Mobile e-mail heading for the masses

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Research In Motion's BlackBerry and other services for smart devices, like Palm's Treo, have made accessing e-mail on a mobile device as simple as doing it on a computer. But the phones are expensive, often costing well over $200, even with a service contract. What's more, the service providers require peopleto sign multiyear contracts for data packages.

"Most people don't know if the e-mail services are useful," said Berggi's Ozden, whose service is available on a monthly basis. "If they can try it out without extending their contract or signing up for an additional data service, maybe they will try it."

But that too is changing. Smart phone manufacturers are teaming up with mobile operators to create low-cost, fully functioning smart phones geared toward consumers. For example, RIM has created the BlackBerry Pearl, which is sold through T-Mobile. T-Mobile is also offering the dual-mode, Wi-Fi-to-cellular phone called the Dash. Both of these phones are priced around $200. And Motorola has introduced the Q, which Verizon is now selling for $99 with a rebate. The two-year data plans with voice minutes start as low as $70 a month.

Will data-packaging strategies work?
Even though smart phones are getting cheaper, analysts believe they still appeal to professional users. These "prosumers," as they are called, are people whose professional lives and personal lives have blended together. They use their cell phones not only for staying in touch with friends and family, but also for business. And even though they may not be high enough on the corporate food-chain to expense a BlackBerry or Treo, they want to get their business e-mail on their phones.

"I think RIM would like soccer moms to be using the Pearl," Aldort said. "But the reality is they aren't there yet. Smart phones are still designed and priced for business users who are also consumers."

The majority of cell phone users today view their phones primarily as a communication device. And even though voice is still the killer application for cell phones, customers are increasingly using phones for SMS (short message service) text messaging.

E-mail could be another logical step in the evolution of mobile messaging. Still, analysts warn that consumers are extremely price sensitive, and they are willing to pay only so much every month for all the services they get with their cell phones.

"Carriers really have to show people the value proposition for these services," said Charles Golvin, a principal analyst with Forrester Research. "As e-mail clients get embedded into more phones, I think carriers will have an easier time marketing this value proposition. But they have to keep pricing to about $5 to $10 per month."

Cingular has already taken this route with its integrated e-mail and IM service. The carrier doesn't charge extra for the service, but people must pay for data usage. The company recommends people pay between $9.99 and $19.99 per month for a data package that includes e-mail and IM messaging, along with text messaging and wireless Web surfing.

Yankee Group's Aldort believes this is where Berggi's service could run into problems. Even though the company says its service simplifies e-mail access, people still have to pay their cell phone operator for data usage. And the Berggi service costs an additional $9.99 per month.

"That price is just too high," Aldort said. "Only a third of people with a cell phone are willing to spend any additional money for data services. And those that are spending only want to spend between $10 and $12 a month for everything, including Web browsing, e-mail and ring tones."

[wegetclose]

Unfortunately not everybody has a capable phone or a data plan. An alternative is to use SMS to read and write e-mails. A service that allows you to read your e-mails using standard sms can be found at http://www.wegetclose.com

[Mobile_VAS_Services]

It is almost 4 years since this was originally posted... Do you think it still hold true that mobile operators have not really woken up to the call?

My company markets <a href="http://www.synchronica.com/">mobile VAS solutions</a> in emerging markets, and while the rest of the world was/is still struggling with recession, the telecoms sector in those markets rebounced and is growing, including mobile email services.

Also, how do you think the contraversy about RIM's attitude to lawful interception has affected the overall prestige of mobile email companies?