Mobile telcos search for new business model

by billso on Tuesday, 17 April 2007

Busi­ness Week reported yes­ter­day that mobile phone car­ri­ers are des­per­ately look­ing for new busi­ness mod­els that will help these com­pa­nies man­tain con­trol of their networks.

Mobile data ser­vices remain focused on mar­ket niches, and investors have seem lit­tle evi­dence that the mobile car­ri­ers can deliver com­pelling con­tent. The car­ri­ers are more focused on main­tain­ing con­trol of their net­work, so the car­ri­ers miss ippor­tu­ni­ties to be a vital con­nec­tion point between media sites and users.

Except for a few offer­ings, such as Sprint’s aggres­sively mar­keted mobile data card, most mobile car­ri­ers offer cus­tomers access to a lim­ited set of Inter­net resources. For exam­ple, MySpace offers mobile ver­sions of its site to Helio and Cingular/AT&T cus­tomers. Face­book had an exclu­sive mobile deal with Cin­gu­lar until recently. Now that ser­vice sup­ports sev­eral dif­fer­ent car­ri­ers, with the notable excep­tion of T-Mobile. Seems like Face­book would work well on a Sidekick.

Author Robert Clark also offers this star­tling tid­bit: YouTube gen­er­ated more Inter­net traf­fic in 2006 than the ENTIRE Inter­net did in 2000.

Some quick Googling led to another inter­est­ing fact: Pho­to­bucket han­dled 2% of US Inter­net traf­fic at this time last year.

The mobile Inter­net has noth­ing close to either site in terms of pop­u­lar­ity, func­tions or con­tent. Even the mobile ver­sions of estab­lished web­mail sys­tems like Gmail and Yahoo! Mail have failed to cap­ture the imag­i­na­tion of mobile users. Yahoo offers mul­ti­ple branded ver­sions of its mobile inter­face (Go, Mobile and Mobile Web), which just adds to users’ confusion.

Both Google and Yahoo are offer­ing mobile web ser­vices for the Apple iPhone, which may miss its June 11 ship date because of qual­ity issues with the phone’s com­plex oper­at­ing sys­tem. Stephen Well­man of Infor­ma­tion Week reports that Apple and AT&T will be offer­ing rebates to iPhone buy­ers, and AT&T may pay Apple for every cus­tomer that buys an iPhone through an Apple store­front. There’s no such thing as a “sure thing” in the mobile com­mu­ni­ca­tions indus­try these days.

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