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Working together to answer call of mobile revolution

Posted on: Monday, 1 December 2003, 06:00 CST

YESTERDAY, the future was Global System for Mobile communication (GSM)

technology offering just mobile telephony and text messaging

capabilities. Today, with General Packet Radio Service (GPRS) and the

advent of third-generation (3G) network on Universal Mobile

Telecommunications System (UMTS) technology, a new age of communication

is dawning on us and the way we live.

With better available technology at our disposal, we are edging closer

towards richer multimedia potentials from bare, basic communication

needs. In this age of consumerism, expectations of customers will

continue to challenge the mobile communication industry to improve all

aspects that influence their daily lives, such as mobility and

connectivity; fun and entertainment; comfort and security; productivity

and efficiency.

When it comes to mobile services, customers are demanding values such

as location independence, content availability, user friendliness,

interactivity and personalisation.

One of the key challenges was technological ability. Images that are

too small and connections that are too slow - two reasons why Internet

and multimedia applications for mobile phones have yet to take off.

However, GPRS and the new UMTS networks will increase data transfer

rates, thus making cell phones suitable for not only pure voice and text

communication but also multimedia and video contents.

Tomorrow's mobile communication will ensure that users have constant

access to the information they want and need, anytime and anywhere.

For the younger generation, the focus will be on pure entertainment

along with communication and messaging applications. Music, videos,

games, multimedia and "on demand" elements will be powerful drivers of

the mobile communication industry.

Opportunities are abundant as new innovative applications and services

are required to meet this market segment. As these new-age products are

characterised by a relatively short product life cycle, careful strategy,

precise timing and focus on a specific target group are of key importance

here.

However, the introduction of new applications does not depend on time

to market and pricing alone, but also on price transparency. Hence, an

easy-to-understand pricing mechanism will promote the acceptance of such

applications and services among customers.

The future trend will see the growing importance of "Internet on the

move", where mobile portals will play a central role. They will provide

companies and private customers with simple access to applications and

data independently from the brand of the utilised device. Offerings and

services will be personalised, interactive, and prompt. Partnerships with

content providers will provide the greatest possible variety of content

offerings, making it possible to address individual customers

individually, i.e. precisely via personalised offerings.

What will be the business future of the mobile communication industry?

According to Siemens I&C researchers, pure voice communication will

account for 47 per cent and data transfer for 53 per cent of mobile

business sales in 2010.

To give a vague impression of the myriad applications and services

behind these figures: data business breaks down to 32 per cent

transactions; 18 per cent information services and surfing; 16 per cent

multimedia; 10 per cent machine to mobile/ mobile to machine; 7 per cent

business data; 7 per cent advertising; 6 per cent e-mail; and, 4 per

cent short messaging service.

So how are mobile communication businesses and players handling the

more sophisticated demands and expectations from customers?

On the verge of 3G, suppliers of infrastructure, mobile devices,

applications and content, not to mention the mobile operators themselves,

are in no easy position to fulfil the fundamental framework.

This is because corporate and private customers expect broadband

multimedia and m-commerce services at acceptable prices before they

conclude a contract.

Challenges are aplenty, as all industry players are inter- dependent of

each other, while no one is willing to take the lead in jumping on the

bandwagon.

For example, content providers demand suitable consumer devices and

adequate network coverage before starting their service offerings.

Conversely, vendors of devices and developers of applications with their

extremely short product life cycles are waiting for the establishment of

a 3G mass market before they develop and produce a greater range of

devices and applications.

Finally, network operators and licence holders are waiting for adequate

availability of 3G-ready devices and attractive services with

comprehensive content before launching their networks.

Infrastructure, devices, applications, and content development are also

influenced by governmental regulations and the specifications of the

mobile operators.

Hence, with the underlying challenges that the industry faces, it will

only be possible to break through this cycle of demands and expectations

if all parties involved pull together and carry out the necessary

groundwork to answer the call of mobile revolution.

The writer is the senior vice-president (integrated business solutions)

of Siemens Malaysia Sdn Bhd.

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