Will the Mobile Phone Become the Dominant Internet Platform?
It could happen…

The personal computer remains the dominant platform for accessing the Internet around the world. However, in many countries Internet access via the mobile phone is actually outpacing wireless access from a notebook PC. After all, there is a massive installed base of mobile phones globally, and wireless networks are expanding every day.

According to A.T.Kearney, while in 2004 only 36% of mobile phone users browsed the Internet or downloaded e-mail, that figure rose to 56%. In Japan 92% of users went online via their mobiles.





In a study just released, "The Face of the Web," Ipsos Insight found that 28% of mobile phone owners worldwide had browsed the Internet on a wireless handset, up slightly from 25% at the end 2004.

Brian Cruikshank of Ipsos noted, "Accessing the Internet on a wireless handheld device is no longer a novelty for consumers in the major global economies. It's becoming a common, everyday occurrence for many people."
In fact, it was the Ipsos study that posited that mobile phones are poised to become the dominant Internet platform outside the home. "In the long term, many of today's PC-centric online activities could be complemented through the mobile phone or migrate to the mobile phone altogether, due to greater convenience and faster connection speeds," said Mr. Cruikshank. p>Mobile phone ownership is certainly on the rise around the world. The Ipsos survey showed ownership in major countries ranging from 61% of consumers in Canada to 95% in Japan.

Internet browsing via a wireless device is also growing in many global markets. France and the UK are exhibiting the strongest growth, while Internet usage via mobile phone in Japan also continues to grow rapidly. Today, four in 10 adults browse the Internet on their wireless handset in Japan, double the rate in 2003.

Over half (52%) of all mobile phone households today have sent or received a text message, and over a third (37%) have sent or received e-mail on a mobile phone. In general, almost all wireless device activities experienced growth in 2005 — including m-commerce, financial transactions, sending or receiving digital pictures and downloading entertainment.
Japan — followed by the UK, US and South Korea — leads the world in browsing the Internet via mobile phone for news and information.

All this activity aside, however, it should be noted that Ipsos found that the growth in Internet browsing on a mobile phone was flattening in some markets, specifically the US and Canada, where wireless Internet access via notebook PC appears to be emerging as the stronger out-of-home Internet platform.

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Tracking children: Mobile's next big thing?
Disney leads the way for worried parents...

You might think kids are too young for mobile phones but your mobile operator doesn't. Services catering to the under-14 age group and their parents could be the next big driver of growth in the mobile phone industry.
While mobile phone penetration rates are high among the US population as a whole - roughly 69 per cent - there is still plenty of opportunity in selling phones to kids. According to George Grobar, general manager of Disney Mobile, mobile phone penetration among about 24 million children between the ages of 10 and 14 in America is only 24 per cent.
Charles Golvin, an analyst at Forrester Research, said the family market has solid potential: "Families will definitely be a meaningful market for mobile operators. There are some parents who want their kids to have cell phones for emergencies but aren't comfortable giving their kids a phone with no limits or restrictions."
For years, the major US mobile operators have been selling family plans that let parents share buckets of mobile phone minutes with other family members. And this segment of the market has been growing recently, said Clay Owen, a spokesman for US operator Cingular Wireless.
So it's not very surprising that Disney, the omnipresent family entertainment brand, would target kids and their parents for a new mobile service, called Disney Mobile, which will launch in June.
Disney hasn't built its own cellular network but is instead leasing capacity from US service provider Sprint Nextel. This arrangement, often referred to as a mobile virtual network operator, or MVNO, setup, is a growing trend in the mobile phone industry.
Unlike the family plans offered by the big carriers, Disney Mobile gives parents more power over how and when their children use mobile services.
"Today's plans from the big carriers don't address parental control issues," said Parry Aftab, executive director of WiredSafety, an advocacy group of Wired Kids for parental control of web usage. "There are a lot of parents who want their kids to have cell phones so they can get in touch with them when they need them but many of them have been holding off buying them phones because they don't feel comfortable."
The Disney service was designed specifically for parents who want their kids to have mobile phones for safety and convenience reasons but are either afraid of what their kids might do with the phones or are concerned about getting surprised at the end of the month with a huge mobile phone bill.
Disney has created a call control centre that can be accessed either on the parents' handsets or from a website on a PC to allow parents to set up a monthly allowance of voice minutes, text messages or other services for each child. Alerts are sent to parents and kids when the limit is reached, allowing parents to either increase the allowance or restrict the phone's use. Unlike prepaid phone service, the Disney service offers exceptions to imposed limits on available minutes so that even when a limit is reached, kids are able to call Mom and Dad or reach 911 in case of an emergency.
Parents can also restrict kids from using certain services and designate when other services can be used. In addition, parents can limit which numbers can be dialled as well as restrict certain numbers from ringing on the phone. By way of GPS technology, parents can even pinpoint the location of their child's handset on a map. There's also an alert function that sends priority messages among family members.
Aftab said parents interested in a service such as Disney's are the same ones who put their home computers in the living room or family room so they can monitor what content their kids access online.
"Once your kid leaves the house, you have no idea what he or she is doing with [the] cell phone," she said. "They could be downloading ring tones of orgasm sounds, for all you know. Or maybe they're being bullied by another kid through text messages. Disney is the first company to address these concerns."
While large carriers may not offer as comprehensive a service as Disney's, they have still been working to address parents' concerns. Cingular's Owen said parents are able to request that certain services, such as text messaging or web browsing, be turned off on one or more of the phones in their family plan. Parents can also check minutes and usage for each phone in the plan online or from their handsets.
"We're constantly looking to improve all of our services," Owen said. "And it's definitely an area we're looking into."
Cingular and Verizon Wireless also offer controlled-use mini mobile phones for the under-10 set. These gadgets are designed to let parents manage costs and the calls their kids make and receive while remaining connected.
Cingular's FireFly phone has buttons for pre-programmed phone numbers for Mom and Dad, along with a button for 911 emergencies. Up to 20 additional numbers can also be programmed into the phone. Verizon's Migo phone from LG also offers a dedicated emergency button, along with four buttons that parents can program.
Even though the big carriers' services and phones don't match the functionality of newcomer Disney Mobile, they still may have an edge over Disney. For one, most parents who'd even consider buying a mobile phone for their kids are already customers of one of the big mobile phone companies. It might be easier and more cost-effective for them to wait for new features to be added to their current provider's packages.
"Disney's offering is more comprehensive, in terms of parental control, than anything else I've seen on the market," said Julie Ask, an analyst at JupiterResearch. "But whether or not large numbers of parents subscribe to the Disney service may depend on pricing and the value of the services."
Disney hasn't yet announced its mobile service's pricing details. Cingular and Verizon offer entry-level packages that include free mobile-to-mobile calling, as well as free nights and weekends, for $60 and $70 per month, respectively. These services include two phone lines, and additional lines can be added for $9.99 each.

Marguerite Reardon writes CNET News.comET News.com

10/4/2006