April 2nd, 2008Solving Canada’s mobile data problem
If there was any doubt that Canada is lagging in mobile, the industy’s own revenue statistics should make that clear. Despite much higher prices on Data, actual data ARPU (average revenue per user) has been far lower in Canada in recent years than other markets. In 2006, barely 10% of Canadian carrier ARPU was data. For context, this was a milestone acheived in the UK in 2001. Note also that a significant part of this ‘data’ revenue is SMS messaging.
Alec Saunders had a great post earlier this week on the subject Talking Turkey on Canadian Data.
“The answer, of course, is price elasticity. Because the cost of mobile data is so high, Canadians automatically use their data plans much more conservatively than folks in many other parts of the world. We don’t surf the mobile web, stream video, or upload photos from our mobile phones. “
Devices are also a problem. With the exception of blackberry, Canada has also long been a country of hand-me-down handsets from the rest of the world. Notheless, through whatever factors, not only are Canadians getting screwed, but even the carriers are missing out on opportunity.
How can we improve mobile usage in Canada? How can the carriers themselves make more money on data?
- Better pricing. $35 is not a reasonable price for uploading a single picture to facebook (true story). Make the prices reasonable and the consumers will come in droves.
Predictable pricing. Even more important than how much the pricing is, make it at leat predictable. Narrow-gardens where some apps are arbitrarily free and others run up your bill 30-50$/MB doesn’t cut it. Consumers are terified to click on apps or links on their phone because they have no idea what it will cost them. - Let consumers choose which apps they want to use, which content they want to view. Trust me, the carrier marketing department does not actually know which youTube vids and applications all the kids will want to see next week.
- Be Open! foster, open and nourish access to both on and off-deck content. Open markets are great. Open markets pick the winning content automatically. Winning content drives usage. Usage drives revenues. This is how it works.
- Sell better devices. Device makers, content platforms find other/direct ways to get better phones in the hands of consumers
- Developers. Make better, more usable apps. Focus on a set of devices, create good experiences, share your tips with the community.
- advertising / education to drive usage and awareness of what you can do with new mobile services, new devices.
And probably a few more too. What would you add?
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chris
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lola

