The UI as a service differentiator

Mobile operators are always trying to find ways to maintain user loyalty and increase consumption of online minutes.  Up until now there has been little to differentiate operators in terms of available services and tariffs.  An advantage gained by one operator with an innovative service is quickly mimicked with operators playing leapfrog over each other.

Operators are now using terminals with catchy user interfaces to provide a differentiator for their services.  In this context, the Apple iPhone still continues to attract considerable interest from users.  This is good news for operators, as not only does it stimulate interest in their services (and in the case of the iPhone usually lock the user to one service provider) but users of the iPhone but also generate more network minutes, leading to greater revenues.  Introducing exclusive phones can also be a subscriber generator.  For example, O2 in the UK remarks on its website that 60% of subscribers to its iPhone-based service are from other networks.

Quantifying the benefits 

Clearly, there is something to be said for an innovative mobile phonewith a good user interface.  Intuitively, we know this to be a good thing but how can we quantify the benefits to the operator?

There is currently a lot of hearsay evidence along with qualitative statements, as to how introducing mobile phones with good user interfaces increase service revenues.  However, here we are looking for an increase over and above what they would have been had such innovative telephone not been introduced.  If you follow what I mean…

This is also difficult to quantify if you look at the financials. The effects of the UI can easily be lost in the consolidated accounts, where sometimes performance figures are  merged and mask the real state of affairs.  Operators may deliberately or inadvertently cover over  success or failure or talk up mediocre new product introduction with marketing hype.

Price and the market

Price also has an effect, although maybe not too much for the early adopter market.  Who do you know that has an Apple iPhone?  I bet we all know someone.  Invariably, this tends to be someone  that likes new gizmos that come onto the market.  Nothing wrong with that, we all need someone to pay high prices to make stuff affordable the rest of us later on.  But how does this translate to the majority market?

The majority market always lags the early adopter market.  Indeed, there is usually a sizeable jump required to move from the early adopter market to mainstream.  No doubt, we would all like one of the latest fancy phones but how much are we prepared to pay, both for phones and service?  Trawling through the Internet when the iPhone was launched in the UK I was amused to see a quote from an American, which went along the lines of :

"…I can't see how the UK will pay $500 for an Apple iPhone, they can't even afford gas over there…”

Clearly, there are people in the UK that can afford phones and gas.  Phones are easy, gas is a little harder.

In our new report, "UI Development Strategies to Drive Multi-Media Consumption"  we look at the evolution of the mobile user interface and quantify the effect  of the introduction of new phones on Operator service revenues.  Stop by and check out the UI report – it’s a bargain. 

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