Mobile services and its impact on GPDs and Return on Investment

Growth of broadband, Mobile services and its impact on nation’s GDP and reach of
mobile services to the next billion

By
Kartik Mehta

Under guidance of Dr. Audrey Curtis

Stevens Institute of Technology, Hoboken
December 2009

It is not the strongest of the species that survives, nor the most intelligent that survives.
It is the one that is the most adaptable to change1.
Charles Darwin

1
Charles Darwin quotes http://www.brainyquote.com/quotes/authors/c/charles_darwin.html

1

Index

1. Fourth wave of IT, next big thing in IT: Mobile internet, anytime, anywhere.
1.1 The fourth wave, the era of IT everywhere.
1.2 Convergence of Networks, applications and technology.
1.3 Growth trends in Mobile computing.

2. Is social networking – Transforming personal, community and social culture?
2.1 Community, collaboration, sharing as we moved from Web 1.0 to Web 2.0
2.2 Growth of social networking sites.
2.3 Social networking from fixed laptop, desktops to mobile using mobile graphical user
interfaces “widgets”.

3. President Barack “blackberry” Obama and rise of election campaign 2.0 and
government 2.0, the evolution of era of social intelligence.
3.1 President Obama vs Senator John McCain campaign on Facebook, Twitter, Youtube,
Linkedin. Did internet make a difference in favour of young President?
3.2 Popularity of President Obama in Twitter top 10?
3.3 2009 election fund raising and role of Mobile computing.
3.4 From former President Government 1.0 to President Government 2.0, has the
government become more open and if so how?

4.0 Decline of Broadcasting and the rise of portable online and streaming media
4.1 Why is the age of business model of Broadcasting vanishing, churning losses?
4.2 Declining revenue of TV, radio broadcasters and rise of social media networks like
Twitter, Facebook.
4.3 From Pepsi to McDonald and Ford to Yahoo, are enterprise adopting social networks
brand building and for communicating with their communities.

5. Merging of three screens, Television, Laptop and Mobile.
5.1 UnUP, Universal plug and play protocol and its role merging of three screens.
5.2 Growth of online video streaming and hours spend by consumer
5.3 Birth of Mobile TV standard and its impact on Mobile video in future.

6. Education from Lecture in buildings to collaboration anywhere using mobile tools.
6.1 High cost of present delivery system of education. Can Mobile education help in
lowering cost of education.
6.2 Education from one sided teacher to pupil communication to collaboration between
teachers and students.
6.3 e-Readers, digital books, youtube education channel and the evolution of
Education 2.0 – Mobile education anytime, anywhere, at lower cost with collaboration.

7. Mobility, GPS and Location based services.
7.1 Mobile enabling buying and selling of both products and services.

2

7.2 From travel tickets to nearest restaurant to users feedback of product and service,
features increasing going Mobile.

8. Mobile payments
8.1 Mobile payments from myth in 2004 to a reality in 2006 and beyond.
8.2 Simplicity, the name is Mobile payment and lowering of transaction cost.
8.3 Role of PayPal mobile in success of micropayment using Mobile.
8.4 Big banks from Bank of America to Chase, jumping in to encash on growing Mobile
payment service as well retain customers and loss of business in long run.
8.5 Mobile payments beginning to go mainstream after success of text based Mobile
payments for Haiti donation.

9. Bibliography.

3

Fourth wave of IT, next big thing in IT: Mobile internet, anytime, anywhere

Is Mobile internet, mobile services and
its impact on gross domestic product,
return on investment the next big change
for humans?
But, first, why we are going are doing
this search and then we examine how
technological innovations like Mobile
internet, are effecting and will continue
to have effect on lives of millions in
future?

Forrester researcher Christopher Mines,
in his presentation, “The next big thing
for IT” in June 2005 professed about the
“The fourth wave of IT”2. Mines
visioned four eras of IT and Morgan Stanley in its 2009 Technology
consequently named each era as four report at Web Summit stated that
waves of Information technology as per “Mobile internet would be bigger than
their respective eras. His classification of what most think”.
these eras are, first wave, from 1956 to
1976, the era of main frame computers,
the second wave , from 1976 to 1992,
the era of personal computers, the third
wave, from 1992 to 2008, the era of
networked computing and fourth wave,
the era of IT everywhere3.

The Forrester report stated Mobile
internet would bring changes and have
far reaching implications on in global
trade and commerce (Figure 1) 4.

2
Forrester researcher, Christopher Mines,
presentation, “The next big thing for IT”
http://www.forrester.com/rb/analyst/christopher_
mines
3
Forrester report at WITSA, World Information
Technology and Services Alliance
http://www.witsa.org/presentations/
4
WITSA, World Information Technology and
Services Alliance
http://www.witsa.org/hyderabad08/WITSA_Publ
5
icPolicyReport08.pdf http://www.slideshare.net/techdude/economy-
internet-trends-2009-from-morgan-stanley

4

On examining the hypothesis that mobile handling of data traffic in today’s age of
would have a greater than any other network traffic congestion. With advent
technological breakthrough in the past, of Wimax specially the Wimax 16e, a
we find that. The answer lies in the technology which is compatible with
penetration of mobile in hands of the both fixed and mobile Wimax and
consumer. technologies like LTE, convergence is
taking place amongst the network
providers be it Wireless, fixed and
broadcast.

However, it not just the number game
that has led to excitement around the
globe for mobile technologies in recent
past.

Ramjee Prasad in his paper explains why Along with these companies like Intel,
we are now seeing rise of Mobile as the Qualcomm developed small and better
new client server frontier replacing the processors for mobile, better chips for
Laptop and desktop. He mentions that enabling reception of dual technologies
there is a convergence of Networks, like GSM, GPRS, WiFi on single chip
applications and technology. and software defined radio for military
use.
Technology and Networks convergence: Coupled with high data rates came the
The networks architecture are maturing proliferation of devices from
from days of using ATM, to all IP, Smartphones like I-phone to Netbook
making things simpler. From days of GPS, E-reader, Mobile internet device
best effort service, networking has (MID) based on newer and better
moved to Diffserve and MPLS providing operating systems like Apple mobile,
control over data control and preference Windows mobile and recently Android
in data flow required for efficient operating system has led to better mobile
6
http://www.cloudfour.com/blog/ hardware systems.

5

These advancements in the mobile and delivered over the copper wires to now
wireless technology has made possible, when Voice is being delivered over the
what was impossible a decade ago Data using technologies like UMTS,
possible now – emergence of mobile GPRS, CDMA, lately Wimax.
applications market.

High throughput rates on Mobile due to
advent of 2.5G and 3G technologies,
smaller form factor of mobile is making
it easy to carry. Consumer’s need for
applications ranging from instant
information to emails to mobile maps to
mobile banking to VoIP calls using
smartphone to watching favorite video
streamed on smartphones, checking
weather in morning to train schedules, to
meeting alerts, checking balance bank
statement. This has made mobile central
part of consumer lifestyle.
Better browsers for mobile like Opera,
better mobile operating systems like
Apple, Android, Symbian by Nokia,
RIM, Windows Mobile have made
mobile experience more easier, faster,
for the mobile user. The opening of
mobile applications market from the
above companies etc have further
enhanced the value of Mobile
smartphone to consumer resulting in
sudden spurt in demand of smartphones
and also Netbooks, smartbooks7.
This movement of applications from
desktop platforms to wireless and mobile
configurations may have a significant
impact on future daily activities.8
These developments have led to
fundamental change in Internet delivery
from days of Cable when the Data was
7
TOWARDS MORE USABLE MOBILE
APPLICATION DEVELOPMENT
Dr. W. M. Lim, Mobile Technology, Applications
and Systems, 2005 2nd International Conference on
9
Morgan Stanley Economy + Internet report
8
Comparative study of "functional" mobile October 2009 at Web 2.0 Summit – San
applications, Papadopoulos Homer, Francisco www.morganstanley.com/techresearch
Athens, Greece speaking at Personal, Indoor and 10
Mobile Radio Communications, 2008. PIMRC 2008. NTT DoCoMo http://www.nttdocomo.com/
IEEE 19th International Symposium on

6

and 4G technologies over the next
several years. The rollout of LTE will
greatly encourage this migration starting
in 2011.”11

IDC latest report brings good news for
Telecommunications and particularly
portable PC (Mobile, Netbook industry).
Key IDC findings from this market
outlook include:
“1. Worldwide cellular chipsets will
grow at a 9.3% compound annual
growth rate (CAGR) on a unit basis from
2009 to 2014. Given the above mentioned trends it is
2. While cellular broadband applications safe to say that portable PC
made up less than 7% of this unit (Smartphone, Netbooks, Slates) would
volume in 2009, this market will grow at soon become the new client server for
a 35% CAGR to account for over 16% masses, a position once enjoyed by fixed
of total chipsets by 2013, far outpacing laptop, desktops, and two, that we are
the growth in the mobile phone market. entering the era of “always connected
3. While most cellular broadband with the world via Internet anywhere,
chipsets have been consumed by anytime”.
industrial/M2M applications prior to
2008, portable PCs and mini-notebooks
(also known as netbooks) will drive a
majority of the segment growth going
forward, followed by a variety of other
consumer, health/medical, and
automotive applications. 11
Portable PC rise
4. Strong growth in cellular broadband, http://www.idc.com/getdoc.jsp?
primarily driven by portable PCs, sessionId=&containerId=prUS22154210&sessio
mininotebooks, and mobile Internet nId=AKSDRCJNSHOXYCQJAFDCFEYKBEA
VAIWD
devices (MIDs)/smartbooks will help
accelerate the migration of this segment 12
Morgan Stanley Economy + Internet report
from 2G and 2.5G technologies to 3.5G October 2009 at Web 2.0 Summit – San
Francisco www.morganstanley.com/techresearch

7

Social networking – Transforming social cultures

This is the front cover of Time magazine If we search for the reason for this shift
December 2006 year. we would discover that from internet of
1990, the dot.com, bubble era to current
Mobile Wireless, the Internet has
changed drastically. And that has led
web changing from Web 1.0 to web 2.0.
The distinguishing features of today’s
web are that the consumers, the users
like me and you, we are today the
creators, the distributors as well as the
consumers of the content. Thanks to
Web moving from desktop, laptop to
mobile, the rate of growth of
communication has increased drastically
as well from the one lane traffic of
1990s, the internet of today is a two way
phenomenon wherein users have donned
the role of authors. Thus, there is more
13
explosion of content available for
consumers from newspapers, to blogs to
images to videos.
YOU are the person of the year (2006),
says David Carlson, the author of the
cover story. The author says though the
year 2006 the war in Iraq, Aghanistan,
Sudan made headlines, but if we look
from a different lens, one will see a
different story,
“The story about community and
collaboration on a scale never seen
before. The new web, called 2.0, will
change the world forever”.
The author goes on to say that source of
his motivation is that the social web.
“The social made a major break-through
with reader content based sites
wikipedia, Slideshare, YouTube,
Facebook”14.
Web 2.0 as a platform has reduced the
13
Front cover of Time magazine Dec 2006 cost of production by publishing houses,
http://davidreport.com/blog/wp- the cost of marketing and the cost of
content/uploads/2006/12/time.jpg distribution has virtually become zero.
14
Author David Carlson
15
http://davidreport.com/blog/wp- Flick photo of Web 1.0 vs Web 2.0
content/uploads/2006/12/time.jpg http://www.flickr.com/photos/dionh/234525331/

8

This means that the not only the overall institutions, centralized media, today
cost of producing the content has gone they are relying on their respective social
down tremendously but the distribution network, social media and communities.
of content is more spread far and wide.
Also the sharing content between
families, friends and communities has
become lot easier making communities
more closely connected as well rise of
collective community intelligence.

The result is that social networking sites
have been seeing phenomenal growth in
last three-four years. 18

16
Whether an individual needs to know
about performance of sport events they
both like, like many fans do on Yankee
www.facebook.com, or a job seeker’s
quest for networking, contacts, jobs
postings do on sites like
www.linkedin.com, or seeking latest
news in specific field digg.com/ or
www.google.com/reader/
Or sharing favourite video or TV
broadcast on www.youtube.com or
www.hulu.com or seeking review of
product to buy on www.amazon.com,
social networking has changed the way Neilson, the marketing and media rating
we interact with rest of the world. agency, in its April 2009 report stated
It a nutshell, unlike the past, where that “Time spend on sites like Twitter
individuals, communities relied on 17
http://isabelsabadi.files.wordpress.com/2009/05
/ist2_5474170-social-network.jpg
16
David Amano, Harvard Business publishing
18
http://darmano.typepad.com/logic_emotion/2008 http://blog.nielsen.com/nielsenwire/
/10/have-we-come-fu.html

9

has grown by 3700%, while Facebook
by 700% on a April 08 to April 09,
year-over-year basis. While in terms of
unique visitors, Twitter saw increase of
1,382 % year-over-year”, between
2008-09, making it the fastest growing
site in the Member Communities
category for the month”.

youtube.com are today not just
limited to desktop, laptops but it can also
be seen anywhere, anytime using
Smartphones like I-phone, HTC
CEO of Nielsen Online, John Burbank, Android, Blackberry etc.
stated that “Social networking has 22

become a fundamental part of the global
online experience. While two-thirds of
the global online population already
accesses member community sites, their
vigorous adoption and the migration of
time show no signs of slowing.”20
“Time spent viewing video on social
networking sites increased 98 percent
year-over-year, according to Nielsen. In
the past, TV networks had variety of TV
channels, catering to genres like News
and Politics, Sports, Entertainment,
Children, Comedy. Today, similar,
channels are coming to Video portals
like youtube, veoh.com. Video
streaming using sites like

19
Twitter, the fastest growing site
21
http://blog.nielsen.com/nielsenwire/online_mobil http://blog.nielsen.com/nielsenwire/
22
e/twitters-tweet-smell-of-success/ www.morganstanley.com/techresearch
20
Social network, the new global footprint.
23
http://blog.nielsen.com/nielsenwire/global/social www.morganstanley.com/techresearch
-networking-new-global-footprint/

10

And, that explains the sudden rush of TV web portals like Facebook, Twitter,
Networks to Web, from NBC to CNN to youtube are aggregating the intelligence
ABC, in last couple of years. No one and making it collective intelligence
wants to loose business and hence TV done not by humans as in the past but by
networks are adapting to new medium of machines.
web with changing times. However, the bigger growth is expected
in coming year and years ahead as more
and more consumers are accessing their
social networks via Smartphones,
netbooks. Morgan Stanley report stated
that 20MM plus active Mobile users of
facebook and that the Mobile Facebook
users on average are 50% more active
than non-Mobile users. The report also
cited that 1MM users commented on
their friends status changes on Mobile
within the first 24 hours of this features
launch.

Given the above shift in medium of
communications, it is safe to say that we
have entered the era of Mobile social
networking and instant communications.

One of the biggest gainers has been the
consumers.

While, the Social networks gaining
ground over email, once thought to be as
killer application, marks coming of age
for social networks. It also marks
beginning of Intelligent web. In case of
Web 1.0, the intelligence was locked
inside the Personal computers of
individual authors of content. But, with
Web 2.0 it is available on Web. And,

24
http://www.insidefacebook.com/2009/04/19/mi
ss-the-old-news-feed-use-facebook-for-iphone/

11

President Barack “Blackberry” Obama, US Elections 2.0 and US government 2.0

“Were it not for the Internet, Barack
Obama would not be president. Were it
not for the Internet, Barack Obama
would not have been the nominee,”25

Arianna Huffington, editor in chief
of The Huffington Post, at “The Web
and Politics” panel at the Web 2.0
Summit 2008 in San Francisco.

However, the Huffington Post editor was
not alone in her assessment. Then Sen.
Barack Obama was named “Advertising
Age's marketer of the year for 2008”26
indicating that well before he entered the
White White house, he's already won
over the nation's brand builders.
Linda Clarizio, president of AOL’s
Platform A, said of Barack Obama, “I
think he did a great job of going from a
relative unknown to a household name to
being a candidate for president”.27
On Facebook, if we look at Facebook
The many faces of Obama profile of President Barack Obama, we
find the President has a supports base of
6,943,604 supporters28, while Senator
John Mc Cain has supporter base of
512,774 supporters 29.
SMS Management & Technology

On Twitter, if we see President’s Twitter
profile we find, people whom President
is following, people following the
President’s tweet message and his listed
friends on Twiiter they are
747,742following, 2,791,076followers,
Consulting | Technology | Enterprise Solutions
27,256listed 30 as compared to Senator
John McCain profile page that shows

25
Web summit 2.0 in 2008, SFO
28
http://www.web2summit.com/web2008/public/sc Barack Obama,US President on Facebook
hedule/detail/5066 http://www.facebook.com/barackobama?
26
Advertising Age magazine q=barackobama&ref=ts
29
http://adage.com/moy2008/ Senator John McCain on Facebook
27
President of AOL’s Platform A http://www.facebook.com/johnmccain
30
http://www.adsavvy.org/obama-wins-ad-ages- Barack Obama,US President on Twitter
marketer-of-the-year/ http://twitter.com/BARACKOBAMA

12

66following, 1,622,312followers and
3,768listed 31respectively.

On Myspace.com Barack Obama
has 1889889 friends and
130449 comments 32 implying a
President Obama MySpace profile
generates a good amount of interaction
between the President’s followers and
target audience while if we look at
Senator John McCain profile page on
Myspace.com had no details of friends
or comments by followers33.

The extent of popularity of President
Barack Obama could be seen on The
Twitterholic.com, the site that tracks top
White House on youtube, Twitter,
100 Twitterholics based on number of
Facebook provides feeds of events
followers. Site says President Obama is
involving White House as they happen,
the Twitter fifth most popular user with
making information available for
CNN above him fourth position and
masses, creating communities and
Britney Spears on number 2, Orpah
political debates but with greater
winfrey on number six, New York
participation of masses than in the past.
Times on number 18 to give the big
picture of President’s popularity on
Twitter while Senator John McCain not
figuring in the list34.

The methods of online presence then
Senator Barack Obama used for creating
history and winning the Presidency, the
use of online tools like Twitter,
Facebook, youtube as medium of
information dissmentaion continues.
Not, only is information updated on
White House website, but information is
also available Twitter, Facebook,
youtube, something that not be done in
the past.

31
Senator John McCain on Twitter
http://twitter.com/SENJohnMcCain
32
Barack Obama,US President on Myspace.com
http://www.myspace.com/barackobama
33
Senator John McCain on Myspace.com
35
http://www.myspace.com/johnmccain White House on Twitter
34
Barack Obama,US President ranking Twitter http://twitter.com/whitehouse
http://twitterholic.com/

13

news organizations reported about his
determination to hold on to his
blackberry and have a similar device
with him in White House. The wired
magazine reported that “Many agree that
stripping Obama of his BlackBerry
would make his transition into office
extremely rough. Obama is recognized
as the most tech-savvy president to date.
Using the internet as a fundraising and
organizing tool, Obama’s presidential
campaign was the most digitally
sophisticated organizing apparatus of
any presidential campaign in history39”.

John Podesta, co-chairman of the
Obama-Biden Transition Project wrote
in LA Times that “An off-line Obama
isn't just bad for Barack. It's bad for all
of us. The president's ability to reach
outside his inner circle gives him access
to fresh ideas and constructive critics”40;

Lets examine if Internet, Mobile internet
using his Blackberry, has played a role
in boosting then Senator Barack Obama
to President Barack Obama. For the
same, we do a comparison of the
traditional modes of information
dissemination versus Internet and more
specifically Mobile internet.

1. The service provided by Broadcast
TV, Radio, newspaper advertisement is
Popular commentator at O’Reilly radar, spreading of information about the
Joshua-Michéle Ross, says that “FDR
was our radio president, JFK was our
television president and Barack Obama mean-to-be-an-internet-president.html
will be our Internet President”38. Many 39
President Obama determination for having
36
White House on youtube.com Blackberry in White House
http://www.youtube.com/user/whitehouse? http://www.wired.com/gadgetlab/2009/01/obama
blend=1&ob=4&rclk=cti -my-blackb/
37 40
White House on Facebook President Obama determination for having
http://www.facebook.com/WhiteHouse?ref=ts Blackberry in White House
http://www.latimes.com/news/opinion/commenta
38
What does it mean to be Internet President ry/la-oe-podesta20-2009jan20,0,2226079.story
http://radar.oreilly.com/2009/01/what-does-it-

14

candidate. Internet and mobile internet In contrast life of campaign message is
provide the same service. 24x7 that enables the volunteer of a
political party, target voters to view the
2. Unlike Broadcast TV, Radio, information anytime 24x7, anywhere.
newspaper advertisement, internet video
is virtually free. Hence, same service at 7. Internet allows campaign message to
virtually zero cost can be provided by respond to opponents in an agile manner
Internet with sites like youtube, unlike a phased manner of software
dailymotion, metacafe. Yahoo video, development life cycle in TV, Radio,
veoh.com. newspaper advertisement.
An event occurs, an candidate to write a
3. Unlike Broadcast TV, Radio, reply or record a video and post on video
newspaper advertisement which is a one portal or website in no time, while in
way communication from the candidate TV, Radio, newspaper advertisement
to the target voter, the Internet based candidate might have to look to raise
campaign is two way communication money for buying a spot and then look
from the candidate to the target voters for space, if available, in next morning
and from voters to the candidate via or evening TV broadcast or newspaper
blogs, postings on web, social publication.
networking sites like facebook, myspace.
Hence, internet provides room for 8. And, use of Internet for political
interaction and collaboration between discourse was not limited to election
the candidate and the voter, other public campaign alone. President Barack
figures which enables better informed Obama and his team has brought
discussion. government on internet and more
specifically using social media making
4. Internet and more specifically mobile his government set standards of
internet audience is huge and growing Government 2.0.
specially the undecided young voters.
And, it is not just White House that has
5. In political campaigns, media often adopted Government 2.0, other Federal
filters out candidates views and presents governmental agencies, State
the TV channel’s version of candidate government agencies are catching up
views. But, with internet video too, making Government 2.0 a trend
information is passed in direct manner rather than an isolated case of existence.
without any third party in between
adding the authenticity value missing in
traditional means like TV, radio.

6. Life of a campaign message is more
longer in Internet as video on Video
portal or message on a website as against
a TV or Radio broadcast or newapaper
ad which happens on a particular day
and time and vanishes.

15

And, in State government’s Twitter site,
right from
1. Government of Massachusetts,
“ massgov Massachusetts Libraries --
There's something for
everyone! http://ow.ly/10g97” to

2. “GovernorRiley We have jumpstart
job growth in Alabama now - not next
year, not two years from now - but right
now. Here's our plan:
http://tiny.cc/pwVGo”, to

3. Government of Arkansas
“Arkansasgov Gov. Beebe's Weekly
Column - Challenging our
Students in Science, Math and the Real
World: http://ow.ly/10jiM 45”,

On searching popular social media sites
Facebook, youtube.com, Twitter one
finds that apart from White House
presence there other federal and state
agencies are catching up with ideas,
choice of communication medium
favorite to President Obama. And,
presence on social media space is not
just being present for sake of presence. t
President Obama led White House has
1,691,994 Followers and his team has
sent 175 Tweets on Twitter42, White
House 445,844 fans on Facebook43 and a
separate dedicated channel called
WhiteHouse channel on youtube.com44
Even the RecoveryDotGov is on twitter
41
Various state government, state Governors giving updates about Federal funds
now on Twitter spending and details about the spending.
http://twitter.com/GOVsites/state-government
White House on youtube.com
42
White House on Twitter http://www.youtube.com/user/whitehouse?
http://twitter.com/whitehouse blend=1&ob=4&rclk=cti
43 45
White House on Facebook State government on Twitter
http://www.facebook.com/WhiteHouse?ref=ts http://twitter.com/GOVsites/state-government
44

16

While Federal Communications
Commission is on Facebook.

48

Government agencies announcements,
gazettes that were in past releases as
press release, in newspapers for
dissemination of information to the
FCC is just one of the many agencies of masses, now happens in much faster
the Federal government and less than manner, with greater degree of public
one year of its existence it has 1,612 participation, with sense of community,
fans47 while state department like at a lower cost, less amount of effort on
Department of education, New York has part of government agencies.
as many as 2912 fans on Facebook.
More importantly, Facebook, Twiiter
have brought information for use of
average citizen and thus making it a fan
club where two way discussions can take
place and hence greater degree of scope
of participation.

However, the latest in trend has been the
Widgets of white House that has caught
the attention of masses. Launched in
January 2010, this widget enables
getting information instantly on I-phone.

The vision of open Government,
President Obama led White House has
46
Federal Communications Commission on
48
Facebook http://www.facebook.com/FCC?ref=ts Department of education, New York fans on
Facebook
47
FCC fans on Facebook http://www.facebook.com/NYCschools?
http://www.facebook.com/FCC?ref=ts ref=search&sid=521114188.1511237012..1

17

started, other governmental agencies are passengers travelling via Amtrak to get
now following or catching up. instant information about train schedules
with switch of a button on their
Amtrak recently released its Widget, Blackberry, I-phone.
making it possible for thousands of
Decline of Broadcasting and the rise of portable social media

Eight decades after pioneering the But, is this something new unseen event
concept of broadcasting, NBC, the or was it coming for years.
leader in the broadcasting industry and In an article way back in July 2004
after having influenced the lives of edition of Business week, the magazine
millions of people in US and round the ran front cover story about “The
globe, NBC, is on the verge of a startling Vanishing Mass Market”51. This itself
move. gave clear of things to come in future,
that is, the decline in traditional media
ad spend while rise of Online media.

As, NBC, prepares for a takeover by a
Cable operator, Comcast, the move
illustrates broadcast television's decline
writes David Bauder in Business
Week49". David writes that “Broadcast What Business week reported in 2004
people, the folks who remember when about decline of the mass media has now
television was ABC, CBS, NBC and further glorified this year by the fact that
little else, used to look down upon mass media advertising revenue declined
cable”.
“This is highly symbolic," said Tim
Brooks, who had worked at NBC for 20
years and now writes books on television
history in the article. David writes that a
Comcast takeover is largely symbolic
now, though practical reality ultimately
may overshadow that as NBC and other
broadcasters face declining audiences50.

49
Broadcast pioneer NBC prepares for cable
takeoverhttp://www.businessweek.com/ap/financ ialnews/D9BVPUKO0.htm
51
ialnews/D9BVPUKO0.htm The Vanishing Mass Market
50
Broadcast pioneer NBC prepares for cable http://www.businessweek.com/magazine/content
takeoverhttp://www.businessweek.com/ap/financ /04_28/b3891001_mz001.htm

18

as per Morgan Stanley report. workers will lose their jobs”52. Starbucks
was reportedly losing edge and was
facing increased competition from
McDonald’s and Dunkin’ Donuts. The
company decided to retrain employees
and self innovate. Starbucks took steps
to engage its customer and discuss
suggestions to improve the coffee store.
The same year, 2008, Starbucks
launched a new website to engage its
customer community online to get, share
and discuss suggestions from the
customers to improve Starbucks. Called
the My Starbucks Idea, it has already
generated 70,000 ideas by its first
birthday in March 200953.

“Your Ideas. Your Starbucks.

A web blogger writes that “In years to
come, broadcasting won't be broad and it
won't be casting. The dominance of one
way, passive media consumption is
over”.

It is said no revolution is bloodless. If
traditional media, TV, Newspapers,
radio are making big losses, players like
Nintendo Wii, Microsoft X Box,
Amazon-on-demand, TiVo are making
money out of the market lost by
traditional media players. But, why is
there a decline in age old Broadcasting
model of media? What would make your Starbucks
experience perfect? We know you've got
The answer is can be found searching on ideas - big ideas, little ideas, maybe even
Social media sites and searching for totally revolutionary ideas - and we want
Corporate America presence in Social
media channels.
52
http://seattletimes.nwsource.com/html/businesst
Starbucks Corporation in 2008, echnology/2008028854_starbucks02.html
announced “It's closing 600
53
underperforming stores in the United http://www.socialmedia.org/blog/my-
starbucks-idea-generates-70000-ideas-in-its-first-
States. As many as 12,000 Starbucks
year/
54
http://mystarbucksidea.force.com/apex/ideaList
?lsi=0

19

to hear them all. Together, we will shape
the future of Starbucks”55.

Based on customer feedback, Starbucks
deployed free WiFi and started frequent
buyers bonus beverage program amongst
others ideas.
However, it is not Starbucks alone that
has taken the Social media route to build
community, get customer engagement
and participation in improving
company’s performance.

And, it is not just Starbucks that has
embraced social media as channel for
building its brand, connecting with
consumers and making communities.
Competitors food chains like Subway,
McDonalds have quickly jumped in the
social media bandwagon.

Even big time players like the beverage
maker, Pepsi, Coke have joined this new
medium. Given that young audience is
likely to be more social media savvy,
Pepsi, Coke, car makers like Fod,
Toyota, have all jumped in to encash the
55
http://mystarbucksidea.force.com/apex/ideaList virtues of social media in their attempt to
?lsi=0
56
http://twitter.com/Starbucks
catch the attention of their customers.

20

These development show that social
media for business has matured and has
gone main stream for the business and
enterprise.

Social media for improving enterprise
productivity.

21

Starbucks Corporation in 2008,
announced “It's closing 600
underperforming stores in the United
States. As many as 12,000 Starbucks
workers will lose their jobs”57. Starbucks
was reportedly losing edge and was
facing increased competition from
McDonald’s and Dunkin’ Donuts. The
company decided to retrain employees
and self innovate. Starbucks took steps
to engage its customer and discuss
suggestions to improve the coffee store.
The same year, 2008, Starbucks
launched a new website to engage its
customer community online to get, share
and discuss suggestions from the
customers to improve Starbucks. Called
the My Starbucks Idea, it has already
generated 70,000 ideas by its first
birthday in March 200958.

“Your Ideas. Your Starbucks.

What would make your Starbucks
experience perfect? We know you've got
ideas - big ideas, little ideas, maybe even
totally revolutionary ideas - and we want
to hear them all. Together, we will shape
the future of Starbucks”.

Based on customer feedback, Starbucks
deployed free WiFi and started frequent
buyers bonus beverage program amongst
others ideas.

57
http://seattletimes.nwsource.com/html/businesst
echnology/2008028854_starbucks02.html
58
http://www.socialmedia.org/blog/my-
starbucks-idea-generates-70000-ideas-in-its-first-
year/

22

Education: From Lecture in Buildings to collaboration on Podcast, E-reader.

“College May Become Unaffordable for The gravity of the problem can be gauzed
Most in U.S.”, according to New York from the fact that US is one the highest
Times report published in December 200859. spends round the world on education and
innovation.

According to the biennial report from the
National Center for Public Policy and
Higher Education, “the rising cost of college Hence, it is not just the Healthcare that
— even before the recession — threatens to needs reform, close on heels education is
put higher education out of reach for most vying for attention of society.
Americans”. The report found, published
college tuition and fees increased 439 Today, lectures from Harvard, MIT,
percent from 1982 to 2007 while median Duke school, Caltech on youtube.com
family income rose 147 percent. Student
and there is a separate youtube channel
borrowing has more than doubled in the last
decade. “If we go on this way for another dedicated to education.
25 years, we won’t have an affordable Distance is no longer a hindrance in
system of higher education”, Patrick M. getting service of education as lectures
Callan, NCPPHE President in NYT article. both video and real time classes can
happen on web. This has resulted in rise
to Distance and online learning.
59
New York Times report
60
http://www.nytimes.com/2008/12/03/education/0 http://www.oecd.org/dataoecd/22/51/39317423
3college.html .pdf

23

4.Education is now not dependent on
brick-and-mortar buildings and can now
be hosted on the web. This will in long
run help in reducing the cost of
education.

5. Abundance of information available
on the web, both students and teachers
can have better informed resources for
pursuing studies. This has made
Education as a service just like Software
as a service.

But, for benefits to occur in long run,
some fundamental changes in education
structure, governance and delivery of
education would need change. Areas like
Library resources management need to
be improved by making resources
available online and not just in the brick
and mortar libraries but online libraries,
investment in online class rooms.

Books are long gone and instead power
point presentations on Slidesshare,
Authorstream.com, Podcasting are the in
thing. These web tools have made life
easier for both students and teachers.
Advantages of web tools in education at
Corporate offices, College-University
and continued education are the
following:
1. Learning has become collaborative
2. Two way communication and
exchange of ideas between the teacher
and pupil giving room for feedback, an
important criteria for learning.

3.

24

two way exchange of ideas, duplex. This
ill considerable bring don costs of
education.

Books are dated, teachers knowledge is
dated while power point presentations by
people round the world is constantly
changing, when we are awake and also
when we are asleep.

Digital books, youtube lecture on
mobiles.

Google bringing digital books on
Smartphones. Apple introduces
application for digital books on i-phone.
61

Created by author.
62
6. Live google during the class is
slowing becoming are norm rather than
just one isolated case. Education like TV
Broadcasting has come of age where a
teacher broadcasts lecture to student and
students listen. Rather it has become a 62
Reader in Library with e-reader
http://www.computerweekly.com/blogs/inspect-
61
Google images http://images.google.com/ a-gadget/rex_798432e.jpg

25

Mobility, GPS and Location
based services
“ Inside the GPS revolution it's more Hotel, airlines and tourism: However, if
than maps and driving directions: apart from finding destination maps you
location-aware phones and apps now
deliver the hidden information that lets are also interested in booking airlines
users make connections and interact with tickets, hotels, can you get the service
the world in ways they never imagined. while being mobile? Yes, widgets like
The future is here and it's in your Travelocity.com64 , Hotels.com,
pocket63” – writes The Wired magazine’s Kayak.com if you also looking to
Eric Baba in January 09 issue. Lets negotiate the best price then
examine author’s thesis. Priceline.com’s negotiator widget is for
you but Priceline.com65 , would do it for
you on your I-phone or android
smartphone66.

Driving directions: If you have a GPS,
you can say good bye to your Tourist
guide, the bulky and costly maps books However, if you a new resident in a
if you are a tourist wanting to travel locality you can search the nearest
distant places. Mobile applications, restaurants, cinema houses, malls,
popularly know as Widgets, like Google schools, hospitals, not to say the nearest
grocery shop, books store, services like
maps, yahoo maps, Garmin, TomTom carpenter, cleaner for which one had to
could provide you easy depend upon bulky yellow pages
way for traveling to a new destination, directories send by local chambers for
easy routes.
64
Travelocity widget for hotels, travel
http://mobile.travelocity.com/
65
Priceline.com on mobile for hotel search
63
Inside the GPS revolution - http://www.priceline.mobi/mobilesite/hotelSearc
http://www.wired.com/gadgets/wireless/magazin h
66
e/17-02/lp_10coolapps?currentPage=all Hotels.com for mobile
http://best.hotels.com/iphone-mobile

27

commerce to houses in the past. Now, 4 million reviews written and 15 million
one can get all that information on touch visitors a month, Yelp is a growing force
of a button in your moving vehicle in the food-obsessed corners of the
thanks to widget like Poynt.com67 on Web”70. The reason for popularity of
Blackberry and recently the leader in this Yelp lies in the fact that it not only does
field Craigslist came up with Mobile it provide information but also gives
version68. reviews by the customers who have
availed the services and so it adds
authenticity and confidence for the
customer who is about to avail the
service.

Real Estate deals

Shopping
However, if you are in Japan then you
can even buy product and services over
your phone. Application named
ShopSavvy makes it easy for impulse
buyers to find a best deal. Shoppers in
Japan can scar the barcode with the
camera on their smartphone and this
Mobile widget will show how much the
products costs online as well as other
But, it is another widget, Yelp.com that nearby stores. One can even get product
has been news as one of the most in reviews right on Smartphone.
demand application and has been
featured in Time magazine as well as
New York time. Times says Yelp has
outdone popular sites like Yahoo Local
“If it's a restaurant, shop or business, it's
probably been reviewed on Yelp — an
independent site with millions of user-
submitted evaluations. Yelp's got a
gaggle of rivals — most notably Yahoo!
Local 69”. Yelp has been profitable as
local business post their ads on Yelp.
The effect of Yelp could be gauged from
the fact New York Times said “But with
67
Mobile yellow pages - Poynt.com
http://poynt.com/
68
Craigslist mobile widget
http://mobile.craigslist.org/
70
New Times on Mobile widget Yelp
69
Yelp widget review by Time magazine http://www.nytimes.com/2008/11/05/dining/05y
http://www.time.com/time/specials/2007/article/ elp.html?_r=1&scp=1&sq=yelp.com&st=cse
0,28804,1812202_1812206_1812475,00.html

28

In era of smartphone, from gps to
location based services to yellow pages
are available via mobile widgets and are
available on push of a button without
even your presence in that area.

What does this mean for a tourist, a new
resident, a busy officer goes?

Convenience of locating new location
and distant places for sight seeing,
nearest hotels, school, stations.
Last minute alerts about traffic
congestion & alternate routes.
Ease of use
Smartphone making GPS a low cost
utility rather luxury.
Use of augmented reality in future that
can reduce long cues at the museum,
historical places of interest.
Pin-pointed location based advertising as
against high cost and mass hoarding that
could enable growth of location based
services.

29

Merging of three screens, TV, Laptop
and Mobile

Neilsen, the marketing and media
agency, in report Three Screen examples of companies activelt involved
Report reported shows considerable year in developing software for UnUP.
over year growth in terms of time spent
for DVR (up 21.1%) and online video
(up 34.9%) in Q3 2009.

Channels on play on with touch of
71 button on remote.
If broadcasting companies like NBC,
CBS, ABC in US; BBC in UK, Channel
9 in Australia, were the big movers and
shakers of the 1970’s and 1980’s decade
it is the Youtube, Hulu, Facebook,
Qualcomm, which are the drivers of
change in the 2010 era.

What we all knew that the Online video
is growing what took many by surprise A TVersity Media Server and we bring
was the growth of DVR. If we examine you support for Premium Web Content
recent research done in this area, one (including full TV episodes) from names
protocol that has been a game changer likeÂ Hulu, BBC iPlayer, Joost, CBS,
for consumer watching content at home, NBC, The WB, TV.com, ESPN, NFL,
it is the UnUP, the Universal plu and Comedy Central, South Park, Marvel,
play protocol. Players like Roku, The Discovery Channel, National
Tversity, Playon, established players like Geographic Channel,Â and more.72
Amazon-on-demand video, Netflix are
This is the culmination of an almost 5
year effort, to bridge the world of
71
http://blog.nielsen.com/nielsenwire/wp- Internet Video with the TV.
content/uploads/2009/05/nielsen_three_screen.p
ng
72

31

However, it is not just on TV that we
watch videos. Portable devices like I-
phone, I-pods, Sony playstation are
others.

Youtube

Hulu
75

Myspace
Netflix and Tversity76
77
78

79

74
Morgan Stanley Economy + Internet trends
report March 2009
www.morganstanley.com/techresearch
75
report March 2009
76
report March 2009
77
73 Morgan Stanley Economy + Internet trends
report March 2009
78
report March 2009
79
report March 2009
73

32

Mobile payment comes of age pioneered by Paypal and now tussle to retain
customers by retailers like Amazon.com, banks like Bank of America, Chase begins

"Pay for stuff with your mobile80”, ran goods and services like car parking and
tagline for Simpay, a mobile payment vending machines84”.
scheme founded by Orange, Telefónica
Móviles, T-Mobile and Vodafone in However, in 2005, New York Times
2004. reported that the venture had collapsed.
NYT said in report that “the complexity
Then (2004) CEO of the Simpay, Tim of instituting a service bringing together
Jones, said, “We intend to focus initially sometimes bitter rivals plagued Simpay.
on under-ten euro on-line mobile Its collapse highlights the difficulties
payments for digital content. This lower that rivals in any industry have in
value payment space is a huge coming together to promote a service or
opportunity for revenue generation and a standard that could potentially benefit
is yet largely untapped. We believe all sides”85.
Simpay will be a catalyst in bringing The 2005 NYT report stated that
over 1billion of extra industry “Mobile phone companies and
transactions by 200781. Simpay focused merchants have long dreamed of having
on scheme for micropayments that customers use their cellphones to make
would have microcharges. It was to have purchases of anything from
its technical launch by the end of 2004 downloadable songs and ring tones to
and be commercially available in early concert tickets. In Europe, so-called
2005.82 Simpay was meant to provide a mobile commerce remains a niche
single platform to deal with the routing, industry at best, in part because the
clearing and settling of payments made services used to facilitate purchases have
with mobile phones.83 proved to be too complicated for most
consumers86”.
Using Simpay, “Consumers will be
billed and pay for these via their Just one year after the collapse of
mobile operator account. In the future Simpay, March 2006, Pay Pal launched
Simpay expects to offer products its Mobile payment system, Pay Pal
optimised for higher value items like mobile in UK reported MobileEurope87.
flowers and tickets as well as physical

80 84
http://www.cellular.co.za/news_2004/feb/0227 http://www.cellular.co.za/news_2004/feb/0227
04-simpay_mobile_payment_platform_a.htm 04-simpay_mobile_payment_platform_a.htm
81 85
http://www.cellular.co.za/news_2004/feb/0227 http://www.nytimes.com/2005/06/27/technolog
04-simpay_mobile_payment_platform_a.htm y/27iht-simpay.html?_r=1
86
http://www.nytimes.com/2005/06/27/technolog
82
http://www.billingworld.com/articles/standards/ y/27iht-simpay.html?_r=1
Standards-Watch-Simpay-Reaching-an-
87
Untapped.html http://www.mobileeurope.co.uk/news_analysis/
111909/PayPal_to_launch_mobile_payments_ser
83
http://www.nytimes.com/2005/06/27/technolog vice_in_the_UK.html
y/27iht-simpay.html?_r=1

33

According to PayPal, the service will immediately.
enable people to buy goods by sending
money through their mobile phones. It
will also enable PayPal users to send
money to each other via their mobile
phones using the company's person-to-
person payment service.

Using PayPal Mobile's "Text to Buy"
service, consumers will be able to make
instant purchases, such as CDs, DVDs,
shoes and clothes, by sending product
codes via text message. Items will then
be delivered to home addresses already
saved in the buyers' PayPal accounts.

Pay Pal says that the merchants who
have signed up to PayPal's new mobile
service will be able to open new direct
sales channels to buyers, while
consumers will be able to see an
advertisement - in a magazine, or on TV
for example - and purchase products

Then Chief executive of PayPal Europe,
Geoff Iddison, in interview in 2006 said
"The system will kick-start mobile
payments in the UK and globally, and
revolutionise the way people pay, as
well as how companies can track
advertising effectiveness”88. Iddison had
added that "The system is password
protected, so even if an account holder's
phone is lost or stolen, the PayPal
account remains secure. Like all
transactions with PayPal, mobile
payments are safe for all our users and
customers' financial details are not
shared with merchants: they remain
within the PayPal network at all times".

88
http://www.mobileeurope.co.uk/news_analysis/
111909/PayPal_to_launch_mobile_payments_ser
vice_in_the_UK.html

34

With more than 78 million active
accounts in 190 markets and 19
currencies around the world, PayPal
enables global ecommerce89. And, now it
is m-commerce.

Management consultancy firm, Arthur
D. Little, in its 2009 report cited that “In
the last five years, markets with mobile
payment offers have matured with a
variety of players entering the industry
value chain and new services being
launched. The key issues now being
addressed include cross border
interoperability and standardization.
While the prevailing financial crisis
poses challenges to value chain players,
we still believe that m-payment services
will significantly develop over the
coming years with the rise of mobile
internet, the continuous improvement of
mobile handsets and the younger
generation’s preference for mobile Arthur D. Little forecasts global m-
services90”. payment transaction volume to reach
approximately USD 250 billion by 2012,
an increase of 68% p.a
M-payment transaction volume in
developed markets is expected to grow
at 56% p.a., representing 35% of the
total transaction volume in 2012,
compared to emerging markets with a
76% p.a. growth, accounting for 65% of
the total volume in the same year
M-payments are unlikely to substitute
existing payment. Despite the current
hype, Arthur D. Little does not expect to
see a massive Near-Field-
Communication (NFC) adoption in a
majority of developed countries until
2011 at the earliest
In emerging countries, Arthur D. Little
expects m-payments to become the first
widespread cashless payment system.

89
https://www.paypal-media.com/aboutus.cfm
90

35

And, it is not Paypal alone.
https://www.paypal.com/mobile

https://online.citibank.com/US/JRS/pand
s/detail.do?
ID=CitiMobile&Promo_ID=CH34&Pro
spect_ID=901CA46B29B740318E9544
773040393F

36

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39

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