Posted: 12/14/10 by Mobile Future Team
We’ve already discussed the role mobile commerce played in early holiday shopping. Today, eBay released groundbreaking numbers that made yesterday the biggest mobile shopping day ever. eBay’s mobile gross merchandise value, the total sales dollar value for merchandise sold through eBay, rose to $5 million in the US and $13 million globally (that’s a 127% and 165% increase respectively) according to the article.
Posted: 12/10/10 by Mobile Future Team
It’s official: The mobile revolution has grabbed another national pastime.
Beginning with Black Friday and carrying into the season of holiday shopping sprees, Americans’ rapid adoption of mobile shopping is pretty remarkable. First, look at a few numbers:
On Thanksgiving Day, shopping site Ruelala.com reported that about 19 percent of sales came from mobile users, up tenfold from a year ago.
Mobile sales from online giant eBay.com nearly doubled from 2009 levels on Black Friday. The company’s Cyber Monday statistics were equally as impressive: Mobile sales increased 146% from the previous year. (And yes, it’s a trend found across the United States.)
Finally, over at BlueNile.com, one customer used his mobile phone to make a $250,000 diamond purchase. (Impressive as it is, it’s still not the coolest item purchased with a smartphone this year.)
In short, the predictions about Americans’ rapid adoption of mobile shopping apps are coming true. On Cyber Monday, National Retail Federation estimated that more than 7 million people used a mobile device for shopping, nearly double the estimated 4 million mobile shoppers on the same day in 2009.
What’s driving this rapid evolution? First, costs are declining significantly. From late 2008 to this past fall, the average handset subsidy increased by almost 50 percent, according to a recent Goldman Sachs report. This has put smartphones within reach of tens of millions of Americans who once saw them as too expensive.
It also puts America on a trajectory where, by 2012, smartphone sales will exceed PC and notebook sales combined.
Service costs are dropping too. A General Accountability Office (GAO) report in August concluded that from 1999 to 2008, average wireless service prices had declined each year. It also reported that average prices in 2009 were half the prices in 1999.
Second, there is the obvious growth of mobile retail apps. Taking BlueNile.com as an example, Forbes reports that mobile traffic on Thanksgiving increased 1600 percent over last year. One key difference: This year, Blue Nile had a mobile app. Among major retailers, we’ve reached the point where mobile apps are only noticed by their absence. Meanwhile, many smaller retailers were quicker to market their own mobile apps and reaped the benefits, leapfrogging over larger, less nimble competitors.
Finally, there is the rapid growth of several truly remarkable mobile apps: ones that make instant product and price comparisons like PriceGrabber, ShopSavvy and eBay’s Red Laser.
Just scan a barcode when you’re at the store and the app immediately scours the web looking for comparable products and prices. It’s the perfect companion when you’re considering that impulse “all sales final” purchase and want to make sure you’re getting a good deal.
This time next year, you may be paying for your holiday gifts just by swiping your smartphone in front of a small scanner. And with industry trends continually pointing to decreased service costs and mass proliferation of mobile apps, stay tuned: The mobile revolution in retail is just beginning.
Posted: 11/16/10 by Mobile Future Team
By 2015, there will be more mobile Web users than desktop users. Moreover, according to Nielsen, the average smartphone user has downloaded 37 apps.
These two facts add up to a remarkable new business opportunity for companies that are smart enough to seize the advantage, writes Steve McKee, author of When Growth Stalls: How It Happens, Why You're Stuck, and What to Do About It. In the current Bloomberg BusinessWeek, McKee writes:
Unlike the early days of the Internet, affordability is less of an issue with mobile media. Inventiveness is what's required, but in order to be inventive you must first gain an understanding of how the technology is already impacting your industry.
He goes on to outline the economic opportunity of mobile. For example, fashion retailer Steve Madden reports that mobile traffic is now more than 10 percent of the company's total Internet traffic, a 250 percent increase from the previous six months. McKee’s comments also echo what The Wall Street Journal’s Paul Vigna and John Shipman reported recently about the torrid pace of job growth in the mobile economy, demonstrating once again that in an otherwise difficult economic climate, mobile continues to be one of the brightest lights for jobs and investment.
Posted: 11/15/10 by Mobile Future Team
Today, NTIA released two reports – Plan and Timetable to Make Available 500 Megahertz of Spectrum for Wireless Broadband and An Assessment of the Near-Term Viability of Accommodating Wireless Broadband Systems – identifying federal spectrum in both the near future and long-term that could be used to meet President Obama’s 10-year goal of making available 500 MHz of new spectrum for wireless broadband. As the looming spectrum crunch grows closer, additional spectrum will allow innovation to continue and technologies in industries ranging from healthcare to education to grow.
In conjunction with the release of the highly anticipated spectrum reports, Commerce Secretary Gary Locke and NTIA President Larry Strickling jointly penned an opinion piece in today’s WSJ focusing on the Administration’s goal of doubling the amount of commercial spectrum available over the next 10 years and calling for legislative action to encourage voluntary incentive auctions by private-sector spectrum holders.
From the article:
"The president's spectrum initiative not only presents a unique opportunity to catalyze innovation and investment, but is part of our overall strategy for sustainable economic growth and national competitiveness. Today's actions are important steps towards more efficient and effective government use of spectrum."
Responding to NTIA’s reports, Mobile Future Chairman Jonathan Spalter applauded the efforts of Locke, Strickling, and the organization at large and called for continued action to ensure we can sustain the frenetic pace of wireless innovation, stating:
“Mobile technology holds tremendous potential to connect consumers, create new jobs and stimulate our economy…While these recommendations are an important first step, much more work will need to be done to meet the looming spectrum crunch. The innovation, investment and competition that define the vibrant and ever-expanding wireless sector are absolutely dependent on access to significantly more spectrum.”
To read the full statement, click here.
Posted: 11/04/10 by Jonathan Spalter
With the pundits dissecting the meaning of the mid-term elections and the implications of the D.C. power shift, the conventional wisdom appears to be that little can or will get done in Washington. As the argument goes, Republicans now control the House of Representatives, so it is largely unthinkable that the two parties could work together on major issues. After all, another high-stakes election is "just around the corner" in 2012.
When folks speak up for bipartisanship, they tend to talk with sweeping historic references. The Civil Rights Act of 1964. The 'third-way' efforts of President Clinton. But a steady, ongoing precedent for meaningful cooperation exists right now in U.S. wireless policy.
Through periods of both Republican and Democratic leadership in Washington, U.S. mobile innovation has been carefully nurtured through policies that allow consumer choices and market competition to shape and direct its progress. This approach was largely rooted in Congress' bipartisan decision in 1993 to embrace a pro-innovation framework that favored competition over regulation.
How's it working out? The U.S. now has the most competitive mobile marketplace on earth--a fact that's documented in a new report from the Mobile Future coalition, entitled "Mobile Momentum: How Consumer-Driven Competition Shapes & Defines the Modern U.S. Wireless Landscape."
As the report documents, diverse consumer choices define every corner of the mobile marketplace. Two-thirds of Americans can choose from among five or more wireless providers and a broad array of service choices — from family plans to flat monthly "all in" voice, data and texting plans. Among the latest examples: Wal-Mart, in partnership with T-Mobile, is now offering $45 per month unlimited voice and texting — with no contract required. And, AT&T is advertising data plan add-ons for as little as $15 a month.
As a result of this competition, our nation is home to the world's lowest per-minute voice prices, the largest 3G customer base and is a leader in 4G network deployment. We enjoy the most competitive device and application markets, with more than 65 smartphones introduced to U.S. consumers in 2008 and 2009 alone and more than 300,000 apps available from at least 10 stores.
According to the FCC, wireless customer satisfaction rates stand at 92%. And, Americans are adopting wireless Internet access at a rate of 2:1 today over traditional wired broadband. Yet in its last competition report, the FCC declined to observe that the wireless marketplace was competitive, stating that it was holding back for "superior outcomes." While it's important that we set a high bar and there certainly are areas for improvement, it's equally imperative that we recognize our success to date.
It is a foundation FCC Chairman Julius Genachowski can build from, particularly on spectrum policy, to ensure wireless remains a catalyst for progress throughout our society.
To his credit, Chairman Genachowski has challenged all Americans — innovators, policy makers, and consumers — to work together in building a sustainable and comprehensive approach to managing America's spectrum in the years to come. His efforts, along with key initiatives by Larry Strickling at NTIA to identify and free up more spectrum, have been both visionary and timely. By working in a bipartisan way with the new Congress, as well as in a cooperative way with all stakeholders in the American mobile ecosystem, the FCC under Chairman Genachowski can make great strides in the coming months in harnessing innovation in policy, in our capital markets, and in industry, and set the stage for even more competition and innovation in our mobile and wireless sector.
And, thanks to robust competition, hundreds of billions of dollars in private investment offer the promise of driving next-generation infrastructure and helping to ensure the U.S. remains a global leader in mobile innovation. Since 2006, an average of $20 billion annually in private capital has flowed into U.S. mobile infrastructure. In fact, cumulative capital investment rose 8% from June 2009 to June 2010 — despite the current recession. This is essential progress for what President Obama calls "the next transformation in information technology."
The reality is that wireless has thrived because Washington, through the ebbs and flows of political fortunes, has made a purposeful decision to let consumers and innovators take the lead. Just as we need political leaders who reach across the aisle, so do we need mobile innovation to continue to thrive and evolve in robust and surprising ways — taking paths that are hard for static regulatory regimes to predict, let alone encourage.
As our society and economy prepare for the next wave of innovation, we need to acknowledge the path that got us this far: rapid, awe-inspiring innovation from a myriad of sources and profound private-sector risk-taking — all fueled by a bipartisan policy framework that showed rare restraint and clear deference to consumer choices in a competitive marketplace. There are many lessons to be learned from Tuesday. One is that while elections are inevitably partisan, sound policy that stands the test of time often is not.
This article was originally published on Huffington Post.
Posted: 07/09/10 by Jonathan Spalter
Consumer confidence remains low in today’s tough economy, but the Pew Internet and American Life Project’s new Mobile Access in 2010 report illustrates a contrarian streak among U.S. consumers when it comes to the mobile marketplace. Across ages and demographics, Americans are showing a remarkable bullishness when it comes to the value and innovation they see in their wireless purchases. In fact, usage of connected devices and applications continues to grow at an unabated and staggering pace.
Over the past year, the number of Americans connecting wirelessly to the Internet is up 8 percentage points, with six out of 10 Americans now using their smartphone or laptop to access the Internet. In fact, more Americans now use their mobile device to connect to the Internet (38%) than play a game on their device (34%). And, it’s not just young millennials gravitating to the nexus of wireless and the Internet. Their parents—folks in the 30 to 49 year old age bracket—are now leading the growth.
African Americans and Latinos also continue to lead in mobile connectivity. Two-thirds of both communities are wireless Internet users. And, African Americans and Latinos continue to outpace whites when it comes to cell phone ownership (87% versus 80%).
These insights illuminate the wireless debate at a pivotal moment, coming on the heels of President Obama’s Executive Order announcing his Administration’s intention to increase the amount of spectrum available to meet consumers’ fast-growing mobile needs. Pew’s methodical documentation of a steep adoption and usage growth trajectory—cutting broadly across the U.S. population—powerfully illustrates the profound importance of these spectrum allocation efforts and the equally essential need to safeguard policies that encourage the billions of dollars in investment needed to get this spectrum into use across the country. This process can take six to 10 years to complete, from the announcement of auctions to the deployment of actual networks, so we need to get started now.
Unfortunately as temperatures rise in Washington (both literally and metaphorically), it seems no debate is safe from the partisan pull of election-year politics. Even U.S. wireless policy, which has enjoyed bipartisan support for a light-tough regulatory framework through both Republican and Democratic administrations, is getting dragged into the pro-regulation and heated rhetorical fray.
It’s hard to justify given the frenetic pace of competition across the mobile landscape. Verizon and Google recently have gone public with their ambitions to challenge the AT&T/Apple iPad alliance. HP, Dell and others also are in hot pursuit. Cox is becoming the first U.S. cable company to directly offer wireless services. Regional players like Leap Wireless and MetroPCS are thriving. And, the Palm Pre was recently offered to consumers for the jaw-dropping price of a single cent. Consumer choices of service providers, plans, devices and applications abound.
All of this, of course, only further fuels the leaps and bounds we’re now seeing in mobile Internet adoption and usage. The arrival of dispassionate, data-driven reports like this Pew contribution are essential to constructive policy conversation that benefit consumers and innovators alike.
The data also clearly illustrates just how deeply mobile connectivity is working its way into our lives, and just how enthusiastically consumers are responding to the profound innovation it is making possible.
As the Federal Communications Commission takes a closer look at wireless, it’s important that it consider how consumers are actually embracing mobile connectivity in their diverse lives. And, it is imperative that the FCC acknowledge that all of this progress we celebrate now has taken place in—and been made possible in no small part by—the current light-touch regulatory framework.
The proof is in the numbers. As the mercury rises in the nation’s capital, it’s important that cooler heads prevail when it comes to the flexibility and dynamism that have truly connected the nation to the opportunities and innovation made possible by the mobile Internet.
This article was orginially published on Huffington Post.
Tags: Apple, Applications, AT&T, Competition, Consumer Benefits, Economy, Wireless Investment, FCC, Hispanics, Huffington Post, Mobile Applications, Mobile Future, Mobile Future Board, Jonathan Spalter, Pew Research Center, Smartphone, Spectrum, Verizon, White House, President Obama, Wireless Innovation
Posted: 06/28/10 by Mobile Future Team
Today, President Obama signed a presidential memorandum that aims to make available for auction some 500 megahertz of spectrum that is now controlled by the federal government and private companies.
Responding to this measure, Mobile Future Chairman Jonathan Spalter issued the following statement:
“We appreciate President Obama’s leadership and foresight in paving the way to efficiently and responsibly make more spectrum available to keep pace with wireless innovation and consumer demand. Today’s presidential memorandum sets the course for the next wave of mobile opportunities that will lead to economic growth and continued job creation. This announcement is a step in the right direction and it’s critical that the Obama Administration remains focused on spurring growth rather than imposing restrictive regulations that could paralyze the economic recovery, job growth and investment we see in today’s thriving wireless sector.”
Posted: 05/26/10 by Mobile Future Team
It’s National Small Business Week and few industries can match wireless in creating a favorable opportunity for small business growth. In fact, if mobile app growth during the past two years shows anything, it’s that mobile OS platforms are an ideal launching pad for small businesses to compete with big-name companies.
So a tip of the hat goes to all the entrepreneurs across the country who have made the mobile web the fastest-growing medium in history. While there are too many to mention, here are a few we’ve been delighted to host at recent Mobile Future events:
• LookTel pairs “artificial vision” software with your smartphone to help the 11+ million Americans who are blind or visually impaired.
• Based in Bellevue, Lagotek is a mobile software company that’s making great progress harnessing mobile technology to make our homes and lifestyles more energy efficient.
• Vocel in San Diego is one of the companies on the leading edge of adapting wireless to improving healthcare. The company makes the “Pill Phone”, a mobile app that allows people to schedule audio and visual alerts reminding them to take their prescriptions. You can also cross-tab alerts to include information on dosages, side effect, and interactions with other drugs.
Posted: 05/20/10 by Molly Kocour
Today, during its monthly meeting, the Federal Communications Commission released its annual Mobile Wireless Competition Report, which analyzes the state of competition in the mobile industry and, for the first time, also includes information about the broader mobile ecosystem. In contrast to previous versions of the study, the FCC officials who prepare the Mobile Wireless Competition Report did not issue a judgment on the wireless industry’s effective competitiveness, but instead left it open for the Commissioners’ interpretation.
While the Commissioners’ opinion varied, Mobile Future Chairman Jonathan Spalter issued the following statement in response to the assessment of competition in the wireless marketplace.
“The innovation that defines today’s wireless sector is unprecedented. The bipartisan, light-touch regulatory approach of the past two decades has fostered competition that has resulted in the world’s lowest per-minute voice wireless prices, largest 3G customer base and most varied and innovative applications and device markets.
“We applaud the Commission for taking a broader look at the wireless sector but it’s hard to understand given all the facts and data in the record why it chose not to conclude that wireless is competitive. American wireless is an extremely vibrant sector that is helping to drive economic recovery, job growth and investment. Going forward, we urge the FCC to recognize this thriving sector while maintaining a policy climate that continues to encourage competition driven above all by consumer demand and the vision of innovators.”
You can read more about competition in the wireless marketplace here.
Posted: 05/18/10 by Jonathan Spalter
"High speed Internet empowers people with disabilities to become more independent. [It] can remove barriers that keep people with disabilities from participating in everyday activities such as employment, education, civic responsibilities and social connection."
From a joint statement by: The American Association of People with Disabilities and The Communications Workers of America
For America's 54 million people with disabilities, two important events happen this summer. First, there's Memorial Day, when disabled veterans will proudly lead ceremonies and officials will emphasize the need to help those injured in conflict.
Second, July 26th is the 20th anniversary of the landmark Americans with Disabilities Act. The ADA was a long time in coming and is probably the single most empowering law during the past generation. But while the ADA has been instrumental in providing legal help for Americans with disabilities, something else is doing an important job in improving basic living standards.
It's your mobile phone.
That's the conclusion of a new research paper that Mobile Future issued today. For all the talk about texting, streaming video, gaming and other apps, one of the most heartening mobile developments involve affordable, life-changing improvements for those with disabilities. The FCC also recognizes this development and hosted a workshop to explore ways in which new technologies can offer opportunities to meet the communications access needs of people with disabilities.
Take the hearing impaired. In 2006, according to the CDC, 37 million adults in the United States had trouble hearing (ranging from a little trouble to being deaf). That's an increase of more than five million since 2000.
As described in Mobile Future's paper, a new wireless system developed at the Georgia Tech Research Institute offers those with hearing difficulties the ability to caption events in real-time. The device translates spoken words into text and displays it on a screen.
Meanwhile, according to Scientific American, researchers at the University of Washington (Seattle) are developing software that lets mobile phone users communicate through sign language and real-time video instead of being limited to text messaging.
But what about those who can't see? Some of the same technology that lets you save money while shopping is also turning the phone into an electronic seeing-eye companion.
As we discovered, mobile apps can use smartphone cameras to scan labels and announce the contents of grocery items, their nutrition labels, and even pill bottles. When merged with GPS technology, these apps can assist the visually impaired by giving them step-by-step directions through their smartphone.
Know someone with a speaking disability? An estimated 6 to 8 million Americans have this challenge. Many, if not most, can now take advantage of low- or no-cost communications apps on their cell phone. There's voice output software that conveys typed messages; downloadable text-to-speech software can be an effective, less-costly alternative to speech devices covered by private insurance and Medicare.
Also, some experts say that children with speech impairments often prefer using "mainstream" technology which is less stigmatizing.
Mobile Future's research paper is meant to be both an assessment and a celebration of the key innovations that are helping those with disabilities. It is also a "look-ahead" at the next phase wireless technologies in the pipeline which promise even more transformational impacts for the one in five Americans who live with disabilities.
This column was originally posted on Huffington Post on May 13, 2010.
Tags: Camera Phone, Congress, Disability community, Economy, Education, FCC, GPS, Huffington Post, Legislation, Mobile Broadband, Mobile Future, Mobile Future Board, Jonathan Spalter, Mobile Healthcare, Smartphone, Wireless Broadband, Wireless Innovation, National, Mobile Ability, Mobile Future Publication
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Tags: Consumer Awareness, Consumer Benefits, Economy, Mobile Applications, m-commerce, Mobile Phone