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Smartphone adoption and App Stores push European mobile betting user base past 2 million, says report

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Consumer smartphone adoption has been a major driver in a resurgent European mobile gambling sector, with user numbers expected to rise by more than 60% in 2010, according to a new report from Juniper Research. Mobile betting services across the region have been particularly successful, it says, with more than 2 million sports book customers in Europe now using the mobile to place their bets.

According to the report, leading betting firms have reported dramatic increases in mobile bets placed following the launch of browser-based apps optimised for the iPhone and Android operating systems. Furthermore, the decision by Apple to allow selected native apps – such as those from BetFair and Paddy Power – to be offered on the App Store has provided service providers with a new, highly visible and potentially lucrative delivery channel.

Meanwhile, the Juniper report noted that both adoption and usage levels received a further fillip during the World Cup in June, with Ladbrokes taking more than 100,00 bets via the mobile on the tournament.

According to report author Dr Windsor Holden, “The last twelve months or so have provided optimal growth conditions for mobile gambling services. With the growth in consumer smartphone adoption, mobile users are becoming far more comfortable with m-commerce in general, and gambling companies are benefiting from this greater affinity.”

Other findings from the Mobile Gambling Markets report include:

·         Mobile betting accounted for more than 70% of total global mobile gambling wagers in 2009, with the vast majority coming from the well-established iPAT service in Japan

·         The US is likely to become a key market in the medium term with the launch of mobile lottery services from 2011 onwards

Should operators be saying “us please”?

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MePlease launched a service yesterday that enables businesses to let their customers opt in to offers and treats via SMS, and then share those rewards with their social media networks. One of the first companies to sign up is existing customer Pizza Express, which is using the platform for its “Create Your Pizza Challenge”, which has drawn 50,000 entries since the competition opened.

Through on-table displays in every PizzaExpress location from October 18th to November 14th, customers will be prompted to text-in their vote for one of the five finalist pizzas they would like to see on the menu – using MePlease.  Once customers text-in, they will also be able to post their vote directly to Facebook to encourage viral sharing via MePlease.

The platform can also be used for offers to drive customer loyalty or footfall. I tested an offer from another MePlease customer – in this case a London bar. A quick text to a five digit number earned me a free drink offer – and a link to share that offer to Facebook. That was pretty much it but it worked, it used text as its entry point. A MePlease spokesperson told me that that was MePlease’s sweet spot – joining mobile to social media.

The spokesperson also confirmed that in terms of its business model, MePlease makes it money from the texts, and in some instances from its customers buying licenses for deeper data mining or other customisations of the platform.

Now, you will hear plenty about how operators need to be doing exactly what they are doing in this instance – providing the bulk SMS to MePlease and then butting out. But I find it sad that a service like this appears to be beyond so many (not all) operators. Please note, I’m not for a minute proposing that operators own all the retail-brand-mobile marketing relationships out there. They are mobile network operators, not loyalty card operators, coupon companies or ad networks. I appreciate that. Nor am I suggesting that they muller the businesses for stupid revenue share or per-transaction deals.

But in an instance like this: let’s look at what’s required and whether operators are in a position to deliver the necessary:

1. Access to text services. Er, yes

2. Publish and share offers or votes to Facebook through OpenGraph. Not that complicated.

3. Ability to talk the language of businesses and appreciate their concerns and needs. Seemingly much harder than it should be – but not unbreakable.

Operators could scale these services so efficiently, making it easy and cheaper for businesses to set up a particular campaign. A business customer could self-provision, with little fuss, a customer offer or similar campaign. It could become second nature for operators when they do business with enterprise customers to offer these sorts of services. The operator, unlike MePlease (with apologies to MePlease and others) have massive brands out there – if a business is thinking of getting something mobile up and running what is likely to be their first thought as to who can help them?

It’s not something that’s going to change the nature of mobile, it’s just an example the sort of tactical thing operators could be doing to add another revenue line to their business. I see so much operator bashing when operators have attempted any of this stuff that I think some of them have been scared off. They shouldn’t be – because there’s only going to be more of it.

Keith Dyer
Editor
Mobile Europe

http://www.mobileeurope.co.uk/webinars/upcoming-webinars

http://www.mobileeurope.co.uk/news/news-anaylsis/8151-beating-the-data-profit-gap

http://www.mobileeurope.co.uk/news/news-anaylsis/8168-app-stores-empty-stats-damaging-investment

http://www.mobileeurope.co.uk/news/news-anaylsis/8164-operators-urged-to-consider-mobile-3d

http://www.mobileeurope.co.uk/news/news-anaylsis/8163-governments-pressing-operators-for-location-intelligence

http://www.mobileeurope.co.uk/news/press-wire/8170-german-government-calls-in-gsmk-cryptophone-to-ward-off-cyber-attacks-

 

German Government calls in GSMK CryptoPhone to ward off cyber attacks

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The German Government has drafted in experts from GSMK CryptoPhone, a secure phone manufacturer, to combat security threats against mobile phones as part of a security research programme, dubbed ‘SMOG’.

Funded by the German Federal Ministry of Research, in collaboration with the German Federal Office of Information Security BSI, GSMK CryptoPhone will manage SMOG, focusing on stamping out network-level, over-the-air attacks to prevent unauthorised access to mobile phone data, portable computers, confidential information, emails, text messages and voice calls.

“Network protocol-level attacks that exploit weaknesses in a mobile device’s baseband processor have only recently become technically feasible. This has a massive impact on the security of all mobile devices linked to the world via modern cellular network infrastructures,” said Dr Bjoern Rupp, CEO at GSMK CryptoPhone.

“The scope of new threats against the confidentiality and integrity of information communicated via mobile devices has widened dramatically. GSMK’s holistic view of mobile device security and its capability to provide comprehensive protection against a wide range of attacks, will prove essential in preventing current and future attacks against government and corporate mobile devices.

“GSMK CryptoPhone’s management and execution of SMOG is a tribute to the company’s long-standing expertise within the mobile device security sector.”

The technology developed through this programme will be widely deployed to protect German government and corporate mobile devices in Germany and abroad.

Acision secures additional investment

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Acision, a specialist in mobile data, has announced it has agreed a $100 million package of new funding.  The new investment was led by existing shareholders Access Industries, with funding also provided by co-shareholders International Investment and Underwriting (IIU) and Atlantic Bridge.

Acision says it will use this additional funding to underpin its growth strategy and build on its position in the mobile data market, while continuing to provide solutions which enable mobile operators to control, optimise and monetise mobile data traffic. In recent months, Acision has announced strategic wins at operators such as Telus, Mobilink, Videocon Telecommunications, VimpelCom, MTS and Tata Teleservices.

Rory Buckley, Chief Executive at Acision, said: “We are delighted to have secured this additional investment from Access Industries and other existing shareholders at a time when the telecoms industry is still feeling the effects of the economic downturn.  This commitment provides us with the opportunity to capitalise on the exponential growth in mobile data, but is also testament to our robust business model, operator track record and growing footprint in fast-paced, high-growth markets such as mobile broadband.

“Leading research forecasts that global mobile data traffic is set to increase 39 times between 2009 and 2014.  This new backing ensures Acision is positioned to service this growth market by delivering cutting-edge next-generation mobile data solutions to mobile operators. It is also further evidence that our investors share our vision for the business.”

App stores’ empty stats damaging investment

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Potential opportunity for operators?

App store owners are forcing developers and their clients to operate without the information they need to decide which platform to develop on, according to one mobile agency.

Michael Tomlins, managing director of InfoMedia Services, said that his agency has had customers who have delayed developing applications because they can’t get access to any stats beyond volumes of overall downloads.

A major football club, he said, is one example of a customer that has built an iPhone app but doesn’t know where to go next, as the relevant data is not available to it. There are plenty of others, he added.

Nokia and Blackberry might both claim they have 2 million downloads a day, but potential developers are left with little else upon which to make investment decisions.

Tomlins said that the overall downloads per day is an “empty”  stat. “What is the proportion of premium downloads?  How much do end users spend “inside” the apps? How many apps are downloaded per customer? How long is an app held on a device before it is discarded?  How many updates are downloaded?  Without answers to these questions, developers and brands have no idea of the real reach and engagement of a mobile strategy,” he said.

Although there are app store analytics companies, such as Motally, providing information to developers, that tends to be only for a developer’s own app rather than providing overall stats.

So why aren’t app stores sharing the knowledge? Perhaps its a question of “no news” = “bad news”. I think they don’t want to stick their heads above the parapet,” Tomlins said. “The non-Apple platforms are potentially struggling in terms of premium sales because they don’t have a sophisticated retail network in place, like iTunes.

So could operators perhaps benefit from this reluctance to share data, stealing a march in terms of openness, as they build out their own app strategies?

“Certainly,” Tomlins said. “If, for instance, Vodafone360 had some great stats on in-app purchases, on their users’ tendency to buy, how long a user keeps an app before deleting it, average app revenues –  and I’m not saying that this would be the case –  but if they shared that then that would be a real bonus for our clients.”

Tomlins said such information would help operators in another way – by giving operators information on which handsets and platforms drive usage and ARPU – hence aiding ranging and pricing decisions.

What MePlease launch tells us about operators

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Should operators be saying “us please”?

MePlease launched a service today that enables businesses to let their customers opt in to offers and treats via SMS, and then share those rewards with their social media networks. One of the first companies to sign up is existing customer Pizza Express, which is using the platform for its “Create Your Pizza Challenge”, which has drawn 50,000 entries since the competition opened.

Through on-table displays in every PizzaExpress location from October 18th to November 14th, customers will be prompted to text-in their vote for one of the five finalist pizzas they would like to see on the menu – using MePlease.  Once customers text-in, they will also be able to post their vote directly to Facebook to encourage viral sharing via MePlease.

The platform can also be used for offers to drive customer loyalty or footfall. I tested an offer from another MePlease customer – in this case a London bar. A quick text to a five digit number earned me a free drink offer – and a link to share that offer to Facebook. That was pretty much it but it worked, it used text as its entry point. A MePlease spokesperson told me that that was MePlease’s sweet spot – joining mobile to social media.

The spokesperson also confirmed that in terms of its business model, MePlease makes it money from the texts, and in some instances from its customers buying licenses for deeper data mining or other customisations of the platform.

Now, you will hear plenty about how operators need to be doing exactly what they are doing in this instance – providing the bulk SMS to MePlease and then butting out. But I find it sad that a service like this appears to be beyond so many (not all) operators. Please note, I’m not for a minute proposing that operators own all the retail-brand-mobile marketing relationships out there. They are mobile network operators, not loyalty card operators, coupon companies or ad networks. I appreciate that. Nor am I suggesting that they muller the businesses for stupid revenue share or per-transaction deals.

But in an instance like this: let’s look at what’s required and whether operators are in a position to deliver the necessary:

1. Access to text services. Er, yes

2. Publish and share offers or votes to Facebook through OpenGraph. Not that complicated.

3. Ability to talk the language of businesses and appreciate their concerns and needs. Seemingly much harder than it should be – but not unbreakable.

Operators could scale these services so efficiently, making it easy and cheaper for businesses to set up a particular campaign. A business customer could self-provision, with little fuss, a customer offer or similar campaign. It could become second nature for operators when they do business with enterprise customers to offer these sorts of services. The operator, unlike MePlease (with apologies to MePlease and others) have massive brands out there – if a business is thinking of getting something mobile up and running what is likely to be their first thought as to who can help them?

It’s not something that’s going to change the nature of mobile, it’s just an example the sort of tactical thing operators could be doing to add another revenue line to their business. I see so much operator bashing when operators have attempted any of this stuff that I think some of them have been scared off. They shouldn’t be – because there’s only going to be more of it.

ZTE rolls out new switch for ultra-wide bandwidth carrier networks

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ZTE has launched the ZXR10 8900E new-generation core switch series, said to be the company’s first core switch based on the newly designed ultra-large capacity switching 100G+ platform.

The ZXR10 8900E is designed for full-service metro network and datacenter networks, and can meet the diverse needs of operators, including multi-service convergence, MPLS-based mobile broadband backhaul network, wholesale bandwidth, and core switching in datacenters.

“The key components of the ZXR10 8900E have integrated the latest results from ZTE’s IC design centre, including enhanced link-based OAM detection, highly reliable clock recovery and intelligent switching,” said Zhao Qiang, general manager in charge of data communication in ZTE’s carrier network product line.

“84% of the semiconductors in the switch are manufactured using the industry’s most advanced 40nm low-power consumption system. Factor in the use of energy-efficient Ethernet (EEE) technology and intelligent power and cooling system designs, and the entire system can increase performance by up to 10 fold while maintaining the same power consumption.”

The ZXR10 8900E is based on ZTE’s 100G+ platform, which features the largest port density in the industry.  With the innovative VSC (Virtual Switching Cluster), it supports 1+1 cluster and 1+3 cluster, to realise the centralised management of over 2000 10G ports. The new switch series offers complete QoS policies, as well as reliable protection in multiple levels at the link, network and service levels. 

In terms of core chip architecture, the ZXR10 8900E switch series supports up to 640Gbps of switching capacity per chip and 960Mpps L2-L7 packet processing capability, and thus is able to fully meet the processing capability of 100G and 40G ports.

Mobile providing back-up for alarms and CCTV

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Cut the fixed line, and the SIM kicks in

M2M platform provider Wireless Logic is touting another use for its technology- that of a back-up connection for connected security alarms and IP CCTV systems.
UK security company Guide Security Services has integrated a Wireless Logic SIM card and GPRS modem into an alarm control panel that, in the event the alarm’s telephone wires are cut, will switch over to a ssecure, Fixed-IP connection over a choice of mobile networks, selected according to geographical location.

 

Edward Cusack, Managing Director, Guide Security Services said, “A recent trend in the type of burglaries we encounter is where telephone lines are cut in order to prevent automatic communication from the security system to the alarm receiving company or local police.”
The combats this by introducing the wireless video streaming unit as part of a structured back-up service. In the event of the telephone lines being damaged the system automatically transfers to the Wireless Logic failover device.
“By using a Fixed-IP SIM cards within our control equipment, we can ensure that vital connectivity is not lost and that, even if the wires are cut, the SIM card can alert both our own remote monitored operators and the emergency services as soon as a property is breached. This will undoubtedly help us stop burglars in their tracks and minimise theft and damage to private property.”
Phil Cole, sales and marketing director, Wireless Logic comments: “Our SIM-based data connectivity service is increasingly being used in contingent situations where a secondary back-up system is required to ensure guaranteed connectivity. This is particularly important where people’s safety and security is important and the threat of theft and damage to property is concerned. By removing burglars’ ability to disconnect properties from the authorities, it’s hoped this will prove a deterrent.”

 

Operators urged to consider mobile 3D

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Movidius launches 3D chip for mobile devices

Mobile operators looking for the next differentiator in the device market could drive the adoption of 3D displays on phones, according to Bob Tait, Director o Marketing of chip developer Movidius.

Speaking as Movidius lauched its MA1133 chip – a chip that enables the live capture and conversion of images in and into 3D – Tait said that having devices in their portfolios that could offer a 3D experience could prove a “strong differentiator” for operators.

Movidius’ chip uses auto-stereoscopic display technology which means converging two captured images to give a 3D effect without the user needing wear glasses. Phones that have the chip would also require two cameras placed about 6.5cm apart on the device (about the average distance between the middle of the eyes on a person).

Mobile Europe saw a demo of the technology, using an Android UI and a screen playing back video captured, as well as 3D conversion of existing 2D content. The experience isn’t perfect and will require the user to adapt to how and where to hold the phone, but it certainly produced a visible 3D effect, which is particularly impressive in the live conversion of 2D video.

Tait said it would enable operators to exploit their existing content catalogues for 3D coversion, addressing one of the issues for the adoption of 3D so far – the paucity of content. Movidius’ technology overcomes that by allowing on the fly conversion of 2D content, a YouTube video say, on the device into 3D.

“The experience brings watching a video to a different level, which drives more traffic for the operator; the right kind of traffic too – billable traffic,” Tait said.

Tait said that although there is an increase in the bill of materials for including the extra sensor and the power it requires, as well as the chip itself, the exact amount would depend on the quality and functionality the device manufacturer wanted to achieve. He anticipated that an operator might have one or two 3D-capable devices in their range, rather than it becoming a mass-market play.

As well as viewing videos and images, Tait identified augmented reality (AR) apps and gaming as two other areas that could benefit from the introduction of 3D. For instance, 3D in AR could provide a depth of field so that flags and tags could appear on more properties in a given image than current 2D displays.

Tech specs of the MA1133

Movidius’ Myriad 3D MA1133 silicon and software platform is capable of capturing stereo still photos and video images using two separate high resolution cameras, and then processing them in real-time into 3D, whether still or video, using the powerful multimedia processing technology at the heart of the Myriad 3D platform. The same technology will process the 3D images for the best viewing experience on a 3D display without glasses (auto-stereoscopic).

MA1133 can also be used to view downloaded 3D or 2D content.  Movidius’ real-time conversion algorithms deliver matching of the content and the display field depth resulting in a 3D experience and avoiding issues that leave the viewer uncomfortable or even nauseous after prolonged use.

The MA1133 is the first in Movidius’ series of 3D products, with further product announcements to be made soon.

Governments pressing operators for location intelligence

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London to get high-accuracy technology by 2012?

Governments are increasingly requiring mobile operators to install high accuracy location technology and intelligence to enable authorities to track users and protect borders and specific facilities, according to one technology provider.

 

Brian Varano, CMO of TruePosition, a location technology company, told Mobile Europe that Government agencies are increasingly asking mobile operators to install advanced location technology, allied to network intelligence software, to combat crime and terrorism.

Using a variety of location techniques and software operators can trace call locations to high accuracies, but also track call networks, when SIMs are swapped, when non-authorised users enter certain areas, and so on.

Publicly, the location companies speak of 50m location accuracies, but the truth is that they can be a lot more accurate even than that. “We tend to stick to talking about 50m in public,” Varano, said. TruePosition markets a solution based on U-TDOA (Uplink Time Difference of Arrival) that measures the time taken for signals to arrive from a phone to cell sites. It requires receivers in the base stations in the areas the operator requires coverage, and can provide highly accurate location information even in urban or tough indoor environments.

All of TruePosition’s $200 million revenues now come directly from the Government sector, head of marketing Brian Varano said, but the company still needs to reach out to the telco sector itself to “sweeten the deal” for the installation of the equipment and technology. Varano said that the company is in discussion with “certain agencies” about deploying such advanced systems in time for the London 2012 Olympics.

 

“Operators need to know this isn’t going to have any adverse impact on their networks, or affect users in any other way,” he said. Where a commercial discussion is necessary, they can also be made aware that there may be commercial opportunities for them in having such high accuracy location technologies available.

Which emergency service do you require, and are you a premium user?

Varano said that the operator could sell accurate location as a premium emergency service – for instance customers willing to spend a couple of dollars a month would know that in the event of their calling 911/112 they would be located as accurately as possible.

Or the operator could sell back to Government agencies information about users – either on a per-use or subscription basis. Another application could be to provide high accuracy location information for vulnerable users, such as those with dementia or autism, Varano said. This could defray or justify the cost of investment in the equipment.

Of course, in some countries no such sweeteners are required – the Government gets what the Government wants. But in other territories TruePosition wants to make operators aware that installing the technology need not just be an imposition but could also be a revenue generator for them.

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