Mobile bill payments will reach $214 billion in gross dollar volume in 2015, up from $16 billion in 2010, which represents a 68 percent compound annual growth rate. A November 2010 Aite Group report stated “Over the past 12 to 18 months, the United States has begun to move closer to a tipping point that will lead to the popularization of mobile payments.
Wednesday, January 5, 2011
Mobile Payment Among Top-5 Trends for 2011
Mobile payments are expected to be among the top-five trends in the payments business in 2011. Mobile devices are poised to become a primary form of payment for millions of people around the world, according to the Aite Group.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Frontier plans big FiOS TV rate hike
Frontier Communications Corp. plans a big rate hike for some of its FiOS cable TV customers in Oregon and Washington.
Rates will rise 46 percent or more for standard cable plans, the result, Frontier says, of rate hikes by the cable networks. If you ever wanted an illustration of the impact content rights have on smaller firms, this is it. Verizon obviously is able to negotiate lower content rights rates, as it has more volume, and programming rates are tiered based on volume.
The higher rates won't immediately affect customers who have Frontier FiOS TV contracts. But for customers without a contract, and customers whose contracts are expiring, the rate hikes will be steep.
For example, the monthly cost of Frontier's standard, 220-channel package will rise from $65 to $95 a month -- a 46 percent increase. The higher rates kicked in Monday for new customers, and start February 18 for existing customers without a service contract.
Rates will rise 46 percent or more for standard cable plans, the result, Frontier says, of rate hikes by the cable networks. If you ever wanted an illustration of the impact content rights have on smaller firms, this is it. Verizon obviously is able to negotiate lower content rights rates, as it has more volume, and programming rates are tiered based on volume.
The higher rates won't immediately affect customers who have Frontier FiOS TV contracts. But for customers without a contract, and customers whose contracts are expiring, the rate hikes will be steep.
For example, the monthly cost of Frontier's standard, 220-channel package will rise from $65 to $95 a month -- a 46 percent increase. The higher rates kicked in Monday for new customers, and start February 18 for existing customers without a service contract.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Internet Gains on Television as Public's Main News Source
The internet is slowly closing in on television as Americans’ main source of national and international news, according to researchers at the Pew Research Center for People and the Press.
Currently, 41 percent say they get most of their news about national and international news from the internet, which is little changed over the past two years but up 17 points since 2007.
Television remains the most widely used source for national and international news, overall. About 66 percent of Americans say it is their main source of news, but that is down from 74 percent three years ago and 82 percent as recently as 2002.
Click image for larger view
Click image for larger view
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Tuesday, January 4, 2011
Netflix Button Coming to Remote Controls
Netflix has struck deals with makers of TVs and DVD players to put a one-click “Netflix” button on remotes starting this spring, Netflix says.
Such a button would make it easier for people to go straight to their Netflix account, rather than clicking through other menus, which take time and could potentially distract the viewer.
This reminds me of the "icon on the screen" or "icon in the system tray" discussions people used to have in an earlier wave of online media, about 2000, when it was assumed the display would be a PC, and therefore the value of on-screen real estate was deemed valuable.
It isn't a trivial advantage, as icons on main smartphone screens are seen as having value, or as preloaded software typically is seen as having business value.
Netflix Button Coming to Remote Controls (Wall Street Journal subscription required)
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Hispanic Consumers are "Ideal" Online Consumers
A new digital marketing study conducted by comScore and commissioned by Terra reveals that Hispanics are the ideal online consumers.
For example, Hispanics are more responsive to targeted ads with 37 percent saying they would likely respond to them vs. 30 percent for non-Hispanics.
The research also re-affirms that the Internet is the main media source of information for Hispanics when researching information about any service or product.
For example, Hispanics are more responsive to targeted ads with 37 percent saying they would likely respond to them vs. 30 percent for non-Hispanics.
Some 35 percent of Hispanics compared to 27 percent of non-Hispanics said they are more open to advertising on sites where they read or contribute user generated comments.
Some 37 percent of Hispanics, compared to 25 percent of non-Hispanics enjoy the interactivity of online video ads, and the ability of obtaining additional information which is unavailable through a traditional TV ad.
Furthermore, 36 percent of Hispanics, compared to 24 percent of non-Hispanics claim that Internet advertising has motivated them to visit a retail establishment while 35 percent of Hispanics, compared to 25 percent of non-Hispanics are likely to attend movies based on their online campaigns.
The study also shows Hispanics are more open and willing to explore new technology presumably to stay up to speed with trends. In addition, these initiatives are likely to enhance their perception of the brand with 60 percent of Hispanics, compared to 42 percent of non-Hispanics saying that they react positively to I-Pad demonstrations, virtual shoppers, mobile coupons, live streamings and others.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
A La Carte is a 20th Century Solution to a 21st Century Problem
If in 2011, larger numbers of TV viewers become more screen-agnostic, using Hulu, Netflix, mobile video to a greater extent than they do today, with their demonstrated appetites for 'snackable' video clips of all sorts, and as major TV distributors and appliance vendors ramp up sales of devices that allow Internet-delivered TV to be viewed on standard TV screens, it is possible more questions are going to be asked about the future of linear TV.
That would come as no surprise. It is not clear whether older debates about allowing or forcing linear TV to be offered channel-by-channel, in a la carte fashion, will resurface. Right now, it seems unlikely. Nor is it especially likely any of the leading linear video distributors will reverse course and suddenly decide their business models are better served by a widespread shift to a la carte viewing.
That would come as no surprise. It is not clear whether older debates about allowing or forcing linear TV to be offered channel-by-channel, in a la carte fashion, will resurface. Right now, it seems unlikely. Nor is it especially likely any of the leading linear video distributors will reverse course and suddenly decide their business models are better served by a widespread shift to a la carte viewing.
Most important of all, content owners and program networks do not yet see the value of a la carte buying. Content businesses are all about the content, fundamentally. Without access to the "hot" content lots of people want, any distribution channel will enjoy modest success.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Is Cable TV "Toast"?
There was a time when a reasonable person might have questioned the extent of demand for 'cable TV.' Why people would pay extra when they could just watch broadcast TV did not seem to make sense. But then cable TV changed, transitioning from its original 'antenna reception' to the 'more choice' platform it uses today.
Lots of observers have to be wondering whether something about that significant could happen within the next decade or so. Granted, that pace of change would seem glacially slow to people expecting change at the rate of web apps, but the TV ecosystem is much more highly integrated, unlike the loosely-coupled Internet ecosystem.
But that same loose coupling could be a huge issue if content owners and networks decide to make lots more content available for Internet streaming, and if the rest of the supporting ecosystem can get critical mass. Those are big 'ifs.'
Still, even some executives in the multichannel video business seem convinced huge changes are possible. Shawn Strickland, Verizon VP, says the firm, which offers FiOS TV, now believes a substantial amount of video cord cutting will happen.
'We've been looking at this issue for the better part of a year, and our perspective has pretty much done a 180 to a belief now that pay-TV 'cord cutting' will happen,' he says."
Lots of observers have to be wondering whether something about that significant could happen within the next decade or so. Granted, that pace of change would seem glacially slow to people expecting change at the rate of web apps, but the TV ecosystem is much more highly integrated, unlike the loosely-coupled Internet ecosystem.
But that same loose coupling could be a huge issue if content owners and networks decide to make lots more content available for Internet streaming, and if the rest of the supporting ecosystem can get critical mass. Those are big 'ifs.'
Still, even some executives in the multichannel video business seem convinced huge changes are possible. Shawn Strickland, Verizon VP, says the firm, which offers FiOS TV, now believes a substantial amount of video cord cutting will happen.
'We've been looking at this issue for the better part of a year, and our perspective has pretty much done a 180 to a belief now that pay-TV 'cord cutting' will happen,' he says."
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Infonetics Research - Telecom outsourcing thriving; Ericsson, NSN, ALU, Huawei: soon running 3/4 of world’s networks?
By the end of 2010, telecom service providers worldwide will have outsourced about $53.5 billion worth of networking tasks to equipment vendors, eight percent more than they outsourced in 2009, according to Stéphane Téral, Infonetics Research
principal analyst.
The trend is more prevalent among mobile networks than fixed networks. In 2008 revenue from mobile and fixed network outsourcing was roughly the same; by 2014, mobile network outsourcing will grow to account for 61 percent of all network outsourcing, says Téral.
The major growth areas for telecom network outsourcing include network maintenance, planning, design, and operations
Much of the growth in outsourced services is coming from EMEA (Europe, Middle East, Africa) and Asia Pacific, and to a lesser extent, Central and Latin America, with the Oi-Nokia Siemens deal in Brazil and activity increasing in Mexico.
principal analyst.
The trend is more prevalent among mobile networks than fixed networks. In 2008 revenue from mobile and fixed network outsourcing was roughly the same; by 2014, mobile network outsourcing will grow to account for 61 percent of all network outsourcing, says Téral.
The major growth areas for telecom network outsourcing include network maintenance, planning, design, and operations
Much of the growth in outsourced services is coming from EMEA (Europe, Middle East, Africa) and Asia Pacific, and to a lesser extent, Central and Latin America, with the Oi-Nokia Siemens deal in Brazil and activity increasing in Mexico.
One might argue that mobile network outsourcing is an easier proposition because the labor intensity of a mobile access network is vastly less complicated than a fixed network, and corresponding ability to create service quality differentiation are correspondingly reduced in a mobile setting. Some video entertainment providers have in the past outsourced installation chores to contractors, with mixed results. For brand management, many firms now believe they have to control their own installation and repair staffs, rolling stock and so forth.
Mobile operators do not have the premises wiring, premises equipment and cable, wire and active element issues that fixed network providers do, making outsourcing of access network duties an easier proposition.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Firefox overtakes Internet Explorer in Europe
'This is the first time that IE has been dethroned from the number one spot in a major territory,' commented Aodhan Cullen, CEO, StatCounter. "This appears to be happening because Google's Chrome is stealing share from Internet Explorer while Firefox is mainly maintaining its existing share," said Cullen.
Google Chrome has grown to 14.6 percent compared to five percent in December 2009.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Lots of Ways to Over-Simplify Mobile Business
Over-simplistic analysis of the mobile service provider, or fixed-line business, is easy to understand. It's a complicated business in many ways, and complicated stories are hard to tell. "Rich service providers gouging customers" is a vastly-easier storyline than many others.
But those industries could not, or would not, radically change. The strategic challenges are huge. If somebody told you, whatever your current occupation or business, that you would lose half to 80 percent of your revenue in perhaps 10 years, and that every step of the way between here and there would feature more pressure, I doubt you'd appreciate being saddled with obstacles that reduced your current income faster, and limited your ability to reposition, as you fought to change.
As some of you know, I'd argue that the U.S. communications business faces very-serious challenges. In fact, fixed line providers face issues more analogous to the U.S. steel, auto and textile industries than anything else. That is to say, the traditional business of selling voice services for money is a sunset business. That is not to say voice communications is any less important for most people, most of the time, and for all people at least some of the time.
It is to say that a highly capital intensive business that is losing its historic business model has radical transformation before it, or an unpleasant demise. I think everybody would agree that broadband and mobile communications are an important foundation for economic success, and that such success cannot be taken for granted. For such reasons, virtually all observers might argue it is a wise policy to encourage investment in the business, as well as investment to create a higher-quality broadband access infrastructure.
Chetan Sharma, an independent analyst, estimates that U.S. carriers will generate about $165 billion in revenues in 2010. Of the total, nearly $55 billion will come from sales of data services alone. That factoid, taken in isolation, can be used to argue that service providers are making way more money from their capital investments than might be justified, or at least that such investments prove the business is sound, since carriers invest about $30 billion to $50 billion annually.
Chetan Sharma, an independent analyst, estimates that U.S. carriers will generate about $165 billion in revenues in 2010. Of the total, nearly $55 billion will come from sales of data services alone. That factoid, taken in isolation, can be used to argue that service providers are making way more money from their capital investments than might be justified, or at least that such investments prove the business is sound, since carriers invest about $30 billion to $50 billion annually.
I wouldn't characterize matters that way. It now is tough to raise significant capital for infrastructure, as investors aren't generally dumb. They can see that the business model is challenged, and that new revenue sources beyond voice and even broadband access must be created. That is no less true of the mobile side of the business than of the fixed-line side of the business.
Mission-critical industries that are declining, are not places to create new burdens, one might argue. You might wonder why debates about communications, and what has to be done, so rarely are positioned that way. I'd argue there are sound reasons.
No executive of a public company is going to say anything contrary to the notion that "we face challenges, but have plans in place to meet those challenges." Critics of the industry will always position carriers and service providers as rich, monopolistic, uncaring providers who need to be reined in. Some will argue, in private, that they need to be vanquished, one way or the other.
That isn't to argue that the major providers are not powerful generators of revenue. It isn't so clear they are powerful generators of profit, but for the moment just focus on the revenue. If you believe an ultimate loss of perhaps 50 to 80 percent of the current revenue are inevitable, the strategic picture is quite different. The U.S. steel industry, or auto industry, once appears that way as well.
That isn't to argue that the major providers are not powerful generators of revenue. It isn't so clear they are powerful generators of profit, but for the moment just focus on the revenue. If you believe an ultimate loss of perhaps 50 to 80 percent of the current revenue are inevitable, the strategic picture is quite different. The U.S. steel industry, or auto industry, once appears that way as well.
But those industries could not, or would not, radically change. The strategic challenges are huge. If somebody told you, whatever your current occupation or business, that you would lose half to 80 percent of your revenue in perhaps 10 years, and that every step of the way between here and there would feature more pressure, I doubt you'd appreciate being saddled with obstacles that reduced your current income faster, and limited your ability to reposition, as you fought to change.
The argument that advanced communications will be expensive and difficult to finance, and that obstacles should not be placed in the way, is just a practical response to market conditions that seem almost self evident. Sure, there will always be legitimate issues about abuse of power. But nobody worries about abuse of power in the textile, auto or steel industries, because their "power" evaporated with their business fortunes.
Advanced communications is too important to let wither, and there are clear obstacles to the investment we need to be making. Ripping the profit out of the business is a good way to block the advances we need.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Is Usage-Based Billing A Big Deal?
Bell Canada's request to bill customers, both retail and wholesale, based on how much end users or wholesale partners consume each month, in gigabytes, predictably causes outrage in some quarters, but should not, in actuality, affect the typical consumer at all.
The typical consumer doesn't actually consume all that much data on a monthly basis. Comcast, for some time, for example, has had a monthly 'cap' of 250 gigabytes per household. But the typical household really consumers about two gigabytes to four gigabytes a month.
Primus, a Bell Canada wholesale customer, apparently is notifying its customers that existing high-speed access customers will soon have 25 GBytes of monthly usage included with their service. Additional usage up to 300 GBytes will be charged at $2 per additional GByte, up to a maximum of $60 a month.
Usage in excess of 300 GBytes per month will be charged an additional $1.10 per GByte. Customers who are worried about the 25 Gbyte cap can buy an 'additional usage plan' costing $5 a month for an additional 40 GBytes, for starters.
The typical consumer doesn't actually consume all that much data on a monthly basis. Comcast, for some time, for example, has had a monthly 'cap' of 250 gigabytes per household. But the typical household really consumers about two gigabytes to four gigabytes a month.
Primus, a Bell Canada wholesale customer, apparently is notifying its customers that existing high-speed access customers will soon have 25 GBytes of monthly usage included with their service. Additional usage up to 300 GBytes will be charged at $2 per additional GByte, up to a maximum of $60 a month.
Usage in excess of 300 GBytes per month will be charged an additional $1.10 per GByte. Customers who are worried about the 25 Gbyte cap can buy an 'additional usage plan' costing $5 a month for an additional 40 GBytes, for starters.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Will Mobile Payments Enable Mobile Marketing?
Deborah Baxley, Principal, Global financial services, Capgemini, would not be the first or only analyst who suspects mobile payments capabilities will be intimately connected to a number of mobile marketing approaches, ranging from barcodes, numbered coupons, text messages, sticker-based loyalty programs, to use of near field communications to turn the mobile phone into a digital wallet.
Early results show much higher response rates than traditional marketing, such as paper coupons. Secure chip technology is expected to be the ultimate solution, optimizing usability, convenience, security and consumer opt-in.
Early results show much higher response rates than traditional marketing, such as paper coupons. Secure chip technology is expected to be the ultimate solution, optimizing usability, convenience, security and consumer opt-in.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Google to Enter Mobile Payments Business?
Many observers think the ultimate value of near field communications mobile payments or mobile wallet services will lie in a range of value the systems provide, beyond the actual retail payments feature.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Cash for Content Online - Pew Research Center
Music, software, and apps are the most popular content that internet users have paid to access or download, although the range of paid online content is quite varied and widespread.
In a survey of 755 internet users between Oct. 28 and Nov. 1 2010, respondents were asked about 15 different kinds of online material that could be purchased or accessed after a payment. The online content assessed in this survey includes only 'intangible' digital products such as software, articles and music that need not have a physical form.
In a survey of 755 internet users between Oct. 28 and Nov. 1 2010, respondents were asked about 15 different kinds of online material that could be purchased or accessed after a payment. The online content assessed in this survey includes only 'intangible' digital products such as software, articles and music that need not have a physical form.
Some 33 percent of respondents say they have paid for digital music online, the same percentage reporting they have paid for software. About 21 percent have paid for apps for their cell phones or tablet computers. Some 19 percent report they have paid for digital games.
About 18 percent have paid for digital newspaper, magazine or journal articles or reports, while 16 percent have paid for videos, movies or TV shows.
Some 15% have paid for ringtones, while 11 percent have paid for members-only premium content from a website that has other free material on it. About 10 percent have paid for e-books.
Spending between $1 to $20 a month might not seem like a big deal, but it is a significant amount of spending, especially recurring spending, for any popular consumer service.
Spending between $1 to $20 a month might not seem like a big deal, but it is a significant amount of spending, especially recurring spending, for any popular consumer service.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Insufficient Battery Life is Just a Fact of Life
Kaufman Bros. equity analyst Shaw Wu has been claiming that the new Research in Motion PlayBook has battery life issues. Wu says he would be “very surprised if PlayBook matches anywhere near the battery life of the iPad at 10 hours unless it uses a larger battery.”
Some of the issues are application related, as has been the case for other categories of devices, such as smartphones.
The PlayBook supports Flash, and Flash is a resource hog, says Wu. “As seen in recent tests for the new MacBook Air, use of Flash can cut battery life in half," he says.
RIM’s implementation of power management is not as well-integrated as that of its rivals–particularly Apple, whose homegrown A4 system-on-chip enables the company to deliver superior battery life, he argues.
Some of the issues are application related, as has been the case for other categories of devices, such as smartphones.
The PlayBook supports Flash, and Flash is a resource hog, says Wu. “As seen in recent tests for the new MacBook Air, use of Flash can cut battery life in half," he says.
QNX, the operating system on which PlayBook is to run, wasn’t designed for it full mobile use. It was intended for devices drawing power from a wall socket or car battery.
RIM’s implementation of power management is not as well-integrated as that of its rivals–particularly Apple, whose homegrown A4 system-on-chip enables the company to deliver superior battery life, he argues.
To be sure, longish battery life is always a plus for any mobile device. On the other hand, most smartphone users will tell you that if they actually use their smartphones for web-based apps, battery life goes way down. Sure, you can restrict your usage to voice and text only, but then what's the point of having a smartphone?
There might be issues that RIM has to work on. Still, even under the best of conditions, a smartphone is going to run through its charge quickly if much web activity occurs. Tablets have a larger form factor, so can handle a bigger battery. But less than optimal battery life just comes with the territory.
There might be issues that RIM has to work on. Still, even under the best of conditions, a smartphone is going to run through its charge quickly if much web activity occurs. Tablets have a larger form factor, so can handle a bigger battery. But less than optimal battery life just comes with the territory.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
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