Mobile communication and the Internet two success stories joining forces
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1 Mobile communication and the Internet two success stories joining forces
2 Agenda Background and history Some important steps in the development until today Why Scandinavia? Underlying market drivers for Mobile Internet Technology Business environment Lifestyle and the power of mobility Examples of Mobile Internet business opportunities Venture capital industry and entrepreneurship
3 The two revolutions in information technology during the 90 s Internet Access to information Interaction between people Breakthrough with graphical user interface for web browsing (Mosaic and Netscape) Mobile communication Flexibility Availability Analogue technology (NMT, TACS etc) during 80 s Digital technology (GSM) during 90 s
4 Why Scandinavia? Internet Good English knowledge Government subsidies awarded to employees purchasing PCs through their employers for home usage Mobile communication Tradition of fast and widepread acceptance of telecom inventions Stockholm had more telephones in absolute numbers 100 years ago than any other city in the world Very high fixed line penetration NMT a leap frog start for Scandinavia Tax subsidy of mobile phones Technological and market know-how Roaming agreements between countries
5 Underlying market drivers Technology Mobile internet Increased bandwidth (GPRS -> EDGE -> UMTS) Always-on connectivity (packet switching through GPRS) Positioning technology (Mobile infrastructure and GPS) Billing systems (IP-billing and billing of external micropayments) Java enabled phones and open terminal platforms Wireless data transmission Wireless Personal Area Network (WPAN) e.g. Bluetooth Wireless Local Area Network (WLAN) Wireless broadband access (e.g. Telia Globalcast)
6 Underlying market drivers business environment Deregulation Number portability Promoting/enforcing independent mobile service providers New licenses UMTS and GSM Wireless Local Loop (WLL) New type of players New type of companies in traditional telecom e.g. Virgin Mobile New industry initiatives e.g. Wireless Car (Ericsson, Telia and Volvo)
7 Underlying market drivers Lifestyle and the power of mobility High willingness to pay for mobile communication 3 billion SMS sent in Europe during December 1999 The mobile terminal has become fashion and an object of affection Nokia unveiling products at fashion shows Japanese girls carrying their shell shaped mobile phone as necklace Two user groups drive Mobile Internet development Business people The young mobile generation
8 Examples of mobile internet business opportunities Transforming industries with mobile employees Mobile applications Operating system like solutions The man-machine user interface Billing system enabled solutions
9 Transforming industries with mobile employees Initial impact of mobile communication has been on individual employees In the future it will impact whole organzations Industries Fleet management Health care Functions Service people Sales people
10 Real time critical information Mobile communication offers communication At any time At any place The mobile terminal is ideal for real time critical information Weather reports to farmers, sailors etc Market informaton to equities analysts Medical information to the doctor arriving at an accident
11 Positioning services Technology offers the possibility of locating a mobile terminal GPS through satelites Mobile infrastructure by measuring distance to base stations Examples of applications Security SOS alert and localization Locating stolen cars (Cellpoint in South Africa) Navigation City guides Contacting people Mobile version of ICQ (I seek you) Real time dating Industry applications Fleet management (Swedish SatSafe)
12 Mobile entertainment applications - Saving vs. killing time Up to now: availability/saving time In the future:killing time Games Gambling Listen to and download music
13 The man-machine user interface Demands on mobile terminals Large screen User friendly input system Low weight New user interfaces must be developed Voice and eventually thought controlled applications Screens as part of eyeglasses Examples Voice dialling on mobile phones The wearable PC by IBM
14 The personalized mobile assistant Basic needs for mobile people Find information Make calls Book meetings Possible solution the personalized mobile assistant Example Maya developed by Motorola
15 Systems adapting the communication need based on situation and position Some problems with communication today Must switch on handsfree manually in car Voice dialling doesn t work in loud environments Messaging on mobile phone and PC is not synchronized Solution: systems adapting the communication need based on situation and position
16 The mobile terminal as a platform for e- commerce the m-wallet The mobile terminal is ideal for e-commerce Always with you Micropayment billing is already part of infrastructure Possible to store tickets, receipts etc in mobile terminal The m-wallet combining what is already in your pocket today Mobile phone PDA Keys Wallet (storing money, receipts and personal items) Examples Yada Price and Pricerunner.com offering bar-code shopping PayPal offering Palm users to beam money to each other
17 Convergence of mobile operators, banks and credit card companies Today the phone is used for Phone calls SMS Tomorrow the terminal will be used for Phone calls (SMS) Payment tool in shops, i. E. cash card Transferring money to your mutual fund The mobile operators will be more than a mobile operator Pre-paid card = the mobile operators is a bank Monthly bill = the mobile operators is a credit card company Example: Mannesmann in Germany and Omnitel in Italy want to become a banks Another German mobile operator already has a banking license
18 A few thoughts on entrepreneurship Money and ideas are commodities good people are rare Successful entrepreneurs are not distinguished by their ability to generate good ideas, but to execute ideas Strategy is easy, day-to-day operations is hard Venture capitalists prefer an A team with a B idea over a B team with an A idea Speed and execution is what matters Entrepreneurs must develop and re-iterate strategy while doing the hands on work
19 Startupfactory evaluation criteria Strongteams Entrepreneurs with high aspirations Business idea has or will have strong wireless component (technology and/or lifestyle) Business idea should have minimum European potential Clear business and revenue model Early mover advantage Can Startupfactory add value?
20 What does Startupfactory offer? Core offering Seed capital Global contact network Business development Business experience Technical expertise Recruiting Board Key executives Assistance in coming financing rounds Identifying strategic investors Opening doors Offered, but not core Office and office infrastructure Telephone and fax Computer network Standard products and established contacts Legal advice incl. Options program Patent attorneys PR and marketing firms
21 Good luck! Despair: no money no customers no support Great idea!!! Success!!!
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