Aussie telco analyst Paul Budde has said that over-hyping in the mobile market is hampering the uptake of new content and applications. “We have had too many mobile data offerings – WAP, GPRS, CDMA – come along and they have all failed to deliver what was promised. User confidence is almost non-existent.” He said that the teenage market is often targeted for mobile content despite the fact they are starved for cash. I’m not sure when he last saw some statistics, but the sales of mobile content are increasing at an astonishing rate. Last quarter also saw a number of mobile content companies move into the black for the first time, although there are probably a lot more still losing money as part of their start-up phase (or bad businesses). Well, Budde often has a go at telcos for charging too much and not investing enough, lowering revenue in the long term, so he might mean that mobile content is not taking off as fast as it should. He’s got a point in that telcos charge too high a percentage of the sale price and mobile content firms spend too much money porting applications to different handsets…
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