June Liang Pui San, Program Leader Wireless at Frost & Sullivan, Asia Pacific, cited the failure of WAP as generating a negative perception of data communication among potential users, but also raised the issue of an alleged "distaste" Australians have for keying in characters on a small keypad. "In addition, lack of active education on the part of service operators has meant that potential users are unaware of the types, use and benefits of applications."
Despite a traditionally technology savvy consumer base in Australia, the only mobile data applications that are doing well are point-to-point applications such as messaging. Frost & Sullivan expects mobile messaging to comprise 91 percent of mobile data revenues in 2003. Mobile data revenues are expected to grow from AU$444.5 million in 2002 to AU$1,420 million by the end of 2006.
Messaging revenues are expected to grow from AU$420.2 million in 2002 to AU$1.13 billion in 2006, based initially on rapid growth in SMS and higher value SMS services, and later by a growing up take in e-mail, EMS (Enhanced Messaging Service) and MMS (Multimedia Messaging Service) usage.
"The Australian market is expected to slowly transition from a highly voice centric market and data users are expected to grow as communication needs evolve," said San. "Demand for mobile data communication and mobile applications will grow at a more rapid pace, particularly as the mainstream market becomes more developed with higher awareness and knowledge of the use and benefit of mobile applications."
After mobile messaging, mobile information and entertainment is the second most popular application, according to Frost & Sullivan. Traffic in ringtones, icon and picture downloading is increasing at a rapid rate, despite the relatively high cost of the services, almost 12 times that of an SMS message.
