Evolving Mobile Services
An International Comparison
Presented by: Mats Samuelsson
Introduction
• Cellular Phone Service and Wireless Data Generate $Billions of
Revenue Every Year
• Steady Technology Evolution from Introduction 20 Years Ago
– Analog
– Roaming (Call Nationwide or Worldwide)
– Paging (Declining fast, replaced by Cellular Messaging)
– Digital (Rage of the moment in the U.S.)
– Messaging (Short Message Service)
– Web Browsing (Largely a failure in present implementation - too slow)
• High Business and Consumer Penetration
– Iceland at 80%, Finland at 70%
– U.S. moving towards 50%
Regional Differences
• Mass Penetration depends on Ability to Pay
– Europe 25 Euro/Month
– Philippines $10/Month
– U.S. $30/Month
• Pre-Paid - A Growth Blessing
– Originated in Portugal
– Fueled Phenomenal Growth
– Cellular for the Masses
• 1 Billion Cellular Users
– 400 Million Handsets Sold Each year
Technology Opportunities
• Better Hand-sets
– Traditional Phones
– New Types
• Disposable
• Digital Assistants
• Hybrids
• Higher Data Speeds
– From 9.6 Kbit/s to 124 to 1500 Kbit/s
• Stakeholders Want it - What about Consumers?
Next Generation Cellular -
Status Report
• First Large Network Deployment - NTT DoCoMo in
Japan
– Viewed as very Successful
– No License Fees Required!
• Over $100 Billion Paid for European 3G License
Auctions
• First 3G European Networks Operational Right Now
– Finland, Norway
• Larger European Networks starting Service 2003
and 2004
• Latin America Networks: Similar Time Frame
What is Different with 3G/UMTS
• Higher Data Speeds
– Big Data Chunks can be Sent
• Better Terminals
– Beyond Mobile Palms to Everything Imaginable
• Better Interaction of Services
– More than just Calls and Messages - Interaction
– To More than One Person (One to Many, Many to One)
• Mobility Tracking
– Service Knows Where You Are
Hand-sets
3G Networks
MMS
Client HLR Location App
Server Instant Messaging
SMSC Server
JAVA Application Multi-Media
WAP Gateway Messaging Gateway
Manager
MSC Circuit Web Servers
Access and Multi-
Media
Network Gateway
IP Network
SGSN
GGSN
xHTML
Browser
Internet/IP
Services
Gateways Network
APP
Servers
The Challenge of 3G/UMTS
• What are the Most Attractive 3G Services?
– Service Definitions & Designs
– How they are Marketed: Competitive
Positioning and Marketing Communications
– Business Models
– Role of Content
– Pricing
– Profitability
UMTS Service Revenue
Challenge and Assumptions
• Average Revenue/Customer Today = $300/Year
& Dropping
• UMTS Needs to Bring this number up to > $500
– Business Services Key as Non-Differentiated
Voice/Data Services Become Commoditized
– Capturing Value Add and Remaining Competitive
Becomes Critical
– End-End Services (Device Application Interacting
with Business or ASP Servers) Provide Little
Operator/Service Provider Value Add
UMTS Service Revenue
Challenge and Assumptions
– Service Operator Needs a Business Model for
Business Services
• Offer Complete Business Applications
• Ability to Implement, Evolve and Customize the
Applications Rapidly
• Create „Network‟ Value Add by Integrating
Applications with Network
• Enhance Applications with Value Added Services
• Offer and Operate Applications with an Integrated
Service Delivery Systems
3G/UMTS “Network Enhanced”
Business Services
• Business Service Applications
– Easy to Customize and Deploy with Each
Customer‟s Business Process and IT
Environment
– Easy to Improve and Modify for New
Terminals and New Applications
– Minimal Integration Requirements
• Standards-based Applications
• Standards-based Data Interfaces
3G/UMTS “Network Enhanced”
Business Services
– Simple „Sales Driven‟ Driven Service
Activation
• Service Up and Running and Operational
Throughout the Whole Network
• Not Dependent on Third Parties or
Synchronized Applications Development
– Services that are Enhanced and Enabled by
the Network
• Network Value Add rather than „Transport Only‟
Project
• Focus on North America, Europe, Asia
• 3G Innovations for Mobile Markets
– Specific Market Challenges
– Unique Business Models
– Unique Opportunities, Design Challenges
– Cross-Regional Learning
– Forecasting Success
• Hints
– Fundamental Industry Challenges
– Underlying Forces
– Cultural Differences
– Cultural Opportunities
– View of 10 Years from Now
What Will You Learn
• Something about the Next Wireless „Revolution‟
• Analyzing Regional Differences and Cross-Cultural
Influences
• How Marketing Applies in Various Cultures and Regions
• Fundamental Service and Product Marketing
• How to Create Market-focused Innovations