Lincoln Murphy emailed me to ask for some pointers for his research project. Whilst I’m always up for waxing lyrical about what I reckon is going on, I thought it might be a bit more useful to cast the net wider for him. Lincoln is wondering if aggregators and large ASPs take an active role in the success of their lower-tier clients. Some do, I know. However I’m not so sure if everyone does. In fact I can recall coversations with some aggregators who don’t want to do business with smaller clients (offering obviously less traffic and of course, less revenue.)

I’m going to plug him into SMS Text News sponsor, Clickatell too. However if you’ve got time, perhaps you could knock over your perspective to Lincoln. Here’s what he’s looking for:

I’m working on a research project based around the relationship between upper-tier mobile service providers in the United States (network aggregators and top-tier ASPs) and their clients (smaller ASPs, pureplay mobile companies, SaaS integrated, etc.) The goal of my research is to find out if aggregators and large ASPs take an active role in the success of their lower-tier clients. Do the upper-tier providers consider this a distribution channel relationship or do they look at it as purely a “customer/vendor” relationship?

Additionally, I am interested in what challenges clients of ASPs and network aggregators are facing, what type of post-sales support their service provider offers, how much assistance and/or guidance the service providers gives them, etc. I am aware of the network/technical monitoring that aggregators and ASPs will do, and that there might be notifications made by account reps if there is a drop in SMS traffic. However, that is not the type of post-sales support that I’m researching.

I am intrigued to see what the readers of SMS Text News have to say about their experiences in working with upper-tier service providers. Of course, I would also love to hear from aggregators and top-tier ASPs about what they do to help their lower-tier clients develop their businesses.

Thanks,

Lincoln Murphy
http://www.lincolnmurphy.com
lincoln[at]lincolnmurphy[dot]com

Link: undefined

72% of UK consumers say they have no intention of ever purchasing the iPhone, with the vast majority of Britons saying the device looks good, but is far too expensive, according to a survey by market research firm GfK NOP.

I’ve been wavering on the iPhone in the UK. Really wavering. I wonder if I’ve over estimated the appeal of the device versus the UK public’s pinpoint knowledge of phone price plan norms.

£270 for the device followed by £35 a month — that gives you 200 minutes and 200 texts — is a patently useless basic price plan. Yes you get unlimited data, but for your chap on the street, it’s the minutes and texts together with the cost of the handset that actually influences the purchase.

Portio Research have launched their latest worldwide mobile market statistics report containing a wealth of data:

Link: Portio Research

• Top 40 MNOs by Subscribers (31st December 2006)
• Top 20 MNOs by Revenues (31st December 2006)
• Top 15 MNOs (Groups) by Subscribers (31st December 2006)
• MNOs with Highest ARPU (FY 2006)
• MNOs with Lowest ARPU (FY 2006)
• Key Performance Indicators for Top 20 MNOs
• Top 10 MNOs in Europe by Subscribers (31st December 2006)
• Top 10 MNOs in Asia Pacific by Subscribers (31st December 2006)
• Top 10 MNOs in North America by Subscribers (31st December 2006)
• Top 10 MNOs in Latin America by Subscribers (31st December 2006)
• Top 5 MNOs in Africa and Middle East by Subscribers (31st December 2006)
• Top 10 MNOs by ARPU (FY 2006)
• Top 10 MNOs by ARPU in the Emerging Markets (FY 2006)
• Ranking of Regions in Terms of Year-on-year Subscriber Growth Rate in 2006
• Top 30 Mobile Markets By Subscribers (31st December 2006)
• Mobile Subscriber Base Growth by Region (2007–2012)
• Top 20 Growth Markets (2007–2012)
• Top 10 SMS Markets (Year-end 2006 est.)
• 2006 Quarterly Handset Shipments (In Million) by Major Vendor
• Handset Shipments 2006 - Market Share Comparison for Major Vendors
• Handset Shipments 2006 - Regional Break-out (2006)
• Top 10 Wireline Markets
• Top 20 Broadband Markets
• Top 30 Internet Markets

Link: Majority Do Not Want Mobile Phones on Planes - Survey

Following on from news that the Telegraph’s campaign to ban mobiles on flights has reached 4,000 signatories, travel website TripAdvisor has carried out a worldwide survey and come to a very similar conclusion - phones on planes are bad bad bad..

According to a survey of travel trends by the website, TripAdvisor - some 78 percent of travelers believe that mobile phones should not be allowed on flights. TripAdvisor said that it surveyed more than 2,500 travelers from around the world for its annual trends report.

“The major trends we’re observing are that travelers value cleanliness above all else and are becoming more environmentally conscious,” said Michele Perry, director of communications for TripAdvisor. “Based on TripAdvisor’s TravelCast, the top emerging world destination is Jerba, Tunisia, and Thailand is the hottest country, featuring two destinations in the world’s top ten.”

According to mobile media research firm M:Metrics, text shortcodes are the most effective platform for mobile advertisers in the US.

“In the United States, CSCs represent the only universal way for brands to connect with almost all mobile users,” said Evan Neufeld, vice president and senior analyst at M:Metrics. “In August 2007, 92.5 million, or 43 percent, of mobile subscribers actively engaged in text messaging. Of these 92.5 million mobile subscribers, 41 million send text messages almost every day. Not only is this number impressive as a stand-alone figure, but it is exponentially higher than the potential reach of the next available mobile advertising method.”
“CSCs create a level of interaction that is unparalleled in any other medium,” said Diane Strahan, vice president of mobile at NeuStar. “The M:Metrics study offers detailed proof of what mobile marketing-savvy organizations across many industry verticals have speculated: that CSCs provide brands with the broadest and the most targeted way to reach today’s mobile consumer. As texting continues to increase in popularity, advertising agencies and marketers are focusing more and more on CSCs as a preferred mobile medium of choice. These firms are embracing CSCs not only to reach today’s on-the-go consumer directly, but also to transform traditional print, broadcast and outdoor advertising into truly interactive touchpoints — thus building significant loyalty among key audiences.”

Link: SourceWire | Press Releases - iO global to Launch Trial of Three-Screen Marketing Practices

iOâ„¢ global, the innovative worldwide provider of integrated digital retail solutions, is launching a three-screen trial to measure the effectiveness of integrated mobile-TV-PC marketing practices. For the first time, publishers, advertisers and agencies and a digital retail solutions company are joining forces to establish a framework for demonstrating ROI on three-screen marketing initiatives.

iO global is partnering with several major media companies and advertisers to deliver branded content to a sample of consumers. The trial will kick-off in January, 2008. Participating publishers and advertising agencies will have access to behavioural and purchasing data, as well as brand health measurements collected during the trial.

I think this will yield som fascinating results. More from iO Global here.

Hmm, I wonder…

Link: SourceWire | Press Releases - Juniper Research expects spectrum scarcity to block mobile TV launch in UK until at least 2010

The number of mobile broadcast TV subscribers in Western Europe is expected to pass 20m by 2011, according to a new report from Juniper Research.

However, following the exit of the BT/Virgin Mobile DAB-IP offering from the market, the UK is not expected to relaunch mobile broadcast TV services until 2010 at the very earliest, well behind most of its European neighbours.

It wasn’t like that in my day, I tell you…

Heh… have a read of this:

Link: SourceWire | Press Releases - Young People Can’t Survive Without Their Mobile Phones

Young people are almost as dependent on their mobile phones as they are on cash. According to new research commissioned by LINK, these are the two items that 18 to 24 year olds see as basic necessities.

The poll was conducted by YouGov on behalf of LINK to raise awareness of mobile phone top up facilities at cash machines. More than 2,000 GB adults that own a mobile phone were asked which items they would be most upset to be without. Topping the polls as the most needed possession for 18 to 24 year olds was cash, with 30 per cent saying they would be most distraught without it. In second place were mobiles, with 23 per cent stating they couldn’t survive without one.

The survey results also showed that 18 – 24 year olds would be more willing to go without alcohol, chocolate and sex for 24 hours, than their mobile phone.

For some time now you’ve been able to top up your pay-as-you-go mobile from ATMs — I think this is an excellent service and I wonder how well it’s being used.

Graham Mott, head of planning and development at LINK, said, “The survey highlights that mobile phones and cash access are people’s top priorities, and cash machines now provide a one stop shop to top up your phone and withdraw cash. This quick and easy service is available at any time of the day from any cash machine displaying the green top up logo. You can now top up mobile phones at over 42,000 cash machines across the UK.”

You can find out more information about tapping in (your pin) to top up here.

This just in from US mobile network AT&T. According to a recent survey, 42% of American small business owners reckon they couldn’t survive without mobile technology.

Four in 10 of small business owners surveyed said they could not survive — or it would be a major challenge to survive — without wireless technology. This trend will likely increase because more than half (51 percent) of the respondents said they rely on wireless technology more today than two years ago, and more (55 percent) said they expect to depend on it even more two years from now.
“Wireless technology is a critical tool that allows small business owners to stay in touch with customers, suppliers and staff while on the go,” said Carrie MacGillivray, senior analyst, Mobile Enterprise Network Services, IDC. “It is not surprising that small businesses indicate that wireless communications capabilities play a critical role in business success.”
The increased demands of a personal life and owning a small business mirrors the concurrent growth in small business owners’ reliance on wireless technology. Of the 41 percent of respondents who said they were very likely to conduct business while away from the office, more than half (53 percent) said the success of their business depends on wireless technologies, such as mobile phones, PDAs and PC data cards. Additionally, half (49 percent) said they are optimistic about wireless technology giving their business a competitive advantage while only 16 percent of those polled disagreed with that statement.
“Small businesses are more nimble and flexible than ever before, and they need telecommunications solutions built for them by people who understand their needs,” said John Regan, vice president of Small Business, AT&T. “Today’s small business owners have more choices than ever for wireless handsets, Wi-Fi access points, smartphones and other technologies that help keep them connected even when they’re away from the office — whether that’s traveling to meet with customers or staying connected with their business while away from the office.”

The increasing deployment of multiple mobile payment technologies and liberalisation of remote gambling legislation in key markets is expected to push total annual wagers on mobile phones to nearly $12bn by 2010, according to a new report by Juniper Research.

Mobile lotteries are expected to be the most popular service by the end of the forecast period, with more than 380m users worldwide. According to report author Dr Windsor Holden, “Mobile lotteries have already experienced significant levels of adoption in the Far East, while we envisage that European state lotteries will increasingly embrace the mobile environment in the medium term.”

The report added that growth would also be fuelled by market liberalisation such as the UK’s Gambling Act which came into force on September 1, and by proposed amendments to existing legislation elsewhere in Europe. Furthermore, it suggested that in the longer term, there would also be opportunities in the US market.

“The intimations from the US are that the act will be repealed or at least reformed,” said Holden. “Should that be the case, then, facilitated by location-based technologies, in-state mobile lotteries, betting and possibly casino services will be available in that market by 2010.”

Had a note in from an SMS Text News reader, who posed an interesting question.

i have a friend who is going to be in tokyo in the next couple of months… she wants to be able to stream back a couple of hours of LIVE video of her walking around tokyo — basically doing live newscasting from the streets. this needs to be reliable(ish) and cheap… so really we need a solution that becomes internet-delivered as close to source as possible to save on any network charges…. (and needs to be accessible this end via a pc or mac)… obviously a laptop plus 3g card and/or access to a wireless network, plus a videocam would work, but we’re hoping for something more lightweight… an ip-enabled video mobile with flat rate 3g data would be perfect… but being japan there are almost certainly problems with carriers, proprietary data formats, internet gateways/proxies etc… know anyone who knows japanese mobile data inside out and wouldn’t mind a call? there’s really no money in this, but it would be great if we can pull it off!

I suggested 3G to 3G video calling, with something like an N95 with AV out at the other end to turn it into something useful. However, that opens a can of worms of whether it’s actually possible to make a 3G video call from Japan back to the UK.

As the reader says, there’s no real budget in it - but it’s hopefully interesting enough to spark someones interest

Link: No mobile means poverty, say children | Technology | The Guardian

Almost half of children in some parts of Britain think that not having a mobile phone means a child is poor, according to a poll commissioned by Dare to Care, a new volunteering campaign aimed at tackling child poverty. Not being able to afford to go on a school trip is the next most telling indicator of poverty for 44% of children across Britain, and a similar proportion think that not having the correct school uniform makes you poor

That’s shocking - really shocking! The article is quite lengthy, but worth a read.

(Thanks to Natasha for the tip)

Link: MediaPost Publications - Study: Mobile-Savvy Boomers The Norm, Not Exception - 09/19/2007

New research carried out in the USA reveals that the older generation aren’t far behind their younger counterparts when it comes to use of mobile features.

InsightExpress surveyed more than 2000 mobile users across the country, separating them into Gen Y (18-24), Gen X (25-44), younger Baby Boomers (45-54) and older Baby Boomers (55-64).

Mobile penetration was unsurprisingly high across all age groups, with 85% of those in Gen Y and 82% in Gen X having a mobile, with the younger boomers coming in at 80% and older boomers at 79%.

What was interesting, however, was the usage of text messaging amongst the older generation. 16% of younger boomers and 10% of older boomers sent or received text messages daily - that compares to 43% and 22% of Gen Y and Gen X.

Director of mobile research at InsightExpress Joy Liuzzo said about the results: “They realize that sending a text message is quick, they can check in with someone, make sure everything is alright and it’s done. No need for a phone call

“As more Boomers come to view text messaging as a convenience that makes communication faster and easier–adoption rates (and potential for mobile marketers) will grow. Think of a pharmaceutical company with a product that’s supposed to be taken once a month. Users could create an account on the company’s Web site and register for an SMS reminder.”

Revenues from mobile dating and chatroom services are expected to pass $1bn by 2010, according to a new report from Juniper Research.

Globally, the number of users of such services is expected to rise from just over 40m in 2007 to 260m in 2012, driven by strong demand in both developed and emerging markets, including more than 60m users in the Indian sub-continent.

According to report author Dr Windsor Holden, “Major brands such as Match.com and Webdate have recognised that customers are willing to pay a mobility premium for 24/7 access to these services and are increasing deploying mobile applications to complement and enhance their existing offerings.”

Holden added that the sector was also becoming increasingly attractive to start-ups seeking to launch cross-platform services from the outset.

“The increasing proliferation of 3G handsets and a mean that companies are increasing confident of introducing converged services at the outset. Furthermore, those companies which embrace such a strategy - such as Flirtomatic - are experiencing significantly higher levels of traffic from their WAP users than from their users on the fixed internet.”

The report  cautions, however, that usage was being retarded in many territories by excessive and confusing data pricing, stating that the high costs of data - particularly for prepaid customers - were continuing to act as a disincentive for regular usage and more widespread adoption.

Link: Vote 2Moro: It Works - The Caucus - Politics - New York Times Blog

A new study released this week found that young people are more likely to vote by 4.2 percentage points if they receive a text message reminding them to show up to the polls.

The survey found that most of the recipients, and especially Hispanics, found the message helpful — unlike their reaction e-mail. But here’s the result that could be the most compelling to the campaigns: Each additional vote generated by the text message cost an average $1.56.

Link: iPhone didn’t beat ALL Blackberries in July - News - Tech.co.uk

As part of the ‘ooh look we sold truckloads of iPhones’ story that was around earlier this week, there was an interesting line from market research company iSuppli, claiming that it’d “comprehensively beaten its smartphone rivals - including RIM’s Blackberry series - to take the number one sales slot in July”

Obviously some people at RIM (who make the Blackberry) weren’t too chuffed about this, and a few phone calls later (probably involving highly paid lawyers)  it emerged that what iSuppli meant to say was that the iPhone had outsold individual Blackberry models - not the range as a whole. In fact, the range as a whole outsold the iPhone by a factor of 2:1.>As the article in Tech points out, the iPhone has sold well. That’s an undisputable fact. However, claiming it’s beaten all your rivals - especially when most people think that a Blackberry is one device, and not a range of models - is not a very clever thing to do.

I’ve quoted the whole of the Juniper Research press release here about their latest report. It contains some challenging perspectives. On-Portal revenues, I think, are doomed, depending on the individual operator strategy. If MNOs are able to keep folk restricted to using shitty, limited devices then, yes, people will have no choice but to download a five quid ringtone… open it up to the marketplace in general though, and things might get a lot more innovative.

My personal favourite? Dump Pipe. Stick to the knitting Mr Operator!

Link: SourceWire | Press Releases - Smart-Pipe Strategy to Provide MNOs with 31% Share of $188bn Mobile Content Market by 2012

Non-messaging mobile content revenues (including advertising) will reach $188 billion by 2012, according to the latest report by Juniper Research Limited. However, the question of which category of player will retain the largest portion of this pool of revenues is still very much open to debate.

The focus in the industry is currently on how to generate revenues from non-messaging mobile content, but there is a very poor understanding of why revenues are being shared at all, and what is being paid for. The report explores new business models that will distribute revenues among mobile content providers under three different scenarios, identifying who will retain the greatest proportion of available retail revenues and why.

Dumb Pipe

In the first scenario, mobile network operators (MNOs) themselves are reduced to Dumb Pipe status by aggressive end-user retail revenue-seeking activity by content owners, search engines and other branded service providers. This is the fastest road to bankruptcy for MNOs, since they will only retain a maximum of 24% ($44.7 billion) of the non-messaging mobile content market, while content providers will make 63% ($118.7 billion) and third parties around 13% ($24.5 billion).

On-Portal

The On-Portal scenario suggests that MNOs will continue to attempt to implement the vertically-integrated model currently prevalent in developed North East Asian markets. Although MNOs will retain up to 30% ($57 billion) of revenues, the increased negotiating power of content providers means that the lion’s share of 67% ($126.3 billion) will go to them, while there will be less space in the market for third parties, who will only retain around $4.5 billion.

Smart Pipe

The Smart Pipe scenario enables new business and revenue models to emerge that support the delivery of flexible, applications-centric value configurations – like search, imaging and information services – based on the core competencies of the various players. Under this scenario, mobile network operators are able to generate a small retained revenue upside (31%, or $58 billion) by making a range of business-to-business services available to a larger number of third parties.

“Mobile network operators have nothing to lose by looking at alternative business and revenue models that enable them to blend a retail strategy with a well-articulated business-to-business and wholesale approach that capitalises on the network- and subscriber management requirements of an increasing array of downstream service providers” says Sue Uglow, report author. “This requires a step-change in the mindsets of most MNOs, but we are beginning to see movement in this direction.”

Uglow maintains that reducing focus on retail revenues will increase profitability for many service providers. “Some providers may need to relinquish the end-user relationship as the costs associated with reaching consumers of non-messaging mobile content will exceed the revenues available. Profitability will become a more important long-term indicator of success than revenue”, she concludes.

Link: Cells ‘react’ to GSM signals claims research | The Register

New research claims that cells can react to a GSM-like signal in as little as ten minutes - though if whether this could causes cancer remains open to interpretation.

Those who believe that mobile phones do cause cancer, and/or a wide variety of other ailments, suffer from two problems: the fact that long-term studies have shown no causal link, and the fact that there is no known mechanism for phones to affect cells. This study would seem to address the latter issue.

Link: BBC NEWS | Business | Mobile phones ‘eroding landlines’

According to a report from UK phone regulator Ofcom, calls made from mobiles now account for more than a third of all time spent on the phone.

Last year mobiles accounted for 82 billion minutes, out of an overall total of 234 billion. The report also said that 9% of UK households rely solely on a mobile, compared to 7% that only have a traditional landline phone.

Ofcom spokesman Peter Phillips said: “There are more households which are now mobile-only in terms of their phone. The first quarter of 2007 is the first time that has happened”.

Social networking on mobiles has seen an increase recently, with market leaders MySpace and Facebook taking the top two places.

According to the latest m:metrics mobile phone usage survey, around 12.3m users in the US and Europe accessed a social networking site from their mobile in the three months ending June 2007. That equates to around 10% growth across both regions.

MySpace is way ahead in terms of mobile users, with 3.7m in the US and 440,000 in the UK. In comparison, Facebook has 2m mobile users in the US and around 307,000 in the UK.  

The U.S leads the way with 3.5 percent of all mobile subscribers using their phones for social networking, followed by Italy with 2.8 percent. The U.K. trailed with 2.5 percent and Spain had 2.3 percent.

More interesting statistics in the m:metrics press release.

I need someone to write me a report — a comprehensive, in-depth one — about the mobile industry and how it developed in the United Kingdom. I need it as a ‘primer’ for someone who doesn’t know anything about the industry — but wants to have a good understanding of how the whole thing started and grew.

Here’s what I’m looking for in a bit more detail:

Describe the development of the mobile cellular industry in the United Kingdom, starting from it’s inception in the early 1980s through to the 3G license auctions and beyond to the present day.

Include key dates and milestones (for example the launch of new cellular operators, major acquisitions, brand changes and so on), together with supporting statistics and anecdotes demonstrating the development of the industry (e.g. Big Brother and X-Factor/Pop Idol really helped solidify the demand for text services).

In terms of size, think 40-50 pages with a few nice diagrams too.

If you’re up for doing it, please shoot me an indicative cost and send me a link (or samples) of your previous work. If you’ve got any recommendations for someone I should speak to, please let me know.

As ever, I’m ewan@smstextnews.com

Link: Mobile User-Generated Content Revenues to Rise Tenfold by 2012

Social networking services will dominate a burgeoning market for mobile user-generated content, according to a new report from Juniper Research. Globally, end-user generated revenues from social networking, dating and personal content delivery services will increase from US$572 million in 2007 to more than US$5.7 billion in 2012, with social networking accounting for 50% of the total by the end of the forecast period.

According to report author Dr Windsor Holden, “Even though social networking sites are in their infancy, the exponential growth experienced by a number of mobile service providers - in some cases achieved primarily through viral marketing - would seem to affirm that there is huge potential in this area. The key challenge now is for those providers to monetise that interest.”

Link: US punters gobbling up mobile data | The Register

The Register is reporting that between April and June this year, the US wireless business made $5.85bn from data, an increase of seven per cent on the same period last year, and contributing nearly 17 per cent to total revenues.

In the UK, operators like data to be about 20 per cent of revenue, with some aiming for 25 per cent, but they always include SMS revenues in that figure, making it hard to establish just how many punters are really using the whiz-bang mobile data services.

In the US, around half of the data revenue is coming from new data services. T-Mobile, for example, is getting 53 per cent of its data revenue from non-messaging services.

There’s plenty more stats in the full report, courtesy of technology and strategy consultants Chetan Sharma.

Link: Nine of 10 Americans Would Support New Laws to Ban Driving While Texting, According to New Poll

Interesting news in from the US of A, with recent research showing that 89% of American adults believe that sending text messages or emails while driving is “distracting, dangerous, and should be outlawed”.

The survey, commissioned by mobile messaging service Pinger and conducted by Harris Interactive, also found that 91% of those questioned said they believed drivers distracted by tapping whilst driving were as dangerous as drivers who’d have a couple of drinks.

More on Pinger on a later blog entry, as I think it’s worth a separate post on it’s own. In the meantime, you can enjoy a few more stats from the original press release.

Link: Half of European calls to be mobile by 2008 | The Register

Telecom and IT consultants Analysys are predicting half of all phone calls made in Europe will be made on our mobiles by 2008.

According to their report, Finland is the most mobile-using nation in Europe, with 74.6% of all phone calls made on the go during 2006. In Germany, 24.3% of all calls originated on mobile networks during the same period.

However, there’s a twist. This increase is not due to us making more calls on our mobiles - instead we’re relying on traditional fixed lines less. Good news for the mobile networks, but not so great for the traditional telcos.