The Mobile World

321 Pages·2005·3.9 MB·English

by  Steinbock D.

❙ i
London and Sterling, VA
ii ❙
Publisher’s note
Every possible effort has been made to ensure that the information contained in this
book is accurate at the time of going to press, and the publishers and authors cannot
accept responsibility for any errors or omissions, however caused. No responsibility for
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the material in this publication can be accepted by the editor, the publisher or any of the
authors.
First published in Great Britain and the United States in 2005 by Kogan Page Limited.
Reprinted 2005
Apart from any fair dealing for the purposes of research or private study, or criticism or
review, as permitted under the Copyright, Designs and Patents Act 1988, this publi-
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undermentioned addresses:
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www.kogan-page.co.uk
© Dan Steinbock, 2005
ISBN 0 7494 4296 4
British Library Cataloguing-in-Publication Data
ACIPrecord for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Steinbock, Dan.
The mobile revolution : the making of mobile services worldwide / Dan
Steinbock.
p. cm.
Includes bibliographical references and index.
ISBN 0-7494-4296-4
1. Wireless communication systems. 2. Mobile communication systems. 3.
Telecommunication. 4. Internet. I. Title.
HE9713.S728 2005
384.3’3–dc22
2005004338
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in Great Britain by Thanet Press Ltd, Margate
❙ iii
Contents
List of figures v
List of tables vii
List of boxes ix
Acknowledgements xi
Acronyms xv
Introduction 1
From technology innovation… 1; …To marketing
innovation 2; Mobile services worldwide 4; The structure of
the book 4
Part I Market transformation
1 Globalization 11
Globalization of markets 11; Worldwide market
evolution 19; Regional market evolution 20; Great new
growth markets 26; Toward the next ‘next big’ market 31
2 Innovation 35
Waves of innovation 35; Market innovation 40; Mobile
service innovation 50; Unique characteristics of mobile
services 53; The services marketing mix 56; Atotal service
portfolio 57; New service development 58
3 Service pioneers 63
Service innovation 63; The birth of i-mode 66; Service
portfolio 71; The progenitors 75; Exploding content
market 81
iv ❙ Contents
Part II Mobile consumer services
4 Service innovation 87
Service categories 87; New services 90; Content
evolution 104; Mobile portals 107
5 Content services 111
NTT DoCoMo’s pioneering 111; Evolution of mobile
content 116; Mobile music: ringtones everywhere 125
6 Mobile media and entertainment 137
The emerging value chain 137; Pioneering efforts 144
7 ‘Device formerly known as cellphone’ 163
From brick to self-expression 163; Design evolution 165;
Variations of segmentation 173; Toward wearables 190
Part III Mobile business services
8 Mobile marketing and consumer behaviour 195
The mobile marketing business 195; Mobile marketing
service innovation 200; From campaigns to diffusion 206
9 Mobile business services 223
Evolution of mobile business services 223; Business service
innovation 231; Enterprise solutions providers 240;
Corporate markets 243
10 Strategy and mobility 255
From market signals to economic value 255; Mobility and
competitive advantage 257; Mobility and competitive
strategy 265; Mobility, business models and strategy 270
Notes 275
References 287
Index 297
❙ v
Figures
0.1 Innovation waves defined by technologies 2
0.2 Innovation waves defined by markets 3
1.1 Regional evolution: most populous country markets (1984–2003) 12
1.2 Industry globalization: industry value system 13
1.3 Triple convergence: US information technology, European mobile
communications, Asian consumer electronics 14
1.4 China’s mobile marketplace: Nokia’s presence (autumn 2003) 18
2.1 From Marconi to 4G: technology and market evolution 36
2.2 Expansion of wireless bandwidth 38
2.3 Evolution of mobile phone categories and segments 47
2.4 Product, process and service innovation in the mobile business 52
2.5 Making the intangible tangible 54
2.6 Total service portfolio 57
2.7 New service development 59
3.1 Evolution of content services 64
3.2 The origins of i-mode 65
3.3 Origins of i-mode: the collaboration concept 68
4.1 Service categories 90
4.2 Messaging migration: from SMS to multimedia 94
4.3 New services and usage scenarios: lifeblogging 96
4.4 Mobile trading, mobile banking, mobile transaction payments 103
5.1 The mobile multimedia frontier 112
5.2 NTT DoCoMo advanced service innovation from 1999 to 2010:
evolution of FOMA 114
5.3 From digital cameras to scanners to mobile wallets 115
5.4 Evolutionary phases of mobile video services 117
5.5 From mobile video to mobile television 121
vi ❙ Figures
5.6 From mobile video to mobile phone television 124
5.7 The changing context of music 132
5.8 Complementary objectives 134
6.1 Digital rights management (DRM) 139
6.2 N-Gage 153
7.1 Nokia’s design categories: evolutionary branching 166
7.2 From colour to fashion to luxury to imaging 170
7.3 Mobile networks and handsets 174
7.4 Two logics of segmentation 175
7.5 Moto-morphing things 177
7.6 Nokia’s product category matrix 182
7.7 Introduction of the Nokia 7650 (March 2004) 186
7.8 FingerWhisper 192
8.1 The role of mobile marketing service providers 199
8.2 Building deep relationships: mobile matrix 203
8.3 Innovation and diffusion: innovation adopter categorization 217
9.1 The enterprise solutions addressable market (2004) 242
9.2 FT Global 500: Market capitalization (US$ billion) and
number of companies 245
9.3 Communication and IT needs vary by industry characteristics 247
9.4 Two axes: service and mobility needs 251
10.1 Valuation peaks, 1871–2000 258
10.2 Mobility and the value chain 260
10.3 How mobility influences industry forces 266
❙ vii
Tables
1.1 The world’s leading mobile operators (1983–2002) 15
1.2 The next ‘next big markets’ 33
3.1 i-mode service variety 72
3.2 NTT DoCoMo market research: subscriber behaviour 74
4.1 Initial and evolving i-mode categories 104
6.1 Media and entertainment services: payment, revenue sources,
time-use 138
6.2 CNN mobile services: timeline 145
8.1 Mobile marketing services 204
8.2 Innovation and diffusion: mapping early-adopter opinion
leaders 219
9.1 Examples of notifications and the mobile workforce 237
9.2 Communication and IT needs vary by enterprise size 245
9.3 Employees need a multitude of services 251
9.4 Two axes:service and mobility needs 253
viii ❙
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❙ ix
Boxes
1.1 ‘It’s a different market now’ 17
1.2 The great reversal: scanning markets worldwide 22
1.3 The SK Telecom success story: translating technology
pioneership to service innovation 24
1.4 Pioneering mobile markets in China 27
2.1 Disruptive potential of broadband wireless 39
2.2 The first call 43
2.3 Differentiating in a crowded market 48
2.4 Toward the future 60
3.1 Disney and DoCoMo’s pioneership 70
3.2 Going for global multimedia 82
4.1 Mobile communities – Asian style 93
4.2 Wall Street in the palm of your hand 99
4.3 Mobile sports and games 101
4.4 New York Times: ‘It must be 10x better’ 105
5.1 Mobile streaming 119
5.2 Disruption through mobile broadcasting 123
5.3 Mobile music: the Nokia–EMI deal 127
5.4 Licensing the ringtone revolution in the United States 129
5.5 Integrating mobile music 135
6.1 Mobile media licensing 141
6.2 May the best content win! 147
6.3 Developing unique positioning 154
6.4 Where are your customers? 156
6.5 Quality sells 160
7.1 From functionality to experience 175
7.2 Smart phones: the Microsoft vision 179