Although there are significant revenue opportunities for players across the service delivery chain, the size and complexity of the Web 2.0 mobile market should not be underestimated. There are multiple routes to market, and there is fragmentation at all levels.

"A confluence of Web 2.0 concepts and end-user behaviour exploiting both the Web and the mobile phone as delivery platforms is driving mobile Web adoption and shaping industry development," says report author, Ian Chard. "Yet the distinction between service provider roles is becoming less clear-cut, meaning some commercial allies are finding themselves increasingly polarised as the market progresses."

The mobile social web report found that despite pricing models and monetization of Web 2.0 presenting a significant challenge for many online service providers, numerous opportunities exist in the mobile market based around advertising, messaging, premium services and virtual economies, coupled with the strategic micro-billing capability of mobile.

Off-portal applications and OTT (over-the-top) services - such as mobile IM and VoIP, SMS and social network-based 'in-mail' - represent a significant threat to operator revenues Smartphones, app storefronts, and Web 2.0 applications are driving demand for cloud computing, and innovation in the service delivery environment - including Telecom Web Services, open APIs, and PaaS (platform as a service) and SaaS (software as a service)

This study published today is the first of two reports focusing on mobile web 2.0:

1.       Mobile Social Web 2.0: Forecasts, Challenges & Regulations 2010-2014

2.       Mobile Web 2.0: Business Models, Geolocation & Presence 2010-2014