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06 Nov 2009
By Jono Haysom
Nov
06

Satisfying the hunger for mobile data

blog_hunger

It’s the time of year when telco managers and web enthusiasts alike turn their eyes and ears towards the Web 2.0 Summit in San Francisco. I thought I’d sift through the Summit’s presentations to see what the hot button topics are this year. One of the more interesting keynotes I stumbled upon was on the subject of mobile internet.

The presentation (embedded below) is numbers-heavy but does outline where mobile internet is going. How many times on your daily commute or weekend wanderings do you see someone on their mobile? Unless the mobile is held to their ear, they are likely one of the millions of Australians checking their email, updating their social media pages or watching mobile TV. Mobile internet usage is exploding.  I’m not only referring to our healthily-budding market here in Australia, but more so the global boom in this area. Next generation smartphones such as Apple’s iPhone are a key part of this growth, driving consumers to data centric applications to quench their thirst for real-time information and rich streaming media. The proliferation of USB and semi-permanent 3G data access has also pushed mobile internet to the forefront and, in some cases, is replacing traditional fixed line connectivity. Often when I travel it’s not unusual for me to take a USB modem and my phone for data use. As a result my personal consumption has ballooned over the last two years. As infrastructure supported faster speeds, I found I was no longer uploading a picture or two, but streaming videos and downloading large files on the move.

I’m obviously not alone. Demonstrating just how quickly mobile data is growing, AT&T’s mobile data traffic has increased by 4,932% over the past three years! The bulk of all this growth comes from the general browsing of websites, but social networking and mobile platforms (think Facebook and Apple Inc’s app ecosystems) are fundamentally changing ways people communicate with one another and consuming media. It’s not only consumers that are capitalising. Developers and vendors now also have more ways than ever to reach us, spurring a rapid cycle of innovation, growth and consumption. In fact, I would say nearly half of the time the mobile is in my hand; I’m using it as a non-verbal communication device.

With this intensification of take-up, carriers will have some key hurdles to overcome to keep up with demand. Take a quick glance at real-time social media sites like Twitter. They reveal the frustrations of customers toward some Australian wireless carriers who have been hit with crippling performance issues due to this explosive growth. A study by Gomez Inc Link shows user experience (“UX”), core to driving adoption and usage, is currently lagging well behind the market’s drive for data.

So, with the globe hungrier than ever for mobile data, will people be able to rationalise the trade-off between carrier performance and the costs of mobile internet? How do you find your mobile internet experience and where do you see your usage going?

Economy + Internet Trends – Web 2.0 Summit: San Francisco, October 20, 2009
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By Jono Haysom

Posts: 2

13 Comments

  1. Andy Cronin says:

    Great post J-Hay.

    AT&T’s mobile data traffic has increased by 4,932% over the past three years! .. that’s crazy!!!

    I would be keen to know how much of this data increase was due to AT&T having exclusivity of the iPhone in the states?

    You’ve inspired me to check what data pack i have on my account. :-)

    Cheers.
    Andy

  2. KJ Mc says:

    The driving demand for these products has absolutely exploded over the past 3-5 years. In my role as a mobile data specialist I have seen the launch (and demise of some) mobile data platforms hoping to bring these products to the masses.

    Until the iPhone, undoubtedly the greatest implementation of this has been in the form of Mobile Broadband USB modems, bringing the concept of WiFi to absolutely anywhere.

    Any laptops I see on the train invariably have a dongle, key or stick poking out delivering 3G data to it. People are almost unwilling to use their laptop unless its connected.

    The demand for it is also driven by the continued expansion of cloud-based computing and online interactions. Where somebody might have previously been happy to work in isolation, the growth in collaborative communications means that connectivity is a must.

    That tackles the business side, and undoubtedly the expansion of Apps on mobile platforms will continue to bring this revolution to consumers. The idea of ubiquitous connectivity and paging via my iPhone has skyrocketed my personal productivity. To quote a presenter at the recent Digital Life expo in Melbourne, “for me, it isn’t a ‘digital life’, its just ‘life’”.

  3. Ange says:

    Hey Jono – well done!

    Good reading – interesting story…

  4. 1) Overall the global portability of data and phone services is still not trustworthy or easy. I just returned from 3 weeks travel in US/Canada. I travelled light with just my Blackberry.

    I had planned to use my Australian (My3) phone & data service plan, was told this would work, but when I arrived I could not get any phone connectivity/service. I thus resorted to free wifi as the only option (without having to purchase a local sim card with a data plan). Thus, I used no phone services the entire 3 weeks, I only used data to make all travel and other plans and bookings, all using free public wifi or friend’s services. Service was good in some places, not in others, and annoying that even major US hotel chains, such as Marriott, were still trying to charging for very poor limited wifi ($10 hr!)

    However, at home my BB is always in my hand, on the tram, walking down the street, in the elevator, at my desk, and I am constantly messaging, emailing etc, sending photos etc, and only rarely do I now use voice, because BB makes it easier to hook up in person.

  5. Hi Jono,

    Nice post and very accurate, particularly about UX being way behind the times :( I’m hoping to change that :)

  6. Reveka says:

    Jono – nice post. The growth stats seem astronomical but on reflection no one i know uses their mobile just to talk!

    I often wonder how people organised themselves pre mobile phones, I’d imagine most people would feel a mobile is an absolute necessity. Before long if not already, will be a generation that feel the same way about mobility devices and the ability to access data.

  7. Pam says:

    Hey Jono – great post! Lots of detail and you’ve done your research!

    To Reveka’s point around how people ever survived without mobiles, I often wonder this too. Today it seems an impossibility to even meet a friend without first putting into your calendar, texting them the meeting place and finding out how to get there via google maps….

    It’s going to continue to grow and it’s exciting to think about the next phase…

  8. Melanissa says:

    Jono,

    You make an excellent point. I wonder though if the Next generation smart phones such as Apple’s iPhone are a key part of feeding this hunger, then why dopes Telstra downplay iPhone and instead choose not to “get in bed with Apple” in terms of tethering and promote what consumers want.

  9. Melanissa says:

    Jono,

    You make an excellent point. I wonder though if the Next generation smart phones such as Apple’s iPhone are a key part of feeding this hunger, then why does Telstra downplay iPhone and instead choose not to “get in bed with Apple” in terms of tethering and promote what consumers want

  10. Social comments and analytics for this post…

    This post was mentioned on Twitter by fictillius: Satisfying the hunger for mobile data by @JonoH on Telstra Exchange http://tr.im/Eht0…

  11. Stevanovich says:

    Interesting read.

    Mobile internet is a great boredom killer for me. That and i’m a serial ’status’ updater.

  12. Sunderland need help says:

    Jono,

    Interesting reading indeed and good points raised. The experience that users have whilst accessing the internet via your mobile certainly is dependent on handset manufacturer and the carrier’s network. Whilst the carrier I use is excellent, the handset I currently use has many limitations when accessing the internet, especially when comparing to use via a PC or laptop (of course, we expect that). But in saying that, I recently borrowed an iPhone for a few weeks, and I found accessing data and using the internet both easy to use and professional. If manufacturers can raise the bar, as Apple and RIM have done regarding data access and internet usage, mobile data usage will continue to grow exponentially.

    Jono – you seem to be a man in the know. Do you think VoIP via iPhone will take off?

  13. Jono Haysom says:

    To Sunderland need help.

    I think there are many applications that can make good use of IP and mobile data. Voice over IP is once such application. At this stage VoIP is a good gap filler in the market but i don’t think the voice quality is quite there yet to appeal to the masses. Uncontrollable end user factors such as jitter can impact greatly on the quality, for some users they can see past this but the vast majority will find it an annoyance.

    Its certainly something to keep abreast of, I believe when radio networks are at a stage where ping/packet loss issues are negligible then certainly I see no reason it wont take off. Will it replace traditional voice carriage or be a complimentary service? or will carriers even use IP to carry the voice? time will tell :)

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