Wireless telcos have power to stimulate mobile content sector

Wireless carriers are ignoring a critical market for mobile content, which not only is hindering the sector's growth but also mass adoption of new handsets. The solution, says a senior executive at Toronto-based Marblemedia, is to bring price packages in line with other countries and to recognize the value of early adopters. "You can always point to someone else to make it work, but I would like to see the carriers put together a plan at least for the early adopters...where people can pay to have multimedia access," says Diane Williamson, Marblemedia's VP of interactive. "Be that audio and video. Even if they cap it at a size, at $100 a month that people will pay, but then they can get the media they want....The media is out there and we all want to get our content on this platform. That's why I see the chicken and the egg, and the chicken's going to be providers that structure the plans." "If you can't afford to download the content then why do you have the handset?," she adds. "And if that's the case the content producers at the end of that chain are not going to be able to distribute their content on that platform, which is a viable platform." Indeed, when Canadian NEW MEDIA solicited industry wish lists at the end of 2007, multiple executives focused on the state of mobile content in Canada. "One third of the media marketplace is completely shut down in Canada because of one monopoly's cost structure on bandwidth and downloads to cell phones," submitted Lifecapture Interactive Inc. president and CEO Geoff Whitlock. "Fees are astronomical; they're at least two times higher than they are in the US, and at least three to four times higher than they are in Japan. It's just unbelievable. Mobile companies can not expand that part of their business." However, Michael Carter, president and CEO of mobile media company MyThum Interactive Inc. says price isn't the only barrier for Canadian mobile content. "For the heavy users of mobile I think the quality of service, coverage and the technology is probably higher on the list than the actual price-points," he says. "Data rates may be one element of the puzzle that affects people's decision to participate, but they can't participate if the solutions aren't able to launch due to technical issues with the networks here." Industry Canada's wireless spectrum auction in May could eventually affect both pricing and network capabilities in Canada. By setting aside spectrum for new entrants into the wireless arena, Industry is trying to introduce more competition into the market which should lower prices. And the big three wireless carriers - Bell Mobility, Telus Mobility and Rogers Wireless - could bid on the remaining spectrum to bolster their infrastructures for the introduction of next generation wireless technologies. Carter says its only a matter of time before the national cellcos structure their networks and plans to accommodate more data-rich applications. "I think the carriers have to weigh the pros and cons and ultimately understand what impact it's going to have on their short term plans versus long term," he says. "If you look at other markets there are a ton of all you-can-eat plans out there, I think ultimately my gut says over time you'll see the three big carriers in Canada evolve to a package of that sorts for the heavy data users." Early last month Rogers launched a $7 a month unlimited Internet browsing package for certain cell phones. While it turns out the plan prohibits use of some applications (Google Maps and Skype to name two) and doesn't apply to downloading, it is a step in the right direction. Williamson says unlimited browsing wireless plans will encourage more companies to develop Wireless Application Protocol (WAP)-enabled websites. "We're redoing our own website and we're definitely doing a WAP-enabled site, but that's a little step forward versus what could be delivered to handsets," she adds.

Wireless telcos have power to stimulate mobile content sector

Broadcast | March 4, 2008

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