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By 2015 the Mobile Content Market Could be Worth Well in Excess of $1 Trillion
added: 2007-03-02

Mobile data is the answer to the declining revenues currently being experienced by the mobile industry. By 2015 it is expected that most mobile revenue will come from data.

However, business models will need to change for this to occur – users will only want to access mobile data services if they are provided at low cost. For many mobile operators this is going to require significant changes to their current voice-centric business models.

One of the major areas where high-speed services are needed is in mobile data communications. To compete with fixed broadband, it is essential for reliable high-speed wireless technologies to be developed. Wireless broadband is much more suited for the delivery of mobile data than 3G, and the infrastructure also has more potential for the delivery of Voice over Internet Protocol (VoIP). These are two reasons why wireless broadband could start challenging 3G in the next decade.

While many countries are still considering the introduction of 3G, the industry has already developed 3¼G and beyond, with technologies such as High Speed Downlink Packet Access (HSDPA). Linking fixed and mobile together on IP Multimedia System (IMS) is another development, allowing for mobile TV and triple play models.

To try and stay ahead of developments in the fixed broadband market, the mobile industry is developing its own triple play models, where voice, data and video are bundled.

Consumer need for greater bandwidth will continue to push the evolution from 3G to 4G. Increasingly users will require high data rates, similar to those on fixed networks, and they will want superior services – good video and sound quality for example. More bandwidth would also allow for more sophistication in receiving and managing large quantities of information and improve personalisation services. Convergence with other network (enterprise, fixed) services will also come about through the high session data rates.

By 2015 the mobile content market could be worth well in excess of $1 trillion, with voice comprising only a 10% share of the market – if the industry gets it right. Currently mobile operators are still not opening up their networks for mobile content; one of the main reasons being that the current mobile technologies are not well-suited for the delivery of what the market calls ‘rich experience’ content (multimedia, video, etc). So for now mobile data traffic will continue to comprise mostly SMS, followed by ringtones and a small proportion of everything else. The focus of the mobile operators will also remain on protecting their lucrative voice business for the time being.

Developments in mobile commerce are continuing, with banks and merchants beginning to show an interest in collaborating with mobile operators. With the introduction of contactless cards using Near Field Communications (NFC); this industry sector is beginning to show some signs of revival.

Handset development is also forging ahead with the introduction of the mobile wallet using technologies such as NFC, Radio Frequency Identification (RFID), bar codes, and visual recognition.


Source: Business Wire

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