30 Oct 2009 16:23

Mobile Internet to be restructured in 3G era - consultant

Shanghai. October 28. INTERFAX-CHINA - The current business model for 2G mobile Internet networks should be completely restructured in the 3G era, a consultant told Interfax on Oct. 28.

"The existing 2G mobile Internet business model is totally inapplicable in the approaching 3G era," Wang Yuquan, chief consultant with Frost & Sullivan China, said during an industry forum in Shanghai.

Wang explained that mobile Internet should allow the open integration of diversified software and applications, unlike the closed platform model followed in the 2G era.

"Telecom operators need to be more innovative, otherwise it will not be possible to maintain user loyalty to value-added services, due to a lack of attractive content and software," Wang said.

In line with the national 3G network roll out, which is now nearing completion, the mobile Internet market is experiencing rapid growth and industry players have high expectations for the burgeoning sector to drive industry profits.

However, Wang is less optimistic. "Most 3G mobile Internet applications have yet to mature and it will take at least three years for the market to actually take off," he said.

In Wang's point of view, existing mobile content and service providers (CP and SP) will see their revenues shrink as mobile Internet becomes increasingly popular.

"In the future, content and software uploading will be increasingly easy with the mobile Internet open platform, and CPs and SPs will no longer be needed," Wang said.

Wang added that functional mobile Internet applications show real promise in the 3G era, namely mobile payments and mobile navigation applications.