Mobile World Congress 2011. Insights and Observations - Dan Hodges

MediaBizBloggers Guest Contributor Dan Hodges shares his overview from the Mobile World Congress 2011 held in Barcelona February 1417The mobile industry is entering the third wave of innovation enabling connected life and businesses on a global scale This wave of innovation is transforming the way people communicate with longterm impact on the world economy and civil society The CEOs of the top operators handset makers network enablers software and service companies governments NGOs and startups were all in attendance sharing their views on how to connect the world Expect Rapid Disruptive Transformation What stood out most to me was the rapid and transformative rate of change and its implication on government business people rich and poor The revolution began when mobile passed the Internet at one billion subscribers and went largely unnoticed Most revolutions are hard to detect but the fruits of this revolution began with mobile health in Asia banking in Africa English learning in India as well as the most recent upheavals in Tunisia and EgyptquotEach time a transition happens you have to bet five to ten years before it is obvious or you miss your windowquot John Chamber CEO CiscoI will provide some data points below that highlight where we have been and where we are projected to go1 Seveneight billion mobile subscribers or 80 of the world39s population by 2015 it took 100 years to wire 1 billion people and 15 years to reach 5 billion people according to Hans Vestberg CEO of Ericsson2 For every 1000 new broadband lines installed 80 new jobs are created ATampampT 20113 For every 10 of broadband penetration GDP increases by 1 source ATampampT 20114 The average Android phone has 20000 times more computing power than the entire lunar mission according to Eric Schmidt of Google5 There has been an increase of 60 in network speed over the last two years ATampampT6 Google is moving from syntax to semantics for mobile phones The next generation of mobile phones will have language translation software allowing you to speak to people around the world without any knowledge of the language they are speaking7 Thirtyfive hours of video are downloaded to You Tube every minute according to Eric Schmidt8 4G build out in mature markets and 3G in developing countries9 Facebook now has 200000000 mobile users and is growing rapidly10 Smartphone ownership grew 10 to reach 27 of subscribers in the US 36 of users use mobile for web browsing The number of mobile users accessing a social media site grew 56 to nearly 58 million users in 2010 In Japan 75 of mobile users connect to mobile via their browserMobile Product Innovations Highlighted including Maps Social Networks Gaming Augmented Reality NFC near field communications Translation speak in English and hear in French SMS and NFC vending machines mass deployment within the next few years Ericsson had the first SMS payment vending machine in 1997 in FinlandNew Tablet LaunchesRIM PlaybookMotorola XoomSamsung Galaxy SIISony Ericsson Xperia PlayLG OptimusTelecom Industry Highlights WAC Wholesale Applications Community established the purpose of the group is to provide standards for apps so they can be used in smart phones and feature phones The initiative promises inapp billing support and user identification The specifications support HTML 5 with multimedia capabilities Verizon China Mobile MTS Smart Orange Telefonica Telenor Vodafone have all signed on Cloud building out the mobile broadband using cloud computing servicesLTE Long Term Evolution has been embraced by most major operatorsTelefonicaamp160The industry will need to increase capacity 10X over the next few years to accommodate demand from new users higher usage by smart phone users and mobile videoATampampT CEO Randall Stephenson says smart phones will transform the market the mobile tablets gaming and mobile technology used in phones The cloud will be essential to manage all these choices 50 of consumers in the US are using three or more devices to access the same content The Wall Street Journal being a prime example Expect explosive growth in mobile services and advertising similar to SMS growth which went from 26 million in 2002 to 5 billion in 2008 50 of tablets in the US are streaming video 15 billion apps have been downloaded and the projected revenue for apps in 2015 is 50 billionHTC CEO Peter Chowamp160 they have developed a phone with a Facebook button which is optimized for Facebook Facebook has 200 million mobile usersIsisamp160 Joint venture with ATampampT Verizon and Tmobile will transform the way people shop pay and save McDonald39s is spending 2 million to install contactless NFC readers in 1200 stores in the UKKeynote Highlights Nokia extending connectivity to the unconnected 80 of the world39s population is within cell phone range yet only 20 are connected to the Internet Nokia will innovate with Nokia Money and Nokia Life ToolsGoogle Eric Schmidt says Android is signing up 300000 new customers dailyMicrosoft Steve Ballmer promoted Windows 7 as the most operator friendly platform The demo they gave showed deep integration with all the Microsoft products such as Xbox live music bing IE9 gaming and office quotThe opportunity for growth is huge as smart phones get into the hands of the massesquotTwitter Dick Costolo said that 40 of tweets come from mobile devices and 50 of Twitter users access from more than one platform A record 6000 tweets per second were recorded during the Super BowlYahoo targeting personalized mobile content deliveryAdvertising Mobile advertising was represented on various panels and keynote speeches during the event This is the first time that advertising has taken a prominent role at this event CEOs from WPP and IPG gave keynote presentations and the panels featured leaders in the advertising space In 2009 it is estimated that the global mobile advertising marketplace was 175 billion In 2014 it will grow to 87 billion In 2011 53 billion subscribers generated 177 billion downloads bringing in 151 billion in revenue In 2015 1 billion users will access the Internet on mobile making it the primary source of Internet browsingSir Martin Sorrell says the average user has downloaded 60 apps in 2010 vs 10 apps in 2008 Consumers are spending 25 of their media time online and advertisers are spending 14 of their advertising budget on online advertising He announced the formation a new agency group called quotPossible Worldquot which will help lead the agency39s efforts in new media technologies impacting consumers Fill rates for iAd are 10 Advertisers are resisting and pushing back because of lack of informationmPublishing Highlights1 ebooks account for 95 of all book sales2 Enhanced books are emerging3 Apps are a short term fix4 Multiplatforms are the future5 Education is going digital6 New business models are emergingmHealth HighlightsA McKinsey study shows that 57 of people in US Brazil and India respond favorably to a doctor phone service and would be willing to pay People call in to a hotline for medical advice An SMS QampampA service would have market appeal in emerging markets The mobile phone uses for health1 Patient care on demand support for caregivers2 SMS prescription reminder3 SMS appointment reminders4 Global access to medical care5 Prevention and wellness6 Click to diagnosis in Botswana7 Remote access to doctors services drug authentication8 Remote health monitoring9 It takes 1517 years from the moment of innovation to mass acceptanceBarriers 1 Complex ecosystem2 Standards and regulations3 Cultural barriersmCommerce HighlightsLoyalty programs on the mobile phones are driving mobile commerce according to Western Union 2011The delivery of payroll to Afghan police officers where 10 of the police force in Afghanistan is paid via mobile phoneNo companies dominate the mobile payment segment in the US The players in this space are the credit card companies the operators the banks and the handset manufacturersSelected payments companiesWipro Comet targeting consumer offersBoku global money payment solutionPayPal mobile ran 4 billion of revenue through its system in 2010Fundamo has an mbanking solution in emerging marketsIndia has a major initiative to provide banking services to the population Mobile Money for the unbanked the goal is to make mobile money services available to 20 million unbanked customers living under 2 a day by 2012 Nokia is teaming with the bank in India to help accelerate acceptance of the unbanked as Nokia has 3X the points of distribution as the banking system Here is an overview85000 banks65000 ATM39s60 million Internet users690 mobile phone users60 of the population does not have access to bank accountsOnly 30000 of the 600000 villages in India have a bankThe goal for 2020 is for every household to have a least one member with a bank account46 million consumers have biometric cardsBy 2014 there will be 1 billion mobile phone users in IndiaIn the US market the Bank of America has 32000000 customers using digital banking and 6000000 customers using mobile banking80 of the mobile banking customers are using it The mobile customer is the most valued customer for Bank of AmericaOther GSMA and industry initiatives featured includeEducationEntrepreneurshipmWomenDan Hodges is Managing Director of Consumers in Motion Prior to founding Consumers in Motion he led the worldamp8217s largest global sales force dedicated to mobile advertising and marketing at Nokia Interactive In 2008 his Nokia team won the MMA Award for Innovation with mobile advertising for Unilever39s Seda Teens He has worked for over twenty years at several of America39s premier media companies and advertising agencies and has held leadership positions at Nokia Discovery Communications Inc DCI WebMDMedscape Inc MediaVest BBDO and Foote Cone ampamp Belding Dan has also served as a Board Member advisor andor consultant to companies and countries in the Internet mobile and television industries Dan can be reached at danconsumersinmotioncom

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