Mobile Internet has emerged as both a new phenomenon and a necessity. Mobile operator should be sensitive to seize the trend in order to achieve its long-term sustainable development. This paper brings forward some effective strategies with a view to the domestic mobile operators.
Mobile Internet has emerged as both a new phenomenon and a necessity. Mobile operator should be sensitive to seize the trend in order to achieve its long-term sustainable development. This paper brings forward some effective strategies with a view to the domestic mobile operators.
Mobile Internet has emerged as both a new phenomenon and a necessity. Mobile operator should be sensitive to seize the trend in order to achieve its long-term sustainable development. This paper brings forward some effective strategies with a view to the domestic mobile operators.
Operator’s Mobile Internet Strategy in the process of
Converged Network
Song Juan Tang Shoulian
School of economics and management School of economics and management Beijing University of Posts and Telecommunications Beijing University of Posts and Telecommunications Beijing, China, 100876 Beijing, China, 100876 songjuan@126.com tangshoulian@263.net
Abstract—It is as a result of this profound converged network
that mobile internet has emerged as both a new phenomenon and a necessity. Mobile internet is promoted by the convergence of the traditional Internet and mobile terminals which is playing an important role of the internet by advantages of a large user base and further explore of the cell phones and other mobile electronic devices. At the crossroads of the rapid developing mobile internet industry, mobile operator should be sensitive to seize the trend in order to achieve its long-term sustainable development. This paper begins by describing the origin and development of mobile Internet. Then, based on the analysis of the mobile internet development environment and the development trend of mobile operators in china, the paper brings forward some effective Figure 1. Mobile internet originated from the converged network strategies with a view to the domestic mobile operators and thereby generates novel insights for researchers, managers and At the crossroads of the rapid developing mobile internet, investors. lots of carriers are sensitive to seize the trend of converged Keywords-mobile internet; mobile operators; converged network in order to achieve their long-term sustainable network; strategy development. By advantage of unique content and products, internet companies are becoming stronger in the mobile internet value chain. Taking the Apple's iPhone as a good I. INTRODUCTION example, iPhone provides users with a revolutionary concept The convergence of the traditional internet, mobile network and the definition of a new generation of mobile phones which and mobile intelligent terminal attributes to the development of should have the form, function and feel. Apple makes the the emerging mobile internet which is taking advantage of iPhone's success go beyond the traditional cell phone mobile internet connectivity, wireless capabilities, smart manufacturers, but also win a better position in the value chain. mobile devices and mobile computing functionality. Mobile This is a huge shock to the traditional telecommunication internet presents development characteristics of digital and IP- business model and market concept. oriented. Digital provides a unified format for digital Apart from Apple, Microsoft and Google are also gearing presentation and IP technology provides a uniform data up; steadily advance their mobile internet strategies. Currently, interchange format. As the premise, network communications Microsoft has identified the mobile internet as one of the five and data sources have become relatively simple that is an strategic directions and then takes the advantage of the terminal important change in the information industry. Industrial to enter the market. As the Fone+ project successfully technology integration will give users a new "Super Media" developed, the users can use Bluetooth or WiFi to connect to experience, that is, Personal Computing, Personal the TV and realize lots of functions such as surfing internet, Communication, Personal Control, which brings users a new listening to music, watching videos, sending and receiving way of life and work. The mobile internet originated from the mails, processing documents and so on. Google is still in converged network can be shown in Figure1. development phase of the GPhone which is integrated a cell phone, cell phone software, mobile advertising and internet telephony in one product. Under the circumstances, the mobile operators hasten to involve in the competition of the mobile internet. The comprehensive strategies for the mainstream mobile operators which step into the mobile internet should be put forward based on their personality and integrated solutions that enhancing
users’ stickiness, and thus share more cakes in the industry dependence on the product. Users to "man - who" dialogue value chain. In the process of converged network, if the mobile model becomes information manufacturing center, with more operators could bring the mobile internet strategies into play, peer to peer transmission of information. Nowadays, Web2.0 is they will get more opportunity to be successful. So the point to becoming a widely accepted concept; it is believed the use of research the mobile operators’ mobile internet strategy is future mobile internet will bring a new change in messaging speaking for itself. mode. Figure2 shows the messaging model in the age of Web 2.0. II. THE MOBILE INTERNET DEVELOPMENT ENVIRONMENT ANALYSIS The mobile internet development environment analysis here will provide a foundation for future work on the mobile operators’ mobile internet strategies. The evolution of mobile internet development environment can be categorized in three parts.
A. Development of Users and their demands
From the perspective of user acceptance to mobile internet, it has a good user base and development trend in the Asia Pacific region. In 2009, about 50% mobile phone users has Figure 2. Messaging model in the age of Web 2.0 experienced internet access in the Asia Pacific region, compared with an increase of three times in 2006, the user C. Development of Content and business acceptance to the mobile internet is very high. In the Japanese In China, mobile internet applications include ringtones, market, at the end of 2006, there are 99.6 million people use news, IM chat, alumni and e-mail, in which the download of mobile devices to access the internet, accounting for about 3/5 the ringtones accounts for more than 50%. The trend of user of Japan's population. According to Nokia's internal statistical demand for the development of mobile internet is from the data, the number of the users through the built-in Nokia mobile traditional standard of communication and information to phones to access is growing rapidly, and half past of them are individuality, diversity, the demand for interactive evolution. from China. The latest CNNIC survey data also shows that in Among them, mobile IM, mobile game, mobile search, mobile the existing mobile internet users, there are more than half of advertising and mobile email have been more optimistic new users within a year. Thus, the development of domestic prospects for the development which are expected to become new consumers of mobile Internet, especially the relatively the first step for mobile internet across the barriers. In this higher degree of acceptance is very promising. paper, we bring forward China's mobile internet business identification matrix as shown in Figure3 below from the B. Development of Messaging model aspects of the network requirements and operational capability In the age of traditional internet, push model of information for mobile operators. leads to poor target and lack of a user's screen; currently, the mass advertising message is stuck in this stage. With the development of technologies such as mobile search, mobile internet will use pull model to extract information, in which stage users can take the initiative needs to find information from a source. However, this way still has certain drawbacks: timeliness of information retrieval and requirements of the good capabilities to users. In the third stage of mobile internet development, based on multi-media communication platform, mobile internet super-media age will achieve the two complement each other in order to protect not only the rapid push-pull mode with the supply, but also through classification for the different users to provide tailor-style service. This will be a new breakthrough in mobile internet message dissemination. Figure 3. Mobile internet business identification matrix in China In addition, in the 3G era, Web2.0 shows up in the mobile internet which will subverts the traditional news portal network With results from the analysis, mobile IM service as a core platform-centric information dissemination model to a and integrated platform makes us to focus on mobile instant "personal media" and realize that the individuals manufacture messaging business development and try to make the information and spread it to many other individuals. The core advantage of its business integration capabilities to provide idea of Web2.0 is the SNS - social networking which makes users with a comprehensive entertainment, information and full use of "Six Degrees of Separation theory" to increase the business solutions to increase users’ stickiness. viscosity between human beings and then increase user From the overall trend, mobile internet should be targeted make full use of foreign operator’s experience to realize the for individuality, diversity and the demand for interactive wired and wireless internet achieve a virtuous circle of development drawing on the concept of Web2.0 and combined development. with the privacy of mobile terminals and special properties of mobile internet which promotes content services and South Korea SKT makes users to transit between the two applications into a new stage. networks more natural and smoother by promoting wired internet and wireless internet together. SKT has its own wired and wireless multimedia internet platform – NATE which has III. THE MOBILE INTERNET BUSINESS grown into the South Korea's top portal sites of cable version DEVELOPMENT STRATEGIES FOR MOBILE and NATE wireless version for wireless data services provides OPERATORS a good platform for the promotion. The music portal MELON Facing up to cross-sector competition in the context of and game portal GXG are integrated into the NATE platform industrial integration and the development of mobile internet, that allows users to enjoy an abundant content and services. In mobile operators should respond promptly to seize the the beginning stage, the first quarter of 2006, NATE’s initiative in the value chain to make the mobile internet contribution to revenue was 3.67 billion U.S. dollars, develop fast and sound. Specifically, mobile operators can accounting for more than half of the wireless internet revenue. expand business model by constructing a user database and It is wisdom to make the wired and wireless internet carrying out personalized business marketing. The mobile develops together at stage of the popularity in mobile internet telecommunications network operators take advantage of high- for the mobile operators. From the user's perspective, the "dual- quality, wide coverage dominate in the value chain. Large mode" services and products are available to all users at the users of resources enable mobile operators to fully understand same time; from their business perspective, wired and wireless the users’ behavior, grant users’ demands easily, and then can complement each other to maximize the use of resources. control the value chain. Therefore, operators can fasten the development of mobile internet by making full use of their own C. Improve the basic environment and promote the mobile core strengths to guide business users. The effective cross- internet business applications steadily sector cooperation, and vigorously enhancement of the relevant supporting services, entertainment, information and business According to the 3G business survey in 2007 from "Global integrated development are the initiative of the development of Financial Watch", 34% of respondents believe that mobile the mobile internet services. Mobile operators’ mobile internet services should be the main business items. Nokia's survey also business strategy should focus on the following points. indicates that the vast majority of enterprises are the existence of "hidden mobile workers," about 60% of employees use mobile phones in the office. This makes us to focus on the A. Make a clear position in value chain and to be a good inherent potential of mobile internet business applications. channel provider and business integrator As the traditional information, entertainment, business and Due to the business operations, enterprises have a strong other services on the internet transplant to the mobile internet, demand in the precision marketing and personalized services the value chain of mobile internet industry is extended. And on the mobile internet business applications. Such as Hewlett- then mobile operator clarifies their value chain positioning Packard administrates scheduling on-site service engineers becomes particularly critical. with the mobile commerce technology; Coca-Cola collects the first-line sales data using of the mobile commerce technology; For the value chain positioning, mobile operators should Bank of China provides a warm and practical message and pay more attention to their own advantages, strengthen the reminders for the recipients. It is should be said that the dominant position, find the strongest partners in value chain, enhancement of mobile bandwidth in the future will greatly and create win-win cooperation and harmonious industrial stimulate the potential demand for mobile commerce. In the 3G ecosystem. For mobile operators, it is very important that or B3G era, mobile internet business applications will be contact with customers directly to control the key link, developed step by step. including customer portal - access portal; customer experience and the environment - business platform; the carrier of the Although the industry chain parties are all enthusiastic to customer experience - the terminal. Extensive network of develop the mobile internet, the basic environment of the resources allows mobile operators to access to the portal mobile internet business application needs to be improved. smoothly and occupy the business platform. At the same time, Such as the user's acceptance, addressing modes, terminal by virtue of the network, portal, platform, control over the functional limitations, mobile payment environment, RFID Branch, the mobile operators should strengthen the influence of application environment and other infrastructure elements are the terminal in order to control key points very well. present lacking. Therefore, it is necessary to rely on the strength together to promote mobile internet business B. Push "dual-mode" services actively and develop the wired applications, and use it as the breakthrough to push the comprehensive development of mobile internet services. and wireless together Mobile internet business inherited but different from the traditional internet. Two network services will be long-term coexistence and mutual promotion. In dealing with the relationship between them, China's mobile operators should D. Deepen information products to provide interactive IV. CONCLUSION functionality and increase customers’ stickiness At present, the mobile internet development strategy for With the development of the Web2.0 and mobile broadband mobile operators in the process of the converged network has technologies, users’ demands and interactive personalized become a focus in the telecommunication industry. Reviewing requirements are increasingly dominant, so mobile operators all the researches on it, there are still remained so many need to provide diverse, one-stop content and services to meet questions to be answered from different aspects and with view users’ requirements. However, this process is certainly not easy, to different research methods and due to the consideration of and the mobile operators need increase the interactive module, the operation practice. Based on the business environment use new product development philosophy as a guide on the research, the paper does the further analyses on the mobile internet and be more concerned about the development of the operators’ development strategy of the mobile internet and users’ experience and the change of their requirements. An thereby generates novel insights for researchers, managers and innovative business operation model is crucial to enhance the investors. business experience and customer value. In the specific business development, the mobile operators should enhance the REFERENCES attractiveness of business and customer stickiness by adding interactive elements to the information technology product. 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