After a long gestation, third generation mobile communications (3G) is fast becoming a reality. Upwards of 100 wireless carriers worldwide have launched 3G services and during 2005 many more 3G networks will come on stream. The promise of 3G is that, with advanced WCDMA technology operating in new frequency bands, it will deliver mobile multimedia services and applications which will drive usage and increase Average Revenue Per User (ARPU). With 3G, the mobile phone moves beyond voice and text messaging into a new era of rich content which will offer services and applications such as video messaging, video streaming, infotainment, multimedia messaging, location services, on-line banking and financial services, on-line shopping and Internet browsing. For these new services to succeed, and for carriers to win the new revenues that they will bring, they must not only be attractive to end users, they must also be accessible and easy to use—and therein lies the problem.

Accessing 3G services

At the heart of the service accessibility issue is the User Interface (UI) of the mobile phone. Since the very first mobile phone, the UI has been the twelve button keypad modelled on the 1960s wireline telephone. Ideally suited to making phone calls, the traditional keypad is less suitable for accessing services and applications. Even sending a simple text message requires multiple key presses and the problem becomes acute when users are trying to navigate their way through more complex services and applications. The menu-driven methodology traditionally used in mobile phones means the user must track through multiple screens-with the attendant key presses-in order to access a particular service. Not only is this a lengthy and tedious process, it is also extremely limiting as users are unable to stray away from the menu and are thus prevented from discovering other services which they might find interesting and attractive. This is a serious issue for carriers. Having invested considerable time and effort in creating new services and applications, it is important that they be brought to the attention of their customers. If many of these new services remain undiscovered carriers will lose valuable revenue.

The importance of usability

Simplifying the UI is vital if carriers are to win the new revenues promised by 3G. The seriousness of the usability issue was highlighted by a survey carried out by Wacom Components in November 2004. According to the survey, 85% of consumers admitted to being ‘too dumb’ to access or use mobile services, mainly because of increased device complexity. Nearly three quarters of those questioned felt that handsets had become too difficult to navigate around.

The research revealed that although 78% of consumers now own handsets through which they can access data centric mobile services such as games, ring tones and information services, only a third of consumers are using them. 76% of respondents were not using them as they were too complex to access and operate, with only 10% citing cost factors for lack of use and only 6% lack of interest in the type of mobile services that are currently available.

If handset manufacturers were to simplify mobile phone usability, 55% of consumers felt that they would be encouraged to use more mobile services and nearly a third would increase their usage with further reductions in pricing and special offers.

Although the design and form factor are still important considerations for consumers when selecting handsets, the research also revealed that ease of use is increasing in importance with nearly a quarter of consumers seeing this as the most significant consideration when purchasing a new device. Device functionality and the number of applications a handset supports were singled out by nearly half of the respondents as the biggest influencer.

Even with the limitations of today’s UI, data traffic, albeit largely SMS and MMS, continues to show a rapid growth. According to Forrester Research, total mobile messaging traffic in Europe will grow by 92% over the next five years. Competition between carriers will keep down revenues but nonetheless this market will be worth US$27 billion by the end of 2010. And there are also forecasts of significant growth in other associated areas such as video messaging, which will generate US$1.3 billion in the same timeframe and instant messaging presence services (IMPS) will account for around 8% of total messaging revenues.

Another indicator of the importance of getting the UI right is the growth in interest in data capabilities with 20% of consumers responding that they saw these as important factors when purchasing a new phone. This is an increase of 39% over 2002.

This research underlines the importance of the UI and the urgent need to demystify and simplify the way in which users access services and applications.

Evolving the user interface

There are currently a number of products that have been created to help simplify the mobile phone’s user interface, from shortcut keys to uniquely designed phone keypads. Handset manufacturers and mobile carriers today are investigating new user interface technologies that empower users with simplified access to all the features on a mobile phone. By making phone navigation simpler and more intuitive, carriers and manufacturers can drastically improve the user’s experience, helping them build loyalty and grow ARPU among the subscriber community.

The goal of most cell phone manufacturers has always been to reduce the number of key presses it takes to access popular phone functions. For example, most phones have shortcut keys for text messaging, voicemail and taking pictures. However, the number of shortcut keys is usually limited by the smaller user interface of the phone. Handsets only have so much space for a text message or camera button.

There are new technologies coming to the market now that enable users to find a service or phone feature with only a few key presses and simplified navigation, and this is what we at Zi Corporation are developing. By enabling users to “spell out” the option of their choice—from phone book contacts to Web page bookmarks to location-based services—directly on the phone’s keypad, interacting with the device becomes much more intuitive.

With this “menu-less” search and discovery approach, the standard user interface becomes a window into the phone’s full set of features and services. By simply pressing the “9/WXYZ” key followed by the “2/ABC” key from the phone’s idle screen, the user is presented with all phone book contacts that have that exact sequence of numbers or letters in their name or phone number. In this example, the user may be presented with “Warren’s cell number” because it begins with “WA” in the phone book, or “Sally’s work number” because it includes the number sequence “92.” The user would also likely be presented with a list of previously saved Web page bookmarks such as Yahoo.com or Zagat.com, since both begin with letters that are in the “92” key sequence. The user is able to simply keep spelling the desired function or highlight his/her selected option from the pull down display. The technology can even learn based on a user’s preferences and patterns, bringing more popular selections further up in the pull down menu based on how frequently the user accesses a specific contact or application.

So how does improving usability and access help carriers increase ARPU?

By providing users with simplified access to the phone’s full set of features and services, they will be more likely to use these services on a regular basis. For instance, users wishing to access the local subway schedule could simply enter in the first few letters of the subway services Web site. In addition, this type of menu-less approach to accessing all of the phone’s features helps expose applications that users might not otherwise discover or know how to access, lessoning the need for carriers to promote and direct users to features and services via the menu system.

Reducing the number of key presses and eliminating the tedious task of scrolling through numerous menus will also help improve the user’s experience with the mobile phone, making them more likely to use it (and the carrier’s services) on a more frequent basis. Providing users with an easily accessible index that presents them with a range of options other than simply dialing a number will also help drive subscribers to the phone’s full set of services. For example, data services such as SMS text messaging, URL bookmarks, installed and downloaded applications or carrier customized services, all generate revenue for carriers. Removing confusion and key presses when accessing these services will increase repeat usage rates and ARPU.

Another key to the menu-less search and discovery approach is that it helps improve access to the user's information (e.g. phone book contacts). As a result, users can more quickly locate their own content. For instance, when a phone book contact is selected, the technology immediately presents the subscriber with several options for contacting this person: a) call this contact, b) send a text message to this contact, and c) send a picture message to this contact. Since text and picture messages are revenue generating services, this search and discovery approach for a phone’s contacts will help increase the usage rates of these carrier services.

Summary

The UI is the critical element in mobile communications today. As we have discussed earlier in this article, handset design has barely changed and users are being asked to navigate relatively complicated menus to access the services the carriers need to boost ARPU and enable them to start earning revenue against their 3G investment.

Enhancing the UI is a major step along the multi-media highway that will see 3G as the vehicle for changing mobile phones into mobile communicators.

Milos Djokovic is chief operating officer and chief technology officer at Zi Corp.

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