Mobile data was supposed to be the next big thing for e-commerce
players, but so far has failed to take off.
There has always been a fuss about mobile data, but, like many
technologies, it has only become visible since it moved into the
consumer space.
Companies have been offering mobile data for corporates since the
early 1990s, for applications such as communicating with fleet
vehicles. But the emergence of cheap digital cellular services has
opened up the market for data accessible over mobile phones and
PDAs, creating a possible outlet for business-to-business and
business-to-consumer e-commerce services.
What standards exist?
This is where the terms 2G, 2.5G
and 3G become relevant. Throughout most of the 1990s, the best bet
for data networks was the second generation GSM standard, adopted
by most European players. This could realistically send data at
only 14,400 bits per second, and wasn't that reliable.
Now, however, 2.5G networks are emerging, based on two main
standards in the UK - general packet radio service (GPRS) and high
speed circuit switched data service (HSCSD).
The main benefit of GPRS is that it is an always-on system - unlike
conventional GSM, you don't have to initiate a call from your
mobile device to send data, and you don't have to pay by the
minute. You are always connected to the network and you only pay
for the data sent and received. This makes it very useful for
intuitively accessing online services.
HSCSD, on the other hand, focuses more on bandwidth than on
constant connection and is perceived to be faster than GPRS.
Orange, for example, runs networks using both standards, but its
HSCSD network supports the cellular videophone that was recently
launched by the company.
On top of these technologies sit the protocols that enable mobile
data to be sent (if a 2.5G or 3G network is the road along which
mobile data is sent, then these protocols would be the vehicles
containing that data). The main protocol in the UK is the wireless
access protocol (WAP), although iMode, which has been successful in
Japan, is making its way into Europe.
I keep hearing about a WAP backlash - what
happened?
The vendors hyped up the capabilities of WAP
technology to sell more equipment and boost their stock prices. In
reality, the technology simply could not meet these inflated user
expectations. You just can't browse the Internet on a WAP phone
with a tiny screen in the same way that you can do it on a PC
browser.
So is mobile data dead?
Rumours of its death have been
exaggerated. It is still rich with opportunities, but the market
will have to educate disillusioned consumers about the benefits of
newer-generation technologies like GPRS, which won't be easy.
Three things will drive the market for mobile data. Firstly, what
the market needs is a killer application, and offering people the
ability to look up stock prices and sports scores on WAP phones
simply won't cut it. Mobile commerce is being proposed as the big
driver for mobile data, and location-based services will be
particularly important.
Secondly, it needs more consumer-friendly devices and software
interfaces because these are a priority for non-corporate users.
iMode offers full screen colour, and there are rumours that future
generations of WAP will also offer colour to users. These must be
integrated into more attractive devices, as current smartphone
screens are laughable.
Finally, wireless instant messaging and peer-to-peer computing -
two technologies looking for a market - will merge together in the
coming months to create an attractive mobile data offering.
Imagine, for example, a mobile phone that told you when a colleague
had switched on their PC in the office, or instantly alerted you if
your flight time had been changed.
What about 3G?
Promising even higher bandwidths, 3G
technology faces severe problems. Firstly, network providers are
finding it difficult to implement, and secondly, they have invested
so much money in ridiculous bandwidth licensing fees that it will
be hard for them to make a sufficient amount of money back. This is
bound to affect user pricing and slow down adoption.
Is there a skills shortage for mobile
developers?
Security skills are important in this area, as
are WAP coding and mobile networking expertise. In an IT jobs
market that is generally flat, mobile data professionals still
demand a premium.
The critical problem here is that companies investing in developing
the services are unlikely to see major returns for around 18 months
- they have to wait for the market to take off and achieve a
critical mass.