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Mobile Phone Industry News

Informtion on whats happening within the Mobile Phone Industry, New Technologies and Products and much more.

Page 1 | 2

Random Roaming Could Cost Mobile Operators

Global roaming calls on mobile networks could now be worth in the region of $50 billion annually according to roaming specialists Roamware Inc. But, the company says, operators who are not tuned into the potential of controlled roaming are gifting revenue to rival networks.

The last official industry valuation on the roaming market - calls made on networks other than subscribers' 'home' networks - based on GSM technology, was some four years ago when global GSM subscribers had reached 250million in 140 countries. The roaming market was estimated to be worth around $12billion annually - a little under ten per cent of the annual market at the time.

Today, total global subscribers number more than one billion with global operator revenues from GSM alone forecast to hit $500billion by 2005.

Roamware CEO John Hoffman, says the figures add up to big business for wireless operators.

"Whichever way you cut the cake the cake - roaming has become a huge global business for the operators. If we assume the growth rate for roaming has matched subscriber and revenue expansion then we are looking at a business opportunity worth in the region of $50billion annually.

"Mobile phone network operators that do not give roaming subscribers their full attention are potentially losing out," adds Hoffman. "And it's not about getting subscribers to spend more, it's about getting them to stick to the right partner networks, and to be able to use the same services when they roam that they use when at home. Roaming is no longer about the availability of service, it's about the capability of the services you can access when you roam.

"Properly served roaming subscribers make more use of their phone, and the savvy home network operators get the partner revenue - instead of gifting it to a rival network through random roaming."

With the implementation of enabling technologies for data, roaming services have entered a new era. Providing transparent access may prove to be the difference between success and failure in terms of revenue generation.

But Hoffman is also clear about the benefits to the subscriber.

"When I find a network that has implemented the ability for me to mirror my home environment, I willingly utilise the services. I am pleased that my phone remains a powerhouse communications tool and I use it more frequently - I can also benefit from competitive prices because I have been roaming on a partner or associate network.

"And while I may spend more overall, I am also happier because I get more done - everybody wins."

Online Gaming is to TV what Talkies were to Silent Pictures

The advent of advertising-based revenue promises to bring noticeable growth to Online Gaming (OLG) according to In-Stat/MDR. A recent report from the high-tech market research firm projects that, as OLG providers begin to tap into the revenue opportunities that advertising has historically bestowed upon TV networks, the total OLG market will approach $4 billion by the end of 2008, up from just over a billion dollars in 2003.

To this point, OLG has been stifled by the fact that a typical gamer is currently paying over a dollar an hour to play video games, whereas the typical TV viewer is paying about 13 cents an hour. InStat believes that advertising sales will be able to lower end-user costs in the online gaming world in the very same fashion it has done for commercial television. When the costs of OLG per hour starts to approach the level of TV, you can expect people to spend a comparable amount of time gaming.

In-Stat/MDR isn't the only company that knows this revolution is imminent. The foremost authority in TV ratings - Nielsen - has started to develop metrics to analyze the use of ads in games. Once the metrics are in place, the revenues will follow. The secret strength of online games will be when the volumes of people playing grow to the point where advertisers will start buying ads that will not only be interactive, but also targeted at specific demographics of players. As the cycle starts to build on itself, where more ad-sales lowers the cost to game, there by driving up the number of gamers, which will in turn increase ad-sales, OLG data traffic will grow to account for almost one third of the US backbone by 2008.

In-Stat/MDR has also found that:

While only about a sixth of the US population currently plays games online, that number will grow to nearly half the population by 2008.
Xbox Live missed forecasted subscriber growth from last year by about 41% because of a 40% price increase compared to 2002, but it is still slated to reach nearly 2 million subscribers by the end of 2004.
Sony has nearly a million people playing one online game, SOCOM II: Navy SEALs, scoring nearly two million hours of game play a week. There will be over 100 online-enabled games available for the PS2 by the end of 2004.
While there are millions of people that play games online over consoles, there is still 20 times that number playing OLGs over the PC. The PC will remain the dominant method to game online for the foreseeable future.
Over 6 million people worldwide participate in Massive Multiplayer Online Role Playing Games (MMORPGs), but due to the high annual cost of the activity ($150 to $200), MMORPGs that charge monthly fees are only expected to grow slightly over the next 5 years.
This Market Alert is drawn from the In-Stat/MDR report, "Online Gaming: Where the Lost Boys Are", covers a wide breadth of topics and forecasts many aspects of the Online Gaming phenomenon, such as: The Paid Online Console market (Xbox Live), The Free Online Console market (PS2 & GameCube online), Total Online Console data transfers (in Petabits per month), MMORPG markets (both US and Worldwide), Summary of all OLG data usages, Projections for the total US backbone traffic, Broadband growth in the US, Total revenues for the OLG market, Detailed analysis of how advertising dollars will be an adrenaline shot OLG revenues, and How service providers can capitalize on OLG and minimize its negative impacts.

GSMA joins Internet Content Rating Association (ICRA)

The GSM Association (GSMA), the global trade association representing more than 630 GSM mobile network operators across 200 countries announced on Friday that it has joined the Internet Content Rating Association (ICRA).

ICRA's Board of Directors has also appointed Tom Phillips, Chief Government & Regulatory Affairs Officer of the GSMA as Chair of its Board and Executive Committee.

ICRA is an independent, non-profit, organization working with Internet content providers and other members of the industry to develop a filtering and labelling system that can be used by parents around the world to protect their children from potentially harmful material on the Internet.

The GSMA's commitment to ICRA reflects its growing focus on the challenges and issues surrounding inappropriate content that can be potentially accessed by, or delivered to mobile devices.

"The new generation of mobile devices mean that it is possible to do almost everything on an Internet-enabled phone that can be done from an Internet enabled computer," said Tom Phillips. "Therefore the sharing of experiences on the lessons learned from the fixed Internet will be invaluable to the GSMA's global operator community as it strives to create a safer mobile Internet environment."

ICRA's aim is to make content labelling standard for all internet content, so that the public can reliably expect what kind of content web sites offer. In particular, parents are encouraged to use filtering devices, ultimately making the internet a safer place for children. ICRA makes no value judgement on internet content - it is up to content providers to rate the type of content they display and help protect vulnerable members of society, like children.

Stephen Balkam, CEO, ICRA, said, "The GSM Association's support for ICRA is a key development and a boost our efforts to encourage responsible Internet content access and labelling, helping parents to protect their children from potentially harmful material in the evolving world of mobile communications."

Nokia reveals handful of new handsets (AGAIN)

The mobile manufacturer has launched five new handsets, including three clamshell models.Nokia has beefed up its handset portfolio, revealing on Monday five new phones, including three clamshell models and a 3G-enabled cellphone

The 6630 device -- the company's third wideband CDMA handset -- comes with a 1-megapixel camera and runs on Series 60, Nokia's implementation of the Symbian OS

However, it will not be suitable for face-to-face video conferencing, as its camera lens is positioned at the back of the phone

According to Anssi Vanjoki, executive vice president & general manager of Nokia Multimedia, this is no great loss.

"In the 1950s, when the video call was introduced by AT&T Bell Labs, it didn't get too much attention because seeing somebody else's face on the other end isn't such an exciting proposition," he said. "What's very important is to be able to describe what you see."

"To my understanding, even in Japan, most of the usage is from 'see-what-I-see' applications, not video conferencing," he added. Nokia's latest launch comes on the back of a disappointing first quarter, when sales from its Mobile Phones unit fell 15 percent. Research firm Gartner reported last week that the Finnish giant's global market share dipped from 34.6 percent to 28.9 percent in Q1, 2004

According to Vanjoki, part of this was due to a gap in the company's portfolio. "We had delays in the implementation of mid-range products, particularly the folder-type designs," he said. "We are taking our situation very seriously".

He added that the company has been moving fast to address the problems, namely with its new clamshell models -- the swivel-display 6260 smart phone, the dual-screen 6170, and the lower-end 2650. The entry-level 2600 was announced at the same event. All five phones are expected to hit the streets in the second half of the year


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