Sprint is the First to Offer Free Mobile MySpace Web

| Dec 17, 2007 | Wireless Services - U.S. | Competitive Intelligence Report

| Analyst: Deepa Karthikeyan

Current Perspective: Positive/Neutral
Vendor Importance: High
Market Impact: High

Event Summary

On December 13th Sprint announced that it will provide a direct link to Mobile MySpace from its portal in 2008, becoming the first carrier to offer the ad funded version of the popular mobile social networking site. MySpace Mobile Web will allow users to post comments, add friends and update profiles from their cell phones. The beta version of Mobile MySpace was launched in September 2007 and has already gained traction with a user base of one million.

Analytical Summary

• Current Perspective: Slightly positive on Sprint’s announcement to link to the free MySpace Mobile Web site when it launches in early 2008. Although Sprint’s users had access to MySpace alerts and premium services in the past, the WAP site provides additional features like the ability to add friends, post comments and update profiles. Sprint’s alliance with Fox Interactive Media makes it the first U.S. wireless carrier to offer the latter’s ad funded services via the Sprint portal, a key differentiator as many mobile users still rely on carrier’s portals to navigate the Web rather than type URLs into a mobile browser. Although this announcement will not push ambivalent customers to subscribe to the carrier’s data packs, it definitely provides Sprint with a competitive edge against rivals AT&T and Verizon Wireless.

• Vendor Importance: High, because Sprint has once again established its trail blazer status by being the first to launch an ad-funded mobile social networking site. Although Sprint provides access to social networking sites like Facebook and a few sites from Anthem’s platform, the absence of Mobile MySpace on its deck was a glaring omission. Via its alliance with MySpace, Sprint can effectively get its service in front of a wider audience without a great deal of upfront investment.

• Market Impact: High on data services market, because the ad funded version of MySpace Mobile marks the official launch of advertising in the mainstream mobile social networking realm. The viral nature of social networking sites is ideal for marketers looking to push their products to certain niches. It also opens up a tentative revenue opportunity for wireless carriers, who can embark on an agreement with advertisers to share the proceeds on products purchased. The performance of initial ventures like the mobile MySpace WAP site will have a strong bearing on future revenue models for wireless carriers.

Recommended Competitor Actions

• After Sprint’s announcement, Verizon Wireless is the only top tier carrier who does not provide access to mobile MySpace. Since MySpace is the social networking of choice for most youth, Verizon Wireless should move quickly to make it available on its deck.

• AT&T and T-Mobile should point that their MySpace application has a better user interface compared to the WAP version of the service and includes the ability to upload files. T-Mobile is also offering its service free till December 31, 2007, after which its Sidekick users will be charged $1.99 per month.

• Helio should point that its full-featured MySpace application is already free for its All-In plan subscribers, giving them no reason to turn to the basic WAP version.

• Boost and Virgin Mobile should point that their customers have access to eight focused sites via Anthem’s platform, which is a better fit for their young and diverse consumer base. The carriers also offer Facebook, ensuring their customers have access to mainstream social networking sites as well.

• All carriers should point that the ad funded version of Mobile MySpace will eventually engage in targeted advertising using LBS and consumer demographics to promote the right product at the right time and place, leading to potential privacy invasion issues.

• Carriers should move away from forming exclusive deals with social networking sites, because subscribers will increasingly want to correspond with network members who are with other carriers. Wireless carriers should jointly strive to make the mobile space an open playground for user-generated content.

Recommended End User / Customer Actions

• Sprint users with active MySpace accounts should note that they can now access the social networking platform from their phones with a single click, and perform everyday functions like add friends, receive alerts and update their profiles from the convenience of their phones.

• The new Mobile MySpace service is free only for the carrier’s Vision and Power Vision subscribers. Customers who do not have a data plan will be charged $0.03 per kb, which might result in steep data charges if used on a regular basis.

• Users who have not subscribed to the carrier’s Vision/Power Vision services should ensure that they are not taxed for advertising in the form of data charges or messaging fees (if the advertisement is sent via a SMS), when they use the service.

• With the advent of ad funded mobile services, users should practice caution and protect their privacy by reporting unsolicited advertising messages to the wireless service provider.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

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