MC2 - Telematics industry to reach USD 12 billion by 2006

The worldwide survey of 5,600 mobile phone users on four continents, has found that 44% of mobile phone users would like to use their phones to handle small transactions such as buying items from vending machines but only two percent had done so. The highest interest in using phones for transactions was found in Japan, where 50 percent of those surveyed expressed an interest in "mobile wallets" and other point-of-sale technologies for purchase of larger items.

"The largest portion of mobile payments will be for content-related services that cost less than $10 each, which are called micropayments, such as ring-tones for phones or other premium content" said Trevor Punt, Managing Director of Bighat Media and organiser of MC2, "Wireless operators are better suited for such payments than banks and other financial institutions. Initially, the micropayments, in which charges are typically added to a user's wireless bill, won't have much effect on standard financial services firms. However, the financial groups could be hurt in the long-term if they don't create alliances with wireless operators to increase opportunities for micropayments". "Consumer tastes in the mobile arena are fragile," commented Punt "so it is imperative that the community of mobile phone makers, carriers, content providers and financial services companies rally quickly to provide mobile cash capabilities before consumer interest wanes".

Outlining the MC2 Conference Agenda, Punt highlighted that it would also be cover the subject of Telematics or in-car communications. " Eventually, all cars will have some form of Internet-based in-car communications capabilities bringing Internet content to a Vehicle via Telematic Services. A recent study found that there were only 27,000 Telematics subscribers worldwide in 2001 but this will increase to more than five million in 2006. It's also predicted that worldwide revenues from Telematics services will grow to about $12 billion by 2006. That represents an annual growth rate of about 66 percent," claimed Punt.

"Because there are so many players and varying needs, the market for Telematics is very fragmented," continued Punt, "The opportunities for new revenue streams from airtime minutes, service subscriptions, and content delivery are confronted by the challenges of integrating diverse technologies in a timely manner and in an affordable package."

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