Analysts advice "Good mobile services dont need 3G"

The debate on the mobile Internet focuses far too much on technology and bandwidth. So thinks Pär Ström, mobile Internet strategy adviser, who is one of Sweden's ten most popular speakers, according to Veckans Affärer (Weekly Business), the respected Swedish business magazine.

"In Europe we think that it's the 3G network that will open up the market; and focus on technology," says Pär Ström. Experience from Japan shows that desirable services can already be created with the current low bandwidth.

"An important difference between mobile and 'the ordinary' Internet is that when surfing with a mobile phone the user is always identified. This makes it easier to charge for services,", he continues. It's also easier to set up customer profiles and one to one marketing. Another important difference from the ordinary Internet is that the location of the user is always geographically known - this too opens the way to new business opportunities.

Pär Ström does not consider that 3G is the paradigm shift that everyone else says it will be.

"The big step is moving from 2G (GSM) to 2.5G (GPRS), since that means a transition from 'circuit switched´ to 'packet switched´ networks," he points out. This makes it possible to remain permanently connected to the Internet while only paying for the bandwidth that is actually being utilised. Packet-switched networks are also considerably less affected by signal interference, and therefore result in fewer interruptions.

Ericsson and Nokia
Pär Ström helps his clients to transform their visions and ideas into profitable business. On a newly-produced video he provides an educational and interesting review of the business opportunities offered by the mobile Internet. He also explains why the Japanese i-mode service has become such a great success.

"I have been assigned tasks by Ericsson and Nokia, among others," relates Pär Ström. "I arrange seminars on the subject of the mobile Internet and act as a strategic adviser for operators, content suppliers and other companies which could use the mobile Internet for B2B or B2C applications."

On the B2B side, for example, sales persons on the move can now send information directly to the head office and themselves receive instantly updated information concerning such matters as stock levels and delivery times. A company with service technicians in the field can, thanks to geographical positioning, assign the technician who happens to be nearest the client.

"Four criteria for good B2C services are to provide some entertainment, some immediacy, something personally-adapted and something location-dependent," continues Pär Ström.
Those who are already in a payment relationship with their customers have a considerable lead. If you are already invoicing your customers it becomes easy to charge for new services. This paves the way for new virtual operators, e.g. a chain of shops or petrol stations could issue its own SIM cards and sell telephony and data services, using leased network capacity.

By means of 'hot spots', local wireless access points that use licence-free frequencies, many new companies could possibly become a kind of alternative mobile operator. This applies for example to shopping centres, hotels and restaurants.

Pär Ström has an MSc degree in Engineering Physics. Before he started his own company he was manager of the Electronic Media department at the Institute for Media Technology in Stockholm. He has written several books on the digital economy.

For further information, please contact:
Atomer and Bitar AB, Pär Ström, partner
Arholmavägen 39, SE-182 49 Enebyberg, Sweden
Tel, direct line: +46 709 699 411
E-mail: par@atomerochbitar.se
Site: www.atomerochbitar.se/eng

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Analysts advice "Good mobile services dont need 3G"

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