Vodafone
announces latest European 3G delay
By Fierce Wireless
September 04, 2002
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Guest Comment:
Removing Barriers to Mobile
Data Adoption
Telespree's
Gail Redmond offers insight into obstacles to mobile data adoption and
how to remove them.
Guest Comment:
Removing Barriers to Mobile Data Adoption
 |
| Telespree's
Gail Redmond,
Vice President, Marketing |
Telespree's Gail Redmond
offers insight into obstacles to mobile data adoption and how to remove
them.
Fact: 10.5
million laptops in the U.S. in 2002, growing at a 20 to 30 percent annual
rate.
Opinion:
Vast majority of laptop users are highly skilled Internet users who
would value severing the phone line from their laptop to the wall.
Problem:
How to get them started.
Let's do some quick math.
There are 10.5 million laptop users in the United States, and laptop
usage is growing at (depending on whom you ask) 20 to 30 percent a year.
The vast majority of these laptop users are highly skilled Internet
users who welcome the opportunity to sever the phone line from their
laptop to the wall. Those of us who've had to handle an urgent business
issue from an airport gate know the value of gaining real-time access
to messages, data and corporate files from our laptops.
Thankfully for the business
professional, help is on the way. Delivering a compelling wireless data
service requires three things: decent mobile data speeds, reasonable
pricing plans and an easy way to get started. U.S. mobile operators
are complying with the first two requirements; GPRS and CDMA 1x networks
are rolling out in 2002 from Verizon, Cingular, AT&T Wireless, Sprint
and VoiceStream. Some, if not all of the carriers, have released fairly
affordable data rate plans (note - this can and is being debated: Andrew
Seybold applauds the new megabit pricing models, while Walter Mossberg
calls them pricey and confusing). Unfortunately, the third requirement
- an easy way to get started - is being overlooked.
While U.S. operators have worked extensively on perfecting their
network speeds, reliability and market offers, they've sorely neglected
a basic requirement for 3G success - making the "getting started" process
easy.
Let's go back to our example.
If a typical traveling business professional uses 1MB of mobile data
monthly, he or she has the potential to generate $250 to $750 in incremental
annual ARPU. If the U.S. wireless industry converts 20 percent of current
U.S. laptop users to wireless, the industry could realize a conservative
$500 million to $1.5 billion upswing in U.S. wireless revenues. Most
analysts concur that wireless data's "killer app" is email. Morgan Stanley
has repeatedly stated, most recently in June, that SMS and e:mail will
be the primary drivers for wireless data revenue.
So,
what's preventing this from happening? One key issue is the excruciatingly
complex process by which any wireless device, including wireless modems
or Internet cards, gets activated and provisioned for service on a nationwide
wireless network. Compounding the problem is the fact that wireless
modems are sold almost exclusively in carrier-owned stores, where the
42-year old business professional has to stand in line on a Saturday
behind teens choosing faceplates. When he finally gets served by a sales
rep who may be very knowledgeable about handsets, he discovers that
the rep hasn't a clue about how laptops and modems work nor how to activate
them. So, the harried business professional opts to purchase the data
card and take it home to install and activate, using the carrier's 800
number.
Memories of past DSL modem
installation nightmares flash by and begin to pale in comparison. This
is not a recipe for successful rapid uptake of any technology product.
The
savvy computer user quickly installs the modem and then dials the carrier's
800 number. Now the fun really begins with an activation process that
can last up to 40 minutes, involving multiple steps and transfers between
the call center rep and technical support staff. Memories of past DSL
modem installation nightmares flash by and begin to pale in comparison.
This is not a recipe for successful rapid uptake of any technology product.
While U.S. operators have
worked extensively on perfecting their network speeds, reliability and
market offers, they've sorely neglected a basic requirement for 3G success
- making the "getting started" process easy. According to Iain Gillott,
iGillott Research, wireless operators spend millions of dollars each
year in device activation and provisioning processes, an unnecessarily
high cost that can be attributed to the current manual or semi-manual
activation and provisioning methods. These antiquated processes must
advance along with network enhancements if 3G is to have a reasonable
chance at early market success. Heavy data users, the early adopters
for mobile data, expect the same simple experience in usage and startup
as they would encounter in the traditional IP world.
Thankfully, as mobile networks
have advanced, so have data device activation processes.
Two
issues face carriers in device activation. The first is the pure cost.
When carriers incur upwards of $300 in marketing, device, channel and
customer service costs to get an existing subscriber started in wireless
data, when does payback and profitability begin?
Secondly, in the race for
3G success, brand reputation is vital. If the first waves of 3G adopters
spread the word that "XYZ carrier's startup process was truly a nightmare,"
all the glitzy media advertising in the world will not overcome a poor
sales and service reputation.
Thankfully, as mobile networks
have advanced, so have data device activation processes. Mobile device
activation and provisioning no longer require complicated programming,
programming channels, call center rep assistance or pre-assigning IDs
to the device - all of which drive up supply chain costs. New wireless
technology now enables highly advanced, automated mobile device activation
and provisioning, giving devices the ability to activate and provision
themselves over an existing wireless network without requiring a human
agent to be involved in the activation process. And, this advanced capability
is easily implemented, using simple, cost-effective operator control.
Simplifying the activation
and provisioning process opens up vast new sales channels for mobile
data, while removing channel costs at the same time.
Simplifying mobile data device
activation and provisioning processes removes complex manual processes
at the retail and call center level. Customers benefit from wireless
service that is available immediately, while operators benefit from
lower activation and provisioning costs and more rapid adoption of new
devices and services.
Let's look at how advanced
activation technology changes the experience of our 42-year old business
user. He now stops by his favorite big box data retailer, such as CompUSA
or Best Buy. He purchases a wireless data modem, takes it home, and
installs it. The card, using advanced activation technology, immediately
authenticates, activates and establishes a controlled mobile IP session.
A couple of keystroke answers, and the user's account is opened or updated.
Automatically, the activation process finishes. The wireless modem is
now active - without complicated programming, 800 numbers or user hassle.
This person's world of 3G data mobility begins immediately.
Wireless modems or mobile
data devices that "self-activate," bringing the purchaser immediately
on to the mobile IP networks via a simple, easy device activation and
service provisioning experience, accelerate 3G adoption. Simplifying
the activation and provisioning process opens up vast new sales channels
for mobile data, while removing channel costs at the same time.
U.S.
operators who want success in their 3G deployments must act quickly
to simplify the initial user experience for consumer and enterprise
customers.
The
activation complexity problem is not solely restricted to Internet cards.
Carriers face this same activation difficulty for the plethora of new
mobile data devices that are now being brought to market: advanced handsets,
PDAs, cameras and even MP3 players.
This issue becomes aggravated
a thousand-fold when machine-to-machine, or telemetry, markets are considered.
How does a carrier cost-effectively activate 200,000 telemetry transmitters
using burdensome and manual activation processes, without layering additional
costs upon downstream partners or customers? It's an issue that
must be resolved before true pervasive telemetry markets can unfold.
U.S. operators who want success
in their 3G deployments must act quickly to simplify the initial user
experience for consumer and enterprise customers. In doing so, they
will accelerate adoption rates, boost customer satisfaction and brand
reputation, widen sales channels, lower CPGA, and most importantly,
gain strategic market advantage over competitors that are still using
outdated activation processes.
Gail Redmond is Vice President, Marketing
for Telespree Communications.
================================
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