V Feldmann becomes ubiquitously available on personal devices. It will complement, rather han substitute for. conventional Internet service However, a sensitive question that still needs to be considered concerns the ratio of technology push and market pull in the emerging mobile wireless telecommu nications and content markets. There is much uncertainty on uncertainty influences the development of innovative processes, products, and services. Uncertainty appears on two levels, about technological development in highly competitive environments and the establishment of standards 6 that might drive market acceptance and shift competition to services, as well as about con- sumer demand networks& technological development, the broadband capacity offered by 2.5G Concernin might be sufficient for services that users demand via their mobile phones and would call into question investments in 3G networks. Positioning chnologies, device operating systems, microbrowser, protocols, gateways, lan guages, and micropayment systems need to be developed and standardized for the mobile Internet. This list represents only a very small fraction of unsolved echnological problems. The choice of the device is also in the technological realm, but may be determined by the context in which the device is used and how well it fulfills the functions that customers demand 1 It is even less clear what market pull, i.e. consumer demand, will be. Little reliable data is available that deals with demand for 3G services and consumers' willing- ness to pay for them. To acquire information on the development of the mobile Internet in Europe or North America, telecom researchers are closely watching how the mobile Internet in Japan and the rapid adoption of NTT DocoMo's i-mode service develop 18 However, the diffusion of innovative products and services in media communica- tions is always particularly related to their social meaning and use. Innovative ser vices for mobile phones create different usage contexts. Communications are not restricted to the private sphere, but are performed in public spaces. The personal nature of the mobile phone is leading to new usage patterns. It also marks the articipation in certain lifestyles and peer groups. The dimension of functional images of the mobile Internet in relation to and in the context of communication and media usage patterns of existing media is relevant for the creation of usage options for consumers. Against this background, the integration of mobile Internet services in existing companies strategies as well as the evolution of new busi- nesses19 seems both very promising and risky. The key drivers of market develop ent could be personalization of services, ubiquity and immediacy of access, and possibly the reduction of transaction costs. For the specification of key drivers, especially consumers' motivations for mobile interactivity are crucial. 16 See Funk(2001b) or a comprehensive discussion of new digital media and devices see Rawolle/Hess(2000). 18 See Funk (2001a) 19 For research on the origin and evolution of new businesses see Bbide (2001). sbr54(4/2002)
becomes ubiquitously available on personal devices. It will complement, rather than substitute for, conventional Internet services. However, a sensitive question that still needs to be considered concerns the ratio of technology push and market pull in the emerging mobile wireless telecommunications and content markets. There is much uncertainty on this question, and this uncertainty influences the development of innovative processes, products, and services. Uncertainty appears on two levels, about technological development in highly competitive environments and the establishment of standards16 that might drive market acceptance and shift competition to services, as well as about consumer demand. Concerning technological development, the broadband capacity offered by 2.5G networks might be sufficient for services that users demand via their mobile phones and would call into question investments in 3G networks. Positioning technologies, device operating systems, microbrowsers, protocols, gateways, languages, and micropayment systems need to be developed and standardized for the mobile Internet. This list represents only a very small fraction of unsolved technological problems. The choice of the device is also in the technological realm, but may be determined by the context in which the device is used and how well it fulfills the functions that customers demand17. It is even less clear what market pull, i.e. consumer demand, will be. Little reliable data is available that deals with demand for 3G services and consumers’ willingness to pay for them. To acquire information on the development of the mobile Internet in Europe or North America, telecom researchers are closely watching how the mobile Internet in Japan and the rapid adoption of NTT DoCoMo’s i-mode service develop18. However, the diffusion of innovative products and services in media communications is always particularly related to their social meaning and use. Innovative services for mobile phones create different usage contexts. Communications are not restricted to the private sphere, but are performed in public spaces. The personal nature of the mobile phone is leading to new usage patterns. It also marks the participation in certain lifestyles and peer groups. The dimension of functional images of the mobile Internet in relation to and in the context of communication and media usage patterns of existing media is relevant for the creation of usage options for consumers. Against this background, the integration of mobile Internet services in existing companies strategies as well as the evolution of new businesses19 seems both very promising and risky. The key drivers of market development could be personalization of services, ubiquity and immediacy of access, and possibly the reduction of transaction costs. For the specification of key drivers, especially consumers’ motivations for mobile interactivity are crucial. V. Feldmann 356 sbr 54 (4/2002) 16 See Funk (2001b). 17 For a comprehensive discussion of new digital media and devices see Rawolle/Hess (2000). 18 See Funk (2001a). 19 For research on the origin and evolution of new businesses see Bhidé (2001)
Mobile internet 2.3 MOTIVATIONS FOR ENGAGEMENT IN MOBILE INTERACTIVITY Uses-and-gratifications research20 has identified gratification factors for cellular telephony such as sociability, relaxation or entertainment, instrumentality or acqui- sition, reassurance, and fashion and status21. From the consumers' perspective motivations for the use of mobile wireless data communications are often rounded in lifestyle criteria and may focus on communications, and convenience 22. Communications, comprising e-mail, text and multimedia mes- saging, and mobile instant messaging, has the potential to become the killer application", similar to its function for the Internet. Forecasts for the use of mobile interactivity underline the growing popularity of entertainment services such as multiplayer games or music downloads 23. Convenience is also a promising factor Mobile interactivity offers instant gratification. If conducting certain transactions via mobile devices is more convenient, e.g., due to the integration of barcode scanning technology, then mobile commerce could become a key driver for using mobile interactivity. The necessary precondition is mobile usability and ease of mobile Internet navigation The motivations for media companies to expand their services onto new digital platforms and to engage in mobile interactivity are brand and customer relation- ship management and the creation of multiple revenue streams. Integrating mobile wireless platforms into a digital multiple-platform strategy will build on existing brands' identity and will extend the reach of the digital media brands into markets without significant PC penetration. Thus, a mobile strategy will not only deepen the relationship with existing customers, it will also open the potential to acquire new customers. Mobile revenue streams can have multiple sources, subscription from customers, advertising revenues from cross-promotion, and revenue-sharing agreements with network operators Mobile network operators have past, focused primari speed at which they can enlarge their customer base. They must now direct their focus to profitability and rethink their strategic approaches. To define a unique value proposition for their customers, they turn to content providers who in return gain bargaining power. Telecommunication companies are dependent oviders since they do not have the core competency to create the appealing content that may generate revenue. Media companies are dependent on the new mobile distribution platform and the customer contacts and billing relationship of wireless operators. Since there is the potential for a shift of power from the net work operator to the content provider, the next section will discuss the emerging co-opetition 24 between the media and telecommunication companies 20 The uses-and-gratifications-approach is concerned to identify how people use the media to gratif their needs, in contrast to the previous media effect paradigm that asked what media do to the 21 See Leung/wei (2000) 22 See Nobria/leestma(2001) 3 See Jupiter MMXI(2002): Durlacher Researcb(2001), p. 96 24 See Nalebuff/Brandenburger(1996)
2.3 MOTIVATIONS FOR ENGAGEMENT IN MOBILE INTERACTIVITY Uses-and-gratifications research20 has identified gratification factors for cellular telephony such as sociability, relaxation or entertainment, instrumentality or acquisition, reassurance, and fashion and status21. From the consumers’ perspective, motivations for the use of mobile wireless data communications are often grounded in lifestyle criteria and may focus on communications, entertainment, and convenience22. Communications, comprising e-mail, text and multimedia messaging, and mobile instant messaging, has the potential to become the “killer application”, similar to its function for the Internet. Forecasts for the use of mobile interactivity underline the growing popularity of entertainment services such as multiplayer games or music downloads 23. Convenience is also a promising factor. Mobile interactivity offers instant gratification. If conducting certain transactions via mobile devices is more convenient, e.g., due to the integration of barcode scanning technology, then mobile commerce could become a key driver for using mobile interactivity. The necessary precondition is mobile usability and ease of mobile Internet navigation. The motivations for media companies to expand their services onto new digital platforms and to engage in mobile interactivity are brand and customer relationship management and the creation of multiple revenue streams. Integrating mobile wireless platforms into a digital multiple-platform strategy will build on existing brands’ identity and will extend the reach of the digital media brands into markets without significant PC penetration. Thus, a mobile strategy will not only deepen the relationship with existing customers, it will also open the potential to acquire new customers. Mobile revenue streams can have multiple sources, subscription from customers, advertising revenues from cross-promotion, and revenue-sharing agreements with network operators. Mobile network operators have, in the past, focused primarily on growth and the speed at which they can enlarge their customer base. They must now direct their focus to profitability and rethink their strategic approaches. To define a unique value proposition for their customers, they turn to content providers who in return gain bargaining power. Telecommunication companies are dependent on content providers since they do not have the core competency to create the appealing content that may generate revenue. Media companies are dependent on the new mobile distribution platform and the customer contacts and billing relationship of wireless operators. Since there is the potential for a shift of power from the network operator to the content provider, the next section will discuss the emerging co-opetition24 between the media and telecommunication companies. Mobile Internet sbr 54 (4/2002) 357 20 The uses-and-gratifications-approach is concerned to identify how people use the media to gratify their needs, in contrast to the previous media effect paradigm that asked what media do to the people. 21 See Leung/Wei (2000). 22 See Nohria/Leestma (2001). 23 See Jupiter MMXI (2002); Durlacher Research (2001), p. 96. 24 See Nalebuff/Brandenburger (1996)