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Wanted: a way to make big profits from WAP

WAP services may have flopped with consumers, but experts say that doesn't mean the death of wireless data services

WAP's failure to take over the world does not mean that wireless data services and m-commerce have been a flop, according to those with an interest in the mobile services industry. Rather, the use of mobile phones for data services has been held back by a lack of convenience and ease of use, argues Nigel Spear, regional manager with Brokat Technologies. "It's not proven that people don't want to buy or bank online," he says.

Ivan Fernandes, managing director of Ducont, a developer of wireless software and content, says it's all about providing valuable services and information to users. "We were never just into the content idea at all," says Fernandes. "Providing content is a starting point, rather than a step. 80% of our effort goes into niche areas."

Along with better handsets and faster connections, the key driver for m-commerce (buying things from your mobile phone), is the mobile wallet, according to Nigel Spear. And guess what? Brokat just so happens to have developed one, called 'PaymentWorks.'

The idea is that all the details a person requires to buy online are kept on the mobile operator's secure server in a 'virtual wallet.' When the person wants to buy online, this virtual wallet revs into action, removing the need for personal details to be entered into the phone every time a transaction is made.

"A consumer wants only one wallet," argues Spear. "[But] it has to be with someone that you trust."

The world's largest mobile services provider, UK-based Vodafone, ahs signed a deal initially worth US $9.3 million to use PaymentWorks. Germany's T-Motion has also signed on and plans to roll the service out to its UK subsidiary, One2One.

Taking the vision of the virtual wallet a step further, it would be very easy for the mobile operator to become the billing mechanism for m-commerce transactions. So when you buy a book online, you are billed not by the company that sold the book but by the operator, which has added the cost of the book to your monthly mobile phone bill. The operator collects the money, forwards it to the merchant and takes a small cut on the transaction.

According to Spear, this idea also appeals to operators because the thing that currently generates their revenues, voice traffic, is dropping in price. This reinforces the need for them to add value through new revenue streams.

Dubai-based Ducont does develop wireless content for operators like Etisalat and STC, but admits that is not a big money business. In revenue terms, Ducont's focus is very much on providing useful applications to corporates and government entities. In just over a year since its creation, Ducont has worked with Dubai Financial Market to distribute live quotes on mobile phones, and it helped National Bank of Fujeirah to implement value added mobile services for account managers and corporate customers.

In the government arena, the company is now working with Dubai Police on a showcase project that will roll out in phases, In phase one, members of the public can access information on police services from their mobile phones.

"Today, you can register with Dubai Police and they will send you information on whether there is a traffic jam in a specific area; if roads are closed because of some function, or perhaps an accident; or if they are coming up with some events," explains Fernandes. "You can even see the faces of the ten most wanted criminals."

Later on, police will be carrying handheld computers that will effectively replace their notepads and pens. Parking tickets will be written on the handhelds and printed out using a mobile printer. Using the handheld's GSM connection and a digital camera, officers could beam pictures of accidents or crimes back to police control centre instantaneously. Officers there who can't make it to the scene could then offer advice to their field colleagues.

Ducont has also looked at Brokat's idea of the operator becoming a billing mechanism. There have been talks with regional operators but the reception has been cool, because of the perceived overhead that the operator would be taking on.

Instead, Ducont is now talking to banks about an idea called Mobile Account. This would involve customers transferring money to a special account set aside for wireless payments. The account is automatically debited when the customer pays for something on their mobile. Not surprisingly, Dubai Police is interested in the idea of letting drivers pay their fines from their mobile and debiting their Mobile Account.

Like many things in the world of high-tech, WAP and the idea of mobile commerce have initially disappointed. Now that the hype has died down, the technology may be starting to deliver valuable services that people in the real world want.

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