US handset maker Motorola acquired half the shares in UIQ, the smartphone software unit, from Sony Ericsson. Sony Ericsson had bought UIQ from handset OS maker Symbian last year. UIQ is essentially a graphic interface adding components to the Symbian OS. Symbian in turn is 47.9% owned by Nokia. Under UIQ, native programming can be made in C++ although the software does support the - in the mobile games space - ubiquitous J2ME standard. Motorola's new flagship Z8 (nicknamed "MotoRzr" as in "riser") is running on it already. The battle of the OS giants begins...
It is an interesting move since Moto has been the most active OEM for the use of Linux Mobile: it has released a whole range of phones for the open source OS featuring the penguin. It is also one of the founding fathers of the LiMo Foundation, an initiative it embarked on together with industry heavyweights NTT DoCoMo, Vodafone, Samsung, NEC and Panasonic (and which was recently joined by LG, McAfee, Broadcom, Ericsson and others). Now, I understand that Linux and C++ work together but must admit that my knowledge is more than limited here. It is in any event noteworthy that Motorola goes with a UI based on Symbian rather than straight-forward Linux. Motorola was quick to state that UIQ would only be "one of the actions to support [a] strategy" adding more investment in multimedia product segments.
With hundreds of millions in development cost at stake, it is probably too early to tell but it certainly is a new twist in the quest to uproot Nokia's top position with the Symbian s60 platform. So, what's next?
2007-10-16
Motorola loves UIQ
Oasys out of Chapter 11
Oh, the bliss of creditor protection... US mobile publisher Oasys emerged from Chapter 11 after defaulting on a rather sizable $8m debt earlier this year. They had $2m in assets versus $11.8m in debt. Not good. Now they apparently managed to persuade investors to convert debt into equity and off they go again. It was all - more or less - pre-arranged: their investors Associated Partners and Rock Hill Partners had apparently agreed to swap debt for equity, and agreed some interim funding, which apparently allowed them to continue product development. Sitting tight in the interim, they now managed indeed what they had told, namely to emerge as the Phoenix from the flames. For how long? Heaven knows. They have announced a couple of titles but will find arguably not find it easy to compete against the ever tightening battlefield that is mobile game publishing. They had been quick to assure that they would continue "business as usual" and - in particular - would pay licensors pre- and post-restructuring, which will be crucial if they want to see the light of day.
UNO and Phil Hellmuth poker are good titles. Will they be enough though? Their investors seem to think so: the restructuring plan, which the investors apparently supported, foresaw to turn away from their attempts in the D2C market and want to run as a "normal" ASP and publisher. If they can win the carrier decks, this might just work. However, in the poker category, my dear employer's WPT Texas Hold'Em and Glu's World Series of Poker titles go strong, and Oasys will face an uphill struggle with their title. UNO could be cool though it won't be a home run either. Nonetheless: competition is good though! Go on, guys!
2007-10-15
Motricity acquires Infospace mobile assets
Now, this is a big deal: Motricity puts $135m in cash onto the table of the under-pressure Infospace people to acquire the remains of the Infospace mobile business, including search, storefronts, portals and messaging. The deal was financed by existing investors Carl Icahn and VC Advanced Equities (see reporting from MoCoNews here and here).
The acquisition marks the end of an odyssey into mobile by Inforspace, in which it first acquired and then effectively destroyed some of the brightest stars on the mobile content sky, including game developers Atlas (bought for $6m, sold for $1.5m), Elkware (bought for some $26m and then closed) and IOMO (bought for $15m, then closed in August 2007) as well as ringtone giants Moviso. They lost people, money and ultimately the businesses (e.g. IOMO's founders have recently opened their new shop, Finblade). What a battlefield...
Motricity's, so far predominantly a platform and storefront provider, entrant into the increasingly competitive content publishing space comes at a time where more and more players try to extend their reach on the value chain: one sees platform providers expanding into master content provider relationships, one sees publishers (e.g. Player X) seizing the same position, and all are in a quest to concentrate enough revenue and margin in order to be able to run a profitable business in an environment where still the majority of players are losing money.The challenge for Motricity will be to grow its business outside the US, and this is arguably where the risks are hiddedn. In the US, the company claims to have now grown their distribution footprint to 11 of "top 13" North American carriers (which leave another 10 that are apparently not top), which however seems OK since they add two of the biggies which they couldn't reach before, namely mighty Verizon and AT&T (I still prefer the name Cingular!). The gamble is arguably being mitigated by the presumed synergies through the search, portal and messaging business, and this is where I suspect the balance of risk lies in respect of the financial considerations: because it harnesses Motricity's existing business, the venture into the publishing side of things appears somewhat less risky. All in all, a deal that might just make sense; if the money is adequate? Who could say? What proportion of growth will come through which part of the business? Hmmm. There have been deals that, on the face of it, looked more reckless in the past (remember the seemingly atrocious $145m Jamdat paid for Blue Lava [incl. $8m non-breakup fee to Tetris, LLC])? It paid off for them as then EA bought them for a rather sweet $680m. I would not suggest that the same will happen to Motricity although, looking at the monies invested into them to date, it will just about have to be the exit its investors are looking to.
Fishlabs nets fresh catch
The wonderful people from Fishlabs from the beautiful city of Hamburg announced the close of their first round of funding by VC Neuhaus Partners. Fishlabs, who are specializing in high-end 3D mobile games want to use it to add connectivity to their games. Wonderful coincidence then that "best friends" Exit Games are also an investee of Neuhaus.
Whilst I am not sure if the words of the Neuhaus Partners Managing Partner according to which 3D games are about to become mass-market are true just yet, the addition of connectivity to the beautiful titles of the Fishlabs guys will make for a very powerful proposition. And it might not matter when the mass market sets in because the niche for these high-end gems might just about become large enough for a gifted development house. The perceived value of such games will be higher and, with Exit Games' connectivity suite, this value can be extended even further.This seems to be confirmed by a couple of deals they have done in the past months where they extended distribution to highly evolved regions like Korea as well as with some tier-2 publishers like Player X, which has a larger reach than Fishlabs could have mustered themselves.
In any event, I wish them a good catch!
Disclaimer: yes, I have lived in Hamburg and love the city. Yes, I know the guys from Fishlabs and Exit Games and really like them. No, I do not benefit in any way.
2007-10-11
SendMe off portal: adding buzz (or rather mbuzzy)
The fine folks from SF-based SendMe Mobile have acquired mbuzzy, the latter allegedly being the "first US off-portal community" (it always is in the definition of the terms, I guess). Whatever the marketing spin might be, it is impressive how the small start-up seems to assert itself into the US mobile content market. They had recently announced a deal to distribute Glu Mobile's games and have also closed deals with Sony Pictures and UK game aggregator Telcogames.
mbuzzy has more than half a million mobile users who have downloaded over 15 million pieces of videos, wallpapers and ringtones (they don't call it personalization, which would be uncool as others stop that offering altogether but social media instead) to their mobile phones. It allows sharing of content and consumption both on your mobile and the PC. Pretty much up to scratch then. They will add the viral element to SendMe's content offering, which is effectively a mix of generally available hit games, imagery and music and simple text-based trivia games. They also run SoLow.com, a reverse auction site.
It is good to see that there does seem to be a market outside the carrier decks in the US after all. After the recent announcements (here and here) from Jamba/Jamster and Zingy/Vindigo, one could have started to doubt: Jamba is rumoured to re-focus on Europe (perhaps surprising after their Simpsons coup) whilst Zingy announced a name change and the closing of its personalization business. However, it seems to be the content mix that makes it. If the viral mbuzzy guys leverage that further, even better. Rock on, SendMe!
2007-10-09
Zed's community is precious!
Zed announced that it "will unveil a bunch of hugely ambitious community services at CTIA". The new stuff was apparently previewed at a closed press briefing in Madrid today, to which, alas, I was not privy... Test services will apparently go live in two weeks’ time during CTIA.
Zed had announced it had invested a whopping EUR50 million in a web 2.0/mobile 2.0 strategy to drive subscriptions around community services "such as multiplayer gaming, IM, blogging and so on".
After former owner Sonera had sunk legendary fortunes into developing Zed into some monster brand, most people thought it was more or less doomed. When Spanish group LaNetro took them over though, it re-positioned itself and, with 85% in-house produced own content (no royalties) and sometimes contested subscription bodels grew revenues to a rather impressive $320m in 2006.
Now, in the community area, Zed is said to contribute some of the cash it invested into statiOn, an application for PC and mobile that consolidates all these services in one place for Zed subscribers. Version 2 (what a fitting version number for a web 2.0 app) will apparently be launched at CTIA.Whilst I believe it is entirely on the money to predict that "the mobile market will go the same way as the wired internet in the direction of community services", I am not sure if a - arguably complex-ish - PC-mobile application is the way out; this does not give anyone anything new. In fact, a lot of social networks and communities already today seamlessly evolve into platform-agnostic things: Jaiku uses mobile as a major part, Facebook Mobile sees more users, MySpace and, again, Facebook have announced recent deals in the mobile space, Yospace (acquired by Emap; see also here) is serving 3 and O2 UK, my fine employer Hands-On Mobile has launched Yatta-Video on SFR and soon on other carriers, and everyone else has a "social network" or "community" suite on offer. So will we really need a specific application (downloadable?) that will help connect the two media? Isn't it much rather about seamless -- dare I say it? -- convergence WITHOUT the need for additional (complex) application layers? Isn't this one of the public secrets of web 2.0, its incredible ease of use?
Zed concludes its analysis that "the future is certainly not in solo personalisation products". Well, yes, that might be true but is it really well enough positioned to capture users on their quest into the social networks, too, in particular in the light of the above? I will never ever discount Zed again, so I am truly intrigued by what they will announce and I really hope it is something exciting and innovative. Go on!
Nokia pushes content: deal with Telefonica
Nokia is a lot in the headlines (and this blog) these days, but the good folks from Espoo are very busy, it seems. Today, they announced a deal with Telefonica concerning Nokia's content solution. This includes customizing the multimedia menu on Nokia's devices as well as cooperation on billing and some other technology issues. Whilst Ovi, Nokia's new open doors solution to the world of content, was not expressly mentioned, it very much feels like it, and this will be welcome news to Nokia that is said to be slightly miffed over the carriers' recent devotional tour past Apple and the monstrance iPhone; understandably, since Nokia never got a revenue share from carriers in spite of having carried a lot of the weight in developing device capabilities.
This would then be fantastic news for Nokia: finally a mobile network operator that does not throw the NCD off the Nokia devices. Telefonica said, it wants to ensure that customers have access to the best in Internet services. The goal is to drive a "dramatic" increase in user uptake of these new services over the coming years.The press release mainly focuses on ease of use, easy access, etc, and this is indeed an area of concern for many carriers hindering a larger uptake of mobile content. Nokia natually intends to make sure that any multimedia experience will be best on its own phones rather than competitors' and this, coupled with its respectively designed Ovi service shall further solidify the Finnish giant's lead on the handset market. Carriers on the other hand have continuously struggled to deliver content to consumers in an enticing and exciting way. It became all too often painfully clear that content was not the stuff carriers knew well...
Besides the pretty obvious goals of both parties, it is a noteworthy deal as it may be one step in a shift of the "home of content" from operators/carriers to third parties: D2C has often struggled. On-device-portals were largely marred by carrier reluctance to support them (and often requests to wipe them off the devices), etc. With Nokia moving in, this might change: if this cooperation would indeed result in superior content experience (including the resulting increase in revenue for all parties concerned), this might trigger follow-on deals on both sides: the large OEM will be watching as will be other carrier groups.
Watch this space...
Emotional attachment to mobile content...
Yay, another study is out! This time, we are being told that users have "strong attachment to the content on their devices, which includes address books, ringtones, text, pictures, music, games, and other applications". Ah, it includes the address book and pictures - presumably those primarily taken themselves with the phone's camera. Astonishingly, users reported that losing their phone is far more painful than [...] breaking up with a boyfriend or girlfriend. Hello? Did they only ask specialists in speed-dating? Over half said that losing their phone would cause their social life to suffer. Well, yes, your evenings can be pretty lonely if you don't have any number of any friend anymore...
66% of the users re-enter new addresses manually into new devices. Have they never heard of the software suites delivered with every phone these days that make this a piece of cake?
There is of course some truth in this, such as the grown significance of mobile phones and mobile-created/stored content, and, yes, because people tend not to use the tools readily available, it can be a pain in the neck when you need to swap the beauties. However, much of the findings appear to be slightly distorted by the above mentioned contacts and pictures. 70% of the users find it extremely or very important to back their contacts up. Doh! Why don't they? This already goes down to 30% for photos - and these are arguably as personal. No word on ringtones and games. Whilst I can see people sweating over having lost 450 telephone numbers including the one of the rich auntie, I struggle to see a user weeping because his Tetris highscore is no longer available on his shiny new phone (although then, they just might). This is in spite of the cost of mobile content, which can be significant when you add up content purchases over the lifetime of the device.
Who commissioned the study you're asking? A company called FusionOne. And what does FusionOne do you say? Well, in their own words: "mobile applications that help consumers protect and manage the personal content on their mobile phones, including contacts, calendar, photos, music and messages." There you have it.
Google goes "livestreaming", acquires Jaiku
Now, this is not strictly mobile BUT then it is considering that the target of which I report here today is heavily using mobile as a tool to feed its community, namely SMS (plus web and IM). It morphs online and offline worlds (nicknamed "bothline"; see here), and mobile is a huge component of this.
Anyway, Google, it was announced, has acquired the good folks from Jaiku. For those not that familiar with the radically new web 2.0 applications: Jaiku is a Twitter competitor where you basically "speed-blog" or "live-stream". Jaiku adds proximity settings: users in the same area can/will be able to get in touch with each other and interact.
At PICNIC'07, I recently had the pleasure of listening to Jaiku's co-founder, Jyri Engestrom (plus the good guys from Twitter, Plazes, Dopplr and Hyves), talking about the relevance of applications such as Jaiku. There is a video of the session available here.
It is (still) all about relevance and context. Jyri observed that context evolves around objects (such as office, Manchester United, kite-surfing, babies, red Bordeaux, and, yes, location...). The object defines the (social) context: you might be interested in the capability of webservers in your professional environment and discuss this wholeheartedly with someone else with who you would not have a single point of mutual interest outside of work. Change the object, change the context. Jyri (in his rather interesting blog) calls this object-centered sociality (yes, he is a sociologist).
Jaiku supposedly helps making focus on any object easier as it provides quick and universally accessible tools to see the activity streams of your contacts. The mobile version does this by getting those streams directly into your phone's contacts. Cool stuff.However, why would Google buy them (apart from it being cool and Google being cash-rich)? Relevance and context, again. These are the core pieces around which Google's core business evolves: put ads in a relevant context and you improve click-through. Jyri characterized this by drawing the history of content discovery from catalogue (Yahoo!) via pagerank (Google) to what he termed "facerank", combining the power of the search algorithms from Google with the power of the social network from Facebook. The latter is e.g. a search result that would take the social context of the, say, search string (the object). Friends, people close to you, colleagues, other fans of your club, etc are more likely to have come across something that is relevant to you than someone who has no touch-point with you whatsoever. You don't have to know them personally: connoisseurs of Bordeaux wines might only have "met" in the virtual world. Still, since the context evolved around a common object (Bordeaux wine), it is more likely that you will hit a relevant spot through them. The higher the socially-enhanced rank of a search result, the more relevant it is likely to be... Compelling and rather inspiring!
So this is what Google may have in mind: bring the context to the people -- again! Well done, guys!
2007-10-02
Nokia maps it out, buys Navteq
Nice thing if you can get it: for a modest $8.1 bn ($7.7 bn if you discount the cash the company has in its coffers), Nokia acquired the provider of digital maps, Navteq. Even though this marks Nokia's largest acquisition ever, it is a hardly surprising move given the recent activities of the company to flex its muscles in the content space. Its Nokia Maps application cried out for something like that (it ran on Navteq-supplied maps anyhow). To combine GPS-equipped phones with the people who power loads of todays digital maps seems smart, in particular when one fairly apparent new competitor in Nokia's courtyard runs a fairly successful digital mapping solution itself, namely Google: If the proprietor of Google Maps enters the handset market with the already somewhat fabled GPhone (another article here), Nokia is arming itself to withhold and defend its still impressive market share of c 1/3 of the global market for mobile handsets, errh, multimedia devices. Last year's acquisition of Gate5 seems to not have been enough for that. No other big OEM has come out with GPS-enabled devices with force yet, so Nokia's move would also cement its positions amongst its current peers.
So what will we see? Easy, huh? After turning mobile phones in multimedia computers and slashing away on the digital camera and music player market along the way, navigation systems (or "sat nav" as your ubiquitous salesman affectionately calls it) will apparently be the next victim: who needs them if one has a GPS-equipped Nokia N95 (which, yes, also comes with a digital camera powered by a prestigious Carl Zeiss lense and has 8GB space to accommodate your music and videos).
This is the near-sighted and easy bit and I am all for it: if I can have the quality of specialist devices merged into one, then that is my device of choice even though the challenge is that you then have to beat every leader in the segment. But the history of camera and music phones shows that there is a niche that is rather a gaping cleft, in particular when also cleverly branded, and one that is apparently growing. So why not for sat nav, too?The magic word however is context-awareness. It can probably be called the holy grail of service and product discovery and the provision of relevant offers: if I am being offered something in a context that makes the offer relevant, I am much more likely to be lured into using/buying it. This is exactly how Google's famed AdSense works (and advertising is an area Nokia recently focussed on, too, i.e. with the acquisition of Enpocket).
The principle of context increasing relevance naturally applies to everything: if I am hungry, I am more likely to visit a restaurant. If I am at an airport, I am more likely to be interested in flight times, or travel offers, etc, etc. So combining a device that adds an important context parameter, namely location with a platform like Nokia's Ovi that adds an array of different services (games, music, maps, etc) looks like a model that should increase the likelihood of a purchase - because it can offer the user a more relevant offering in the context in which he uses the device. Nokia seems to be finding it easier to get its content-loaded multimedia devices past the carriers' doors, too, that is if Graeme Ferguson, ex-Vodafone Content Meister, is to be believed...
However, I will continue to call it a mobile phone...
2007-09-18
O2 gets iPhone in UK - good or bad?
"US customer satisfaction is off the charts". These were the words of Steve Jobs on the iPhone, adding he was keen to bring this to UK consumers as well. Now, he would say that, wouldn't he? The lucky (!?) operator to grab it is O2 UK. Why? "We got to pick the carrier that felt most like home, and that's O2", says Mr Jobs.
From 9 November 2007 onwards, the iPhone will be available at a cost of 269 pounds which, converted to c. $540, is substantially more than the comparable price in the US (but then, the UK price includes 17.5% VAT, whilst the US price apparently did not include sales tax). From 35 pounds per month (but tied into an 18-month contract), you get an all-you-can-eat data service that also gives you free access to 7,500 Wi-Fi "the Cloud" hotspots in the UK. This is small consolation for the fact that - rather disappointingly - Apple does not offer a 3G version of the iPhone for the European release but is still running on EDGE; O2 is reported to have been working on upgrading its EDGE network in the UK, which is another addition of cost to what already seems to being a costly deal (since you wouldn't normally have to add this to a 3G-capable network). Also, it looks as if it was not unlimited after all: O2 said that "1,400 internet pages per day would break the deal as part of fair usage agreement." Over Wi-Fi, too? Why?
The remarkable spin abilities of Mr Jobs were again on show when he explained the reason for not adding 3G Here's what he said: "The chipsets work well apart from power. They're real power hogs. Most phones now have battery lives of 2-3 hours and that's due to these very power-hungry 3G chipsets. Our phone has 8 hours of talktime life. That's really important when you start to use the internet and want to use the phone to listen to music. We've got to see the battery lives for 3G get back up into the 5+ hour range. Hopefully we'll see that late next year. Rather than cut the battery life, we've included Wi-Fi and sandwiched 3G between Edge and a more efficient Wi-Fi." So in effect it is better to have 8 hours of battery life because your browsing takes longer than on 3G? Hmmmm...
The one thing everyone is really curious about is whether those recent speculation that O2 offered a whopping 40% revenue share on airtime (AT&T offered 10% USA). Sadly though, nothing has been confirmed to that end although the 10% seem more likely (and it is in itself a continuation of the small revolution Apple triggered with that deal in the US).
And, yes, I want one...
2007-09-17
Nokia pockets Enpocket
Nokia has agreed to buy ad-platform provider Enpocket for an undisclosed sum. The deal is expected to close later this year. This, coupled with Nokia's recent announcements concerning Ovi, shows the Finnish giant's push into other parts of the mobile content value chain.
Nokia's CTO Tero Ojanperä highlighted just that: “Nokia has already announced its intention to be a leading company in consumer Internet services and we believe that mobile advertising will be an important element in monetizing those services for our customers and partners. [...] This acquisition is a [...] move to bring the reach and depth of Nokia to organize the market across the world, and make it easier for an ecosystem to develop.”
Nothing much to add, I guess. It'll be interesting if they will manage to leverage Nokia's might to extend the reach of Enpocket or if the latter will simply be absorbed by the sheer size of the former...
2007-09-12
Mobile Mesh Networks: now we're talking...
Swedish firm TerraNet is trialling a mobile mesh network, we read. In a mesh network, each handset works like a little base station, too. It is a peer-to-peer technology without the need for a base station and, hence without a network operator or carrier. TerraNet's devices currently have 1km range, i.e. unless there is another device within a range of 1km, it will not work.
However, should this technology become robust and sufficiently scaled, the new Vodafones and Verizons would probably be Ericsson and Nokia Siemens Networks, i.e. the big network vendors. Incidentally, Ericsson is said to have invested $3m in TerraNet. At present, a maximum of 7 hops can be done, and this would be limiting the distance that can be covered. However, the company apparently also offers a network node via a USB dongle and this could then connect to a VoIP system to bridge long-distance and go into another mesh network closer to the recipient.
Would this technology be available on a larger scale (and perhaps ultimately without the constraints of so many hops), this would then result in lower cost for users because there would be one less mouth to be fed in the value chain, and it so happens that this is the hungriest mouth at present. Terranet is said to be recognizing that the telcos won't be delighted about this (multi-media evangelists like Nokia's Anssi Vanjoki will however be uber-excited as it will boost multimedia offerings and the opportunities over there). Oh, dreaming of the future...At present, the offering is geared to scarcely populated areas (the company runs trials in Tanzania and Ecuador), and the above-described problems might not be an issue there. In the contrary, it could be that operators would embrace the technology to expand coverage. The company also targets urban areas where people make lots of local calls, which would then be virtually free.
In those more urban areas, there may be problems with having enough available frequencies, and the struggle with the regulators in the space might indeed slow the deployment down significantly. This would probably be made even harder due to the political concerns of many countries when it comes to weakening some of their economic powerhouses (because this is what carriers also are).
Other commentators are also concerned with battery life but also note that, if the phones are replacing landlines, they can be left plugged into a power source (which would be defeating the purpose of the notion of being mobile though, I guess). Surely this would be solvable though.
Very interesting indeed, I think!
Sony Ericsson to leverage PSP and Bravia brands?
According to the FT, Sony Ericsson ponders the release of PSP and Bravia (its TV moniker) branded high-end mobile phones, quoting SE's president, Miles Flint. The Bravia-phone is - I was surprised to learn - already a reality, namely as a mobile TV phone with DoCoMo in Japan. Regarding a PSP phone, Flint was cautious, saying that the technology was still some way from being perfected. “We need to make sure that it is a credible phone, and be sure we are justified in putting that identity on it,” he was quoted.
This approach would continue SE's strategy to leverage Sony consumer electronics brands in its phone business, which it has done with the ubiquitous Walkman (now turned video player) and its digital camera brand, Cybershot. This strategy has apparently helped to double its margins - in addition to moving up one spot from #5 to #4 in the leading manufacturers' list.
It seems eminently sensible to try and build on Sony's considerable fame in consumer electronics, in particular as Nokia (most recently with its high-powered and feature-packed N95) and new entrant Apple seem to be pushing the edge of the envelope, and LG adding on the design front (the Prada phone and the LG Shine spring to mind). SE's approach of weaving the trust it enjoys from consumers for its electronic devices into the mobile phone branding may well be suitable to counter this race. However, as was also noted, Mr Flint did not forget to point out the most important thing: “We need to make sure that it is a credible phone, and be sure we are justified in putting that identity on it." There you go!
The statements probably come on the back of reports during the last weeks (e.g. here and here) that SE was to release a games phone with a games-oriented user interface and styling, and comprising - geek excitement levels rising through the roof - things like motion-sensitivity, which will pave the way for Wii-like gameplay on a handset (be aware of flying handsets on your commute then).
2007-09-11
Mobile Coupons gaining traction?
Mobile coupons have long been a story lots of people have tried to get their heads around (the oldest blog entry I found dates back to 2003). There is a large number of players working on and with this and there have been the occasional successes: Austrian firm 3United (acquired by VeriSign) sold mobile tickets for a Britney Spears concert in Vienna as early as 2005 and 10% of all tickets sold were sold via mobile (they upsold additional content to 85% of those users!; see here). Scottish company Mobiqa is rolling out a mobile ticketing solution for MLB through tickets.com (see their showcases here). There are countless more applications in the area (apologies for not mentioning everyone...)
Cellfire now reports "about" a million people who have signed up for their service in the US. The WSJ ran an article about this (read it here; note: this might go to behind their subscription wall soon...). Redemption rates are reported to be good: they say they've been seeing them at 15%, which is a whopping 3x that recorded for old-fashioned paper vouchers.
Besides the usual critical mass and all I suppose it comes down to mainly two points then: more information about the line one must not cross in respect of bombarding consumers with advertising and retail brands picking up on the mobile screen as an advertising and indeed customer retention tool in earnest (so far, most of what we are seeing are trials or fashion-driven PR affairs). Given that there are more mobile phones in the world than toothbrushes, this should be a no-brainer! And with customization and segmentation of the customer base increasing by user, a very targeted approach should be possible. This is something Cellfire clearly realizes: they do not share phone numbers... Well done, them.