63MM Mobile Web users in the U.S.

This comscore summary just came out this week. Here's a short recap:

* Number of Mobile Web users in the US is now 63MM (up from 40MM in mid last year)
* Fastest growing segment is still Social Networking (bundled w/ blogging)
* The majority of phones surfing the mobile web are still Feature (low end) phones (70%)

Other January stats:

* 22.3 MM users accessed info via a downloaded application
* 32.4 MM users accessed info via SMS

The WAP Fenced Garden

In the U.S. the concept of off-portal premium content and applications provided over WAP is almost nonexistent as most carriers maintain a fairly closed WAP walled garden.

But do off-portal content and application providers sit idle while waiting for the walled garden to come down? No.

When there is a will, and a loophole, there is a way.

Most carriers do allow end users to navigate to sites outside of the carrier-branded portal. The problem is that as end users navigate outside of the walled garden, off- portal sites will not benefit from automatically knowing their identities (i.e. the phone number). In a way this is similar to a Web experience – the only difference is the limited UI of the device. Many content providers thus take advantage of this by continuing to sell their content in a variety of different and creative ways.

One way is through the use of a third party payment method, such as Paypal or credit cards. On Verizon Wireless I can easily navigate to a content provider’s WAP page (the name of the content provider will go unmentioned), select a ring-tone, enter my credit card number, confirm my purchase. The two problems with this are 1) the cumbersome user-experience, and 2) most phones do not allow content downloading over HTTP (in my case, I got charged for the purchase but never received my content).

There are also other ways to marginally improve the end user experience:

Enter Off-Portal SMS. Through Premium Short Messaging Services (PSMS), off-portal content providers have been able to circumvent the WAP walled gardens. PSMS provides a way for content providers to bill consumers via the operator’s phone bill, either directly or through an operator-trusted aggregator.

The user experience might look something like this:

• User navigates to the content provider’s WAP site and selects the service

• User needs to provide the content provider with his/her phone number (manual input)

• To ensure the end user is truly the owner of the phone number an SMS containing an SMS message is sent to the phone number. Since the end user may have to exit the WAP session to receive the text message, the content provider sends a URL in the device (WAP Push). By selecting the URL the end user is taken back to the WAP page where he/she can continue with the transaction (and which serves as a means to authenticate the user)

• The content provider may deliver the content through a WAP download or through SMS, depending on the operator/device limitations

A less desirable user experience is one which is the last alternative for operators/devices that do not support WAP Push:

• User navigates to the content provider’s WAP site and selects the service

• User needs to provide the content provider with his/her phone number

• To ensure the end user is truly the owner of the phone number an SMS containing a PIN is sent to the device

• After the end user receives the PIN he/she may return to the WAP page, assuming the device’s browser is able to cache the page

• The end user enters the PIN

• The purchase is completed

• The content provider may deliver the content through a WAP download or through SMS, depending on the operator/device limitations

The big disadvantage is that the end user experience still leaves much to be desired.

The other disadvantage of PSMS is that the operators takes a cut of each purchase. The cut can range anywhere between 25% to 40%. The irony is that by trying to protect their walled gardens carriers are also keeping dollars outside of their precious garden, and out of content providers’ wallets.

>play's "Beyond Mobile 2.0"

I attended the UC Berkeley Digital Media and Entertainment >play Conference this past Saturday. The mobile panel focused around a somewhat vague, yet interesting topic: “Beyond Mobile 2.0”. The panel consisted of Steve Lee, Product Manager at Google Mobile, Tico Ballagas from Nokia, Jeff Sellinger, VP of Mobile at CBS, Rick Robinson, VP Products and Services at XOHM/Sprint, Evan Tana, Director of Product Marketing at Loopt, and moderated by Mike Rowehl of Sillicon Valley’s Mobile Monday, and AdMob’s tech dude. Some of the predominant themes were:

Location:

The most heard theme was: LBS is the key to providing targeted content.

According to Rick Robinson, the biggest problem with adoption today is the lack of privacy. However, I would agree with Evan’s response that the privacy control tools are in place today, so the biggest challenge is education (of consumers about these controls).

On Future of paid on deck applications:

According to Steve and Evan, both Google and Loopt get the whole ‘playing with carriers’ deal today, but believe the market is slowly moving to a more open environment. Nokia truly believes this, which was clear by Tico’s constant reminder that Nokia is evolving into a services company. Proof of this is the company’s launch of Ovi and late acquisitions (Navteq, Enpocket, Twango, and Loudeye). Rick Robinson from Xohm went as far as saying that "Xohm will tear down this wall..." (BIG statement!), but will still provide an on-deck expericence that is customized for the device.

Interoperability of different technologies:

The best description of what a rich end user experience might be was Jeff Sellinger’s. This would call for an interactive behavior between the different applications that exist on the mobile device. Jeff said it would be great to be able to tie SMS/MMS with WAP and Location. I would add streaming video and interactive gaming to this fabulous equation.

Limitations in the U.S.:

* Limited MMS support by U.S. carriers was the top item

* Absence of unlimited data plans, as in Europe, was mentioned repeatedly as a roadblock for user adoption

* Pervasive broadband (both availability and adoption) was mentioned a few times as an issue
Device fragmentation, specifically with browsers, was also mentioned as "old" but never ending "news"

A Few Thoughts on Mobile Widgets

I have heard of widgets within the context of mobile when referring to various types of applications. Because access (i.e., discovery, availability, ongoing ease of use on the device) is so much more critical in the mobile device the various types of Mobile Widgets should be properly defined and separated:

1) Mobile Web Widgets. These are widgets that are accessed through a Web browser on a phone. The challenges when developing these widgets are similar to those of developing Web widgets – i.e., multi-browser support. Add to that, however, multi-device browser implementation support. There is also the walled-garden that is still part of the browsing experience in most of the feature phones. Not to mention that outside of 1xEvDO the browsing experience is still very slow. Despite of these challenges, this is low hanging fruit with potential to shift part of the carriers’ WAP paradigm. Unfortunately, I have yet to find any companies focusing on this space. If you know of any, please send them my way…

2) PC-like widgets that can be downloaded to mobile devices and that can either run in stand-alone mode or require connectivity to operate, I call Downloadable Mobile Applications. This is simply what they are. These are not any different than a J2ME or Brew game, with the exception that these are being developed by new comers trying to bypass the carriers. While buzz marketing is certainly appreciated, it is important to take into consideration the implications associated with these downloadable applications. One problem with downloadable applications is discovery. How are users going to find these applications? Buried in a Web site? Or even worse, buried in a Mobile Web site? What about devices that prevent downloads to occur from a Web session? Or in a carrier supported application catalog (still buried) where the carrier demands to get paid for it? Another problem is downloading; even with optimal bandwidth, installation could be a confusing to a user and will likely vary per device. Also, a few platforms accommodate applications that reside outside of the walled garden. Take for instance Plusmo, which claims to send a text to your phone after you select your widget of choice. Once you receive the SMS, bam! you’ll be all set! – Sure thing, IF, and perhaps, you have a non-carrier-blocked Smartphone.

The bottom line is to use caution when thinking about designing applications that will require users to a) find them, b) figure out a way to download them c) deal with latency associated with GPRS and 1xRTT, and d) deal with the possibility the mobile platform may not accept the application or may require multiple attempts to download/install (well, other than perhaps… the iphone…). Remember: the mobile world is not like the computer world – it is by far more fragmented in terms of operating systems, different devices with the same OS can behave very differently, the systems are often closely guarded by operators, etc. Do not get caught off guard and make sure to develop with a clear strategy in mind.

For a vast set of examples of these visit Widsets, and Webwag.

3) Web Mobility Widgets (if anyone has a catchier term, please comment) allow Web applications to extend their functionality to mobile devices. Many of these, especially SMS messaging widgets, are showing great promise. Take 3Jam, oTxt by Owdigets, or Textdrop’s widget for MySpace, to name a few. These enjoy the viral, ease of use, and simplicity characteristics of widgets, while tapping into the mobile space in a way that even carriers can welcome their expansion through the Web.

4) PC Mobility Widgets are just like Web Mobility Widgets in that they interact with mobile devices. For the time being, the ones I’ve seen are limited to SMS Messaging whether it is a stand-alone applications or extensions to other applications such as an Instant Messenger or Email client. Great examples are: CallWave’s widget that allows users to listen to their voice mail from their desktop, or Clickatell’s Messenger Pro, which allows users to send/receive text messages directly from their desktop. These are likely to be less popular outside of the Enterprise due to the need to download and install the widget on one’s your computer. An interesting spin off these is SMSalias’ computer browser extension, which also requires downloading/installation.