Your guide to the mobile data opportunity

ben_dowdA strong rally in the mobile data market reflects growing confidence about the outlook for mobility as a significant channel opportunity in the UK. Here, Ben Dowd, Business Sales Director at O2, explains the opportunity.

What is the market potential for mobile data within the next two years?
Over the next two years it is predicted that the explosion of mobile data will continue. We anticipate that by the end of this year a quarter of all mobile devices will have email functionality, and this is likely to double by 2010. This is not simply an opportunity for operators - customers want solutions that will allow their office PC functionality to be accessible out and about. While the obvious solution will be simple email, clearly there will also be numerous applications such as Telmap, Destiny Wireless, GPXS, Vettro and hand-e-pix.

How well positioned is the channel for selling mobile data products, and why?
The Advance Business Distributor Channel is very well positioned for selling mobile data products with each of our partners having in-house mobilisation specialists who work closely with O2, BlackBerry and other solutions providers. The key role of the distributor is to take away any uncertainty for customers, deal with all the connection processes and bridge any areas that the fixed line reseller is unclear about. In effect, they make the process a simple one for someone new into this marketplace.

What are the drivers behind the forecast boom in demand for mobile data services?
There are many drivers behind the forecast boom in demand, but the largest by far is email. Mobile access to email and data applications is no longer viewed as a necessity simply for senior executives but is being rolled out across organisations.

We are also seeing an increase in demand for flexible working. Customers expect to be able to contact businesses they deal with 24/7, through the means of their choice. It is no longer acceptable for a customer to wait for a response until someone is back at their desk.

What is the most compelling aspect of mobile data that converts business users?
By far the simplest and low hanging fruit for the fixed line resellers is mobile email.

How easy will it be to inform prospects about mobile data and convert them into users?
We recognise that this is a challenge for the whole industry which is why at O2 we aim to demystify the world of mobile email and applications to ensure they are accessible to all. In order to do this we need to talk to our customers via partners about the value that these solutions can bring to their businesses and not just about the technology itself.

What other revenue streams can a reseller develop based on mobile broadband sales?
Clearly, the more advanced the reseller the more bespoke the solution that can be sold into a customer, enabling greater adoption of applications that will in turn bring greater efficiencies. The greater the raft of products and services the greater the earning potential and the longer customers are likely to remain connected. We have a team of people, including distributors, BlackBerry and O2 resource, that can help support any sale no matter how simple or how complex.

What are the main issues and challenges associated with selling mobile data?
Fear of the unknown is by far the main reason why partners do not sell these technologies. We at O2 and the distributor can make this easy and remove barriers to sale.

How does O2 help resellers break into this new market?
Through the O2 Advance programme we work with our top distributors to help resellers by providing knowledge and training to ensure that a customer gets the best solution for them. Distributors will also ensure they help take the pain and administration away from the resellers by easing all end to end processes. In addition, there is support available by utilising data specialists from the distributor, and potential joint visits with O2 and BlackBerry.

What are the main advantages enjoyed by resellers?
This is a new market for traditional voice resellers and the enthusiasm and willingness to adopt the technology of convergence are overwhelming. Resellers are looking for new revenue streams and if they do not convert their fixed base to mobile data, someone else may. It becomes a financial imperative. Commissions vary and depend on the scale of the solution.