'A recreation of the internet'
2008-01-28 11:36
Davos - The arrival of
a truly mobile web, offering a new generation of location-based
advertising, is set to unleash a "huge revolution", Google Inc
Chief Executive Eric Schmidt said on Friday.
"It's the recreation of the internet, it's the recreation
of the PC (personal computer) story and it is before us - and
it is very likely it will happen in the next year," he told a
panel at the World Economic Forum.
Current estimates for mobile advertising are cautious, with
consultancy Forrester predicting revenues of under one billion dollars by 2012.
But Schmidt said this figure was too low and failed to take
into account the fact the mobile web was reaching a tipping
point.
Google aims to be a prime mover by bidding for coveted
airwaves to launch an open US wireless network, pitting it
against established telecommunications players.
The move will take the Silicon Valley-based company well beyond its core web search and online advertising franchises.
Some analysts are worried at the high costs involved but
Schmidt said he was confident location-based advertising -
which could, for example, direct hungry travellers to nearby
restaurants - would be "a very, very good business".
Content providers, already struggling in the modern world
of music and film downloads, are less convinced that mobile
internet is a minefield.
"It is not going to be easy to hang on the price of
content," said Howard Stringer, chief executive of Sony Corp.