Upwardly Mobile by Jo Best

In Upwardly Mobile, chief reporter Jo Best gives you her perspective on how mobile and wireless innovations from around the world will affect Australia.

Why did Telstra and O2 say bye-mode?

Posted by Jo Best @ 15:55 4 comments

This week has seen both Telstra and O2 in the UK ditch NTT DoCoMo's i-mode mobile content service after adopting it for just two years. Is this a good sign or a bad sign for the Internet on mobiles?

i-mode is something of a phenomenon in Japan, one of the most -- perhaps the most -- advanced mobile markets in the world. DoCoMo, the company behind i-mode, is the biggest mobile operator in the country and it has most of its users on i-mode -- so why didn't the service take off over here?

Let me start by saying it's not a bad service but it was doomed to fail outside Japan, nonetheless.

I would gamble that timing is one of the main issues behind its demise. When DoCoMo launched i-mode in its home market back in 1999, WAP was, alas, not yet a distant memory in mobile world. i-mode was a much more user friendly and sensibly-priced alternative -- a hit because of its pocket money prices.

It was six years later when Telstra and O2 launched their own versions of i-mode and the mobile Web had moved on considerably in the interim. Operators now had their own more user-friendly content portals and had begun to erase the stain that WAP has left on mobile subscribers' consciousness.

As well as phones that offered users a chance to view content in so-called "walled gardens", handset makers were beginning to sell devices with larger screens, designed to offer open access to the Web and an experience much more akin to that of surfing on a PC.

When i-mode debuted in the UK and Australia, it almost appeared a step backwards, harking back to the bad old days of an Internet constrained for a mobile platform.

O2 blamed the failure of the service on lack of compatible handsets and that's certainly a part of it. The phones O2 launched with tended toward the low-end, yet the concept of spending up to three pounds a month to access a single i-mode site is anything but. It's even more incomprehensible when compared to flat-rate bundles that operators like O2 offer, which provide far more data access for the same price as two i-mode site subscriptions.

Education too probably played a part. Post-WAP, consumers have gradually become comfortable with Web access on the move -- another technology standard only served to blur the lines.

Telstra gave a different reason for deciding to end its i-mode licence, saying the service "is not compatible with the future direction of the Next G network" and is encouraging any i-mode mourners to get their content fix from BigPond Mobile.

As time has passed, mobiles are ever more seeking to emulate the PC experience, and operators to mimic Web content providers. i-mode's version of the mobile Web simply didn't fit with that vision.

The mobile Internet is dead -- long live the mobile Internet.

Talkback 4 comments

    Why pay for i-Mode when you get web free? Tom Worthington -- 19/07/07

    One reason i-Mode was not successful may be that consumers in Australia and the UK are used to getting information from the web for free. Why would you pay for less information via i-Mode?

    Also WAP has caught up with i-Modes technical features. i-Mode was more web compatible than WAP, making content easier to create. This has been fixed with WAP 2, which includes a version of HTML.

    Creating mobile compatible content is now reasonably easy. I teach second year students at the Australian National Unviersity how to do this: <http://www.tomw.net.au/2006/wd/mobile.shtml>.

    Their assignment is then to take a typical web page and modify the HTML to make it mobile compatible. It is very likely that Web 2.0 applications will be mobile compatible.

    Why Pay? Why Not? Steve -- 19/07/07 (in reply to #320083030)

    I think the price argument, in that content is typically free at home via the PC is not entirely valid.
    Do consumers expect fixed line call rates via their mobile? I certainly don't.
    I would expect that most people understand that a mobile service, be it voice or data will be more expensive than a fixed service, thats just how things are.
    That's not to say it gives providers a licence to price their products out of the market, but surely we can accept that we are paying for the convenience of having content anywhere.
    Further to this point, I was an i-mode user and found a single use, which was appropriate for myself. For $4 a month I had access to one site I frequented regularly.
    I think the service has failed because too many people either did not subscribe to the idea, or those that did subscribe picked their isolated point of interest and all of a sudden Telstra wasn't making any money from it.
    The propaganda came through think and fast about how much more was available, but since there was no interest about additional content, i felt no need to part with a further $4 per site.
    Perhaps this was the damning flaw of the service. Give open access for a flat fee, or expect people to only subscribe to their niche interest.
    No wonder they canned it.

    Think about the publishers.... Anonymous -- 19/07/07 (in reply to #320083051)

    All those publishers who lost a heap of money making their platfrom iMode compatible.

    Now, what's next?

    Can't say i'm surprised !!! Paul Kieley -- 19/07/07

    I agree with the last comment from the person who never left his name, but lets be 100 % honest here
    did we need i-mode ? did we need wap ? do we need Internet on your Mobile ? i-mode has flopped wap too [ too slowww] and in my opinion the 3rd is nowhere near as good as a pc and how many ppl would buy a cd over a mobile i never ever would would not trust it plus takes too long.

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Jo Best

Jo Best

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