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Promo Report

May 13, 2002

 

Games People Play

 

How Telus Mobility is pioneering Pay Per Use wireless Web services in North America

   By Rob Blumenthal

 

All wireless carriers in Canada now offer some form of mobile access to the Internet through their digital wireless phones.rblumenthalWhile the interface is simple–alphanumeric text and plain graphics on your phone's little screen–the actual Internet content ranges from text messaging to news, finance, directory and mapping services. Useful stuff and, most importantly, available to clients virtually anywhere they might be.

There's no question that Telus Mobility clients are taking advantage of the services on our mobile Pocket Web. Its ease of use, wide range of content (we now have more than 100 top content providers) and everywhere availability have boosted hits on our Pocket Web service to more than 25 million per week. But from our experience to date, access to business and financial information often pales in the face of good old-fashioned fun.

Playing games

Of all the wireless Web services we offer, gaming has had the quickest takeup. Our efforts to grow gaming traffic, and make it pay, are good lessons for marketing the wireless Web in general.

Market researchers Gartner Dataquest of Stamford, Conn. say the number of wireless gamers across North America will top just 200,000 this year, but will grow to 14 million by 2004. North American wireless gaming revenues are expected to top US$300 million (C$469.4 million) by 2004, up from less than US$700,000 (C$1.1 million) in 2001.

While we're seeing great strides in the phone interface–bigger screens, colour screens and, soon, greatly increased wireless data speeds–current wireless games are simple text or limited-graphics offerings. But here's the key: You can play them right on your phone virtually wherever you might be, in the subway, in your livingroom or in a doctor's waiting room.

atomic_doveAtomic Dove was designed to boost interest in gaming and the wireless Web

It's that combination of the inherent mobility–play anywhere, anytime–with the interactivity of the wireless phone that makes for its unique and growing attraction. The games may be simple, but gamers are drawn by the opportunity to compete directly against other players right across Canada, and even send their counterparts immediate text messages to razz them about a victory, commiserate on a loss or just get acquainted off the playing field. We're seeing a new community of dedicated mobile players building across the country.

Our national Pocket Play wireless Web gaming tournament, based on the game AtomicDove (http://www.atomicdove.com/), is the first of its kind in Canada and we believe North America. The cash prizes in the tournament aren't huge–$2,000 in total–but the idea was to involve serious and rookie wireless gamers alike in a cross-Canada tournament to increase not only revenue but general interest in gaming and the wireless Web. The average number of games per player per month jumped from 20 when the tournament started last Nov. 5 to about 40 games per player during the tournament period. And, while underlining gaming's popularity, this has shown our clients are willingly paying to play.

Paying games

One of the fundamental issues with the wireless Web is how you get people to pay for it. In Canada, unlike Japan and many parts of Europe, most desktop Internet users virtually never have to pay for the specific content they select. However, the wireless Web adds an infinitely valuable element: mobility and ubiquitous availability of content. Getting the right content, that both attracts users and is good enough for them to pay for, is the challenge.

In Japan, wireless Web powerhouse NTT DoCoMo of Tokyo has 60% of that country's wireless phone market, and two-thirds of the company's 37 million clients have signed up for its i-mode wireless Web service. Apart from the fact that the Japanese are quick to jump on mobile gadgets, and the country's minimal desktop Internet penetration made a jump to mobile easy, DoCoMo also made a wise decision. It actually charges users for the ability to access games and other content, meaning revenue for itself but also very crucially for its content providers.

As The Economist put it in a recent article on the mobile Internet: "There is a growing waiting list of content providers awaiting DoCoMo's approval for their sites. That wealth of content attracts users who, in turn, attract more content. The result is a virtuous circle."

Telus Mobility has taken the same approach by becoming the first wireless company in North America to introduce a Pay Per Use model for the wireless Web on both our postpaid and prepaid phones. In other words, we charge per play, rather than per minute, as our competitors do.

With Pay Per Use, clients select the services they want and know what they'll pay for them. We offer our online content partners new revenue-sharing options for their best content, such as AtomicDove, making them that much more eager to continue developing the high-end services our clients will proactively select and pay for. And that completes the virtuous circle.

ROB BLUMENTHAL is vice-president of products and services at Telus Mobility in Toronto.

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