Mobile Data Offloaded Will Grow 100-fold by 2015
Mobile data offloading is forecast to triple in the next five years. According to a new study from ABI Research, about 16% of mobile data is diverted from mobile networks today, and that is expected to increase to 48% by 2015. But data traffic itself will have grown by a factor of 30, meaning that offloaded data will expand 100-fold.
The serious, well-publicized traffic overloads (including content data and radio signaling) that are starting to choke many mobile networks will only worsen as smartphones and other mobile devices proliferate, and operators must extend capacity. Brute force network expansion, requiring a doubling of capacity, isn’t an option.
Instead, several approaches and technologies will play specific roles in relieving network congestion. These include Wi-Fi, femtocells, mobile CDNs (content delivery networks) media optimization, and more. [ABIResearch]
As ABI Research practice director Aditya Kaul explains, “Each of these offload and optimization technologies is aimed at solving a particular problem and they will all coexist. Wi-Fi is effective in covering limited areas containing many users, such as transport stations and sports venues. A femtocell, in contrast, is a good solution for targeting small numbers of heavy data users. Mobile CDNs attack the problem of frequently-used content, for example a video that has ‘gone viral’, by caching the file locally rather than loading it onto the network for each download request.”
One of the most effective tools is media optimization – effectively improved compression – which is already being used widely. Media optimization will grow the fastest and deliver the greatest traffic reduction of all these methods.
Data offloading saves money as well as relieving network traffic. “Moving data costs a surprising amount,” says Kaul. “Wi-Fi and femtocells in particular do that at a tiny fraction of the per-Gigabyte cost of a 3G network. The ABI Research report precisely quantifies these savings.”
Most of these solutions are being offered to operators by a number of suppliers. Prominent among them: Belair Networks for carrier Wi-Fi; Ubiquisys for femtocells; Akamai for CDN; Stoke, Inc. for core offloading; and for media optimization, Bytemobile and Openwave.
ChinaTel Planning 29-market Fixed WiMAX Deployment in China
By Lynnette Luna
ChinaTel Group is working with CECT-Chinacomm Communications to deploy a WiMAX network in the 3.5 GHz band across 29 markets in China, including large population areas such as Shanghai and Shenzhen.
Chinatel's Kenneth Hoobs, vice president of mergers and acquisitions for ChinaTel, told RCR Wireless News that the company has 20 megahertz of spectrum, which could increase in the future thanks to the Chinese government. ChinaTel is under a government mandate to deploy 12 markets by June 2011. The company has already finished construction on three network operating centers and three switches, and construction of the network in the remaining 17 markets will likely begin in 2014.
The company already has a presence in China via WiFi deployments in Beijing to support the 2008 Olympics. ChinaTel was then contracted through its partnership with CECT-Chinacomm to begin building a fixed WiMAX network using spectrum granted by the government. Today, ChinaTel said it has has between 400,000 and 500,000 people paying for access to its WiFi network that covers parts of Beijing, Shanghai and Shenzhen.
Last week ChinaTel signed an MoU with Chinese vendor ZTE to make that supplier the preferred infrastructure provider of equipment, operational services and financing for the wireless broadband networks ChinaTel is planning for not only China but Peru and other markets.
ChinaTel recently acquired a 95 percent stake in Peruvian telecom provider Perusat S.A., which holds 2.5 GHz spectrum licenses covering portions of Peru.ChinaTel may be deploying the fixed version of WiMAX, but the company has indicated it can upgrade rather easily to the mobile version of the standard and also move to LTE as a network overlay or a side-by-side addition to the WiMAX network pending government approval of course. [FierceBroadbandWireless]
Report: Apple Passes Nokia in Handset Profitability
By Phil Goldstein
Not only can Apple make a compelling smartphone, it also can make a profitable one. According to research firm Strategy Analytics, Apple surpassed Nokia for the first time in the third quarter to become the most profitable handset maker.Apple had $1.6 billion in operating profit in the quarter from its iPhone handset division, while Nokia had $1.1 billion in operating profit from its handset division, according to the firm.
The results are not entirely surprising given the disparate performances of the two companies in the quarter. Apple sold 7.4 million iPhones in the quarter and had its most profitable quarter ever, while Nokia shipped fewer handsets on a year-over-year basis, and saw its global smartphone marketshare decline from 41 percent to 35 percent.
The changing dynamics of the handset market underscore the way smartphones have come to dominate growth in the industry. It was a little more than two years ago that Apple first broke into the handset market with the original iPhone, and yet the company has quickly become a major player.
Alex Spektor, an analyst at Strategy Analytics, said that strong volumes, high wholesale prices and tight cost controls have helped Apple break into the market. Meanwhile, Nokia is still the world's leader in smartphone marketshare, but, according to the research firm, the company must make further inroads in the U.S. market.
"Strategy Analytics believes that the United States, where Nokia now trails Apple in marketshare, is the key to Nokia's recovery in 2010," Strategy Analytics analyst Neil Mawston said in a release. "A successful fight on Apple's high-profit home turf can simultaneously help to revitalize Nokia's margins and to put a check on Apple's surging growth." [FierceWireless]
Mobile Handset Accessories Market to Turn Over Nearly $55 Billion This Year
By the end of 2009 the world’s mobile handset accessories market will have chalked up a value of nearly $55 billion. That represents a small decrease from the 2008 figure, surprising only in that the decline hasn’t been larger. “While improving slightly,” says industry analyst Michael Morgan, “handset accessory market growth will remain somewhat sluggish in 2010, and not until 2011 will the 2008 figure be surpassed. After that, we expect, strong growth will resume.”
Within that overall picture, certain segments – notably the very important memory card market – face particular challenges. The memory card market, says Morgan, has been so oversupplied that selling prices are barely above production costs. Those conditions may be starting to change, however. “While it’s always dangerous trying to call the bottom of a market, very recently it has begun to look as if memory card prices are stabilizing and even starting to rise slightly.”
One positive result of the low prices – positive for the consumer – is the increase in capacity of cards that are offered “in the box” with mobile handsets. Whereas 512 MB or 1 GB cards were formerly the norm, the low prices mean that buyers are pleasantly surprised to find cards up to 8 GB accompanying their phones. That’s seen as a positive selling point by handset vendors, since the multimedia capabilities of many models today chew through storage and processing power as never before.
Faced with the commoditization of their products, some memory vendors are starting to experiment with new ways of increasing the cards’ value to consumers, such as pre-loading them with music, or having a card include both a video game and supporting software, so when it is added to a phone, it will not only provide the game but improve the device’s gaming capabilities. [ABIResearch]
Third-Party Base Station Software Market to Add $1 Billion by Mid-2010
The market opportunity (TAM) for third-party software written for cellular base stations and other infrastructure will increase by about a billion dollars by the middle of 2010, according to a new Research Brief from ABI Research.
In the past, over 95% of the base station bill of materials was hardware, but now they use off-the-shelf hardware and 10% to 20% software. Large OEMs tend to purchase third-party, pre-integrated software or protocol stacks to develop infrastructure equipment. Benefits include faster development time, lower life cycle cost, and reduced R&D investment, project risk, and complexity.
Base station prices have significantly decreased in recent years. According to Senior Analyst Nadine Manjaro, “OEMs are still pressured to reduce costs due to competition. OEMs will look for alternatives which open the market for small start-up companies that specialize in developing protocol stacks and reference designs for emerging technologies.”
These companies bear the development risks for the new technologies and often sell their solutions to large OEMs who then package and brand the solution as their own. “Once emerging technologies gain traction in the market place,” adds Manjaro, “large OEMs dedicate internal resources to develop solutions, possibly even purchasing the suppliers.” [ABI Research]
The Birth of The World’s First Super Mobile Carrier?
It’s been talked about and some have even tried, but at present, there are no truly global carriers in the mobile space, something that Vodafone CEO Vittorio Colao wants to change.
While there are mobile operators with networks across multiple markets, such as Hutchison’s Three, and obviously Vodafone itself, and companies with assets in multiple countries such as SingTel Group, none can claime coverage worldwide.
In an interview with the UK’s Financial Times, Colao suggests that acombination of Vodafone, Verizon Wireless and China Mobile could create such a super carrier that would be “unbeatable.”
“If you think of three players, China Mobile is very strong in China; it’s a big country. Vodafone is very strong in Europe, Africa, India. Verizon is very strong in the US. If these three companies could work more closely... in the management of customers, procurement and service creation, we could be unbeatable, quite frankly,” he said.
While the notion might seem farfetched, there is some potential behind Colao’s words. Vodafone already owns 45% of Verizon Wireless and 3.2% of China Mobile. The three companies also announced last year that they would cooperate on the development of LTE.
Colao only has to convince the two partners to work a little closer together. Perhaps the only glitch in such a plan is China Mobile’s 3G license in China, which is based strictly on the home-grown TD-SCDMA platform. [Tony Chan-CommsDay]
ABI Research Survey: 79% of Respondents View Netbooks as “Secondary” Devices
In November 2008 ABI Research carried out a survey of more than 1000 adult consumers in the United States, aimed at identifying their attitudes to netbooks and mobile Internet devices (MIDs). The results are summarized in a Research Brief that provides critical insights into consumer perceptions of these products
Among many other results, the research found that only 11% would use a netbook as their primary computer, while a massive 79% view netbooks as a secondary device to be used in addition to a laptop or desktop computer.
Netbooks are smaller, so they’re not as easy to use or as powerful as a PC or a laptop, and generally don’t include built-in CD or DVD drives. However, the flip side is that the smaller size and weight of netbooks makes them much easier to tote around the home or on-the-go.
According to principal analyst Philip Solis, “While their low price does cause some consumers to view netbooks as a replacement for a laptop given the current economic conditions, the majority view a netbook as being a secondary device.”
“Even as a device that is secondary to the PC, this has to cut into the laptop market somewhat. When considering another laptop as an additional device mostly for browsing the web and using other Internet-based communications applications, consumers will find netbooks to be an appropriate alternative.”
This Research Brief, “US Consumer Interest in Netbooks" addresses consumers’ levels of interest in purchasing these devices, expected usage patterns, preferred applications, size and form factor, operating systems, affordability, and more. Each survey result is accompanied by concise interpretations of its significance. [ABI Research]
Dell Eying Smartphone Market
By Luke Simpson
With its market share in the personal computer business slipping, Dell may be the next computer company to enter the cell phone market.
According to The Wall Street Journal, engineers at Dell have produced two smartphone prototypes: one with a touch screen similar to Apple’s iPhone and another with a slide-out keypad. The prototypes reportedly use operating systems Android and Windows Mobile.
Dell would not comment on the article.
Speculation about Dell’s cell phone plans heated up when former Motorola mobile phone division head Ron Garriques went to Dell in early 2007. Garriques’ non-compete clause expires next month, according to the Journal report.
If Dell does release a smartphone, it will enter a market that saw sales of $157 million in 2008, up 26.9 percent from 2007. However, simply building a smartphone may not be enough, according to industry analyst Jeff Kagan.
“Not all smartphones are doing equally well. Some are hotter than others. BlackBerry was hot during the last month or two with their two new units being sold by AT&T and Verizon. Palm looks like it will be healthy again with their new handset expected during the next few months,” Kagan noted. “So will Dell devices hit a home run or will they just hit a single? That is the big question.” [Wireless Week]
D-Link Sebagai Pemenang Merek Global Taiwan 2008
3 Kali menang dari ke-7 merek paling berharga di Taiwan
D-Link Corporation, salah satu pemasok produk jaringan terbesar dunia, hari ini mengumumkan bahwa Taiwan External Trade Development Council (TAITRA) dan Interbrand, sebagai konsultan merek terbesar di dunia, menobatkan D-Link sebagai yang merek global ke 7 yang paling berharga dari Taiwan. Dengan nilai merek yang hampir US$344 juta, perusahaan jaringan ini juga telah meningkatkan peringkatnya dibandingkan dengan perusahaan jaringan lain yang juga masuk dalam daftar Merek Global Taiwan tahun lalu, untuk meningkat dua peringkat menjadi merek ke-4 paling berharga.
"Ini adalah ketiga kalinya secara berturut-turut kami menerima gelar kehormatan ini," kata John Lee, Pimpinan, D-Link Corporation. "Ini adalah sebuah pengakuan yang tidak diragukan lagi atas upaya tiada henti dari D-Link untuk terus berinovasi dalam teknologi dalam menghasilkan produk yang terbaru, canggih dan juga paling bersahabat bagi para konsumen kami. Sejak tahun 1986, D-Link telah menjadi produk jaringan kepercayaan para konsumen, dan kami akan terus menjaga kepercayaan tersebut dari tahun ke tahun."
Dua puluh Merek Global Taiwan yang terpilih, dipilih berdasarkan metodologi Interbrand, yang telah digunakan untuk mengevaluasi 100 merek paling berharga dunia (seperti yang biasa diterbitkan oleh BusinessWeek). Metodologi evaluasi menggabungkan analisa keuangan; peran dari Indeks Branding dan Skor Kekuatan Brand; sehingga memberikan indikator yang konkret atas merek Taiwan dalam pasar global. Nilai merek didasarkan pada pengumpulan data yang dilakukan selama dua belas bulan sebelum 30 Juni 2008.
Menurut angka TAITRA, dua puluh merek teratas yang bernilai sekitar US$9,14 miliar terhitung pada tanggal 30Juni 2008, melebihi US$9 miliar yang terukur pertama kalinya. /PR
Mobile Network Infrastructure Vendors Starting to Feel the Heat
Nortel’s share price recently dipped to about 40 cents. While ABI Research in no way singles out the beleaguered network equipment vendor as worthy of particular criticism, according to senior analyst Nadine Manjaro Nortel’s low fortunes are symptomatic of several current industry trends.
A recent study from ABI Research, “Mobile Network Vendor SWOT Analysis,” examined the strengths, weaknesses and strategies of the world’s major wireless infrastructure providers. It provides insights into why bad economic times affect some companies more than others.
“Nortel is strong when it comes to the enterprise,” she says, “but recently they have made a lot of investments aimed at winning business from service providers, efforts that have not really taken off because of an unclear strategy and changes in operators’ technology choices. That was an ominous situation, which the global recession has now made more serious.”
In contrast, Alcatel-Lucent was doing poorly too, but is now improving its performance and gaining higher ratings from financial analysts after a corporate revamp and a change of top leadership. Motorola’s share price is on the rise too due to re-structuring and shifting focus into stronger segments.
Does the recession mean that network operators are cancelling or delaying infrastructure projects? Not necessarily. Telecoms are actually faring better than many other industries, and while operators may cut spending, so far the cuts have mostly been operational rather than on infrastructure.
“It’s about decisiveness and execution,” Manjaro concludes. “Take a company like Ericsson: they’re not doing great business, but their share price is still around $8.00. Their strategies are clear, and they benefit greatly from their emphasis on providing managed services as well as hardware. All vendors are struggling, but some more than others, and this market will weed out the weaker players.”
“Mobile Network Vendor SWOT Analysis” offers analysis of the strengths, weaknesses, opportunities and threats facing a number of leading network infrastructure vendors. It presents an analysis of the companies’ financial results, including investments in research and development, product line diversity, geographic sales distribution, and long term strategies. [ABI Research]
Worldwide Smartphone Sales Slow in Q3
By Jason Ankeny
Worldwide smartphone market sales totaled 36.5 million units during the third quarter of 2008 according to market research firm Gartner, which called the 11.5 percent jump over Q3 2007 totals the "weakest year-on-year growth since [the company] began tracking the industry." Nokia retained its overall smartphone lead with 42.4 percent market share in Q3, but for the first time it suffered a sales decline of 3 percent year-over-year, moving 15.4 million units.
Research In Motion captured second place with sales of 5.8 million and now boasts market share of 15.9 percent, an increase of 81.7 percent over the third quarter of 2007. Apple followed in third with iPhone sales of 4.7 million to claim 12.9 percent of the global smartphone market, a 327.5 percent leap over a year earlier. HTC came in fourth with sales of 1.6 million, translating to a 4.5 percent market share and 25.9 percent year-over-year growth, and Sharp placed fifth with sales of 1.2 million (3.4 percent market share and a 19.3 dropoff compared to Q3 2007 totals).
Gartner reports Symbian now commands 49.8 percent of the worldwide smartphone OS market, the first time its share fell below the 50 percent mark--a year ago, Symbian dominated 63.1 percent of smartphone OS sales, with the report blaming the decline on slumping Nokia sales as well as the continued weakness of the Japanese mobile device market.
Gartner adds it expects Symbian's market share to continue to erode in the year ahead, although it will remain the dominant mobile OS. RIM's BlackBerry OS occupies second place with market share of 15.9 percent. Apple's Mac OS X came in third at 12.9 percent, edging past Microsoft's Windows Mobile (11.1 percent) -- Gartner notes that for the first time, iPhone sales topped sales of WinMo devices worldwide and in North America. Linux is in fifth with 7.2 percent, and Palm OS is in sixth with 2.1 percent.
Gartner's other third quarter smartphone findings: North America is the fastest growing market, with a 68 percent increase--together, RIM and Apple accounted for more than 70 percent of the North American smartphone market in the third quarter. Smartphone sales in Europe, the Middle East and Africa increased 14 percent year-on-year, with Nokia's share sliding nearly 8 percentage points and Apple vaulting ahead of HTC and RIM to secure the number two spot.
Sales in the Asia/Pacific market fell off 11 percent overall, with Japanese smartphone sales declining 23 percent--in Latin America, overall handset sales slumped, but the smartphone market grew 56 percent, galvanized by the introduction of Apple's iPhone 3G across dozens of markets.
"In 2009, application portfolios will become one of the key strategic considerations for smartphone market players and, if successful, they deliver an alternative revenue stream and will improve consumer stickiness," said Gartner principal analyst Roberta Cozza in a prepared statement. [FierceDeveloper]
Gartner: Apple Improves Marketshare, Now 3rd Largest Smartphone Maker
Research firm Gartner said 36.5 million smartphones were sold in the third-quarter this year, an 11.5% increase from last year, but a slowdown from the 15.7% annual growth seen in the second quarter.
Roberta Cozza, Gartner’s principal analyst, said that sales of the higher end devices are affected by the current negative economic climate. She added that the growth of smartphone device market should be expected to continue to move at a slower pace.
Speaking of market leader Nokia: “The company introduced solid Nseries products with top features, but its lack of a commercial touch-screen device in its smartphone portfolio prevented Nokia from capitalising from consumer demand for this feature. The recently announced N97 is a much needed evolution for the n9x series of products. It is unfortunate that the device will not be available before the first half of 2009 as this is a competitive product in today’s market.”
Apple, on the other hand, improved its market share to 12.9 per cent in the third quarter of 2008 with a shipment of 7 million units. The increase in the company’s sales reached to more than four times compares to the same period in 2007. The success of the iPhone 3G sales is due to its wider geographical availability, new business model, and lower pricing as opposed to Microsoft’s lack of a competitive user interface.
North America was the fastest growing market with a 68 per cent increase; 56 per cent in Latin America; and 14 per cent increase in the sales in Europe, the Middle East and Africa (EMEA). The markets in Asia/Pacific and Japan, however, posted an 11 per cent and 23 per cent decline respectively. [Cpmmsday]
Portable Music Devices Are the Fastest-Growing Bluetooth Market
While cellular handsets/headsets continue to make up the largest share of the massive Bluetooth market, according to a recent report from ABI Research portable music devices constitute the fastest-growing segment.
“Cellular handsets continue to account for about 60% of today’s 1.2-billion unit market,” says senior analyst Doug McEuen, “but the prize for rapid market growth definitely goes to portable music devices. Bluetooth shipments for these products are expected to grow from a mere 550,000 in 2006 to more than 80 million in 2013. That represents a compound annual growth rate of 104%.”
While iPods do not yet come with embedded Bluetooth, McEuen credits Apple’s iconic music player with continuing to carry this part of the Bluetooth market on its coat-tails. “When looking at the issue of functionality, it becomes clear that Bluetooth is likely to be positioned as a key differentiator that Apple’s competitors will use in order to garner market share,” he notes. Many other MP3 players do offer Bluetooth and others offer third-party Bluetooth products for the aftermarket.
A further development is the increasing inclusion of music players into cellular handsets. Bluetooth is already a standard feature on most cellular handsets. As music functionality is increasingly incorporated into phones, the logical extension is to provide both the hands-free functionality and music functionality through one headset.
“Bluetooth: The Global Outlook” addresses all major applications and variations of Bluetooth, and discusses other wireless connectivity IC integration. Providing the most comprehensive look at the Bluetooth market available today, the report also includes extensive analysis of the equipment and semiconductor markets. [ABI Research]
New Ovum report says 40G Market Moves to Generalized Deployment Phase
Demand, driven by video, is stressing network capacities
For immediate release, November 24, 2008. Leading global advisory and consulting firm, Ovum, today posted its global market update detailing the 40G/100G market.
“After many years of waiting the 40G market is finally moving to a generalized deployment phase. Consumer demand, mostly driven by video, is stressing network capacities and as long as this dynamic stays in place, 40G deployments will continue to see healthy growth,” said Ron Kline, Research Director, at Ovum and author of this latest 40G/100G analysis by Ovum. “What’s most important now is that the industry works to reduce the cost for 40G in order to move the market towards mass adoption.”
After years of technology development, product announcements, and trials, the 40G market is finally moving to a new phase. Globally, over 30 network operators have spent more than $250 million since 2005 deploying the technology. Nortel introduced its DP QPSK to the market in April 2008 and has already gained over 30 customers; the technology is highly regarded by both carriers and competitors.
Further, the Optical Internetworking Forum industry group announced in August 2008, that it had selected DP QPSK as the standardized modulation format for 100G long-distance DWDM transmission, a move welcomed by component suppliers, as it makes their investment cases easier to justify.
The largest 40G application by volume thus far is for router-to-router interconnect. Comcast and AT&T have the largest commercial deployments, but government-funded defense and research networks have contributed significantly to revenues. “Global revenue for 40G line cards in 2007 was $178 million and we expect the market to grow 48% annually through 2013,” said Kline.
The new report from Ovum’s Network Infrastructure practice provides Ovum’s analysis of the 40G market, including market drivers and challenges to deployment, and correlating commercial activity. The report also includes analysis of market competitors including descriptions of 40G capabilities and customer deployments, analysis of 40G modulation formats, revenues and unit forecast and market share data for the global 40G market as well as analysis of 100G development efforts. /PR
Market Forces to Drive Embedded Cellular Modem Sales Over 83 Million Units in 2013
Although embedded cellular modem sales have been slow to take off, momentum is building for increased sales, according to a recent study from ABI Research. One recent development is the GSMA’s Mobile Broadband Service Mark initiative which, backed by media spending of $1 billion, will create awareness of laptops with embedded connectivity.
Other drivers include: Qualcomm’s Gobi chipset that enables modem connectivity on both GSM and CDMA networks; lower mobile broadband pricing; and networks maintaining their current EV-DO Rev A and HSPA air interfaces for at least two more years. ABI Research forecasts that these and other market forces will increase embedded cellular modem sales to nearly $9 billion in 2013.
However ABI Research principal analyst Dan Shey observes that there are some near term barriers to market development. “Although embedded connectivity is convenient, operators can apply the important levers of PC Card and USB modem pricing and promotion, as well as device-specific mobile broadband pricing. These factors can change the total value proposition of an embedded modem device and limit their uptake in the near term.”
Another near-term barrier is the current negative economic environment.
Shey concludes, ”The holiday season will be difficult this year for purchases of bigger ticket items such as laptops. It would not be surprising for laptop OEMs to work more closely with operators to help drive the sales of these devices both with and without embedded connectivity. In other words, product bundles that include laptops, mobile broadband price offers and/or USB modems may be made available to entice buyers during these difficult economic times.” [ABI Research]
iTunes TV Downloads Top 200 Million Milestone
By Jason Ankeny
Apple announced users have downloaded more than 200 million premium television episodes from its iTunes digital storefront, including more than a million high-definition episodes since HD programming launched on the service last month.
According to Apple, all four major U.S. broadcast networks now offer their primetime hits in HD, including series like NBC's The Office, ABC's Lost and CBS's CSI, alongside content from more than 70 cable networks like ESPN, Comedy Central, FX, MTV, HBO and Showtime.At $1.99 per standard-definition episode and $2.99 per HD episode, Silicon Alley Insider projects that iTunes video sales total about $280 million in 36 months.
Conventional wisdom suggests NBC and Disney (which owns ABC and ESPN) are the big winners here: NBC has said it accounts for the majority of video sales on iTunes, and in March, Disney head Bob Iger said The Mouse had sold "40 to 50 million" TV shows there. [FierceMobileContent]
The latest on Xohm: Usage Limits and a New Vendor
By Peggy Albright
Sprint Nextel's launch of the Xohm WiMAX service this week has come under unanticipated controversy for an "acceptable use" policy, written into its Xohm subscriber agreements, which gives the company the right to limit data usage.
According to the policy, Xohm may use "various tools and techniques designed to limit the bandwidth available for certain bandwidth intensive applications or protocols, such as file sharing," in order to ensure a high-quality experience for the overall subscriber base.
The policy quickly gained the attention of Free Press, an advocacy group that supports net neutrality rules for broadband providers, which asserted Xohm is contradicting its open-access promise. Sprint, in turn, has asserted it will not police its users or target specific applications or services. However, it said it reserves the right to make sure no one uses a disproportionate share of the network to disadvantage other customers.
How this matter plays out remains to be seen. However, just last week, T-Mobile USA had to reverse a policy written into its data plans that would have put a 1GB limit on its UMTS/HSDPA users. Earlier this year, Verizon Wireless came under fire from the New York Attorney General for terminating customers of its EV-DO unlimited plan for using more than 5GB per month.
But surely, the Xohm controversy has created a distraction from the buzz surrounding a long-awaited Xohm debut. Sprint launched the service on Monday in Baltimore, just in time for the WiMAX World show in Chicago this week where Xohm became big news, and the operator will kick off a media blitz next week to show off Xohm devices and sustain media attention.
While the service is receiving scrutiny of its geographic coverage, which is to be expected in this nascent business and with a gradual roll-out, its pricing is affordable, coming with an introductory price of $10 per day, $25 per month for home Internet services, and $30 per month for mobile use, and a special $50 price that will cover use by any two devices.
Separately, Sprint has made a vendor change in one of its forthcoming Xohm markets. Nokia Siemens Networks lost its initial contract to build the Xohm network in Dallas. Xohm has opted to use Samsung equipment, which it has on hand, rather than wait for the NSN product, which is not yet ready for commercialization.
Sprint is expected to launch Xohm next, in Chicago and Washington, D.C., by the end of the year. Its networks in Boston, Philadelphia and Dallas/Forth Worth are also under construction. [FierceBroadbandWireless]
RNCOS Releases a New Report- Global Mobile TV Forecast to 2010
RNCOS has recently added a new Market Research Report titled, "Global Mobile TV Forecast to 2010" to its report gallery. The convergence of television and mobile phones has resulted in an ultimate wireless application known as Mobile TV - a technology that promises to offer high quality TV services over the cellular phones on the move.
A number of carriers and technology companies have been working on the roll out of Mobile TV across the world. Some services have been launched, albeit in a limited area and to only targeted audience as for broader adoption, operators need the right combination of infrastructure, handsets, content, and supporting technologies.
And as the Mobile TV remains in its infancy, the right combination of technologies and investment are keys to delivering services at a price that users will accept, says the new RNCOS research report.
The report provides information about the current and future scenario of the Mobile TV market across the world. It studies the major and emerging Mobile TV markets and various Mobile TV revenue models that could add to the further take up of Mobile TV. It also discusses various emerging and ongoing trends in the global Mobile TV market.
Key Research Findings
- The global Mobile TV subscribers are anticipated to grow at a CAGR of more than 60% during the period from 2007 to 2010.- As part of bundled services (Triple-Pay), cellular Mobile TV subscribers will continue to dominate the Mobile TV subscribers during the forecast period.
- The Western European region is anticipated to account for the majority of Mobile TV service revenue by 2010 followed by Asia-Pacific and North America.
- The rapidly growing 3G market and continually declining operators' ARPU from conventional services have been propelling the growth of global Mobile TV market.
- As Mobile TV promises to offer personalized and UGC television services over the mobile phone, great opportunities have emerged for content providers to exploit the traditional TV content over the mobile channel in innovative ways.
- With the mobile ad-spending anticipated to grow at more than 42% from 2008 to 2013, advertising could play a significant role in generating Mobile TV revenue for carriers across the world. [FierceWireless]
LBS Value Chains and Ecosystems are Gearing up for Increased Growth
The growth of the location based services (LBS) market is driven by the emergence of connected navigation devices, the development of new device form factors with advanced user interfaces such as the iPhone, the expected pervasiveness of GPS-enabled phones, and the availability of affordable data plans, with both converged and dedicated navigation and telematics solutions vying for dominance.
“While location-industry value chains have long remained fragmented, the ongoing trend towards consolidation is finally moving the location based services industry into a mature stage,” says ABI Research principal analyst Dominique Bonte. “The expected growth of the LBS and navigation applications and services market and the necessity of improving profitability through economies of scale are the main drivers behind these vertical integration trends. These forces are demonstrated by the acquisition of digital map providers by PND vendor TomTom and handset manufacturer Nokia, the increasing dominance of a limited number of major brands, and recent efforts by carriers to enter the LBS market in Europe and the US.
While the LBS market has been characterized by a large number of services, the industry is now increasingly focused on a limited number of applications such as off-board navigation and social networking, around which features such as location-based search and friend finders are centered. [ABI Research]
Video Server Markets to Reach Revenue of $1.5 Billion in 2013
The broadcast, cable, and telco TV segments of worldwide video server markets are all growing at a healthy pace, and total revenues are expected to reach $1.5 billion in 2013. Of the three, the telco TV market is showing the strongest growth, with a compound annual growth rate of 28% over 2007-2013. Cable will experience a CAGR of about 13.5%, while broadcast markets show the slowest growth at 8%.
“Cable, broadcast and telco TV are all highly competitive markets for video servers,” says ABI Research industry analyst Zippy Aima. “Cable and broadcast are the more traditional modes of entertainment for consumers, but cable providers and telcos have been quicker to adapt to market trends and to offer innovative consumer services. But to remain competitive, even the broadcast segment has tried its hand at hybrid deployments and similar initiatives.”
After a slow start in North America, telco TV is now growing quickly there as it is in the rest of the industrialized world. As the latecomer to the television distribution game, telco TV has the advantage of employing the most current technology and the least legacy infrastructure. This, in part, explains the stronger growth in this segment. The hardware side of the equation is largely commoditized; vendors aim for differentiation via the accompanying software applications.
Most video server vendors address at least two out of these three markets, and increasingly their goal is to offer an end-to-end platform. This plays to the advantage of some of the newer, larger, entrants to the market, such as Cisco, Sun, Motorola and Arris. They have the resources to fit these servers into larger, more comprehensive solutions. However Aima notes that, “Even the smaller, more specialized video server vendors are doing well in this buoyant market.” [ABI Research]
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