During his keynote appearance Thursday at the Mobile World Congress event in Barcelona, AT&T Mobility president and CEO Ralph de la Vega championed consumer choice, beneficial partnerships and technology integration as the essential components for digital content success, stating "Customers must be able to get content when they want it and how they want it." De la Vega also called Apple's iPhone "a game-changer," noting that since AT&T exclusively launched the device in mid-2007, mobile data consumption has grown dramatically. According to de la Vega, 95 percent of iPhone owners regularly surf the web, even though 30 percent had never done so prior to iPhone ownership. In addition, 51 percent have viewed videos via YouTube, and nine out of 10 rated the device better than their previous handset.
"There isn't a device that's easier to use," de la Vega said. "[The iPhone] proves that price resistance is only as strong as the user experience is weak."
Enhanced devices and improved user experiences are driving AT&T mobile data across the board. De la Vega said that 13 percent of all AT&T customers now own a 3G device, with another 12 percent owning integrated devices--subscribers on 3G devices yield ARPU 20 percent higher than 2G users, with owners of integrated devices generating ARPU that's 120 percent higher. At the same time, AT&T's decision to tie together its various music services under a single, one-touch access point increased mobile music revenues 400 percent in 12 months.
De la Vega repeatedly stressed the importance of AT&T's partnerships with manufacturers and content providers, listing off five principles vital to all of its deals: Companies and customers must benefit, both firms' interests must align, the agreement must play to each party's strengths, the deal must reflect market realities and the value proposition must resonate with consumers. "We need to structure deals in creative ways so everyone benefits," de la Vega said.
Related articles:
AT&T [1]'s MediaFLO launch delayed again?
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AT&T [4], eMusic team for mobile download service
Links:
[1] http://www.fiercemobilecontent.com/story/ts-medioflo-launch-delayed-again/2008-02-08
[2] http://lists.fiercemarkets.com/c.html?rtr=on&s=69l,wg8p,1fbv,abv,69au,3l2v,7uh1
[3] http://lists.fiercemarkets.com/c.html?rtr=on&s=69l,wg8p,1fbv,hiwq,1ke9,3l2v,7uh1
[4] http://lists.fiercemarkets.com/c.html?rtr=on&s=69l,wg8p,1fbv,36y2,hmyn,3l2v,7uh1