TECHNOLOGY

Infinite potential in mobile technology

by Ahsen Javed

Although innovative applications will continue to drive the mobile phone market over the next five years, consumers still value reliability and price.

By the end of the year Infinite potential in mobile technology, the number of mobile phone subscriptions is expected to reach five billion globally. The outlook for telecommunications providers is dynamic, but far from certain.

Growing competition from non-traditional providers, rapidly rising demand for network bandwidth and consumer expectations for new technologies have emerged as key issues that will shape the future of the sector.

Against this backdrop, Oracle has released the findings of its 'Opportunity Calling: The Future of Mobile Communications' report. More than 3,000 mobile phone users around the world were surveyed on their use and perceptions of mobile phones, interest in new technologies, and expectations for the next generation of mobile communication. Twenty per cent were from the Asia Pacific".

The Asia Pacific market contains unrealised potential for telecommunications providers. For example, whereas 41% of consumers globally use more than one mobile handset, just 26% in the Asia Pacific do so.

This article summarises the findings of the survey and concludes with some recommendations on how telecommunication companies can use them to plan ahead for growth and generate new revenue opportunities.

Key Findings Reliability and price

Despite the smartphone revolution, this Oracle study shows that consumers everywhere still value reliability and price over technological innovation. Less than half the respondents said they look for state-of-the-art handsets. By comparison, 85% rated reliability and 81% rated price as top priorities.

Notably, however, 77% said price would be their main motivator to change service providers. Further, although 82% of customers said their provider was currently doing a good job, more (83%) said they might consider switching to non-traditional providers such as Google, Sony, Apple or Facebook if these offered similar pricing and service quality.

By comparison, consumers in the Asia Pacific market seem slightly more conservative. Fewer (73% compared to 77%) said they would switch to another provider because of better pricing and less (78% compared to 83%) would consider a non-telecom company as their provider.

Globally, consumers are keen to cut the overall cost of their communications. Less than a third (26%) of those interviewed currently bundle their mobile phone bill with other communication services, but an overwhelming 88% said they might do so if buying more saved them in the long run. In contrast, 42% of Asia Pacific consumers already bundle two or more of their communication services.

New mobile technologies and applications

Of course, the mobile market is not just about costs and reliability. Within five years, more users are likely to connect to the internet using their handsets than from desktop PCs, a trend that is driving demand for more innovative features. This should, in turn, mean new revenue opportunities for providers.

According to the Oracle report, 54% of mobile phone users expect their phones to replace their GPS systems and iPod or MP3 player within five years. Phones are likely to supersede digital cameras according to 52% of respondents, 27% want to use them as their PC and video recorder, 22% as an e-reader and 16% as a television.

Predictably, the younger demographic-those aged 18-33 years-are three times as likely to use their phone as an entertainment device and twice as likely to use their phone as a personal computer than those aged 46-64 years.

In terms of general usage, 94% of Asia Pacific customers use their phone as a communications device and 29% as a mini computer. Notably, 38% use it for entertainment, which is well ahead of uptake in the United States (20%), Europe (33%) and the Middle East (32%). In the Asia Pacific, 81% of consumers have used their phones to send a text message, 47% to read or send email, and 18% to update their status on a social media site.

Respondents to the Oracle survey anticipated that by 2015, their phones would incorporate a raft of practical new applications and features that would enable them to do everything from starting a car to being used as a credit card.

Although the majority (58%) indicated that they would like to use their phones-instead of cash or cards-for purchases, there is still some caution about the prospect. Thirty-nine per cent said they were not comfortable with the idea, but this was offset by the fact that 61% were.

Citizens in the Generation Y category (respondents born between 1977 and 1992), were more at home with the concept of using their phones to make purchases, while slightly more than half (52%) of Baby Boomers (respondents born between 1946 and 1964) were comfortable with the concept. In both generation groups, males were more comfortable with the idea than females.

Consumers have a number of new or upcoming features on their mobile phone wish list. These include the ability to chat via video and scan barcodes to access online content. However, the survey reveals that while most want these features, only 17% and 10% respectively would be prepared to pay for them. Of greatest interest was the ability to monitor and manage home electricity use. Sixty-seven percent of respondents said they wanted this feature and 22% would be willing to pay for it.

Five years from now, 49% of Asia Pacific consumers expect their phone to replace their digital camera, 34% their credit card and 30% their PC. Notably, they are also more likely than their global counterparts to have used their mobile phone to purchase an item online (14% compared to 7%) and to have the ability to chat via video on their phones (11% compared to 6%).

Advertising revenue

Advertising direct to mobiles is a potential revenue generator. In the survey, 68% of respondents said they would be happy to receive advertising on their mobile phones in exchange for price discounts or added services.

Most interest came from younger users, with the average customer willing to receive up to six 15-second advertisements each month if they were given extra calling minutes, texts or free downloads.

This was particularly evident in the Asia Pacific market, where 13% of survey respondents said they would be interested in receiving free downloads in exchange for listening to or watching advertisements on their handsets, compared to just 7% globally.

Worldwide, there is real reluctance to receive localised commercial content based on user location. Only 33% expressed any interest in the idea, citing privacy and security concerns. Forty-four percent were emphatically opposed to being tracked by their mobile provider, meaning telcos have a lot of work to do if location-based advertisements are going to gain traction.

Recommendations for telcos

The Oracle report confirms that while technical innovation is essential to meeting the future demands of consumers, it will be critical to first ensure that the 'brass tacks' of service activation, delivery and billing are seamless, accurate and fast.

According to the report, telcos need to build and analyse customer data to ensure customer needs are met quickly. To fully capitalise on potential revenue streams they need to learn more about customers' privacy concerns and take measures to resolve them.

Finally, telcos need to plan for the future by working with their technology providers to ensure network and back-end systems are scalable, securely open to developers, and integrated across services.

(The writer is Managing Director, Oracle Pakistan and South Asia Growth Economies)

Silver for 230i at W3 Awards

230 Interactive Pvt Ltd (230i), a digital marketing and development agency in Sri Lanka, was recognised for its creative excellence and innovative solutions, at this year's W3 Awards. 230i won the silver award in the Hotel and Lodging category for the development of the website www.johnkeellshotels.com.

W3 is sanctioned and judged by the International Academy of Visual Arts, a body consisting of top executives from media, interactive, advertising and marketing firms worldwide. Outstanding websites, web marketing, web video and mobile applications created by interactive agencies, designers and creators from around the world are recognised at the awards.

230i was picked from over 3,000 applications received, demonstrating the company's high standard of excellence and ability to produce world-class creative solutions.

Co-founded by Sanjay Mendis and Mugunthan Balakrishnan, 230i is committed to providing digital brand communications solutions encompassing strategy, design, business and marketing. Their primary focus is placed on online branding and architecture when providing solutions which sets them apart from the traditional web development companies. "www.johnkeellshotels.com, which represents our corporate umbrella has been an important cog is our overall e-sales strategy" said Sector Head Sri Lanka resorts for the John Keells Hotels Group Jayantissa Kehelpannala. "We congratulate 230i on this achievement and thank them for their valued partnership".

The agency's portfolio includes the John Keells Hotels Group, Hilton Colombo, Capital Alliance, My Eagle Funds, Leo Burnett Solutions, Harpos, Coffee Bean and Tea Leaf. 230i maintains a presence in the international market by offering online solutions for small and mid size companies in the US and Europe.

International Marketing Advisor to 230 Interactive Julie Rohem said, "As advisor to 230i I am proud of the award that 230i has earned and believe that the 230i team is finally getting the recognition it deserves. In a digital sea of agency clutter, 230i really stands out as a nimble, scrappy, yet eloquent provider of services."