The way towards a mobile society [email protected] Finnish Tourist Board, Helsinki in co-operation with the WG E: 'Nordic group'

The way towards amobile society

[email protected] Tourist Board, Helsinki

in co-operation with the WG E: 'Nordic group'

Who loves wires?

0

20

40

60

80

100

120

140

160

180

200

Mill

ion

Use

rs

Wireless Internet users Fixed Internet users

More users with wireless Internet access than with

fixed access in 2005

5

85

12

107

40

126

97

143155 158

191171

2000 2001 2002 2003 2004 2005

Revenues Take Off in 2003?

About 10% of mobile phones sold in Western Europe during 2000 are WAP-enabled.Forecasted increase, 27% in 2001

The problem with WAP today

• 20 s connection time• dropped calls• charging by the minute• Scandinavian slow replacing

towards wap phones < > services missing (the chickenor the egg?)

connecting

Standard competition holds up development of advanced services

Sophistication in services

Con

sum

er Ad

option

WAPSMS GPRS 3G/4G

PALM VII

CDPD

iMode

Sprint Wireless Web

AT&T PocketNet

cdmaOne

PCSWAP

Jphone

iDEN

Ezweb

The Wireless Market

AdvertisingWireless Internet, SMS, PDA

ShoppingGoods and off-line services

OtherFinancial, E-mail, Search, Positioning, Games

M-Commerce Market Drivers• Decreasing average revenue per user drives networksoperators to implement new services• The increasing number of mobile phone subscribers• Increasing exposure to fixed line e-commerce amongEuropeans• Supplier push (from equipment vendors)• New billing principles (flate-rate, value-based)• UMTS licensing• Application developers• Content providers• Content aggregators• Mobile portals (aggregates applications and content)• Consumers (consumer profiles and business segments)• Payment agents (not only banks……..)

Many Rely on Advertising and Shared Air Time Revenues

0 5 10 15 20 25

Other revenues

Other revenue from operators

Liscensing and Syndication Fees

Consumer Purchases

Consumer Subscriptions

None, revenue comes from our non-wireless business

Consumer Pay Per Use

Shared air time revenue from operators

Advertising/Sponsorship

N = 34 (multiple answers allowed)N = 34 (multiple answers allowed)

What revenue streams does your wireless business have (or plan on having)?

. . . but Expects Most Revenues From Commerce and

Advertising

0 2 4 6 8 10 12 14 16

Other

User transactions

Lisensing and syndication fees

B2B business

Subscribtion

Operator Fees

Consumer pay per use

Advertising

Commerce

N = 34 (multiple answers allowed)N = 34 (multiple answers allowed)

Which do you expect to be your most important revenue stream in two years?

Time Critical Services Dominate Today, Messaging No. 2

0 2 4 6 8 10 12

Gambling

Images

Horoscope

Banking

Location and navigation nfo (maps etc.)

Weather

Ring-tones

Sports

Travel, currency & leisure info

Games

Directory

Shopping

Messaging (other than e-mail)

E-Mail

Stock quotes

News

N = 34 (multiple answers allowed)N = 34 (multiple answers allowed)

What is the most used wireless content/service on your site? (up to three answers)

... but believe in E-mail, Commerce and Games

0 2 4 6 8 10 12 14

Ring-tones

Weather

Images

Location and navigation nfo (maps etc.)

Sports

Travel, currency, leisure & entertainment info

Film reviews & bookings

Fin. Serv.

Gambling

Directory

News

Messaging (other than e-mail)

Stock quotes

Games

Shopping

E-Mail

N = 34 (multiple answers allowed)N = 34 (multiple answers allowed)

What do you expect to be the most used content/service in two years from now? (up to three answers)

Consumers Ask For Communication, Banking and

News Services . . .

Source: Jupiter Net Query

0 10 20 30 40 50 60 70

Email

Banking

Directions

News

Sports

Yellow pages

Movies

Chat/IM

Games

Stocks

Shopping

Restaurants

Gambling

Europe

Which wireless data services would you like to use?

Scandinavian countries are aware

of banking services . . .

Source: Jupiter Net Query

0 10 20 30 40 50 60 70 80

Email

Banking

Directions

News

Sports

Yellow pages

Movies

Chat/IM

Games

Stocks

Shopping

Restaurants

Gambling

Fi

UK

Which wireless data services would you like to use?

Spending still small when compared to the PC platform

Shopping

0

5

10

15

20

25

30

2000 2005

bill

ion

eu

ros

Mobile Web DTV

Advertising

0

1

2

3

4

5

6

2000 2005b

illio

n e

uro

s

Mobile Web DTV

Time to move onTime to move on

Cost, Functionality and Consumer Awareness Are Top

Inhibitors

0 2 4 6 8 10 12 14 16

Other

Current advertising potential of WAP

WAP security

Variety of WAP-enables phones (screen size, etc.)

Closed mobile operator gateways

Consumer payment standards

Different WAP-implementation in different devices (phones)

Current functionality of the WAP-standard

Consumer interest/awareness

Cost of using WAP

N = 34 (multiple answers allowed)N = 34 (multiple answers allowed)

Which of the following factors are significant

inhibitors to the growth of your wireless

business?

Some thoughts on UMTS

• Expensive European air... Different procedures for obtaining a license

• EU was for the first time in winning position > slowing down the speed, when users need to pay roaming fees

• No timetable for 3G

Important key weaknesses for further development

• Existing IT-infrastructure is the greatest handicap in the move to optimised m-commerce business processes (ex. transport operators legacy systems do not permit e-ticketing or mobile ticketing)• Not enough hotels and rest. have a web presence• Surfing WAP-sites is slow• Difficult to find WAP-sites• Secure and convenient payment methods still to come

What will be the future?

GPRS will be the Inflection Technology for

'Wireless Internet' in Europe

• Operators roll out services across Europe during 2001• GPRS terminals available in limited numbers today• Widely available during 2001 and common during 2002• Flat rate offers allow extensive usage, charging per bit

allow low entry level, no dropped calls, 1 sec connection

Stakeholders -Many Players Fight For the Same Customers

Network Access Content Terminals

Other

Operators / ISP’s

Mobile phone manufacturers

Wireless Portals

Web PortalsPlayers fight for anticipated profits in content, services and commerce

Operators have a strong position

1. More difficult to change start page, gateway and set bookmarks

2. High traffic charges give operators the possibility to subsidize content and services

3. Operators can charge customers phone bills / no payment standard

4. Positioning information held by the operator5. Established customer relation / access to customer

data

The tourism industry needs to partner

• Be creative in partnering with others(Operators is one example) • For the next three years, content, commerce and service companies must make partnerships to reach a broad user base• Wireless internet revenues will not support independent content providers. The strategy should be to use wireless content to strengthen online / offline services.

CasesFinland and Denmark

Finlandwap.finlantravelguide.com

• Travel services in English with national coverage• Content based on existing database with travel options

jointly produced by the Finnish Tourist Board and the Finnish travel trade

• Launched January 2001• Free of charge, available to anyone

with a WAP enabled phone• A platform for local add-on services• Directions for using the WAP-service:

www.finland-tourism.com

Denmarkwap.visitdenmark.com

• Denmark offers wap service to tourists when in the country

• Addition to what you can find when planning the trip on www.visitdenmark.com

• Service due to expand over the years

• Cooperation with local tourism partners for up-to-date info essential

Key issues from the WG E 'Nordic group'

Key Issues• Development of new technologies for mobile Internet willcontinue. The tourism industry needs to get involved!

• The need for standardisation and structuring of information has been exposed by the development of Internet, now is the chance to deal with these issues in the beginning of mobile Internet.

• Surveys of Internet behaviour of tourists was slow to start, now is the time to start market research of mobile Internet on a European level

• Research in mobile Internet and it’s impact on tourism is limited

Need for EU initiatives

• Co-ordination between databases for mPortals of NTOs’

• Create forums where technology providers and developers can meet with the tourism stakeholders (public and privat) to analyse problems, support the development of partnerships and agree new access conditions and pricing models

• Further support of joint research such as the 5th FrameworkProgramme

• Arrange conferences on this topic for the tourism industry

Sources

• Jupiter Research• C. Marcussen, Bornholms Research Centre• Durlacher, M-Commerce Report 1999• Mobile Forum Oulu• WG E Nordic Group