For the mobile commerce market to succeed in winning over consumers from the wired Internet and bricks-and-mortar space, it will have to be flexible in meeting consumer expectations, according to a recent report by the Aberdeen Group.
The report, “Mobile Electronic Commerce: The New Economy on the Move,” noted that to tap that market, expected to generate revenues in excess of $1 billion by 2004, consumer demands for how they access information will have to be met.
Kelly Quinn, senior analyst at Aberdeen Group and author of the report, said to meet those requirements, wireless commerce providers must provide distinct services that only untethered access can provide, including content that is localized, personalized and integrated.
“We have seen in the past three years adoption of wireless voice services by consumers to the point where they have become an integral part of everyday life, and a good foundation for the wireless data market,” said Quinn.
Quinn said the transition from voice services to data service must continue, singling out both AT&T Wireless Services Inc. and Sprint PCS for their integration of data services into their voice offerings with aggressive pricing models. Quinn also noted those data service models are helping wireless carriers retain their subscriber base.
“Integrated voice and data solutions are not only allowing networks to bring in additional subscribers, but keep those they already have,” said Quinn.
The report applauded banking and financial institutions for providing early wireless applications that have been the main drivers for wireless commerce adoption in the United States. While the promise of purchasing goods over the wireless Internet still waits to be met, wireless banking applications are allowing consumers to access their accounts or make stock trades from the palm of their hands.
Consumers also will demand that the appliance market continue to develop less expensive Internet-ready wireless devices, that are not only smaller, but also include more features. These appliance makers will also have to find ways of including Web capabilities in devices not normally wirelessly enabled. According to the report, this will not only help drive the market, but will shorten the replacement cycle for wireless devices.
Quinn noted that while third-generation services will simplify the ability for consumers to access mobile commerce applications, it does not expect the competition between CDMA, TDMA and GSM technologies to subside in the U.S. market for some time.
“On solutions, we advise application developers to be network and device agnostic,” Quinn said. “Competition will remain strong in the U.S. market when 3G comes in, and we expect the same intense competition globally as well.”
