4G rollout critical for success of UK mobile economy says online marketplace, just as mobile operator rolls out London trials
4G rollout critical for success of UK mobile economy says online marketplace, just as mobile operator rolls out London trials
Online marketplace eBay.co.uk on Monday submitted to government its Mobile Manifesto, which sets out what the industry and policymakers need to do to support the UK’s burgeoning mobile powered economy.
Meanwhile, O2 yesterday switched on the first 4G (or LTE – Long Term Evolution) network in the capital, offering a unique glimpse into the future of superfast mobile broadband.
The UK’s digital communications industry – including mobile operations from retailers, network providers and developers – is worth over £50 billion to the UK economy according to a recent report prepared for the Department for Culture, Media and Sport (DCMS), and directly employs 531,000 UK workers.
The Mobile Manifesto includes seven critical areas of focus that will boost the UK’s wider economic recovery through the support of this growing industry. The Manifesto can be viewed at www.ebay-mobilemediacentre.mobi on your mobile phone.
Browsing speeds hold m-commerce back
The launch of the Mobile Manifesto comes as new research, commissioned by eBay, also revealed that consumers are being held back from spending owing to frustrations with the speed at which they can complete everyday functions like browsing and shopping on their smartphones. Half of the 2,000 consumers questioned (45%) were dissatisfied with the speed at which they can download data on their mobile phone.
With the auction for 4G spectrum suffering delays, eBay is calling for Ofcom to proceed as quickly as possible to enable the rollout of next generation broadband in 2013. According to Verdict research, Ofcom should prioritise improvements to mobile internet coverage on transport routes such as railways and roads as over a third of consumers (36%) already shop on their mobiles while travelling – a number which could be boosted to benefit retailers with faster mobile internet and better coverage.
David Dyson, chief executive officer of mobile operator Three UK, said: “Three’s customers make the most of their smartphones, but a fear of high data roaming charges force them to limit their internet use the moment they leave the UK. High wholesale charges mean high roaming prices. We stand with eBay in calling for the European Commission to cap wholesale data charges at 3c or less and lead the world in making the mobile internet accessible wherever consumers want to use it.”
In the development of the Mobile Manifesto, eBay brought together retailers, network operators, industry bodies and consumer groups to discuss the future of mobile, and it is clear that retailers need to be ready to harness the potential of the mobile economy.
Three quarters of mobile users (73%) would spend more through their mobiles if retailers had optimised websites. Furthermore, 68% of consumers still have concerns about giving personal details over a mobile connection – something they think mobile network providers are responsible for addressing (68%), in addition to banks and payment providers (63%) and retailers themselves (57%).
Streamlining customer journey
Rosie Srao, mobile business development manager at Marks and Spencer, said: “Our customers are increasingly using their mobiles to make shopping more convenient and easy while they are on the go and it’s up to us to make sure that we make the customer journey as simple, fast and engaging as possible.”
The Mobile Manifesto also includes recommendations on how to reduce prohibitive data roaming charges. Over half of respondents (53%) have used their mobile internet to browse and find a store location while abroad, 49% have compared product prices and a third (36%) have used mobile internet to buy a product. However, retailers are missing out as two thirds of respondents (63%) say they are put off using the internet more overseas because of the cost of downloading data.
Miriam Lahage, eBay Global fashion vice president, said: “The mobile economy is proving resilient as people increasingly see owning and using a mobile phone as an essential expense, despite cutting back in other areas.
“As smartphone and tablet ownership increases there will be even greater potential rewards for companies investing in mobile, and this is particularly true for retailers. At eBay in the UK we now see around 10% of sales by value transacted on mobile devices, but we need the right infrastructure in the UK to match this demand.
“For retailers, it’s about putting mobile at the heart of your strategy and creating a site that is optimised for every device.”
The development of the Mobile Manifesto follows recent research conducted for eBay by retail experts Verdict that shows mobile shopping could deliver a £4.5bn boost to Britain’s economy by 2016, and a further 13bn by 2021.
