Applications aptitude

Two studies released this week point to why the development, deployment and acceptance of applications--both wireline and wireless--could finally start to enjoy eminence in 2004. A study from RHK predicts that the online entertainment market will generate $10.3 billion in 2003 and $27.4 billion by 2007. Meanwhile, a study from Alexander Resources forecasts that wireless "infotainment" services will generate $7.2 billion by 2008.

The predictions seem logical from a service provider perspective. Carriers are always on the hunt for applications with low costs of entry and high revenue prospects--especially at a time when new network investment is still sluggish and the need to squeeze every drop of potential out of existing assets is still a top priority. If service providers are even remotely successful pushing such apps as mobile multimedia messaging, broadband music downloads, online gaming and video content to their customers, they're that much more likely to start re-investing and expanding both the reach and capabilities of their network systems.

Both the RHK and Alexander Resources studies rightly point to cost as a potential barrier to applications success--not so much the cost of development and deployment as cost-related issues like market pricing and consumer willingness to pay. In my opinion, a critical accompanying issue is that of how these apps are marketed, and by whom. The telecom industry has a long history of being too inwardly focused--of pushing and promoting innovation to its own and not getting the word out loudly enough to the outside world. For broadband and wireless applications to reach the multibillion-dollar milestones these consultancies predict they will, carriers and applications developers must work in tandem to develop a savvy strategy for both setting acceptable market pricing and dramatically improving consumer awareness.

E-mail me at jmeyers@primediabusiness.com