News
Issue #2002 - 40 (October 2002)
(Updated Oct. 22, 2002)

ACQUISITIONS, MERGERS & AGREEMENTS

GSMA Board Convenes to Pledge Support for MMS

The GSM Association convened in Istanbul on 16 October 2002 to agree upon a plan to speed the implementation of new services and third generation wireless networks. A newly created CEO-level board from leading companies (Vodafone, Orange, T-Mobile, NTT DoCoMo, China Mobile, Singtel Optus, Cingular Wireless, TIM, Telefonica, Sonera and AT&T Wireless) aims at providing strategic guidance to the currently fragmented global wireless community. Supported by more than 90 per cent of the Association's Members, the GSM Association is set to make sweeping changes to the governance and decision-making processes that will come into effect from January 1, 2003. The goal is to collectively identify a set of commercially prioritized requirements by wireless operators and service providers. 

In the 48th plenary meeting of the GSMA, Multimedia Messaging Services (MMS) was identified as the cornerstone for enabling compelling new consumer services and providing the best possible environment to deliver such services. MMS enables the transmission of hitherto unavailable multimedia content such as images, text, audio and video over global GSM/GPRS networks. The plenary is said to first address the issues of roaming by bringing operators together to sign a commercial agreement to enable GPRS roaming and MMS inter-working thereby offering subscribers the ability to send and receive multimedia messages globally. 

With already 40 MMS services being launched around the world since its first launch in Hong Kong, Hungary, Norway, and Germany earlier this year, MMS is set to be the vanguard of multimedia applications. Chairman of the GSM Association, Jim Pratt, said: "MMS is a key component in the wireless industry regaining accelerated momentum in the marketplace." With MMS, the focus so far has been on removing the barriers to a seamless launch by focusing attention on key areas such as roaming, handset compatibility, user interface, internetworking and interoperability issues, charging principles, and the development of commercial applications. Rebuilding investor and customer confidence in the ability of the GSMA to deliver new consumer services will be business agenda of this board. 

Market research endorses the technology direction with high growth numbers (Forrester shows that MMS will account for 32% of total mobile message revenues, Ovum attributes 30% of messaging revenues to MMS). This is abetted by growth in usage rates of MMS-capable devices to 40% and MMS handset penetration rate of 50%.

For More Information: http://www.gsm.org 

MobileInfo Comments and Advisory: This is a bold effort from GSM Association. As an association, GSMA is taking right initiatives. It must keep the troops enthused even in the current times. Achieving roaming across majority of GSM/GPRS networks will help. Having said that, MMS is not expected to turn the market around soon. It is ultimately consumers and businesses that will decide the rate at which MMS will be adopted. We are not sure if MMS is a compelling application during the next two years. Should the operators give up hope? No, they should continue to march forward but be realistic in their expectations and projections. They should invest in MMS infrastructure for long term gains. 

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.