The mobile handset has become something of a looking glass in Wonderland. And mPortal Inc. was founded in 2000 to help clients-network operators, mobile virtual network operators, content providers and enterprises-offer consumers and employees a means to step through that looking glass into the world of content, preferably the sort that produces revenue or enhances productivity. It now counts among its clients Verizon Wireless, Disney Mobile, Alltel Corp., Reliance Infocomm, TV Guide, AOL L.L.C. and Xerox Corp. D.P. Venkatesh, CEO and founder of mPortal, often has the wireless world’s ear with his common-sense approach to content-related issues. In this RCR Wireless News interview, he paints a portrait of an industry in motion.
How does mPortal assist carriers in offering revenue-producing services?
The Disney MVNO, for example, has licensed both of our products-the Springboard Smart Client, which is on every Disney handset, as well as the Springboard Content Delivery Manager, which they use to deliver data to their subscribers. The two areas we drive in terms of revenue are content delivery and content discovery. Content delivery, obviously, is accomplished by our content delivery platform. Content discovery takes place through our Smart Client, which is loaded onto the handset.
For Disney, we host the platform and connect it to all of Disney’s content. And we host third-party, non-Disney-based content. All of this is accessed through the mPortal platform by the subscriber. So we’re a one-stop shop for operators.
How does this impact the user experience?
Our Smart Client allows you to access all the data services directly from the home screen on the phone. When you turn on a Disney phone, you don’t have to launch a browser or go through numerous clicks to see a menu. Instead, on the home screen you see an icon that says ‘entertainment,’ that shows you all the content and applications available for download.
So, coming back to the revenue point, what we’re seeing in reality is significantly higher downloads than industry averages. I can’t give specific numbers, but we’re seeing a doubling in downloads compared to the rest of the industry.
What other factors have inhibited content discovery?
There’s a tendency in the industry to solve the content puzzle by adding more content. But we think it’s about the customer being able to discover content. First, we make sure it’s on the homepage. Second, don’t make the consumer wait for it. At Disney, because Smart Client is a cached client, we actually allow the subscriber to preview an offering before they buy it with a couple of clicks-all within a single environment. At other carriers, there’s a jerky model-first I have to download it, preview it, then get out of the application and go to a media center to purchase it.
Why isn’t everyone implementing this streamlined process?
This is fairly new. If you look at Apple (Inc.)’s iPhone, it’s all about the user experience. In general, carriers are moving towards making content a more seamless experience. Today, when you look at the market, mobile content is a bit of an afterthought. What I think Apple and some of the new market entrants are saying is that voice and data have equal status. Data is no longer a ‘country cousin’ to voice. That’s a change in the industry and obviously we’d like to think that we’re spearheading that change.
How would you describe the arc of data uptake? Where are we now?
We’ve already seen the first content stage. Now we’re entering a new phase. Honestly, there’s enough content to satisfy anyone’s needs. The issue of adoption, however, means that unless you make it really easy for me to find, to purchase, to experience, I’m not going to do it. One analogy is the iPod. When Apple launched it, it wasn’t the most functional or the most portable MP3 player. What they tied together was the content, the device and how you accessed the content, all with a compelling pricing model. So, before the iPod, you could do all these things, but the experience was fragmented. Apple came along with a complete solution. Other carriers are starting to get there.
Last year you expressed skepticism about the uptake of mobile television. Has your view changed?
I’m still of the same view. Is there a market for mobile TV? Absolutely. There’s a segment of TV that’s mobile-centric. I would caveat this by distinguishing between mobile video and mobile TV. We did an application for TV Guide, which enables you to get all TV listings on your handset. The next phase is to enable you to record the show on your DVR at home.
I think that the handset as a remote control, rather than the TV device itself, is a bigger market. If you’re a cable operator, you want consumers to be able to record your content onto the consumer’s home device, which is closer to your value proposition. I think that’s a bigger market than those who will watch the game on their phone. And more mobile phone-specific content will drive that market.
Is the iPhone an improvement in the user experience you highlight?
It’s a huge plus. And I think telecom industry people are missing something. They say, ‘Oh, it runs only on EDGE, it’s not a fully integrated device.’ They need to think, ‘What is Apple in the business of?’ Apple makes money on iPods, they don’t really make money on iTunes. Apple will be in the business of selling iPhones. I’m skeptical of the $499 sticker price, which is pretty steep. The average telecom person, however, fails to grasp that millions of people, for instance, bought the Razr because it was cool. That turned around Motorola and Cingular (Wireless L.L.C.). Carriers sell service, but people buy phones. Apple will drive a certain segment of the market to Cingular to buy the device at $500 or $600. Over time, the device will get better.
I don’t know that it will disrupt the entire industry business model. But it will force carriers-and this is a self-serving point for mPortal-to look at the user experience and say, ‘How can I ride the coattails of the trend towards improving the user experience?’ That’ll happen over the next 12 to 24 months. What Apple’s entry into this space says is that it’s now a user-experience game.
MVNOs have taught the carriers that you have to target and segment the industry on a more granular level. Disney helped them focus more, for instance, on family plans. Virgin (Mobile USA L.L.C.) taught the carriers that youth is a segment you have to go after. Growth in the U.S. market is now a churn game. So the user experience battle is going to be about giving people services they want. We’re just getting to the starting line. As in any industry, change often comes from outside.
