The growing role of the mobile handset
By Olivier Graeff, co-CEO, Swapcom
May 2006
Mobile customers are slowly being seduced by the services that high-throughput networks can now offer. Just as the PC has overcome the hurdles associated with bringing constantly evolving software tools to the masses, the mobile device must now become a user-friendly multimedia device with all the technology options of a PC. Frustration with everything from network quality to complex configurations or compatibility issues had a tangibly negative impact on the take-up of 2G services available over WAP, and to some extent GPRS. What are customers now expecting from their 3G-enabled handsets and how can operators meet those needs?
Automating updates - just like on a PC
First and foremost, customers want simple-to-use services. Just as the desktop PC has become automated, the mobile phone has to open-up to over-the-network operations by the operator that ease configuration and operability issues.
Swapcom Device Management Center is a software tool for operators designed to automate device configurations. 52% of all service settings on the Swapcom tool are now issued automatically as a result of live device detection. No fewer than 17.5 million device configuration operations were registered on various instances of Swapcom Device Management Center in 2005. That translates into a reduction of almost the same number of calls from customers to customer care numbers, and hence a significant leap ahead in simplifying mobile usage. The latest statistics were collected from Swapcom accounts across the five continents which include major mobile operators and newer MVNOs. Swapcom remote configuration services will be available to over 100 million mobile users after on-going implementations are completed in 2006.
MMS was the most popular settings download of 2005 from the automatic device configuration feature. Mobile users enjoy sending and receiving photos for example, but find it hard to get started on the services with their mobile phone.
Swapcom Device Management Center configured an estimated 8 million devices for MMS over the air in 2005. The challenge faced by operators and which has led to such interest in Swapcom's live update tool is that customers are only willing to use MMS if it works the first time - and on whatever device they may have in their hands at the time of trying. Now that the automatic device detection feature of the Swapcom platform enables automatic delivery of service settings to all devices identified as requiring an update, MMS settings are delivered seamlessly to all mobile users, whatever their device. As soon as an un-configured mobile device is attached to the network, the Swapcom platform triggers basic WAP, MMS or e-mail service settings, as well as more advanced SyncML, Instant Messaging, or video streaming settings according to the type of mobile and customer profile. Welcome messages delivered to the user screen advise of the successful set-up. Setting up dialogue of this kind with devices on the network ensures optimal service for mobile users. Once set up for services, the customer will only be happy about using them if they are click-economical. At the 3GSM Congress in Barcelona this year, Sony Ericsson CTO Mats Lindoff spoke of the keystroke limitations inherent to the size of the mobile phone and reminded of the 3-click-max rule for marketing successful services. According to Mr. Lindoff, the real issue today was not the ability of technology to deliver but about making things simple, both for operators to manage and for end-users to enjoy.
From remote diagnosis to troubleshooting
Increasing reliance on software in mobile phones carries an inherent risk of increasing the potential for faults in a device. The job of pre-sale handset testing has therefore never been more relevant. Missing a problem before the device gets put onto shelves means defective devices get in the hands of users and service usage will be affected. Menu-freezes, keypad errors and application anomalies are an all too common source of headache for customers.
The pre-sales testing of device behaviour is vital but increasingly difficult, as the sheer number of models represents a challenge for tests within an operator context. Global handset production topped 800 million units in 2005, all manufacturers and all markets combined. Even taking conservative estimations that any one operator commercializes no more than around 120 devices at any one time, we may still assume that each one of these will be subject to 3 upgrades per year. Furthermore, as the number of features on devices grows, the device now needs to be tested for a multitude of functions including camera, MP3 and PDA capabilities. Radio tests may show that the device behaves well in per se but the problems may still arise on an applications level. Can the device send and receive multimedia messages, download a ringtone and set up a visio call simultaneously without crashing? Clearly, there is a need to emphasize full testing of software behaviour and interoperability issues before a device launch for the benefit of the customer.
However, the problem of interoperability however does not end on purchase by the customer. New applications, new versions, new content downloads with potential virus contamination means that a network operator also has to find solutions to automate post-sale fixes. Customers usually vent their frustration via the customer care service of the carrier. This of course takes time and is considered inefficient by users who have become accustomed to remote troubleshooting operations on their PC. It also means that the disillusioned customer will be reluctant to spend time getting acquainted with new mobile technologies that he fears will not work.
Mobile device services should work first time and every time
We still hear cases of calls to return faulty devices to a service facility for repair or replacement. This is an expensive process for the carrier and the phone manufacturer, and above all inconvenient for the customer. Such recalls have been estimated to affect 80 million phones each year. One well publicized case is that of the Motorola RAZR. Motorola has sold over 12 million Razr handsets since the first models were launched in 2004, but a faulty component in a batch has raised a bug that makes them drop calls and repower, prompting both a recall and a freeze in sales by 2 operators.
Whether a bug occurs as a result of a manufacturing fault as in the Motorola case, or as a result of a network upgrade which affects the behaviour of a device otherwise bug-free, the recall issue reflects a more deeply rooted problem, namely the ability of network service providers to intervene on the customer's behalf. By automating diagnostics and embedding knowledge into their servers, a carrier can arrange for update or correction patches to be sent over-the-air without any user interaction at all. The undisputed leader in the domain of automating such updates is Swapcom. Its Device Management Center enables carriers to diagnose and troubleshoot device-related issues. Market feedback indicates that there are valid use-cases for allowing subscriber prompting as part of the overall firmware update operation for both the download as well as the installation. Swapcom Device Management Center can initiate patch file delivery when prompted by the customer, providing the device is equipped for FOTA (firmware over the air) delivery. FOTA is increasingly being considered by all operators as a solution to future-proof the device models that they have in-store. In France for instance where 80% of all mobile-devices are sold through the operator and where a points-based loyalty incentive scheme means that the cost of ownership increases proportionally to the number of replacement devices per-customer, it is in the operator's interest to extend device lifecycles through OTA updates. As device replacements also of course come at a cost for mobile users, particularly now that they are becoming more sophisticated and therefore more expensive, FOTA updates are an obvious answer for mobile users, most of whom expect to be able to use their device for at least 2 years. As a result, a number of major operators in Europe have astutely integrated FOTA functionalities into their half-yearly specifications to handset manufacturers. Motorola has a clear lead in the domain. The Motorola PEBL with remote update functionalities managed by the Swapcom platform is already on sale in the UK. Siemens and Nokia have successfully implemented FOTA onto their top of the range devices with commercialization imminent. However, as with all new technologies, it will take some time before FOTA becomes ubiquitous. Swapcom believes that FOTA will change the way mobile phones are managed by the operator, for the benefit of the customer.
Keeping the customer in control
Customers are expecting the mobile phone to play a more powerful role in organizing their communication needs, from file storage to multimedia messaging. Content delivery management and storage space are therefore predominant issues for users set on having rich content and IT applications in their mobile.
Now that customers can expect to communicate seamlessly by email, MMS or voice over any device, they need storage facilities to manage the files arriving on their mobile. To that end, USIM cards now provide for an extra 250 more address book files to cater for email address entries. New generation SIMs also require less power than 2G SIMs. This is important, since power-hungry backlighting and heavy use of mobiles for multimedia mean that even the enhanced newer batteries are challenged to deliver.
Offering services that meet individual multimedia needs will be a key issue for operators in generating data traffic. This includes manipulating software on standard devices to suit the needs of individual users. In terms of capacity for multimedia content downloaded onto mobiles, operators need to be able to control the process end-to-end by ensuring compatibility, astutely marketed offers and anti-spam facilities Mobile users are likely to churn if the "intrusion factor" inherent to the close physical contact with their mobile phone makes them feel harassed, or if consistently unreadable files are delivered to their handset.
The ability of Swapcom Content Distribution Center to adapt content according to user and device profiles represents a significant marketing advantage. The flexible, user-centric tool is capable of delivering personalized multimedia content adapted to the customer device. A user-friendly Web interface hosted by a content provider may run this service to distribute content on request over WAP or MMS. Swapcom software allows operators to offer "opt-in" file delivery to a user handset so that customers can benefit not only from corrective patches, but from software updates that lengthen the lifecycle of their device.
Corporate handset needs
Nokia estimates the smartphone market at 100 million in 2006. Smartphones run principally on Windows Mobile or Symbian OS and are gaining popularity largely thanks to email push functions compatible with Blackberry Seven mail or Visto mobile. The Nokia E61for instance is one of the "Enterprise" range which has embedded device management functions for the latest offers in application management. The main service differentiator for corporate customers is the ability to remotely "Lock & Wipe" the device in case of loss or misuse.
These device management services are set to become the basis on which corporate decision makers will commission operator services for their fleet.
Corporate wipe-and-lock security services, rights management and data storage back-ups are just a few examples of how Swapcom Device Management Center can make the mobile phone function more like a PC. Company IT departments can remotely order mobile device-management interventions through an interface to the service, just as they can monitor and control their fleet of desktop computers.
The flip side of open systems is of course that they interest pirates. Recent deals between operators and well-known anti-virus companies such as McAffee that have developed a mobile-specific solution are proof that the risks of large-scale mobile virus attacks are growing. The obvious implication of a virus attack for both operators and corporations is lost business from handset or system downtime. One preventive action to the threat is to issue a warning message to the handsets of those customers whose device-type makes them vulnerable to an attack. An all-round software tool like the powerful Swapcom "Device Management Center" can identify all the mobile users equipped with devices present on the network likely to be targeted and proactively issue a batch delivery alert advising how to prevent an attack. If device-compatible software protection is available, the tool can send it over-the-air. Operator Orange has recently begun proposing the F-Secure anti-virus software to all its customers equipped with Symbian S60 or Windows Mobile run devices.
As far as business data protection is concerned, a company could arrange for a "device management" solution to be set-up by the operator in order to segregate their employees from parts of the corporate network, by using a rules system that prevents them from using certain types of access or which prevents them from accessing particular places on the public Internet.
Forewarned and potentially armed against an attack, corporate decision makers can take the necessary precautions to protect both their company data and their employee handsets. They can deactivate certain features on the handset remotely, manage downloaded applications etc. The benefits for the cellular carrier are twofold. Firstly, the customer appreciates the efficiency of the alerting service and the black-listing access options. As such, he is more likely to remain loyal to his carrier. Secondly, and more tangible in terms of both revenues for the carrier and business usage for the corporate user, no precious business is lost to equipment breakdowns and no secrets are leaked from the system.
The mobile device is becoming a powerful tool for users, who will use it in the near future as they use their PC today. The challenge today is to make the user -experience simple and trouble-free. Remote configurations and updates will be largely responsible for achieving this ambition.
Swapcom. Simplifying the mobile experience.
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