Apple/Google spat represents opening shot in high-stakes wireless data battle

EL SEGUNDO, USA: Apple Inc.’s recent move to reject Google Inc.’s Google Voice software from its App Store represents an initial skirmish in the escalating battle among wireless operators, cell phone makers, and content developers and aggregators over who will control revenue generated by applications and data services, according to iSuppli Corp.

Google Voice is a free Voice-Over-Internet-Protocol (VOIP) application that provides no-cost phone calls in the United States along with a range of services, including call screening, voice mail with transcriptions and Short Messaging Service (SMS).

With Apple not giving a reason for rejecting Google Voice, speculation has been rife that the company’s wireless operator for the iPhone—AT&T—demanded the application’s denial, fearing it could erode its service revenue from iPhone subscribers.

Apple’s move, and the news following afterward that Eric Schmidt—chief executive officer of Google—would resign from Apple’s board, reflect changing circumstances in the global wireless industry due the rise of data applications and services for the new generation of smart phones.

“The explosive growth in wireless data service revenues, mobile applications and smart-phone device unit shipments during the past two years is spurring a dramatic shift for the global cell phone industry,” said Dr. Jagdish Rebello, director and principal analyst with iSuppli.

“Companies including Apple, Google, Nokia, RIM and Microsoft are trying to muscle in on the wireless carriers for a share of the lucrative and growing mobile premium content, service and application pies. Regardless of who wins, this battle will alter the balance of power in the mobile value chain.”

Global revenue for wireless data services, excluding messaging, is projected to grow by 26.2 percent to reach $87.7 billion in 2009. This follows 57.1 percent growth in 2007 and a 60.3 percent expansion in 2008 for total data revenue among the world’s wireless carriers.

iSuppli is forecasting that total data revenues of carriers worldwide, excluding messaging, will grow to approximately $188 billion by 2013. In contrast, total revenues for all services offered by the world’s wireless carriers will remain roughly flat at approximately $866 billion in 2009.

Mobile applications, such as those on Apple’s App Store, are key to stimulating the data service revenue growth.

“Clearly, mobile data revenue is key to the continued health of wireless carriers and the cell phone value chain in the future,” Rebello said. “In this battle, ownership of customers and who can monetize data services and applications are up for grabs.”

Apple’s rejection of Google Voice is a dramatic illustration of this fight for data revenues.

“By introducing applications and services that allow customers to make calls and send text messages without paying the operators, wireless operators have no incentive to invest in network upgrades,” Rebello said.

“This is the reason why many carriers are pushing out the upgrades of their networks to 2010/2011, compared to 2009/2010 before. With billions of dollars in expected investments, the stakes are huge for the wireless carriers.”

The figure presents iSuppli’s forecast of global wireless data revenue excluding messaging revenue.

iSuppli: Global Wireless Operator Non-Messaging Data Revenue by Country (Millions of US Dollars)Source: iSuppli, Aug. 2009

Wireless carrier success strategies
To sustain the growth momentum in data revenues while maintaining their relations with other players in the value chain, wireless carriers must develop and implement carefully thought-out business models. Operators need to develop strategies that are built around four central tenets:

* Monetizing broadband access.
* Co-operating with the mobile value chain to develop and offer compelling applications and content.
* Offering revenue-generating services that take advantage of mobility.
* Leveraging mature billing capabilities and inherent customer trust to develop new applications that can take the industry to the next level.

Specifically, it’s critical for wireless service providers to implement new strategies and to develop business models optimized for each of the different revenue opportunities in mobile broadband access, content and applications marketing and value-added service offerings

“Failure to do so will result in contraction in data and total revenues, excessive subscriber churn and a slowdown in market development,” Rebello warned.

Mobile service, Facebook app locates friends via their mobile devices

DENVER, USA: Useful Networks and Inta SpaceTurk, in partnership with Turkcell, the leading communication and technology company of Turkey, launched sobbe, a cutting-edge friend finding service.

Useful Networks has already launched this service in the US, UK and Sweden under the name sniff, which stands for social network integrated friend finder as the service includes a Facebook application that lets users find their friends from the web.

This hot new service from US based company, Useful Networks and Turkish based company, Inta SpaceTurk, allows you to locate your closest friends and family anytime and anywhere by identifying their location via their mobile phone signal. It then delivers the location via a text message or within Facebook -- even providing a detailed map of the vicinity.

The permission-based application provides complete privacy control for all “sobbes” (or locates) -- meaning only two people who have mutually accepted and established a sobbe relationship can locate one another. Friends have complete control over who sees them and when, thanks to the ability to instantly switch between being visible and invisible.

Unlike other friend finding services, sobbe works on literally any handset on the network, and it finds the location of your friend in real-time, not the last time they updated their status.

Registering for the service is easy and FREE. There are three simple ways to sign up – by texting ‘kayit’ to 7015, by adding the sobbe application through Facebook or by visiting www.sobbe.com.tr. Once registered, users can easily and quickly invite their friends and/or family to join.

The Facebook application allows users to easily invite, connect and locate any of their closest online friends. With Turkey home to one of the largest Facebook populations in the world (over 10.5 million users) its creators believe that sobbe could quickly become the latest addition to our Internet vocabulary.

Useful Networks CEO and sobbe/sniff creator Brian Levin comments: “People are spending increasing amounts of time managing and mapping their friendship groups online, so why not literally map them offline too?

"If you’ve ever found yourself stuck at home because your friends at a local cafe can’t hear your calls above all the noise, or missed out on an impromptu night out because you didn’t realize that friends had been out near you, then sobbe/sniff is for you. sobbe is for people to use within their close friendship and family circles. It’s easy, fun and it works. And because you have absolute control over if, how and when your location information is shared, it is also very safe too.”

Mehmet Emin Halitligil, corporate marketing & sales manager at Inta SpaceTurk, comments, “We are very pleased that we have been able to utilize the assets of our firm commitment to the cutting edge geospatial technologies and leverage our long-term relationship with Turkcell to launch such a compelling mass market service as sobbe.

Mustafa Eren, business development manager for location based services at Turkcell adds: “sobbe is a great example of a mass market mash-up of location, mobile and Facebook applications. The ability to locate friends or other physical locations on demand with any mobile phone also enables brands and advertisers to interact with their customers in new and exciting ways.

Palm Pre promising debut

BOSTON, USA: The recent Strategy Analytics Wireless Device Lab benchmark report, “Mobile Device User Evaluation: Palm Pre,” evaluates the recently launched Palm Pre across a number of core and new features, including contact management, messaging, imaging, music and web browsing.

The Palm Pre performed well for most tasks, while users were impressed by the ‘activity card’ style user interface. Palm Synergy, which allows users to integrate multiple calendar and contact accounts, was seen to be useful, as long as users could choose which accounts they add.

“The lack of an on-screen virtual keyboard was a concern for many participants,” according to Paul Brown, Senior Analyst in the Strategy Analytics User Experience Practice. “Although users liked having a physical QWERTY keyboard, they did not want to have to slide it out every time they wanted to type something.”

Kevin Nolan, Vice President at Strategy Analytics, added: “Participants considered the multi-tasking capabilities of the Pre to provide a very positive experience, similar to that of multi-tasking on a PC.”

Boingo Wireless awarded first patent

LOS ANGELES, USA: Boingo Wireless, the world'’s largest Wi-Fi network, announced that the United States Patent and Trademark Office has issued the company patent No. 7,483,984, covering the method and apparatus for accessing networks by a mobile device. The patent advances the company’s client technology for detection, association and logging into wireless networks, on any device.

The methods covered by the patent include accessing wireless carrier networks by mobile computing devices, where a client software application hosted by the device accesses carrier networks using wireless access points.

For example, when a computer –- or netbook, smartphone or any other Wi-Fi-enabled device –- is in a location where there are multiple signals, the patented technology looks at each signal and alerts the user which signal will work, showing the signal as an understandable name and ID for the user.

The patent covers all wireless technologies and spectrums, as well as any mobile device that access wireless hotspots.

“This patent represents a huge addition to Boingo’s intellectual property,” said David Hagan, CEO and President, Boingo Wireless, Inc. “As the leader in Wi-Fi networks, Boingo is absolutely committed to making it easy for our customers to get online with one simple click. This patent highlights our commitment.”

“The technology covered by the patent is used in the Boingo client software for both laptop and a wide array of mobile platforms, including Android, iPhone, Symbian S60 and Windows Mobile,” said Niels Jonker, chief technology officer, Boingo Wireless, and a co-author of the patent.

“With this patent, Boingo cements its position as a leader in authentication and verification of various wireless technologies, making it easier for a user to find the right network and connect with it, in a seamless presentation and user experience.”

Currently, Boingo Wireless has other patents pending that also involve automatic network selection and authentication, as well as client technology for the detection, association and logging on to networks.

Introducing: Samsung Omnia family

NEW YORK, USA: Samsung Electronics Co. Ltd., a leading mobile phone provider, is showcasing its latest smartphones at CommunicAsia 2009 -- the Omnia II (I8000), OmniaPRO series (OmniaPRO B7610, OmniaPRO B7320) as well as the OmniaLITE (B7300). Featuring cutting-edge technology, these mobile devices will strengthen Samsung’s leadership in the smartphone market.

The new Omnia smartphone line-up follows the success of the very first flagship ‘Omnia’ phone, Samsung’s milestone Open OS model which was launched at CommunicAsia last year.

With the introduction of its new Omnia smartphone series, featuring diverse functions for a wide range of user needs, Samsung truly offers a variety of smartphones for everyone -- from those seeking entertainment to business users to light users.

All-in-one redefined: Omnia II (I8000)
The Omnia II is designed for the smartphone user who demands an enhanced and convenient multimedia experience featuring Windows Mobile 6.1 Professional.

Featuring the world’s largest 3.7-inch AMOLED display with crystal-clear WVGA resolution, the Omnia II offers unbeatable screen clarity, even under the day light.

Complete with larger icons and a simpler structure, Omnia II’s user interface has been deeply customized to provide touch-optimized usability. Also, innovative TouchWiz 2.0 User Interface and 3D effects make enjoying multimedia and multi tasking convenient and fun. Advanced R Touch (Resistive Touch) enables faster, more accurate touch response for a touch experience that’s 100% user friendly.

The much enhanced display and user interface make it even more pleasurable to enjoy the rich multimedia functions of the Omnia II, including its DVD-like (480p) video recording/playback, smooth Internet browsing as well as interactive 3D games.

Users can also access and download content speedily while on the move thanks to the Omnia II’s HSUPA 5.76Mbps, HSDPA 7.2Mbps and Wi-Fi capabilities. Generous memory up to 48GB lets users store more of their favorite content for on-the-go access.

Work-life balance winner: OmniaPRO B7610
With separate mode for Work and Life, the OmniaPRO B7610 boasts features optimized for both work and play, helping users maintain work-life balance. Matching balanced performance with balanced design, the hybrid Touch/QWERTY form offers users greater versatility and ease of use.

At work, users enjoy push email for multiple accounts as the OmniaPRO B7610 supports multiple corporate email solutions, as well as the Microsoft Office Suite so they can view and edit their documents in the palm of their hands.

Users also have access to a PC-like Internet browsing experience with Opera 9.5 and fast data transmission thanks to HSDPA and Wi-Fi connectivity features.

At play, users can capture their favorite moments with the OmniaPRO B7610’s 5-megapixel camera with smile shot, or enjoy multi-codec supported high quality video with a brilliant AMOLED display. A-GPS with navigation support also ensures that users never get lost while travelling to their next destination.

Personal assistant perfected: OmniaPRO B7320
With its compact design and ergonomic QWERTY keypad, the Samsung OmniaPRO B7320 is a portable messaging centre which lets users carry their inbox with them wherever they go, with corporate push email support.

For those who value networking and maintaining relationships, the OmniaPRO B7320 boasts social networking applications like Facebook and MySpace as well as instant messaging support for MSN, Google Talk and Yahoo Chat.

Additionally, features such as a 3-megapixel camera, FM radio with RDS and Wi-Fi also enable users to be entertained wherever they go.

Simple all-rounder: OmniaLITE (B7300)
The OmniaLITE is designed for users who demand an easy smartphone interface with full support of multimedia, Internet, and business features. TouchWiz 2.0 User Interface and downloadable online widgets make it highly user-friendly, while its 3D multimedia player interface provides and enhanced entertainment experiences.

OmniaLITE comes packed with a host of powerful business tools and multimedia features. Users have multi-push email access and the Microsoft Office Suite lets users edit and view their office documents on the move.

Opera Browser and HSDPA and Wi-Fi connectivity let users access the net with ease and speed. Additional features like multi-codec supported high-quality video experience, 3MP camera, and A-GPS deliver the complete all-in-one mobile experience.

The new Omnia smartphone series devices will be updateable to Windows Mobile 6.5 upon the new OS update release.

Arthur D. Little sees mobile payments surging ahead

ZURICH, SWITZERLAND: In the last five years, markets with mobile payment offers have matured with a variety of players entering the industry value chain and new services being launched.

Initially, there was a race to enter the market and a strong rivalry between different technological propositions that would facilitate mobile transaction channels. Today, we observe that, in many national markets, only one or two dominant mobile payment platforms (e.g. the paybox platform in Austria) have prevailed, and key issues now being addressed include cross border interoperability and standardization.

While the prevailing financial crisis poses challenges to value chain players, we still believe that m-payment services will significantly develop over the coming years with the rise of mobile internet, the continuous improvement of mobile handsets and the younger generation’s preference for mobile services.

Arthur D. Little’s new global m-payment report: “M-Payments surging ahead: distinct opportunities in developed and emerging markets" provides insights into the current stages of the m-payment market development in different countries and regions, and draws conclusions for relevant value chain players.

Arthur D. Little expects m-payments to grow globally at 68 percent pa and to reach a transaction volume of almost USD 250 billion by 2012. M-payments will develop differently in emerging and developed markets resulting in emerging countries growing faster, representing 65% of the total transaction volume by 2012. In developed markets, m-payment services will not substitute existing payment systems, as massive adoption will be limited to niche segments.

"Despite the current hype, we do not expect to see a massive Near-Field-Communication (NFC) adoption in a majority of developed countries until 2011 at the earliest", says Karim Taga, co-author of the report and Director at Arthur D. Little’s Telecoms, Information, Media & Electronics (TIME) Practice.

Leveraging existing customer relationships will be critical to encourage market adoption, while cross-border partnerships will become more important. In emerging markets, m-payment services will become the first widespread, cashless transaction system. End user's benefits will mainly be created through low-value, but high-frequency transaction services, while remittances will be the strong growth driver for transaction volume and cross-border cooperation.

Arthur D. Little has distinct recommendations for the relevant value chain players:

* Mobile network operators should focus on low-value, high-frequency transaction services in emerging markets and especially on remittances. Playing an active role in shaping the regulatory environment is crucial to preserve the long-term market development potential, and establishing inter-country operability will ensure the success of remittance services.

* In developed markets, mobile network operators need especially to focus on reaching the required critical mass in terms of retailing partners, as we expect a shift from predominant low-value services to Near-Field-Communication (NFC)-enabled high-value services in the medium-term. Partnerships with independent payment service providers are one way to speed up the expansion of the value chain network.

* For financial institutions, m-banking and related m-payment services can be a differentiating factor and a chance to tap into the trillion US$ market of micro cash payments.

* For merchants, it is best to evaluate the m-payment channel as a means to increase customer convenience, mobility and accessibility of their services and goods.

* We recommend independent payment service providers to expand their partnerships in order to become better integrated in the market, and hence to increase their bargaining power concerning value chain margin distributions.

Suppliers (e.g., handset and point-of-sale terminal vendors) should participate in Near-Field-Communication (NFC) trials in order to improve their readiness for market growth.

“M-Payments surging ahead: distinct opportunities in developed and emerging markets” is available for download at www.adl.com/mpayment