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01.23.2008 4:36 pm

Will Open System Revive The Mobile Web?

SUMMARY

A few years ago the mobile Web was touted as the next big thing, but that seems to have been more hype than reality. The introduction of wireless application protocol or WAP, which promised to bring Internet to the cellphone, never quite lived up to its expectations and part of that blame was due to small screen phones, slow network speeds or simply the browser themselves. However, the introduction of the iPhone last year plus the flood of new smartphones have made surfing the mobile Web closer to reality. Late last year, Google announced the Android open-source mobile operating system with 30 other companies that include wireless carriers like Sprint and T-Mobile. Recently, Verizon Wireless announced that they will open up their networks and allow customers to use any third-party software/applications. Meanwhile, the Federal Communications Commission (FCC) is putting up its airwaves on auction this week and the winning bidder must open up their networks to a broader field of tools and applciations - thus giving more flexibility to consumers.


THE PLAY

Worldwide use of mobile phones is growing at a rapid pace. According to the International Data Base, 38 wireless devices are sold every second. At the current rate within the next 24 months there would be another billion devices added to the 2.5 billion phones currently in circulation. Clearly, there’s a huge potential in the mobile space given that it exceeds sales of desktop PCs as the device is more affordable and personal in nature. However, when it comes to mobile Web,the US market has been rather slow in its adoption. According to the Yankee Group, only 13 percent of cellphone users in North American use their phones to surf the Web more than once a month. Part of the problem was the user experience as well as wireless carriers not giving up control of what applications/services consumers would want to use. But that could all change as new smartphones with 3G functionality enter the market and the manner in which content is delivered to the devices - be it via RSS or widgets.


Lately, wireless carriers along with Google (Android OS) are opening up platforms that would allow consumers to have greater control over the wireless devices and any applications they want to use - this includes email applications, social networking sites and uploading photos tools etc. Verizon Wireless has announced that they will open up their network, allowing customers to use any compatible device or software on their networks.  Yahoo recently announced an open-source platform known as Go 3.0 that will allow third party developers to create small applications/widgets on the mobile device where users can check MySpace, eBay and MTV on the go. Today, there are literally hundreds of mobile 2.0 sites that allow users to blog, post videos, socialize or use location-based services via their handsets.  Once the mobile Web gains a significant audience, we will be sure to see a big chunk of online advertising revenue migrating to the wireless device. Unlike the desktop PC/laptops, marketers will have to figure out ways to target their messages as consumers will be turned off by any spams/ad links on their personal device.

For now, we’ll keep our fingers crossed as the auction of the 700 Mhz airwave spectrum (high-speed Internet signals for mobile devices) by the FCC goes into effect this week - if all goes well the sale will potentially connect tens of millions of Americans to an open and affordable Internet.

Resources: New York Times, USA Today


Bob Rattivarakorn
Trends Research Analyst
RarePlay

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