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The MMS Challange for Operators
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Top level
Industry Information
Business Trends
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Mobile operators are almost exclusively selling MMS-capable devices with color screens, many with built-in cameras. By year-end, 23% of all mobile phones in Europe will be MMS-capable and more than 55 million are expected to have built-in cameras. These statistics show a strong and growing base of MMS-capable phones.
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The challenge to the mobile industry is to deploy exciting MMS services that will captivate the market and generate data revenue for mobile operators and other industry players. If the industry doesn't captivate the consumer with exciting MMS applications, MMS' potential will not be realized.
The industry cannot afford a repeat of what happened with WAP.
The good news is that several MMS services are showing early success.
The indications are so good that many companies outside the mobile industry are tapping into the potential of MMS services. Internet portals, publishers, TV broadcasters and other media and consumer-oriented companies are beginning to use MMS as a way to increase exposure and generate additional revenues.
For example, Warner Music offers MMS download services through advertisements on its web site and in booklets that are included with music CDs. Several TV broadcasters, magazine publishers and providers of adult content are also offering MMS download services, with impressive early results.
Of course, mobile operators want to demonstrate their leadership in MMS services to keep their subscribers happy, to increase their data revenue and to be more competitive with nonmobile-industry players. Especially at this stage in the development of the MMS market, it is in the operator's best interest to carefully nurture the MMS market so it will grow and prosper, providing differentiation and continued revenue growth.
A good example of a successful MMS service is the group of channel services offered by T-Mobile Germany. T-Mobile has a platform with a huge number of MMS channels: 109 picture news and 28 video news. The latest innovation is that T-Mobile users can subscribe to video channels and receive every goal of their favorite soccer team in the German Bundesliga.
Another example of a successful MMS service from an operator is the MMS-to-Postcard service, which has been launched by German mobile operators E-Plus and debitel. The service enables users to take photos with their camera phone and send them as printed postcards, delivered to the recipient via regular postal services.
A third example is MMS TV Chat, in which the user takes a photo with his camera phone and sends it with chat text as an MMS to a special short number. After approval by the TV-station editor, the MMS will be "published" on the TV show. The service demonstrates how MMS integration can be used to offer interactive-TV services to the mass audience.
Such examples provide clues to the key attributes for likely success of MMS services: a) consumer market access through consumer-based industries; b) everyday themes, such as soccer; and c) the possibility of emotionally evocative content, such as sending photos as postcards.
A recent MMS study conducted by ISI, a German research institute and marketing consulting firm, has identified other key attributes for the likely success of MMS applications. The primary finding was that the simplicity of the user interface was critical to the repeat use of an MMS service.
ISI found that for many applications, the simplest user interface for MMS is SMS.
Respondents also said that a large variety of content and the inclusion of sound are extremely attractive, with more than four-fifths preferring sound with their MMS. Finally, the ISI study showed that "fun," especially elements that surprised the user, is an attribute that 91% of the respondents also regard as attractive.
A successful marketing formula to maximize revenue for the operator comprises a combination of sampling campaigns and direct-marketing tools that are directly integrated into the visual messaging platform. Combining proven marketing tools with MMS visual messaging services that have all the key attributes for likely success is the best way for the mobile player to be successful with MMS.
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