Friday, May 12, 2006

The World Wide Web: Going Mobile? - Week of 05/11/2006 (Analyst Views)

The World Wide Web: Going Mobile? - Week of 05/11/2006

That cell phone use is on the rise is obvious; a recent report from the Pew Internet and American Life Project, the Associated Press, and AOL shows this in detail. From the report, "For some, the cell phone has become so central to their communications needs that they lose track of the expenses associated with their phones. Some 36 percent of cell owners say that they have been shocked from time to time at the size of their monthly bills." Along with their increased usage the application of cell phones has also expanded; cell phones now interface smoothly with Microsoft Outlook and other productivity products, allow users to send text messages, and provide access to the Internet. This last feature is one that has gotten at least its fair share of press recently, much of it in response the release of a report from Ipsos Insight.

The annual Ipsos Insight report entitled the Face of the Web, has suggested that mobile phones are poised to take over the PC as the medium for accessing the Web. Brian Cruikshank, senior vice president and managing director of Ipsos Insight's Technology and Communications practice says that, "Accessing the Internet on a wireless handheld device is no longer a novelty for consumers in the major global economies. It's becoming a common, everyday occurrence for many people." Though this may be the case on a global scale, according to Forrester Research it is far from true in North America; Forrester reports that most users in North America do not use cell phones willingly or frequently for this purpose.

However, just the fact that such an action is possible, when combined with the shear number of mobile phones in circulation, has major players in both the cell phone service and online content service arenas, sometimes hand in hand, responding. Given the money to be made this is not a surprise; according to eMarketer Inc., Internet related advertising generated $5.1 billion in 2005. The $100 million cell phone advertising in the same period may only be a fraction of the total, but according to a Wall Street Journal article, "The companies contend that even though only a small number of people currently use their phones to search for information online, there is a huge potential market with twice as many cellphones in use globally as PCs." Though mobile phones are now being used more than ever to access the Web may true, Forrester does report that even in North America more people are accessing the Web via their phones, the move from being shocked by a bill to regularly using a phone to access the Web may be more of a leap than a step. What is clear is that the first steps have been taken.

AOL is one of the players trying to position itself for the mobile Web. In July of last year AOL launched mobile search services that were similar to those available on their PC oriented site. Just last month they followed this release up with a "Surf the Web" option which reportedly removes many of the challenges encountered when trying to access the Web on a mobile device. "Surf the Web" not only returns search results formatted for the mobile device, but will perform this action for most web sites. Microsoft is also making moves; they recently purchased Paris-based MotionBridge, a company that provides search services for mobile phones. According to the Wall Street Journal, MotionBridge, "specializes in software that searches within a service provider's own branded cellphone portal." Further, at their Silicon Valley Road Show this month Microsoft unveiled a new technology named "Wild Thing" which limits the number of characters users need to enter in a search when the search is conducted on a mobile device; the software inserts 'wild cards' in an effort to lessen the aggravation of users. Yahoo! and Google are also on board with mobile services; Yahoo! has partnered with Cingular Wireless and Google is working with both Vodafone and Deutsche Telekom. Even with all they are putting into it, getting users to frequent the mobile Web may not be the end-game for the online players involved; they may have other motives for providing the services. The Wall Street Journal article mentions that, "Success on cellphones could potentially translate into increased market share for Internet services accessed from PCs."

The increased use of the mobile Web may have implications beyond just the development of business plans to capitalize on it. For example, of mobile search it has been said that it will pave the way for better search across the board. The limitations encountered when using a mobile device to search, chief among them text entry and results display, require providers to improve their service; these improvements will then be incorporated into the standard product. In addition, with technologies such as AJAX allowing what were once desktop based applications to migrate to the Web, users may be able to access and operate these applications on their phones. A case in point is Microsoft's Windows Live which offers Web-based versions of many of Microsoft's office products; according to Matt Champagne, director of MSN Mobile, "Most mobile services will be on Windows Live."

The mobile Web is here, its use is increasing, the major players are working on its development, and with the amount of money to be had in the market it is unlikely to disappear. Whether it is accessed via a phone or other portable device may not be as important to note as what it suggests, true mobile convergence is well on its way and it will incorporate and change the way information is presented and the technology used to retrieve it.

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