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Mobile Breakfast Series Recap – Atlanta – Connected Devices, Cloud, and Consumer June 24, 2012

Posted by chetan in : 3G, 4G, AORTA, ARPU, Applications, Connected Devices, European Wireless Market, Mobile Advertising, Mobile Applications, Mobile Breakfast Series, Mobile Cloud Computing, Mobile Commerce, Mobile Content, Mobile Devices, Mobile Ecosystem, Mobile Future Forward, US Wireless Market, Wireless Value Chain, Worldwide Wireless Market , 2 comments

We started doing Mobile Breakfast Series in Seattle back in 2009 and after hosting10 straight events, it was time to expand the wings and explore other cities. The first stop in this journey was Atlanta and we worked closely with our partners at “Wireless Technology Forum” to make it a successful event last friday. I also had the good fortune of participating in WTF’s event the night before. Both events focused on Connected Devices and their impact on the consumer, the ecosystem and the value-chains thus making it a “connected week” in Atlanta.







As I mentioned, the night before the event, I had the opportunity to present and moderate a panel on Connected Devices with Glenn Lurie, President of Emerging Enterprises at AT&T and Jeff Smith, CTO at Numerex. Both are movers and shakers in the space and it was such a pleasure meeting with many WTF members and interacting with the top-notch panelists. The event was recorded and is available on WTF’s Youtube Channel.

We hosted the Atlanta Mobile Breakfast Series Event in Atlanta at the Commerce Club of Atlanta which has beautiful views of the Atlanta area.

There is an old Chinese saying, “When the wind of change blows, some build walls others build windmills.” Our industry is going through tremendous change; it won’t be an exaggeration if I say that the tectonic plates are moving and moving fast. The motion is being forced both by the economic conditions but also the technology and business progress. I have been around the industry long enough but it still amazes me – the stuff that’s in the pipeline and how quickly consumers absorb it.

The topic of our discussion was Connected Devices, the Cloud, and the Consumer. With connected devices, I am referring to the broad availability of devices that are connected to data networks – so they include smartphones, tablets, connected auto but also wellness devices like fitbit, energy meters, dog collars, medical devices, etc. as of last year, the subscription penetration was at 6B, next year, we will have more connections than people on this planet. In another 5-7 years, we might touch 20 Billion sensors on the planet. So you can see the growth is going to be astronomical.

Another phenomenon is that of cloud. If a startup mentions Cloud in their presentation to a VC, the valuation doubles, you say mobile, and it quadruples. I don’t know how many of you are a fan of Mark Weisier, the Xerox Parc researcher who pioneered what became “always on, always connected” tagline of pervasive computing. It was more than 20 years ago, we finally are seeing that with the help of broadband networks, amazing devices, and open business models, information is truly available at the fingertips.

The third leg of our discussion was the consumer – their appetite for new and the latest is creating this tremendous opportunity that is shaping their behavior and expectations.

We had an awesome panel to discuss things in detail. First I discussed the topic with David Christopher, Chief Marketing Officer at AT&T Mobility. As most of you might be aware, AT&T is leading not only the US but the globe in their efforts to bring connected solutions to the market. I work around the world with top operators, and I can tell you there is no exciting place in mobile right now than right here in the US of A. US is leading in innovation, technology, and business model. We had lost touch after 1G and US truly teaching rest of the world how to do 4G right. David has a terrific background – a product and operationally driven CMO at one of the world’s biggest mobile operator and it was a delight to have him on the panel.

I have known both Biju Nair and Louis Gump for sometime – several decades of mobile expertise. Louis is with CNN, has been running their mobile efforts which are top-notch. He is a recognized leader in the mobile advertising space and given that CNN’s properties span across multiple screens, he has really great insights as to how consumers behave across n-screens.

Biju is a hard core technologist, has been working at solutions that make Louis’ stuff work across networks and devices. Many of you might not know but Synchronoss where Biju is the Chief Strategy Officer and Products EVP, powers online activation at AT&T. If you bought the iPhone over the last few years at AT&T, there is a good chance your order was processed by Synchronoss.

Highlights from the discussion below:

The team at Chetan Sharma Consulting really enjoyed taking the Breakfast Series to Atlanta. My thanks to the terrific team at WTF for their support and to the Atlanta Mobile Community for making the event so successful. Finally, the event wouldn’t have been possible without the support of our series partner – Synchronoss.

As you might be aware, our fall mobile executive summit – Mobile Future Forward is going to be on Sept 10th. Registration is open. We are likely to sell out so grab your tickets early.

Next Stop – London for our first venture across the pond. On June 29th, we host the discussion on Operator/OTT – The way forward with Telefonica, Orange, Rebtel, and Horizons Ventures. Read Frank Meehan’s pre-event interview about the topic here.

Operators and OTT - The Way Forward - London

Operator traditional revenue streams are under threat esp. voice and messaging. Access margins will continue to stay under pressure. OTT players are coming in fast and furious and it is not just the big ones like Google but also players like Whatsapp, Voxer, Viber and others. How do operators play in the new landscape – lessen the decline of their traditional revenues while investing in new areas that improve their overall margins and revenues. Do they play the role of an enabler, a utility player, or become the OTT player themselves? In a software-driven world, how do they stay nimble? On the flip side, what are some things that operators can provide to the OTT players that make them successful, take them to the market quickly and maintain a long-term healthy and mutually-beneficial partnership? Operators still generate 70% of the global mobile industry revenues, so they are an important part of the chain but how do they ensure they have an equally relevant share in the profits. The panel will discuss how operators and OTT players think about the challenges and the opportunities, the competition and the coopetition.

Mobile Future Forward Book - Buying a Mobile Device in 2014 by Frank Meehan April 2, 2012

Posted by chetan in : AORTA, Frank Meehan, Mobile Devices, Strategy, US Wireless Market, Wireless Value Chain, Worldwide Wireless Market , add a comment

As regular readers and participants of our annual mobile thought-leadership summit – Mobile Future Forward, know that we publish a book that contains essays from thought-leaders on the future of mobile from around the world. For the 2011 edition, we had the good fortune of getting a contribution from Frank Meehan who was then the CEO of INQMobile.

Frank has been behind some of the initial disruptions in the mobile space such as tight integration of Skype when he was with 3 UK much before than it became fashionable to do so. Similarly, his team launched the first Facebook Phone, the first Twitter Phone and proved that a tight integration of the OTT apps makes all the difference. So, I was delighted for him to pen down a piece on “Buying a Mobile Device in 2014” for he has the insights, the experience and the sincerity to tell it as he sees it. I am excited to make this piece available to our readers.

Frank is now with venture capital firm Horizons Ventures (owned by Hong Kong business magnate Li Ka-shing, whose Hutchison Whampoa is the parent company of INQ), Frank continues to be actively involved in some of the most innovative companies that are disrupting the status quo of telecoms.

Thank You Frank.





Buying a Mobile Device in 2014 by Frank Meehan


From its inception the mobile handset has been an unusual consumer device. It became an extremely coveted product that nonetheless was always way behind the fixed world in terms of its capabilities. Hardware was often very design driven, with vendors playing around with cameras and form factor more than the technical capabilities of the handsets. But it was incredibly convenient and desired by all, so the mobile industry coasted along on a relatively closed model that worked for all concerned.

Of course, in 2007 Steve Jobs looked as this cosy situation between handset manufacturers and operators, which in effect did not deliver anything of earth shattering innovation to the customer, decided this status quo was ripe for disruption, and then proceeded to rip up and reshape the industry in a very effective and efficient manner.

So now in 2011, the landscape has altered dramatically, in a way that has left the big vendors of the 2000’s fighting to stay relevant. Over the next couple of years, the hardware "arms race" will accelerate to the point where only a few can really stand the pace at the top - with Apple and Samsung leading the way and everyone else back in second place. Businesses that were set up around specific mobile models and software suddenly have found that mobile really is becoming blended into fixed and that the traditional ways of differentiation are rapidly disappearing.

Mobile devices really are becoming just like "PC’s" in that the customer is becoming more savvy about hardware specifications, and less "brand loyal" with the exception of Apple. In fact looking forward 2-3 years, there will be little to differentiate mobile versus the traditional definition of fixed.

Everything essentially becomes a screen. Whether it is a desktop, laptop, tablet or handset.

These screens will be incredibly high powered. In 2012 we already have quad core chipsets coming. That is an incredible amount of computing power, yet the user interface on mobiles does not take advantage of it. Software is behind hardware now, except for 3D games, there is little on a handset that takes advantage of the processors.

So the focus now will be developing software to match this rapid processor jump. Already with Windows 8 we’re starting to see the first natural user interfaces that were first envisioned back in the film Minority. This is the start of the next big jump in a user experience, where the consumer naturally just shifts content around and will only get faster, more visually striking and more useful.

When asked to think about any future vision or experience, I try to articulate the answer in terms of how a customer will actually be driven to purchase that product at the point in time, which in this article is set at 2014.

The mobile device buying experience for a customer in 2014

A customer considering buying a mobile device, in 2014 will have an incredibly wide range of choices about where to buy and what to buy, with four main areas of choice:

1. The ecosystem. In 2014 there will still be 3 major OS ecosystems to buy into, which help connect all their devices, from home to car to work. Those will be from Google, Apple and Microsoft. Everything else will have too small a market share to be significant.

The ecosystems are not mutually exclusive, since the key companies have long developed cross platform versions of their products, and HTML5 has largely replaced vendor controlled application stores. But each customer will have the majority of their devices on a certain ecosystem. The mobile device market will be quite similar to the PC market today. Apple will command a premium; everyone else will fight over tight margins, which are likely supplemented with software and advertising revenues by the smart vendors. The customer will be quite aware of where their media is stored, which system delivers it best and how easy it is to use. In that respect, Apple will still be the clear leader.

2. The hardware. The customer buys primarily on specifications, just like they do with a PC, laptop or TV in 2011. By 2014 the average customer is very tech savvy at the tech inside, such as screen capabilities, processors, memory, etc. They have little loyalty, but if their current vendor has a new device which is great on price, spec and design than they will naturally like to stay with that vendor. However, if someone else has better technology at the right price, then they will switch.

Buying mobile devices in 2014 is like the PC or TV buying experience of today. By 2014, the high margins enjoyed by non Apple handset vendors will disappear as the tech spec wars drive customers to buy only the latest and best specifications, which commoditizes the devices . Since everyone else will be running either Android/Chrome or Windows, the device itself is just a spec, with some nice design being the main differentiation between devices of similar specification. Of course, there will always be one vendor who brings out a technical marvel, be that wraparound screens, flexible screen etc, but within 6-12 months everyone has caught up and it’s back on spec again. Just like the TV business.

Devices have become commoditized, and the inevitable point in the industry where a device is just more or less a screen has been reached. Whether it is TV, Laptop, tablet or handset, everything is about the screen, and due to their superior technology in this area, the leader in 2014 is likely Samsung. Naturally matched by Apple with it’s superior user experience, design and hardware.

Also, Apple and Samsung are the only two companies in 2014 who can bring out truly ground breaking technology fast enough, sexy enough and most importantly to the widest distribution. Together they control around 40-50% of all devices, with low cost vendors taking up most of the rest - similar to the TV market today. There are some expensive niche players, but the volume is via Samsung and Apple. However, disruptors are at play, more of that later.

Essentially handset vendors have found themselves having to be extremely efficient distribution machines with high hardware R&D costs. Devices last no more than 6 months before being replaced in retail, and customers differentiate very strongly between hardware and software brands.

3. Retail.

The customer will be buying far more mobile devices online than they do today, driving overall cost of ownership down. As devices have become more commoditized, people buy devices online just like they buy laptops, TVs and tablets.  Although they will go to a major outlet to see, use and browse the handset, their buying choices are much greater.

The new world has also thrown up big new mobile brands, which are built around a strong online presence, wrapping up software and hardware in low cost devices sold directly to consumers. These brands have a completely new connection with the consumer, who sees them as delivering considerable value, plus some will be able to stand out with great software as well. By 2014, the web has really revolutionized mobile retail as well.

4. Subscriptions and payments

By 2014, consolidation around operators in cable, fixed and mobile, means that the biggest just got bigger and are now dominating home, mobile and office access. Which has led to devices being less subsidized as operators look to bring cash flows forward. Also the key ecosystem players are spending considerable amounts to subsidize subscriptions and devices which have also improved operator cash flows. Operators in most countries have also decided that their considerable retail estates were not an efficient use of cash and have consolidated their shops, concentrating instead on internet sales, especially as devices have become much easier to sell online.

Operators have diverted cash into developing applications, services and online payment mechanisms which deliver greater margins combined with access subscriptions than previous times.

This means that consumers likely get a free hub from their operator which delivers access, services and media to multiple devices. But the devices themselves are mostly paid for by the subscriber, even handsets. Consumers also have multiple devices leading to less desire from operators to subsidize, instead their cash has been diverted to subsidizing the big media players such as Spotify, Netflix, YouTube, Xbox Live and Hulu to entice subscribers, which will make the device prices far more transparent to consumers.

In short, handheld devices may be technological marvels, but by 2014, they will also have become just like any other consumer device and the "mobile industry" has become part of a much broader device industry.