Thursday, February 9, 2012

New Mobile Devices are Changing Behavior


Wireless and untethered devices are starting to change the ways people interact with, and consume, all sorts of media and content.

In 2011, the majority of all mobile phone owners consumed mobile media on their smart phones and tablet devices, marking an important milestone in the evolution of mobile from primarily a communication device to a content consumption tool. At the end of 2011, more than eight percent of all digital traffic was consumed beyond the “classic web” across devices such as smart phones and tablets.  Content consumption is the big change

To put the rapid uptake of tablets in perspective, it took seven years to reach nearly 40 million smart phones compared to less than two years to reach nearly 40 million tablets, demonstrating the vast appeal of these devices and consumers’ desire for connection.

It would not be stretching matters to argue that widespread adoption of smart phones and now tablets has significantly changed digital media consumption patterns.

In December 2011, 8.2 percent of all web page views occurred on devices other than PCs, for example, with mobile devices accounting for 5.2 percent of traffic, tablets driving 2.5 percent.

Americans spend more than 33 hours per week watching video across their available screens, according to the latest Nielsen Cross-Platform Report.

The shift to wireless (using the mobile networks) and connected devices (using Wi-Fi) also seems to be accelerating. It is no secret that sales volumes in consumer electronics and computing devices now have shifted strongly to smart phones, tablets and e-readers, and away from PCs.

As but one example, PC shipments in Western Europe totaled 16.3 million units in the fourth quarter of 2011, a 16 per cent decline from the same period of 2010, according to Gartner.

For the full year, PC shipments also declined 16 percent from 2010, dropping for four straight quarters.

"Despite aggressive pricing and special holiday deals for PCs, consumers' attention was caught by other devices, such as smart phones, media tablets and e-readers," said Meike Escherich, principal analyst at Gartner. And those devices are changing the way people behave.

One of Google’s studies of tablet use over a two-week period, which had users recording every occasion that they used their tablet, shows that tablets really are not PCs, any more than smart phones are used in the same way that PCs are used.

Most consumers use their tablets for fun, entertainment and relaxation while they use their desktop computer or laptop for work, Google User Experience Researchers Jenny Gove and John Webb say. About 91 percent of the time that people spend on their tablet devices is for personal rather than work related activities.

And, as it turns out, when a consumer gets a tablet,  they quickly migrate many of their entertainment activities from laptops and smart phones to this new device.

The most frequent tablet activities are checking email, playing games and social networking. The study also found that people are doing more activities in shorter bursts on weekdays (social networking, email) while engaging in longer usage sessions on weekends (watching videos/TV/movies).

Tablets are multi-tasking devices with at least 42 percent of activities occurring while doing another task or engaging with another entertainment medium. Tablets aren't PCs

As it turns out, lots of things people can do on PCs don’t “need” to be done on PCs. Content consumption, email and other communications actually represent most of what many business users really “have to do” on a PC.

Also, tablets are more accurately described as “untethered” devices than “mobile” devices, to the extent that tablets primarily are used at home. Unlike smart phones that go everywhere and laptops that travel between work and home, few consumers take their tablets with them when they leave the house.

That shipments of tablets are expected to grow from 72.7 million units in 2011 to 383.3 million units by 2017, according to NPD, would not surprise many observers.

Growth in emerging markets, expected to account for up to 46 percent of worldwide shipments by 2017, an increase from the 36 percent share in 2011, might be more surprising.

The tablet forecast also illustrates an important change in connected appliance trends. In the past, “PCs” have been one category of appliances, while MP-3 players, phones and digital organizers, game devices, cameras and e-reading devices have been distinctly different categories.

These days, many of those devices have overlapping functions. Taken as a whole, the changes suggest the crucial role “content consumption” now plays as a lead application for most devices. Though PCs, cameras and organizers still largely have “work or business” use cases, virtually all the other devices are oriented around content consumption.

If results of a U.K. consumer poll are any indication, tablet PCs are about to change Web browsing, gaming and reading preferences.

According to survey conducted by Cooper Murphy Webb, Apple’s iPad is the preferred method of reading newspapers and magazines among consumers already owning the device. Tablets change behavior

The poll also found that a plurality of iPad owners prefer the device for reading books and gaming. Perhaps surprisingly, respondents indicated they used their dedicated gaming consoles and iPads about equally when gaming. If that holds up, it could mean trouble for game console suppliers.

And a significant percentage prefer the iPad for Web browsing as well. That finding is less surprising, if one assumes the tablet device is designed to be used as a content consumption device.

Google to Sell Branded Home Entertainment System

Google is developing a home entertainment system that streams music wirelessly throughout the home and would be marketed under the company's own brand, according to the Wall Street Journal. One obvious implication is that Google now will enter the consumer electronics business in a more significant way.

The Google Nexus smart phone has been positioned as a bit of a "demonstration project," to show what Android ideally can provide in a device experience. Google is more centrally involved as a backer of the Android mobile operating system. And, most recently, Google has acquired Motorola Mobility, which has put Google into the mobile handset business.

Many will worry about the potential implications for Google, which now will face at least some potential channel conflict with at least some potential licensees, though not in the mobile handset business.

The effort does put Google into the branded consumer electronics business in a new way. But in a broad sense, the move indicates the arguably growing degree of competition between Google and Apple. Apple has been masterful at using content to drive hardware sales, and future lines of business for both Google and Apple might overlap more centrally as hardware, software and revenue models built on content and transactions using hardware become more important. Apple, Google competition heating up

Global Fixed Broadband Revenue: $191 Billion in 2012

Global fixed broadband revenue expected to generate $191 billion and reaching $217 billion in 2012, according to ABI Research.

If one assumes 2012 global telecom revenue will be $2.1 trillion, then fixed broadband would represent about nine percent of total revenue. 

Google to Launch Cloud Service

Google is rumored to be launching a cloud-storage service that would compete head-to-head with Dropbox, SugarSync and others.

The search giant’s cloud service will be called Drive and it’ll not only be free to consumers up to a certain size limit but it will also be folded into Google Apps for enterprise customers. Google to launch cloud service

Teens Text, Don't Talk (You Knew That)


If it seems like American teens are texting all the time, it’s probably because on average they’re sending or receiving 3,339 texts a month, Nielsen says. 
Using recent data from monthly cell phone bills of more than 60,000 mobile subscribers as well as survey data from over 3,000 teens, The Nielsen Company analyzed mobile usage data among teens in the United States for the second quarter of 2010 (April 2010 – June 2010). 
Texting Usage By Age

Visa Introduces Suite of Mobile Services for U.S. Financial Institutions - MarketWatch

Visa has launched a suite of mobile services that allow financial institutions to offer their account holders mobile banking services, including account history and balances, as well as the ability to transfer funds between accounts and receive near real time transaction alerts on their mobile devices.

Developed with Monitise, the new platform is available as part of Visa's card issuer platform, Visa DPS.

Additional services are currently in development including mobile check deposit, mobile (NFC) payments, mobile offers, and support for V.me by Visa, Visa's digital wallet service. Visa Introduces Suite of Mobile Services

"The services offered by Visa DPS are a one-stop solution for Visa clients who want to serve their customers through the mobile channel without making significant investments in hardware, software or mobile expertise," said John Partridge, President, Visa Inc.

A4A Calls on the U.S. Government to Safeguard GPS, the Backbone of NextGen

If you pay attention to any part of the global telecom business, you know that government and regulatory policies literally create, and can limit or destroy, any particular business plan, in any particular segment of the business. Spectrum allocations provide an excellent example. LightSquared and Dish Network both want permission to create new Long Term Evolution fourth generation mobile networks, but neither effort can proceed without authorization from the Federal Communications Commission.

LightSquared has been battling the objections of the Global Positioning System industry, and now apparently faces formal public opposition from the airline industry.

Airlines for America (AfA), the industry trade organization for the leading U.S. airlines, called for the development of a governmentwide policy to protect the aviation Global Positioning System (GPS) spectrum in order to avoid any future threat of spectrum interference. You can read between the lines: AfA is opposed to granting of the LightSquared request to use its satellite spectrum for terrestrial operations.

“GPS is critically important to the millions of customers who airlines fly every day, and is the heart of a multibillion dollar system to modernize the air navigation system,” said AfA Senior Vice President for Safety, Security and Operations Tom Hendricks. More opposition to LightSquared

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...