Following launches of the first multimedia picture messaging services, interoperability deals are being negotiated and signed across Europe, with a view to taking multimedia services to the mass market. The billboards have recently become omnipresent following the recent flurry of activity surrounding launches of picture messaging services across Europe. The telecommunications industry has positioned the first multimedia service offerings as bridging the gap between now and the future as it attempts to create a buzz in expectation of the arrival of 3G.
Among the industry, there exists the popular assumption that there will be an automatic, hiccup-free transition to MMS, hot on the heels of the success of SMS. However, reality is proving to bite a bit harshly as picture messaging services are launched and MMS handsets remain in boxes on the shelves.
We’ve all read the reports and seen the figures – the UMTS Forum estimates MMS will be worth approximately EUR 15 billion in 2006, industry analysts Ovum optimistically say EUR 70 billion by 2007 and so on – but what about the situation today and the challenges in getting users to buy into MMS ? Even in advanced and mobile-savvy markets like Finland, where up to 80 per cent of the population come equipped with a mobile device, launching services proved to be challenging.
Touting MMS as ‘the new SMS‘ means handsets must beat existing expectations aligned with SMS in that they must be cheap and widely available to build critical mass. Across Europe, markets for mobile devices are reactive and comprised largely of handset re-purchases, meaning a compelling and attractive argument is required to encourage users to consider purchasing MMS -enabled handsets.
Cue picture messaging, offering users the capacity to personalise services and create their own unique content. Time and again, personalised content has proven itself as immensely more popular than embedded content and the ability to create something unique and personalise it is exactly the type of functionality for which users are willing to pay.
This raises the challenge of capturing the audience and getting them to use MMS services. Multimedia technology – or any technology for that matter – is an enabler, not a driver. The drivers are the applications. The success of MMS will ultimately be driven by end users and based on a combination of personalised services, because there is no content like my content. A clear advantage of MMS is that it provides a mechanism for access to an infinite variety of multimedia content in mobile networks. Better still, the content is unique and personal to each user, making it an attractive option.
If MMS is a ‘taster’ for future 3G services, the industry must be aware of the importance of managing consumer expectations. Setting unrealistic expectations of MMS operating in the current GPRS environment will only serve to disappoint users. Everyone remembers WAP – particularly the end users! However, it seems the industry is wising up to the importance of simple and concise marketing messages to support services – ‘picture messaging’ says exactly what it does and does exactly what it says.
Interoperability between handsets and networks is another key driver in the adoption of MMS services and is imperative in providing a better experience for users. People want a simple, cheap and easy way of messaging in words and pictures. Finnish operator Radiolinja recently completed successful interoperability tests enabling seamless delivery of multimedia messages between different MMSC s. This is the first step in the right direction towards full interoperability.
The next challenge lies in pricing and billing for services. The MMSC must have the flexibility to execute transactions and integrate billing to deliver expected revenues to all parties involved in each transaction. The key rule is that pricing and billing must be kept simple because both are key drivers due to the high degree of price sensitivity of the target market.
Operators take a greater pricing risk implementing a fixed pricing model for services, due to the unlimited variation in message size and content. Pricing and billing according to variable content and message size may be simple transactions for operators with billing platforms capable of executing elaborate tasks, but complex billing and pricing are simply not acceptable to users. Service providers, operators and MMSC vendors must work together to determine what is acceptable and understandable to consumers in terms of pricing and billing.
In determining initial picture messaging prices, Radiolinja referred to Finnish postal rates as a benchmark. The company charges EUR 0.58 per message, compared to EUR 0.60 cost of posting photographs in Finland – a comparison that justifies pricing in terms consumers are familiar with.
Successes with MMS so far in a multi-vendor environment highlight the importance of industry players working together to meet challenges and deliver a better user experience to ensure the success of MMS. Time will tell as the market gains momentum and MMS usage levels begin to assert an effect on price levels, longevity and success of services.
As an industry, lessons learned from challenges faced must be applied to encourage widespread adoption of MMS services. Only by working together does the industry have the power to ensure success for MMS , now and into the future.
Philip Hayes
2003-05-29
Em Foco – Opinião