How Mature Is Your Mobile Strategy?

Among the biggest strategic questions facing eBusiness & Channel Strategy executives are how to make use of the growing potential of the mobile channel, how to integrate mobile phones into their company's multi-channel strategy, and how to meet customers' rising expectations for mobile services.

We have argued that, for most companies, mobile's time has come. Every company needs to have a mobile strategy in place, even if that strategy is to wait until specific things happen before making serious investments.

Most of the eBusiness & Channel Strategy executives that we work with are either directly responsible for, or closely involved in, their company's mobile strategy.  So we would like your perspective -- and we'd like to help you benchmark your mobile strategy against that of your peers. 

We invite you to take part in a short survey about your company's mobile strategy, your objectives, the metrics you use and the challenges that you face. You can take part in the survey here.

  • The survey takes less than 15 minutes to complete. 
  • Individual responses will be kept strictly confidential and results only published in aggregate.

In return, we will give you a free executive summary of the survey results.

We're keen to get as wide a sample of industries and geographies as we can, so please feel free to forward this survey through your networks. If you are not familiar with your company’s mobile strategy, but know who is, please forward this survey to them.

I look forward to your perspectives. Thank you in advance for your time.

The Consumer Impact Of An End To "Unlimited" Mobile Internet

Last week, O2 in the UK and AT&T in the US announced an end to "unlimited" mobile data on their smartphone tariffs.

Many have argued -- some discussed with me on twitter last week -- that the impact on consumers will be minimal as very few consumers currently use a greater amount of data than the new data limits. This is only a part of the story. There will be unintended impacts as the new limits will alter mainstream consumer behaviour:

  • The perception of "unlimited" is as important as the reality. Like the word "free", "unlimited" is a powerful word in helping consumers feel sufficiently comfortable to experiment with the mobile Internet. Any sense that a consumer will incur extra costs, or a glacial throttled speed, as a result of using too much data will cause consumers to alter their behaviour. And, as mobile Internet adoption is still relatively small, this could cause a slowdown in usage that will harm the mobile industry. Handset makers will see slower demand for advanced smartphones while operators will see lower revenues, alongside the lower data costs that they so desire.
  • Consumers' expectations have been set by their home broadband experience. Before the arrival of unlimited mobile Internet tariffs three to four years ago, adoption of mobile Internet was tiny. The vast majority of new mobile Internet users never used the older tightly limited mobile data tariffs -- the time when 10Mb was a generous bundle -- but the new consumers that have started using mobile Internet in the post "unlimited" data era have been conditioned by home broadband. In the home, most packages are either unlimited and marketed as such, or so generous with their data limits so as to be effectively unlimited.

 

In a similar vein, I'm unconvinced that the widely publicised AT&T and O2 moves will mean an end to "unlimited" mobile Internet tariffs across the board in Europe. In diverse countries across Europe there is fierce mobile operator competition. The iPhone is non-exclusive in most countries. Other advanced handsets typically enjoy brief periods of exclusivity before being offered on all operators.

This competitive dynamic enables consumers to pick and choose the best offer from the variety available, and so encourages mobile operators to differentiate. O2 showed its hand early with its new iPhone and smartphone tariffs last week, I expect we will see a variety of options from the six operators in the UK that sell the 3GS today or have announced they will sell the iPhone4. In markets with fewer mobile operators -- such as France -- and a lesser competitive dynamic, the range of offers will likely be more uniform.

The End Of "All-You-Can-Eat" Mobile Data Plans?

Following AT&T's decision in the US ten days ago (see my colleague Charles Golvin's take here), there's a hot debate as to whether European operators will follow suite and stop their unlimited mobile Internet pricing schemes.

O2 UK announced no later than last Friday that it will stop it and introduce various caps: from 500MB for the cheapest one (GBP25 with 100 minutes and unlimited texts) up to 1GB for the most expensive (GBP60 for unlimited voice/SMS and 1GB of mobile Internet).

According to the press release, 97% of O2 smartphone customers would not need to buy additional data allowances, as the lowest bundle (500MB) provides at least 2.5 times the average O2 customer’s current use. In short, just 3% of customers will have to pay extra.

Other UK operators as well as KPN in the Netherlands and Orange France have shared indications that they will follow suite and that this pricing scheme is outdated. Here are a couple of thoughts:

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