Mobile Phones May Take Over Atms As Payment Terminals

W ITH mobile phones outnumbering Automatic Teller Machines (ATMs) across the world by 2000 to one ratio, GSM Association (GSMA), the global trade body for over 700mobile operators in 218countries and over 200supporting equipment vendors, has said mobile money transfer is likely to take the shine off ATMs and cheques across counters in 2009.
Specifically, the GSMA Mobile Money Transfer (MMT) initiative leverages the benefits of GSM technology to improve access to money transfers for a wider section of the global community.
The MMT initiative is similar to the Pay-Buy-Mobile programme announced on November 18, this year. The Pay-Buy-Mobile is a system that enables users to pass a mobile phone close to a Point of Sale (POS) reader in order to buy goods and services and pay for same.
Besides these, GSMA also came out early in the year with Personal Instant Messaging (PIM), an initiative designed to enable mobile users worldwide to exchange instant messages across networks.
With PIM, instant messaging is no longer restricted to the fixed Internet world. It offers the opportunity to connect a mobile community in excess of two billion across all networks and geographic boundaries.
It is not limited to specific Internet communities and with presence functionality available through IMs users can see in real time the status of their contact list and can get in touch with the right person for the first time.
Open connectivity among over 700 mobile operators is also in place and concretised further in 2008.
This defines SMS-dubbing, Roaming, Global Roaming Quality and online training.
There is the mobile, media and entertainment programme, which facilitates interaction between the mobile, media and entertainment industries. This aids mobile advertising, music, film, gaming and all sorts of multimedia transactions.
Industry analysts said on Monday that there is no doubt that 2008 was the year of the smartphone.
The last 12 months has seen the launch of iconic devices such as the iPhone 3G, Google G1, Blackberry Storm and Nokia N97.
It also saw the emergence of the electronic ecosystems needed to get the most out of such handsets.
But all is not rosy in the smartphone garden. The popularity of these devices has brought to light several problems that look set to become acute in 2009.
"It was a goodish year," said Andrew Bud, chairman of mobile firm Mblox and director of the Mobile Entertainment Forum.
One of the high spots, he said, was the knock-on effect the launch of innovative smartphones had on the mobile market.
Many were using them to get at popular social networking sites such as Facebook, MySpace and Bebo, said Mr. Bud.
"We've also seen the emergence of applications as a whole new content category," he added.
Alongside the launch of the Apple and Google smartphones went shops that gave away and sold applications to run on the high-end handsets.
Nokia's Comes With Music could set trends for 2009
Apple said more than 100 million applications had been downloaded from its App Store between July and September.
For Steven Hartley, senior analyst at Ovum, the popularity of the smartphone was a signal that older technologies were coming of age.
"3G has really started to deliver on its promise," he said. "That's again something that has been talked about for a long time."
The success of 3G has been attributed to the use of a technology known as High Speed Packet Access (HSPA).
Dan Warren, director of technology at the GSM (Global System for Mobile communications) Association, described HSPA as: "the original 3G service on steroids".
Mr. Warren said data rates looked set to get a further boost in 2009 thanks to a follow-up technology known as HSPA+.
He said: "HSPA+ will start to become prevalent in 2009. It takes you up to 42Mbps but the maximum at the moment is 7.2Mbps in the UK."
But despite the good news for the mobile world 2009 is unlikely to see that success continue.
For a start, said mobile analysts CCS Insight, 2009 will see sales of handsets shrink.
"This will be the first time the market has contracted since 2001," said an end of year report from CCS.
The firm said this slowdown could be blamed on the global economic downturn that will hit every part of the mobile industry.
The only place to buck these trends will be markets in developing nations, said the report. In particular, it said, India, sub-Saharan Africa and China still have low penetration rates by the standards of mature economies such as the UK.
Handset sales look set to dip in 2009 following years of growth
But, said Mr. Hartley from Ovum, more customers in some markets will be a mixed blessing.
"As more and more people get a mobile you are going down the value pyramid," he said. "You get a lot of people but every single one is not going to be generating a lot of revenue."
The important thing that mobile operators have to get right in 2009 is increasing the numbers of people paying for data traffic, he said.
But, added Hartley, the problem with pushing people towards using more data on the move is the knock-on effect it has on the infrastructure operators need to support those customers.
The global downturn could mean operators will find it hard to raise the capital needed to cope with significant growth, he said.
For Mr. Bud from Mblox, the growth of mobile broadband highlights another pressing issue for operators - how they price data plans.
Research by Mblox showed a huge discrepancy between the amount people using different operators in different countries will pay when downloading or browsing the web.
In the UK, it found, some folk will pay about �10 to download a two-megabyte music track. By contrast in Germany, on some tariffs, customers will only pay 24 cents (22p) a megabyte.
The confusion that results was holding back the growth of mobile data services, said Bud. Few people were willing to risk downloading, as they were worried about racking up huge charges.
In some cases, he said, their fears were being justified. In the summer of 2008 one unlucky Vodafone customer returned home from a holiday in Portugal to a phone bill in excess of �31,000
He racked up the bill by using his phone to download an episode of Prison Break and several music tracks while on holiday abroad.
"The price consumers see should be the price they pay," said Bud.