Four out of five cell phones to integrate GPS by end of 2011

EL SEGUNDO, USA: With cell phones increasingly becoming the nexus of the burgeoning markets for navigation and Location Based Services (LBS), the use of Global Positioning System (GPS) technology in such platforms is set to explode during the coming years, according to iSuppli Corp.

In the fourth quarter of 2011, 79.9 percent of cell phones shipped—amounting to 318.3 million units—will incorporate GPS functionality, up from 56.1 percent in the first quarter of 2009—or 187.8 million units—iSuppli predicts.

The figure presents iSuppli’s forecast of penetration of GPS functionality in mobile phones.Source: iSuppli, USA.

The adoption of GPS in mobile handsets is being driven by smart phones.

“The smart phone is the key product driving the technology industry today—and social networking services and applications spurred by GPS-related features are critical elements in the smart phone market today,” said Dr. Jagdish Rebello, director and principal analyst for iSuppli.

“This is illustrated by Google Inc.’s decision to make turn-by-turn navigation, LBS and mobile ads the central features in its bid to take on Apple in the smart phone market, and make up the central pillars of its strategy to increasingly monetize mobile search.”

Smart phones are taking over from Portable Navigation Devices (PNDs) as the major platform for navigation. By 2014, usage of navigation-enabled smart phones will exceed that of PNDs.

Furthermore, the smart phone is likely to generate many innovative LBS apps in the next five years. Apple’s iPhone already has more than 6,000 LBS apps available.
Meanwhile, both Apple and Google are focusing on mobile advertising as a key source of revenue used in association with LBS.

Apple’s new iAd platform, part of the company’s updated iPhone OS 4 operating system, enables the embedding of advertisements into applications, allowing iPhone users to interact with the ad without leaving the app. Similarly, Google in May acquired leading mobile ad provider AdMob.

Nonetheless, Apple recently upped the ante in the smart phone GPS segment with the addition of a gyroscope to its latest iPhone model. Used in combination with GPS, an accelerometer, a compass and the gyroscope can be used for in indoor navigation with floor accuracy.

iSuppli also sees an increased penetration of embedded GPS in a range of consumer and compute electronic devices by 2014. For example, iSuppli estimates that 18 percent of laptops and 42 percent of portable handheld video game players will have embedded GPS in 2014.

Altogether, the boom in mobile handset navigation will benefit suppliers of GPS semiconductors such as Texas Instruments, Broadcom Corp., Infineon Technologies and CSR.

GPS is not the only embedded connectivity technology that will be increasingly embedded in consumer and compute electronics devices. With the ratification of the Bluetooth 4.0 standard supporting the Bluetooth Low Energy profile, iSuppli expects increased penetration of Bluetooth in wireless mice, keypads and other interface devices for the mobile and desktop market—an area that has been dominated by proprietary technologies.

Source: iSuppli, USA.

iPhone 4 antenna issue: Sending mixed signals

FRAMINGHAM, USA: IDC fielded a brief directional survey done in collaboration with the IDG TechPanel that seeks to provide insight into the impact the technical problems with the Apple iPhone 4 will have on the buying behavior of those in the market for a new phone.

The survey indicates that 66 percent of current iPhone owners are delaying their purchase of the iPhone 4, thus lengthening the normal upgrade cycle associated with the release of a new device. However, the antenna issues do not seem to be impacting the 74 percent of non-iPhone owners who indicated that they are not delaying their purchase plans.

According to Apple CEO Steve Jobs, the iPhone 4 is the most successful product in the company's history. The iPhone 4 introduced a variety of new capabilities into an already iconic product line that has altered the design and use of the mobile phone in a significant and profound manner.

However, recently uncovered problems related to the design of the device's antenna have attracted unwelcome criticism from the press as well as the public at large. The iPhone 4 has been plagued by a variety of issues, including signal attenuation that results in dropped calls, especially in urban locations such as San Francisco and New York City. Some of these problems have been attributed to network capacity challenges that AT&T, Apple's exclusive carrier partner, has been working to address.

As part of an effort to improve the iPhone's reception capabilities, the iPhone 4 introduced a new antenna design that was both functional and aesthetically pleasing. Instead of placing the antenna inside the device shell, the iPhone 4's antenna was built into a metal band that surrounded the exterior edge of the phone.

Unfortunately, when the phone was held in a manner that covered the lower left hand corner of exterior edge, signal strength deteriorated resulting in a dropped call.

The antenna design flaw was uncovered after the iPhone 4's initial introduction, which, as referenced above, was nothing short of a success. Even with a loyal fan-base and reviews that were unanimously positive, the effect of the technical problem on those who are looking to purchase a new phone, particularly the iPhone is largely unknown.

"We are pleased that Apple is working with its customers to offset the reception issues related to the iPhone 4," noted William Stofega, program director, Mobile Device Technology and Trends at IDC. "It will be interesting to monitor the effect of Apple's response to the antenna problem over the next several months."

Starhome and the world of managed services

ZURICH, SWITZERLAND: Starhome, the leading provider and acknowledged driving force of roaming services for mobile network operators, has been watching the proliferation of managed services and the impact the trend is having on the roaming industry.

The global economic downturn has left network operators looking for ways to reduce CAPEX and OPEX without compromising service for their subscribers. Turning to managed services is a way for operators to maintain the highest quality of service and, at the same time, reduce overhead.

In line with recent trends and to accommodate operator requirements, Starhome announced today that it is unbundling its managed service offering to allow mobile operators to select a combination of managed services most suited to their needs. Starhome is currently the only roaming solutions provider to offer managed services.

The company utilizes its high-capacity, privately held global redundant IP network to monitor global services, as well as hardware, software and roaming traffic at the operator site.

Starhome’s new services offering covers a range of managed services including;
Monitoring: An integrated worldwide monitoring system that comprises visual and graphical status display, events, alarms, analysis of CDRs and counters, weekly analysis of traffic and revenue assurance analysis reports.

Roaming Information Updates: A dedicated team and an automated solution that updates the operator’s database with essential information to maximize Starhome services.

Quality of Service (QoS) and Revenue Assurance: A dedicated team using the QoS tool, designed by Starhome, monitors the service level for every Starhome solution, including service contribution to the operator, traffic figure reports and irregular behavior patterns.

Provisioning: Fully pre-configured and updated databases for quick deployment, relieving the operator of responsibility for creating and maintaining time consuming and complex up-to-date roaming- and service-related databases.

Starhome’s VP of Customer Service and Support, Nir Zohar, explained: “Starhome’s Managed Services are the keys to providing high-value, cutting-edge services that are essential for mission-critical operations. Our managed service reduces the total cost of ownership by offering one back-office solution for several services and ensures single integration of multiple network elements and protocols, making a significant difference for our customers.”

Starhome’s exclusive Global Services Operations Centers (GSOC) routinely performs preventative maintenance to ensure optimum network conditions. Management systems monitor critical system parameters, and a database provides immediate information and backup.

Remote computers on the Starhome network can be mirrored on a local workstation to provide instant on-line maintenance, support, and software upgrades for any remote network site, as well as to facilitate remote software and hardware diagnostics.

Smartphone, 3G growth creates mobile banking opportunity in Latin America

CAMBRIDGE, USA: The growth of smartphones in Latin America will provide the perfect ecosystem for the growth of mobile banking, enabling operators to offer new value-added services to their clients, reduce churn, and increase revenues, according to a new report from Pyramid Research.

Smartphones and 3G to Create Mobile Banking Opportunity for Network Operators analyzes the opportunities that mobile banking will create for mobile operators and banks in Latin America.

It also examines some business models under which mobile banking can develop: Banks going it alone and hybrid models where banks and operators work side by side. Lastly, the report also warns about the dangers of poor regulation for the future of mobile banking.

Latin America will witness a sizable growth in 3G+ networks and the broad use of smartphones. "8.6 percent of all the new units sold in Latin America in 2010 will be smartphones," says David Noe, Senior Analyst at Pyramid Research.

"However, this percentage will grow dramatically during the forecast period; our estimation is that almost one-third (32.2 percent) of the new handhelds sold by 2014 in Latin America will be smartphones," Noe adds.

Pyramid Research also forecasts that mobile banking in Latin America will grow among middle-to-higher income, technologically savvy users with more advanced handhelds.

"These conditions will create new business opportunities for mobile network operators (MNO) and banks, which will be able to offer mobile banking services to their clients," says Noe.

The increased use of smartphones will give greater access to better mobile banking services, and the banks will not let the opportunity pass. But it is important that banks and operators do not apply a one-size-fits-all approach when they develop their mobile banking products. "The needs, mobile phone capabilities and education levels of end users vary wildly," indicates Noe.

4G mobile payment ecosystem starts to take shape

NEW YORK, USA: Mobile payment systems present unique growth opportunities for handset manufacturers and mobile operators, and these opportunities should increase as operators deploy 4G networks and services, according to the latest report from the Heavy Reading 4G/LTE Insider, a paid research service of TechWeb's Light Reading.

Mobile Payments: Opportunity in the Run-Up to 4G evaluates the current state of mobile payment systems in terms of adoption rate, applications they are supporting worldwide, and the major components of emerging mobile payment system architectures.

It identifies and analyzes companies that are offering various technologies and/or platforms targeting customers that want to implement a "mobile payment" system and the components that enable such a system. The report also evaluates those companies' current offerings and discusses the challenges they face as they pursue opportunities as mobile networks progress toward 4G implementation.

"The idea of mobile payment systems began taking shape in the early 2000s, primarily overseas in developing African and southeast Asian economies," notes Aileen Arcilla, research analyst with Heavy Reading 4G/LTE Insider and author of the report. "Since those first deployments, other developments have made operators consider the growth opportunities of supporting mobile payments."

Despite the overall success of mobile services, handset manufacturers, mobile network operators (MNOs), and mobile virtual network operators (MVNOs) face challenges in finding ways to take advantage of other growth opportunities, Arcilla says.

"MNOs and MVNOs must determine how to sustain their businesses in light of declining rates for consumer voice and data services, while handset manufacturers seek to capitalize on the next great feature to increase their share in a market driven by volume sales," she adds. "The emergence of mobile payment systems presents a significant growth opportunity."

Key findings of Mobile Payments: Opportunity in the Run-Up to 4G include:
* The mobile payment system opportunity is trending upward, but the vendor space remains fragmented and diverse.
* Numerous ways to enable a mobile payment system have emerged, reflecting the lack of platform/solution standardization.
* Credit card companies struggle to determine their "mobile payment system strategies" as alternative payment mechanisms emerge that limit/excludes the need for their role.
* Financial institutions can greatly benefit from mobile payment systems from a cost perspective but will need to work on maintaining their customer base.
* Mobile network operators view the mobile payment system opportunity as a revenue generator in light of declining rates for voice and data traffic.

Bluetooth high speed and Wi-Fi Direct - winning the high-speed war

WELLINGBOROUGH, UK: Previously seen as complementary technologies, the development of Bluetooth high speed and Wi-Fi Direct brings them head-to-head for the first time. IMS Research asks: Is there room for both, or will one win?

Bluetooth high speed technology combines Bluetooth with 802.11 to increase data throughput, upgrading the well-known Bluetooth interface to download large files, synchronize music between two devices, or transfer video quickly. It has the advantage that classic Bluetooth has a huge installed base mostly in mobile handsets.

Wi-Fi Direct is a set of software protocols that allows devices enabled for Wi-Fi to communicate without prior setup, or a Wi-Fi hot spot. Wi-Fi Direct will exploit WLAN’s installed base, largely of PCs.

For Wi-Fi Direct, you simply upgrade the firmware of a single radio; Bluetooth high speed requires two radios (Bluetooth and 802.11). Wi-Fi is not naturally a peer-to-peer technology, and needs link set-up, authorization, pairing, and system discovery.

Bluetooth provides them; adding 802.11 just provides a faster link. Bluetooth high speed products have already been announced; Wi-Fi Direct is expected to be deployed in 2011. It’s currently tough to choose which technology to back.

Filomena Berardi, Connectivity Market Analyst at IMS Research commented: “Initially, Bluetooth high speed and Wi-Fi Direct are likely to co-exist in specific products. However, the faster throughput of Wi-Fi Direct will likely make it the winner long-term.”

Bluetooth will not suddenly disappear! Bluetooth low energy will mean that it will remain important in handsets and address markets such as medical, fitness, automotive, and others, that require a low power connection.

Wi-Fi is entering more consumer devices; the upgrade to Wi-Fi Direct will benefit them. The recent announcement made by the Wi-Fi and WiGig Alliance, to create the next Wi-Fi generation, suggests that Wi-Fi will be big in consumer devices. The Bluetooth SIG is expected to create a group to study a future gigabit-class Bluetooth.

For Korean handset players to beat global players

MELBOURNE, AUSTRALIA: Korean handset players’ global competitiveness has improved dramatically, underpinned by their understanding of consumer demand and their flexible yet cost-effective multi-platform strategies.

“Strong design capabilities have allowed vendors to exploit the trend to focus design on intangible factors, even in lower-tier segments”, said William Lee, Senior Analyst based in Seoul. “This has been reinforced by technical leadership in new hardware elements such as high-pixel cameras, multimedia features, and screen size. And also Samsung and LGE were first to market with touch-screen handsets, though it was the iPhone that initiated mass take-up.”

Moreover, the adoption of a multi-platform strategy by the Korean operators has made it easier to collaborate with operators and other members of the ecosystem. At the same time, collaboration with component manufacturers has allowed vendors to keep the costs of a multi-platform strategy down.

“The booming Smartphone market could be an opportunity for SEC and LGE, and Niche market has expanded due to Apple being held in check by operators but there are some critical challenges Korean handset manufacturer need to overcome,” comments Lee.

William Lee lists the challenges:

Adherence to the multi-platform strategy
Korean company and global player Telcos are putting added emphasis on the model lineup built on the Android platform to rival iPhone. Obviously, the expanded base of Android and its potential for growth justify the speculation that its demand will surpass that of iPhone within the next five years.

Note, however, that users who have been familiar with the model based on other platforms since time immemorial are unlikely to rush into other platforms. In other words, since enthusiasts of each platform - Symbian, Windows mobile, Blackberry, Iphone, Android - will help capture a considerable market share to some degree, there is a need to develop the model based on Windows mobile other than Android and the model linkable with several killer apps, albeit based on the feature phone platform.
(There are a plethora of applications on the Smart phone, but not many killer apps are used very often during the lifetime of the handset.)

Realization of various portfolios of low-end smartphone model lineup
Just as various product portfolios were built by usage pattern or spectrum of user on the feature phone before the smart phone market began to expand fast, so will the usage pattern of the smart phone and user spectrum be diversified even in the low-end sector of the smart phone; as a result, the product portfolio by price (specifically in the low-end sector) must be built in various ways. For that, each target user segment must be approached on the basis of lightweight feature through selection and concentration from the standpoint of SW and HW and from the perspective of cost.

Product development and user interfaces
In the feature phone segment, SEC and LGE have improved their interface scheme. However, in the high-end segment (including smartphones) their interfaces are still perceived to lack consistency and intuitiveness. The recently launched bada OS platform by SEC is also perceived in this way.

Even though bada meets high-tier specifications in respect to support for app stores, GPS, and even Flash, it has been criticized for its inconsistent and inconvenient graphic user interface. SEC and LGE must both address this issue in order to make globally competitive products.

Strategic partnership with operators and platform providers
As the value chain in the mobile ecosystem has changed, SEC and LGE need to consolidate their existing partnerships and expand into new markets. They must not be outmaneuvered by companies such as Apple, which has set up a new role as application provider in the mobile ecosystem, and new mobile business stakeholders such as Google and Nokia, which are moving beyond their traditional business into handsets. And co-development of B2B apps through partnership with corporate solution providers is worth consideration.

Role in the mobile ecosystem
SEC and LGE need to develop killer mobile services featured only for SEC or LG which have competitive and similar points with RIM’s e-mail and Apple’s Appstore.

In order to build their own product identity with development of killer mobile service on the device based on collaborative partnership with other stakeholders such as application provider, contents provider etc., OVUM believes that SEC and LGE should give attention to secure their initiative, consolidating and distributing each role of business stake holders in the mobile ecosystem. That is, in order not to remain as a follower, they need to create a business model with an innovative strategy.