The way towards a mobile society Finnish Tourist Board, Helsinki in co-operation with the WG E: 'Nordic group'

Who loves wires? Million Users Wireless Internet users Fixed Internet users More users with wireless Internet access than with fixed access in Revenues Take Off in 2003?

About 10% of mobile phones sold in Western Europe during 2000 are WAP-enabled. Forecasted increase, 27% in 2001

The problem with WAP today 20 s connection time dropped calls charging by the minute Scandinavian slow replacing towards wap phones services missing (the chicken or the egg?) connecting

Standard competition holds up development of advanced services Sophistication in services Consumer Adoption WAP SMS GPRS3G/4G PALM VII CDPD iMode Sprint Wireless Web AT&T PocketNet cdmaOne PCS WAP Jphone iDEN Ezweb

The Wireless Market Advertising Wireless Internet, SMS, PDA Shopping Goods and off-line services Other Financial, , Search, Positioning, Games

M-Commerce Market Drivers Decreasing average revenue per user drives networks operators to implement new services The increasing number of mobile phone subscribers Increasing exposure to fixed line e-commerce among Europeans Supplier push (from equipment vendors) New billing principles (flate-rate, value-based) UMTS licensing Application developers Content providers Content aggregators Mobile portals (aggregates applications and content) Consumers (consumer profiles and business segments) Payment agents (not only banks……..)

Many Rely on Advertising and Shared Air Time Revenues N = 34 (multiple answers allowed) What revenue streams does your wireless business have (or plan on having)?

... but Expects Most Revenues From Commerce and Advertising N = 34 (multiple answers allowed) Which do you expect to be your most important revenue stream in two years?

Time Critical Services Dominate Today, Messaging No. 2 N = 34 (multiple answers allowed) What is the most used wireless content/service on your site? (up to three answers)

... but believe in , Commerce and Games N = 34 (multiple answers allowed) What do you expect to be the most used content/service in two years from now? (up to three answers)

Consumers Ask For Communication, Banking and News Services... Source: Jupiter Net Query Which wireless data services would you like to use?

Scandinavian countries are aware of banking services... Source: Jupiter Net Query Which wireless data services would you like to use?

Spending still small when compared to the PC platform

Time to move on

Cost, Functionality and Consumer Awareness Are Top Inhibitors N = 34 (multiple answers allowed) Which of the following factors are significant inhibitors to the growth of your wireless business?

Some thoughts on UMTS Expensive European air... Different procedures for obtaining a license EU was for the first time in winning position > slowing down the speed, when users need to pay roaming fees No timetable for 3G

Important key weaknesses for further development Existing IT-infrastructure is the greatest handicap in the move to optimised m-commerce business processes (ex. transport operators legacy systems do not permit e-ticketing or mobile ticketing) Not enough hotels and rest. have a web presence Surfing WAP-sites is slow Difficult to find WAP-sites Secure and convenient payment methods still to come

What will be the future?

GPRS will be the Inflection Technology for 'Wireless Internet' in Europe Operators roll out services across Europe during 2001 GPRS terminals available in limited numbers today Widely available during 2001 and common during 2002 Flat rate offers allow extensive usage, charging per bit allow low entry level, no dropped calls, 1 sec connection

Stakeholders - Many Players Fight For the Same Customers Network Access Content Terminals Other Operators / ISPs Mobile phone manufacturers Wireless Portals Web Portals Players fight for anticipated profits in content, services and commerce

Operators have a strong position 1. More difficult to change start page, gateway and set bookmarks 2. High traffic charges give operators the possibility to subsidize content and services 3. Operators can charge customers phone bills / no payment standard 4. Positioning information held by the operator 5. Established customer relation / access to customer data

The tourism industry needs to partner Be creative in partnering with others (Operators is one example) For the next three years, content, commerce and service companies must make partnerships to reach a broad user base Wireless internet revenues will not support independent content providers. The strategy should be to use wireless content to strengthen online / offline services.

Cases Finland and Denmark

Finland wap.finlantravelguide.com Travel services in English with national coverage Content based on existing database with travel options jointly produced by the Finnish Tourist Board and the Finnish travel trade Launched January 2001 Free of charge, available to anyone with a WAP enabled phone A platform for local add-on services Directions for using the WAP-service:

Denmark wap.visitdenmark.com Denmark offers wap service to tourists when in the country Addition to what you can find when planning the trip on Service due to expand over the years Cooperation with local tourism partners for up-to- date info essential

Key issues from the WG E 'Nordic group'

Key Issues Development of new technologies for mobile Internet will continue. The tourism industry needs to get involved! The need for standardisation and structuring of information has been exposed by the development of Internet, now is the chance to deal with these issues in the beginning of mobile Internet. Surveys of Internet behaviour of tourists was slow to start, now is the time to start market research of mobile Internet on a European level Research in mobile Internet and its impact on tourism is limited

Need for EU initiatives Co-ordination between databases for mPortals of NTOs Create forums where technology providers and developers can meet with the tourism stakeholders (public and privat) to analyse problems, support the development of partnerships and agree new access conditions and pricing models Further support of joint research such as the 5th Framework Programme Arrange conferences on this topic for the tourism industry

Sources Jupiter Research C. Marcussen, Bornholms Research Centre Durlacher, M-Commerce Report 1999 Mobile Forum Oulu WG E Nordic Group