Article re-printed with kind permission from GSM Q, October 2000 Issue 18
WAP is everywhere - in shops, on TV, in newspapers, and, notably, among trend-setting teenagers who epitomise SMS culture
and avidly embrace the Internet.
So why is WAP under attack by some sections of the media and analysts? lt's been said many times that customers don't buy
technology - it's what you can do with it that counts. That's where services and applications come in, to deliver benefits
for customers, and revenue for operators. However, really useful WAP-based services have been slow to come through, while
some customers initially had only restricted access to the lnternet. WAP over 9.6 kbits/s can be slow for some applications,
but for others such as e-mail it is adequate. WAP-enabled GSM phones already deliver valuable content to customers on the
move. However, international roaming is not widely available, slowing growth in some segments. This is a case of the pace of
market development exceeding that of standards-making.
WAP plus GPRS is the winning combination. Connection time becomes a thing of the past with "always-on" GPRS packet
capability, and information transfer speeds will rapidly improve - but we need more than enabling technologies. It is also
important for standardisation processes to be followed and to confirm interoperability across the industry. Customers will
want GPRS services when roaming. Initiatives which ensure interoperability between networks and terminal/device types
should be supported.
As for services, those which take account of a user's location should be compelling in the marketplace. Applications could
include a real-time translation service automatically interpreting from the local language in the area where the network is
accessed. E-services could be presented and reconciled in the customer's "home" currency. In short, the full potential of
mobile Internet will be realised when services, applications, and content centre on the user's mobility, location and
situation.
GPRS will be deployed on a wide scale by this time next year. There is no reason why any operator would not want to get new
GPRS-based services onto the market in the next 12 months. With GPRS, a GSM network operator may choose to grow its network
business, expand into the mobile access business, and move into the applications business.
The global reach of GPRS via the world's GSM networks is a powerful incentive for applications developers to deliver
innovation and value, and to show too what can be done with higher speeds to improve interactivity and the total user
experience. GPRS is also the first important stepping stone to 3G mobile multimedia services and the experience is relevant
for 3G.
There is, of course, the question of how to collect revenues from customers. This first means looking at the advantages and
pitfalls of new business models. These include:
| - | | flat rate (but heavy or advanced users will abuse the system) |
| - | | by volume (but the number of bits does not equate to value) |
| - | | by time on line (but this loses significance with continuous connectivity) |
| - | | per access point (separating bills for corporate intranet Access, lnternet access, etc.) |
| - | | by location (allows the mobile operator to add real value) |
| - | | by transaction, or content (for value-added services provided by the operator) |
| - | | for quality of service (but an operator can only control quality of service in its own part of network). |
Reasonable customer expectations need to be set. Customers will not receive a full desktop Internet experience in their
pocket or on the move. Display size limitations, access cost and other factors mean that the mobile Internet experience will
be different, but optimised for the mobile environment. We need to discuss and deal with all these challenges. Put simply,
we need to build the market together.
A final thought: the ARC Group forecasts that there will be 810 million GPRS users by 2005. That figure is more than twice
the installed base of GSM subscribers today, which has built up over a period of twice as long. Are you ready?
Alan Hadden, president GSA
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