Telecom Operators Hope That the New Service Will Gain Momentum

By DAVID PRINGLE v1b20bs

HANNOVER, Germany -; On his birthday last August, Andrew Finkelstein’s wife bought him camera attachment for his new color-screen mobile phone.
At first, the 34-year-old financial trader in the City of London had some fun sending friends pictures via e-mail, but he hasn’t used camera for the past few months. ”It’s like toy, then you move on to new toys”, he says. ”There are zero practical applications.”
That isn’t what mobile-phone operators in Europe and The U.S. want to hear.
The operators are engaged in a big push to persuade their customers to use their phones to send each other pictures and audio messages. Multimedia messaging, or MMS, as these services are known, is widely regarded as operator’s best hope of developing a major new source of revenue to add to voice calls and text messages. But almost a year after MMS was fist launched in Europe, the service is still struggling to gain momentum.
In the U.S. operators are just beginning to offer MMS.
T-Mobile, a unit of Deutsche Telekom AG and an MMS pioneer, said last week that it sold 500.000 MMS handsets in Europe and the U.S. by end of January, and during January 500.000 picture messages were sent by its customers. That suggests people with MMS phones are sending on average just one or two pictures a months. However, a T-Mobile spokeswoman says the number of MMS messages sent on its networks doubled from November to December and the company is confident usage will continue to grow. But some analysts now believe it could be as late as 2007 before the service becomes a mass-market phenomena. One stumbling block is that operators have been slow to set up agreements with other operators that allow messages to be sent from one network to another.
More important, MMS handsets and services appear to be priced too high for a key group of users-teenagers, who are typically avid users of text messaging.
T-Mobile’s MMS charges vary by country, but in the U.K., customers have to pay 35 pence (51 European cents) to send a picture message or they can buy bundles up front, such as 10messages for £2.50. Handsets with built -;in cameras and high-definition color screens typically retail for 200 E in Europe as part of a service contract.
Thorsten Dirks, chief innovation officer at the German unit of Dutch operator KPN Mobile NV, speaking at the technology conference in Hannover, says MMS will take off later than many in the industry had hoped because it is now the service depends on low phones with built-in cameras. “It will take some time”, he says.

But Rudolf Groger, chief executive of the German unit of British operator mmO2 PLC, says his company has had some success selling cheaper MMS phones without built-in cameras. He says mmO2’s customers with MMS phones in Germany are sending an average of five to six picture messages a month.
For now , industry revenue from MMS is very modest. Research firm Shosteck Group based in Wheaton, Maryland, says that the multimedia messaging market in 2002 totaled just $100 million (E90.5 million) in Europe and nothing in the U.S. In Asia, where Japanese operators launched phones with built-in cameras as early as 2000, picture messaging accounted for $1.8 billion in revenue last year, the research firm said. But even there the service hasn’t proven to be a surefire money-spinner. Jane Zweig, Shosteck’s CEO, says South Korean operators have enjoyed a lift in revenue from MMS, but in Japan their counterparts have had to cut the price of the service to maintain interest.
“In Japan, the novelty has worn off and ARPU aaverage revenue per useri has gone down”, Ms. Zweig says.
Although European operators have so far kept MMS tariffs high, T-Mobile France Telecom SA’s Orange unit and others have slashed the price of Internet browsing, e-mail and other mobile data services to try to persuade consumers to use them. Nikesh Arora, chief operating officer of T-Mobile, says that only one in five of the customers who have tried T-Mobile’s mobile data services are using them regularly. “We have to get people to try it for the second on third time”, he says.
Eventually, operators may have to slash MMS charges, too. Analysts believe operators have plenty of scope to cut MMS prices, as it costs them just a few cents to send a picture message. The cost of adding a camera to a handset is falling, and even low-end phones will probably include one as standard eventually. T-Mobile says customers with phones built-in cameras send twice as many pictures as those with ordinary MMS handsets.
Some analysts believe operators can kickstart the market by setting up services in which consumers receive MMS messages containing media content, such as an extract from a new pop song and some pictures of the artist. Telecom Italia Mobile, a unit of Telecom Italia SpA, has already launched a service allows football fans to receive pictures of their team scoring a goal just moments after the ball hits the back of the net.
But employers, which tend to pay higher ranking employees mobile-phone
….. frown on some of the new services. In London restaurant, Sue Jackson, a marketing executive with a U.S. Internet firm a London, shows off her shiny new Nokia color-screen phone. But she says doesn’t send any MMS messages; her employer has disabled the MMS functions her phone and those of her colleagues keep a lid corporate phone bills.

Lupta mesajelor multimedia in Europa

Operatorii Telecom spera ca noul serviciu sa ia avant

Hannover, Germany -; La ziua lui de nastere, augustul trecut, sotia lui Andrew Finkelstein’s i-a cumparat o camera atasabila noului sau mobil cu ecran color.
La inceput, comerciantul financiar de 34 ani din orasul Londra gasea amuzant sa trimita prietenilor fotografii prin posta electronica dar nu a mai folosit camera in ultimele cateva luni. ”Este ca o jucarie, apoi te indrepti catre noi jucarii”. ”Nu are aplicatii practice”
Asta nu e ceva ce operatorii de telefonie mobila din Europa si US vor sa auda.
Operatorii sunt angajati sa convinga clientii sa-si foloseasca telefoanele pentru a trimite unii-altora fotografii si mesaje audio. Mesageria Multimedia sau MMS, cum sunt cunoscute aceste servicii, considerate cea mai mare speranta a operatorilor, de dezvoltare majora a noilor surse de venit adaugandu-se la cele din mesajele text. Dar la aproape 1 an dupa lansarea in Europa a MMS, serviciul lupta inca sa castige teren.
In U.S. operatorii abia au inceput sa ofere MMS
T-Mobile, o unitate a Deutche Telecom AG si promotor al MMS a spus saptamana trecuta ca s-au vandut 500.000 accesorii MMS in Europa si in US pana la sfarsitul lui Ianuarie si in decursul lui Ianuarie au fost trimise de catre clienti 500.000 de mesaje cu imagine. Asta indica faptul ca cei care au telefoane cu MMS trimit in medie doar 1 sau 2 fotografii pe luna. Totusi, o telefonista de la T-Mobile spune ca numarul mesajelor trimise in reteaua lor a fost dublata in decembrie fata de noiembrie si increderea companiei in folosire acestora continua sa creasca. Cativa analisti cred ca cel tarziu inainte de 2007 serviciul va devenii un fenomen de piata.O piedica este faptul ca operatorii au incetinit aranjarea unor intelegeri cu alti operatori pentru a permite trimiterea mesajelor de la retea la alta.
Mai important, accesoriile MMS si serviciile sunt la un pret prea mare pentru un grup de utilizatori -; adolescenti, care sunt utilizatori infocati de mesaje text.
T-Mobile taxeaza MMS diferit de la tara la tara, dar in U.K clientii platesc 35 pence (51 centi in Europa) pentru a trimite mesaje fotografii sau le pot cumpara inainte ca de exemplu 10 mesaje pentru 2.50£. Aparatele cu camera incorporata cu rezolutie buna a ecranelor color se vand normal cu 200 Euro in Europa si face parte din contractul de service.
Thorsten Dirks, ofiter sef al departamentului Inovatie la reprezentanta germana a operatorului olandez KPN Mobile NV, vorbind la o conferinta pe teme tehnologice in Hannover, spune ca MMS va avea priza mai tarziu decat multe altele in domeniu, deoarece acum serviciul depinde de putinele telefoane cu camera digitala incorporata. “Va dura ceva timp” spuse el.
Dar Rudolf Groger, director executiv la reprezentanta germana a operatorului britanic mmO2 PLC spune ca, compania lui a avut succes vanzand telefoane ieftine dar fara camera incorporata. El spune ca, clientii lui mmO2 cu telefoane cu MMS din Germania trimit in medie 5 pana la 6 mesaje cu imagine pe luna.
Pentru moment, veniturile din MMS sunt foarte modeste. Firma de sondaj Shosteck Group care are sediu in Wheaton, Maryland, a spus ca piata de MMS in 2002 a totalizat doar 100 milioane $ (90.5 milion Euro) in Europa si nimic in U.S. In Asia unde operatorii japonezi au inaugurat telefoanele cu camera incorporata la inceputul lui 2000, mesajele cu poza au totalizat cam 1.8 bilioane$ in veniturile anului trecut, spuse firma de sondaj. Dar chiar si acolo acest serviciu nu s-a dovedit a fi o sursa categorica de venit. Jane Zweig, presedinte Shosteck spune ca in Coreea de Sud operatorii s-au bucurat de o revigorare a veniturilor din MMS dar in Japonia a trebuit sa reduca din pret ca sa mentina interesul pentru acest serviciu.
In Japonia, inovatia(noutatea) s-a dus si media veniturilor pe utilizator a scazut, spune ms.Zweig.
Altfel, operatorii europeni au tinut tarifele MMS mari, unitatea T-Mobile France Orange si altele au redus din pretul pentru accesul la internet, email si alte servicii mobile pentru a incerca sa convinga clientii sa le foloseasca . Nikesh Arora ,sef oprator de la T-Mobile spune ca doar 1 din 5 clienti care au incercat serviciile le folosesc in mod regulat. ”Trebuie sa-i facem pe oameni sa incerce si a 2-a, a 3-a oara.”, spune el.
Pana la urma si ei (operatorii din Europa) vor trebui sa mai reduca din pret. Analistii cred ca operatorii au suficiente motive sa reduca din pretul MMS pentru ca pe ei ii costa cativa centi sa trimita MMS. Costurile sa adaugi o camera ca accesoriu scade si chiar telefoanele slab cotate il vor include eventual in configuratia standard. T-Mobile spune ca, clientii cu telefoane cu camera incorporata trimit de 2 ori mai multe imagini decat cele uzuale cu MMS atasat.
Unii analisti cred ca operatorii pot sparge piata punand la punct servicii in care clientii sa primeasca mesaje MMS continand mesaje media , ca de exemplu continand un extras dintr-un cantec si cateva poze cu artistul. Telecom Italia Mobile, unitate a lui Telecom Italia SpA a lansat deja un serviciu care le permite microbistilor sa primeasca imagini de la echipa lor favorita inscriind un gol, imediat dupa ce mingea a intrat in poarta.
Dar angajatii sunt tentati sa plateasca mai mult companiilor de telefonie mobila doar pentru cateva noi servicii. Intr-un restaurant din Londra, Sue Jackson, director de marketing a unei firme de internet americane din Londra a socat cu noul stralucitor Nokia cu ecran color. Dar ea spune ca nu trimite mesaje MMS, angajatii sai au dezactivat functiile MMS de la telefonul sau si ale colegilor mentinand factura corporatiei.