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1.html" Content-Location: "http://dailynews.yahoo.com/h/nm/200201
22/tc/telecoms_ericsson_estreet_dc_ 1.html" Study Shows Mobile Phone
Marketing Power
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Tuesday January 22 12:10 PM ET Study Shows Mobile Phone Marketing Power
Study Shows Mobile Phone Marketing Power
By Jan Strupczewski
GOTHENBURG, Sweden (Reuters) - Product marketing via short-messaging (SMS)
directly to mobile phones can substantially boost sales, according to the
findings of a test project done in Sweden presented on Tuesday.
The project, called e-Street, grouped 2,500 volunteers in the northern
Swedish city of Lulea, who agreed to receive SMS messages on special offers
or bargains from some 150 local companies and test services that content
providers need to try out and finetune before offering to the wider public.
Each mobile phone user could decide what messages he or she wanted to
receiveby changing their individual profile via the Internet. ''After the
McDonald's (fast-food restaurant in Lulea) sent SMS messages to customers,
25percent of their target group showed up in the restaurant and bought a
hamburger,'' said Mats Eriksson, chief executive of the Makitalo Research
Center, which carried out the project in cooperation with Swedish telecoms
equipment maker Ericsson (news[30] - web sites[31]), operator Telia and
Internet consultant Frontec.
``The McDonald's in Lulea became the most successful restaurant of that type
in Sweden, breaking its own turnover records,'' Eriksson told reporters at
the Comdex (news[32] - web sites[33]) technology fair in the southern
Swedishcity of Gothenburg.
CINEMA TICKETS VIA INFRARED The Makitalo Center also used e-Street to test
anapplication by the TicketAnywhere company allowing a mobile phone user to
order a cinema ticket via the Internet, receive it as an SMS and then
``show'' it at the cinema entrance by activating the phone's infrared port
ata gate scanning device.
Another service allowed the mobile phone user to buy goods even after a shop
had closed by booking time with a sales clerk and yet another offering was a
queuing service, which allowed the user to reserve a place in a queue and be
alerted when the number of people ahead had shrunk to 10.
In the pipeline are a travel guide, tourist information, hotel room booking
and interactive television, Eriksson said.
Not all businesses made equally good use of the possibilities offered by
e-Street.
``Some do not know how to use it at all. There is a lot of education work
that has to be done among the retailers,'' he said.
The Lulea network will also be used as a testing ground for third generation
(3G) telephony services, which involve multimedia. Such services are crucial
for the new, ultra fast telephony to take off and start paying back the tens
of billions of dollars spent by operators on 3G license fees and equipment.
Eriksson said that because of the lack of 3G handsets, the Makitalo Research
Centre would use Personal Data Assistants (PDAs) and a Wireless Local Area
Network covering the center of Lulea to simulate a 3G network.
One of the 3G services includes video transmissions of sports events.
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