The future of mobile Internet: service challenges and operator positioning

Mobile Internet usage is improving with the arrival of flat-rate data tariffs, phones better equipped to support browsing and rich content, and operators adopting a more open market model. These are all positive developments but the issue going forward is how the mobile Internet business model will evolve. Will it go the way of the fixed Internet and be dominated by advertising and free services, with operators reduced to providers of commoditised access? In this report we provide a guide on how to get the service and advertising revenue balance right and a view of how operator positioning will evolve as a consequence.

Table of contents

Key messages

Scope

Definitions

The foundations are in place – finally

What has changed?

From closed portal to open mobile Internet

The changing role of the operator

Evolution of the mobile Internet business model

Lessons from the fixed Internet
Will mobile Internet follow the same business model as the fixed Internet?

Operators do not have to be dumb pipes – unless they are stupid

Commodity mobile broadband ISPs?
Core B2B enabling services

Life after access: where will mobile Internet service revenue growth come from?

Communications services are core
Utility-type services have potential
Look at ways to enable m-commerce
The content service crunch
Balancing the paid-for versus advertising-supported service mix
Operator positioning and revenue growth
Orange: multi-platform TV services
Premium content will become more segmented
Not every operator will benefit from the mobile advertising land grab
The integrated web/mobile model

The rise of the D2C players

How are they shaping the mobile Internet
The big hitters and ones to watch
The integrated web/mobile model is the way forward
The mobile operator: supplier, competitor and customer

Table of figures

Figure 1 Percentage of survey samples accessing the Internet on a weekly basis
Figure 2 Ericsson Consumer Labs: mobile Internet trends data
Figure 3 Vodafone’s evolution from closed portal to mobile Internet
Figure 4 The evolution of the Internet business model
Table 1 Services that can be offered to third parties
Figure 5 The amount survey respondents were willing to pay for mobile blockbuster films
Figure 6 Survey respondents’ willingness to be exposed to advertising in return for free films
Figure 7 Balancing the service and revenue mix
Figure 8 Integrated web/mobile
Figure 9 Zed