Cell phone college class opens in Japan

TOKYO—Japanese already use cell phones to shop, read novels, exchange e-mail, search for restaurants and take video clips. Now, they can take a university course.

Cyber University, the nation’s only university to offer all classes only on the Internet, began offering a class on mobile phones Wednesday on the mysteries of the pyramids.

For classes for personal computers, the lecture downloads play on the monitor as text and images in the middle, and a smaller video of the lecturer shows in the corner, complete with sound.

The cell phone version, which pops up as streaming video on the handset’s tiny screen, plays just the Power Point images.

In a demonstration Wednesday at a Tokyo hotel, an image of the pyramids popped up on the screen and changed to a text image as a professor’s voice played from the handset speakers.

Cyber University, which opened in April with government approval to give bachelor’s degrees, has 1,850 students.

The virtual campus is 71 percent owned by Softbank Corp., a major Japanese mobile carrier, which also has broadband operations and offers online gaming, shopping and electronic stock trading services.

The cell phone lectures may be expanded to other courses but for now will be for the pyramids course, according to Cyber University, which offers about 100 courses, including ancient Chinese culture, online journalism and English literature.

Unlike the other classes, the one on cell phones will be available to the public for free, although viewers must pay phone fees.

The catch is the lectures can only be seen on some Softbank phones. The service may be expanded to other carriers, officials said.

Sakuji Yoshimura, who heads Cyber University and gives the pyramids course, said the university provides educational opportunities for people who find it hard to attend real-life universities, including those with jobs and those who are sick or have disabilities.

“Our duty as educators is to respond to the needs of people who want to learn,” Yoshimura said.

He scoffed at those who question the value of Internet and cell-phone classes, noting attendance is relatively high at 86 percent. Whether students play the lecture downloads to the end can be monitored by the university digitally, officials said.

Although real-time exchange with professors and other students isn’t possible in Net classes, social networking and other cyber-discussions are flourishing, said Hiroshi Kawahara, professor in the Faculty of Information Technology and Business.

Social networks, online games are a match

Jo Ann Hicks doesn’t identify with gamers, but she spends hours online every day playing Kaneva.

The 41-year-old homemaker likes the shopping-and-partying game — where she operates a virtual nightclub and hosts parties — because it helps her interact with people, not provide escape from them as traditional games often do.

Social and gaming networks, once considered polar opposites, are cross-pollenating as online interactions replace prime-time TV and other, more traditional media experiences. Games like Kaneva are attracting players that games like Super Mario Brothers never did.

“I run around and act like a 40-year-old person. I have my little clan we hang with. What people will say is more interesting to me,” Hicks said of her preferred game. “As opposed to Mario, who’s only going to jump.”

Game developers say there’s money for both sides in this convergence.

Social networks that incorporate more features of “massively multi-player online games” could enhance their already-substantial earning power. And gaming sites would benefit from increased membership and broader acceptance.

David Dague, a 34-year-old executive in Chicago who runs a website called tiedtheleader.com, said games have changed fundamentally since the early days of Space Invaders.

“I’ve seen gaming go from a solitary thing to where there really is a cinematic experience going on in front of you that you can share in a social capacity,” said Dague, whose site coordinates matches in Xbox Live games like Halo 3 and hosts forums about gaming.

“Video games have become the ultimate party line,” he said. “The question is, who are you sharing it with?”

Played in virtual worlds with advertising and goods for sale, games like KartRider and Kaneva now go beyond the scope even of early interactive games. They’re less about skill levels and escapism and more about joining friends and strangers in virtual spaces where chatting, comparing fashions, going dancing — and, yes, slaying monsters — are all options.

For their part, networking sites are encompassing more interactive features that consume increasing amounts of users’ time — long considered a defining feature of computer games.

MySpace and Facebook are massively multiplayer games in disguise, says Gabe Zichermann, who is developing “rmbr,” which he says will make a video game out of tagging and sharing digital photos.

“The reason why Facebook is a really compelling MMO is because it’s fun and you get something out of it,” he said.

There are interactive titles like Scrabulous for Facebook, and MySpace is rolling out a games channel early next year.

“They’re going to be able to monetize their users at the same level (as the games do),” Jessica Tams, managing director of the Casual Games Association, said of the social network sites. “That’s a lot of money.”

If each of Facebook’s 33 million and MySpace’s 72 million October users — according to figures from comScore Inc. — paid a dollar each visit for a new outfit for his or her avatar in a game, that would have produced a lot more revenue than the fractions of a penny the sites got for each click on an ad.

Nexon, which has offered free, socially rich video games for years in South Korea, introduced its English-language version of KartRider for use in North America in September.

In October, the year-old North American version of Nexon’s Kaneva had 84,000 members, according to comScore. Once players download the game, they see advertising and can buy all sorts of virtual clothing and upgrades for a few dollars apiece.

It’s a substantially different business model from online fantasy games like World of Warcraft, which tend to require subscriptions, at $15 or so per month, and usually don’t allow users to buy things for real money, online or off.

“Think of World of Warcraft as kind of closing the book on this generation of games,” says Christopher Sherman, executive director of Virtual Worlds Management. “Those folks who are developing the next generation of massively multiplayer games really need to raise the bar anew.”

Venture capital, technology and media firms invested more than $1 billion dollars in 35 virtual worlds companies between October 2006 and this October, according to a study by Austin-based Virtual Worlds Management, a company that organizes conferences to discuss emerging online trends.

Second Life— where users can buy their own plots of land to build stores, castles or anything else they can imagine — is creating a game within a game with CBS, called The Virtual CSI: New York, that melds networking and gaming. Avatars will be able to go to crime scenes and figure out what happened.

The lure of interactive online games is so strong it can cut into users’ sleep and boost the time they spend playing, according to a month-long study by Syracuse University psychology professor Joshua Smyth.

Smyth found that MMORPG players spent on average 14.4 hours a week playing — twice as long as video game players who don’t interact online.

Stephen Prentice, a senior analyst for the Gartner Group in the United Kingdom, believes the time is right for such online social video game services to take off. The big question is who will succeed first.

“The huge opportunity is for a lightweight, three-dimensional environment, a virtual world equivalent of Facebook,” Prentice says. “Trying to predict who that is going to be is difficult. Anything could happen here.”

Facebook Demographics
http://www.facebook.com/press/info.php?statistics

Marketers Enlist Mobile Phones as Utility Vehicles

By Brian Morrissey

NEW YORK Beginning next month, the cold-and-flu wary will have a new weapon in their prevention arsenal: weather alerts sent to their cell phones courtesy of Vicks.

The messages are part of an effort by parent company Procter & Gamble to develop mobile applications, rather than use the cell phone as just another venue for media buys.

Other big-name marketers, like Coca-Cola and AT&T, have launched similar efforts. In some cases that means application development takes priority over mobile media buys, with brands using their vast distribution and marketing channels to promote the utilities.

“Consumers are used to ads on the Internet, on TV and in magazines,” said Carol Kruse, vp of global interactive marketing at Coke. “The mobile phone didn’t start out with ads.”

That’s leading Coke, P&G and others to test the increasingly popular concept of branded utility: tools advertisers can supply to help consumers perform tasks, rather than messages that interrupt. Think Nike+, the running-and-music system that enables runners to track and compare their training progress with others.

“At the end of the day, if they tap into why you own the phone, brands can figure out how they can help you deal with your life,” said John Hadl, CEO of Brand in Hand, a mobile marketing consultancy, which advises P&G on mobile strategy. “What can brands do for us that also ties in to the brand benefit?”

The move to create applications comes as surveys show consumers express wariness that their cell phones will turn into another source of ad overload. A Harris Interactive survey in the spring found various forms of mobile ad messages, from search result placements to banner ads, were rated “unacceptable” by more than 70 percent of respondents. Seeing a video clip from a nearby store was found “acceptable” by only 16 percent.

“Placing ads on mobile sites is just a media placement compared to finding the applications consumers want [in order] to interact with the brand on the go,” said Doug Levy, CEO of imc2, an independent digital agency.

Coke is making few mobile ad buys with providers like Third Screen Media, AdMob and other mobile ad networks. Instead, it is placing a big bet that it can provide utilities to consumers. Its first test case is The Yard, a Sprite-themed mobile social network it launched in June here and in China. It is in the process of rolling out the platform in Europe and other regions.

“The industry is still trying to figure out how to do that in a way that’s acceptable to consumers,” Kruse said. “We’re really focusing on providing fun and engaging experiences for consumers.”

The challenge for such applications is getting them to actually add value consumers can’t get elsewhere, according to Hadl. Just mimicking an existing utility won’t cut it. For makeup brand CoverGirl, for instance, P&G created a “ColorMatch” application that recommends shades based on complexion and clothing and accessories colors. Women would not have their computer with them at the store, making the mobile phone an ideal choice, he said.

In a more recent campaign, AT&T tapped the phone as a handy tracking tool for fans at last month’s Ironman World Championship triathlon in Hawaii. A mobile campaign gave spectators the chance to receive text message alerts when athletes passed one of 11 checkpoints. For a race that takes competitors anywhere from eight to 20 hours to finish, the service was a perfect fit, said Robert Tas, CEO of Active Athlete Media, which developed the program for AT&T. The athlete tracker attracted more than 15,000 sign-ups and 100,000 brand impressions. “It added value,” said Tas. “It wasn’t crap. It really made the experience better.”

The move to provide branded utilities on mobile devices and elsewhere is unlikely to eliminate media budgets. After all, consumers need to know about the tools before they can use them. MediaVest is buying mobile ads through Third Screen Media. Former AT&T agency GSD&M Idea City promoted the Ironman athlete tracker via Active Athlete’s network of endurance athletics sites. Sprite is leaning on the millions of bottles it sells per year (and its Facebook fan page) to raise awareness for The Yard.

Brands need to think of what they’re getting out of applications, said Scott Symonds, executive media director at AKQA, an independent digital agency. Unless an application lines up with a brand promise, it won’t do much good, he warned. AKQA used this litmus test earlier in the fall with a mobile campaign that suggested wine-and-cheese pairings to supermarket shoppers on behalf of Visa Signature. The campaign was designed to appeal to the Signature brand’s target consumer: the well-to-do who enjoy travel, dining and leisure activities. “Ideally we can do some twist or implementation that gives the utility a flavor or voice unique to our client brand,” Symonds said.

Another big challenge for mobile campaigns at this point, according to execs, is how to measure success. Comparing the value placed on interaction rates online to mobile is “apples to oranges,” Hadl said. “They’re both fruit, but one you bite into and the other you peel.” P&G agency MediaVest, part of Publicis Groupe, has hired Dynamic Logic, a campaign effectiveness research firm, to conduct a study of the effectiveness of the Vicks effort in driving purchase intent.

The mobile medium is still maturing and doesn’t provide many rich experiences, said Benjamin Palmer, CEO of The Barbarian Group, an independent digital shop. “There just isn’t too much of a mobile marketing medium right now other than alerts,” he said, something he expects will evolve with the popularity of the iPhone and as other handset makers come out with units that mimic its features.

“Right now mobile is in a utility-focused place,” said Symonds. “If we can provide brand utility and it’s still keeping with what the client’s theme is, we’ll trade a little messaging for utility.”

Mobile Web: So Close Yet So Far

ON the surface, the mobile Web is a happening place. There’s the iPhone in all its glory. More than 30 companies have signed up for the Open Handset Alliance from Google, which aims to bring the wide-open development environment of the Internet to mobile devices. Nokia, which owns nearly 40 percent of the world market for cellphones, is snapping up Web technology companies and has made an eye-popping $8.1 billion bid for Navteq, a digital mapping service. There are also the requisite start-ups chasing the market.

It all looks good, but the wireless communications business smacks of a soap opera, with disaster lurking like your next dropped call.

In 2000, the wireless application protocol was supposed to bring the Internet to the cellphone. Our hero turned out to be a flash in the pan. That was attributed to a lack of high-speed cellular data networks, so a frenzied and costly effort to build third-generation, or 3G, networks ensued. But at a recent conference, 3G was called “a failure” by Caroline Gabriel, an analyst at Rethink Research. She said data would make up only 12 percent of average revenue per user in 2007, far below the expected 50 percent. (The 12 percent figure does not include text messaging, but you don’t need a 3G network to send a text message.)

Similarly, surveys by Yankee Group, a Boston research firm, show that only 13 percent of cellphone users in North America use their phones to surf the Web more than once a month, while 70 percent of computer users view Web sites every day.

“The user experience has been a disaster,” says Tony Davis, managing partner of Brightspark, a Toronto venture capital firm that has invested in two mobile Web companies.

While many phones have some form of Web access, most are hard to use — just finding a place to type in a Web address can be a challenge. And once you find it, most Web content doesn’t look very good on cellphone screens.

Even the iPhone’s browser can disappoint. It has a version of the Apple Safari browser that doesn’t support Flash, a programming language widely used on Web sites, so users are limited in what they can see on the Web. And, you pay a lot to experience the pain of surfing the mobile Web. Lewis Ward, an analyst at the International Data Corporation, compares the mobile Web today to AOL before it went with flat-rate pricing in the early 1990s. Most people surf on a pay-per-kilobyte model, which encourages them to surf as fast as they can, he says.

The carriers, however, seem to be having a change of heart about the mobile Web. AT&T has allowed Apple unusual control over the network in the iPhone, and Sprint and T-Mobile have signed on to the Android development platform of the Open Handset Alliance.

Industry watchers think that having started, the mobile Web will inexorably open over the next five years, solving many current problems.

For instance, there’s the challenge of finding things on the Web from a mobile phone. John SanGiovanni, founder and vice president for products and services at Zumobi (formerly ZenZui), which was spun out of Microsoft Research, says his company hopes to make it easier for phone users to find phone-ready versions of sites they want. On Dec. 14, it plans to introduce the beta, or test, version of its slick-looking software. It will include colorful “tiles” that phone users can “zoom” into and out of quickly as they move from site to site. (The tiles resemble the iPhone’s widgets, or icons on a desktop computer.)

Zumobi hopes that cellphone users will adopt tiles as their entry point to the Web; the company offers a scrolling interface of 16 such tiles that provide information with mass appeal, but users can set their own preferences. Software developers will be able to build a tile — in fact, Amazon.com has 12 ready to go — and put it on Zumobi’s platform. Tiles can carry ads as well, creating revenue potential for carriers and developers.

THE chairman of Zumobi’s board is Tom Huseby, a longtime entrepreneur and investor in the mobile business and now managing partner at SeaPoint Ventures. Mr. Huseby says the mobile Web is going through a predictable cycle involving the development of handsets, networks and markets. Now it is in the last phase of innovation: figuring out how customers want to see the Web from their phones. He says the answer will be to give people what they want, when they want it.

“You got to have open systems, to allow the vast creativity of people to take place,” he says. Zumobi, Android and other developments, he says, will help create such openness.

Other approaches to solving this problem include Yahoo Go, a mobile Internet product certified to display Web pages correctly on more than 300 handsets, and another from InfoGIN, an Israeli company whose product automatically adapts Web pages to work on cellphones.

The plot has plenty of time to twist yet again. Nathan Eagle an M.I.T. researcher, is working on mobile phone programming in Kenya, where he’s teaching computer science students how to build mobile Web applications that don’t use a browser. Instead, they rely on voice commands and speech-to-text translation to surf the Web

“People talk about the mobile Web, and it’s just assumed that it’ll be a replica
of the desktop experience,” Mr. Eagle said. “But they’re fundamentally different devices.” He says he thinks that the basic Web experience for most of the world’s three billion cellphones will never involve trying to thumb-type Web addresses or squint at e-mail messages. Instead, he says, it will be voice-driven. “People want to use their phone as a phone,” he says.

For now, widespread use of the mobile Web remains both far off and inevitable.