x x x Media Partner The / A Profile of The personal data Microsoft Qualcomm’s Peggy conundrum of MWC 2013 partnership two Johnson years on

Print Magazine To Be Distributed FEBRUARY 25TH - 28TH, 2013

www.INFORMILO.COM The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

Facebook co-founder Mark Zuckerberg could end up becoming the CEO of the world’s largest mobile operator. Analysts say a Facebook voice service has the potential to be the most disruptive communications solution in the smartphone era.

the Facebook Messenger app, and does not even have most of the features of a tra- ditional telephone service. But given that Facebook has more than a billion users, Ovum predicts that over time the evolu- tion and performance of its VoIP service will have a significant impact on how voice services are offered and priced globally. Obiodu and Strand both believe the launch of the VoIP service is about test- ing the market to see how receptive it is to Facebook offering voice services. The social network will extract itself from its deal with Skype for voice calls on its website and seek to roll out its own voice service across all of its platforms, predicts Ovum. That should set it up to enhance the service by including video and a service similar to Skype Out that enables calls to telephone numbers. Ovum also expects Facebook to open up the calling applica- Facebook: The First Mobile Operator To Serve One Billion Customers? tion programming interfaces to developers so that they can integrate the service into By jennifer l. schenker The popular social networking site, ID to create, no new app to install, and no Facebook apps and maybe even leverage which declined Informilo’s request for new user interface to get used to. In addi- WebRTC technologies for it. comment on its mobile strategy, has al- tion, as people on Facebook already have Ovum believes Facebook will not make When news leaked in January that Fa- ready cut deeply into operator revenues all their friends’ contact details, there will much money from doing this, if it makes cebook was allowing iPhone users in the from services like SMS and MMS because be no requirement to seek out friends and any at all. Instead, it predicts Facebook U.S. and Canada to make free phone calls users prefer to exchange messages and add them to a contact list. will use the VoIP service to enhance its through its Messenger App the techno- photos via Facebook for free. Now it could As a result, Facebook “could quickly platform to sell advertising. The collateral rati speculated the service could become start putting a serious crimp in voice traffic. emerge as the largest voice communica- damage will then hit telcos in the form of a Skype killer. “Its potential impact on the global tele- tions platform and the largest originator lost revenues. In its report, “The Future of Skype may, in fact, wind up being the coms industry is massive,” Emeka Obiodu, of calls on a global scale, “says Obiodu. Voice,” Ovum predicts that VoIP services collateral damage. Facebook, which has a a principal analyst at researcher Ovum said For now, Facebook is offering a free voice will cost telcos $479 billion by 2020. How- billion customers, could very well become in a recent research note. “A Facebook service, via a feature added to its Messenger ever, it believes the lost revenue will not the world’s largest phone operator. “There voice service has the potential to be the app, that is limited to letting its users in be earned by VoIP providers. Instead, the is no doubt that Facebook is now the big- most disruptive communications solution the U.S. and Canada call each other over telecoms industry will forfeit its share of gest threat to mobile operators,” says vet- in the smartphone era.” WiFi or cellular data. You call someone by the customer’s wallet to other industries eran mobile industry analyst John Strand, He cites two main reasons in his re- selecting that person’s name in Messenger, within the economy. founder of Copenhagen-based Strand Con- search note: with over a billion users, the tap the “i” button, and then press “Make sult, which published a February report on Facebook voice service will instantly be free call.” That person gets a push notifica- continued on page 23 Facebook’s role in the mobile ecosystem. available to more customers than mobile tion and you can then begin a free phone Facebook has more users than China operators or Skype can reach in both conversation. The VoIP service is just one Mobile, the world’s largest phone com- emerging and developed markets. more way of staying in contact with your See inside pany; its customer base is double that of Secondly, Facebook customers will be network while staying within Facebook. For a story about , and bigger than India’s Airtel, able to use the communication solutions The service only works on the iPhone, the 25 hottest global America Movil and Telefonica combined. without much hassle. There will be no new between customers who have installed mobile start-ups Technology news from around the globe

This Magazine was produced by Informilo, a media company that specializes in connecting business with innovation. Informilo runs a news site, www.informilo.com, and publishes independent magazines connected to major industry conferences. Mobile Platform Wars

Jennifer L. Schenker: Editor-in-chief Innovation in new user experiences is likely Audrey Mandela: Contributing Editor Contributing Writers: Eric Sylvers, to come from new software platforms Matt Cowan, James Silver, D’Arcy Doran Design: TheDesignSurgery.co.uk

By Jennifer L. Schenker

Contents When it comes to mobile operating the 2013 Consumer Electronics show in systems attention usually centers on the cameras, media streamers, video moni- Microsoft’s Move 01 23 Facebook: the world’s largest mobile operator? highly popular Apple iOS and Google’s tors and even an oven. There was also Android. But over the next two years, widespread support for Android applica- Microsoft has yet to grab a meaning- 02 03 New software platforms say analysts, innovation in user experi- tions that worked in conjunction with all ful market share in the mobile space. In  on the horizon ences is likely to come from new software manner of consumer electronics from TVs October it launched Windows 8, creating platforms. and domestic appliances to watches and a new user experience that stretches from 04 05 Mobile is transforming retail This year’s Mobile World Congress personal fitness devices. the desktop to tablets to mobile phones. will see major announcements from That said, handset manufacturers are Windows 8 uses two modes: the desktop 06 07 Facebook: the world’s Jolla (Sailfish OS), Mozilla (Firefox OS), struggling to differentiate themselves and mode (which looks just like Windows 7) largest mobile operator? ’s Tizen, and Ubuntu. All will make money on Android phones. Indeed, it and Metro, which is oriented for touch. claim advantages of openness and dif- is one of the reasons that Samsung sought The Metro user interface looks very 08 09 The Nokia/Microsoft  ferentiation over Android and iOS but to reduce its reliance on Android for promising for tablets as it offers more partnership two years on face a significant struggle to generate high-tier phones. Its Tizen platform has functionality than iOS and Android. Mi- the scale needed for success. That said, a so far gained limited support from other crosoft is billing Windows 8 as an easy- 10 11 Qualcomm’s Peggy Johnson successful launch in Brazil in early 2013 manufacturers, but represents a grow- to-use, integrated, turn-it-on and it just 12 13 TOp 25 Global Mobile and the requirement for an alternative ing proportion of Samsung’s portfolio of works user experience coming at a price Start-ups to dominant Android look likely to help smartphones and consumer electronics that is more akin to Android than iOS, Firefox OS begin to succeed where other devices in 2013. says Richard Windsor, who owns and 14 15 The year of mobile open-source alternatives have failed, pre- advertising? dicts mobile consultancy CCS Insight. The industry is ripe for change. Indeed, 16 17 The personal data conundrum operators’ need for an alternative to An- The three laws of robotics for mobile ecosystems droid and iOS is expected to be discussed 18 19 Closing the mobile  at the length during MWC, which will be gender gap held in February 25-28. PLATFORM AN ECOSYSTEM AN ECOSYSTEM AN ECOSYSTEM MUST BE EASY MUST BE EASY TO MUST CAPTURE 20 21 Cyberthreats to smartphones are growing The Current Duopoly AND FUN ACCESS SET UP AND USE TRAFFIC ON ITS TO DIGITAL LIFE OWN SERVERS 22 The operator start- To be sure, Apple’s iOS still has a strong up connection position in terms of high-tier market share. The user experience, combined APPLE with a thriving, easy-to-use system for ANDROID buying content and applications, makes the experience so sticky for users that BLACKBERRY the vast majority will never leave the WINDOWS ecosystem. It does, though, face several The information contained in this publication was challenges. It remains to be seen if Apple FACEBOOK N/A compiled using ethical journalism procedures. can successfully take on Android in the No legal liability can be accepted for any errors. AMAZON N/A No part of this publication may be reproduced lower end of the market. And, analysts say, without the prior consent of Informilo. the launch of new platforms will deliver a fresh wave of innovation such as extensive BEST noT GREAT support for HTML5, visual multitasking, deep third-party service integration, and OK BAD gesture-driven user interfaces. iOS offers none of these things, raising questions Source: Radio Free Mobile research Finding It Hard To Get Noticed about the future of iOS, its integration with In a Crowd? Informilo’s Print Magazines Reach Your Target OSX and the timing of a new platform At Key Industry Events architecture, says CCS Insight. Such as Web Summit in London and Android, for its part, looks set to domi- A lack of profitability among most li- operates Radio Free Mobile, a blog that Dublin; Le Web in London and Paris; nate this year’s MWC. Don’t expect to censees, coupled with fresh competition covers the mobile handset and handset NOAH; and DLD. see major flagship launches, though; the from rival platforms, could force Google software space. But Windows phones focus will be on mid- and low-tier devices, to reconsider Android’s business model, still face an up-hill battle in the market. which will make up most of the more than says Geoff Blaber, an analyst at mobile (See the Nokia-Microsoft story on pages 900 million smartphones that analysts consultancy CCS Insight. He predicts 8 and 9 for more information.) expects to be sold in 2013. Google could end up providing additional For more information on advertising incentives to a few favored manufacturers Blackberry’s Back rates, media kit and Informilo’s What’s more, analysts say Android, editorial calendar please email already the world’s most successful by offering a share of advertising revenue [email protected] smartphone operating system, is now in return for a more-tailored Google user On January 30th BlackBerry an- expanding into new areas. It appeared at experience on their phones. nounced its new Blackberry 10 platform

25-28 FEBRUARY | 2013 2 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

alongside new BlackBerry Z10 and Q10 devices. It also announced a company A successful launch in Brazil in rebranding that will see RIM become sim- Mobile data traffic market share split ply BlackBerry. “The successful launch of early 2013 and the requirement BlackBerry 10 and two new devices is a remarkable achievement but represents for an alternative to dominant between iPhone 5 and Galaxy SIII merely the first step in a long and chal- Android look likely to help lenging recovery that remains far from Firefox OS begin to succeed APPLE IPHONE 5 certain,” says CCS Insight. where other open-source SAMSUNG GALAXY SIII Is The Future Stacked? alternatives have failed, predicts Winners are far from clear. But one mobile consultancy CCS Insight. thing is: the jostling for market power among some of the players is limiting free- dom of choice. A February report from bills itself as “fully open” and seeks to Morgan Stanley estimates that Google push the adoption of HTML5 as a viable pays rival Apple roughly $1 billion per platform option for the mobile industry. year to remain the default search option HTML5 promises to enable devel- on devices like the iPhone and iPad. But, opers to create apps that work on any 44% Google, in turn, is allegedly blocking rival operating system and plug into a device’s Yandex by prohibiting Android handset advanced hardware and software even makers from integrating its Russian rival if the apps are not native. The first com- as a default search engine. mercial deployment is planned in Latin Browsers are also raising questions America with Telefonica early this year. 56% about openness. They can run appli- Other telcos – including Deutsche Tel- cations and have the huge advantage ekom, Etisalat, Smart, Sprint, Telecom of being able to offer developers a true Italia, Telefonica and Telenor – have also “write once run anywhere experience” signed up. Expect a flurry of announce- but – up until now — that has come at a ments during Mobile World Congress. cost. These applications do not run in Operators are eager to have an alterna- native code and as a result have both a tive to Google and Apple. They have performance and a functionality disad- placed their bets on Linux and Micro- vantage compared with those written soft in the past, only to see those efforts directly to iOS, Android or Windows sputter. Phone. The integration may lead to a For the next year or so the impact of smoother experience but integrating Mozilla looks like it will be minimal. But the software stack has a darker side. Ap- it is gunning for emerging markets, the ple, with its native apps, locked-down biggest growth markets going forward. platform and tight control over which And it has demonstrated – with the Fire- developer apps are released; Google with fox browser – that it can rally developers Global smartphone unit shipments 1,400 its Chrome browser being integrated to take on a giant and wrest away signifi- into Android’s operating system, Google cant market share. When Firefox came on search technology and Google Plus; and the market Internet Explorer had 98% of (m) 2009A-2015E Microsoft, which is also developing in- the global market. Today it accounts for 1,200 tegrated offerings for its desktop and 54% of global browser usage. The mobile EMERGING MARKETS phone operating systems, makes inde- industry also has its share of market lead- pendent offerings and interoperability ers who looked like they had the market DEVELOPED MARKETS much more difficult. sewn up. Think Symbian or Nokia. For Mozilla, the organization behind the now, Apple and Google may be ahead; 1,000 Firefox browser, believes it is wrong – but there is plenty of opportunity for new and unnecessary — to bind users of mobile entrants. The war is by no means over. It phones to a single corporate entity. “The is just getting started. fight is about keeping the Internet — in- cluding the mobile Web — an engine of 800 choice and innova- tion as well as economic value,” Mozilla Chairman Mitchell Baker said, in an in- terview with Informilo earlier this year. 600 Mozilla is launching what it hopes will be a powerful counterweight: the Firefox OS, a browser-based operat- ing system for mobile devices that 400

200 adio Free Mobile

0 Source: R 2009 2010 2011 2012 2013 2014 2015

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 3 Technology news from around the globe

How Mobile Is Transforming Retail

By Jennifer L. Schenker

It won’t be long before you could be anywhere — in either a private or public setting — and could scan everything in sight. The phone will ask you if you are buying or selling, superimpose a price tag on each item, and ask you if you want to complete the transaction virtually or in a store. An app like this could come in handy when you spot someone in the airport wearing a coat that you covet or when you fall in love with an antique clock at a friend’s place. So just how will your phone — with the help of a good broad- band connection — use pixilated images to price the products? That is where eBay’s database comes in. The Silicon Valley company, which started out 16 years ago as a marketplace for the sale of goods be- tween individuals, today has an extensive inventory of new products and a huge database of quirky old ones. eBay is zooming in on the precise mo- ment when people become aware of and interested in a product and making it easy to point, click and buy using PayPal, its mobile payment service. It is called situ- ational commerce and Steve Yankovich, the company’s vice president of innova- tion and new ventures, promises “it is going to change everything.” It is already changing that nature of what eBay is and does. “It is no longer just about e-commerce; we are now playing in the ocean of all commerce, “ says Yankovich, who, along with PayPal Window shopping with PayPal: By scanning QR codes with their mobile phones shoppers in Amsterdam’s trendy 9 Straatjes district can use PayPal to directly buy products they President David Marcus, will be attending see through the store’s window – regardless of whether the store is open or not – and have them delivered to their home addresses. the Mobile World Congress in Barcelona February 25-28. be tied to old-fashioned cash registers, countries that predominantly use chip It is no surprise that eBay now exhibits freeing sales assistants inside stores to and pin technology. At MWC PayPal will alongside mobile operators at the show. eBay is zooming in on the help customers check out and pay from announce that it plans a European launch Mobile is core to eBay’s business, whether precise moment when the aisle or changing room. Context-rele- for a fully-encrypted, palm-sized chip it’s facilitating the actual transaction or vant location-based shopping experiences and pin device that can be paired with an the payment processing itself. Today, people become aware of and will become the norm, meaning custom- existing smartphone via Bluetooth. The the company says, one in three eBay interested in a product and ers will be able to skip waiting in line, by device will be available in the UK this Marketplace transactions has a mobile ordering remotely and then picking up summer and rolled out to other countries component. making it easy to point, click their food or favorite drink in-store. later. Greedy Goat, which sells ice cream eBay mobile finished 2012 with $13 and buy using PayPal, its mobile In this new omni-channel world, mer- made from British goat’s milk in Borough billion in payment volume — more than payment service. It is called chandise and promotions will not only Market, a popular London food and pro- double what it generated the prior year be consistent across all retail channels, duce market, will be among the first to use — and PayPal mobile handled almost $14 situational commerce and adapting to consumers who want to use the device to accept credit card payments. billion — a 250% increase over 2011. Steve Yankovich, the company’s different channels simultaneously — the Card reader devices aid small busi- In 2013, the company expects each unit offers will be personalized according to nesses that normally would not be able to to exceed $20 billion in payment volume, vice president of innovation and a specific consumer’s purchase patterns, handle credit card transactions. But a key a testament to how the mobile revolution new ventures, promises “it is social network affinities, website visits, to eBay and PayPal’s success in the market is rapidly changing the retail landscape. loyalty programs and other mined data. is that the majority of its innovative new The next wave of services is ushering going to change everything.” eBay is helping lead the way. It plans services work with existing hardware. A in a dramatic blurring of the lines between to launch new hardware at the Mobile few of those services include: e-commerce, m-commerce and high- World Congress and will showcase some street retail. Nearly half of local shopping lives easier in several different ways. Soon of its state-of-the art services. ssIn France, customers can already or- now starts on a mobile browser and ap- there will be no more worrying about Almost a year ago the company der a meal from McDonald’s on smart proximately one in three mobile transac- redeeming coupons or loyalty points — launched a PayPal Here mobile card phones via the GoMcDo app or online. tions is actually done in store. “For us the anything you have earned in the offline reader device that competes directly with They can pay with PayPal, scan their smart phone is the hub — it is absolutely or online worlds will be digitally recorded Square, a credit-card reader and mobile confirmation QR code at a kiosk at any key,” says Yankovich. and automatically credited at time of pur- app developed by Twitter co-founder of the 30 participating locations, and Physical retailers are starting to use chase, no matter where you buy. Since Jack Dorsey. To date neither company “check in,” eliminating the need to wait Internet technology to make consumers’ payments are mobile they will no longer has launched a comparable solution for in the general line. PayPal is rolling out

25-28 FEBRUARY | 2013 4 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

ing, all they need to do is pull up their PayPal Mobile payments Pizza Express app and pay with PayPal. The waiter is notified wirelessly on his POS system and the customer is free to $25m $141m $750m walk out the door. ssIn the Netherlands, shoppers in Am- sterdam’s trendy 9 Straatjes district can use PayPal to directly buy what the mannequins are wearing in the store windows with a single tap of the but- $4bn $14bn ton — whether the store is open or not 2008 2009 2010 2011 2012 — and have it delivered to an address of their choosing. ssIn the U.S., an eBay-developed Holiday Gift Finder iPhone app for toy store FAO Schwarz suggests gifts for shop- pers based on gender, age, price range Paypal global footprint and product type, leveraging available inventory in the FAO Schwarz eBay Store. Shoppers can buy the item through the app using PayPal. sseBay’s mobile marketplaces app is Steve Yankovich, vice president of innovation and now available in eight languages in 52% 190 25% new ventures at eBay, leads a newly-formed team 190 countries around the world and of payment volume markets reached of PayPal business is focused on driving innovative new approaches to localized versions of eBay’s RedLaser from international by PayPal globally cross-border trade connecting retailers, merchants and sellers with comparative shopping app are avail- consumers around the world. able in Brazil, the U.S., UK, Germany, France, Italy, Spain and Australia. ssMajor operators like Vodafone are put- a similar service at Jamba Juice in the ting near field communications (NFC) PayPal 2012 year in review U.S. and has partnered with NCR, the at the center of their m-commerce payment solutions provider, to make it strategies. The SIM-card-anchored easier for other restaurants to integrate service, which requires specially- $145bn $5.6bn $41.5bn 692m 123m 5.3m Total Annual Q4 payment Q4 payments active Q4 new this payment method into their exist- adapted mobile phones and point- payment revenue volume Busiest accounts accounts ing systems. (This service will also be of-sale terminals, aims to replace the volume Up 26% Up 24% quarter and still Best quarter offered at two of the restaurants inside plastic cards populating customers’ Up 22% from 2011 from Q4 2011 ever growing in 8 years the Mobile World Congress this year.) wallets and purses. (See the story on from 2011 ssIn the United Kingdom, customers at pages 6 and 7.) But like PayPal’s Mar- over 400 Pizza Express restaurants can cus, Yankovich dismisses NFC, which settle their bills without having to flag has been slow to roll out. “NFC doesn’t down a waiter. Once they are done eat- matter. We don’t need it,” he says.

In keeping with its broader goal of ad- Left: A new version of dressing not just e-commerce or mobile the mobile credit card commerce but all commerce, eBay has reader PayPal Here, launched a Red Laser bar code scanning based around chip app that helps consumers compari- and pin technology, son shop in the physical world. It also will launch in the UK launched a Red Laser “In-Store Experi- this summer and later ence” service that helps retailers com- become available municate with their customers on the throughout Europe. home screen of a kiosk by showing special Greedy Goat, which offers, store maps, and items relevant to sells ice cream made them when they step into a particular from British goat’s milk store. Best Buy was the first retailer to in Borough Market, a partner with RedLaser and geofence its popular London food roughly 1,100 US locations (when cus- and produce market, tomers who have opted in get close to a will be among the first to use the device store, or go to a particular part of a store, to accept credit card promotions pop into their smartphones). payments. It was quickly followed by Target and Walgreens, which geofenced nearly 1,800 and over 8,000 stores in the U.S. respec- Right: In China, eBay tively. “We want to help people experi- has partnered with ence the physical store in a different way,” Xiu.com to create says Yankovich. eBay Style, an iPhone If Yankovich has anything to do with and iPad app that it expect the company to keep powering features new fashion things that don’t look at all like what was merchandise from once considered a typical eBay transac- eBay’s most trusted tion, whether it be in physical stores or U.S. sellers. on mobile phones.

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 5 Technology news from around the globe

Mobile Money Goes Mainstream

By D’Arcy Doran US Proximity Mobile Payment

“Open your wallet,” Blackberry’s Frank been one of the biggest early beneficiaries. Transaction Value, 2011-2016 Maduri says and recalls how, not long It saw mobile payments surge to $14 bil- billions and % change ago, people carried around physical lion last year — a 250% increase over 2011. photos of their spouse and their chil- PayPal projects its mobile payments will dren. Those family photos, he says, were rise to $20 billion in 2013, which it says the first of your wallet’s contents to will be “the year that we will truly see $62.24 jump onto smartphones. disruption in the shopping and payments The rest of your wallet — the cash, space.” (See the story on pages 4 and 5.) receipts, and various credit, debit and Globally, mobile payments are expect- 283% loyalty cards — will all make the leap onto ed to rise to more than $1 trillion by 2017, your smartphone too and soon, he says. according to separate estimates by market 254% “It’s replaced every single thing; money analysts IDC and Juniper Research. That 234% is the last, and the toughest, frontier,” trillion-dollar figure, IDC says, is just the 228% says Maduri, senior director in charge tip of the iceberg — 2.5% — of the total of NFC products, mobile payments and possible transactions that could be settled mobile wallets at Blackberry, formerly through mobile payments in 2017. Research in Motion. “But it’s definitely The volume of transactions depends $24.63 going to happen.” on whether financial institutions, opera- tors and retailers can agree on common 153% standards. If the stakeholders insist on going separate ways, they will fall short of Major operators like Vodafone the forecast, IDC says. But, it adds, if the $7.51 are putting NFC at the center of market consolidates into a few dominant platforms for each country, it could be $0.64 $2.12 their m-commerce strategies. much higher than $1 trillion. $0.17 Vodafone is building its own Advancing mobile payment capabili- 2011 2012 2013 2014 2015 2016 ties is a priority for Blackberry, Maduri mobile wallet that will use NFC says. NFC mobile payment technology is technology to send encrypted standard on its 7 series and latest 10 series proXIMITY MOBILE PAYMENT TRANSACTION VALUE BlackBerry smartphones; the company is % CHANGE data over short distances to building NFC infrastructure for Canadian carry out secure transactions. network operators and has developed Note: Includes point-of-sale transactions made by using a mobile device its own Visa-certified Secure Element It plans to work with banks, Manager (SEM) wireless payment system as a payment method, including by swiping a mobile device at a register retailers, transport and utility for devices that support NFC. or tapping a mobile device to complete transaction; excludes purchases companies, event organizers, Blackberry hopes its system can com- of digital goods on mobile devices, purchases made remotely on mobile pete with others like Google Wallet, software developers and which has been rolling out with the help devices that are delivered later on, and transactions made via tablets. advertisers to host a range of of MasterCard Paypass and Isis, a mobile Source: eMarketer, September 2012 wallet initiative led by AT&T, T-Mobile services, including loyalty plans and Verizon that has begun trials in Aus- and gift voucher credits. The tin, Texas and Salt Lake City, Utah. The fragmented world of mobile pay- card transactions and use their phones recently began selling the credit-card SIM card-anchored service ments is moving quickly. Maduri recalls instead. Its payment app combines loyalty reading units in its 7,000 U.S. stores for aims to replace the plastic a recent visit to a store where at the till, cards, vouchers and payments into one $10 each. the retailer accepted Paypass, PayPal, and step, making the customer’s experience Successful mobile money services have cards populating customers’ NFC-based contactless card payment, smoother while generating valuable data to fine-tune the technology to match cus- wallets and purses. along with other types of mobile wal- for the company. tomer behavior and expectations, Maduri lets. He believes e-commerce is push- “More than 7 million customers now says. He points to PayPal’s $14 billion in ing bricks-and-mortar stores to invest in use one of our mobile payment apps — mobile transactions last year. In coffee shops, fast food restaurants order to remove any friction at the point translating into 2.1 million mobile pay- “Why?” he asks. “A single click. What and mall clothing stores, the point-of-sale of sale. Some retailers are using mobile ment transactions each week — with we have to do and where we’re going next technology is already transforming. And payments to replace cash registers and hundreds of thousands of additional is how do you eliminate clicks and friction after years of discussion dominated by check-out lines altogether. Starbucks downloads each for the consumer.” banks and network operators, Maduri “They’re terrified of things like show- week,” Starbucks spokeswoman Linda says, the focus is now shifting to execu- rooming, where people are going into Mills says. Operators Embrace NFC tion and the other half of the stakeholder their store to try things on and see what The Starbucks app is based on Square, equation: retailers and consumers. they really look like and then going home a credit-card reader and mobile app de- The killer app for mobile banking The spread of smartphones, conveni- and buying them on Amazon,” Maduri veloped by Twitter co-founder Jack might be something as simple as enabling ent experiences, better security and inte- says. “They can’t sit still.” Dorsey. The start-up, which was created customers to check their balances at any grated solutions is driving m-commerce Retailers have to change for many rea- for people who are cut out of traditional time, anywhere, says Andrew Griffin, di- growth. sons, he adds. “I think we’re at a point payments services, is now processing $10 rector or market Intelligence at Monitise, “Mobile is quickly becoming the new now where we’re seeing critical mass for billion worth of transactions a year. This the British company that provides the normal,” eBay CEO John Donahoe told them adopting mobile. It is happening.” experience led Starbucks to invest $25 technology behind mobile money services analysts in January. He speaks from ex- Starbucks is one of the pioneers in en- million in Square in the start-up’s lat- for banks and other organizations across perience — eBay’s subsidiary PayPal has couraging customers to abandon cash or est round of fund-raising, and the chain the globe. It handles hundreds of millions

25-28 FEBRUARY | 2013 6 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

Above: Starbucks says each week its customers make 2.1 million mobile payment transaction, and that hundreds of thousands of customers download its mobile app.

Right: Starbucks’ success with the Square mobile Mobile payments by the numbers payment application prompted the coffee chain to invest $25 million into the start-up’s latest round of financing. By 2017, worldwide purchase volume over By 2017... mobile devices will exceed $1 trillion. Far right: Paying for a taxi with a is now a ...global mobile payment transactions will standard service in a number of countries. nearly quadruple from 2012’s figures, While this figure is large in dollar rising to more than $1.3 trillion. terms, it is a tiny fraction (just above 2.5% in 2017) of the total amount of of transactions annually for millions for teamed up with Visa to help develop our ...NFC transactions will account for 54% worldwide commerce that is theoretically customers. Griffin says on average some own stored value account and are en- of the total value of mobile payments. addressable by mobile payments. of Monitise’s banking clients are seeing gaging with banks to offer them space customers log in to check their balances for their own virtual cards in our mobile ...retail transactions for physical goods Most of the dollar volume will be in the 20 times per month or more — up to five wallet, which we plan to roll-out during bought via mobile will account for form of ecommerce spending done over times the usage for Internet banking. the year.” 30% of eRetail, and 4% of global retail mobile devices. “What we see in the press about mo- Amid the debate over NFC’s prospects, transactions. bile money is maybe missing the point $4 billion in mobile payments were made Proximity payments will ride upgrades about this fantastic increase in frequency using the technology last year and that ...global NFC retail transaction values in point-of-sale and mobile device of contact with your bank that mobile number is expected to rise to $191 billion are now expected to reach $110 billion, technology to become the second-largest brings,” Griffin says. “They’re definitely in 2017, according to market analysts ABI significantly below the $180 billion category of mobile payments spending, a first screen for people who use them Research. The research firm predicts it previously forecast. about evenly divided between the two and it’s that basis for wanting to add more will take at least two years for the market Source: Juniper Research methods. functionality to the app.” to agree on standards but transportation In developed markets the services that and ticketing will be the first market to Worldwide mobile payment transaction Person-to-person or point-to-point are growing fastest are bill payments, m- benefit. values will surpass $171.5 billion in 2012, (P2P) fund transfers will be a distant commerce, and bank transfers. Nine of the top ten mobile phone man- a 61.9% increase from 2011 values of third, mainly due to a lack of common “Every innovation has to be ten times ufacturers have already released NFC- $105.9 billion. standards for sending money across greater than what it’s replacing so simply enabled handsets to the market with 102 borders using mobile devices as well as waving a mobile phone at a point-of-sale million shipping last year, ABI Research The number of mobile payment users will a lack of locations for adding cash to and terminal to make a payment is not better says, adding it expects that number to reach 212.2 million in 2012, up from 160.5 withdrawing cash from the system. than pulling a card out of your wallet,” more than double this year. (The major million in 2011. Griffin says. holdout is Apple, which said it did not in- Source: IDC

PayPal President David Marcus might clude NFC on its latest iPhone because it Gartner expects Web/WAP access Proximity mobile payments (point-of-sale be NFC’s most vocal critic. In January he felt its existing barcode scanning features to account for about 88% of total payments using a mobile phone as a predicted that NFC will fail to gain mass were sufficient.) transactions in North America and adoption this year. Monitise’s position is to wait and see payment device) reached just $640 million about 80% in Western Europe by Major operators like Vodafone are whether NFC payments go mainstream in 2012. But that’s up 283% from 2011; 2016. NFC transactions will remain putting NFC at the center of their m- on a country-by-country basis, and then help it will rise a further 234% by the end of relatively low through 2015, although commerce strategies. Vodafone is build- banks add NFC to their banking apps, Griffin 2013. ing its own mobile wallet that will use says. Ultimately, stakeholders will have to growth will start to pick up from 2016.

NFC technology to send encrypted data work together based on consumer behavior. By 2016, proximity mobile payments Eastern Europe will see the highest user over short distances to carry out secure “The history of payments has been all will have exploded in the US, and total growth between 2011 and 2016, albeit transactions. It plans to work with banks, about interworking networks, which are transaction value will hit $62.24 billion. from a smaller user base. Asia/Pacific retailers, transport and utility companies, all about getting massive scale, but [with Source: eMarketer event organizers, software developers and each party] taking only a tiny slice of that tops all regions in the number of users, advertisers to host a range of services, as an interchange fee, and that’s really followed by Africa. Nearly 72% of consumers aged 20-40 in including loyalty plans and gift voucher what Monitise is built on,” Griffin says, the U.S. and the UK use mobile devices By 2015, 33% of consumer brands will credits. The SIM card-anchored service paraphrasing a line often spoken by the while in-store to compare prices, but the integrate payment into their branded aims to replace the plastic cards populat- company’s CEO Alastair Lukies. majority leave before making a purchase. ing customers’ wallets and purses. “The point is 10% of a big num- mobile apps. Source: Accenture Interactive “Vodafone’s approach is very much ber is better than 100% of nothing.” Source: Gartner Group one of collaboration for NFC,” Vodafone spokesman Simon Gordon said. “We’ve

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 7 Technology news from around the globe

A Two-Year Report Card: The Nokia/Microsoft Partnership

By Matt Cowan

When Stephen Elop took the helm of the finally proving its merits? Can Nokia The technology research firm Gartner struggling mobile handset giant Nokia “Two years is a really important and Windows indeed create a vibrant recently published data showing that on the last day of summer in 2010, his third ecosystem that will thrive and while Nokia’s handset sales improved in to-do list was short but daunting: re- milestone and my assessment evolve to one day challenge smartphone the fourth quarter, thanks to the launch vamp the corporate culture of a Finnish would be that Nokia is probably leaders like Apple and Samsung? To of new Lumia Windows Phone 8 models institution and reinvent the business for mark the second anniversary of the and a good response to its Asha mobile a new age. Quickly. not as far along the road as it Nokia Microsoft alliance, Informilo phone line, its share of the total market Less than five months later, he would had expected to be,” says Ben decided to put together a report card continued to drop from 23% in Q4 2011 appear in front of investors at a swanky Wood, Chief of Research at to assess progress. to 18%, the lowest it’s ever been. London hotel to announce a bold shift “Two years is a really important mile- Gartner’s data also shows sales of in strategy. In the lead-up to the event, a CCS Insight. “It’s proved a lot stone and my assessment would be that Nokia smartphones in 2012 dropped memo was leaked in which Elop likened more challenging to get traction Nokia is probably not as far along the road 53.6% from the previous year. Hardly the Nokia’s predicament to being aboard a as it had expected to be,” says Ben Wood, trajectory Elop had been looking for when burning platform. Still, Elop’s leap went around Windows Phone than Chief of Research at CCS Insight . “It’s he cast off from that burning platform. further than many had expected. Nokia they had anticipated.” proved a lot more challenging to get trac- Ten months ago, the head of mobile announced it was forming a strategic al- tion around Windows Phone than they at IHS Screen Digest Ian Fogg penned liance with Microsoft (which also hap- had anticipated.” a warning that Nokia’s Windows Phone pened to be Elop’s former employer) in strategy was on the brink of failing. The an attempt to create a third mobile ‘eco- recent hoopla around Lumia sales has system’ to challenge Apple and Google failed to impress him. “Nokia has mark- Android devices. This would come at the edly little momentum with Windows expense of Nokia’s own Symbian operat- Phone shipping 4.4 million in Q4, the ing system (see burning platform) and launch quarter for Windows Phone 8. The the Meego mobile OS which was being launch quarter for Windows 8 itself. It’s developed jointly with . quite a small number,” he tells Informilo. Microsoft CEO Steve Ballmer joined By comparison he points out that Elop on stage to help spell out the case for , historically a much smaller player the move. “This partnership with Nokia in the mobile market and now firmly in will dramatically accelerate the develop- the Android camp, shipped 8.7 million ment of a vibrant, strong Windows Phone smartphones in the same quarter. ecosystem,” he predicted. Still, observ- ers were also cautioned not to expect an overnight transformation. 2011 and 2012 would be “transition years,” counseled the Nokia press release. As the Finnish handset maker entered Nokia’s flagship Lumia 920 comes in an array 2013, it stunned observers by announcing of arresting colors, and features a sleek that it had achieved underlying profitabil- polycarbonate casing. ity in the fourth quarter of 2012 thanks to better-than-expected sales of its flagship Lumia smartphone. Nokia wasn’t due to issue its fourth quarter and full year results until Janu- ary 24th, but details of these accomplish- ments were made public two weeks in advance. Investors rewarded the company with a healthy boost to the stock and talk of a turnaround began in earnest. For Elop, the timing was fortuitous. He’d said the transition would take two years, and two years on he needed some- thing to show for all of the pain the com- pany had endured. Still, there was a caveat: the next quar- ter wasn’t shaping up to be quite so strong. Two weeks later, Nokia announced plans to cut its dividend for the first time in over 20 years to preserve cash. Market enthusiasm cooled once again. So has the company truly turned a corner? Is the bet on Windows Phone

25-28 FEBRUARY | 2013 8 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

Nokia Chief Executive Stephen Elop has bet his company’s future on the partnership with Microsoft, the American software giant where he once worked as an executive.

share of the global handset market peaked in the fourth quarter of 2007 at over 40%. This was the same year that the iPhone was launched and Android was unveiled. In just over five years, the newcomers have become the industry’s dominant forces and Finnish company that’s been iterating since it was founded as a paper mill in 1871 is seeking yet another suc- cessful reinvention. Can a shift like we’ve seen over the past five or so years happen again? “The mar- ket is more complex now, which makes it more stable,” says Gartner’s Milanesi. “It takes more than a good product to get successful. In the good old days you had one hit and you got to the top even if just for a few quarters. Think of Sony- and Motorola.” Asked for a prediction of where Nokia will be in a year’s time, Wood ducks. “I just don’t know. I’ve been sitting here “Although Nokia has made some sible for the vitality of the environment. er to support it. Without their support, quarter on quarter for the past two years headway with Windows Phone, it’s very “Microsoft has done a decent job there will be fewer apps....It becomes a trying to look into the crystal ball and modest headway in a market that is mov- but it’s taken them 18 months to get to virtuous circle if you do it right, which is predict Nokia’s future,” he says. “What I ing very quickly and where Nokia’s com- 125,000 apps. BlackBerry has launched what’s happening with Google’s Android will tell you is, Nokia’s 2013 portfolio is petitors are selling smartphones in ever BlackBerry 10 with 75,000 apps and the and Apple and it becomes a vicious circle their most important set of new products greater numbers,” says Fogg. expectation of having 100,000 within 12 that goes in the exact opposite direction if that they have ever delivered.” Data from Strategy Analytics shows weeks. And they seem to have won the you don’t get that critical scale. And at the Two years on, the Nokia/Microsoft that Nokia retained its position as the hearts and minds of the developers more moment Windows Phone 8 is sub-scale. alliance is intact and is clearly making world’s third-largest smartphone vendor effectively than Nokia has been able to,” It just isn’t there.” some progress. But realizing the vibrant in 2012, but its share in the competitive says Wood. What’s needed now, he says, is growth and competitive ecosystem the companies upper end of the market dwindled from “To be a smartphone platform, it needs that bears a resemblance to a hockey stick. envisaged at the outset will depend on 16% to 5%. to have wide app support,” agrees Fogg. Of course, recent history demonstrates what they do next. The company’s latest portfolio of Lu- “An ecosystem needs to be a certain scale just how quickly things can change in the mia smartphones has drawn praise for or the third-party developers won’t both- mobile sector. Gartner data shows Nokia’s standing out from the crowd. The flagship Lumia 920, for instance, comes in an array of arresting colors, and features a sleek polycarbonate casing in addition to the Exhibit 1: Global Smartphone Vendor Shipments things Nokia is known for: impressive camera technology and reliable maps. and Market Share in Q4 2012 Source: Strategy Analytics A significant improvement on previous efforts, agrees analyst Linda Sui, but not Global Smartphone Vendor Q4 ‘11 2011 Q4 ‘12 2012 yet the hero model that will take down the iPhone or Samsung S3. Shipments (Millions of Units) “I have a nickname for the iPhone and Samsung 36.5 97.4 63.0 213.0 I call it the Hotel California phone,” jokes Apple 37.0 93.0 47.8 135.8 CCS Insight’s Wood. “Once you’re in, it’s very difficult to leave. Once you spend a Nokia 19.6 77.3 6.6 35.0 ton of money on apps and accessories and Others 63.9 222.8 99.6 316.3 then you’ve got Apple TV and an iPad and everything else, before you know it you’re Total 157.0 490.5 217.0 700.1 worshipping at the iTemple and it’s dif- ficult to find another religion.” Gartner mobile analyst Carolina Mil- Global Smartphone Vendor Q4 ‘11 2011 Q4 ‘12 2012 anesi is somewhat more optimistic. “I Marketshare % think they have reached the turning point. They have now the foundation done and Samsung 23.2% 19.9% 29.0% 30.4% need to build on it and fast,” she says. Apple 23.6% 19.0% 22.0% 19.4% She concedes, though, that Nokia and Nokia 12.5% 15.8% 3.0% 5.0% Microsoft have likely not made as much progress as they’d hoped to in terms of Others 40.7% 45.4% 45.9% 45.2% creating a competitive third ecosystem. Total 100.0% 100.0% 100.0% 100.0% The very term “ecosystem” implies a fertile landscape where seedlings can sprout and flourish. In the mobile space, it Total Growth Year-over-Year % 55.9% 63.8% 38.2% 42.7% is the apps that produce the oxygen respon-

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 9 Technology news from around the globe

By Jennifer L. Schenker

Peggy Johnson, a scheduled keynote a Circuitous Route Mobile Maven speaker at the 2013 Mobile World Con- gress, became an engineer, and later Peggy Johnson took a circuitous Not many women have given keynote speeches at the switched to business, at a time when wom- route to get where she is today. One of en were not encouraged to enter either eight children, her father died when she Mobile World Congress, an annual industry confab. But profession. Today she is one of the most was three. Her mother married a wid- then again Peggy Johnson, Qualcomm’s executive vice- influential people in the mobile sector. ower with seven children of his own, Johnson, 51, the only woman on making Johnson the second youngest president and president of global market development, Qualcomm’s senior management team, of 15 children in a single household. is credited with pioneering the world’s All were expected to go to college and has been blazing trails all of her life. first large-scale commercial , to pay their own way. Although she under the Brew initiative, helping de- had clear strengths in math and sci - velopers monetize their applications ence she was advised by a high school long before Apple came along. She guidance counselor to study business played a key role in Qualcomm’s foray and enrolled as a business major at San into mobile TV with MediaFlo, and, in Diego State University. her role as executive vice-president of Her degree in engineering was due Qualcomm in the Americas and India, to a fluke encounter. Johnson had a job helped lead its push to bring the ben- on campus to help pay tuition and was efits of wireless to emerging markets. delivering mail to the engineering de- She currently serves as Qualcomm’s partment. The faces of the two women executive vice-president and president working in the office lit up when she of global market development. The job entered because they though she was entails overseeing Qualcomm Labs, the a prospective student, then fell when company’s internal incubator, which they learned why she was there. Un- focuses on next generation wireless deterred, they proceeded to pitch her technologies. on the program, which was, of course, “Qualcomm usually gives her the based around two areas she loves: math innovation things – challenges that and science. She switched majors the everybody else is afraid to take on — next day. Her mother was speechless and she does it and executes with great when she reported the news, says John- success,” says Candace Johnson (no son, but thought it was great. relation), another industry trailblazer Upon graduation she went to work who co-founded the Global Telecoms for General Electric’s military electron- Women’s Network (GTWN) 21 years ics division, coding anti-submarine ago. Qualcomm’s Johnson has been a warfare technology. In 1989 a job an- regular attendee of the GTWN’s annual nouncement for a software engineer power breakfasts at Mobile World Con- caught her eye. The recruiting com- gress over many years and has also been pany was a four-year-old start-up called a speaker at the invitation-only events. Qualcomm. Following its 20th Anniversary cel- Early in her 23-year career at Qual- ebration in Barcelona at the 2012 Mo- comm Johnson worked on the team bile World Congress, the GTWN began that helped pioneer one of the first working with industry lobbying group commercially successful machine-to- GSMA to raise the profile at the MWC machine data applications, the Om - of the swelling ranks of women who niTRACS mobile asset tracking and play a leading role in the mobile sector. data management system. It was, in The idea is to get more women included fact, one of the earliest location-based in the official program, a goal which is services and it helped revolutionize in keeping with GTWN’s tradition of the trucking industry. “It was a magi- promoting senior women in the sector. cal thing,” recalls Johnson. This early In 2011 the GSMA appointed Anne Bou- form of contextual contact, which re- verot, a former executive vice president lied on triangulation between satellites of mobile services for France Telecom for positioning, “changed productivity Orange, as its director general and as in the trucking industry,” she recalls. a board member, but the majority of At first, truckers were worried about keynote speakers at the annual event “Big Brother” and privacy issues — rais- continue to be men. ing some of the same questions that In recognition of the many ways consumers have today about location- women are shaping the sector the GSMA based services. But, she says, when has invited more women to take the po- the individual truckers found that the dium at this year’s event in Barcelona. new technology meant that they could It is no surprise that Johnson is among seize more opportunities and get big- the women asked to give a keynote this ger paychecks, they quickly embraced year: “She is a role model for all technol- the system. ogy and business drivers,” says GTWN’s As a leader of the Brew initiative, she Candace Johnson. (See the box profil- helped pioneer the world’s first large- ing some of the other women speaking scale commercial app store, helping at the 2013 MWC, which takes place developers monetize their applications Peggy Johnson, Qualcomm’s executive vice-president and president of global market development. February 25-28 in Barcelona.) and inspiring the growth of what is now a multi-billion-dollar industry. Johnson has often been tapped to

25-28 FEBRUARY | 2013 10 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

help the company test the waters in Labs’ Gimbal context-aware tech- new areas and not all of the dossiers she nologies are being used to deliver ex- Mobile Industry Shapers was given turned into successful lines of clusive content and real-world game business for Qualcomm. For example, experiences for the “Star Trek Into Some of the other women leaders speaking at MWC this year the company ended up pulling out of Darkness” application based on the the mobile TV business, selling its FLO upcoming movie from Paramount. 4G/LTE technology. Over the past spectrum to AT&T in 2010. The “Star Trek Into Darkness” app, 25 years Cook has held executive and Johnson says she regrets nothing. which become available in late Janu- Padmasree Warrior, Chief board of director roles at operators “It takes a certain amount of fortitude ary, includes: an audio scan function Technology and Strategy around the world including: MTC- to take on new areas,” she says. “Each that can be turned on to automatically Officer, Cisco Vodafone (now Zain) in the Middle and every one has some risk to it. I was recognize and reward users for watch- East; (Germany); deeply involved in the FLO product and ing “Star Trek Into Darkness” content Warrier, Cisco’s Chief Technology Cable & Wireless (now Vodafone) in we ended up selling the spectrum and on TV and other media; an image scan & Strategy Officer, is charged with the UK; and Nynex (now Verizon) in repurposing the platform. You have to function that enables users to interact aligning technology development the U.S. She is the founding director embrace change. I am drawn to that with images printed or viewable in the and corporate strategy. She helps drive of several European and Asian wire- risk aspect of product development real world; a geofencing function for technology and operational innova- less companies: Debitel (Germany), and don’t mind moving on if it doesn’t location-based experiences; the push- tion across the company and oversees Telestet (now Wind Greece), and PT work. It is like building an early-stage ing of new “Star Trek Into Darkness” strategic partnerships; mergers and Satelindo of Indonesia. business. There is all that early-stage content, such as videos, images and acquisitions; the integration of new excitement. But if it doesn’t work you wallpapers delivered directly to us - business models; the incubation of new just have to let it go.” ers’ mobile devices; and special offers technologies; and the cultivation of only available to app users. world-class technical talent. Warrior Vicki MacLeod, member of the Beyond entertainment and the use holds a bachelor of science degree in OECD’s Business and Industry “My message to other women of contextual technologies for m-com- chemical engineering from the Indian Advisory Committee merce, the mobile industry has a chance Institute of Technology in New Delhi, in this industry is you don’t to transform health and education and a master of science degree in chemical MacLeod is an international consult- have to be a man in skirts,” improve the lives of women around engineering from Cornell University, ant in communications policy, with a the world; a diversified work force will and an honorary doctorate of engineer- special focus over the last decade on says Johnson, who has help the industry achieve those goals, ing from New York’s Polytechnic Uni- broadband infrastructure and appli- excelled at a variety of high- says Johnson. versity. Prior to joining Cisco in 2007 cations. She began her career in com- Johnson encountered sexism in the she was the Chief Technology Officer munications policy working for the powered executive roles sector early on in her career: a Japa- at Motorola. Fast Company Magazine Australian government in Canberra. while raising three children. nese firm she interviewed with made recently named her one of the “100 As executive director of the industry it clear they didn’t want women engi- Most Creative People in Business.” thinktank International Institute of “Be who you are and you will neers and once, when walking into a Communications in London in the bring a valuable voice to this meeting room with colleagues, she was 1990s she worked on telecom policy industry. We need the quiet and mistaken for a secretary and asked to Ann Mei Chang, Senior reform and drove the institute’s re- provide coffee for the group. Johnson Advisor for Women and search agenda in media ownership the aggressive and they both laughed those things off but struggled Technology at the U.S. State and convergence policy. She also spent have roles to play,” she says. with various managers’ insistence that more than a decade working as an advi- she speak up frequently at meetings and Department sor on public policy and international “We are under-represented be more assertive. She told her bosses Chang is a member of the GSMA regulatory issues for Australia’s tel- and I believe you need a mix, a that they would need to measure her mWomen working group, the Inter- ecom operator Telstra. She is an ac- by other metrics because those traits national Steering Committee on the tive member of the OECD’s Business diverse group of employees, to aren’t part of who she is. mobile program at the Cherie Blair and Industry advisory committee and build the best products and the “My message to other women in his Foundation for Women, and a member regularly attends working party meet- industry is you don’t have to be a man in of the international steering commit- ings of theinformation, computer and best services.” skirts,” says Johnson, who has managed tee of the Global Telecom Women’s communications group. She is also a variety of high-powered executive Network (GTWN). Prior to her current secretary general of GTWN. roles while raising three children. “Be role, Chang, who earned a computer Her current job focuses on helping who you are and you will bring a valu- science degree from Stanford Universi- Qualcomm stay ahead of the curve on able voice to this industry. We need the ty, led engineering for Google’s mobile Janice Hughes, Founding next-generation wireless technologies. quiet and the aggressive and they both applications and service worldwide, Director, Redshift Strategy That is where the work at Qualcomm have roles to play. Women in technol- including products such as search, ads, Labs, the company’s internal incuba- ogy careers are under-represented and I Google Mobile Maps, Gmail, YouTube, Hughes is an experienced strategy con- tor, comes in. “There is a severe lack believe you need a mix, a diverse group Goggles and Voice Search across all sultant who has also worked across of spectrum in the world; the demand of employees, to build the best products major platforms. She oversaw 20x the mobile, fixed, radio spectrum, for data is expected to grow 1,000x over and the best services.” growth of Google’s mobile business entertainment, music and retail sec- the next ten years,” says Johnson. “We Johnson volunteers to go into in just three years, delivering over $1 tors. Redshift Strategy, Hughes’s latest know we don’t have 1,000 times more schools and encourage young girls to billion in annualized revenues. endeavor, provides strategic advice, spectrum out there so we have to come consider a career in engineering in the investment services, and insights into up with a different answer.” To that mobile sector, a path she believes can rapid technological change in the me- end, Qualcomm Labs is working on help truly change the world. “What Laureen Cook, Principal dia and telecoms industries. a technology called LTE Broadcast, gets me excited is the impact that wire- Industry Advisor, Global Prior to Redshift Hughes, who has a which aims to make delivery of video less will have on the world when it Telecommunications, Media degree in economics from Cambridge over mobile networks more efficient, comes to areas like education, health University, was a lead partner in Booz allowing wireless operators to better and the empowerment of women. We and Technology, World Bank Allen’s European TMT practice, where exploit their existing spectrum, infra- are only at the beginning,” she says. Prior to her recent move to the World she managed multimillion-pound as- structure and chipsets to address the Through her current job, she intends Bank, Cook, who earned an MSc in signments for major corporate clients surging demand for data. to keep blazing trails, helping the in- Telecoms from the Rochester Insti- across the world. She has also advised Qualcomm Labs are also working dustry to further transform the way tute of Technology and an MBA from governments in Australia, New Zea- on “digital sixth-sense technolo- people live and work. Long Island University in New York, land, Hong Kong, the UK and Con- gies” which allow smartphone apps was Alcatel-Lucent’s vice-president tinental Europe on regulatory issues. to bridge the digital and physical worlds. For example, Qualcomm

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 11 Technology news from around the globe

SHAZAM Top 25 Global (WWW.SHAZAM.COM) LONDON, UK What it does: Discovery service for music, TV shows, and ads. Mobile Start-ups Why it’s hot: Bar-goers have since 2002 been holding their handsets up to speakers so the Shazam app can identify the music they’re To identify the most promising global mobile start-ups Informilo asked listening to. Since then it has morphed into a powerful marketing tool: the user can now some of the most active investors around the globe to nominate and not only identify the music in, say, an ad, but evaluate companies outside their own portfolios. Some are well- also buy the goods featured in the ad, concert tickets, the track itself, etc. It boasts 275 known, others are below the radar but unlikely to stay that way for million users in more than 200 countries and long. Below find our picks for the top 25. 33 languages, adds two million new users a week, and claims to have identified more than five billion songs. Now it is expanding onto SQUARE AIRWATCH second screens, making TV ads “Shazamable,” allowing its large user base to buy not just (WWW.SQUAREUP.COM) (AIR-WATCH.COM) music but all sorts of merchandise connected SAN FRANCISCO, CA, U.S. ATLANTA, GA, U.S. with programming. What it does: Revolutionizing everyday trans- What it does: Enterprise-grade mobile manage- actions between buyers and sellers with free ment solutions. INMOBI to optimize multiple sources of advertising credit card reader for the iPhone, iPad, and Why it’s hot: AirWatch is a global leader in in a single product – including direct ads, Android devices. mobile device security and management (WWW.INMOBI.COM) house ads, ad network, and real-time bidding Why it’s hot: Over two million individuals (MDM) systems, with 5,300 customers and SINGAPORE through MoPub Marketplace. The company and businesses can now accept credit and nearly 1,000 global associates. The company has What it does: Mobile-first customer engage- was founded by former AdMob and Google debit payments using Square. The company brought in no outside capital; it’s predominately ment platform. team members and is backed by Accel is processing over $8 billion in payments funded by operating cash flow. AirWatch Why it’s hot: InMobi provides end-to-end Partners, Harrison Metal Capital, and Jafco on an annualized basis. Closed a Series D claims it manages virtually every mobility solutions for mobile advertising, including Ventures. Claims to be the world’s largest financing round in September 2012 (investors project with more than 20,000 devices. Its award-winning rich media ad creation, mobile ad exchange. MoPub’s marketplace included Starbucks), and recently expanded impressive customer base includes the top four distribution, tracking and optimization. gives advertisers access to over 300 million into Canada. Square will face competition in global Fortune companies, nine of the top 10 US Backed by SoftBank, Kleiner Perkins unique users and served 1.5 billion ads a day. Europe from the likes of PayPal, Payeleven, retailers, six of the top 10 global airlines, and two Caufield & Byers and Sherpalo Ventures, the SumUp, and iZettle, which is currently in of the top three global hotel groups. company reaches 578 million consumers, WHATSAPP seven European markets and has nearly $50 in over 165 countries, through billions of million in investment from American Express EVERNOTE mobile ad impressions monthly. In January (WHATSAPP.COM) and MasterCard. InMobi acquired Overlay Media, experts in SANTA CLARA, CA, U.S. (WWW.EVERNOTE.COM) context aware computing. Crowned the Best What it does: Cross-platform, free mobile mes- MO DE REDWOOD CITY, CA, U.S. Mobile Ad Network at November’s Mobile saging app. What it does: An app that’s “helping the world Entertainment Awards in London. Why it’s hot: This app, which bypasses SMS (WWW.MO-DE.CO) remember everything.” charges, has the potential to be disruptive both NAIROBI, KENYA Why it’s hot: Evernote is a unified collection CELTRA to the cellular networks and the hardware What it does: Mobile micro credit. of apps that help people get things done. vendors it challenges by taking the concept Why it’s hot: Mo De launched in May 2010; it More than 50 million users and 2,000 (WWW.CELTRA.COM) across all platforms. WhatsApp Messenger has live operations in seven countries in Africa businesses use Evernote to increase their CAMBRIDGE, MA, U.S. is now available for iPhone, BlackBerry, with another 10 countries on the way. The workday productivity. In May 2012 the What it does: Rich media mobile advertising. Windows Phone, Android and Nokia. Started company’s anchor product is Airtime Credit company announced a $70 million Series Why it’s hot: The company’s AdCreator platform by two ex-Yahoos in 2009, WhatsApp now has Service (ACS), which provides emergency D investment led by Meritech Capital and has been widely adopted across the largest an estimated 250 million users, and handles airtime credit to prepaid mobile subscribers CBC Capital. The financing will support mobile publishers, ad networks and other 10 billion messages a day. The app is paid-for, (typically paid back at the subscriber’s next growth into new regions; expansion into new ecosystem players. Eight of the top 10 media to keep it ad-free, “and we hope to keep it that reload). Mo De has to date facilitated over 200 verticals; and strategic acquisitions (starting agencies also use the platform. In January Celtra way forever,” the website says. million transactions in 6 African countries. with Penultimate, the most popular digital announced a $4 million strategic investment The service has helped operators like Airtel handwriting application for iPad, acquired led by SoftBank Capital. The investment will be SNAPCHAT and MTN increase both subscriber revenues right after the funding round). used to explore business opportunities in Japan and talk time on their networks. Earlier this and the Asia Pacific region, and to expand the (WWW.SNAPCHAT.COM) month the company won Global Entrepreneur WIBBITZ company’s engineering presence in the U.S. VENICE BEACH, CA, U.S. of The Year at IBM’s Smart Camp. Celtra became profitable in Q3 2012; revenue What it does: Now you see it, now you don’t WWW.WIBBITZ.COM growth for the year exceeded 300%. Named photo-sharing service. LOOKOUT SECURITY TEL AVIV, ISRAEL one of the Most Innovative Tech Companies of Why it’s hot: Snapchat claims to be the fastest What it does: Text-to-video platform that can the Year by the American Business Awards and way to share a moment on iPhone and (MYLOOKOUT.COM) automatically turn any text-based article, post won MassTLC’s Innovative Mobile Technology Android: up to 10x faster than MMS. The user SAN FRANCISCO, CA, U.S. or feed into a short video. of the Year Award. controls how long friends can view messages What it does: Security software for mobile Why it’s hot: More than 20,000 sites have before they disappear. Growing fast: more platforms. generated videos using Wibbitz, which also MOPUB than 60 million messages are sent each day by Why it’s hot: Security is a growing problem allows publishers to monetize their videos millions of users, up from 50 million messages for users of mobile devices. Lookout delivers through pre-roll advertising. In June 2012 (WWW.MOPUB.COM) in December. Recently raised $13.5 million in award-winning protection from malware, the company closed a $2.3 million Series SAN FRANCISCO, CA, U.S. venture financing, led by Benchmark Capital. phishing, privacy violations, data loss, and loss A round headed up by Horizons Ventures, What it does: Mobile monetization platform for Snapchat taps into fears of social media of the phone itself. Lookout now has 30 million Li Ka-shing’s investment fund; previous Android, iOS and mobile web. mistakes that could live forever. users across 400 mobile networks in 170 investors Initial Capital and lool Ventures also Why it’s hot: MoPub is a one-stop ad serving countries, making it a leader in mobile security. participated. Wibbitz is ready to grow along platform designed for mobile application with the rise in popularity of online videos. publishers to manage their ad inventory on iOS and Android. MoPub enables app publishers

25-28 FEBRUARY | 2013 12 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

Why it’s hot: Appsfire claims it has served 1.5 clips — for free, with no limits, and legally. Just billion app recommendations to its users a few weeks after its release, the company’s since its launch in 2010. More than 1.5 million edjing dj turntable app was downloaded people use the app each day, and its users have 500,000 times; it’s been ranked among the top been responsible for more than 9 million app apps overall in the U.S., France, and Italy. downloads. In 2012 the company acquired Appstatics, a tool to track the performance of ROVIO iOS and Mac apps in the App Store rankings. (WWW.ROVIO.COM) WANDOUJIA ESPOO, FINLAND What it does: Developer of casual games across (WWW. WANDOUJIA.COM) multiple platforms. BEIJING, CHINA Why it’s hot: Angry Birds, Rovio’s breakthrough What it does: One of the top Chinese search game, hasn’t just made it on to multiple engines for apps. platforms — it’s now part of the collective Why it’s hot: Founded in early 2010, Wandoujia consciousness. Launched in 2009, the game now has more than 100 million app was downloaded more than 1 billion times installations in China. The company’s search in 2012 (30 million during Christmas week engine for apps has partnered with more than alone), with more than a quarter billion 30 app stores, and has indexed more than monthly active users in December. Angry 400,000 apps on the Android platform. Each Birds Space was 2012’s most downloaded paid day, its users download more than 17 million iOS app. The games have spawned real-world apps from its platform. Wandoujia’s cloud stores to sell fluffy versions of its grumpy WRAPP on top of earlier investment of $17 million; sync service, which launched last year to help avians and pigs as well as apparel. the latest round values the company at $140 users sync photos, messages and contacts, (WWW.WRAPP.COM) million. The business is solidly backed for has more than 6 million users. The English- ZEPTOLAB STOCKHOLM, SWEDEN further development as it moves to take on language version is at SnapPea.com. What it does: Social gifting service that allows Uber in the U.S. (WWW.ZEPTOLAB.COM) friends to contribute to digital gift cards via SPOTIFY MOSCOW, RUSSIA Facebook and mobile apps. WAZE What it does: Mobile game developer Why it’s hot: It brings together retail and social: (WWW.SPOTIFY.COM) Why it’s hot: Zeptolab’s Cut The Rope has racked connecting via Facebook means retailers get (WWW.WAZE.COM) STOCKHOLM, SWEDEN up 300 million downloads across all platforms. demographics and other analytics, allowing PALO ALTO, CA, U.S. What it does: Streaming music service with It was the first iOS game to win a BAFTA Award, targeted advertising while at the same time What it does: Free navigation and traffic ser- close social media interactivity and mobile as well as an Apple Design Award. ZeptoLab, tapping into the feel-good vibe of gift-giving. vice that creates “local driving communities apps. which has raised no outside funding, has It aims to have its offering embedded with that work together to improve the quality of Why it’s hot: Allows users to stream music from extended the franchise into toys, board games, e-wallets and is already trialing a service with everyone’s daily driving.” the big music players and smaller independent clothing and online entertainment, with more PayPal. The company’s team includes seasoned Why it’s hot: Has a community of 30 million labels using either a free, ad-supported service brand extensions planned in the coming year. entrepreneurs and its board of directors global “traffic resisters” who keep users or a premium ad-free service. Now requires a In October ZeptoLab launched a Web-based includes Skype co-founder Niklas Zennström informed about road conditions in real time. Facebook account, so has enormous potential animation series called “Om Nom Stories,” which and Linked-In co-founder Reid Hoffman. Last year Waze integrated Foursquare and reach; recently declared itself a “platform,” is attracting more than 100,000 views per week. Yelp points of interest into the service. Initially encouraging developers to write apps for EZETOP funded by the Blue Run Ventures, Magma it. Users can share playlists, driving social SUPERCELL Venture Partners and Vertex Venture Capital, crowdsourcing for events big and small; (WWW.EZETOP.COM) the company recently received additional premium users can also access and share music (WWW.SUPERCELL.NET) DUBLIN, IRELAND investment from Kleiner Perkins and Li on most mobile devices. Currently available in HELSINKI, FINLAND What it does: Enables people living or working Ka-shing’s Horizon Ventures. Consistently 17 countries and has more than 20 million active What it does: Real-time social gaming developer. abroad to instantly recharge mobile phones of the number one navigation app in the Android users, and over 5 million paying subscribers. Why it’s hot: Since pivoting to become a “tablet- friends and family back home. Marketplace. first” publisher the company has released two Why it’s hot: ezetop is used by millions of DEEZER games: Hay Market and Clash of Clans. The people each month, and delivers revenue to APPGRATIS first is a global hit and is now the top-grossing more than 213 mobile operators worldwide. (WWW.DEEZER.COM) iPad game in 77 countries; the second is also The company claims that to ensure quality it (WWW.APPGRATIS.COM) PARIS, FRANCE a blockbuster, and is the top-grossing iPad only works directly with mobile operators. PARIS, FRANCE What it does: Provides unlimited music on de- game in 32 countries. The company is now Services are available from more than 450,000 What it does: App discovery network. mand to computers and mobile devices. generating revenues of $500,000 a day. retail stores in 20 countries; directly from Why it’s hot: AppGratis delivers more than Why it’s hot: Since its creation in 2007, Deezer mobile operators; or through ezetop’s website, 100 million non-incentivized app installs has negotiated agreements with 2,000 music OUTFIT7 which it calls the largest international online for app developers. Profitable from day one, labels and rights management companies recharge site. It also offers a white-label the company needed no external funding to around the world — including the four major (WWW. OUTFIT7.COM) solution for mobile operators. grow to 10 million users in over 30 countries. labels — and launched in every continent. LIMASSOL, CYPRUS However, in January is closed a $13.5 In December 2012 Deezer announced the What it does: Mobile app offering virtual pets/ HAILO million Series A round led by Iris Capital and launch of free ad-supported music service in friends. including the Orange Publicis Fund. Although more than 160 countries, giving the company Why it’s hot: Outfit7 offers a series of Talking (WWW.HAILOCAB.COM) it currently adds 100,000 new users per day access to a minimum potential audience of 600 Friends apps for iOS and Android; the LONDON, UK globally, it says it can go further with funding. million people (it serves more than 26 million “friends” interact with users. The apps have What it does: Links licensed cab drivers with AppGratis claims that at peak, featured music fans worldwide today). had more than 600 million downloads in would-be passengers via smartphone apps. placement in its app can drive over 500,000 less than three years, across 120 countries. Why it’s hot: An app that links licensed cab downloads for a title in a single day. EDJING User engagement is deep; there have been drivers – starting in London, but now also more than 25 million views of user-generated offering the service in New York, Dublin, APPSFIRE (WWW.EDJINGDJTURNTABLE.COM) Talking Friends videos on YouTube each Boston, Toronto and Chicago – with PARIS, FRANCE month. Outfit7 is in discussions with media passengers via iOS and Android, is set to (APPSFIRE.COM) What it does: Social DJ app for iOS and Android. and entertainment companies about possible become a must-have for denizens of those PARIS, FRANCE Why it’s hot: Claims to be the first music/video partnerships; definitely one to watch. cities. In late December Hailo reportedly What it does: App discovery service for Android platform on the Internet that allows listening, raised an additional $30 million in funding, and iOS with social elements. sharing and mixing more than 20 million video

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 13 Technology news from around the globe

Advertising 2.Go: Is This Mobile Advertising’s Moment?

By James Silver

they were made. “Over the past 10 years we’ve been saying now is the moment for the mobile ad- vertising market to take off,” says Ludovic Levy, director of mobile advertising and data monetization at Orange. “I have to confess for 10 years now, all the industry — including advertisers, operators and agencies — have not truly un- derstood how advertising works on this specific device.” Mobile currently still repre- sents a tiny proportion of total advertising spend. U.S. advertis- ers, for example, spent $180 billion Orange’s social TV app TVcheck, which last year — and only 2% of that was on allows users to check in with TV shows and mobile. But it looks as though the hype share content with friends. around mobile advertising might finally become reality. Tech consultancy Gartner is forecasting that the global market for social giant had no mobile ad offerings at mobile advertising will jump from $1.8 the beginning of 2012 but saw revenues billion in 2011 to $13.5 billion in 2015. The from this sector skyrocket as soon as it in- eventual number may be much bigger: troduced them. It reported that its overall research from eMarketer forecasts that advertising revenues rose 41% to $1.33 spending on mobile advertising (which billion year-on-year in the final quarter in this instance includes display, search of 2012, with mobile reaching 23% of the and messaging-based ads served to mo- total. In the previous quarter mobile was biles and tablets) in the U.S. alone is set to just 14% of the total ad revenues. The double from $7.19 billion in 2013 to $15.82 increase in mobile ad revenue is so en- billion in 2015. couraging that it’s one of the key reasons “The value that can be generated from why Facebook founder Mark Zuckerberg mobile advertising has now really been has taken to describing the giant social proven across a number of industries,” network as “a mobile company.” says Tim Dunn, director of strategy at Google also posted better-than-expect- Isobar Mobile, a London-based advertis- ed mobile ad growth in Q3 of 2012. Fueled ing agency which specializes in digital primarily by direct-response advertisers, creative work. “Predictions of massive Google now controls a 56.6% share of growth through 2015 absolutely make the U.S. mobile advertising market, ac- sense to me, as the industry starts to catch cording to eMarketer estimates. Google up with the consumer trend [of smart- announced on February 6th that it was phone adoption].” upgrading AdWords to take account of Orange’s Quick Tap service uses NFC to enable users to pay for goods and services with their mobile phones “today’s multi-device world,” which has Positive Signs been interpreted as a move to try to fur- ther boost mobile revenues. It was at the April 2010 launch of iAd, at best. It was crude, interruptive and, A number of significant factors un- That goal is important because search Apple’s mobile advertising platform, above all, at the time Jobs was speaking, derpin the optimistic forecasts. In Q3 on desktops is slowing and Google does that Steve Jobs, prowling the stage in smartphone penetration in the U.S. mo- of last year, Strategy Analytics reported not yet make equivalent profits on mobile his customary black turtleneck, uttered bile market was below 20%. Unsurpris- that smartphone handset penetration devices. For starters, advertisers pay far the words: “We think most [of this] mo- ingly advertisers stayed away in droves. shattered the one billion global handsets less for mobile ads as it is a less proven bile advertising really sucks.” As he him- The intervening years have done little barrier. Meanwhile, the shift from PCs to medium. self conceded at the time, it wasn’t the to prove Jobs wrong. Small wonder then tablets and mobile devices is now widely Today, most of Google’s mobile ad most elegant of phrases. But his words that the mantra-like claims that mobile viewed as a given. Facebook’s embrace revenues come from search. And, when certainly struck a chord: three years advertising was finally poised to go main- of mobile advertising is another major consumers use Google for search they of- ago, the platform was considered niche stream became less credible every time reason for more optimistic forecasts. The ten do so via their and Google has

25-28 FEBRUARY | 2013 14 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

to pony up a hefty share of its revenues pira, CEO and founder MassiveImpact, a lo’s Mobile World Congress 2012 cover It also enhances measurability. “By from these searches to Apple. performance-based mobile advertising story for more on this trend). Orange has measuring all the interactions, for instance Still, search is a powerful driver for platform, which reaches more than one developed the tracking and retargeting on social networks, between users dur- sales, particularly when combined with billion mobile Internet users. “If you go technology to follow its customers as ing TV spots or programs sponsored by a location-based data, which is why Isobar back to 2008, if I was a content developer they shift between screens. One way the brand, marketers can get a clearer picture Mobile’s Dunn says he expects Google and had a free mobile website I would operator is doing this is via a social TV of their ROI and the role mobile plays in and Facebook, in particular, to “ace the have had to go and chase the advertisers app called TVcheck, which allows users the overall media mix,” says Orange’s Levy. class.” “Mobile is closer to the point of one at a time to try to persuade them to to check in with TV shows and share “The more we will be able to integrate the purchase,” he says. “The follow-up time advertise on my website,” he says. “Today, content with friends. In return, they can mobile into TV campaigns or other media [after searching] on mobile is, on aver- I just go to one out of 100 ad networks that then win free minutes, SMS and coupons. campaigns, the faster mobile advertising age, a day, instead of a week on desktop sells all of my ad space in an effortless “This is a way for a brand to be part of as a whole will take off,” he says. and PC and, crucially, a large proportion manner. That whole ecosystem didn’t ex- users’ conversations while they are so- of mobile search has local intent.” He ist four years ago — today it’s all in place.” cializing,” Levy explains. also predicts the price advertisers pay Yet despite these innovations — and supporting data — doubts about the plat- form’s role in the advertising landscape Facebook reported that persist. Mark Read, strategy director and CEO of global communications giant WPP Mobile Advertising Revenue by Region, Worldwide, its overall advertising Digital, remains unconvinced that mo- bile is an advertising medium — in the 2012-2016 (Millions of Dollars) revenues rose 41% to traditional sense — at all. “Mobile is a very important marketing channel,” he $1.33 billion year-on- COUNTRY 2012 2013 2014 2016 says. “It’s going to be critically important year in the final quarter for all of our clients in terms of building North America 3,181.5 3,825.7 4,694.9 8,866.2 of 2012, with mobile relationships with their consumers. But as Western Europe 1,600.5 1,941.4 2,367.8 4,445.4 an advertising or brand-building channel, reaching 23% of the total. it is competing with other media which Asia/Pacific and Japan 4,333.0 4,864.9 5,506.7 9,480.2 may be better at achieving the same objec- Rest of the World 644.1 788.0 960.6 1,768.3 In the previous quarter tives. It’s not, for example, going to take Total 9,759.1 11,420.0 13,530.0 24,560.1 mobile was just 14% of over from TV as an advertising medium. Banner ads don’t necessarily work on Source: Gartner Group total ad revenues. The mobile because of the size of the device. Lots of people used to say that we’d judge jump comes as Facebook the success of mobile as when there’s lots founder Mark Zuckerberg of ad spend on mobile devices — but that may not be the right metric.” US Mobile Ad Spending, 2012-2016 has taken to describing A better metric, adds Read, one of (Billions and % change) the giant social network as digital advertising’s most influential fig- ures, is what people actually use their “a mobile company.” smartphones for — and that increasingly includes e-commerce. The platform’s $20.89 true value may well lie in location-based for mobile search will soon catch up with services, which will see customers receive 180% desktop/PC search. personalized offers and geo-located ads The arrival of 4G networks could also and promotions. “We’re only really at the prove a game changer: as mobile networks beginning of the use and development of evolve to offer customers far greater location-based services,” he says. “The $15.82 browsing speeds, they enable richer in- unique thing a smartphone has is [a user’s] teraction between users and advertisers. location and the fact that it’s nearly always This, in turn, has helped solve another on- on and within reach.” going friction point: the lingering question He cites an example of a campaign mark over what distinguishes mobile as WPP carried out for BMW in Germany. $11.14 an advertising medium from other plat- BMW drivers received special on-the-day 85% 77% forms, most notably online. offers — depending on whether snowfall Nigel Gilbert, director of sales EMEA was predicted for the following day in 88.5% at App Nexus — a customizable advertis- their area of the country — to buy snow ing technology platform, which recently tires for a 20% discount. “That was inter- closed a Series D round of $75 million esting in a number of respects,” he says. $7.19 led by Technology Crossover Ventures “It was personalized — it only went to 55% (TCV) — argues that the industry has suf- BMW owners — location-based, because fered from what he describes as a lack of if you lived in Munich you would get the $4.06 42% relevance. “Historically mobile advertis- offer at a different time to a BMW driver 32% ing has been cash-point [ATM] finders, in Bonn, and it was timely/event based. wallpaper, games and so on, which wasn’t I’d say that was something you could do $1.45 compelling,” he says. Advertisers have on a mobile better than on other devices.” $0.77 had to improve their understanding of how to engage customers through mobile The Media Mix and design offers that are relevant to the 2010 2011 2012 2013 2014 2015 2016 platform. “We’re seeing more mobile-op- Orange, like other major mobile timized sites and therefore more budget operators, is also encouraging brands on the [advertising] ‘buy side’.” to use mobile handsets to reach their Improving infrastructure has also led audience in new ways. Evidence sug- Note: Includes display (banners and other, rich media and video), search and to the creation of companies whose raison gests that growing numbers of people messaging-based advertising; ad spending on tablets is included. d’être is helping content developers mon- are browsing the Web or using social etize through selling ads, says Sephi Sha- media while watching TV. (See Informi- Source: eMarketer, December 2012

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 15 Technology news from around the globe

% INTERNET USERS WHO WOULD SELECT ‘DO-NOT- Privacy Is Dead: TRACK’ IF AVAILABLE WHEN USING A SEARCH ENGINE Now What? 100% Companies and NGOs Want To Unlock the Power of Personal Data But Safeguards Will Be Key

90%

By Jennifer L. Schenker

One mobile app getting a lot of buzz is the FTC has just released new guidance 80% Snapchat, a social media message ser- on implementing security for mobile vice that is transferring some 60 mil- applications. The GSMA, the mobile lion messages and videos per day. Part industry trade association, in February of the platform’s draw is that the user introduced an Accountability Framework determines how long friends can view designed to add teeth to guidelines it 70% messages before they disappear. introduced in 2012. A number of Euro- The app’s popularity underscores peo- pean mobile operators, such as Vodafone, ples’ desire to have more control over Telefonica, France Telecom Orange and their personal data. Shielding compro- Deutsche Telekom, have already started mising pictures or drunk texting from the implementing the guidelines. 60% prying eyes of a future employer, parent or stranger is just one concern. With more than six billion people con- In a recent survey of the nected to mobile devices that can capture and track location patterns, an increas- Internet populations across 50% ing variety of data can now be linked to 11 countries 68% said individuals. Trouble is, most people don’t Haitian Ministry of Public Health body collectors have a clue who is looking at their data they would select a “do- place the body of a cholera victim into a mass grave and what is being done with it. not-track” feature if it was during the 2010 outbreak. In the future leveraging Alarm bells are ringing, and with good easily available, according big data about the movements of populations during 40% reason. WhatsApp, a popular cross-plat- disease outbreaks could help target relief efforts and form mobile messaging app, came under to consultancy Ovum’s new potentially save lives. fire in January from Canadian and Dutch report “Personal Data Futures: governments for forcing those who down- load the app to upload their entire address The Disrupted Ecoystems.” 30% book. In a statement, the office of the Ca- This hardening of consumer Anonymized data collected by mobile nadian privacy commissioner said it had operators could be used to identify pov- “reasonable grounds” to believe the Cal- attitudes, coupled with erty pockets in urban areas or pinpoint ifornia-based developer was “collecting, tightening regulation, could where people are moving en masse dur- using, disclosing and retaining personal ing disease outbreaks in order to better information” of those who had never used diminish the supply of target relief efforts, says Anoush Rima 20% the app, but may have given their phone personal data, undermining Tatevossian, head of Strategic Commu- numbers to a friend or contact who does. nications & Partnerships for Global Pulse, And, in early February the U.S. Federal not just the Internet economy a program run from the executive Office Trade Commission announced that it but big data analytics that of the Secretary-General United Nations, had slapped Path, a social network that that is exploring how new, digital data 10% could be used to help solve

| F RANCE | GER M ANY | NE T HYERLANDS | RUSSIA | UK | USA allows users to keep journals of special life sources and real-time analytics technolo- moments, with an $800,000 fine for auto- some of the world’s most gies can help policymakers better under- matically – and improperly — collecting pressing problems. stand issues like hunger and poverty and 81% 69% 70% 69% 71% 77% personal information from its customers’ manage disasters in real time. mobile address books, including friends’ Making sure big data can be used for 0 first and last names, addresses, phone But these steps may not be enough to the greater good – as well as by business definitely yes numbers, e-mail addresses, Facebook and restore user confidence: in a recent sur- — is the focus of work being done by the not sure Twitter user names, and dates of birth. vey of the Internet populations across 11 World Economic Forum (WEF). Based The data collection occurred automati- countries 68% said they would select a upon a year-long global dialogue among definitely not cally when version 2.0 of the app was first “do-not-track” feature if it was easily avail- public sector, private sector, and civil don’t care launched and each time a user signed back able, according to consultancy Ovum’s society experts, there is growing con- into his or her account. new report “Personal Data Futures: The sensus that the notions of deleting data Source: Ovum Like the Facebook, Google and MyS- Disrupted Ecoystems.” This hardening of and limiting its collection are problem- pace settlements, the Path-FTC settle- consumer attitudes, coupled with tighten- atic in the era of Big Data. If the likes of ment also requires the company to estab- ing regulation, could diminish the supply Google can’t collect personal information lish a comprehensive privacy program and of personal data, undermining not just the for targeted advertising it would have to to obtain independent privacy assessment Internet economy but big data analytics start charging for services now offered every other year for the next 20 years. that could be used to help solve some of for free, such as Google Search and Gmail. To head off such abuses in the future the world’s most pressing problems. But the stakes go well beyond keeping the

25-28 FEBRUARY | 2013 16 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

© ZUMA Wire Service / Alamy

range in length from just 144 words up to 7,669 words (the median is around 2,500 Start-ups that help words). At a standard reading pace of 250 words per minute, most privacy policies consumers keep their take eight to 10 minutes to read. The study data private concludes that it would normally take a person about 244 hours per year to read PERSONAL, INC. every new privacy policy she encoun- WWW.PERSONAL.COM tered... and 154 hours just to skim them. WASHINGTON, D.C., U.S. The authors estimated that if all Ameri- A web and mobile data vault for individuals to can Internet users were to annually read securely store, share and reuse passwords and online privacy policies word-for-word their most important information. Built on a privacy- each time they visited a new site, the U.S. and security-by-design platform, Personal helps would lose the value of about $781 billion individuals to leverage their data so they can realize from the opportunity cost of the time to the most value from it. It also provides peace of mind ready privacy policies. that the data in their vault remains legally theirs and Some companies are working on ways that it can’t be shared without their permission. to speed up and standardize legal language. Privacyscore, for example, analyzes the ABINE privacy policies of companies along four WWW.ABINE.COM clear criteria and gives each website a BOSTON, MA, U.S. color-coded rating and score. Mozilla has Committed to giving users a more private web proposed a symbols-based approach to the experience. Abine offers several privacy services, presentation of legal terms; icons signal, for including online tracker-blocking tool called example, how long data is retained, whether DoNotTrackMe, and DeleteMe, which removes data is used by third parties, if and how data subscribers’ personal information from public is shared with advertisers, and whether law databases. The company’s technology has led enforcement can access the data. to partnerships with the National Network to End Start-ups are cropping up to help Domestic Violence, the California Judges Association, alert consumers and shield them from and other privacy-conscious organizations. unwanted data snooping. (See the box to find out more about what start-ups are ALLOW doing in this area.) WWW.I-ALLOW.COM But some argue that the real remedy LONDON, UK lies in economics, rather than simpli- A UK-based security service that puts users in control fying standard legalese or technology. of their personal information. Allow claims it can: Internet economy afloat: limits on the use “The challenge is to move beyond the Personal data is worth money, so soon remove users’ information from the top marketing of personal data could curtail progress in privacy issue so that we can leverage the privacy marketplaces are likely to evolve, databases; reduce spam marketing by up to 75%; solving some of the world’s most chal- data to address socioeconomic problems where website visitors choose to accept stop advertisers from watching users online; and lenging problems because big data doesn’t such as financial inclusion, food security or reject offers for payments or rewards protect details against cybercriminals. It also offers just hold the answers to what products and disaster response and some of the in exchange for loss of privacy. Respect insurance against identify theft. and services people consume; it can also other big global challenges and build it Network, a California-based start-up, if tell us what people create, and how they out in a way that is commercially sustain- offering to broker such exchanges. EVIDON cope with global stresses like unemploy- able,” says William Hoffman, head of the “A new ecosystem is emerging,” says WWW.EVIDON.COM ment and natural disasters. World Economic Forum’s ICT Agenda. Mark Little, an Ovum analyst who worked NEW YORK, NY, U.S. Additional points of consensus from on the Personal Data Futures report. “In- Helps users understand how companies collect and the WEF’s global dialogue — which Moving From Data Fracking To stead of the Internet company writing a use their data — often to target ads — and gives users are expected to be outlined in a report Data Friending one-sided legal standard-form contract, the ability to opt out of targeting. Evidon also provides scheduled to be released in the first the consumer will write his own. You’ll privacy controls for more than $1 billion of display quarter of 2013 — include the need for The WEF has been working on a “re- have a vault, a company knocks on your media annually, empowering more than 150 million data to flow and combine with other thinking personal data” initiative for the door, you open your door and present people a day to control how their information is used bits of data but in a manner which ac- past two years. Steering board members them with your policy,” says Little. online. For businesses, Evidon’s browser tool, Ghostery, counts for the potential risks and pri- include Augie Fabela, chairman and co- Little describes the shift as a move reports on data collection across 26 million websites vacy intrusions this flow could create. founder of VimpelCom; Robert Quinn, from “data fracking” to “data friending.” and informs a company’s business control solutions. Encouraging policy frameworks to shift AT&T senior vice-president, Federal Reg- If “data friending” works and the majority from controlling data collection to fo- ulatory and Chief Privacy Officer; Craig of consumers are confident that the trade RESPECT NETWORK cusing on appropriate and trusted data Mundie, Chief Research and Strategy is fair and secure and that both they and WWW.RESPECTNETWORK.COM usage was widely supported as data Officer, Microsoft; Ellen Richey, Visa’s society as a whole will benefit from shar- SAN FRANCISCO, CA, U.S. itself does not create value or cause Chief Enterprise Risk Officer; and George ing their information everybody will win, Calls itself the world’s first personal cloud network. problems; its use does. Halvorson, Chairman and Chief Execu- says Ovum’s Little. The privacy industry The Respect Network hosts user data free of charge. The topic is on the agenda at this year’s tive Officer, Kaiser Permanente. can develop lucrative businesses, the In- The personal-cloud network runs on the Respect Mobile World Congress, which is taking It is a difficult task. Laws governing ternet economy will continue to flourish, Trust Framework, which mandates that a user’s place February 25-28. Robert Kirkpat- data privacy were made 30 years ago and and agencies like the U.N. will obtain the personal information and data cannot be shared rick, director of the U.N. Global Pulse, are no longer relevant or effective. tools to better tackle socioeconomic issues. without his or her permission. Businesses that want is scheduled to speak twice on February Reliance on “notice and consent,” in There is a big incentive for compa- access to the consumers’ data pay the Respect 25th: at a ministerial track session entitled which companies write obtuse policies nies and governments to get this right. Network, which in turn gives the consumer a reward “Balancing privacy: Providing social good and get consumers to click without read- Analytics have become the new engine of for authorizing the sharing of specified data. and economic opportunities – the mobile ing or understanding them, is not work- economic and social value creation. And perspective” and at a GSMA Disaster Re- ing: studies show that privacy policies the insights derived from linking previ- SNAPCHAT sponse Program seminar entitled “Mobile: are hard to read, read infrequently and ously disparate bits of data have become (WWW.SNAPCHAT.COM) A Lifeline in Disasters.” do not support rational decision making. essential for innovation. VENICE BEACH, CA, U.S. Kirkpatrick will also participate in a For example, a 2008 study by Aleecia Snapchat taps into fears of social media mistakes private workshop on the topic of data- M. McDonald and Lorrie Faith Cranor, that could live forever. Users can share a moment with driven development during MWC organ- which was published in a Journal of Law friends on iPhone and Android, and set the length of ized by the WEF. and Policy, found that privacy policies time the images are visible before they disappear.

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 17 Technology news from around the globe Mobilizing Women The industry is now focusing on closing the mobile gender gap

By Eric Sylvers

Mobile phone ownership has skyrock- mobile operators have the potential to add eted around the globe. But a woman 600 million subscribers and boost their is still 21% less likely to own a mobile collective annual revenues by $29 billion. phone than a man. The figure is even higher if she lives in Africa, the Middle East, or South Asia. Closing the gender gap on mobile Over the next five years, phones would bring improved access to two out of every three education and health as well as business potential new subscribers and employment opportunities to hun- dreds of millions of women, improving will be women, says a report not just their lives but those of their fami- published by the GSMA’s lies, according to a report co-authored by the Cherie Blair Foundation, one of mWomen program and the the first organizations to recognize the Cherie Blair Foundation. transformative potential of getting more mobile phones into the hands of women. By connecting all of these There is a strong economic incentive women, mobile operators to bringing about that change. “Mobile operators aiming to be market leaders in have the potential to add five years time must excel at bringing on 600 million subscribers and new female subscribers,” says the report, The GSMA mWomen Program – a serve this vastly underserved market with which was co-authored by mobile phone boost their collective annual partnership founded in 2010 by the special devices, innovative calling plans industry lobby the GSMA, the organizer of revenues by $29 billion GSMA, the Australian Agency for Inter- and apps to support education, health, the Mobile World Congress taking place national Development, the United States entrepreneurship and micro finance. in Barcelona February 25-28. Agency for International Development, Both big and small companies have The report, released in 2010, galva- A key to unlocking the potential and Visa – has set the goal of bringing a role to play in expanding access for nized other non-profits, the mobile phone will be the introduction of new mo- mobile connectivity and services to 150 women by producing relevant content industry, and governments by putting a bile phone applications, which have million women in emerging markets by and services, says Ann Mei Chang, Senior number on what many had already identi- already turned handheld devices into 2014, thus reducing the mobile gender Advisor for Women and Technology in fied as both a problem and an opportunity. tools used in everything from health gap by half. the Secretary’s Office of Global Women’s Closing the mobile gender gap by add- care to education. “Mobile applications To achieve that goal, mWomen has of- Issues at the U.S. Department of State. ing 300 million women subscribers will bridge the gaps in supplying informa- fered a list of recommendations. These in- “Small companies in particular, which add $13 billion to average revenue per tion where traditional infrastructure is clude: reducing the cost of mobile owner- are close on the ground, can be extremely user for mobile operators, says the report, lacking,” says mobile industry veteran ship by abolishing “discriminatory” taxes; effective at building locally-relevant con- which took data from other sources but Laureen Cook, Principal TMT Advisor removing cultural barriers that stigmatize tent and services as they can better tailor also included its own field research. It for Global Telecoms, Media, & Tech- female use of mobile phones in some cul- to the local environment,” says Chang, projected that the incremental revenue nology at the International Finance tures (in part by using well-respected peo- who is also scheduled to speak at this opportunity for operators ranges from Corporation, a part of the World Bank ple as champions for female ownership of year’s Mobile World Congress. “On the $740 million in Latin America to $4 bil- Group. “Women can now gain access mobile phones); collaborating with local other hand, big companies have the reach lion in East Asia. The greatest incremental to information, products and services, organizations to increase technical literacy and resources to make broader impacts. gains for women can be made in South which is often life saving in the devel- of the poorest women; and encouraging Facebook, for example, is one of the big- Asia, the Middle East and Africa, the oping world,” says Cook, a scheduled the deployment of value-added mobile gest drivers for adoption of the Internet three regions where the gender gap is speaker at this year’s Mobile World services that benefit women in particular. in developing countries.” the biggest. The long-term opportunity Congress. Applications centered on e- While the GSMA/Cherie Blair Foun- is potentially bigger. Over the next five health, e-education and e-commerce Expanding Access dation report brought attention to the years, two out of every three potential allow women to become educated and mobile gender gap, the so-called digital new subscribers will be women, says the to make informed decisions for them- Handset providers, operators, and app divide has long garnered notice and a report. By connecting all of these women, selves and their families.” developers around the world are rushing to flurry of activities aim to bring digital

25-28 FEBRUARY | 2013 18 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

technology and access to the Internet to underserved parts of the world. Many of the lessons learned in dealing with digital technology can be transferred to the mo- bile sector, industry insiders say. Information and communications technology (ICT) can lower transaction costs, something that will benefit women particularly because of their more severe time and mobility constraints, according to a World Bank report that laid out a strategy through 2015. Countries should use ICT to address the gender gap in health, education and other sectors, the report said. In addition to mWomen, Chang cites other initiatives that are helping to bridge the gap by bringing useful services to women in developing countries; these include Mobile Alliance for Maternal Action (MAMA), which delivers vital health information to pregnant women, and Safaricom’s M-PESA, which though not specifically targeted at women, has helped many women access financial services for the first time. For the past five years Qualcomm, Gra- meen Foundation and Ruma, an Indonesian company, have partnered to create AppLab, which helps poor Indonesian entrepre- neurs, about 85% of whom are women, provide mobile phone-based services such as airtime and a job-finding service. By 2015 there will be 788 million peo- ple who access the Internet only through mobile phones, according to a white pa- per commissioned by Cisco. But industry experts say the full benefits of mobile technology are likely to be realized in conjunction with fixed-line technolo- gies. While mobile coverage is more likely to reach remote areas and is cheaper to use, computers can offer more advanced services. A study funded by Intel and released in January found that women who access the Internet using more than one plat- Owning a mobile phone can form report more benefits than those who be a lifeline for women in use only computers or mobile phones. emerging markets, helping Women who access the Internet using them to earn a livelihood, both computers and cell phones are more access crucial education likely to say that online access brought and medical information them benefits such as additional income and ensure their safety. and applying for jobs, according to the study, which included field interviews in Mexico, Uganda, India and Egypt. “Putting women and technology to- gether has the potential to be one of the highest-leverage opportunities to address the world’s development challenges,” Chang wrote in a blog post published in January. “Along with access to markets, finance, and education, increasing access to ICT by removing gender-related bar- riers is necessary to fully realize the po- tential economic contribution of women, and by extension entire communities.” Mobile lies at the center of that equa- tion, something governments, the private sector, and non-profits are embracing as both a challenge and an opportunity.

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 19 Technology news from around the globe

that enterprises are struggling to figure out how to protect. This is a big-time pri- Mobile Security ority in 2013 and for companies it is one of the top three issues facing CIOs [chief information officers].” A recent report from ENISA lists mo- bile computing as a key emerging threat. Poses Threats and The ENISA report found that the most pervasive threat for cyber security in general and mobile devices in particular is so-called drive-by exploits in which people unwittingly download a virus or Opportunities other malware (see chart for the full list). A Samsung Android What’s more, notes the Norton report: phone using Lookout almost a third of people have received a security software. text message from someone they didn’t Now that two-thirds of adults access the know requesting that they click on an em- Internet via mobile phones new forms of bedded link or dial an unknown number to retrieve a “voicemail.” cybercrime are emerging Though Google’s introduc- tion of Google Bouncer has had some success in protecting Android devices, the operat- By Eric Sylvers ing system is the most targeted

by hackers both because it is With some two-thirds of adults using wares on February 25-28 at Mobile World the most used and because it the Internet to access personal and Congress in Barcelona; MWC is an annual is open source. About two- business information on the go, cyber industry gathering that is expected to at- thirds of all threats are tar- criminals are finding mobile devices an tract 70,000 visitors this year. (Lookout geted at Android with almost increasingly attractive target. is a finalist for the GSMA’s annual Global a third directed at Symbian, As more people store things of value Mobile Award in the category of best mo- according to an F-Secure – whether it be passwords, corporate se- bile safeguard & security products and Mobile Threat Report for crets, or money — on their mobile devices, services. The winner will be announced the third quarter of 2012. The the darker side of cyberspace is finding at the show.) small number of remaining its way onto phones. The viruses, trojan “Mobile devices aren’t secured in the threats are about equally split horses, botnets and phishing that plague same way as a computer and that makes between Windows Mobile, the PC world are now becoming com- them an appealing target,” says Louis Blackberry, iOS and Java. monplace on mobile devices. The prob- Marinos, a senior expert on risk man- Mobile phone operators lem is aggravated by the fact that mobile agement at the European Network and are reacting by offering se- networks and Wi-Fi are more vulnerable Information Security Agency (ENISA). “A curity as a differentiating than fixed-line networks to hacking. And hacker might not attack a mobile device factor and have begun pre- wireless devices are by definition mobile, for what is on that device, but rather as loading anti-virus software making them susceptible to loss and theft. a way to get access to a PC or maybe the on their devices. Late last year (A 2012 Norton Cybercrime report found credentials to log into cloud services.” T-Mobile and Orange said that 35% of people have had a mobile de- their Android phones will vice lost or stolen.) come preloaded with start-up Today only one in 20 smartphones has Lookout’s app-scanning soft- any kind of security software, but experts Today, only one in 20 ware. Verizon also late last predict it won’t be long before those who smartphones has any kind of year started offering security use their Android phone, iPhone, tablet or features to its customers. other mobile device without some anti- security software, but experts More operators are expect- virus protection will be the exception predict it won’t be long before ed to bundle security software rather than the rule. those who use their Android in their offerings. Volpi says Such threats open opportunities for there is space for the opera- both existing and new businesses. Big phone, iPhone, tablet or other tors to collaborate with the likes names in computer anti-virus software mobile device without some of Lookout by sharing data that can such as McAfee, Symantec’s Norton An- While the smartphone market and the help track down hackers. tiVirus and Avast are targeting the sec- anti-virus protection will be the threats are expanding quickly, almost half “If we see, for example, that a particu- tor. Symantec, for example, released a exception rather than the rule. of the 13,000 people surveyed in 24 coun- lar area — say Russia or Germany — has a new version of Norton Mobile Security tries for the 2012 Norton Cybercrime re- virus that is spreading then we can com- in November which scans the phone for port said they did not know that security municate with operators to let them know malware, heads off potentially dangerous solutions are available for mobile devices. it is happening and then they can take apps, can use GPS to locate a lost phone, The proliferation of cloud computing While consumers are largely unaware preventive measures,” says Volpi. and has an alarm function that screeches has in fact created a new challenge for of the threat, corporations have begun Trouble is cyberhackers know no when activated. The various services also companies as they confront mobile se- scrambling to protect their devices as well borders, making them difficult to catch. generally back up data on the phone in- curity. “Part of the problem is the mobile as employees’ personal devices, which And as soon as one patch is invented, cluding contact lists, text messages and device, part of the problem is the cloud,” are increasingly used to access corporate they seem to find other holes to exploit. media including audio and video files. says former Cisco executive Mike Volpi, data, a trend known in the industry as Despite the best efforts of security com- Meanwhile, start-ups such as Lookout, a San Francisco-based partner at Index bring your own device (BYOD). panies and operators, the cat and mouse Prey and Zenprise (see box), which focus Ventures, an investor in mobile security “Once upon a time the only thing peo- game with cyber criminals is likely to exclusively on securing mobile devices, start-up Lookout. “A lot of mobile devices ple brought into work was a feature phone continue on mobile phones for some time are attracting tens of millions of dollars are just a gateway to the cloud so in part or a normal mobile phone,” says Volpi. to come. in investment from top-tier Silicon Valley you’re protecting what’s on the device, “Now it’s BYOD – iPad, smartphone and and European venture capital firms. Ex- but at the same time you are also manag- even laptops and on those devices there’s pect these companies to be flogging their ing the access privileges.” a mix of personal and corporate assets

25-28 FEBRUARY | 2013 20 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

Mobile Security Mobile Threats by platform (Q3 2012) Start-ups Along with the likes of security giants McAfee, Symantec (which owns Norton) and Avast, start- ups are lining up for a piece of the ava) J

( mobile security market. Here’s a

indows Mobileindows look at a few of them: 2M E OS i J B lackberry W

Bluebox % 66.8% The San Francisco-based start-up, which last year 66.8 received $9.5 million in funding from Andreessen Symbian Horowitz and Andreas Bechtolsheim (co-founder of Android Sun Microsystems and an early investor in Google), specializes in mobile security, but has not yet released a product. The company has said it is working on 0.6% protecting corporate data on mobile devices and 1.1% speculation is that in particular it is looking to protect devices owned by employees that are used for both private and corporate tasks. Source: F-Secure Mobile Threat Report Q3 Lookout 2012 (most recent available) Following deals with several large telecoms operators, the much-talked-about security app will come preloaded on some Android devices. The app, The top emerging threats which is available for iOS and since January also for Survey Says... the Kindle Fire, offers virus alerts, phone tracking and to mobile devices the ability to locate a device even after the battery has died. San Francisco-based Lookout has raised more The 13,018 respond- The top emerging threats 6. Code Injection (availability than $75 million from several venture capital firms ents (aged 18-64 in 24 to mobile devices of code injection for mobile including Accel Partners, Andreessen Horowitz and countries) to Norton’s 2012 35% devices Index Ventures. have lost their mobile Cybercrime report said: 1. Drive-by exploits (affecting or had it stolen mobile OS and mobile apps) 7. Phishing (phishing will target increasingly mobile device Prey Open source software for Mac, Windows and Linux, 2. Worms/Trojans (trojans affect- users) Prey can be used on a computer to track a phone, ing mobile OS, SMS-Trojans) 8. Abuse of information leakage tablet or laptop and then take various actions such as 2/3 2/3 3. Exploit Kits (mobile OS (data relevant to privacy, sounding an alarm or wiping stored passwords from use a mobile device to access don’t use a security solution for vulnerabilities are already leakages from poorly written the device. A small program is loaded onto the mobile the Internet their mobile device incorporated into exploit kits) applications, user errors) device and then is activated remotely when needed.

4. Physical Theft/Loss/Damage 9. Identity Theft (through creden- Zenprise tial stealing trojans targeting (mobile devices will be main In the process of being acquired by Citrix for an identity information stored targets of this threat) undisclosed sum, Zenprise allows companies to add 31% on device) 44% a layer of security to the personal mobile devices received a text message from aren’t aware that security solu- 5. Compromising confidential someone they didn’t know of its employees. As with most of mobile security tions for mobile devices exist information (data breaches of 10. Botnets (through infections requesting that they click on software, data can be wiped remotely. Before the sensitive data stored on the of mobile platforms) an embedded link or dial an Source: 2012 Norton devices or being on the move acquisition was announced in December Zenprise, unknown number to retrieve a Cybercrime Report over communication channels) Source: Enisa Threat Landscape, which is based in Silicon Valley with an office in Paris, “voicemail” September 2012 had raised more than $60 million from Greylock Partners, Shasta Ventures and several other venture capital firms.

Finding It Hard To Get Noticed In a Crowd? Informilo’s Print Magazines Reach Your Target Audience At Key Industry Events Such as Web Summit in London and Dublin; Le Web in London and Paris; NOAH; and DLD.

Access the media kit For more information on advertising rates, media kit and Informilo’s at www.informilo.com editorial calendar please email [email protected].

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 21 Technology news from around the globe The Operator-Start-Up Connection

Silicon Valley, including those financed it also wants to investigate new revenue The Night Zookeeper team, one of 19 start-ups By James Silver by Sprint, AT&T, Verizon, China Telecom streams, says Ann Parker, Wayra Europe’s housed in Wayra’s London incubator. and Korea’s SK Telecom. Deutsche Tel- London-based head of operations. The ekom, which also has a presence in the phone operator does not want to just buy With their beanbags, primary-color Bay Area, launched hub:raum, an incu- start-ups and plug them into Telefonica, can exist by themselves. We don’t want decor and the obligatory table-football bator program based in Berlin, last year. she says; it wants to get a feel for what is teams that come to rely on us so much areas, tech start-up workplaces have Telefonica’s Wayra is thought to be happening in the market. “We saw most that when we kick them out of the door, long become something of a self-parody. the biggest in terms of global footprint: of the innovation in the telco space wasn’t they cry ‘Help!’.” Nevertheless Wayra’s London incuba- it now supports 181 start-ups across happening in telcos: it was being done on From the start-ups’ point of view, Way- tor for “digital talent” is particularly 13 academies. (The latest to open is in the edges by smaller companies,” says ra creates its own mini-entrepreneurial impressive. It’s located in an expan- Prague.) The start-ups dream of being Parker. “We recognized that if we wanted ecosystem, says Josh Davidson, CEO of sive open-plan warehouse three stories acquired or at the very least getting the to be part of the action we needed to be Night Zookeeper, a children’s storytelling above Tottenham Court Road in central chance to distribute their wares to the part of it from the ground upwards. Our mobile and iPad app. “The ‘we are all in London. Yes, there are beanbags and a operators’ massive customer bases. For second objective was that because most it together’ attitude definitely breeds col- table-football (plus a bright red rep- the operators the goals are less clear-cut. of the best coding and programming tal- laboration — and maybe a bit of rivalry,” lica London phone box), but this is no It’s getting close to the start-up ecosys- ent from Latin America and Central and he says. According to another of the cur- school for slackers. There’s an intensity tem that is important. Eastern Europe was just deciding to go to rent crop, Cloud 66 — a company that and industriousness about the place; the Valley, we wanted to create a reason describes itself as offering “application everywhere you turn there are hushed for them to stay in their home markets.” stack management as a service” — says conversations, huddled conference calls The current crop of start-ups are sharing a space with 18 other start-ups and coders pecking away at laptops. “We saw most of the Wayra London’s first. Sixteen teams means instantaneous and no-holds-barred If the 19 digital start-ups that cur- innovation in the telco space were selected last spring, with another feedback. “It also gives us an immediate rently share this piece of prime real es- three following in the summer. (Wayra’s market in which we can test our prod- tate seem in a hurry, that’s because they wasn’t happening in telcos: London operation has space for 20 teams, ucts,” says CEO Khash Sajadi. are. The teams have just six months in it was being done on the making it by far the largest of the group’s But staying in their home markets over Wayra’s flagship incubator before they academies, which are scattered around the longer term might not be possible. pack their personal effects and step back edges by smaller companies,” Europe and Latin America.) Chosen start- Indeed, Cloud 66’s Sajadi — who jokes into the ‘real world’ — hopefully with says Ann Parker, director of ups are offered €40,000 on a convertible his goal is to exit for $10 billion and buy follow-on funding. loan note by Telefonica, Wayra’s owner. a yacht — says the immediate plan for his Inspired by the success of Silicon Val- operations for Wayra Europe, a Equity (typically 5%-10%) is only taken company is “to have a physical presence ley-based Y Combinator, which launched Telefonica-backed incubator. once the team secures external invest- in West Coast, America, where most of in 2005, and Tech Stars, which was ment. “Demo Day,” in which the start-ups our revenue comes from.” So how con- founded in Boulder, Colorado a year later, “We recognized that if we had 10 minutes each to pitch their busi- cerned is Parker that a proportion of the different spins on the incubator/accelera- wanted to be part of the action nesses to an audience of 150, including start-ups, though incubated in Europe, tor model have now become a fixture in we needed to be part of it from investors, was held at the end of Janu- will be drawn to the Valley anyway be- the wider tech eco-system. There are esti- ary. Two teams have secured next-stage cause that’s simply where they have to be? mated to be more than 50 such programs the ground upwards.” funding so far. “I don’t mind where people go,” she says, in Europe alone. An increasingly popular To retain a sense of momentum, the perhaps a touch uneasily. “Ultimately take on this talent hot-housing model is start-ups are shuffled around the space who are we to say what’s right for any of the mobile operator-backed incubator. Just two of the current Wayra London at regular intervals, says Parker. “Some these businesses?” Just a year after Vodafone xone arrived teams’ ideas are mobile apps — the rest are pods [desk areas] are in better locations in Silicon Valley, for example, it had al- a mix of digital businesses. The reason- than others in terms of natural light,” ready nurtured a dozen tech companies. ing behind this portfolio approach is that she explains. “But we also want to re- There are currently thought to be more Telefonica doesn’t want simply to sell mind them that they’re not here forever. than 25 operator-backed incubators in products to its existing customer base; This is all about creating businesses that

25-28 FEBRUARY | 2013 22 informilo.com | MWC 2013 The Networked Economy: How technology, innovation and venture capital are transforming the future of mobile

continued from COVER Pros and Cons For Operators Of Working With Facebook Strand disagrees. Assuming such a Fa- global Wifi sharing service, has inked cebook Out service does at least as well as deals with BT, Softbank, Belgacom, Zon, Impact Solutions for Skype Out, it could add $800 million to SFR, Netia, MTC, Oi, and KPN and says it negative impacts the social networking site’s revenues. And expects to add more phone company part- there is no reason for Facebook to stop ners by year’s end. Fon is one of a whole Positive Negative there. It could opt to become a mobile host of young venture-backed companies operator, in the form of an MVNO, creat- that are offering ways for operators to bet- Voice Increased social activities Cannibalization Implement “Facebook ing both problems and opportunities for ter cope with a huge surge in data traffic. from VoIP call button” mobile operators in local markets. And, according to Coleman Parks, 70% Integrate mobile phone “Facebook is a listed company so needs of mobile operators now see OTT as an op- number with Facebook to show growth in revenues and in prof- portunity. One example: AT&T has spent profile its,” says Strand. “So the question is where millions of dollars to open three mobile Facebook can get the most growth? Will developer centers to encourage developers Try to prevent VoIP on mobile networks it only come from advertising or in future to tailor their work to AT&T’s technical will they try and make money on com- specs. 3 Group is integrating Skype into its SMS None Increased use of Bundle SMS packages munications? If I were a shareholder of user experience. And “carrier-managed” Facebook chat, with data packages Facebook and the company chose not to OTT services — where the carrier pro- messaging and go after communication revenues I would vides higher-quality access to video librar- communication via Cooperate with Facebook accuse them of mismanagement.” ies or live TV — are starting to emerge. Facebook wall Facebook integration Marco Veremis, CEO of Upstream Sys- The OTT Dilemma tems, a company specializing in mobile MMS None Facebook stimulates Make it easy to fetch and marketing, says he believes there is a lu- sharing photos share Facebook photos While a move into voice is likely to crative opportunity for operators to offer via MMS make Facebook’s shareholders happy it OTT services in emerging markets. Since is likely to, in turn, make the shareholders a tiny number of people own credit cards Data Stimulates data consumption None Bundle data packages with of some telcos miserable. Mature market in these markets it is easier for consumers SMS and MMS packages telcos that have a sizeable postpaid cus- to buy apps via carrier billing, says Ver- Further differentiate differ- tomer base, charge mostly by volume, or emis. UpStream, an exhibitor at Mobile ent types of data packages offer unlimited call packages have less to World Congress, works with developers worry about. For example, telcos in the to get their apps on its MINT platform, Sell Facebook data packages U.S. that already offer unlimited voice which reaches a total of around 500 mil- bundles are unlikely to be concerned by lion mobile operator customers in sub- Mobile Increased demand for smart- Increased demand Market inexpensive Facebook’s initiative, says Ovum. Saharan Africa, the Middle East, Latin devices phones and advanced feature for smartphones and mobile phones as “Face- The same is not true for emerging America and Southeast Asia. The app phones can stimulate demand advanced feature book ready” market mobile operators, as most of developers get a smaller percentage than for advanced mobile services phones can have a Increase the knowledge their customers use prepaid services the 70/30 split offered on the Apple app negative influence on SAC and churn level of customers regard- that charge per text. An offer that by- store but have the chance to potentially ing which mobile phones passes mobile networks to make calls to make more money by selling in volume. can be used for Facebook the same friends through Facebook for For example, Star Arcade, a Finnish Improve the integration of free is likely to lure lots of users, cutting maker of games, is working with Up- Facebook clients into SMS charges, which today make up stream and the Saudi Telecom Compa- an average of around 20% of operators’ ny, to release its social gaming platform Customer None Increased number Upsell data packages that revenues, according to Strand Consult. in Saudi Arabia. The platform contains services of customer service include SMS and MMS While mobile operators can price data games like Jelly Wars and Diamond Para- calls regarding packages to customers dise and a tournament service that the Facebook tactically to try to recoup lost revenues, Improve the online cus- Facebook’s emergence as a voice service operators can brand as their own. Players tomer information about provider is yet another hint that telcos who opt to pay a small subscription fee using Facebook everywhere should prepare to move of a dollar or two a month are offered a away from charging for voice, says Ovum. variety of benefits, including prizes. The Charge for customer ser- vice calls about Facebook Charging for data can alleviate the con- upside for the developers is the access to cerns, but in the long term, Obidou says the operators’ customer base and inte- Sales Increases the demand for Creates traffic in the Increase sales of data mobile operators may have to do what grated billing. It gets a small percentage smartphones, advanced distribution channel, packages that include SMS every other utility service does: impose a of the subscription rate. The plus for the feature phones and data which will increase and MMS packages fixed/service charge or line rental. operator is recurring additional revenues packages support costs Start selling mobile phone The trouble is that Facebook is by no and potentially less churn, says Remco Increases traffic in the dis- insurance means the only over-the-top player cut- Smit, Starcade’s chief commercial officer. tribution channels which can ting into traditional mobile operators’ Still, most consumers are likely to opt result in increased sales revenues. Ovum predicts losses from OTT to go to outside app stores, such as An- players will grow to $54 billion by 2016. droid’s, which has integrated carrier bill- Marketing Marketing the possibility Facebook is an Co-branding mobile phones Operators in developed markets may ing, rather than use apps that are selected of accessing Facebook on expensive marketing with Facebook mobile phones channel be better protected than their counter- and branded by carriers, argues Strand. Marketing the possibility of parts in the developing world but they Integrated billing does give carriers purchasing data packages are not immune. The U.S.’s FreedomPop, some advantages but it doesn’t make up that include SMS and MMS for example, has created a wireless data for all the revenues telcos are losing, says packages service that promises to save custom- Strand. Operators need to have competi- ers hundreds of dollars a year, at a time tive pricing and plan packaging to address Source: Strand Consult when growing data traffic is giving many the Facebook threat, he says, as well as customers bill shock. The service also explore some Facebook integration. market share; they have lost mind share. have turned the communications sector incorporates a social element: users can There are a number of steps opera- “Who do you think a customer will be upside down: “The real question,” asked “earn” extra free data by adding friends tors can take to prevent a future as dumb more loyal to: Facebook or Vodafone?” asks a commentator using only the first name to FreedomPop’s internal social network. pipes. But they no longer have the domi- Strand. It is an apt query. A January 21st Eric, “is do people want Microsoft (Skype) In some cases, though, operators are nant position they once had and are un- online comment reacting to news of Face- or Facebook as their primary voice carrier?” finding it to their advantage to partner likely to ever regain their former glory. book’s free voice service on Wired’s UK web with OTT players. For example, Fon, the That is because operators haven’t just lost site speaks volumes about how OTT players

INFORMILO.COM | MWC 2013 25-28 FEBRUARY | 2013 23

Your customers are banking, paying and buying via mobile Are you ready?

Monitise develops world leading Mobile Money products designed with one clear purpose – to help consumers bank anywhere, pay anyone and buy anything from their mobile. That’s why we’re the partner of choice to Visa, RBS Group, HSBC and a third of the top 50 US banks.

www.monitise.com +44 (0)20 3657 0900 Follow us @MonitiseGroup

WRC_ADVERT_V3.indd 1 2/12/2013 6:14:51 PM