Open Mobile Media Newsletter

Edition 1

Hi there

Welcome to the first edition of the Open Mobile Media newsletter!

The Open Mobile Media newsletter and associated conferences, follows the evolution of the mobile marketplace in the age of convergence. And seeks to define where the value is going to be in wireless.

The community has been building steadily since our inaugural event, the Open Mobile Summit, which took place in San Francisco last November.

In this edition:

• Introduction to Open Mobile Media
• Event updates:
• Save the date for Open Mobile Summit 09 - June 10-11 London!
• Latest confirmed speakers
• Focus: Where the Open Mobile Economy meets the New Global Economy
• Soapbox: Digital Britain and the Tax on Broadband
• Uploads: More free content available online!

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Introduction to Open Mobile Media
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So, what is the focus of the Open Mobile events and newsletter? Firstly I’d like to clear up some common misconceptions.

• We’re not just about open platforms, or for that matter open source. Our focus is the opening of the mobile value chain as a whole, as mobile, Internet and PC worlds converge.
• It’s not really about technology either. We’re more interested in the changing commercial dynamics. How different players in the value chain are repositioning to succeed in the new world order, and which new business models are emerging that will enable companies to profit in the open mobile economy
• We don’t take sides. Open means different things to different people. And open doesn’t always mean good. At Open Mobile Media our objective is to share these different perspectives, in order to provide a clearer picture of the overall evolving ecosystem – from mobile operators to new entrants, handset OEMs and PC/consumer electronics manufacturers, Internet companies, content / media owners and applications developers. And to explore when open works – when it doesn’t, and what needs to happen to make an open ecosystem more practical and productive.

In short, bring together all the leading players from across the different fiefdoms. And we centre the discussion on how to build – and monetize – the new mobile economy.

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* Open Mobile Summit 09 is in London, June 10-11 – Mark your calendar!
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Key themes this year include

• Beyond the Phone – Netbooks, MIDs and Connected Consumer Electronics
• Where the Open Mobile Economy meets the New Global Economy
• New Business Models for Operators, Device OEMs and content/media owners
• Open Platforms, Open OS and Open Source
• Enabling innovation: Open vs. Closed, Defragmentation and standards
• New Distribution Channels in an open environment
• The rise of mobile broadband – new entrants and incumbents
• Monetizing the open mobile Internet – for applications, content/media and advertising players

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* Speakers at the Open Mobile Summit London *
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We’re delighted to announce the following have already committed to speaking at the Open Mobile Summit London – and many more are in the pipeline, watch this space!

• Christopher Schläffer, Group Product & Innovation Officer, Deutsche Telekom
• Aymer de Lencquesaing, Senior Corporate VP, Acer
• Dr Mike Short, Vice President R&D, Telefonica O2 Europe
• Steve Glagow, Vice President Partners, Orange
• Yves Maitre, SVP Devices, Orange (tentative)
• Hossein Moiin, Fellow Mobility, British Telecom
• Mike Grant, Partner, Analysys Mason
• Tanya Field, Director, Mobile Data Group, Telefonica O2
• Steve Ives, CEO, Taptu
• Ray Anderson, CEO Bango
• Rich Green, former EVP, Sun Microsystems
• Jason Whitmire, General Manager Mobile Solutions, Windriver

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* Where the Open Mobile Economy meets the New Global Economy *
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The conversation about the changing centres of value in wireless, and the new business models that might be necessary to survive and thrive in the new era, began long before the economic downturn.

Now these issues are even more pertinent. A challenging market sharpens the lens when evaluating the viability of both existing and future business models.

At Open Mobile Media we aim to shine a light on all the good things that are happening in the industry right now – and look at all the areas that have real growth potential in the next couple of years. Such as mobile broadband, mobile Internet services, smartphones, connected consumer electronics and so forth.

It’s no co-incidence that many of the areas that have sustained growth so far relate to this opening space – because disruption always brings both threat and opportunity.

There’s already evidence to suggest that not all revenues are simply vanishing, some are just being redirected. This trend will continue, with revenues being redirected to the players that get it right. Witness Apple’s growth in the last quarter of 2008. And the fact that whilst Intel and many others have been hurt in their core business, they’ve enjoyed growth in the Mobile Internet Device / Netbook arena.

Those businesses that survive and thrive through this new era will be those that are able to identify where the revenues are going and position to benefit. As well as identify which parts of their business are not enjoying growth and adjust accordingly.

One interesting aspect of this will be the impact on the evolving operator business model. Will the economic downturn accelerate or decelerate the trend to open networks? For some, a short term focus on operational efficiencies may take the focus away from new models and service opportunities.

But in the same vein, CFOs looking to cut costs might just as easily look at declining service revenues and the associated costs to generate them, and decide that now is the time to re-evaluate those parts of their businesses. That could conversely encourage the trend towards open network business models.

This is a major theme we’ll be addressing with the Open Mobile Summit speakers and participants in London in June.

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* Soapbox: My thoughts on Digital Britain and the ‘tax’ on broadband
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Some of you may be aware the UK government recently released a report (‘Digital Britain’) looking at the opportunities to stimulate broadband penetration in the UK.

It fell rather flat because it failed to address the 2 key issues:

• How to pay for more broadband build-out
• A decision on the 900 MHz spectrum

$ What was odder, in my opinion, was the action proposed to deal with music and film piracy.

I spoke with a record company boss last week and was quite shocked to hear that the record industry wants to turn ISPs into the tax collector for P2P downloads. The idea is for ISPs to track user behaviour and impose additional charges on customers downloading music / film illegally. A Rights Agency (like PRS in the UK) would then distribute the revenues across the world’s labels / studios.

There are lots of problems with this. But centrally, didn’t we spend most of the 90s learning that ISPs should not be gatekeepers to content, but pure networks? Aren’t the same content providers today complaining bitterly about the way in which MOBILE operators are still try to control the access to content, and associated revenues?

To me, charging a NETWORK with responsibility for CONTENT is a backwards step.

In addition, I’d like to see whether the record labels and film studios are going to offer ISPs a share of their LEGAL download revenues, in return for the ISPs work in delivering their products.

Yes, piracy’s a problem, and record labels need to find more ways to monetize digital distribution. But at the same time revenues from online music sales are now substantial. And ISPs, who build and operate the networks that deliver this increasingly heavy traffic, don’t get a cut of that revenue.

There’s an assumption here, on the part of the record labels, that ISP bosses are sitting at their desks rubbing their hands together watching data traffic go through the roof. Ever heard of flat rate broadband anyone?

Lastly, if ISPs are to collect revenues for music and film producers, then why not other types of content providers? I’m sure many publishers – especially the online newspapers - would like a cut for a start. And why not everyone else? In fact let’s put all that great content in a kind of gated area and have people pay for it on entry. Now, there’s an idea.

If there’s one thing I’ve learned about the Internet in the last 13 years, it’s that you can’t control it. It’s got to be open. Yes it’s disruptive. Yes it’s destroyed many existing revenue channels. But in many cases the revenue hasn’t simply gone away, it’s simply been REDIRECTED to those that get with the programme.

So I’d encourage record industry bosses to embrace the Internet, and get creative about how they can leverage it as a paid distribution channel, a marketing channel, a basis for building community and brand – even to drive ad revenues. Find a new model, rather than trying to enforce an old, redundant one. You can’t teach a new dog, old tricks.

The Internet isn’t just another format. It’s the new world order. Get with the program.

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* Uploads: More content available online! *
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We’ve uploaded some more podcasts from the Open Mobile Summit ‘08:

• ‘Googlevision: Why the mobile internet needs to be open’ - Rich Miner, GM Mobile Platforms, Google
• ‘Amazon’s Ecosystem Model: Kindle’ - Ian Freed, VP, Amazon Kindle
• ‘Global Drivers for an Open Mobile Ecosystem’’ - Mike Grant, Partner, Analysys Mason
• ‘Mobile Advertising and the open mobile economy’ – MySpace, AOL, Admob, Isobar and Analysys Mason

– you can download them now at www.openmobilesummit.com

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That’s all for this month. Thanks for reading. Feedback welcomed – write to me at robin@openmobilemedia.com

Robin

Robin Batt, Founder and Managing Director, Open Mobile Media Ltd

www.openmobilesummit.com

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In next month’s edition:

• Focus: Beyond the Phone: Connected Consumer Electronics
• New speakers for Open Mobile Summit London
• Open Mobile World San Francisco – save the date

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Copyright Open Mobile Media Ltd. All Rights Reserved.
www.openmobilesummit.com

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