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Yankee Group Says the Mobile Internet Must Be Open

Posted on: Wednesday, 22 October 2008, 12:00 CDT

At Mobile Internet World 2008, Yankee Group released a new report that determines the success of the mobile internet depends on its ability to become a standardized open environment, like the fixed internet. The report, Opening the Mobile Internet, explains how open mobile internet access will create a massive opportunity for the extension and creation of new and traditional internet applications, services, use cases and sources of information, and set off a wave of changes within the industry in the next 5 years.

Among these changes:

-- Prices will flatten. Competition, growing wireless broadband availability and the threat of alternate business models will all flatten pricing.

-- The nature of subsidies will be reinvented. The need to develop new sources of revenue that monetize the subscriber will force the previous basis for net present value calculation to change.

-- New service brokers will enter the market. Assuming a la carte access models will come into play, there will be an expanded market for subscriber identity management, as well as an entity that can broker connectivity and offer device vendors the opportunity to participate in service activation revenue streams.

Consumers will likewise be impacted by changes in the market:

-- One device won't suffice. Mobility will become part of non-traditional devices and the gadget drawer will remain crowded.

-- Every application is a mashup. When users look for directions, for example, the experience will blur location, search, advertising, messaging, social networking and even enterprise modalities. The value of the consumers' clickstream--now enhanced with location, content, platform and more--will skyrocket for those firms able to capture and merchandise it.

-- Consumers' personal identities will be traded for value. As mobile operators cede control of mobile services to new partners and lose the ability to directly monetize service and traffic, pressure to share this information with partners in exchange for some form of payment will increase.

For all members of the mobile ecosystem, change is inevitable to their continued success. John Jackson, Yankee Group vice president of research and the report author, explains, "All mobile networks have an imperative to create an environment where their subscribers can access high-value, best-of-breed internet applications, content and services in a way that preserves the integrity of the online experience."

Visit www.yankeegroup.com to learn more.

About Yankee Group

The people of Yankee Group are the global connectivity experts(TM)--the leading source of insight and counsel trusted by builders, operators and users of connectivity solutions for nearly 40 years. We are uniquely focused on the evolution of Anywhere, and chart the pace of technology change and its effect on networks, consumers and enterprises. Headquartered in Boston, Yankee Group has a global presence including operations in North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific. For more information, visit http://www.yankeegroup.com/.

Source: Business Wire

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