Archive for August, 2006

10 People I need to meet at CTIA Wireless I.T. & Entertainment 2006

Tuesday, August 29th, 2006

Media networking is all around us. Did you get this email? It takes you here: https://wirelessit2006.bdmetrics.com/portal/EventLogin.aspx
As part of the registration process for CTIA in LA, there were three questions with a long list of check boxes. They were:

1) Your Primary Job Function
I put “corporate management”

2) Your Company’s Primary Business Focus
I put “Applications or Software Developer”

3) Your Product Interests
I put “Wireless Data, Other”

Based on this information, here are the 10 People I need to meet at CTIA Wireless I.T. & Entertainment 2006:

Company: Azos AI, LLC.
Job Title: Co-founder
State / Province: Virginia
Country: United States
Action: View Details, Add to My Event Plan

Company: Azos AI, LLC.
Job Title: Partner
State / Province: Virginia
Country: United States
Action: View Details, Add to My Event Plan

Company: AirG Wireless Inc.
Job Title: VP Corporate Development
State / Province: British Columbia
Country: Canada
Action: View Details, Add to My Event Plan

Company: Drop In Media, LLC
Job Title: Co-Founder
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: Xtract Ltd
Job Title: President & Chairman
State / Province:
Country: Finland
Action: View Details, Add to My Event Plan

Company: THQ
Job Title:
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: Ontela, Inc
Job Title: CEO
State / Province: Washington
Country: United States
Action: View Details, Add to My Event Plan

Company: Transclick
Job Title: CEO
State / Province: New York
Country: United States
Action: View Details, Add to My Event Plan

Company: Lower Mars, LLC.
Job Title: CEO
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: Google
Job Title: Strategic Partnerships - Mobile
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Really? Are those the 10 people I NEED to meet? I mean, I MAY like to meet these nine companies, (why is Azos listed twice?) but if you asked me to create my own list of 10 People I need to meet at CTIA Wireless I.T. & Entertainment 2006, it would not include these companies.

Not to impugn the fine product that BD Metrics the company powering the “You-Based” tradeshow experience for CTIA, but I am having a hard time increasing relevance with this tool.

I clicked on the “Improve your matches” button and it took me to the “3 questions” screen again. I clicked a few more boxes:

For Company business focus, I put:
• Applications or Software Developer
• ASP - Applications Service Provider
• Content Provider or Aggregator

…and for product interests, I put:
• Mobile Entertainment
• Wireless Content
• Wireless Data, Other
• Wireless Email / Internet
• Wireless Services

Here is the new list of 10 people I need to meet:

Company: digitalVanity Software
Job Title: MD
State / Province:
Country: Germany
Action: View Details, Add to My Event Plan

Company: AirG Wireless Inc.
Job Title: VP Corporate Development
State / Province: British Columbia
Country: Canada
Action: View Details, Add to My Event Plan

Company: Waat Media Wireless Entertainment
Job Title: Managing Director
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: Feedtext Inc.
Job Title: CEO
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: iambic, Inc.
Job Title: COO
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: Sony PIctures Digital Entertainment
Job Title: Vice President, Production
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: Breakpoint
Job Title: CEO
State / Province:
Country: Poland
Action: View Details, Add to My Event Plan

Company: Digital Ignite
Job Title:
State / Province: Virginia
Country: United States
Action: View Details, Add to My Event Plan

Company: Sony Pictures Digital Entertainment
Job Title:
State / Province: California
Country: United States
Action: View Details, Add to My Event Plan

Company: rocket science
Job Title: chief scientist
State / Province:
Country: United Kingdom
Action: View Details, Add to My Event Plan

I still do not think I need to meet any of these people, though, if you are on either of these lists and feel otherwise, I would be happy to meet. And maybe that is the value of the system – these are companies that I really do need to meet but just don’t know it yet. That would be great, but given the manner in which the recommendations are derived, I have a hard time believing that. This tool does not capture basic necessary information to be useful such as whether I am buying or selling, specificity of intent, descriptive information, or any other qualifying details.

It does have a fairly useful search facility, though, that in concept would enable you to reach out to people without knowing their email address. I searched for “Verizon” and got a list of 63 people, most of which are Verizon Wireless employees. The tool lists title and company. I sent a message to “President and CEO from Verizon Wireless” suggesting we grab a beer and chat, but have not heard back yet. I wonder why that is. Dennis - let’s grab a beer and chat. I am free on Wednesday afternoon.

Is the President and CEO of Verizon Wireless likely to use such a tool to plan his schedule at CTIA? This brings me to the real problem here that, if solved, will unlock untold value to the tradeshow industry: How do you effectively filter the introductions so that Dennis Strigl trusts the tool as a value-added must-have and not just a spam generator?

The competition is always among sellers. There are always more people who want to sell than there are who want to buy. This means that Verizon Wireless gets inundated by too many requests to meet by companies that are not qualified in any way. They are drinking from a fire hose and need a way to decrease the flow by effectively filtering out the companies that are just noise to them so that the companies with real value get the attention they deserve. On the other side of this equation are companies looking to be “pre-qualified” so that they can get noticed.

My point is that the concept is awesome: Adding efficiency to the primary purpose of tradeshows. If BD Metrics can evolve their offering to truly deliver on that vision, they should easily be worth a billion dollars. Everybody goes to trade shows to meet other people in the industry, but it is in fact a very inefficient process for meeting people unless you already know them, in which case the only real value of a tradeshow is that it reduces the friction of meeting in person since everyone is already in the same physical location.

BD Metrics should do a deal with LinkedIn. Take the familiar LinkedIn concept, then assign a temporary attribute to yourself driven by registration called “at CTIA” and specify the dates. Then add desired objectives and visibility into companies by type and name.

Or failing that, make the tool more usable.

Ask me:
- The name of and category or type of company I work at

- What I am selling or buying by category and freeform description, which gets indexed

- What 10 companies I would like to meet and for what purpose, which leads to derivative intelligence: “if you want to meet Company A, you will really want to meet Company B, too”

Then derive intelligence from what you already know about every company and inform the matches, but also let me specify companies I know I want to meet. Then learn from it. Watch the patterns, make it smarter over time.

Set up an invitation-based introduction system to allow me to filter meeting requests, like Evite.

Then allow me to publish a calendar showing time availability. Maybe I reserved a room and people can meet me there. Let me specify that.

Given the specific location-based nature of a tradeshow, I would be in favor of a more fluid mobile application, too. It would show availability in real time with a simple messaging component to facilitate communication.

This is a great example of a verticalized LMNO that would be a hugely useful business tool.

Come to think of it, our platform could easily enable this. Come to think of it, one company that should be on my top 10 list is BD Metrics. How come they didn’t show up?

Chumby

Tuesday, August 29th, 2006

I am sitting in a hotel room right now, having just awakened to the pleasant wake up song I put on my Nokia N90 phone. But as you know, one of the basic tenets of the LMNO construct is that mobile phones are not really mobile phones anymore – they are connected media networking devices. Or more to the point, media networking is the new communication construct, and the “device formerly known as the mobile phone” is a device that is enabling this new communication construct. There is a long chain of value being built now to deliver the full value of this evolved communication, and one link is the device. We will see converged devices, like my N90, that is a phone, but also a text messaging device, camcorder, calendar and, given it’s 1.0 weight and size, doorstop or, in a pinch, bludgeoning weapon. We will also see verticalized devices like Danger’s HipTop (SideKick) which is so optimized for instant messaging that few people use it for much more.

Then there is Chumby, which falls well outside of the realm of devices that I had been considering likely to enable the LMNO communication revolution.

Let me step back for a moment and ask you about consumer electronic devices. There are certain categories that have not been refreshed for decades:
- the blender
- the calculator
- the digital clock

Ok, the blender is not exactly a consumer electronic, but I mention it to illustrate that the basic design is nearly perfect: It needn’t do anything more than blend. How do you improve it? The only way is industrial design, capacity and maybe the size of the motor. Other than that, when it does what it is supposed to do, the consumer is satisfied. Adding wifi to it doesn’t improve it.

Basic calculators are practically free now. Yes, you can buy graphing calculator to help with your calculus and trig, but I mean the basic adding machine that AP clerks everywhere still use. It adds, it subtracts, it multiplies and divides. Adding wifi to it doesn’t improve it.

What about the digital clock? I am looking at the one next to the bed right now. I didn’t even bother trying to set its alarm for this morning, and I never bother to use its big innovation, the radio. This one is a Sony, it has red numbers. This is the most tired of all consumer electronic categories. It is useful, but only to confirm information that I already have on my watch and my cell phone, both of which are more fault-tolerant than an electric clock if the power goes out. This particular application, the hotel room clock, annoys me the most, because there is information that I actually need while traveling, and can’t someone replace that clock with a device that provides that information? Rather than 6:18am, shouldn’t it tell me the weather and the traffic conditions on the route to my important meeting? How about showing my news alerts for the company I am going to meet so that when I get there I can intelligently discuss their big announcement today or the fact that they are being probed for irregular stock option grant practices?

My point is that this is a category of consumer electronics that could be massively improved and updated. Let’s add wifi to the digital clock. Then let’s make it display cool and useful information. And let’s make it open and easy to build widgets for, empowering millions of Flash developers to publish applets. Let’s even make it hackable, like a vanilla platform, the many purposes of which we have not yet contemplated.

When Steve Tomlin, an investor in Intercasting Corp, described Chumby to me six months ago and asked me how I would describe it, I immediately thought of the digital clock. “This is like a digital clock on steroids,” I said, because it is as simple to use as a clock, but built for today’s technological environment.

It is also “anti-tech” in that the industrial design is more like a beanie baby than a digital clock or a small computer. I like that even the skin is customizable.

It is sort of a soft-sided teletubby with an LCD screen and a wifi radio inside to which you can push information RSS-style. If RSS is a transport mechanism, Chumby is a termination point. Someone built a widget that syncs to a time server, so there’s your digital clock. It can also show local weather or traffic conditions. Add news alerts if you want. We are building a little Rabble widget just because. Why not stream audio and video, too? And why not put one in the kitchen as your recipe server rather than spilling soup on your laptop again? (Yes, I did.)

Now the fun part: Why not build a network of Chumbys that are all location-aware based on their IP addresses? Hack an upstream temperature transmitter into them that does nothing more than transmit micro-weather in locations not covered by major weather stations and then make the aggregate information available to whomever wants it. The weather report said it is raining in Chicago, but what about specifically in Bucktown, right now?

Anyway, check it out. This is the kind of special-purpose device that just makes perfect sense in the media networked world.

Building Blocks 2006 this week

Monday, August 14th, 2006

I just wanted to give a quick plug for Digital Hollywood’s Building Blocks at the San Jose Marriott this week. From the site:

“Building Blocks 2006 is the Premier Event for Transforming Entertainment, Communication Technologies & the Global Communications Network: TV, Cable, Telco, Consumer Electronics, Mobile, Broadband, Search & Email, VoIP, RSS, Blogs and Websites.”

I mention it here in the LMNO category because there is a pretty big focus on user-generated content and mobility.

Some interesting panels:

- User Generated Content: An Internet, Communications and Advertising Transformation

- Web 2.0 - The Next Iteration: How Next Generation Personalized Media is Rewiring the Web

- Social Networking in Mobile: Content, Communications and Monetizing (I am on this panel)

- Strategies in Wireless Devices and Services - from Audio & Video to Downloads: How Innovation Drives Avenues for Subscriber and Revenue Expansion

- Alternative Media & Advertising: Personalized Consumer Broadband, RSS Feeds, Blogging and Podcasting

- The Craigslist Effect: Transforming a Web-based Communications Relationship into a Commercial Personalized Information, Publishing and Advertising Enterprise

That last one looks really good.

Anyway, if you are in Silicon Valley, maybe take a look at the agenda and see if it might be worth a day. There are some interesting companies giving product demos too. Victor Harwood always puts on a targeted and useful show, and this one looks like it is going to be great.

Is MySpace driving Helio subs?

Friday, August 11th, 2006

I do not think so, just like MySpace isn’t driving Earthlink subs. I’ll bet it is driving data ARPU on Cingular, though.

I missed this when it came out, but Fierce picked it up this week:
Helio drops contract requirements for MySpace ‘friends’

“According to Helio’s MySpace page, the site’s members can get Helio service without a contract and no early termination fee. The offer is described as “limited time,” but no definitive date was set for its expiration.”

“No contract and no early termination fee.” Is that an offer that their demographic cares about enough to sign up?

Who is Helio competing with to attract subscribers?
Could it be Virgin Mobile? VMU’s “Live without a plan” messaging touting no contract and no termination fee was brilliant, and at the time it was an “anti-carrier” message from an anti-carrier: VMU was differentiated as a pre-pay option at a time when there were few similar options and no leader. This resonated with some important previously untapped consumer segments: Youth, The Uncreditworthy and The Disenfranchised. $19.99 handsets sold at 7-11s and drug stores are a required low barrier to entry if you want to approach these segments.

But Helio is post-pay, the handsets cost more than a Sony PSP, (think about that) and their retail distribution is in electronics retailers and cell phone mom and pops – places not frequented by the Uncreditworthy. The messaging does not match the delivery.

Helio is not effectively competing with VMU.

How about Boost Mobile then? This is the gold-standard lifestyle brand in the mobile space. They don’t even try to lead with “mobile carrier.” They lead with “lifestyle” and follow through with innovative programs that involve their brand in youth culture. They differentiate with the Chirp – their presentation of Nextel’s push-to-talk functionality. A quick search for their retail distribution listed Chevron and 7-11 in addition to Wal-Mart and others.

No, Helio is not competing with Boost, either, or any other carrier for that matter.

Helio’s new messaging is “Don’t call us a phone company” and “Don’t call it a phone.” I know that Deutsch/LA wanted to differentiate Helio from other carriers, but in fact Helio is undifferentiated in every way except for a deal with MySpace. (The exclusivity of which is rumored to expire soon.) Differentiation in such a crowded space is difficult. Telling consumers to say that you are not what you are is not the way to achieve it. Further, insinuating that calling your phone a phone is akin to a racial slur, when your phone is in fact just a phone, may also miss the mark.

Here is an article featuring Deutsch/LA discussing the Helio campaign.

“In one spot, a young woman introduced her new Korean boyfriend to her non-Asian family. The man remains unruffled, even as family members mistake him for a Japanese man and fall prey to other stereotypes. But the woman doesn’t fly into a tizzy until one of her family members compliments his ‘phone.’ ‘I told you he wouldn’t understand,’ she cries, leaving the room in a huff. ‘It’s got MySpace Mobile!’”

The main impressions of this ad are:
- Korean
- Racial tension between Koreans and Japanese
- “Phone”
- MySpace Mobile

The result of these impressions? I wager that 70% of Helio subscribers are Korean. Was that the intended effect?

I know Helio WANTS to be differentiated as a non-phone company selling non-phones to its ultra-hip, fashion-conscious technivores, but if the messaging claims differentiation for a product that is not differentiated, it will fail.

Communication is a commodity. How you facilitate communication can be differentiated, but you face competition for consumer attention. The way other companies differentiate their communication may appeal more to consumers. Worse, consumers may view all options as sufficiently undifferentiated as to deem them commoditized, thus forcing everyone to compete on price.

Here are the only ways network operators differentiate themselves along with example carriers in each category that specifically use that dimension in their messaging:

Network – Verizon Wireless (The nation’s most reliable network)
Customer Service – T-Mobile (Highest-ranked customer service)
Minutes/Price ratio - metroPCS, Cricket (unlimited calling for a flat fee)
Mobile web – T-Mobile (flat fee, unlimited access)
The deck offering - Verizon Wireless (Get It Now)
PTT – Nextel, Boost (“Walkie-Talkie”)
LBS – Sprint
Devices – T-Mobile (Sidekick)
“Fewer dropped calls” – Cingular (Fewest dropped calls)
Ringtones/Graphics/Games (no way to differentiate)
“Exclusive” content – Every carrier claims some kind of “exclusive” content
Prepay – Virgin Mobile
Price – T-Mobile leads the “low price, full service” category
Broadband data – Sprint and Verizon
Family plan – ALLTEL (innovative “Circle” offering is highly differentiated)
Media Richness - (no way to differentiate, though some carriers are hyping “3G” and Mobile TV)
Data Plan – T-Mobile by a nose over Sprint and Verizon because of their leadership in WiFi

In this interview before Helio’s launch, Sky Dayton talked about why people would sign up for Helio:

“You’re going to sign up for Helio not because you want to save a bunch of money, but because we offer something that’s really different.”

Interviewer Peter Rojas pushed him for details:
“What specifically is that something different that you’re going to offer?”

To sum up, Sky claimed differentiation on two dimensions:
- Devices
- MySpace

Matias Duarte, VP of Experience Design at Helio, is an indisputably innovative industrial designer, having worked on the HipTop device for Danger. You can see a lot of the HipTop in the KickFlip, which is great. His kung fu is strong, all must respect him.

But put a Helio handset next to any other handset and most consumers cannot tell the difference. Compare the KickFlip to the PEBL. Most consumers see an oval-shaped phone, period.

There is such close parity across all handset features and functions that a handset simply cannot be sufficiently differentiated.

Does your device:
- Have a bright, color LCD?
- Have ringtones/wallpapers/games?
- Have a good form factor and cool design?
- Play music and video?
- Have a camera?
- Have IM and email integrated?
- Have a web browser?

I just described both Helio phones. I also just described 95% of all handsets on the market today. The fact that the KickFlip makes interesting noises when it opens and closes simply isn’t different enough for a consumer to believe it is that much better than any other flip phone. And it is $200. Their other handset is $275. Are these handsets reason enough to switch to Helio?

I can get the Motorola RAZR on another carrier for $69, which does all the same shit, plus it’s thin. And, it has bluetooth, which my Helio phone does not have.

The “don’t call it a phone” message simply doesn’t work when it really is just a phone. You don’t want me to call it a phone? Then don’t sell me a phone. Give me an N-Gage, or a BlackBerry or a Sidekick. Nobody with a Sidekick calls it a phone. They call it a Sidekick, because that’s what it is. And they love it. Blackberry owners love their Blackberries so much that they created their own sub-brand to describe it: Crackberry. And it isn’t derogatory. They are admitting that they are so addicted to them that they are indistinguishable from crack cocaine.


So that leaves MySpace.

“Get MySpace on Helio exclusively.” Really? Do consumers even think it is exclusively available on MySpace? When Cingular did the alerts deal with MySpace, it took the teeth out of the “exclusivity” claim from Helio. Even if it is only alerts, to the average consumer, the main impressions were:
- MySpace
- Cingular

It doesn’t matter what reality is, MySpace is associated with Cingular, and that hurt Helio’s messaging.

The Big Disconnect
But let’s put that aside and get to the point: Having MySpace on Helio is not driving Helio subscriptions. They spent millions of dollars on an “exclusive” deal with MySpace because of the marketing value. It was supposed to bring legions of MySpacians through the door because it is so valuable to have MySpace on your phone that you would switch carriers, pay more for your plan and pay more for your phone.

That isn’t apparently working. Lesson learned. MySpace is a really cool site and many people love it. Just not enough to make them switch carriers. When people find MySpace on their existing handsets with their existing carriers, many will use it. More importantly, not everyone uses MySpace. When people find Friendster, Xanga, LiveJournal, Bebo, Piczo, Hi5, Tagged, Tagworld and Blogger on their existing handsets with their existing carriers, they will use them, too.

The Marketing
When Helio announced, Derrick was convinced that we were all going to standardize on Helio. “It’s going to be aimed at technophiles,” he said. He was one of the first to sign up. His impression now is that the offering is somewhere in between “technophile” and “myspace kid” not fully satisfying either. The deck is locked down, which means no open web access, which means unhappy technophiles.

The reality is that the average MySpace user is driven more by price than any other dimension on which a carrier may base their differentiation. The problem then gets compounded because I am who Helio should be marketing to: I have nearly unlimited money to spend on gadgets, I appreciate superior design and I require multimodal communication in my personal and professional lives. Helio has tied themselves so closely to MySpace now that when I think of their brand, I think “MySpace” and therefore there is nothing there for me because I do not have a page on MySpace. Helio’s marketing is not speaking to me, it is speaking to Gen Y and the Millenials. Derrick doesn’t care about the marketing - he just wants a cool phone and great service.

The True Competition, and why MySpace doesn’t drive subs to Helio
The competition Helio faces is not other carriers. It is other forms of communication. Skype is free. This is competing with all forms of voice communication. IM is free. This is also competing with other forms of communication. WiFi is everywhere. This is competing with paid wireless network access. Add on top of it that communication is a form of entertainment and you have an extremely tough competitive environment.

We employ two people under 21. They both had never had an email address until they worked here. Email is for old people like me. IM is for Millenials. The best thing Helio could do is offer Danger’s HipTop and lead with a data-only all-you-can-message plan.

Conclusion
Helio isn’t sure what it is, and it certainly doesn’t know what consumers think it is. Their only way up is to listen to the market and evolve quickly. Amp’d learned this lesson and made some drastic changes. Boost started as an “extreme sports” MVNO but listened to the market and now is as much about hip hop culture as it is about other key lifestyle verticals. Rather than telling the market they are not a phone company, they will soon find out that the market will tell them what they want. Helio’s job is to then pander to those consumers. I don’t think anyone was telling them they wanted MySpace on their phones. If asked, the likely response would be, “MySpace on my phone would be great,” but nobody was saying, “I will switch to your carrier to get MySpace.”

The average consumer views their mobile service provider as they do their ISP: “There is no reason to switch if I am getting decent service because they all do pretty much the same thing.” No matter what ISP you use, you can get to MySpace, and that’s the way it should be. You can also get to the social networking site of your choosing, which should be more important to network operators who can learn from Helio’s mistake: Nobody wants MySpace mobile enough to switch carriers, but they do want MySpace mobile enough to use it on their existing carrier. Consumers will decide what they want, and they want access to a bunch of sites similar to MySpace. Find a way to provide them access to what they want rather than what you think they want and you win.

Join the Mo list

Tuesday, August 1st, 2006

The new media guys at the record labels used to be the red-headed stepchildren of that industry, then ringtones happened and they are the rising stars in their companies, plus mobile music and video is changing the structure of labels and studios. This warrants some discussion.

MVNOs seemed like a good idea at first, and there are some early examples of success, but now that the big money is in with the big brands, people are predicting massive failure. Disney mobile and ESPN mobile make zero sense. Or do they? This warrants some discussion.

How about the prepaid model? Cricket, Tracfone and metroPCS are quietly growing and taking share from the national carriers. Is this the future? This warrants some discussion.

Mobile advertising. Who’s got that figured out? Looks like a big opportunity. Let’s talk about it.

Lastly, as the interest level and the noise level increases, the industry is attracting some real assholes to some positions throughout the industry they shouldn’t be in because everyone hates them. (You know it’s true - I’m not the only one to think it.) Isn’t that worth discussing too?

There is no open forum for all of the topics that affect our industry. there is no place for the mobilista to convene. A little intelligent discussion along with a little ranting and raving really couldn’t hurt.

All we need is a mobile industry mailing list. There are some closed lists and some blogs, but no open and free forum to discuss the mobile industry. So we registered a URL and set one up. It has nothing to do with our company and we have no agenda other than to create a forum because nobody else has done so. It is not limited to a particular topic or group or whatever. It is completely open and everyone who has an interest in the mobile space is invited.

Feel free to sign up. Send an email to: mo-subscribe@mobilista.net.