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Hullo! Sony Ericsson Chooses Windows Mobile

by Ewan Spence

The Mobile World Congress is all about raising eyebrows – with s many new phones, services, products and ideas being announced, pre-announced or reaching the public’s hands in Barcelona this week, you need to make some big moves if you want to get noticed. Nokia, as expected, have rolled out a veritable smorgasbord of phones, social networks and product options that they can capture the news cycle for a few hours.

Other Symbian partners joined in as well, with handsets from LG, Samsung and Sony Ericsson all announcing on Sunday night, probably to get some time in the blogosphere before the Finnish juggernaut arrives. But what pricked up my ‘Industry Radar’ was Sony Ericsson’s non-Symbian phone, the Xperia 1. Not because it’s a metal encased handset, nor the qwerty keyboard or the ‘arc slider.’ It’s the operating system.

This is Sony Ericsson’s first Windows Mobile powered device.

For a company that is so closely associated with Symbian OS, to the point of buying the UIQ interface from Symbian and setting it up as a subsidiary company (and then bringing Motorola into the UIQ fold by splitting the company 50/50 with then), this is a very interesting piece of news.

The strategy behind it bears thinking about, because I don’t think this is the action of a company that’s upset with Symbian. The answer may lie in one of Symbian’s fundamental problems – the US market just doesn’t get Symbian OS. The idea of getting a beach-head in the US mobile market with some high end UIQ devices (either by Sony Ericsson or Motorola), in small numbers, has already cropped up here on Mobile Messaging 2.0.

This could very well be an extension of the idea. If the consumer isn’t particularly focused on a specific operating system on their phone, then let’s establish the beach-head with the Sony Ericsson name, rather than with our Operating System prowess.

I’d expect to see the handset debut in the second half of the year, and the marketing should cast some light on Sony Ericsson’s expectations and positing of the Xperia 1 handset. Of course I could be missing something obvious – have you any thoughts on the Microsoft / Sony Ericsson handset?


Microsoft-Yahoo Deal Seen As Driven In Part by Mobile Ad Rev

by Russell Shaw

There are some opinions bouncing around the analyst community that identify mobile messaging and advertising as trends that may have driven Microsoft to try and acquire Yahoo.

Set against the looming spectre of Google as a competitor in this space, MultiMedia Intelligence chief research officer Frank Dickson has some thought-leader thoughts on this issue.

Frank’s thoughts, which he emailed me today, largely relate to the wishes of cell carriers to add additional revenue not tied in to subscription cash flows, and the demonstrated ability of Yahoo! and Microsoft to facilitate mobile advertising and its promise of related income to the carriers.

Frank sent a research brief to me earlier today that lays out the issues and opportunities:

Mobile operators are driving toward an increasingly rich array of data services to sustain growth. Mobile handsets are becoming increasingly powerful media devices, capable of providing a rich media (and advertising) experience. Finally, the Internet is emerging on mobile devices and mobile networks.

The result is advertisers putting their cross-hairs on the world’s 3 billion cellular subscribers. New cellular based advertising techniques will not only deliver display ads but also integrates community, participation and interactivity into the media experience.

“Microsoft and Yahoo! have both identified the promise of mobile advertising and have been frantically attacking the space,” according to Frank Dickson, Chief Research Officer for MultiMedia Intelligence. “In the early 90s, Microsoft scoffed at the promise of the Internet and gave Google a massive jump-start in the market. It will not make that mistake with mobile.”

It will be both fun and fascinating to see how this monumental acquisition process plays out. Even more interesting will be what revenue-enhancing mobile apps a Yahoo-enhanced Microsoft will bring to carriers and end-users.


The Network Effect: A Thought after CTIA

by Ewan Spence

To me, coming from a number of European Conferences, CTIA was a bit of an eye-opener. Not because of the location (it’s hard to find fault with Moscone South in San Francisco), nor with the scheduled presentations and round tables put on by the organisers and attending companies at the event. The eye opener was the influence that the US networks have over their networks, the infrastructure, and the handsets available.

Every network, naturally, has to look out for the bottom line; but at the same time there should be a certain amount of respect for customer, developers, and handset manufacturers… basically the entire chain of the system. American networks, in my view were incredibly authoritarian – but I suspected that part of that was due to the distance I am from the US. After sitting through a number of presentations, and walking the show floor taking to every part of the chain, I have to wonder what the future of mobile messaging will be?

A quick example – the AT&T Tilt, a Windows Mobile smartphone that I’ve been spending some time with - has the usual set of applications and features onboard. But when I try to use the Instant Messaging client, I’m told that connecting via the built-in WiFi client is not allowed… why not connect over the air and use your cellphone’s data plan? You’re happy for IE to use Wifi but not the IM?

I’m sure the carriers will have a nice PR friendly answer as to why, but I’m also sure that the answer will come down to ‘we don’t want to loose a single cent from our SMS revenues.” And I think this ‘must… not… cannibalize…’ is going to be a big problem for any innovation that may occur in the space. When (not if) the next step comes along, I’m worried that it’s going to completely pass us by because it’s not going to be financially acceptable to a few companies with massive leverage on the system.

Twitter, driven by SMS, should be embraced. Where’s my option of a $5/month all you can twitter on top of a regular SMS package? Why, after being around for 18 months, and in the heavily trafficked world of widely adopted Web 2.0 services since Feb/March of this year, is this not available? I mean it does nothing to impact the network code, it’s just SMS, and it drives more traffic for the networks? It’s one isolated example, but I’m sure you can all come up with more. Maybe you can even come up with a service that has been amplified by the networks?

I think mobile messaging has a future, and I think that we will see a new form in the future. But in my opinion it will be in spite of the networks, not because of them.


Facebook, Microsoft and the new Messaging: CTIA Podcast

by Ewan Spence

The second day at CTIA IT and Entertainment 2007 in San Francisco, and Debi, Paul and I meet up at the end of the day to discuss the major issues as we see them. In this podcast, we’re talking about the resurgence of voice, but in applications; the new forms that mobile messaging could take; monetisation and making mobile payments; why aren’t we talking about MMS as the new message?; Microsoft’s $240 million dollar deal with Facebook; what that deal means for Google and their opening up of mobile; and a few points about hype.

 
icon for podpress  MM20 at CTIA pt 2: Play Now | Play in Popup | Download


Microsoft Push Enterprise Devices at CTIA

by Ewan Spence

Steve Ballmer keynoted the first day of the CTIA IT and Entertainment conference, and one of his key announcements was the launch of System Center Mobile Device Manager. This is a set of tools for Enterprise customers that would allow Windows Mobile smartphones to be managed by IT departments with the same granularity as desktop and laptop based equipment in a company.

With between 100 and 150 million instances of MS-Exchange in the wild, compared to around 8-12 million mobile inboxes on smartphones, Microsoft must feel that the discrepancy is worth addressing. Leveraging the Enterprise space to push a product is arguably the same modus operandi used previously by Redmond, but it does make a certain amount of sense, especially as thanks to Active Sync, Windows Mobile devices are some of the most well connected smart devices out there.

Providing IT departments with a feature set they are already comfortable with; and one that should slide easily into corporate IT plans; should see the continued adoption of Windows Mobile devices in the Enterprise space – with security and firmware updates handled centrally, an easy workflow process, and the promise of an Out of the Box experience that has the same ease of use as a consumer device, this could be a good medium to long term move.

One of the main issues standing in the way is that smartphones are always on devices, and almost constantly carried. While workforces don’t have an issue having a laptop dedicated for their working life, and potentially a second laptop or other computer for their personal time, having to tote around two phones is not something that is going to be acceptable to the regular modern worker. The smartphone is an incredibly personal device, and that doesn’t match up to the demand of a locked down, totally secure corporate device. How that problem is dealt with – more than a smooth rollout and remote device management – I think is more important than making it easy for the IT crowd.

I’m also wondering why Microsoft have taken the keynote at CTIA and heavily pushed the enterprise area of Windows Mobile, with no counterweight announcement in the consumer space. Redmond wouldn’t be running scared of another consumer phone that’s the darling of the press in the Valley, would they?


Nokia Go Play - Impressions beyond the N81 and N95

by Debi Jones

Nokia needs to find someone other than their executives to put on stage for these launch events. Showmanship isn’t a Finnish strength. The devices and new direction of Nokia could have been an exciting event, and they’re talking about entertainment to the press. However, the execs struggled with the English language causing stutters and stammers, and they make Al Gore seem animated.

Ever watch someone totally uncool try to be cool? That’s the same awkward and uncomfortable experience of hearing a Nokia executive say that a phone made him think of “Funky, and ah, ah, and fresh.” These guys do a great job of running the market leading mobile device company, but when it comes to charisma, they are more Erkle than P. Diddy.

I had planned to continue live blogging through the Music and Game panels, but couldn’t hear the Music panel, because the first five minutes of the presentation contained repeated US industry bashing mostly from Rob Wells of Universal. The cliff notes version of the moderated discussion:

  • Music Industry struggling
  • US bad, UK/Europe good
  • Digital only 10% of the market
  • US bad, UK/Europe good
  • Mobile is the answer
  • DRM, DRM, DRM
  • Not everyone wants only Britney Spears
  • US bad, UK/Europe good
  • iTunes no DRM solution?
  • US bad, UK good

You’ll recall that Universal was the one music producer, and the world’s largest, who balked at Apple’s no DRM offering and single pricing model. Many people speculated about where Universal would go for digital distribution, and now we have that answer. The US bashing shut down my hearing and I couldn’t live blog the discussion. Sorry. Of course, there wasn’t any new territory discovered from the discussion or the Q&A, so the cliff notes version goes like this:

  • DRM, no DRM?
    • Stealing bad
    • DRM good
  • Why Windows DRM?
    • Stealing bad
    • DRM good
    • Compete with Apple
  • DRM interoperability?
    • Stealing bad
    • DRM good
  • DRM device independence?
    • Stealing bad
    • DRM good

Got it? That pretty much characterizes any discussion of digital music with music industry executives.

Several money quotes from the presentations.

1) From the Q&A in response to a question on the similarities of the new UI and iPhone’s UI

We don’t know what is copied, but if something is out there that is good, we will copy it with pride and if we are the inventor, then we have the inventor’s pride.

Long ago, when asked about Apple’s use of Xerox Parc’s GUI invention in the Macintosh, Steve jobs quoted Picaso: “Artists copy, but great artists steal.”

2) The goal [of Xpress Music] is stated as providing a superior service to Stop Stealing.

While I understand that the phrase “stop stealing” is music to Universal’s ear, this is a false narrative. The size of losses from digital copying of music is dwarfed by the physical CD counterfeiting losses that have plagued the music industry for years.

3) Push back from operator customers and how have operators done with their own services of this same type?

Different operators have different strategies, we are definitely trying to help operators in their strategies. Phones, devices are not enough anymore - often service is needed including ease of use. The way we have cooperated with operators in the past we will cooperate with them with the experience. This has not happened in stealth mode. This is complimentary.

Apparently, Orange doesn’t agree. Most tier one operators have their own music stores, navigation and maps applications, and even gaming catalogue. The new Nokia - the software and services company - expects operators to abandon their own deals with content providers and buy devices that are preloaded with competing services? Really? Unless I’m reading this wrong, Nokia is taking a huge risk that operators are happy to become the carriers of Nokia services.

As Apple and Microsoft continue moving into the mobile industry from a PC base and Nokia moves into the PC space from a mobile base, a comparison of the strengths of their strategies and positions makes sense as a next step.

Ewan Spence a contributor to MM2 attended the event and caught up with Rob Sears, Chief Architect, Multimedia Experiences at Nokia USA, and has an excellent podcast interview with Sears on the implications of the new Nokia.