Summary
1) Yahoo currently, replicates the traditional online experience well – but not significantly enough for consumers to substitute their behavior in any meaningful numbers.
2) Yahoo! has significant strategic challenges and is best to focus on these.
3) However, Yahoo! may revisit some of their previous partnerships such as with British Telecom and SBC in delivering convergent services.
Analysis
·After much troubled times, the news that Yahoo! has the leading mobile web experience must be welcomed. Judgementally, it can be argued that Yahoo! had the best traditional online experience until the likes of AOL/Microsoft caught up with their portals and products – and Google with its search experience and online monetization.
·Yahoo currently, replicates the traditional online experience well – but not significantly enough for consumers to substitute their behavior in any meaningful numbers. The driver of the mobile web experience may well indeed be user generated content and social networking content over branded content – however the practicalities of better handset form and function as well as swift 3G/HSDPA connections are required.
·Yahoo! has significant strategic challenges and is best to focus on: 1) halting its declining core online services user base, 2) strengthening its product and position in search and 3) leveraging its flickr and del.ic.ious services. I see little possibility for Yahoo to consider a mobile phone service given the above.
·Microsoft is investing heavily in its mobile and search services. The VoIP game has moved on with providers such as Skype, Vonage and VoIPdiscount. However, the potential for partnerships between online providers (such as Yahoo!, Google and MSN) and carriers exist for VoIP break out calls. Maybe Yahoo! should look at this – and revisit some of their previous partnerships such as with British Telecom and SBC in delivering convergent services. For instance, in the UK, Google has signed a deal with Sky to provide online services to their Broadband users – and I expect this in time will be leverage across their other products/platforms.
