Mobile Portals Will Account for Over 55 Million Users by 2005, Says IDC

LONDON – MARCH 22, 2002 – Advertising and entertainment services will play a big role in the future success of mobile portals as long as campaigns are targeted, personalized and provide value to customers, says IDC research. By 2005, mobile portals will account for over 55 million users.


"Although the mobile portal market is going through a tough time now, in the medium-to-long term new technologies such as WAP, HSCSD, GPRS and UMTS – together with new and personalized applications – will help portals to become profitable," said Rosie Secchi, Research Analyst with IDC's European Wireless & Mobile Communications program. "Of course, we are still not sure which portals will survive, but believe that the success of any portal depends upon the quality and relevance of the services it offers."

Network operators, as well as many content, applications, and solutions providers, can and will make money out of mobile portals. However in the short-to-medium term, IDC believes it is mobile operators that are best positioned to do so. Mobile operators, mobile portals or content providers can use a variety of channels to provide the types of services they believe users want – and to make money via advertising, sponsorship, and monthly fees.

"The mobile portal market is still quite immature and operators are trying to gain control to allow them to keep most of the potential revenue that this market can bring," added Secchi. "Mobile operators and ISPs should use their market position to improve and facilitate the take up of mobile portal services instead of inhibiting the development of a new start-up."

Mobile Portals – The "Sleeping Beauty" Market Waiting to be Awakened? (IDC# HM01H) examines the demand for mobile portals in more detail, looks at some of the business and revenue models that can be utilized to harness this demand and provides general recommendations for market entry.

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