MMS is a success! But it can be bigger, faster!

MMS is a success! But it can be bigger, faster! CANNES - February 18, 2003 - Last year MMS was launched broadly in a number of countries. Widespread and rapid take-up of Multimedia Messaging is seen as the long awaited key to user adoption of new generations of services. Still, the industry cannot afford to let evolvement of MMS business take as many years as it took for SMS. Learning lessons from SMS, it's business models, and what it took to achieve rapid take-up and viral usage network effects will help operators and content providers to make better business - faster. Leading wireless advisor Northstream lists three key factors for the success of MMS. MMS is a technology that promise to be as easy to use as SMS, but allows not only the sending and receiving of text and simple graphics, but also of pictures, sounds and animations. Partly competing with the likes of email, Java and Instant Messaging, last year's 'big event' was still the broad launch of MMS. So far the penetration and usage of MMS has been slower that it could have been, despite frisky reports about success in some markets. There are still a number of factors that need to be honed; usability, variety and selection of services, interoperability between phones and between networks and pricing models that can attract users and content providers. -The big breakthrough for MMS still lies ahead, but we have the means to shorten the wait. A good sign is that there are already a number of successful cases that indicate real consumer demand for MMS, says Anders Lindqvist, senior advisor at Northstream. -In Japan Multimedia messaging is used by millions of consumers, in Italy tens of million MMS messages have so far been sent and in Germany there is a huge demand for camera phones. Still too many owners of MMS capable products simply do not use the service but occasionally, says Anders. So far the new terminals with colour screens, polyphonic sound and games have shown consumers that a new experience is being offered. While MMS terminals are certainly being promoted, so the services, many new phones are still an offline experience and trend accessory. Long replacement cycles, partly caused by long contract periods, are also holding new potential users back. Northstream analysis shows that a sufficient take- up and usage of MMS will be decided by: * Interoperability between networks and between terminals - creating the necessary social network effects. * Enjoyable and useful services - that can stimulate spending * Simple and transparent pricing models - both to users and content providers - We see that there is a lot to learn from SMS, not the least from markets where operators provide simple and operator-transparent business models towards content providers. When it comes to "user friendliness" we feel that providers must focus also on point of sales education, customer service, web support and pre- (or over the air) configuration. The user interface is not only a keypad and a display, says Anders Lindqvist. - We have seen that discontent or confused users might be lost, revenue wise, for a long time - no matter if the reason is technology, content or simply badly trained shop staff. Meet us in Cannes at the 3GSM World Congress, 17th-21st February 2003, Hall 2 stand F57 and Hospitality suite 301 or follow the event through live updates at www.northstream.se. About Northstream: Northstream provides strategic technology and business advice to the global wireless industry. Northstream has assembled a multinational team with some of the world's best experts and analysts on wireless communication business and technology. Northstream's list of clients include several of the world's leading operators and system suppliers, e.g. Vodafone, AT&T, NTT DoCoMo, Orange, Sonera, Telia, Mitsubishi, Ericsson, Nokia and Microsoft, as well as some of the leading investment banks and financial institutions. Northstream is established in Stockholm (Sweden), Sophia Antipolis (France) and Tokyo (Japan). For more information please contact: Anders Lindqvist, Strategic Advisor Tel: + 46 705 91 00 49 Tommy Ljunggren, Public Relations Manager Tel: + 46 705 91 00 64 press@northstream.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/02/18/20030218BIT00070/wkr0001.doc http://www.waymaker.net/bitonline/2003/02/18/20030218BIT00070/wkr0002.pdf