Internet Portals Service Providers Are Scrambling to Embrace the Mobile Phone Technology to Kickstart the Fledgling Digital Content Market. [QQ;Internet Portals Service Providers Are Scrambling to Embrace the Mobile Phone Technology to Kickstart the Fledgling Digital Content Market
Internet portals service providers are scrambling to embrace the mobile phone technology to kickstart the fledgling digital content market.
The driving force behind the convergence of Internet portals and mobile service is wireless application protocol (WAP) technology that enables wireless service.
Domestic portals are embarking on content and solutions development in order to secure a share of the wireless Internet market which has long been dormant and yet its potential is widely shared by service providers.
The rush of Internet portals comes as competition for new subscribers is intensifying.
With a number of portals overcrowding the domestic Internet market, the reserve for new users is running short. Against this backdrop, Internet portals are trying to tap the 24 million-plus mobile phone subscribers. Unlike the conventional online user base whose database is still shaky and unique traffic is shrouded in exaggerated figures, the mobile phone market owns a solid database on users and information about their behavior, both of which can be used for a variety of marketing campaigns.
Another underlying reason for the marriage of Internet portals and mobile phone service providers lies in the online profit-generation scheme.
A majority of domestic portals sites poured in money to set up homepages and stage costly marketing campaigns to woo more users but they have yet to devise ways to reap profits from the investment.
Currently, most firms rely on advertising revenue, whose scale is still disappointing except for a few dominant players such as Daum Communications Corp. and Yahoo! Korea.
Internet portals view digital content sales to mobile phone users as a steady source of income, while mobile carriers take care of the complicated billing.
All of which suggests portals are moving toward a content provider business model in a bid to stay afloat at a time when the bearish stock market is dragging down the source of capital for their war chest.
WAP is supported by a majority of handset developers and solution providers, suggesting that the standard will shape and streamline the mobile data market faster than anticipated. …