The convergence of wireless technology and the Internet is creating new markets and new revenue streams, especially identifiable for three key vertical segments, i.e. wireless infrastructure vendors, wireless service providers and content portals, and it is reported that wireless portal revenue is set to grow from a figure of $747 million to $42 billion in 2005.
There are two streams of revenue for wireless portals:
* The first revenue stream of approximately $17 billion will consist of advertising, placement fees,
e-commerce, and content subscriptions.
* The rest of it, i.e. $25 billion, will consist of access charges and network subscriptions from device operators.
According to the current market projection, the mobile business in the U.S. is expected to
grow rapidly from a mere $29 million in the year 2000 to a figure of $20.8 billion in 2004. However, the mobile market revenue makes up only 2% of the U.S.'s wired Internet business in the 2002.
The reason for this being that, almost 70% of the revenue generated by the wireless Internet market will be recognized outside the wireless network. This suggests a revenue-sharing approach needs to be more widely adopted in the value-added networks of mobile services to ensure business sustainability.
New wireless application services created as a result of the convergence are: mobile
commerce, business applications, financial, entertainment and messaging-based, information based and location-based services. These new services coupled with partnerships enrich and strengthen the value-added networks centered on the aforementioned vertical industries, thus, these networks are not only bound to retain their current customers, but also attract new customers so as to improve their profitability.
Going by the current market consensus, there are tremendous opportunities in
the wireless industry in upcoming years. As shown in the figure below, the worldwide mobile market revenue is expected to grow rapidly...