Voice to Media: Mobile Internet's calling, says Yankee exec

November 12, 2007

Philip Marshall, Yankee Group

BOSTON -- Will it be third time lucky for the mobile Internet?

That's the question Philip Marshall posed to an audience of die-hard mobile technology executives attending the first annual Mobile Internet World show. The vice president of enabling technologies at market researcher and show organizer Yankee Group seemed to hedge his bets even as the mobile channel moves from a voice-centric model to one that's media-centric.

"How do you drive from a narrowband environment … to one that can support broadband services?" Mr. Marshall asked.

Demand certainly exists for the mobile Internet. But questions swirl around the mobile Internet ecosystem's evolution and the economics for mobile Internet service delivery. Add to that the many mobile Internet business model scenarios and radio spectrum efficiency issues.

Mr. Marshall also highlighted the mobile device's role, particularly relating to access and backchannel operations. In fact, device adoption is key to the development of a viable mobile Internet. The Apple iPod's Web-friendliness is a case in point.

"When you introduce new technology, you introduce new functionality," Mr. Marshall said.

It seems clear, though, that the mobile Internet is on a collision course.

In the media-centric bucket are online companies such as YouTube, MySpace and iTunes. And on the traditional side players such as cable giant Comcast and Walt Disney Co., along with carriers including Verizon and enterprise firms like Microsoft and Cisco are vying for influence.

"Where is the intrinsic value in their service offering?" Mr. Marshall said. "A model is less about network connectivity, and much more about service distribution."

He preferred a business model where all the points of presence are relevant, citing mass merchandiser Wal-Mart's retail model as an example.

Two worlds seem to be emerging. The first includes best-of-breed vertical applications such as voice telephony, mobile television, messaging, IPTV and video telephony. The other comprises horizontally federated Internet services, where the service delivery environment is a browser. Amazon, Ask.com and Yahoo fall in this category.

"What about personalization, what about location, what about the state of content?" Mr. Marshall asked. "The service delivery environment beyond the browser becomes more tightly bound to the network."

Many factors affect the creation of a structured mobile Internet business model. They include investment, market and revenue, valuation, regulation, competition and the overall ecosystem, including the regulatory environment.

"If you look globally at regulation, you'll find that it varies dramatically," Mr. Marshall said. "Regulators are still grappling with regulations to put in their environment."