Mobile2.0 needs flat rate billing
Published by Rudy De Waele October 7th, 2006 in UncategorizedPeople get ready, the mobile 2.0 train is definately on the rails now…
Mike Rowehl and Vodafone’s Daniel Appelquist (both involved in their local MobileMonday chapters) are organising a Mobile 2.0 event (just before the web 2.0 event) in San Francisco on November 6.
Though I am using heavily (and have been writing on) mobile (web) 2.0- associated apps and mobile podcasting, I haven’t used the term ‘mobile2.0′ a lot since I believe accessing the web from a mobile is part of web2.0 core = platform connected to any device, anytime, anywhere - however the real power of the mobile phone lies in the fact that the mobile has an incredible high penetration rate nearly everywhere - and is growing tremendously in area’s where it hasn’t reach it’s full penetration yet - and yet it’s going to be THE primary device that people will use to connect to web 2.0 services (or whatever we’re going to name it in a couple of years).
Many are probably seeing the potential but few (Ajit, Carlo, Charlie, Kelly, Oliver, Russell, and a few others…) have been writing insightfull ‘food for thought’ on this subject. So, I’m am glad the subject is finally hitting the event floors for real discussion with mobile value chain companies and players.
A great list of speakers will attend the mobile2.0 event, great job and initiative Mike and Dan! Personally, I would add some operators in the mix, that’s the real discussion I’m waiting for… Meanwhile walking the mobile walk - apart from using your 3G data card flat rate for mobile browsing, is still costing pocket loads of money for the enthusiast end-users.
For mobile2.0 to become a mobile user-driven media, and for mobile users to start accessing these web 2.0 services from their cell phones, they’re going to need flat rates from their operator or carrier. Here’s a taste of what it’s like accessing web 2.0 services on a mobile now… too bad my operator makes or breaks the connection (and charges per connection made) every time I…
- Check or send email from my mobile
- Check a (mobile) web page(s)
- Subscribe or update feed(s)
- Download or update a client application
- Upload a picture to Shozu, Flickr, YouTube or other services
- Subscribe, update or download a podcast
- Connect to consult my interactive Visual Radio service
- Trying out new mobile services
please fill-in accordingly if you use more services yourself…
… With the current operator offerings being unserved for mobile2.0 users like me (at least in Europe), I started to bypass the operator network wherever I can, what about you?
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Fantastic to hear you’re going to be at the conference Rudy, I’ve been looking forward to meeting you and getting your take on the Barcelona MoMo scene. I hear it’s going great. We actually have pretty decent flat rate data plans for mobile here in the US, I’ve been on one for the last few years and I can say it absolutely changes the way I use my mobile. I had a per-KB plan before that and I would limit my mobile usage frequently because I saw everything I did through the lens of that cost structure. I COULD check my email, but did I NEED to given that I knew it was going to cost me. And I would almost never use the mobile web before the flat rate billing, which was both a function of the limited number of sites I would want to visit anyway and the associated fee.
So my question is what breaks down that cost model? I was hoping that the intrusion of 802.11 (in the form of UMA) would drive the carriers to actually compete cross-segment rather than strictly with each other. I had also assumed that the presence of 802.11 in the US was what ended up getting us flat rate data when many other places don’t seem to have it yet. Not that I expect the average mobile user to have an 802.11 capable phone, but the availability of the capability I was hoping would at least introduce a little fear. I’m not sure that’s the case however. Is wifi why we have flat rate here in the US? The first really publicized flat rate (and reasonably priced) data plans here seem to have happened with the Sidekick. Was it simply a blunder on the part of T-Mo, and once the door was opened a crack everyone was forced to provide the same option?
Mike,
Thanks for your comment, unfortunately I cannot attend (I’m informing readers, friends and business contacts of course), I think it’s great initiative with a perfect timing
A good question, why US offer flat rates while it has been slower to implement 3G services then European operators/carriers; maybe because of Google’s local Wi-Fi plans and T-Mobile’s market opening in that area? US natural new business opportunity sense towards anything Internet? Web2.0 hype? Probably a combination of all, but there is more I guess…
Wi-Fi capable phones (802.11) are just coming to market here in Europe and they’re expensive so it’s going to take some time before users will discover the potential and benefits of its’ use. Meanwhile operators are also keeping their wallets as closed as possible and as expensive as possible for mobile web surfers to browse off portal. IT costs me a couple of hundreds Euros extra per month, only using the mobile web… Let’s say a couple of high-end phones or nice weekend trips I could afford with this monthly expense
As for Europe’s advantage in mobile technology in general, I feel we’re loosing it due to the stiffness and un-willingness of the operators to move away from their preferred wallet garden. I think indeed new opportunities lie in the cross-segment mix for them and other mobile value chain players but I cannot see a lot of movement just right now, though internal European markets might differ in flat-rate offering to consumers. Luckily Nokia has understood this and is starting to play it’s own game; starting with giving the user the choice to choose what connection they want to use.
For me it’s easy from a user perspective: I use Wi-Fi on my mobile phone where I can access it (and that’s quite a lot here in the city due to public wi-fi hotspots and the FON-project - FYI -> 80 % of my mobile2.0 use, I’m not on the move (!) and any web service that becomes available on my mobile phone is a new opportunity to become one of my new favourite services, most of these new mobile2.0 opportunities are coming from the US which brings an interesting paradox to the discussion between European operators and US-based start-ups. I’m sure the mobile2.0 event will bring some spice to the discussion; I’m looking forward to read/hear all about it.
Hope to see you here during 3GSM!
Rudy
A flat rate data plan does a great deal to remvoe the fiscal issues for mobile web adoption but there are other issues. I’d like there to be some standardization on authentication schemes that can be incorporated into mobile web browsers. That way I can configure my mobile browser to auto log me into one or more mobile web sites. A lot of passwords for web banking systems are 6+ alpha-numeric characters, joe user is going to get frustrated entering that to see a balance. Actually all the other issues really revolve around the mobile browser. Anyone want to start a topic on mobile web browsers 2.0?