Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Neeka who wrote (27050)	9/23/2002 7:48:25 PM
From: Neeka	Read Replies (1) \| Respond to of 197225

Key to 3G Success: Content By Jay Lyman Wireless NewsFactor September 23, 2002 A seesaw battle between subscription-based and advertising-supported content is expected as the next generation of wireless rolls out, but Datacomm president Ira Brodsky said micropayments be the primary model for delivering content in the 3G world. Content will be critical to the rollout of third-generation (3G) wireless services. Operators that provide the right news and entertainment will lead the way, while those that do not will fall behind. That is the blunt assessment of Datacomm Research president Ira Brodsky, who told Wireless NewsFactor that the right partnerships and business models will allow carriers to lure subscribers with prepackaged games, ring tones and screen savers. Providers that aim to sell more expensive content offerings are likely to fail, Brodsky said. "3G is starting to deliver on its promises, but because of the economic slump, it is not getting the attention it deserves," Brodsky noted. "I think users will be pleasantly surprised by new capabilities over the next year. New subscriptions may slow, but users upgrading their phones and service could comprise a robust business for operators that move aggressively." Long Live the King In a recent report, Datacomm said, 3G wireless operators that fail to deliver the news, entertainment and educational content users demand will risk losing the all-important business of high-margin subscribers. "Things like technology, coverage and so forth are important to internal operations, but operators should emphasize applications and content," Brodsky said. He suggested that a gradual approach –- using mobile games, contests, ring tones and screen savers to attract users –- is most likely to succeed, because such offerings are easy to download yet still enhance the mobile experience. "I think 3G will come in phases," he said. "The first phase enables downloadable ring tones, screen savers and, with a bit more effort, movie trailers and music samples." Mainly Micropayments While a seesaw battle between subscription-based and advertising-supported content on wireless devices is expected, Brodsky said micropayments -– already in use by operators to bill incrementally for ring tones and the like –- will be the primary model for delivering content in the 3G world. "I think NTT DoCoMo's i-mode business model is a good starting point: Sell tiny applications and content at low prices so users can slowly become acclimated and spend only as much as they want," Brodsky said. "I think Verizon has an expensive, all-you-can-eat plan which may be fine for enterprise users, but is not the right model for drawing in their 30 million subscribers." Consumers Lead the Way The Datacomm report indicated that although enterprises were originally thought to be the first market for premium 3G services, consumers -- or business travelers acting as consumers -- could lead the way. Brodsky, who predicted GPRS (general packet radio service) operators will be left behind as CDMA2000 (code division multiple access) gains speed, said travelers will be willing to pay to see news conferences, sports highlights and other content. "Later, I think 3G could enable live, on-site reports for very specific audiences -- such as a 3G handset with digital camcorder that lets anyone report live at the scene," he said. The Datacomm report refuted the idea that young males are the primary target market for 3G, indicating that mobile content also holds appeal for women and non-youth markets. According to Brodsky, young men want big-screen video, but the overall mobile audience wants more text and interaction. Foiling Free File-Sharing Despite its popularity among Internet users, Brodsky said that free online file-sharing is not likely to take root on 3G mobile devices. "Most wireless operators don't want this to be as open as the Internet, because then anyone can come along and offer the same products or services for free," he said. "So most operators are offering wireless Internet in a controlled setting." Brodsky said Qualcomm's (Nasdaq: QCOM) BREW (binary runtime environment for wireless), for example, is a development environment that defines a complete business model entailing application certification, revenue sharing and security. "Most operators won't let subscribers do whatever they want," he said. "They will try to guide them to specific offerings." wirelessnewsfactor.com