The Emergence of Mobile
May 17, 2010
Mobile Internet access is increasing at an alarming rate. More than 100 million of the 400 million Facebook users now interact with their Facebook pages using a mobile device. Mary Meeker (Morgan Stanley’s Managing Director of their Global Technology Team) is predicting that in the next five years, “more users will connect to the Internet over mobile devices than desktop PC’s.”* Meeker says that adoption rates of mobile technology are 11 times greater than adotpion rates of AOL and many times faster than adoption rates of Netscape back in the early 1990s. The Facebook stats show that social networking fits the mobile platform more naturally than a desktop PC does. Social networking really comes into it’s own when coupled with a mobile device as it allows people to remain connected 24/7.
But there are still two large barriers to large scale uptake of mobile Internet from the masses – the price of Internet access and the cost of a smartphone. For New Zealand customers, there has recently been some good news with respect to these two barriers:
- Internet Access Costs to reduce (New Zealand)- 2 Degrees has built a 3G network. They have only switched on their 2 G network at this stage but have announced that they will switch on 3G this year. As part of that announcement, they have signaled that they will cut the price of accessing the Internet on your mobile phone. In response, Vodafone and Telecom have already said they will do the same. So, the biggest barrier to mobile Internet access, cost, will be seriously reduced in 2010. I imagine the same will be happening globally, especially in developed world markets.
- Nokia launches cheap smartphones (globally) – How many people can afford an iPhone? Not many when you think about the entire mobile market in New Zealand. This is most likely the case worldwide. Nokia recognises this and have released news that soon they will unveil a smartphone (pictured above – and yes you can get it in white and black) aimed at the masses – it has Wi-fi, expandable memory, querty keyboard, email, imageing functions, bluetooth etc etc. It will sell in NZ for only $190. Consider the nearest rival with the same specs today is about $450 in a good sale. This will make smartphones available to the masses. Nokia are clever because they know there is a huge untapped market just waiting to be tapped. It would be pretty stupid of Apple to not come out with a cut down iPhone to try and capture some of the market too.
Once the price of Internet access reduces, and everyone has a web capable device, then things will explode. Social networking will become even more integrated into our lives. Facebook will become as much a part of us as our arms and legs!
* Mary Meeker: Mobile Internet will Soon Overtake Fixed Internet by Matthew Ingram. Accessed May 17, 2010.
