Mobile and Social Big in U.K., What Does it Mean?

New data from the U.K.'s Office of National Statistics illustrates widespread mobile usage, broadband mobile access, use of social networks and shopping activity. None of that is surprising. The more interesting question is what it ultimately will mean for new applications and businesses that assume the existence of such infrastructure, much as virtually all businesses assume the existence of electricity, running water, roads, postal service and air travel.

Among other things, one might presume that ubiquitous use of mobile devices, social networks, mobile broadband and comfort with shopping from a mobile will be key factors for emerging mobile payments and wallet ventures, not to mention other forms of mobile commerce, advertising and promotion.

Some 91 percent of young adults connect to social networking sites, and nearly half of all Web users accessing the Internet via their mobile phone. U.K. mobile social networking, Web use

About 45 percent of Internet users accessed the Internet via a mobile phone in 2011. You can see the full report here

In 2011, 32 million people (66 per cent of all adults) purchased goods or services over the Internet as well, an increase from 62 per cent in 2010.

Clothes and sporting goods were the most popular online purchase in 2011, with 46 per cent of Internet
users buying these items.

Those aged 65 and over were the only age group not to report clothes and sporting goods as the most
popular purchase. Instead, 29 per cent of Internet users in this age group favoured the online
purchase of "other travel arrangements" which includes flights, car rental and other transport tickets.

Access to the Web while on the move is a growing trend, with 4.9 million people connecting from wireless hotspots in 2011, double the numbers from 2010.

Social networking, likewise, is becoming more popular, with 57% of adult Internet users using online social networks in 2011, up from 43% in 2010.

Young consumers are leading the trend, with 71% of 16-24 year olds using their phone to access the Web, and an overwhelming 91% now using social networking sites.

Mobile and social to emerge as power channels for banking

Can HTML5 replace an iPad app? Financial Times to find out — Apple News, Tips and Reviews

It is one thing to debate the merits of HTML5 as an alternative to creating and using mobile apps. It is quite another to note that, within the Apple iOS ecosystem, there is an "application tax" of 30 percent of gross revenues for any entity selling content within the Apple App Store.

The Financial Times, which in June introduced a tablet and smartphone-optimized version of its digital edition, has removed its apps from the iOS App Store instead of complying with Apple’s requirements for software that offer in-app access to subscription content.

The Financial Times instead will work outside the App Store using HTML5 apps, keeping the 30 percent of gross revenue it otherwise would have had to pay Apple.

Apple now requires that newspaper and periodical apps offering access to subscription content either offer subscriptions through in-app purchase, which entitles Apple to a 30 percent cut of all revenue.

FT‘s subscriptions were handled outside of the store, and rather than just remove the sign-up link like The Wall Street Journal did, FT apparently prefers removing its native software altogether in the hopes that readers will make the transition to the web-based app.

Can HTML5 replace an iPad app? Financial Times to find out

Google Gets into "Offers" Business

Whether you like to call the service a "daily deals" business, social shopping, mobile coupons or something else, Google now has launched its social shopping service.

Some of us think it is important not so much because consumers need yet one more channel to receive coupons, but because Google Wallet,among other efforts, ultimately will win or lose based on the ability to provide an engaging, easy to use and valuable way of supplying new value for consumers when shopping.

Google launches "offers"

"Consumer Welfare" Will be Front and Center in DoJ Lawsuit

There are many possible "losers" and potential "winners" from the U.S. Department of Justice lawsuit challenging the proposed AT&T purchase of T-Mobile USA. But Jerry Ellig of the Technology Liberation Front thinks one actual upside, from a consumer welfare angle, is the centrality of "consumer welfare" as the central issue.

"For once, the high-profile action everyone pays attention to will occur in an antitrust forum where the decision criterion is the effects of the merger on consumer welfare, period," says Ellis. "Regardless of what one thinks about the merger, it’s nice to see that we’ll finally have a knock-down, drag-out fight based on whether a big telecommunications merger harms consumers and competition."

"That’s the antitrust standard the Department of Justice has to satisfy in order to prevent the merger," and also is a central concern of economic thinking that drives thinking about antitrust regulation.

One good thing about DoJ challenge of AT&T purchase of T-Mobile USA

25% of Small Businesses Have "Virtualized" Servers

A new study by CDW found that 25 percent of small businesses have virtualized at least some of their servers, attracted by efficiency, cost savings and flexibility to meet changing business demands, and that the average percentage of servers virtualized at those businesses grew steadily from 28 percent to 33 percent between July 1, 2010, and June 30, 2011.  

Even among small businesses that have not yet implemented server virtualization, 73 percent report they are investigating or planning to deploy the technology, with investments averaging 17 percent of their IT budgets over the next two years, CDW says.

On average, small businesses using virtualization are saving 18 percent of their IT budget or $19,400 per year, the report found.

CDW suggests that server virtualization can make sense when there is a need to replace older servers, or when organizations already are running five to seven dedicated servers. Ownership of servers that are lightly used is another instance where virtualization might make sense.

Physical space issues, rising support, energy or real estate costs also can be drivers. Businesses expecting significant growth, or with high needs for application availability and protection from disruption likewise are good candidates for a virtualization approach.

Sponsored by CDW, the survey of 300 small business professionals was conducted by Spiceworks, an IT-focused social network.

FCC Chairman Says Agency Also Has Concerns

"By filing suit today, the Department of Justice has concluded that AT&T's acquisition of T-Mobile would substantially
lessen competition in violation of the antitrust laws," says Federal Communications Commission Chairman Julius Genachowski.

"Competition is an essential component of the FCC's statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on
competition," Genachowski said.

Genachowski statement

Has U.S. Mobile Market Finally Reached Limits of Market Concentration?

In any mature market, there comes a point where the biggest players simply are not allowed to get any bigger. The U.S. cable TV industry already ran into that limit, as there recently have been formal market share caps that limit the total number of subscibers (as a percentage of total) that any single contestant can serve. Though those caps were overturned in court, it isn't clear that Comcast or other cable operators really want to test the limits directly. 30% subscriber cap overturned

That might now be the case for the U.S. mobile industry. That would not mean smaller contestants are barred from growth through acquisition, but the DoJ opposition could signal that the crucial tipping point has been reached, and that both AT&T and Verizon Wireless now will face limits on the percentage of U.S wireless customers each can serve.

Here, Department of Justice Acting Assistant Attorney General Sharis A. Pozen talks about rationale for DoJ antitrust finding:

The Antitrust Division conducted an exhaustive investigation. We conducted dozens of interviews of customers and competitors, and we reviewed more than 1 million AT&T and T-Mobile documents.   

The conclusion we reached was clear. Any way you look at this transaction, it is anti-competitive. Our action today seeks to ensure that our nation enjoys the competitive wireless industry it deserves.

T-Mobile has been an important source of competition among the national carriers through innovation and quality enhancements.   For example, T-Mobile rolled-out the first nationwide high-speed data network using advanced HSPA+ technology and the first handset using the Android operating system.   It has also been an important source of price competition in the industry.   Unless this merger is blocked, competition and innovation in the mobile wireless market, in the form of low prices and innovative wireless handsets, operating systems, and calling plans, will be diminished—and consumers will suffer.  

T-Mobile competes with the other three national providers to attract individual consumers, businesses, and government customers for mobile wireless telecommunications services. They compete on price, plan structure, network coverage, quality, speed, devices, and operating systems.   A combination of AT&T and T-Mobile would eliminate this price competition and innovation.   It would reduce the number of nationwide competitors in the marketplace from four to three.   Eliminating this aggressive competitor, which offers low pricing and innovative products, would hurt consumers, businesses, and government customers that rely on a competitive marketplace to provide them with the best products at the best possible price.

DoJ outlines rationale