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Friday, May 11, 2012

Increased mobile use could decrease Facebook's ad revenue

Mark Bridge writes:

With Facebook’s stock market flotation expected to go ahead next week and a company value of between $77 billion and $96 billion being anticipated, the social network is putting the finishing touches to its paperwork.

It’s just filed an amendment to its original registration statement in which it warns that the increasing use of its mobile services may cause a problem. It’s not the technical infrastructure but the fact that Facebook’s mobile offering isn’t as well-established as its conventional web-based service. Facebook has previously admitted that it’s not making much money from mobile, which means there’s an obvious problem if people abandon the money-making web service for the mobile service.

Mobile ads have now been introduced - but at the moment they’re largely unproven on Facebook. And that could worry some investors.

“We had 488 million Monthly Active Users who used Facebook mobile products in March 2012. While most of our mobile users also access Facebook through personal computers, we anticipate that the rate of growth in mobile usage will exceed the growth in usage through personal computers for the foreseeable future, in part due to our focus on developing mobile products to encourage mobile usage of Facebook. We have historically not shown ads to users accessing Facebook through mobile apps or our mobile website. In March 2012, we began to include sponsored stories in users’ mobile News Feeds. However, we do not currently directly generate any meaningful revenue from the use of Facebook mobile products, and our ability to do so successfully is unproven. We believe this increased usage of Facebook on mobile devices has contributed to the recent trend of our daily active users increasing more rapidly than the increase in the number of ads delivered. If users increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected.”

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Opinion Articles

Last week at The Fonecast: 15th October 2012

US government grumbles, O2 UK stumbles

Mark Bridge writes:

Can you trust a Chinese company to build a telecoms network?  Apparently not, according to the US House of Representatives. The “Investigative Report on the U.S. National Security Issues Posed by Chinese Telecommunications Companies Huawei and ZTE” wasn’t at all impressed with the two companies, although most of the complaints appeared to be about a lack of cooperation rather than hard evidence. I wonder if any mysterious agents are planning to visit the new Huawei UK HQ before next year’s official opening?

Author: The Fonecast
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Article rating: 5.0

Mobile phones used to track malaria transmission patterns

Jessica Berman of voanews.com writes:

Scientists are studying the use of mobile phones to track patterns of malaria transmission in endemic nations. The research is part of an effort by many countries to control or eliminate the mosquito-borne disease.

Author: The Fonecast
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Article rating: 4.0

Congressional warning on Chinese telecoms could prompt retaliation

William Gallo of voanews.com writes:

Analysts say this week's U.S. congressional report that called two Chinese telecoms a threat to national security is likely to prompt China to retaliate against U.S. businesses.

The House Intelligence Committee report warned U.S. companies against doing business with China's largest phone equipment companies, Huawei and ZTE.

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Kenya to pull plug on counterfeit mobile phones

Gabe Joselow of voanews.com writes:

Mobile phone subscribers in Kenya may wake up Monday morning to find their phones no longer work, as the nation's telecom companies enact a nation-wide switch-off of all counterfeit devices. Retailers and customers have mixed reactions to the plan, which could affect up to three million mobile phones.

Author: The Fonecast
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Last week at The Fonecast: 1st October 2012

A high for RIM, a low for Apple

Mark Bridge writes:

Apple started last week in the glow of a CoolBrands survey that had named it the UK's coolest brand – but it ended the week with its head bowed in embarrassment. Not only did Tim Cook apologise for the quality of the company’s iOS 6 Maps application, he recommended that customers use competing services until it gets better.

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Recent Podcasts

Reviewing our 2015 mobile industry predictions... and looking forward to 2016

Podcast - 15th January 2016

Iain Graham, James Rosewell and Mark Bridge return to review their mobile industry predictions from last year. Which mergers, partnerships and developments did they forecast correctly... and which didn’t work out as planned?

Later in the programme, the team anticipates some of the topics that will be hitting the headlines during 2016.

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Podcast from Mobile World Congress 2015

Podcast - 6th March 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

Author: The Fonecast
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Looking back at February: from security scares to multiple MVNOs

Podcast - 27th February 2015

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

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Interview with Chris Millington of Doro about mobile retailing, wearables and technology for older consumers

Podcast - 24th February 2015

In today's programme Mark Bridge talks to Chris Millington, who's Managing Director for Doro UK and Ireland.

They discuss the state of mobile retailing in the UK, the future of wearable devices and - as you might expect - smartphones for seniors.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

Podcast - 30th January 2015

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

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