Wireless Application Protocol

The Wireless Application Protocol (WAP) constitutes a set of protocols that collectively enable mobile phones to browse specially constructed documents located on the Internet. WAP features a browser application that is stored on the mobile phone and queries external WAP-compliant documents. The user requires both a mobile phone that supports WAP as well as the WAP service from the wireless carrier. WAP access is typically menu driven and is primarily text based with rudimentary pictures. Wireless carriers typically bill their subscribers for each minute of WAP access used. Providing services that would encourage their subscribers to increase their WAP usage is therefore of interest to them.

WAP was initially released by carriers with much fanfare and high expectations. WAP technology has been somewhat of a disappointment to the industry because the expectations were so high. Consumers expected the experience to more closely resemble that of their Web browsers. The primitive mobile phone browser interface, coupled with slow data rates, has created a negative consumer and industry impression. Nevertheless, WAP technology provides greater interactivity options than SMS and has been used to create a number of wireless services, including games. With the advent of larger screens, more sophisticated browser capabilities (such as XHTML browsers), and faster network access, the WAP experience should continue to improve for consumers.

WAP Technology

Mobile phone browsers interact with Internet-hosted content via the carrier's WAP gateway. The WAP gateway converts between WAP requests and the Hypertext Transfer Protocol (HTTP). The actual content (i.e., your game) is hosted on a standard Internet-accessible Web server.

Unlike SMS, the protocols for publishing WAP content are consistently used across carriers and products. Therefore, the barrier to entry in publishing WAP content is fairly low. Only a properly configured Internet Web server is required along with programming knowledge of WML and/or XHTML.

Unfortunately for independent content providers, some carriers will not allow their subscribers to "travel off the beaten path" in order to access sites that are not sponsored by the carrier. Even if subscribers are allowed to access external WAP sites, it is often a difficult process to enter custom URLs into the mobile phone. Finally, even if the subscriber is able to navigate to a custom WAP site, the independent content provider will typically not be able to automatically retrieve information about the subscriber such as a unique identifier, mobile phone number, and so forth. For subscription-based services, the user might therefore be required to endure a login process each time the service is requested.

Figure 2.6.3 illustrates the WAP browser model. The carrier provides a WAP gateway enabling the mobile phone to request Internet content. If permitted by the carrier, a subscriber can directly access independent content hosted by the developer. An aggregator can facilitate access and billing for developer content.

Figure 2.6.3: WAP connectivity options.

Case Study 2.6.2: Pixo

Pixo provides wireless infrastructure software that allows wireless carriers to manage the complexity of delivering wireless applications to their subscribers. Pixo provides an alliance program at no charge to wireless application developers. This program allows developers to list their applications in a warehouse of applications that are shown to wireless carriers. Pixo considers content to be key and a driving force in the wireless data business model; thus, applications to provide this content are important.

While Pixo provides developers exposure to carriers, it does not resell the applications. Rather, the developer and carrier directly negotiate. Pixo provides a formal working process that includes trials to showcase the technology and engage the carrier in making a decision. Supported technologies include J2ME, SMS, and MMS. Typical developers in this program are small to mid-sized firms. Developers can use this program to obtain a larger partner who can assist with the sales and marketing of their applications. The alliance program can be cost effective for developers, as they can gain market exposure without having to do the footwork of creating initial contacts that can be difficult to obtain in the carrier space.

Pixo recommends that developers consider developing J2ME applications. This technology eases the job of wireless carriers by abstracting the application from the handset architecture and providing a secure application layer.

Special Pixo developer tip: The developer should provide a clearly defined message to the wireless carrier. This message should include their application, the technology used, and how the carrier can use their application to generate revenue. Provide specific examples of how the carrier can bill the application.

Information on the Pixo program can be obtained by contacting Mark Grandcolas, VP of Strategic Alliances, at <[e-mail]>.

WAP Sales Models

Selling WAP content directly to the carrier is an ideal solution for the developer because it addresses a number of business and technical difficulties. The revenue model for the developer is simplest if the carrier offers a flat fee to the developer for use of the WAP application. If the carrier elects to host the application, then the developer only needs to worry about maintenance and support. The carrier can then configure the WAP gateway to pass along any information, such as mobile phone number, that the WAP application might require.

A carrier arrangement is still highly preferable even if the developer hosts the applications and revenue-shares with the carrier on the profits. This is because a convenient consumer billing mechanism is being provided and the carrier can configure the WAP gateway to pass along required subscriber information to the application.

Perhaps the most important benefit of selling directly to the carrier is that the application will likely receive prominent placement on the mobile phone's WAP Start Deck. The application is most likely to be used if it can be seen and easily accessed by the subscriber. Without Start Deck placement, it is very difficult to obtain high traffic volumes on a WAP site.

WAP Aggregators

Unfortunately, carriers do not typically have the resources or inclination to work with individual application developers. Configuring billing services, WAP gateway rules, and updating its Start Deck for every new WAP Application is not a reasonable model for the carrier. Although many carriers are implementing developer programs to support developers, it can still be a time-consuming process to "get in with the carrier."

Service aggregators can help to place your applications with multiple carriers while hurdling the business and technical challenges associated with each carrier. Aggregators can help to make an application accessible from each provider's Start Deck. They can also integrate with the carrier's billing system so that consumers are directly billed for your services. Some aggregators might even host your application to help ensure the high-availability expected by the carrier. Of course, the aggregator might expect a portion of the revenues obtained by your service.

Direct WAP Sales

The final option for an application developer is to market and sell a WAP application directly to the consumer. This is perhaps the easiest way to get started, but the most difficult way to generate revenue. It requires direct billing of a consumer who is already paying monthly fees to the carrier. It also requires the consumer to access a WAP site via a custom bookmark that can be tedious to assign on the mobile phone.