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'Cash-rich future' for mobile data services


Mobile phone users will warm to the idea of data services on their handsets - just as they've taken to Web-browsing after a reluctance to embrace WAP.

New opportunities for operators and content suppliers loom thanks to the huge amount of time consumers and businesses are currently spending on their handsets.

Whether sending SMS text messages, or using the phone's clock, calendar or phonebook, telecoms analysts say users have a "deepening relationship" with their mobile phones.

In fact, experts at Informa Telecoms & Media believe user-mobile relations will blossom worldwide, to deliver a market for content and services on mobiles worth $150billion by 2011, compared with $89.3billion in 2006.

Their report says more rigorous applications to improve the Web-surfing experience coupled with aggressive marketing of such services, from the likes of T-Mobile and 3, indicate that almost half of handset owners will be mobile browsing by 2011.

But in its outlook for the next five years, the analyst said SMS messaging would take the lion share of the market, with expectations the 'text' will generate over half of the revenue in 2011.

However this dominant earner for mobile operators is predicted to decline, albeit marginally, as operators push new entertainment services just as high-speed data networks, such as 3G and HSDPA, become more available.

"Advanced mobile content and services have been slow to take off, but this should not be confused with the deepening relationship that we have with our mobile phones," said Daniel Winterbottom, senior analyst at Informa Telecoms & Media.

"Over time, users will warm to other data services as well. The mobile web is a prime example: WAP failed to take off when it was first launched, but five years on, more and more users have become comfortable with accessing news or other information on their mobile phones."

Mobile music is predicted to be a major earner for operators over the next five years, but its market share will fall from sharing space with mobile TV and video services. It remains to be seen if consumers will be excited by these services as operators hope however, Informa said.

Elsewhere, games, gambling, personalisation and adult content are predicted to grow significantly, to $38.12billion by 2011, from $18.84 billion last year.

Although consumers may not be buying as many games, downloads or multimedia messages for their handsets as operators would like, they are following the Internet phenomenon of 2006, by uploading their own content.

Informa said it expects new applications will extend communities even further, with user-generated and communities forecast to be worth $13.17 by 2011.

Report author Daniel Winterbottom reflected: "The arrival of the mobile web on the mobile handset over in 2007 and beyond will see users embracing the same content they take for granted on their PCs.

"Operators need to ensure they are firmly locked into this value chain or risk missing out on what will be an enormous
market by 2011."





Feb 5, 2007

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