O2 taking a bite out of the forbidden fruit?
July 5, 2007 //
I’m reading more and more reports coming in that O2 is going to sell the Apple iPhone in the UK. However, this doesn’t make sense to me because it’ll mean users will have open access to the Web and quickly realise that iMode (premium content which makes up for most of O2’s data revenue) isn’t what they want. What they’re looking for is the ability to access whatever Web site they want and not just what O2 want them (you) to see.
Then again, if O2 is to ship the all singing and all dancing device, they’re likely to either remove the Web browser altogether, or make it difficult to find. This approach isn’t unusual for Operators when installing their own ‘variant software’ before distribution to retail outlets. Just because mobile vendors include specific applications, it doens’t mean Operators will include them when selling on to customers.
O2 is certainly not likely to place the Web and iMode browsers where they have equal prominence. Or are they? Perhaps they productised iMode to make it’s proposition more attractive to Telefonica and now realise it’s time to offer off-portal content.
The last time I wrote about the Mobile Web vs the Mobile Internet (cough; premium WAP stuff) I received a stunning word count of more than 17,000 words in comments alone. That’s a small book. To add to this, they were from very qualified people I trust at organisations such as Google, MobileAware, .mobi, WURFL and Opera. As a founding member of the W3C Mobile Web Initiative Steering Council, this is a subject close to my heart. It’s an area which attracts a lot of much needed debate too, which I quite like.
In short, I haven’t seen the iPhone yet, but I’ve always believed (before Apple announced its launch) that it will revolutionise how people perceive, consume and create content for small devices such as PDAs and mobile phones. It will demonstrate that the Mobile Web is not only about train timetables and weather information for business people traveling from Slough to London, as most mobile specific experts seem to believe.
There are more people in the world without access to the Web than there are who do. Most of these people live in developing countries. They’re likely to use mobile devices as their primary access point to the Web as it’s cheaper to roll out mobile networks than it is fixed line. Don’t be fooled into thinking users in developing countries don’t use the latest devices either, because they do. They’re fantastic early adopters.
If we were to sneeze in the European mobile market today, the US would catch a cold 2 to 3 years later. However, this may soon change with the release of the iPhone if the yanks finally realise the full potential of mobile devices and how they can engage consumers. As I see it, the iPhone is on par with the release of the first Intel Pentium chip, which helped to revolutionise our thought process regarding the capabilities of personal computers and the applications that could run on them.
If you decide to take a look at my original post about Mobile Web vs Mobile Internet, make sure to read the comments as they splintered off into a separate conversation to the original post. Even the original title is a little different to the main conversation.
ian hayward says 
cheryl says 
BankCardUSA says 
Stephanie says 
I am disappointed to see that O2 are to be the ones to supply the iPhone in the UK for a couple of reasons.
The fact that it pushes i-mode, whatever it is… a portal, a browser(?), even the definition from the o2 site leaves a lot to the imagination, means that it is possible that they will hide Safari. I’m sure they couldn’t get rid of it though.
Secondly, O2 have awful data tariffs. They are perpetuating a dark age of the mobile web by giving “1Mb inclusive browsing allowance each month” on their normal tariffs and charging £3 per MB after that.
I was hoping T-mobile would get the iPhone, as their Web ‘n’ Walk tariffs would allow the data needed to make use of a phone with such potential (even though they include a Web ‘n’ Walk browser). Even Vodafone have started to offer better deals on mobile Internet.
I would like to see the iPhone revolutionise the mobile web too, but unless O2 pulls something spectacular out of the tariff bag I fear the mobile web will be set free by the phone but restricted by your wallet.
July 5th, 2007
Surely O2 can’t get away with constraining the iPhone with imode? The ‘internet in you pocket’ message is a powerful aspect of the iPhone pitch, and imode is a long way from that! Given that Vodafone and even Orange must have been contenders, wouldn’t Apple have been in a reasonably strong position to insist on full and unconstrained data use?
I agree, though, that the Mobile Web as a concept will not go anywhere far until the telcos give up some of their daft notions of walled gardens and premium content…
Anyone remember O2’s silver surfer?
July 5th, 2007
@Phil - I hear you. I’m a little sorry to hear of the possibility of O2 selling the iPhone. iMode confuses a lot of people because of how it’s marketed (intelligently). Firstly, I like iMode and any other WAP equivalent as they provide a good user experience. That said, iMode is no substitute for the World Wide Web that you access on your desktop PC. It’s impossible to access that unless O2 provide a HTML/XHTML browser, not just an iMode browser, which will not display ordinary Web sites.
@Paul Miller - technically they can get away with what they want. However, I don’t think Jobs would permit it (assuming he’s away of the possibility).
July 5th, 2007
iMode has always been a flawed technology in Europe, so I for one will welcome a data-friendly device without a kneecapped browsing experience.
Perhaps the capture of the iPhone will go hand in hand with flat rate data, better customer services and a proper ecosystem of content and apps with realistic prices attached.
July 5th, 2007
Hi Paul
A couple of things. If O2 take the iPhone then Safari will be front and centre, it is central to the iPhone functionality. If you look at all of the adverts and the Steve Jobs keynotes you will see that Safari/mobile web is one of the key fundamentals of what the iPhone is. In fact at the initial launch at Macworld 2007 the iPhone was introduced as a 3-in-1 device: 1. a mobile internet device, 2. a media player and 3. a phone.
Furthermore, if you look at the reviews from the users it would seem that the phone UI is the weakest aspect of the device (as well as the EDGE usage). As an aside there is a small % of people are trying to find ways to use the device as an iPod with WiFi internet (ie ignoring the phone aspect of it and faking the AT&T activation).
On top of this is the fact that Apple appear to be in control in all the negotiations. My take is that this was the stumbling block with the EU deals and everyone took a decision to watch the US launch and see how successful it was rather than kowtow to Apples demands. Once the US launch was seen as a success (over a 500,000 activations and rapidly heading towards the 1,000,000 mark ) then the final deals were signed. My feeling is that what has finally driven the Operators to sign up is the large amount of transfers from other operators that the iPhone has brought AT&T.
My other reason for feeling that Safari will be front and centre is the emphasis on the mobile sites, widgets and web apps to substitute for the fact that there is no SDK or way of loading in third party apps. Launch without Safari and all of this functionality is lost.
With regards to data plans I would say wait and watch. It would seem current plans would not necessarily be related to iPhone plans. The AT&T launch brought iPhone specific plans …. a wide range of call/SMS type plans plus unlimited data on them all. Basically the iPhone will be a crippled device unless you have a proper data plan.
July 5th, 2007
I have to say that the string of comments is interesting and I agree that iMode has never taken off in EU as it has by DoCoMo in Japan.
Putting that aside, I would like to point out that at 3GSM, Tanya Field, Director of Content for O2 UK, talked about the directions that O2 is headed with regards to Mobile advertising. The walled garden approach is just not going to work. It will be important that the walls are broken down and as broadband speeds come to mobile devices, unlimited data plans subsidised through mobile advertising will be a key driver.
Not only the iPhone, but Windows Mobile Devices, and many of the newer smartphones (Nokia, Samsung, etc.) devices are moving towards the browser being a main component of the device. It does not surprise me at all that O2 would think about launching the iPhone. They will have to package a data plan that makes sense with the device or they will have a lot of unhappy customers who do not fully understand the amount of data used when browsing with a more full featured browser.
BTW the T-Mobile web-n-walk browser is just a rebranded Opera mini browser. I do not think that T-Mobile would be successful in getting the web-n-walk branding on the iPhone. I just don’t think that Apple is going to get on that train. This as Phil stated is unfortunate because T-Mobile relay does seem to get data plans and the importance of driving browse traffic. It will be very interesting to watch and see how quickly unlock codes, if any, come out for the iPhone. That way you could use any operator!
July 6th, 2007
Paul: i-Mode marketed intelligently! I suppose so, it seems to me to just be a name for something that you should want, whether you do or not! I’ve been an O2 customer, but not had an i-mode phone from them, if it was that restrictive then I’m glad! Though I did get Opera mini when I was on O2 (and thus started spending too much on my monthly contract!)
Ben: Is the Web ‘n’ Walk really Opera Mini? I have both on my Sony Ericsson K800i and Opera Mini gives a much better experience. Unless Web ‘n’ Walk is an older version of Opera, it is no real comparison.
Perhaps selling the iPhone will cause O2 to pay attention to data plans and their tariffs in general and make them competitive again. Then again, I’d love to see the iPhone cracked so I could use it with T-Mobile too!
July 6th, 2007
@Ben - You’re right, iMode never did take off in Europe. There are lots of reasons why iMode worked in Japan. The main one is that users don’t have a choice. Secondly DoCoMo is in a position to dictate to vendors when to renew devices so that they avail of the latest in technology.
I remember having dinner with DoCoMo’s W3C Mobile Web Initiative rep. He was very concerned about the mobileOK trustmark. He said it would give users the impression that the content on a particular site was ’suitable’. This in fact isn’t true, mobileOK is an assertion about the suitability of a Web site for mobile devices.
After some digging, I realised that he was more worried about the commercial viability of their business model should users end up gaining access to the Open Web (aka not iMode).
I would be delighted to see O2 adopt the open garden approach as I’m quite confident that most if not all, operators will go with flat data tarrifs soon - just like the ISPs did in the mid to late 90’s.
A reliable source informed me that WAP was and continues to be more successful than iMode at O2. So, perhaps they have seen the light
July 10th, 2007
@Phil - I think one of O2’s biggest mistakes was not supplying enough devices which are iMode enabled. How can you get mass adoption using a small number of devices.
@Ben - forgot to ask… know of where we can get our hands on a Windows mobile?
July 10th, 2007