If the cellular industry is to convince its subscribers to use mobile data applications beyond ringtones and logos, much has to change, said a prominent research firm at this year`s IDF Europe solutions conference, hosted by Intel in Barcelona.
Although the examples are European, the lessons are universal. Michelle de Lussanet, senior analyst with Forrester Research, said that to "ignite growth in mobile content adoption", operators had to adopt a "department store approach". "Today`s mobile portals are too restrictive," said De Lussanet.
Dismal picture
European predictions for 2004 show that normal mobile penetration (70%) will still far exceed Internet-ready mobile users (55%) and regular mobile Internet users (17%).
Content firm are blaming operators. Forrester polled 31 mobile content firms for their feelings on adoption rates, and publicized their reactions in a report called "Mobilising content for 3G Delivery" of April this year.
Among those polled, the biggest issues raised by content firms included the opinion that the business was considered high-risk and low-return, that standards were lacking and that operators were inflexible. Many add that the operators claim a large share of the revenue (40%, a figure dwarfed in South African in many cases).
Of the companies polled, only 39% had positive things to say about operators (they felt their content was needed and that the partnership was genuine). A total of 61% felt their experience had been negative, with 37% of that figure saying operators are inflexible, the same number saying they were tough to close a deal with and 26% saying operators do not communicate at all.
Content firms added that they wanted more billing options (68%), better network performance (68%) and more flexible business models.
Muuuch better
De Lussanet said the mobile portals of the past three years were "walled garden" varieties, which hemmed users in, penalised browsing and imposed too many rules, including operator-only billing.
"We must move from portals to department stores," added De Lussanet. "This approach is characterised by driving store purchases (up-to-date collections, demos, free trials), fixed entry fees, product markups, rewards, transparent processes and service as well as multiple billing options.
"The objective is to grow the ARPU (average revenue per user)."
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