Mobile TV disappoints
Broadcast mobile TV hasn’t proved to be very popular yet. About 40 million users watch mobile TV based on broadcast networks, in addition to those watching mobile TV streams via 3G networks. This is well below initial projections, and makes up only about one percent of all mobile phone users. Even the business models in markets with sizeable numbers of broadcast mobile TV subscribers — such as Japan with 18 million, South Korea with 17 million or Italy with well over 1 million — have not yet become viable commercial success stories. However, mobile operators remain interested in promoting the service as it can support customer acquisition and retention, and can be used to promote high value “flat-rate packages.” Research firm Arthur D. Little’s new report, “Mobile TV — Tuning in or switching off?” finds that despite the slow uptake, consortia such as China Satellite Broadcasting Corporation and Satellite2mobile, based in Dubai, have advanced plans to launch next generation hybrid satellite/terrestrial mobile TV networks. It is now expected that the number of broadcast mobile TV subscribers will increase to 140 million users by 2011.
Wi-Fi for a historic city
The City of Venice, Italy, has launched its first wireless broadband network. The Tropos-based wireless network provides public Internet access and “digital citizenship” to residents and local businesses; access for tourists for local information and activities; and will help the city modernize services.
“The fast Wi-Fi, between 20 and 100 megabytes, will enable development of e-commerce, freeing the heart of the old city from unsightly antennas,” said Michele Vianello, vice mayor of Venice, who was also responsible for leading the project. “It should also provide a big competitive advantage for business.”
Wireless Internet access is available for free to residents, students and businesses of Venice. Tourists and visitors will be offered access to the network for 5 Euros a day through the Venice Connect website (http://www.veniceconnected.com/node/301). The service will enable tourists to have broader access to local information as they walk around the city or ride a gondola through the Grand Canal, increasing awareness of local goods and services. Currently, the network covers approximately 7 km along the Grand Canal and includes coverage at many of the popular piazzas and parks. Longer-term plans include extending the network to the Marco Polo International Airport to provide travelers with easy access to the Internet while they are in and around the airport.
Digital photo frames craze
In-Stat reports that the market for digital photo frames has taken off, particularly since prices dropped to affordable levels in the first half of 2009. However, due to difficult economic conditions and the trend to purchase digital photo frames as gifts pre-loaded with pictures, most units shipped still lack-advanced features such as wireless connectivity to the Internet. Nevertheless, wireless-enabled photo frames are a key growth driver as they will grow at twice the rate of overall digital photo frames in 2010. “Prices for connected frames will continue to decline, and as manufacturers educate consumers about these devices. The mass market will become more comfortable using the Internet services connected frames support,” said Stephanie Ethier, In-Stat analyst. “Applications such as sharing and downloading pictures over the Internet, as well as streaming Internet radio and video from online sites like YouTube, are expected to be primary drivers.” In-Stat found that worldwide unit shipments of all digital photo frames are expected to reach 50 million by 2013. Consumers report that integrated wireless connectivity will be a desired feature on their next digital photo frame purchase. The bill of materials for a wireless 8-inch digital photo frame will fall below $36 by 2013; the LCD, the wireless module and the enclosure are the dominant cost items. The Samsung frame pictured here retails for $129, so there’s still a good amount of room for price improvement.
Updated outlook gloomier
n Global purchases of IT goods and services by businesses and governments in 2009 are projected to decline by 10.6 percent when measured in US dollars, compared with the three percent decrease previously projected at the beginning of the year by Forrester Research, Inc. The latest quarterly update of Forrester’s IT spending outlook also projects a 5.1 percent decline in the US annual IT market, compared with the 3.1 percent decrease previously forecast. New data about large declines in business technology investment during the first quarter prompted Forrester to update its forecasts for technology spending. On a positive note, Forrester still expects growth in US IT investment to resume in Q4 2009, and 2010 is expected to bring a revival of IT buying in other markets as well.
“While Q1 2009 saw a scary drop in purchases in the US tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner,” said Andrew Bartels, Forrester Research vice president and principal analyst. “The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in US tech purchases, which we expect to start recovering in Q4 as businesses realize that they overreacted in the first quarter. We also expect that tech markets in Europe and Asia will start to recover in the first half of 2010.” Looking at the 2009 global IT spending outlook by sector, Forrester anticipates lower investment than previously expected across all categories. Forrester believes purchases of computer equipment to be down by 13.5 percent, communications equipment buying to drop by 12.4 percent, software spending to decline by 8.2 percent, and purchases of IT consulting and outsourcing services to be 8.6 percent lower.
Open source Smartphones
The number of Smartphones shipped with open source operating systems (OS) will increase from 106 million this year to 223 million by 2014 according to a new report from telecom consultants Juniper Research. The Open Source OS research found that operating systems and applications are playing an increasingly important role in the differentiation of new smartphones and are a key purchase factor for consumers. The last three years has seen a revolution in the OS market with market leader Symbian moving to open source and Apple leading the way in the distribution of applications through their innovative, but now widely copied, AppStore approach. The move to open-source OS has also encouraged developers to design many attractive applications. With over 60 percent of the OS market now based on open-source, and a sizeable pool of software design talent out there, a massive opportunity is presented for innovation.
However, the real key is not whether the OS is open-source, but whether it’s easy for a developer to design an application for it and make money from that effort. The combined changes of Apple’s open route to the market and LiMo, OHA and Symbian’s open-source OS approach have generated a tidal wave-like effect, which even the economic downturn has been unable to reverse.
There is a clear warning for device manufacturers — the choice of OS is now critical and market share will, to a large extent, follow application development. The unexpected side effect however will be a shift in the balance of power toward application developers and end users — they will begin to play the tune!