| GartnerGroup Says Mobile and Wireless Technology to Walk Away with E-commerce |
| Europe to close US vs. Europe E-Gap with mobile vision |
GartnerGroup's European Symposium/ITxpo '99,
Palais de Congres, Cannes 1-4 November
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Cannes, France - November 2nd 1999 - Speaking at GartnerGroup's European
Symposium/ITxpo '99 conference in Cannes, analysts today mapped out their vision of how the
explosion of mobile phone adoption is set to rewrite the rules for E-commerce. Analysts said that
while the United States is focusing on the PC and TV set-top boxes as the principal channels for
business to consumer E-commerce, consumers outside the US have been adopting mobile
telephones. This trend is particularly clear in Europe, where mobile phone adoption outweighs
Internet adoption at a ratio of 4:1, and GartnerGroup predicted this is where Europe will not only
catch up, but also leapfrog the US in embracing E-commerce.
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Mobile phone adoption is growing at a breathtaking speed across Europe and according to
GartnerGroup analysts, mobile phone penetration in Europe will exceed an average of 60 percent of
the population by 2004. The large number of mobile phone users combined with the emergence of
new wireless technologies such as Bluetooth, WAP (Wireless Application Protocol) and common
mobile device operating systems represent entirely new opportunities in mobile E-commerce both
via Web enabled and direct consumer to business models during the next 36 months.
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GartnerGroup predicted that by 2004, at least 40 percent of business to consumer E-commerce
transactions outside North America will be initiated from portable, cellular-enabled devices.
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Peter Richardson, Principal Analyst at GartnerGroup's Dataquest said to delegates at the
conference, "Europe is close to a turning point in the way users view E-commerce and how they
want to access e-mail and information services." He said the necessary drivers are in place for
mobile devices to pave the way.
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Mobile E-commerce: more than the Internet
Analysts explained that WAP technology represents the mobile passport to the Internet,
performing as a micro browser and customising web content for small display on the mobile phone.
The company's latest forecasts show that over 95 percent of new mobile phones shipped in 2004
will be WAP-enabled.
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While WAP utilises the Internet, Nigel Deighton, Research Director, GartnerGroup, pointed to
Bluetooth as another major groundbreaker in the mobile E-commerce story. Bluetooth is a wireless
technology designed to provide mobile devices with an easy to use, short-range connectivity
solution. Deighton said, "This represents a completely new dimension to E-commerce, which will
radically change how portable and wireless devices are viewed and used. It provides endless
opportunities for applications such as vending and ticketing machines, point-of-sale terminals,
banking machines and parking meters.
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GartnerGroup predicts that more than 75 percent of new handsets shipped in 2004 will be
Bluetooth-enabled and said it will be one of the biggest drivers in the adoption of E-commerce in
Europe. Deighton urged companies to evaluate Bluetooth not just as a cable replacement tool, but
also as a real generator of new E-commerce opportunities.
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GartnerGroup suggested that the success of the mobile phone in Europe can be explained by the
three U's: Ubiquity, Utility and Usability. Neither the PC nor the TV passes these criteria. In fact,
GartnerGroup predicted that the volume of annual shipments of portable Internet-enabled devices
would exceed that of PCs in 2003.
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GartnerGroup's Symposium/ITxpo '99 is the IT industry's largest and most strategic conference
providing business leaders with a look at the future of IT today. To accommodate the growing
numbers of IT professionals who want to attend the event, whilst maintaining its high standard,
GartnerGroup is for the first time limiting the number of registrations in Cannes to 4,000, and has
announced it will launch an annual Spring Symposium, to take place in April 2000.
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About GartnerGroup
As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products
and services in the areas of IT advisory services, measurement, research, decision support,
analysis, consulting and training. Founded in 1979, with headquarters in Stamford, Connecticut,
GartnerGroup is at the centre of a global community of more than 9,300 client organisations served
by analysts in 80 locations world-wide. Additional information about the company is available
on the World Wide Web at www.gartner.com.
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For more press information on Symposium/ITxpo '99 please contact:
Sarah Wadsworth at AUGUST.ONE Communications on 020-8434 5555 or email
sarah.wadsworth@augustone.com.
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CONTACT:
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