the future of wireless technology and its impact on e business
Download
Skip this Video
Download Presentation
The future of wireless technology and its impact on e-business

Loading in 2 Seconds...

play fullscreen
1 / 41

The future of wireless technology and its impact - PowerPoint PPT Presentation


  • 722 Views
  • Uploaded on

The future of wireless technology and its impact on e-business. Presentation to Loyola University GSB Dr. Linda Salchenberger April, 2000. Anna Hillers 400 N. McClurg Ct. 1912 Chicago, IL 60611. Evolution of wireless technology. Wireless meets Internet. Everything – everywhere - always.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The future of wireless technology and its impact' - HarrisCezar


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the future of wireless technology and its impact on e business

The future of wireless technology and its impact on e-business

Presentation to

Loyola University GSB

Dr. Linda Salchenberger

April, 2000

Anna Hillers

400 N. McClurg Ct. 1912

Chicago, IL 60611

slide2

Evolution of wireless technology

Wireless meets Internet

Everything – everywhere - always

Best-in-Class Segment Players

Trends and Emerging Business Models

Anna Hillers

slide3

Evolution of wireless technology

Wireless meets Internet

Everything – everywhere - always

Best-in-Class Segment Players

Trends and Emerging Business Models

Anna Hillers

slide4

Conversion:

Analog/Digital

Encoding/

Compression

BTS = Base

(Transceiver) Station

MSC= Mobile

Switching Center

BTS = Base

Station

Mobile Phone:

Data, Voice

GSM Global System for Mobile Communications

With 200 million subscribers world wide and international coverage, GSM is the most successful digital mobile telephone standard
  • Global System for Mobile Communications (GSM) Features:
  • SIM (Subscriber identity module) allows for identification independent from phone
  • International Roaming (worldwide)
  • Voice and Data Service (SMS, 2 way messaging -> 14.4 Kbit/sec)
  • Call forwarding, Caller ID, Wait/Hold, Voicemail

Anna Hillers

slide5

HSCSD: High

Speed Circuit

Switched data

  • Circuit Switching:
  • Allows for ISDN speed: 56.7Kbit/sec
  • Introduced 1999 by some GSM carriers

GPRS: General

Packet Radio

Service

  • TCP/IP protocol (Internet protocol), supports a wide range of bandwidth
  • Allows for up to 115 Kbit/sec
  • Will be introduced by the end of 2000

EDGE: Enhanced

Data Rates for the GSM Evolution

  • Allows for up to 384 Kbit/sec
  • Will be introduced by 2001

3G: Third Generation (UMTS)

  • Increase of bandwidth
  • Allows for 2 Mbit/sec
  • Will be introduced by 2002

Upcoming Standards HSCSD, GPRS, EDGE, UMTS

HSCSD, GPRS, EDGE are GSM-based standard, which enhance data transmission through enhanced software. UMTS, the European version of 3G will reach up to 2Mbit/sec through higher bandwidth.

Anna Hillers

slide6

UMTS Total mobility

Integrating other systems, UMTS will offer total mobility with a trade off between mobility and capability, leading to different levels of service

InternationalRoaming

Next country

2.4-9.6 kbit (rest of world)

Major roads: <384 kBit

City: 2 MBit

Suburbs: >384 kbit

<115 kbit (GSM)

Anna Hillers

slide7

UMTS Technical features compared with GSM

UMTS is downward compatible to GSM technology but will be capable to offer advanced features beyond existing GSM systems

UMTS

GSM

  • Up to 2 Mbit mobile packet data
  • Up to 384 Kbit mobile video
  • Fixed/mobile convergence of protocols
  • Switching platform based on GSM II+
  • Wide range of terminals: voice, data only, multimedia
  • Downward compatible to GSM networks
  • Coverage limited but roaming available
  • 9.6 Kbit/s data, up to 112 Kbit/s with GPRS
  • Up to 64 Kbit/s mobile video with HSCSD
  • Services similar to ISDN
  • GSM switching platform
  • Primarily voice terminals,first organiser announced
  • No compatibility to other networks
  • Full coverage, worldwide roaming

Anna Hillers

slide8

UMTS Development path

The present differences in coverage and service between GSM and UMTS will disappear in future as GSM evolves, while UMTS expands coverage

UMTS

  • UMTS will initially only be available in urban areas, relying on GSM outside covered areas
  • Early UMTS terminals will only offer limited service (speed data <64Kbit), later developing towards high speed 2Mbit/s services

UMTS

Service/Capacity Speed

GSM

GSM

  • GSM is the standard with highest mobility (coverage footprint) worldwide
  • GSM will develop data up to 384 Kbit via GPRS

Coverage

Anna Hillers

slide9

UMTS Time schedule for introduction of UMTS

The EU requirement will force UMTS licensing in most EU countries during year 2000 but Japan and UK will take the lead

Licensing

Preparation

Licensing of

UMTS I

Service

development

Licensing of

UMTS II

Year 2000 in UMTS licensing period

Mid 1999 UMTS auction in UK

EU allows

max. 12 month licensing delay

License condition in D, DK, F, S (others) published

March 2001, DoCoMo plans to launch UMTS in Japan

Jan 2002, UMTS to be launched in Europe

  • The three major stakeholders are
  • Customers, which demand service
  • Telecommunications operators, which want to stay ahead of the competition
  • Governments, which strive for the highest price

Anna Hillers

slide10

UMTS Example for UMTS licensing in the UK

Not only telecom companies might apply for UMTS licenses but also non-telecommunication firms such as IT-companies and equipment suppliers

Non-telecom companies

Telecom companies

  • Regional players
  • Cellnet
  • Vodafone
  • Orange
  • Hutchison
  • Industry Groups
  • Virgin

3-5 UMTS licenses

are currently

auctioned

  • IT-companies
    • Microsoft
  • Eurpean players
  • Vodafone-Airtouch
  • Telia
  • Deutsche Telecom
  • Distributor
  • European telecom
  • Fixed network operators
  • Internet SP
  • Energis
  • NTL
  • Service provider
  • debitel
  • Mobilcom
  • Talkline
  • Airtel
  • License includes
  • 4 licenses with 2x15Mhz + 5Mhz unpaired each
  • Service requirement: 80% population coverage =70% area by the end of 2007
  • License limitation for 20 years
  • No mandatory roaming, but roaming expected by government

Anna Hillers

slide11

Evolution of wireless technology

Wireless meets Internet

Everything – everywhere - always

Best-in-Class Segment Players

Trends and Emerging Business Models

Anna Hillers

slide12

Client

WAP Gateway

Origin Server

CGI

Scripts

etc.

Encoded Request

Request

User Agent

Encoders and Decoders

Encoded Response

Response (Content)

Content

WAP Programming Model

Benefits

  • Globally open standard that has already reached critical mass (80% of the industry)
  • Enables easy, secure access to relevant Internet/Intranet information and other services through mobile phones, pagers or other wireless devices
  • Provides the technology to develop, deploy and support wireless application, namely e-commerce

Wireless meets Internet Middleware/Critical Services WAP

The wireless application protocol (WAP) is the standard for bringing content, commerce, and other value-added services to wireless networks and mobile devices.

Anna Hillers

the bluetooth phenomenon will likely have a powerful impact on this industry in the near future

Wireless meets Internet Middleware/Critical Services Bluetooth

The Bluetooth phenomenon will likely have a powerful impact on this industry in the near future.

Description

Applications

  • An evolving specification of short-range radio frequency being developed with most wireless vendors and some PC manufacturers
  • Enables networking between devices within a range of 10 meters (30 feet through a radio frequency link in the unlicensed 2.4 gHz band)
  • Will be embedded in most cellular phones and laptop devices by the end of 2000 and cost between $5 and $15 per module
  • Will be capable of speeds approaching 1 Mbps
  • Backed by an alliance between Intel, Nokia, Ericcson, Toshiba, and IBM
  • Device-independent mobile data
    • User could use Bluetooth to receive an e-Mail on a PDA from a notebook without having to power on the notebook
    • User could access the Internet via cell phone while receiving Web pages on a laptop or PDA
  • Wireless access to peripherals
    • Connection of PCs with printers, faxes, other peripherals (e.g., PDAs)
  • Ad hoc conferencing
    • Facilitate ad hoc meetings (e.g., airports, hotels) that include data-sharing
  • Integration of digital cameras with mobile digital devices
    • Can send pictures directly from a Bluetooth-equipped camera to a PDA, notebook, or printer; or it could transmit to a wireless network

Implications

  • Reduces burden of creating single, complicated, small devices
  • Improves connectivity between devices

Anna Hillers

slide14

Evolution of wireless technology

Wireless meets Internet

Everything – everywhere - always

Best-in-Class Segment Players

Trends and Emerging Business Models

Anna Hillers

slide15

Current Industry Dynamics The Global Field

At this early stage of development, the market for mobile data over cellular services will be more developed in Europe and Asia than in the United States.

  • Thanks to the consistent GSM Europe and Asia are ahead of the fragmented U.S. market .
  • The U.S. have seen higher growth in part of the value chain, which is closer to the Internet (middleware, value-added services, content, commerce).
  • Wireless “smart” phones dominate in Europe and Asia, while PDA-based wireless units are more prevalent in the United States.

Current Situation

SMS Users by Region (millions of subscribers)

Europe

U.S.

Asia/Pacific

Cellular Data Users by Region (millions of subscribers)

Europe

U.S.

Asia/Pacific

Future Trends

Worldwide Smart Handheld Device Shipments(millions of units)

1998–2003 CAGR

  • Multinational cross-border partnerships will blur geographic distinctions.
  • Migration toward 3G will fuel more uniform growth globally.
  • Mass market will fuel need for high capacity data transmission

U.S.

32%

Japan

42%

Western Europe

38%

Rest of World

67%

Anna Hillers

slide16

Migration to Data in Wireline and Wireless Networks

100%

Incumbents Evolving to IP-Based Networks

IPData

Wireline

Incumbents Revectoring Evolution to IP-Based Networks

New Entrants Using IP-Based Networks

Wireless

New Entrants/Lead Incumbents Evolve to IP-Based Wireless

Traffic Carried by Carrier Networks

Mass Market ISP/e-Commerce

50%

Sub-$100 Devices

Client/Server Business (IT) Solutions

Application Enablers Business/Commercial

Network Improvements Lower $/MOU

Browser (Netscape) Technology Adoption

Micro-Browsers

Air Interface Improvements

Incumbents Focused on Voice

Voice

Mass Market Voice

100%

1990

1995

1998

2002

2005

Source: Nortel Networks and the Yankee Group.

KeyMessages

  • Wireless will follow wireline model.
  • Network evolves to an IP architecture as data traffic carried over the network increases (more than 50 percent).

Current Industry Dynamics Wireline Versus Wireless Networks Growth of Data Traffic

We have seen explosive growth of data traffic over wireline networks in the past 10 years. In the next five to seven years, an analogous explosion will occur over wireless networks.

Market Growth Forecasts

“The compound annual growth rate (CAGR) for wireless data from 1996 through 2003 is projected to be 35%. The market is expected to reach close to $2.5 billion by the year 2002.”

Source: Frost & Sullivan Market Research.

“Two million wireless data subscribers existed in 1997. Over 40 percent average annual growth is expected through 2002.”

Source: U.S. Mobile Data Marketplace.

Anna Hillers

opportunities in the mobile data market are immense

Convergence

Customers

Convenience

Convenience

Simple Text

Corporate/

Institution

Wireless

Connectivity

e-Mail

Business

PC Usability

and Power

Internet

Access

Content

Consumer

Commerce

The convergence of three strong and powerful industries is creating a flood of opportunity.

Applications, once confined to large corporate infrastructure, are finally becoming available and affordable to the mass market.

The true potential has yet to be realized. The evolution of advanced content and commerce will cause this market to explode.

Current Industry Dynamics Technology meets customers

Opportunities in the mobile data market are immense.

Anna Hillers

slide18

Technology Barriers

Market Barriers

Device Ergonomics (Form Factor)

Lack of “Killer” Apps

Data Security

Cost of Access

Data Throughput

Cost of Handheld Devices

Network Reliability

Network and Technology Standards

Pricing Models

Integration of Various Components

Perceived Value to Customer

Current Industry Dynamics Technology and Market Barriers

Several technology and market barriers exist to impede the rapid development of wireless data services.

Anna Hillers

slide19

Technology Trends

Market Trends

Throughput

GPRS, EDGE and UMTS will increase transmission speed

Lack of “Killer Apps”

Intranet/extranet browsing is vital to mobile work force

Network Reliability

Network coverage and infrastructure is improving (build-out)

Cost of Access

Prices will fall similar to the wire line industry

Device Ergonomics

SIM Applications, WAP will improve the interface

Increased Customer Value

Devices with server-based micro-browsers cost considerably less than devices with built-in micro browsers

Equipment and middleware providers are addressing security

Data Security

Cost ofHandheld Devices

WAP is becoming a standard protocol, Migration paths to 3G are developed

Networkand Technology Standards

Pricing Models

Providers must develop new pricing schemes

Integration of Various Components

Bluetooth will improve connectivity

Current Industry Dynamics Technology Barriers Current Initiatives

Trends indicate that most of these technology and market barriers are expected to be addressed in the next two years by several key enablers.

Anna Hillers

slide20

Type of Service

Content

e-Mail Services

Drivers of Mass Market Adoption

Internet Access

Intranet Access

WirelessKnowledge

Large-Scale Use of the Internet andDependence on It

Text-Based Information Services

News

Financial

Travel

Improved Reliability

and Speed of

Wireless Networks

Weather

AccuWeather

Sports

Entertainment

Development ofData-CapableInformation Devices

Content Aggregators and Distributors

e-Commerce

Current Industry Dynamics Mobile Data Mass Market Applications

Over time, as wireless technology and the Internet have evolved, mobile data services have finally begun to penetrate the mass end-user market.

Anna Hillers

slide21

Evolution of wireless technology

Wireless meets Internet

Everything – everywhere - always

Best-in-Class Segment Players

Trends and Emerging Business Models

Anna Hillers

slide22

IT

Telecom

Infra-structure

Access Devices

Carriers

Middleware/

Critical Services

Value-Added Services

Content

Commerce

Create

Technologies

and wireless

architectures

Phones

Pagers

PDAs etc.

Provide

wireless

voice

access or

Internet

access

Software that

optimizes

networks and

Browser

capabilities

Large range of

services:

Synchronization,

Commerce

enabling

applications,

Document

compatibility

Create and

bundle

Content

for providers

Provide

Application

tools

Common

Web

Commerce

services

Key Issues

to Understand

  • What role does the segment play?
  • Who are the leading participants?
  • What are the most significant trends in each segment?

The Wireless Value Chain

To best capture the abundance of opportunities available in this growing market, we must understand the dynamics of each value chain segment.

Anna Hillers

slide23

WWW

Wireless

Value Chain From Content to Customer

Today, multiple content distribution models exist – some models gain advantage of value chain disintegration, by providing more direct service

Carrier

Value Added Services

Content Sources

WirelessDevice

  • Online Anywhere software converts Yahoo! content to a wireless format in real time

Customized and Packaged Data Services

WirelessDevice

Value-Added Information Reseller

Selected Network of Content Providers

  • Reuters
  • CNN
  • The Weather Channel
  • Infospace.com
  • Intelligent Information Incorporated

Carrier Network and Proxy Server (Phone.com)

WAP-CompliantDevice

Content inWML Format

Web Content in HTML Format

  • Converts HTML Web documents into WML, thus readable by WAP-compliant wireless devices

Anna Hillers

slide24

Market Forces by Value Chain Segment Access Devices

The wireless access device serves a critical function as the primary interface between the user and data applications.

Wireless Handsets

PDAs

Mobile Computers

Modem Devices

Others

QualcommPDQ Phone

Sharp Mobilon Tripad

Sierra Wireless Aircard 300

Rocket eBook from NuvoMedia

3Com Palm VII

  • Europe/Asia will see first devices
  • Data entry methods will also need to improve
  • Windows CE-based PDA will become an increasing threat to Palm dominance
  • Increased competition
  • An extremely large market will open up when throughput rates increase to 115 kbps and beyond
  • Market will flourish since it is a compelling alternative to purchasing wireless-ready devices
  • Wireless applications for nonstandard devices will begin to gain acceptance as the market continues to mature

Anna Hillers

slide25

Best-In-Class Segment PlayersAccess Device 3Com Palm Products (Palm VII)

Palm computing has shot to the forefront of convenient, handheld Internet access products with the introduction of the Palm VII.

Key Success Factors

  • Maximize revenue streams from product sales, service, licensing and commission on commerce
  • Increase customer base through shift from “organize” to “access” information

Key Initiatives and Strategic Direction

Effectiveness

  • Hundreds of content providers signed up for content provision
  • Wireless manufacturers are creating wireless attachments
  • Joint venture with Aether to form Open Sky – offer services nationwide over any standard
  • Connection speed is limited at 8 kbps
  • Pricing structure somewhat limited in usage.
  • Limited success for the Palm because of distribution only in New York. Technical, billing, customer support, and other issues need to be worked out as well.

pdQ-800

pdQ-1900

Target Market and Services

Business Model

Strategic Positioning

  • Consumer and business markets.
  • Device offerings include the Qualcomm PDQ phone and the Palm VII.
  • Internet access and wireless services available through BellSouth’s Wireless Data network covering 260 U.S. regions
  • Revenue streams: product sales, recurring service revenues, licensing agreements and commissions on commerce transactions
  • Service provided is branded by Palm (Palm.net). Service revenue potential ranges from a cost of $120 to $300 per year, shared with Palm
  • First to market, solid reputation, brand name recognition
  • Palm VII has a slight change in target market: Goes from “people who want to organize their information” to “people who want to access information.”

Anna Hillers

slide26

Market Forces by Value Chain Segment Carriers

The growth of wireless subscribers, coupled with strong Internet growth, are the primary drivers for the service provider market and will lead to new relationships and increased competition between carriers

  • An increase in Internet use results in increased air-time for service providers, and increased revenue per user.
  • Ability to provide Internet and e-Commerce-based services will increase “lock-in” and reduce churn.

Opportunities:

Internet +

Wireless =

  • New relationships between network operators, IPS and wireless equipment manufacturers all aiming to provide wireless access and content
  • Incumbents and new entrants are racing to sign up content providers and establish relationships

Equipment

Manufacturer

Network

operator

ISP

Anna Hillers

goamerica is a new breed of service provider that specifically targets the mobile data market

Best-In-Class Segment PlayersCarrier GoAmerica

GoAmerica is a new breed of service provider that specifically targets the mobile data market.

Key Success Factors

  • “one-stop” shopping concept for nationwide wireless data services through strategic partnerships with equipment makers and content providers
  • Focuses on building brand image

Key Initiatives and Strategic Direction

Effectiveness

  • Formed partnerships with Yahoo and Ericsson Wireless Solutions
  • Reached strong market penetration for its services
  • Teams up with best-in-class players to provide its services

Target Market and Services

Business Model

Strategic Positioning

  • Offers services to corporations carriers, and mobile professionals.
  • Offers an interactive Web content service
  • Service is compatible with several popular devices.
  • Resells air time from AT&T.
  • Acts both as a content aggregator as well as a wireless service provider and provides content aggregation services on a wholesale basis.
  • Offers wireless services to traditional ISP
  • Positions itself as the leading nationwide wireless ISP
  • Partners with best-in-class service providers, content providers and device manufacturers such as AT&T, 3Com, BellSouth Wireless Data, and Wireless Knowledge

Anna Hillers

slide28

WAPProtocol

Stack

Other Server-Based Middleware

GPRS

SAMA+

CDMA+

IS95-B

SMS

Other

WAPClient

Other Device-Based Middleware

(Nettech’s InstantRF, Smart IP . . .)

MicroBrowser

e-Mail

Fax

Other

Windows CE

Symbian’sEPOC 32

Apple’sNewton

Market Forces by Value Chain Segment Middleware/Critical Services

The middleware segment includes a broad variety of software solutions, often consisting of a client/server architecture designed to optimize the mobile link.

Illustrative

www-Protocol Stack

Server-Level Middleware

Network Protocol

Client-Level Middleware

Device Value-Added Servicesand Applications

Device OS

Anna Hillers

slide29

Best-In-Class Segment PlayersMiddleware/Critical Services Phone.com

Phone.com’s positioning as the converter of mass market phones to wireless “companions” has been a huge success.

Key Success Factors

  • Positioning as the ubiquitous standard for wireless Internet applications (creator of WAP)
  • Market leadership with strong penetration to all major carriers and manufactures worldwide.

Key Initiatives and Strategic Direction

Effectiveness

  • 75% of the wireless phone browser market under multi-year contracts to embed its product into new devices
  • 31 global carriers under multi-year contracts, some of which are prepaid licenses
  • Contracts with a lot of manufacturers to use technology in their next phone generation
  • Phone.com’s unique platform is the only integrating Internet and wireless system.
  • “push” data to its customers, increase customer loyalty (by reducing churn), and raise potential revenue per user (RPU) are strong incentives for carriers and phone subscribers to use Phone.com’s technology.

Target Market and Services

Business Model

Strategic Positioning

  • Offers platforms for carriers and for device manufacturers, Content, and Network Management Systems
  • Software optimized for mass market wireless telephones, supports all wireless protocols, and is operating system and processor-independent.
  • 2 sources of income: Serves as a bridge between device manufacturers and carriers
  • Push Server technology allows for increased revenue potential
  • Network management and content applications cater to carrier and developer markets, respectively
  • First-to-market leader in wireless and Internet integration (Former Unwired Planet)
  • Set the standard for wireless data services through its leadership of the WAP forum.
  • Major competitive threats are Nokia, Ericsson, and Microsoft

Anna Hillers

slide30

Market Forces by Value Chain Segment Value-Added Services

Value-added software providers create applications to enhance the ease with which wireless/Internet devices function.

Sample Value-Added Service Offerings

Synchronization

  • The segment is very young and highly fragmented.
  • Many services, once considered value-added— such as e-Mail—are now essential.
  • Large device manufacturers are generally not as concerned with true interoperability as the consumer; therefore, the role these entrants play will be important.
  • Some device manufacturers have shown strong, proactive interest in developing these services, as evidenced by Motorola’s involvement in Starfish.
  • Overall, this segment will continue to grow rapidly.

Conversion of Software

Information Management

Access Software for Content and Applications

Anna Hillers

slide31

Best-In-Class Segment PlayersValue-Added Software AvantGo

With its product expertise in transforming “Web content” to “wireless data” and its capability to aggregate numerous content partnerships, AvantGo is positioning itself to become a true “wireless portal.”

Key Success Factors

  • Strives for industry leadership through high profile partnerships
  • Bundles e-Commerce opportunities with content channels

Key Initiatives and Strategic Direction

Effectiveness

  • "wireless portal” for Palm OS and Windows CE devices, like AOL for desktop PCs
  • Bundling agreements on devices from HP, Phillips, Casio, Palm Computing, IBM, and Symbol
  • 40 Fortune 500 companies use AvantGo to provide mobile information
  • Supports hundreds of thousands of registered users of both Palm OS and Windows CE handheld devices

Target Market and Services

Business Model

Strategic Positioning

  • Enterprise product and a free consumer service.
  • Scalable solution for transferring data and applications onto handheld computers.
  • Personalized content offline or wirelessly in real time—anytime, anywhere Compatible with PalmOS/Windows CE platforms
  • Mobile enterprise solutions and Web-based application hosting to Fortune 1,000 companies
  • Partnerships with a variety of content providers
  • Free service as a promotion for business solutions
  • Spearheading the Mobile Link initiative, an open industry standard for connecting mobile devices to server-based applications
  • Microsoft and 3Com are investors. AvantGo serves as an independent software vendor (ISV) to both

Anna Hillers

slide32

Market Forces by Value Chain Segment Content

In today’s wireless data market, there are three main groups of companies that are providing content to all types of wireless devices.

Information Suppliers

Value-Added Information Resellers

Web Portals

Description

  • Media and news companies that author, publish, and syndicate content
  • Act as intermediaries by aggregating, customizing, and transforming Web content
  • Resell content and services primarily to carriers and/or end-users
  • No brand presence on the Web
  • Act as intermediaries by aggregating, customizing, and transforming Web content
  • Large brand presence and subscriber base on the Web

Players

  • CNN
  • Reuters
  • The Weather Channel
  • Fidelity
  • Intelligent Information Inc. (iii)
  • AvantGo.com
  • GoAmerica
  • Infospace.com
  • @Mobile
  • Palm.net
  • Yahoo! Mobile
  • MSN Mobile
  • AOL Anywhere

Features

  • Basic news, financial and weather information
  • Personalized content including news, financial information, and weather alerts
  • Limited content
  • e-Mail, calendar tools, and targeted e-Commerce
  • Personalized content including news, financial and entertainment information
  • Large breadth and depth of content
  • e-Mail, calendar tools, and e-Commerce

Anna Hillers

yahoo is positioning itself to be the leading content provider for wireless internet users

Best-In-Class Segment Players ContentYahoo!

Yahoo! is positioning itself to be the leading content provider for wireless Internet users.
  • Continue to build strategic content distribution agreements with a number of wireless service providers.
  • Increase revenue stream by incorporating more content-driven commerce opportunities and value added services.

Key Success Factors

Key Initiatives and Strategic Direction

Effectiveness

  • Acquired Online Anywhere, a provider of Web delivery solutions for non-PC appliances, which tackles the non-PC market
  • Announced several wireless content distribution agreements: PageNet, Sprint PCS, Palm Computing
  • Strong commitment and investment by Yahoo!
  • Difficult to assess since wireless Internet access and content distribution is in a very early stage

Target Market and Services

Business Model

Strategic Positioning

  • Users of Palm and Microsoft CE computing platforms
  • Markets Yahoo mobile! Via Yahoo site
  • Targets Yahoo!’s existing 35 million subscribers and that of its wireless partners’ (Sprint PCS, PageNet)
  • “Stickiness” shall generate revenues through Yahoo online storefront and auction site
  • Fees for the distribution of personalized news and content alerts to pagers and PDAs
  • Personalized content and direct marketing
  • First portal to align itself with a service provider to provide Web access
  • Wireless partners for access to Yahoo content “anytime and anywhere”
  • International expansion

Anna Hillers

with wap as a standard and mobile internet access growing wireless e commerce is set to explode

Online Banking

Auctions

  • Players
  • Wellsfargo.com
  • Paybox.com
  • Citibank

Online Stock Trading

  • Banks will push their services to wireless users
  • eBay and SkyTel have partnered to provide auctioning services to SkyTel’s two-way paging customers
  • Discount brokerages already offer wireless stock trading
  • Fidelity has teamed up with Palm to offer brokerage services
  • Players
  • eBay
  • onsale.com
  • Yahoo! auctions
  • Players
  • Fidelity
  • e-Trade
  • Mydiscountbroker.com

Entertainment

  • Showtimes.com currently transmits showtimes to Yahoo! mobile users; next step is to sell tickets
  • Look for traditional ticket houses to sell tickets wirelessly

Retail

  • Books and CDs represent low-cost impulse purchase opportunities for wireless users
  • Expect significant wireless e-Tailing

Travel

  • Players
  • Travelocity
  • Expedia.com
  • Biztravel.com
  • Ability to purchase airplane, train, and bus tickets and reserve car and hotel reservations
  • Players
  • Ticketmaster.com
  • Showtimes.com
  • Players
  • Amazon.com
  • Buy.com
  • Barnesandnoble.com

Market Forces by Value Chain Segment Commerce

With WAP as a standard and mobile Internet access growing, wireless e-Commerce is set to explode.

Wireless User

Anna Hillers

slide35

Best-In-Class Segment PlayersContent/Commerce Intelligent Information Incorporated

Intelligent Information Incorporated is striving to make the user experience more personalized, a key success factor in this industry.
  • Increase number of content distribution partnerships with wireless service providers
  • Expand content and services to meet the immediate and high value-added needs of users

Key Success Factors

Key Initiatives and Strategic Direction

Effectiveness

  • Partnered with AT&T Wireless to provide personal news service for its digital/PCS subscribers.
  • Customer base: 50% of the largest U.S. paging carriers and 8 PCS/digital cellular carriers
  • Ability to customize information leads to reduced churn and increased revenue per user through longer on-phone times and more outbound calls.

Target Market and Services

Business Model

Strategic Positioning

  • Provides wireless personalized and customizable information and consumer e-Commerce services by creating a “wortal”
  • Markets content and services to wireless carriers and media enterprises
  • Revenue through the distribution of content to wireless service providers and new media enterprises.
  • Value-added services to wireless carriers: customer care and billing for news services
  • Cooperation with Nokia for activities focused on supporting WAP and the growing demand for mobility
  • Developing local/national content

Anna Hillers

slide36

Evolution of wireless technology

Wireless meets Internet

Everything – everywhere - always

Best-in-Class Segment Players

Trends and Emerging Business Models

Anna Hillers

slide37

How would wireless

E-Commerce

be marketed?

What Type of e-Commerce Opportunities Should Be Delivered?

Who Keeps the Transaction Revenues?

Banner Ad

User

Content

Trends and Emerging Business Models Trends

Partnership and alliances fuel the current evolution, however it is unclear how the customer can reached and who “owns” him or her

Anna Hillers

slide38

Palm.Net

Emerging Business Models The Device-Centric Model

The new Palm model is a compelling example of how a device manufacturer can capture value in this new industry.

Infrastructure

Access Devices

Carriers

Middleware/ Critical Services

Value-Added Services

Content

Commerce

CustomerExperience

User logs on to Palm.net

mySimon.com

User auctions for product on eBay

User compares prices and reads reviews through mySimon.com

Customer purchases Palm VII device

Additional potential recurring revenue stream

$$

$$

$$

ValueCaptured

$600

“Traditional” revenue stream

Retail price

$10–$25 per month

mySimon and other content providers strike deals to embed software on Palm

Palm earns commission on transaction

Anna Hillers

slide39

Infrastructure

Access Devices

Carriers

Middleware/ Critical Services

Value-Added Services

Content

Commerce

Select Content/Commerce Partnerships

Wireless

WWW

Customer Pays for Network“Air Time” and Access to Content

Select Content and Commerce Partnerships

Trends and Emerging Business Models The Carrier Owns All

In a carrier-centric model, the carrier truly “owns all”—the service, the content, and most importantly, the customer experience.
  • Customer pays carrier for network “air time” and access to content.
  • Models can vary: Subscription-based, pay-as-you-go, and “free device/charge for service.”
  • Carriers pay content aggregators and suppliers.

Revenue Flows

Anna Hillers

slide40

Infrastructure

Access Devices

Carriers

Middleware/ Critical Services

Value-Added Services

Content

Commerce

Wireless

Trends and Emerging Business Models The Wireless Portal: “Wortal”

In the “wortal” business model, established Internet portals still provide free content, thus successfully owning the customer in the wireless world.

WWW

Pays for “Air Time” and Not Content

Other Companies Pay for Advertisements andMarketing Services

Selected Content/Commerce/Applications

  • Customer pays carrier for network “air time” (i.e., flat monthly service fee or per-minute usage rate).
  • The “wortal” earns revenues from advertising and targeted marketing services for e-Merchants.
  • Content is free for end-user.

Revenue Flows

Anna Hillers

slide41

Success?

  • Commitment of big players
  • Mobility is a customer need
  • 3G = ww success like GSM
  • 2 Mbit/sec will be needed

+

Wireless

Internet

  • Bubble?
  • Volatile stock markets
  • Fierce competition
  • 3G = 3rd generation or third failure
  • Inherent fixed infrastructure, 2Mbit/sec = overkill?

Trends and Emerging Business Models Summary

The success or failure of wireless Internet will depend on the capability of all participants to offer superior value to the customer

Anna Hillers

ad