MOBILE 3G IS COMING TO A SUPERMARKET NEAR YOU

PETER PERROTTA

CHICAGO -- Most of the expected mobile commerce revolution hasn't arrived, so it is not too late to start planning. But the clock is ticking.

That was one of the many observations made by Michael J. Silverstein, senior vice president, Boston Consulting Group, a presentation he made last month during the Food Marketing institute convention here.

"You are all experiencing the beginning of the m-commerce revolution. There is so much speculation and hype around this future," Silverstein said during his presentation titled: "Mobile 3G and the Coming M-Commerce Revolution."

Silverstein spoke of a 3G (third generation) mobile world in which broadband wireless networks make it possible for users to access the Internet using a variety of mobile devices including Web-enabled cell phones and personal digital assistants (PDAs).

And it is expected that for retail purposes, shoppers will eventually be able to use these wireless devices to scan, locate and pay for items in supermarkets. Moreover, retailers will be able to market shoppers using these devices as they move through the store.

"Today we are at the forefront of another revolution," Silverstein said. "That revolution will allow us direct communication with the consumers both in the store and out of the store."

According to research provided by Silverstein's Boston Consulting Group, m-commerce is poised to grow from the $200 million in annual revenue of last year to nearly $50 billion by 2005.

Boston Consulting's projections hold that major applications of wireless technologies are likely in information, location services, entertainment, enhanced communications, advertising and retail.

Silverstein said that currently Europe and Asia, especially Japan, are far ahead of the United States when it comes to wireless Internet applications.

However, he anticipates that eventually this country will catch up.

"You don't need to wait for wireless applications to begin planning for wireless applications," Silverstein said.

Throughout his presentation, Silverstein alluded to the wildly popular success story of Japanese communication company NTT DoCoMo's i-Mode service.

I-Mode is a wireless Internet application in Japan that is accessible on text-enabled cell phones and PDAs.

In just 19 months on the market, i-Mode's "always on" technology has attracted 15 million users.

Silverstein predicted that third generation wireless Internet applications will take hold in Japan by late 2001 or early 2002, but not for several years after that in the United States.

"Begin experimenting today so that you are ready for 3-G," he said.

During his presentation, Silverstein offered the following list of actions organizations can undertake to get ready for the m-commerce revolution he sees ahead:

Begin experimentation.

Equip a logistics network.

Partner with mobile suppliers.

Joint-venture with a local wireless network to begin communication with consumers.

Plan for a world of connection, with information and richness of data flow to consumers.