All articles from: December, 2009

Google’s robotic dance

Google's robotic dance

Android has been closely watched over 2009, seen by some to represent a clear threat to both the establishment bulk of Symbian and the new-world order of Apple.

As 2009 drew to a close, Motorola’s latest phone, the Droid (sold as the Milestone in Europe), was being heralded in some quarters as the saviour of the US vendor’s malingering handset unit. Based, as the name suggests, on the Google-owned Android operating system, the Droid, if it fulfils the potential some suggest it has for its manufacturer, will surely gain a status to match iconic predecessors like the Startac and Razr.

The suggestion that the Android operating system could be about to contribute to a turnaround in the fortunes of a fallen giant like Motorola speaks volumes about the progress the platform has made in 2009. This was a year, after all, which began with just one Android handset in the market-the HTC unit dubbed the Dream, nicknamed the Googlephone and marketed by T-Mobile as the G1.

In mid-November, at the time of writing, there are more than 20 Android handsets either in the market or in the offing, with a Christmas rush of models still expected to come. As well as HTC and Motorola, the likes of Huawei, Samsung, Acer, LG, Dell, Sony Ericsson and even Philips are name-checked in the lists of products that are commercially available or anticipated by year-end.

That represents substantial growth in terms of product portfolio over the year-albeit from the smallest of beginnings. So for Android these remains very early days indeed. Gartner analyst Roberta Cozza says the firm is predicting that Android will gain no more than five per cent of the smartphone market for 2009. In the third quarter of this year, she says, the platform’s share of this market was 3.5 per cent, which equates to around 1.5 million sales (Gartner does not track shipments into the channel, only sales to consumers).

But in the slightly longer term, Cozza says, Gartner’s forecast for the Android platform is “very positive”. She continues: “From 2010 we should start to see all the vendors that have picked Android up offering more devices; certainly the likes of Motorola and Sony Ericsson are saying this is what they are going to do. And, if we see lower end units it will become more mainstream. We’ve published a prediction that sees Android being the second most popular platform, behind Symbian, in 2012.”

One of Android’s successes has been the widespread backing it has gained, with carriers and handset vendors alike populating the Open Handset Alliance that was created to oversee the development of the platform and ecosystem. In October US carrier Verizon struck an agreement with Google that will see the two firms collaborate on bespoke Android handsets and applications, sharing the marketing distribution and service development workloads. T-Mobile has also nailed its colours to the Android mast, leading the way to market with HTC’s first Android product and following up with others.

2009 has seen further iterations of the operating system, with version 2.0-known as Éclair-released in November. But, while Google remains effectively in charge of the technical roadmap for the platform, one of the most substantial challenges that awaits Android is the level of fragmentation within its own community, says Gartner’s Cozza.

“The problem is that Google has a hands-off approach in the marketing of Android and prefers to leave it to each manufacturer to do their own thing. I think that this could backfire, because this will not improve the awareness among consumers of the Android platform and ecosystem. Consumers are attracted by a single ecosystem like you have with Apple and there’s a danger that the consumer will see Android as a number of different environments,” she says.

Cozza’s comments call forth one of the central debates within the handset sector at the moment: Are communities better at developing product than individual companies? The success of Apple’s iPhone and its wider ecosystem, arguably the most closely managed example the industry has to offer, seems to find in favour of autocracy. The sluggish pace of development at the Limo foundation, meanwhile, could be used to argue against the selection of true community development models.

Android sits somewhere in between. But while the backing of some of the industry’s big names is a boon for Android, there could indeed be consequences if Google doesn’t keep those names focused. Samsung is a useful example. While Taiwanese vendor HTC might have played the role of Android’s standard bearer-and although it is now making concerted efforts to push its own brand in the market, launching television advertising campaigns, among other strategies-it is simply not a tier one handset brand.

Samsung, on the other hand, is a heavy hitter, with a very large installed user base. Its presence in the Android camp is important. But, although the Korean vendor looks set to bring an end to its days of OS promiscuity, it will continue to develop handsets for Windows Mobile and its own new operating system, Bada. Should Android fail to capture the user’s enthusiasm because there is no unified marketing strategy, the likes of Samsung may not be particularly motivated to continue the push on their own.

“There are some really great location-based applications in Android Market [the Android application store],” says Cozza, by way of a warning. “But nobody really knows about them.”

The mass market will prove increasingly crucial to Android’s success, and here it will face stiff competition from Symbian and from vendors’ proprietary operating systems like Bada. HTC, continuing to break new ground for Android, recently released the Tattoo, targeted more a the mid than the top tier and Android will require more product in this range to get those all-important volumes up.

Some reluctance from Google to get truly stuck into the handset market might be understood. But in November the unveiling of the firm’s own operating system, Chrome, gave observers yet more reason to question the firm’s commitment to the success of Android. Since Android has been mooted as an operating system for crossover devices like netbooks and smartbooks, the presence of another OS from the same company-and one which, it has been said, will not necessarily be restricted to the PC/laptop market-does seem a little strange.

The first proof of concept the industry required from Android was the arrival of handsets from a range of manufacturers, and 2009 has seen this delivered. Now those handsets need to start moving in volume and the end user community has to be persuaded that they are worthy of selection. The handsets will likely be heavily subsidised in most markets, so cost is not the issue.

The increasing popularity of application-led mobile data usage means that consumers are now selecting handsets with the ecosystem in mind as well as the product itself. If the Android ecosystem continues to be given over to the vendors designing the handsets, and skinning them individually with their own user interfaces (HTC’s Sense, Motorola’s Blur), then perhaps there is a risk, as Cozza suggests, that the ecosystem may whither on the vine. Or that Android may simply not be a platform ecosystem of the kind that we have come to know.

A push from carriers like Verizon could help to keep the platform prominent, of course but, in the end, Google’s feelings for the Android platform will play a more decisive role in its future success. What those feelings are remains unclear, given the firm’s renowned taciturnity. One thing seems evident, though. The opportunity is there for Android to become one of the most widespread mobile platforms in the market; an opportunity that, at the start of the year, wasn’t necessarily so apparent.

Categorised as: Features

2010: Predictions for the year ahead

The telecoms industry is beginning to see signs of economic recovery and can look forward to sustained, slow revenue growth in 2010, according to analyst research released by Informa Telecoms & Media.

However, the dominance of the internet and the transition from hardware to software and services means that the landscape is becoming increasingly competitive and companies will need to shift their strategies and implement cost cutting measures to survive these new market dynamics, says Mark Newman, Informa’s chief research officer.

Newman identified ten key trends that will shape the telecoms and media industry in 2010:

Widgets

Widgets will become the key to harnessing power of the mobile web. All device vendors now see potential opportunities in offering widgets since these applications enable them to enhance the value of their devices and complement revenues from handset sales. It is becoming clear that, in developed markets, handset vendors can no longer rely on mobile phone sales to sustain growth. They will have to look at other opportunities, such as playing a role in enabling content creation and offering services through application stores, the internet, and ‘widgetization’.

Fixed broadband

Fixed broadband operators will experiment with new business models in a bid to end the “arms race” of increasing speeds and declining prices. The recent history of broadband in mature markets has been characterised by a sort of broadband “arms race” of increasing speeds and declining prices.Operators must now face up to the need to grow revenues in saturated markets. The major effect of declining prices and increasing bandwidth has been the emergence of mass markets for the consumption of on-line video and music, which other players are now better placed to profit from.

Pay TV

North American pay TV revenues will peak in 2010 and global pay TV subscription revenues will start to decline from 2012 as operators convert subscribers to triple-play bundles. Western European pay TV revenues will do likewise in 2011.

Functional separation

Mobile operators will make small steps towards a de facto functional separation in order to position themselves to address the demand for third party connected devices and applications. Unless operators give full autonomy to wholesale units, Informa believes they will be too slow to succeed in shifting internal mindsets and retail businesses need to be seen as just another customer of the network operations, albeit a so-called “friend with privileges”. Only in that way does the analyst think operators will be able to fully address the undeniable and sizeable opportunities that exist on a wholesale level.

LTE

Mobile LTE commercial launches will slip to 2013/2014 but LTE’s role as a provider of rural broadband connectivity will gain momentum. 2010 will be a year of further LTE trials but progress towards commercial services is likely to be slow. Informa expects only a handful of cautious early forays from the likes of Verizon and NTT DoCoMo towards the end of the year. Mobile LTE commercial launches in GSM-only markets will slip back to 2013-2014 as HSPA+ comes into the market.

IPTV

Operators will embrace ‘over-the-top’ TV and open internet apps. Following years of promise but little activity, there are now an increasing number of ways that content providers will be able to reach the TV. These include open specifications such as Canvas and HBBTV, via connected devices such as the Xbox 360 and via initiatives within the CE industry, such as Yahoo’s Connected TV initiative. Many of these initiatives should be commercially launched by 2011, if not 2010.

App stores

Operator app stores will struggle to compete with handset-manufacturer initiatives and Android will emerge as a worthy competitor to the iPhone. Operators will be the ones that most struggle to make a success of their application stores, unable in most cases to compete with Apple and other vendors in global reach, brand coolness and agility. Their biggest chance of retaining a significant role in the mobile applications value chain will be as billing enablers, since most handset/OS vendors realize they need carrier billing to get downloads going on their app stores. Beyond Apple, Google will be the vendor to make the greatest headway with its Android Market, possibly matching or even exceeding the App Store’s success.

Network sharing

Network sharing and outsourcing will gain in popularity as the drive towards cost-control intensifies but the network itself will remain a key point of differentiation for operators. Expect further infrastructure sharing announcements during 2010 as operators attempt to extend coverage and reduce costs. Both network sharing and outsourcing will continue to gain momentum as mobile operators seek to reduce their capex and opex burden. Each of these individually is already an established trend but the industry can also expect to see more variations on a theme where the two approaches are combined.

Address books

Enhanced address books will become a focus for mobile operators and handset manufacturers. Mobile operators and handset vendors are poised to follow Vodafone, T-Mobile and Motorola in enabling enhanced-address-book services for mobile subscribers. These will be made available by the mobile operators as an application that is pre-loaded onto the device or downloaded over-the-air, and by the handset vendors as a native feature (typically as part of the Rich Communications Suite project). Mobile operators will launch enhanced address books as a focal point around which to aggregate a range of community, messaging and content services and seize back the initiative from online brands.

HDTV

HDTV will reach tipping point but platforms still need to increase channels to win over subscribers. HDTV is finally taking off, but platforms need to ensure that they have a critical mass of channels to guarantee its success. For example, BSkyB offers 35 HD channels, and the service has enjoyed successful take-up. Other countries are increasing their HD channel choice, but still need to win over subscribers. Providing only a handful of HD channels is not enough to make for a successful package.

Download a free copy of Informa’s Industry Outlook 2010 report

Categorised as: News

Stick and stones

In the great playground that is the mobile telecoms industry, Huawei has just pulled Ericsson’s hair and run away laughing. The two have been working on LTE projects in the run up to the Christmas holidays, this week announcing a commercial network apiece. On Wednesday, TeliaSonera, the Nordic-Baltic specialist, switched on an Ericsson-supplied LTE network in Stockholm and one from Huawei in Oslo.

Two days later and Huawei’s bragging to all and sundry about its superior performance. Thumb on nose and fingers waggling in Ericsson’s general direction, the Chinese vendor sent out the following message:

“Please find the media advisory below that Huawei in Oslo for TeliaSonera reached 96 Mbps, as compared to a rival network in Stockholm that recorded speeds of only 43-44 Mbps.” Oooohhh! The release quotes an interview with TeliaSonera’s CTO Lars Klasson in Swedish technology publication Ny Teknik. Klasson’s quotation somewhat takes the sting out of Huawei’s gloating.

“Ericsson’s network runs at 10MHz, while Huawei’s network in Oslo uses 20MHz.”

Pretty silly, really. Still, that’s not all that Huawei’s been ribbing Ericsson about, as the vendor also announced an LTE win this week with Telenor/Tele2 joint venture Net4Mobility on Ericsson’s domestic turf of Sweden. This one seems to have hit home, with Ericsson moved to issue a statement proclaiming its disappointment to have missed out on a deal with local customers. But, the firm said, it just couldn’t compete with the Chinese player on price.

“We are of course disappointed that we did not manage to reach an agreement with Net4Mobility, joint venture by Telenor and Tele2 in Sweden. We would very much liked to have delivered this LTE network in our home market.

In the negotiation process we went as low as we could in terms of price but it was not enough.”

And Huawei was also on the case here in the UK. Telefonica-owned O2 said this week that it had carried out a successful trial of LTE in the UK, pumping out a cell peak downlink rate of 150Mbps, while showcasing high definition video streaming, mobile gaming, high speed file transfer and video conferencing.

The trial is part of Telefonica’s far reaching pilot project announced in October. The European carrier is to roll out LTE test projects in six countries, with a view to selecting technology providers for its 4G deployments. The suppliers Telefónica has chosen so far are Alcatel-Lucent, Ericsson, Huawei, NEC, Nokia Siemens Networks and ZTE, all of which will start rolling out the equipment necessary for testing the technology during the coming months.

The project will take place over six months and will consist of field tests and the installation of base stations at Telefonica’s branded operations in Spain (Telefonica), the UK, Germany and the Czech Republic in Europe as O2, and Brazil and Argentina in Latin America as Telefonica Moviles.

In other news, Telefonica has set up an international M2M division that it hopes will enable it to gobble up substantial parts of a market that Gartner forecasts to be in the region of 200 million cellular modules by 2012.

Retail behemoth Tesco’s MVNO Tesco Mobile piggy-backs on the O2 network and the supermarket this week started offering the iPhone, at the lowest monthly contract price in the UK market. Users can have the phone for just £20/month on a year-long contract, but they’ve got to stump up more than ten times as much – £222 – to get the handset in the first place. And it’s not a fuel injected 3GS, either, it’s just the little 8GB 3G run-around.

If you want the latest model, then it’s a whopping £60/month tariff for 24 months. Hardly the kind of pricing you’d expect to appeal to a supermarket MVNO demographic. On this tariff you get the 32GB 3GS for £50 up front and you’ll be committing to a spend of £1,490. You’d have to be mental.

In other iPhone news Apple has overhauled the interface for its iTunes-based App Store platform, making it more graphically intensive. With over 100,000 apps now available in the store, the biggest problem developers face is discovery of their creations, a problem this new approach seeks to address.

Meanwhile, Google has confirmed the existence of a home grown Android-based device that is being tested within the company. In a blog posting, Mario Queiroz, vice president of product management at Google’s mobile division, said Google employees worldwide are testing “a device that combines innovative hardware from a partner with software that runs on Android”.

Queiroz said that the aim of the project is to establish a mobile lab, “to experiment with new mobile features and capabilities”, which actually makes it sound more like a software testing platform for Google’s in house Android-based developments and less like a bit of Google-branded hardware that might make its way into consumer hands.

In other handset news, Christmas came early for Research In Motion this week, with the news that the firm saw Q3 profits jump almost 60 per cent year on year to $628.4m. Revenue was up 41 per cent year on year to $3.92bn, with 82 per cent coming from handset sales, 14 per cent from service, two per cent from software and two per cent from other areas.

RIM has benefited from a push into the consumer market and the firm said that more than 80 per cent of its new customers were consumers rather than enterprise users. Two years ago corporate customers accounted for half of the firm’s users, it said. Today that number has dropped to less than 20 per cent. RIM sold more than ten million BlackBerry handsets, up from its previous record (in the second quarter) of 8.3 million units.

Unfortunately US firm Palm isn’t doing so well, but at least it’s trending in the right direction. Palm’s net loss for the three months to the end of November hit $81.9m, compared to a loss of $509m in the same period last year. Revenues, however, did slide to $78m, from $191m in the third quarter of 2008.

The problem, it seems, is that Palm isn’t shifting the units as fast as it needs to be, despite the high profile launches of its Pre and Pixi devices. The company shipped a total of 783,000 devices during the quarter, down five per cent sequentially, but up 41 per cent year on year, which actually suggests it’s doing something right with regard to its product line up.

Indeed, according to figures from Informa Telecoms & Media’s upcoming Future Mobile Handsets report, Palm is one of a handful of high-end players that are seriously threatening the volume market leaders like Nokia, Samsung, LG, Motorola and Sony Ericsson.

These challengers will continue to steal market share in 2010, with figures released Wednesday predicting that the market share of the four underdogs will jump to 35 per cent of all smartphones sold in 2009 from 32 per cent in 2008 and just 24 per cent in 2007.

It’s no secret that while sales in the mobile handset space in general are in decline, the smartphone segment is actually growing and has turned into the most profitable segment of the mobile handset market. Informa forecasts that volume sales of smartphones are to grow by 33.5 per cent year on year in 2009 and by 36 per cent in 2010 to account for 27 per cent of the total number of handsets sold in 2010.

Incidentally, smartphones will also represent over half (55 per cent) of the value of the total mobile handset market and almost two thirds (64 per cent) in terms of profitability.

Informa analyst Malik Kamal-Saadi said that key to the success of these new entrants and smaller players is the adoption of new operating systems that have been built from scratch and better reflect the realities of modern mobile device requirements. In addition, they are not burdened with the support of a long legacy of devices and content already in market.

“Volume market leaders have responded, with a multitude of me-too iPhones offering multi-touch and an enhanced internet experience but true innovation is still lacking from many incumbent OEMs’ portfolios,” Kamal-Saadi said. “Some players (Motorola, Sony-Ericsson, and Samsung) have responded by opting for Google’s Android as key OS to bring innovation to their smartphone portfolios.  These changes will completely transform the smartphone market landscape and could potentially lead to the emergence of new leaders in the mobile handsets market,” Kamal-Saadi added.

We’ll have to wait until 2010 to see how this pans out, because the Informer is off on his Christmas break now.

All the best to everyone, have a happy break and a peaceful and prosperous 2010.

Take care

The Informer

Categorised as: Week in Wireless

RIM shines; Palm getting better

RIM shines; Palm getting better

Canadian handset manufacturer RIM (Research In Motion) was on good form during the quarter for the three months to the end of November, notching up an increase in net profit from $396m in 2008 to $628m in 2009.

Third quarter revenues were also up 41 per cent year on year from $2.8bn to $3.9bn, split 82 per cent on devices, 14 per cent for service, 2 per cent for software and 2 per cent for other revenue.

During the quarter, RIM shipped around 10.1 million devices, including its 75 millionth BlackBerry. Around 4.4 million of these were net new additions to the BlackBerry network, with the total BlackBerry subscriber account base nudging 36 million at the end of November.

Analyst firm Informa Telecoms & Media notes that in the mobile handset space, volume market leaders like Nokia, Samsung, LG, Motorola and Sony Ericsson are being challenged by RIM, Apple, HTC and Palm, which are significantly eroding their market share with an assault in the smartphone market.

These challengers will continue to steal market share in 2010, with figures released Wednesday predicting that the market share of the four underdogs will jump to 35 per cent of all smartphones sold in 2009 from 32 per cent in 2008 and just 24 per cent in 2007.

Saying that, struggling US firm Palm isn’t doing so well, but at least its loss is moving in the right direction.

Palm’s net loss for the three months to the end of November hit $81.9m, compared to a loss of $509m in the same period last year. Revenues however did slide to $78m, from $191m in the third quarter of 2008.

The problem, it seems, is that Palm isn’t shifting the units as fast as it needs to be, despite the high profile launches of its Pre and Pixi devices. The company shipped a total of 783,000 devices during the quarter, down 5 per cent sequentially, but up 41 per cent year on year, which actually suggests it’s doing something right with regard to its product line up.

RIM

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Categorised as: News

Nokia taps up ST-Ericsson for TD-SCDMA chips

Nokia taps up ST-Ericsson for TD-SCDMA chips

Handset behemoth Nokia extended its relationship with chip shop ST-Ericsson on Friday, announcing a long term partnership over China’s homebrew TD-SCDMA platform.

The Finnish firm will use ST-Ericsson’s components in its Symbian-based devices for the Chinese 3G market.

ST-Ericsson’s Chinese subsidiary, T3G, has been working on TD-SCDMA for more than six years, while Nokia launched the 6788, its first Symbian based TD-SCDMA phone, in October.

The Symbian Foundation recently revealed to telecoms.com that it had a visit from a big delegation of top brass from China Mobile in September who signed an MOU on collaboration with the platform developer.

“The potential numbers in China are absolutely enormous and this gives China Mobile a degree of influence over what happens in their market, and they would like an open independent platform that is royalty free, open source and not controlled by anyone. And that’s what we are in the process of trying to create,” said John Forsyth, leadership team at the Symbian Foundation.

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Categorised as: News

Huawei wins Swedish LTE deal

Huawei wins Swedish LTE deal

Chinese equipment vendor Huawei was making lots of noise on Friday, after it was awarded the contract to build an LTE network in Sweden, beating local rival Ericsson.

Huawei will deploy kit for Net4Mobility, the joint venture owned by Tele2 and Telenor, through 2010.

The goal is that 99 per cent of the Swedish population will be able to access the new network before the end of 2013, starting with densely populated areas. The deployment also includes a provision to increase the number of 2G base stations for voice traffic in by 30-50 per cent, with enhanced indoor- and outdoor coverage across the country as a result.

In related news, Huawei’s been boasting that its test network in Oslo, for TeliaSonera, reached speeds of 96Mbps, compared to an Ericsson run network in Stockholm that recorded speeds of only 43-44Mbps. But the company even says that in Oslo, it had twice the spectrum (20MHz) available to it, when compared to Ericsson in Sweden (10MHz), explaining away the discrepancy and taking the bit out of its boast.

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GSM>3G Middle East Show Daily Day Two

GSM>3G Middle East Show Daily Day Two

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AfricaCom Show Daily 2009 Day One

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