Comments on: $52 billion in Mobile Social Network revenue by 2012? http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/ A daily round table on the tech industry with experts and callers from all over the globe. Join us as we pick apart the news and get to the meat of what\'s happening out there. Sun, 07 Sep 2008 14:13:43 +0000 http://wordpress.org/?v=2.6 By: Alec http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-585178 Alec Thu, 14 Feb 2008 06:05:17 +0000 http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-585178 Hi Dean, Thanks for the insight. I would agree with you that the approach of burying the work of the VASPs in the carrier revenue numbers is problematic. The value, of course, is that it tells carriers what the value is to them of working with your business category, but it doesn't help you any. Moreover, how can you really tell if the calls would have been made anyway, in the absence of a social network. A Hi Dean,

Thanks for the insight. I would agree with you that the approach of burying the work of the VASPs in the carrier revenue numbers is problematic. The value, of course, is that it tells carriers what the value is to them of working with your business category, but it doesn’t help you any. Moreover, how can you really tell if the calls would have been made anyway, in the absence of a social network.

A

]]> By: Dean Fresonke http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-582596 Dean Fresonke Tue, 12 Feb 2008 18:58:48 +0000 http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-582596 Alec, We were actually interviewed by Christine Perey for this report regarding our http://jumpinmobile.com mobile social network. She was pretty thorough in rounding up companies but the end result -- $1.5B in 2006 and R3.0B in 2007, are indeed shocking. The actual community builders like us were not generating numbers like that the past two years. However, she apparently looked at the entire value chain and included revenues generated by SMS, MMS, and IP data traffic associated with social networking that went into the carrier's coffers. With that in mind, the numbers still seem high but are much more within the realm of reason. I've always struggled with this approach to value chain analysis in the wireless industry because it buries the work of the VASPs in the carrier revenue numbers. If the analysts are going to do this, they just as well study market segments like the "Who's Picking up the Kids Tonight" market. That generates a lot of SMS, MMS and voice traffic too. Alec,
We were actually interviewed by Christine Perey for this report regarding our http://jumpinmobile.com mobile social network. She was pretty thorough in rounding up companies but the end result — $1.5B in 2006 and R3.0B in 2007, are indeed shocking. The actual community builders like us were not generating numbers like that the past two years. However, she apparently looked at the entire value chain and included revenues generated by SMS, MMS, and IP data traffic associated with social networking that went into the carrier’s coffers. With that in mind, the numbers still seem high but are much more within the realm of reason.

I’ve always struggled with this approach to value chain analysis in the wireless industry because it buries the work of the VASPs in the carrier revenue numbers. If the analysts are going to do this, they just as well study market segments like the “Who’s Picking up the Kids Tonight” market. That generates a lot of SMS, MMS and voice traffic too.

]]> By: $52 Billion From Mobile Social Networks in Next 4 Years - Covering All That's Social All the Web http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-582307 $52 Billion From Mobile Social Networks in Next 4 Years - Covering All That's Social All the Web Tue, 12 Feb 2008 15:35:44 +0000 http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-582307 [...] to Alec Saunders who points out a press release posted on the Cellular-News website. The press release states that mobile social [...] [...] to Alec Saunders who points out a press release posted on the Cellular-News website. The press release states that mobile social [...]

]]> By: Chris http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-582273 Chris Tue, 12 Feb 2008 15:09:55 +0000 http://saunderslog.com/2008/02/12/52-billion-in-mobile-social-network-revenue-by-2012/#comment-582273 Alec, I might take it a step further beyond mobile and say that there could be wide disagreement on what a social network is. Rhetorically speaking, why isn't eBay considered a social network? Is it because they have been around long before the buzzword grew popular or are there fundamental attributes that define it with specificity? Why isn't the global telephone system considered a social network? Might be an interesting topic for your Squawk Box :-) Alec, I might take it a step further beyond mobile and say that there could be wide disagreement on what a social network is. Rhetorically speaking, why isn’t eBay considered a social network? Is it because they have been around long before the buzzword grew popular or are there fundamental attributes that define it with specificity? Why isn’t the global telephone system considered a social network? Might be an interesting topic for your Squawk Box :-)

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