandora, which enables its 6.5 million online subscribers to enter a favorite song or artist and listen to streaming content with the same sound and style, will offer the same service to Sprint's mobile customers.

To download the client, take your Sprint phone browser to Pandora.com and you will be prompted to download it. This offer is free for 30 days. After that you must have a Pandora premium account, which costs $3/month with a Sprint data plan (this also removes ads from Pandora.com when you listen there). The service will work initially on five phone models but will expand to all high-speed data phones sold by Sprint by the end of June.

Pandora is based on the Music Genome Project, a proprietary system that employs musicians to analyze songs one at a time, identifying musical qualities like melody, harmony, rhythm, arrangement, lyrics and vocals. Information about each current song, like title, artist and album, is displayed on the phone's color screen, and Sprint subscribers may scroll backwards to see the same data for recently played songs. Users may also rate songs to adjust Pandora's programming, pause and skip songs. In addition, Sprint subscribers may bookmark songs, saving title and artist for subsequent purchase at the Sprint Music Store. The Sprint service will integrate with Pandora's online service, enabling users to save up to 100 stations per account. Sprint customers can also create new stations directly on their phones.

[via Press release]

Sprint is the first mobile operator to offer Pandora, it would be interesting to see how other mobile operators will follow...

Coping With Law Enforcement: Second Life and Child Abuse

Over the past day, the issue of simulated and actual child pornography in virtual worlds has attracted the attention of mainstream media. The buzz was provoked by a report of a German TV news program which uncovered the trading group and members who pay for sex with virtual children at Second Life.

For those of you who haven’t heard of Second Life, it is a virtual world in which members create for themselves an avatar and use it to live out a separate existence at the virtual world of Second Life.

Now, Second Life is being investigated by German police following the allegations that some members were having virtual sexual contact between adult avatars and avatars with child-like appearances called "age play"; (which are groups that revolve around the abuse of virtual children);but also claims that photographs of real-life child sexual abuse have been made available in Second Life.

The incidents involving child pornography didn't stay within Second Life though, according to the investigator that carried out the report, Nick Schader, he was offered by this said trading group access to traders of real child pornography. Moreover, there were meetings within Second Life where virtual and real child pornography was shown.

Now, the police are trying to identify the Second Life members involved since under Germany law possession of "virtual" child pornography is punishable by up to three years in jail. In response, Linden Lab, creator of Second Life, said it would help identify users and pass on details to prosecutors.

[via BBC News]

Ever since the first allegation of sexual abuse at Second Life has been published, there is an ongoing debate whether “age play” is legitimate, and whether it is a healthy outlet for sexual fantasies. Virtually Blind states that -

“sexual age play practitioners are quick to differentiate themselves from pedophiles (who, they point out, are sexually interested in actual children, rather than in adults who role play children).”

One of the interesting things, apart from the debate about the legitimation outlawed behavior in virtual worlds is what measures Linden Lab has taken to law enforce within its jurisdiction. Virtually Blind states that

“several months ago, The Register, reported that a Dutch prosecutor was considering bringing charges against citizens of the Netherlands who engaged in sexual age play in Second Life.

Shortly after that story broke, the Second Life Herald reported that Linden Lab had begun quietly contacting residents who appeared to be running businesses related to sexual age play, with the following message:

"Dear Second Life Resident:

Linden Lab would like to inform you that your land or business is possibly not in compliance with Second Life’s Community Standards. The depiction of sexual activity involving minors may violate real-world laws in some areas, and the Second Life community as a whole has made it clear that it views such behavior to be broadly offensive. Linden Lab chooses not to allow the advertising or promotion of age play or related activities in any public forum — including in-world textures, classified ads, the Second Life forums, or parcel descriptions.

Advertisements, promotions, or descriptions of such activities must be removed to avoid account sanctions.

Any account asserting an age that does not meet Second Life’s minimum age of eligibility will be closed.”"

[via Virtually Blind]

The Push Ringer

Just got the word about a cool new mobile personalization service called “Push Ringer”:

Push Ringer reverses the common ringtone model. It enables a caller to push an outgoing ringtone to the receiving phone allowing the caller, not the called person, to set the tone. The chosen Ringer is transmitted to the recipient's handset and temporarily overrides the phone's pre-set ringer. The ringers can comprise audio, video, animations, avatars or flash files. Closing the loop, if the called person likes the ringtone, the service also enables him or her to instantly buy a copy of the ringtone for his or her own phone. Emotive's Push Ringer moves beyond traditional mobile personalization by both adding value to the ringtones users purchase for their own phones and providing content recommendation and impulse-purchase opportunities to the users' friends, family and coworkers. This new technology represents a vastly more active, expressive and compelling form of call personalization than exists in today's ringtone market which is otherwise showing signs of leveling off at only about 6% of mobile subscribers, worldwide, The Push Ringer leverages rapidly emerging broadband wireless telephone and wire-line VOIP networks.

[via Mobile Tech News]

This idea was actually presented here, at Xellular Identity, long time ago by Assaf Katan. Interesting how ideas spread around. So here is Tom Sella's comment given to Assaf at the time, that still should be taken into consideration:

"well, considering most (ok, i'm a nokia nut, so strike that "most" and read as "nokia", since that's almost all i've used for the past 10+ years) already have profiles (with timed activation) and groups to which you can assign a ringtone, and yet, most people (i know) don't bother with them, i'm not so sure you'll be able to find a justifiable market size to support such an application.

that, coupled with the fact that the phone maker actually manages the ringtone app (with the possible exception of the smarter phones), i have to say i'm a nay-sayer."

Special: A Sneak Peak at the mobileYouth report 2007

Hi everyone,

Continuing with a great success, let me welcome here again a dear friend of mine. Please welcome Savka Andic, Research Associate at the Wireless World Forum, who is also the co-author of the mobileYouth 2006 report. Savka has agreed to share some insights from the upcoming mobileYouth 2007 report!

Savka, the stage is yours!

What can you say about the differences in mobile usage among youth worldwide?
Differences in mobile usage among youth worldwide are due more to differences in mobile industry structure than they are to any underlying cultural differences between today’s youth. In fact, youth are remarkably similar and share the same basic needs the world over; what’s different is how the mobile industry recognizes and responds to these needs. We often hear arguments about how Japanese and Korean youth are more “gadget-crazy” and more likely to be early adopters than American or European youth, or how the culture is simply different in East Asia and youth there are naturally drawn to strange new technologies. This is like arguing that people living in the tropics spend more time outdoors than those living in snowy climates because they are innately drawn to nature, completely ignoring the fact that it’s much warmer near the equator and therefore more pleasant to spend time outside than in the freezing cold! It’s flawed logic which overlooks the generative conditions of youth mobile use.

For example, people used to argue that texting would never take off in the US like it did in Europe or Asia because more people had access to email and wouldn’t be interested in using the phone for sending messages. However, in 2006 texting grew fivefold in the US and is now nearly on a par with texting in Europe after the dismantling of major industry-related barriers such as SMS interoperability and charging models where customers paid to receive text messages.

Youth in Northeast Asia continue to lead the world in high levels of data usage, where on average youth data ARPU comprises 40% of total ARPU. In Europe, America and the Middle East data ARPU still lags significantly behind, comprising about 10-20% of total ARPU. I predict a move towards significantly heavier data use among youth in the coming few years, particularly with the increasing uptake of mobile music.

Where are the emerging youth markets for mobile products and services?
Geographically speaking, China, India and Brazil will continue to be key markets for the next five years, all three of them ripe for growth. In the more mature markets, mobile content is still very much an emerging market for youth with a lot of potential. Operators and content providers are not yet finding the best ways to satisfy youth desire for mobile content, with the notable exceptions of youth MVNOs such as Amp’d Mobile in the US and the East Asian operators. Amp’d Mobile’s success shows the considerable appetite which youth have for mobile content: an ARPU four times higher than the US/European average and content revenues nearly ten times higher than the US/European average.

What are the economic implications of mobileYouth purchasing?
Displacement, displacement, displacement! Mobile’s intrusion into the traditional areas of youth consumption has created displacement in both the financial and the social arenas. The more conventional youth symbols of social status and maturity, such as cigarettes and special clothing, have been displaced to a considerable degree by mobile. In fact, the decline in smoking among UK 15-16 year olds during the late 1990s and early 2000s was attributed in part to the rise of the mobile phone, which not only left youth with less disposable income to spend on cigarettes but also functioned as a tool to define status and signify maturity much in the manner of the cigarette.

Financially speaking, mobile has displaced a remarkable $500 billion worth of youth spending since 1996. In 2006 alone, youth worldwide spent $130 billion of their disposable income on mobile, and by 2010 that figure will rise to $350 billion. Today youth on average spend 10% of their disposable income on mobile, but in certain regions such as Japan, Korea and the Middle East, that figure is as high as 15-20%.

You claim there is a lack of consumer focus in mobile industry. What are the reasons for it?
We identify two basic reasons for this lack: the residual effect of uncompetitive market conditions in early markets and the general attitude of the technology industry towards consumers. Decades ago, the divide between technology and the average consumer was very great. Technology did not make up the fabric of everyday life like it does today and average people had less knowledge and lower expectations of technological products. In turn, the industry did not feel obliged to take consumer needs into account and this fostered an industry push model of technology. The industry assumed that consumers (or “end users” as it still calls them) would eagerly lap up all of the products pushed upon them, a mentality which continues today with concept such as “killer apps” and the like.

Telephony was traditionally seen as a utility, much like gas and water. Gas, water and landlines are commodities, and you really don’t care who provides them for you as long as it’s reasonably cheap and good quality. This telephony-as-utility approach had a residual effect on the mobile industry. However, mobile networks cannot behave towards consumers as if they are providing a mass-produced generic utility - mobile phones are crucial social tools and people are anything but indifferent to them like towards gas or water.

What are the “mobile myths” according to mobileYouth?
The lack of consumer focus in the mobile industry addressed above has spawned a series of myths regarding how consumers use their phones and what they want on mobile. One of the main myths which I touched on above is that consumers want “killer apps” – fun and “cool” new technologies and “feature-rich” phones. The principal message of mobile youth is that “killer apps” and “features” mean nothing unless they are underpinned by a social benefit for the consumer, especially for young consumers, whose universe is tightly defined by the type of social interaction they have. This is why complicated services with no clear social benefit such as MMS have not taken off, despite the industry pitch. Why should kids send expensive and convoluted MMS when they can upload their mobile photos to Flickr using services like Shozu and share them with friends?
This is where Comverse has done a great job with mobile avatars. Mobile avatars recognize youth’s need to extend their self-expression beyond their phone, making the avatar a form of social currency among youth.

Another myth is the myth of mobility – the idea that simply being able to take something with you on your phone is a social benefit. Mobilizing existing services such as TV and social networks is not necessarily compelling for youth – there must be some added benefit beyond mobility which reinforces youth’s existing peer group or helps them interact more effectively with their environment. It is for this reason that PC and mobile social networks are actually quite different, and simply sticking a PC MySpace page on mobile phones is not really compelling or a big deal for youth. This is also why technologies like QR codes can be very beneficial, because the leverage the unique flexibility of the mobile phone to the consumer’s benefit.

Kids use their mobile phones a lot at home where they can easily access PC and landlines, so obviously the appeal of the mobile phone goes deeper than just “mobility” otherwise they would only use their phones when “on the go”

Thank you Savka for these great insights :)
Savka will be here next Thursday, so don't forget tune in! 

Celebrating Early Steps of Openness to 3rd Parties

One of the most promising strategies to increase mobile subscribers’ exposure and awareness to the ringback tones service is opening it to the content off-deck market; i.e. to enable 3rd party retailers and content providers to offer ringback tones content at their portals. This way, there will be more places for users to acquire ringback tones, they could buy them both at operators’ portals and at the content aggregators’ own websites.

Telenor just launched a few days ago its new ringback tone service called Ventetoner which has been enabled for roll out by Telenor’s 12 operating companies across Europe and Asia. The novelty in the current launch is the new technology which lets third parties sell ringback tones that work on the Telenor network. As far as I know (and feel free to comment and correct me if I'm wrong), the precedent of this kind of cooperation belongs to Jamba, a mobile content aggregator, which started a few months ago to promote T-mobile’s and Vodafone’s ringback tones in its German website; but still, at this early stage, every mobile operator that aquires the technology to enable 3rd parties promoting ringback tones is a cause for celebration.

If you're curious to now just how powerful this strategy is and how it helped Jamba and T-mobile to increase their penetration numbers, both T-mobile and Jamba are going to present their success stories at the upcoming Ringback Tones Marketing Seminar in Miami at the 18-19th of April. For online registration to the Seminar, follow the link. Also you can contact me for more information and agenda.

John White: Mobile Messaging Futures (Part IV)

Welcome to the third part of the mobile messaging coverage. Today, John White of Portio Research Ltd will be visiting here. If you missed the previous parts you can follow these links: Part I, Part II and Part III.

Let's welcome John:
Hi John. Thank you for coming back, how are you? :)
Hi Xen, thanks a lot, I’m doing great thanks.
Today, you're going to share some more insights about the mobile messaging futures
Yes! Here’s what Portio Research has to say about it:

Why has growth been so slow for mobile email?

Once we understand this argument, we can put mobile email into perspective. Set against an installed base of 2 billion plus SMS-capable handsets, mobile email has only just got off the starting blocks. RIM’s BlackBerry is widely accepted as the market leading device of choice for corporate executives who need reliable mobile email, yet after years of pushing these excellent devices into the market, the installed base of BlackBerry subscribers, worldwide, in mid-2006, reached only a little over 6 million. Taken alone, 6 million or more is a great success for RIM, but compared to the 2 billion souls around the world with SMS in the palm of their hands, it’s just a drop in the ocean.

Looking forward perhaps 10 or 15 years, we should see a future where email becomes the unchallenged #1 most popular form of non-verbal communication on the planet. With billions of people connected to the Internet, wired and wireless, email will surely be the messaging format that most people use, but this is unlikely to be a conscious decision on the part of the consumer. By this time, how an individual is connected to the Internet, and which messaging platform they are using won’t matter - and the user will neither know nor care how it all works. Messages - text or images, moving or still, with or without attachments, sound, colour, etc - will be sent and received by any device, any time, any place, with or without wires, and telecommunications service providers, if they are smart, will not burden consumers by even trying to explain how it all works.

But getting us to that vision of the future from where we are now will take some time, and there will doubtless be some barriers to cross along the way. To move towards a point where mobile email becomes the mass market messaging format of choice will require absolutely seamless integration of competing technological standards, in an industry that so far has a poor track record on standardisation. For mobile email to start reaching deep into the mass market we need widespread penetration of email-enabled devices, we need to see simple, transparent pricing and we clearly need effortless interoperability between telecoms operators, not only mobile network operators but also wireline operators and the broader Internet community as a whole.

So it may be a while before consumers all use mobile email, but what about the enterprise sector?

In the short term, mobile email solutions such as BlackBerry will remain popular tools with company executives, and many operators around the world are promoting their own email solutions, and this should slowly help the sector to grow. But as we learned from MMS, it takes a long time for handset penetration to build a critical mass of users, and a long time for a service to penetrate the consumer masses who are more price-sensitive than corporate users.

Further hampering the take up of mobile email in the enterprise environment, corporate IT departments are unclear about how to integrate mobility in the broader world of the corporate IT infrastructure. Should mobility be bought with other IT and telecom services from long standing, trusted suppliers, or separately, directly from the network? Should corporations equip large sections of the workforce with mobile devices, possibly costing a hefty slice of the IT budget, or can companies tap into the devices these individuals already own? If using their own devices, who should pay the bill and how does the corporation control network security? Corporations are understandably concerned about making these decisions, and so far no clear precedent has been set.

Again this presents an opportunity for SMS, and a problem for mobile email. While big companies can afford complete mobility solutions, for many small and medium sized enterprises that simply is not an option. In mature markets such as Europe and North America, the vast majority of employees already have an SMS-enabled device in their pockets. Solutions are available to offer some email functionality to SMS, such as copy, back-up, archive, forward, auto-divert, out-of-office reply and so on. If enterprises could buy into these solutions from network operators at a fraction of the cost of replacing all those handsets, many SMEs might find that SMS has an affordable place in the corporate communications infrastructure, at least for a few years while the industry hammers out the technical barriers to cheap, widespread mobile email for all.

So mobile email has a strong future, but it would be a mistake to expect it to replace SMS for many years yet, probably the best part of a decade. Mobile email will continue to grow year-on-year and big corporations will start deploying large scale mobile email solutions as time goes by, but mobile email for the consumer mass market remains some years away. Hundreds of millions of email-enabled devices need to penetrate the market first, alongside cheap and easy-to-use services, and technical issues around standardisation need to be ironed out before they have a chance to put people off. Remember ‘you never get a second chance to make a good first impression’. 

And where does that leave mobile IM?

Yet again we find it’s pretty much the same story for mobile IM, plus or minus a few subtle differences. Again mobile IM requires market maturity to make a big impression on the messaging industry globally. Hundreds of millions of IM-enabled handsets need to penetrate the market, interoperability agreements need to be in place and operators need to work together to ensure standardisation and the removal of technical barriers. Much of the promise around mobile IM lies in the argument that hundreds of millions of individuals already use IM services on their PCs, and these people are likely to switch effortlessly to using IM on their mobile handsets instead.

While this may eventually happen, this theory relies on a number of factors. For one, maybe these people use IM on their PCs because they sit in front of a PC all day anyway, so that’s unlikely to change. Secondly, IM on the mobile handset needs to be a perfect replica of the desktop experience, or better, in order to attract users away from a cheap wireline broadband connection to a more expensive wireless connection. Facilitating this experience will mean network operators, handset vendors and IM heavyweights such as AOL, Yahoo and MSN working closely together to ensure standardisation of handset display configuration and so on. Finally, true IM requires presence awareness in order to function as it does in the desktop environment. For operators worldwide to deploy fully IMPS (Instant Messaging and Presence Services) compliant IM services and have those service fully interoperable around the globe will take some time, and until that happens, without presence awareness, IM offers little more utility to end users than good old SMS, which everyone already has and already knows how to use.

As markets move forwards mobile IM is likely to gain increasing popularity in certain countries, such as the US and some big Asian nations, where desktop IM is already popular. For hardcore users IM is likely to be cheaper than SMS, but in strong SMS markets, such as Europe, operators will keep SMS prices low and IM prices less competitive. Cannibalisation will inevitably happen at some stage, once all-IP based networks penetrate the mass market and IMPS improves the functionality of IM, but until then SMS is likely to continue to wear the crown.

Thank you John for this interview, it was VERY insightful! :)

Tune in next Sunday for the my next visitor!

Music Discovery Channels and The $1M Question

The first five items in the “top ten list” of mobile music downloads usually represent about 40% of all downloads. This outstanding figure raises two paramount questions asked by all players in the music industry: how do people discover new music and how can the players help people discover more and more? For the players in the music industry, discovering more music means consuming more. So how do we really get exposed to new music?

One of the main channels for exposure to new information as well as to new music is the mass media. In other words, who hasn’t listened to the radio while driving and got to hear the new single released by the most popular artist? Another channel of exposure is recommendations. Everyone has a "broker" in his social network, who is someone that really knows music and recommends new music and music worth listening to. Brokers are regarded as unbiased, authentic and reliable. Brokers are people that you trust and like their taste and they can be friends, broadcasters, or even music critics...

So heading to the million dollar question, how can these channels be leveraged to promote more mobile music? The first example of leveraging mass media to discover music comes from South Korea. Korean operators invested in new technologies in order to create a more convenient user experience for buying ringback tones. Both KTF and SKT use QR codes. QR codes are 2D codes which are published in newspapers, bus stops, billboards etc’ and contain information which is captured with a cameraphone (like in the illustration above). The cameraphone reads the information stored in the QR code and the user gets his\her new ringback tone (for a commercial of QR codes follow this link to Youtube). The second example is using video clips on a music channel. While the clip is playing, a bubble of information appears on the screen offering the viewers to get this song as their new ringback tone by sending a short code via SMS. Both examples leverage existing user behavior as well as impulsive buying.

A more “techie” channel of exposure is through several web based applications. These applications are actually the technological equivalent of the recommendation mechanism mentioned above. By this I refer to many cool companies like Pandora and Musicovery that developed web tools to discover new music based on tagging, categorizing (Pandora’s music genome project is really worthy of note) and community’s recommendations (usually done by ranking). Musicovey took it a step further with links to iTunes and Amazon.

In the mobile arena, one of the pioneers is MyStrands which just launched its Social Player last week. MyStrands offers a “music player for mobile devices (Symbian Series 60, 3rd edition) with two main characteristics: it is a music discovery tool and a strong community builder”. As a music discovery tool, it provides real-time recommendations of songs that are similar to the currently-playing song. Also, 30′ clips of the recommended songs can be streamed to the mobile device, and users can always learn more about the songs on MyStrands mobile website. To watch MyStrands' demo and more just follow this link.

Hopefully, in the future we will see more of these discovery applications in the mobile arena. If operators and content aggregators would enter this field, we could enjoy a wide range of new services. Imagine getting exposed to new music through the mobile and then being able to set it as a ringback tone in just one click…

Tell Me Where You Are With Your Ringback Tone!

Usually, when you think of ringback tones you think of music played while waiting for the other side to pick up the phone and answer the call. But there's more to ringback tones than that! I have already covered in the past some study cases of operators who took the ringback tone to the next level with very creative types of content which are not necessarily music. What I haven’t thought of before is using the ringback tone to let your caller know your location!

The Broadband in India blog brings the following story of the Telecom Regulatory Authority of India (TRAI) which “has also told the mobile companies to provide a special ring back tone to the calling party when a person is on roaming. This would benefit them as the caller would realize that the person he/she is calling is not in his hometown. TRAI said in its statement: “Mobile users can activate this facility before going abroad. This will enable minimizing calls when on international roaming, if the calling party exercises restraint.”"

[via Broadband in India : India Broadband and Telecom Blog]

I really hope to see more creative ways to leverage ringback tones to provide better services for the ringback tones users. Nice work!

John White on MMS (Part II)

Welcome to the second part of the mobile messaging coverage. Today, John White of Portio Research Ltd will be visiting here and covering the MMS. If you missed the previous part you can follow the link.

Well John, the stage is all yours! :)

What is the value of MMS?
MMS generated approximately $15 Bn USD in full-year 2006, and our new “Mobile Messaging Futures 2007-2012” forecasts this rising to almost $34 Bn USD by the end of 2012.
Market size estimates Worldwide, MMS traffic volumes in 2006 reached a little over 27 Bn messages, which demonstrates remarkable growth of over 90% form the year before…when we recorded total SMS traffic at 14 bn messages worldwide for the full-year 2005.

How big is the market for MMS?
We forecast this market to continue growing healthily for several years to come, contrary to some reports than “MMS is all-but-dead”, we disagree and we see MS traffic volumes growing to reach over 131 Bn messages worldwide by the end of 2012.

When will MMS penetrate the mass consumer market?
We believe that the entire mobile industry has misunderstood MMS from the start, including most of the operators who have been working hard to drive higher adoption. MMS was sold from the start as this great successor to SMS, but that shows a complete misunderstanding of what MMS ad what has made SMS such a popular service. As explained previously, SMS owes its success to it’s utility and simplicity, it is useful, cheap, easy, quick and almost effortless. MMS is entirely different, it offers little additional utility over SMS, costs several times as much and is more time consuming and complicated to use. If anything, that makes MMS LESS useful than SMS, as a service, so why would consumers want to pay MORE to use it? We believe MMS should be seen in its own right as an entertainment service and as a premium content delivery mechanism, not as a messaging tool. SMS is all the messaging many people need, and what MMS offers is something else, something fun, the chance to send pictures to your friends…this is nice, but it is rarely an essential activity, the way many SMS messages are. As long as everyone keeps expecting MMS to follow the success of SMS, they will continue to be disappointed, but once the mobile community stops linking the two together and looks as MMS as a separate service, we can that it is a highly successful application.   

What should operators do to overcome barriers to users’ adoption?
Reduce prices, drastically. SMS is priced, in “most” markets at a price level that most people don’t have to think about. Most people just keep sending SMS messages without thinking about the cost. Once MMS can be priced at a level that people can exchange several picture messages per day without giving the cost a thought, then traffic will grow, rapidly.

Thank you John for this interview. Don't forget to tune in next Sunday for some more talkin' about mobile messaging  :)

A Jump Into the Future - Multimedia Ringback Tones

Hi everyone,

Today I wanted to share with you a new and sexy service that according to one of the Product Managers at Comverse will be the natural evolution of the ringback tones. To do things right, I'll begin at the top :)

Once, there was no choice but to hear a dull ‘ring ring’ when you waited for your friend to answer the phone. Now, follow this carefully: Tomorrow, you place a video call to your friend. Suddenly the amazing top hit by the new hip-hop group The Beatz will fill your mobile screen. You are enjoying a great top 10 video clip until your friend answers the phone. Wouldn't that be a better way to wait?

The Multimedia ringback tone takes the very popular musical ringback tone service to a whole different dimension, from the audio space to the visual video clip arena. It allows you to enjoy watching a video clip while placing calls, as well as to entertain your callers with video clips to watch while calling you.

Sounds great? I haven't said the final word yet, which is content. There are 3 types of optional content:

• Users' content - music clips, Klonies customizable avatars, self generated content, corporate content... All depending on the segment.
• Operator content - branding (logo), promotion info, operator prompts.
• Advertisement - advertisers fund phone bills in return to placing ads at the multimedia ringback tones space. Less desirable for the callers, but it's an option.

We all know that personalization is a key growth engine to mobile services and applications and it will probably keep being a key factor in the future. Having said that, the multimedia ringback tone leverages the ringback tones' success and promotes the video arena\ tusage of 3G. It harnesses the human need to self express and provides a new and creative outlet for that. Smart!

What are your reactions?

John White on Mobile Messaging

I'm happy to welcome John White from Portio Research Ltd to review the market of mobile messaging here.

John White is Business Development Director for Portio Research and has over 17 years experience in the technical publishing industry. Working in the IT sector previously and in the telecoms industry for the last 9 or 10 years, John has extensive experience in the mobile sector.

Hi John. Thank you for visiting Xellular Identity :) How are you?
Hi Xen, thanks a lot, I’m doing great thanks :)

How big is the market for mobile messaging? What are the forecasts for the mobile messaging market?
Mobile messaging is massive, the total mobile messaging market today is worth approximately $80 Bn USD and in 2007 we will see well over 2.2 trillion messages sent back and forth worldwide between mobile devices. SMS is by far the biggest player in this space, with worldwide SMS traffic volumes exceeding 1,662 billion messages in full-year 2006, generating revenues in excess of $47 Bn USD.

As if these figures are not impressive enough, we see SMS growing for some years to reach staggering worldwide traffic volumes of more than 3.7 trillion in 2012, generating a whopping $67 Bn USD in total revenues.

What are the key country markets?
The Philippines have long been regarded as the “SMS capital of the world” and this still holds true, in fact more than ever as recent changes to SMS pricing on the islands has seen traffic roaring through the roof. Elsewhere in Asia Singapore, Malaysia, Australia and China are all hot SMS markets, and of course China takes the crown as the worlds biggest SMS market due to the sheer size of the market overall. The USA is a very hot SMS market and still growing, and in Europe Denmark, the UK and Spain are all aggressive SMS markets. In Latin America, Venezuela enjoys very high usage levels and Mexico and Argentina are strong markets too.

Who are the leading operators in this market?
In the Philippines – all of them! Elsewhere, Maxis in Malaysia stand out, Telecom Personal in Argentina, O2 in Ireland and the UK and Netcom in Norway all enjoy way-above-average traffic volumes when measures on a per-subscriber-per-month basis.

How do you explain the dominant position of SMS as the worlds leading messaging technology?
It’s simple, it’s all about utility, price and simplicity. We have been saying this and printing this in our reports for some time now – SMS is useful, it serves a purpose, it can communicate a simple message from A to B quickly and efficiently at times when a voice call is not so convenient. SMS is easy, cheap, quick and many people think sending an SMS is fun. It is discreet, private, effortless and only takes a few seconds. There is no “downside” to SMS, it serves a purpose, it does the job well and it is quick, cheap and easy – what’s not to like?

How significant contributor to the overall revenue is the mobile messaging expected to be in the future?
We have not specifically forecast ‘messaging-as-a-percentage-of-ARPU’ going forward so I can’t give you exact numbers, but I firmly believe messaging will continue to be the biggest contributor to non-voice service revenues for some years to come. Currently, worldwide, voice accounts for approximately 80% of total mobile service revenues across the globe and messaging accounts for approximately 80% of all non-voice service revenues contributing to that total. AS other services grow then messaging’s dominant position will decline, but we only imagine that happening at a rate of 1 or 2 percentage points per year for the next few years, then perhaps faster once 3G becomes ubiquitous in the mass market.

What promises to sell in the future?
Mobile email, in the long term, but that’s still a good few years away for consumer mass markets.

John White will be here next Sunday for more talkin' about mobile messaging. Thank you John and see you next week! :)

Interviewing John White on Digital Music (Part IV)

Welcome to the fourth part of the digital music coverage. Today, John White of Portio Research Ltd will be visiting here. If you missed the previous parts you can follow these links: Part I, Part II, Part III.

Let's welcome John:

Hi John. Thank you for coming back, how are you? :)
Hi Xen, thanks a lot, I’m doing great thanks.

Today you’ll present the second part of iPhone…
Yes! Here’s what Portio Research has to say about it:

Top spec = top price

Many analysts and industry observers have suggested that the price tag Apple has set for iPhone is too high. We don’t agree with this, we think the prices set, USD $499 (for 4GB) and USD $599 (for 8GB version) are perfectly acceptably to the kind of consumers likely to be interested in such a top-spec handset such as the iPhone. As Jobs pointed out, the $499 price is approximately equivalent to the cost of purchasing an iPod and one of the current market leading smartphones, and we believe consumers will understand this value proposition. More importantly, Apple is only looking for 1% market share, and those 1% of consumers are likely to be in the very top tier of buyers – the kind of people who want a top spec handset and a top spec iPod are the kind of people who are not put off by a high price tag, they have the cash and they want the latest cool device, and we believe Apple will easily find 10 million such consumers in 2008.

Also, during that keynote address Jobs alluded several times to ‘the future’, to ‘more products’, to ‘changing the mobile phone industry’ and so on. Clearly Apple have plans to roll out a whole range of devices over the next few years, and just like the iPod this range is likely to include both high-end and mid-range devices, to broaden appeal to a greater selection of consumers. Two years from now we could expect to see a super-high-end 3G iPhone, perhaps boasting a 5 mega-pixel camera and a massive 60GB of storage and in-built VoIP capabilities.

Equally, at the other end of the spectrum the range may include an entry-level product with a slightly limited range of features priced lower, perhaps at only a couple of hundred Dollars. While even this lowest priced model will remain a premium product over many competitors, this is congruent with Apple’s brand strength and market positioning.

Market impact

As the months now pass after Jobs’ presentation on Jan 9th, the end-user is unlikely to notice any significant changes in the mobile handset market before 2009. Few of these devices will actually make it into consumer’s hands in 2007, at least few outside the domestic US market, and even when Apple achieves its target 1% market share – which we think it will easily achieve – still 99 out of every 100 consumers will not see any changes to the handsets they are using. However, the real significance of the iPhone will show through in the handsets made and shipped by other manufacturers, mostly those who DO ship hundreds of millions of handsets each year.

iPhone sets new standards and new consumer expectations of what a mobile lifestyle device can and should do, and while Apple defends its patents, other manufacturers will find new ways to deliver better devices with better user interfaces to the mass market. We await the 2008 handset ranges from Nokia, Motorola, Samsung and SonyEricsson with great anticipation. The challenge is there to be met, and if these huge players in the handset industry meet it, that can only be good news for everyone, especially consumers.

Thank you John!

This ends up this coverage of the Digital Music market in 4 parts, brought by John White of Portio Research Ltd. Tune in next Thursday for my next series! :)

Enlarging The Pie

According to Cellular News, the mobile content and services market will continue to grow dramatically as services and applications reach maturity and new services begin to gain traction, and the value of the mobile entertainment market, including music, games, TV, sports and infotainment, gambling and adult content is forecast to increase from $17.3 billion in 2006 to nearly $77 billion by 2011, while content aggregators are fleeing the ringtone dance floor and struggling to look for new ways to increase mobile content consumption.

The latest vendor is Moderati, a Santa Monica, California-based ringtone provider. The company has announced that it has been acquired by Bellrock Media, a content company with operations in the in the United States and Japan.

Content Providers should work together with the operators so they could have a better offering for the consumer. What I mean by this is, for example to offer bundle of a ringtone, ringback tone, a video clip and a wallpaper of the hottest music artist on the neighborhood. This enlarges the pie and each player's share of the pie. So everyone wins eventually.

Interviewing John White on Digital Music (Part III)

Welcome to the third part of the digital music coverage. Today, John White of Portio Research Ltd will be visiting here. If you missed the previous parts you can follow these links:

Interviewing John White on Digital Music (Part I)

Interviewing John White on Digital Music (Part II)

Let's welcome John:

Hi John. Thank you for coming back, how are you? :)
Hi Xen, thanks a lot, I’m doing great thanks.

Today you’ll be covering the iPhone…
Yes! Here’s what Portio Research has to say about the iPhone:

The day after we published our ‘Digital Music Futures 2007-2011’ report, Steve Jobs of Apple Inc. announced the impending release of the new iPhone. What impact will iPhone have on the mobile music market?

It would be hard for anyone to deny that once again Apple have produced a stunningly desirable looking device. The iPhone that Steve Jobs unveiled on Tuesday 9th January, during his keynote presentation at the MacWorld Expo in San Francisco, looks cool, sexy, fun, easy to use and extremely powerful. Apple has surely set a new benchmark for the user interface. What does this mean for the mobile industry and who will see iPhone as a threat, and who will see it as a reason to celebrate?

Good news all round

The answer is that most players in the mobile industry should find this announcement a good reason to celebrate, as this is generally good news for most players and good news for the industry as a whole. We have argued for years that the user interface on most mobile handsets needs to be easier to use to encourage greater use of non-voice services, and while Jobs stated that Apple have filed many patents with this product, which they intend to defend, a standard has clearly been defined and other manufacturers must now step up and meet the challenge.

The iPhone certainly does not represent a major threat to the dominant position of the leading handset vendors. Apple has set a target of achieving 1% market share in 2008, that’s sales of 10 million iPhones in a market of 1 billion handset sales. Considering the high-profile announcement and the months of rumour and speculation that preceded it, a target of 1% after 18 months in the market seems quite low, but that simply emphasises that the iPhone is not targeted as a mass market device.

One of the defining factors that separates Apple products from the rest of the market is the innovative design and the uber-cool image that consumers attached to many of Apple’s products. If this chic, leading-edge image was lost then a lot of the appeal of Apple, and the premium price fans pay, would be lost, so it is actually not in Apple’s interests to become a mass market manufacturer with double digit market share. Just take a look at what happened to the Motorola RAZR. When it was first released it was expensive, chic, desirable and very up-market, yet within 2 years the device is so widely distributed that it is now considered “old news” and it has lost all its cutting edge fashion appeal. That simply is not a space Apple wants to occupy.

Finding a place in the market

In the broader mobile handset industry, Nokia will ship well over 300 million handsets in 2007 and 2008, Motorola should ship well over 200 million, Samsung over 100 million and SonyEricsson should also be aiming to reach close to 100 million. Compared to these, Apple’s target of 10 million should not be cause for any great concern. Where Apple will be causing major worries is in the high end smartphone and PDA market. Manufacturers such as Palm, RIM, Dell, HP and i-mate have every reason to be concerned, and devices such as the Motorola Q, the Samsung Blackjack and the Blackberry range from RIM now face serious competition from the iPhone.

Apple has a number of challenges ahead, not least the lawsuit launched on January 10th by Cisco for infringement of its copyright name, iPhone. Beyond that legal dispute, Apple needs to ensure it has sorted out hardware issues that have plagued iPod. While most consumers can suffer having no portable music player for a few days or even a week or two, while there iPod is being repaired, such breakdowns are totally unacceptable with a $500 Dollar smartphone. The kinds of consumers who pay top-Dollar for a fully featured smartphone don’t like to be parted from their device for an hour, let alone a week. Hopefully such hardware issues will not be a problem. Apple computers have always met high standards of quality and reliability, and as a niche product hopefully the iPhone will also be built to industry leading standards.

OK Xen, I'll tell you more about the iPhone next Thursday, so stay tuned!

Thank you John!

Interviewing John White on Digital Music (Part I)

I'm happy to welcome John White from Portio Research Ltd to review the market of mobile music here at Xellular Identity.

John White is Business Development Director for Portio Research and has over 17 years experience in the technical publishing industry. Working in the IT sector previously and in the telecoms industry for the last 9 or 10 years, John has extensive experience in the mobile sector. John has been Editor and contributing author for the newly-released Digital Music Futures 2007-2011 report. 

So first, let's meet John:

XM: Hi John. Thank you for visiting Xellular Identity :) How are you?
JW: Hi Xen, thanks a lot, I’m doing great thanks, I hope you are too?

XM: I'm great thanks, great things are happening lately! What brought you to the world of mobile?
JW: I spent a lot of time working in IT and publishing, and I came into the world of mobile through that route about 10 years ago, as a publisher.

XM: What takes up your time other than mobile?
JW: Mostly my three kids, but also my wife, my dog, running, kung-fu, a lot of reading, a bit of rock climbing, fixing up the house, trying to keep my family as ‘green’ and environmentally friendly as possible, enjoying watching lots of movies and many more interests besides…when my children allow me time for them!

XM: Well, heading going to the music market, what are the estimates for mobile music market for the next years?
JW: Overall, we forecast 5 or 6 years of healthy growth for the entire digital music market. How much of that market is mobile will depend on a number of key factors, not least price.

XM: The guys at Mobhappy predict that: “Full-track music downloads over mobile will largely fail, leading operators and content providers to finally realize there are other aspects to mobile music”. What do you think?
JW: Reading that article, I can only agree that IF price and user-friendliness are not sorted out, full-track OTA downloads will never take off as a mass market service. Operators and record companies need to work together to set the price at the right competitive level to stimulate demand. OTA downloads cannot command much of a premium over wireline downloads, as the value-add is pretty minimal. Maybe some teenagers may think that downloading the latest music track from a certain artist is an essential activity that cannot wait a few hours, and so those few may be prepared to pay a substantial premium for the service. But, for the majority of people, if an OTA download is twice the price or five times the price of the same track bought online using a wireline connection, then most people will be happy to wait until they are at home and can download the track for much less. With iTunes setting the $0.99 USD / £0.79 GBP price point as an industry benchmark, we believe that MNOs will be limited to pricing OTA downloads in the $1 to $2 Dollar (approx £1.50 GBP) range in order to remain competitive. MNOs may think this sounds low, but if it successfully stimulates high demand and the MNOs then manage to win considerable market share, establishing themselves as a major route to market for record companies, then the prices should lead to a solid boost to ARPU through growing volumes of downloads.

XM: Lately, I hear many speak about the decline in the ringtones market, is this correct? What is the reason for this trend? What about ringback tones?
JW: Yes, we believe so - let’s face it, if full track downloads are priced at only 1 or 2 dollars, who will want to pay $5 bucks for a ringtone? Of course, we do not forecast instant overnight destruction of the ringtone industry, no, as there will still be huge (and growing) demand in markets where music download services are not yet available. Ringtones and ringback tones will continue to grow in the huge Asian markets (China, India, Thailand, Bangladesh, Pakistan, Indonesia, etc) and in other regions, but in 3G markets such as Western Europe, as OTA music download services proliferate, ringtone prices will surely collapse. Demand for ringtones will diminish in these regions over the coming years.

XM: How does the mobile music industry affect the global music market?
JW: The overall value of the worldwide music industry has been in decline for several years, falling from a high-point of $39.7 billion USD in 2000 to just $32.1 billion USD in
2006. However, we believe that the value of the global music market is set to reverse and grow again back to $38.8 billion USD by 2011. The reason for the growth in the market is the increased consumption of digital music. Revenue from physical sales of music (CD singles and albums) will continue to decline, but the value of digital music will grow over the coming years. Mobile will contribute to this growth, but as mentioned previously, it all depends on getting the price and marketing right.

John White will be here next Thursday for more talkin' about the music market. If you can't wait, you can read more info regarding the report on Digital Music Future by Portio Research, you can follow the link.

Thank you John and see you next week! :)

Communication Technologies in Fiction

I was going through Cellular News and found the following:

"A novel in which the entire narrative consists of mobile phone text messages was published Wednesday in Finland. "The Last Messages" tells the story of a fictitious executive in Finland who resigns from his job and travels throughout Europe and India, keeping in touch with his friends and relatives only through text messages.

His messages, and the replies, roughly 1,000 altogether, are listed in chronological order in the 332-page novel written by Finnish author Hannu Luntiala. The texts are rife with grammatical errors and abbreviations commonly used in such messages."

[via Cellular News]

This made me try to remember if I have ever read about a mobile phone in fiction (not in professional literature)... I couldn't think of any examples... However, I do remember that the first and only time I've ever read about an IM conversation was in Haruki Murakami's "The Wind-Up Bird Chronicle" written back in 1995! I don't want to spoil the fun so go grab the book, be amazed from the prehistoric IM chat session described and enjoy.

If you happen to know who was the first author to describe\write about the telephone, mobile phone, TV, PC etc' in fiction\literature please comment or drop me a line. Thanks :)