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Showing posts from February, 2008

Newspaper Website Audience Segmentation

Scarborough Research released the results of a special analysis of newspaper website audience. The market study included a trend of newspaper website audiences among the top 50 U.S. local markets, as well as interviews with newspaper executives about their websites. Scarborough found that newspaper website audience is growing and is compensating for some of the declines in print readership. The special analysis, which examined data collected August 2004 - March 2007 for 88 newspapers, found that newspaper website audience coverage has grown 14 percent -- from 6.4 percent for the 12 months ending September 2005, to 7.3 percent for the 12 months ending March 2007. Overall, the increase in website audience is mitigating print audience losses by 28 percent. Scarborough interviewed select newspaper executives about their websites, and found several common themes for website success: a commitment to localism, developing unique and interactive content, and relentless cross-promotion. Local co...

Worldwide Digital TV Set-Top Box Upside

Worldwide sales of digital TV set-top boxes broke through the 100 million barrier for the first time in 2007, according to the latest research from the Strategy Analytics Connected Home Devices service. The market study found that sales reached 102.4 million units last year, an annual increase of 12 percent. IPTV's market share rose to 5.9 percent, compared to 3.6 percent in 2006. Cable's share also rose, to 36.2 percent, while satellite and terrestrial shares declined. For 2008 the report predicts a surge in demand for digital terrestrial set-top boxes, driven by the impending switch-off of analog broadcasting in the U.S. market. By 2012 annual global sales of all digital TV set-top boxes will reach nearly 200 million units. "We expect the Asia-Pacific region to overtake North America and Europe in 2008, accounting for a third of this year's 129 million sales," says Peter King, Director, Connected Home Devices. "Sales of digital terrestrial TV boxes in Eur...

Time Online Continues to Replace TV Use

If you have an Internet connection, then chances are you are spending much more time surfing the Web than watching a TV. A new IDC study of consumer online behavior found that the Internet is the medium on which online users spend the most time (32.7 hours/week). This is equivalent to almost half of the total time spent each week using all media (70.6 hours), almost twice as much time as spent watching television (16.4 hours), and more than eight times as much time as spent reading newspapers and magazines (3.9 hours). "The time spent using the Internet will continue to increase at the expense of television and, to a lesser extent, print media," said Karsten Weide, program director, Digital Media and Entertainment at IDC. "This suggests that advertising budgets will continue to be shifted out of television, newspapers, and magazines into Internet advertising." The data also show that consumers tend to use the media they grew up with. The older the respondents, the m...

Web 2.0 to Personalize Customer Experience

The inability of most telecom network operators to deploy robust subscriber information management platforms could put them at a serious marketplace disadvantage -- compared with next-generation service providers that are primed to attack the telecom services sector with Web 2.0 based technologies, according to the latest market study from Light Reading. "Network operators have a wealth of information about their subscribers, and as they broaden their next-generation service portfolios, they are in a position to collect even more information about subscribers' service preferences, usage, and transactions," says Caroline Chappell, research analyst with Light Reading. "But operators have a short window of opportunity to put in place a strategy and architecture for managing all the subscriber information they possess and using it to more fully capture their customers by personalizing the customer experience." As over-the-top communications services become more deep...

One Trillion Dollar Voice & SMS Advantage

According to Portio Research, forecasts predict that 2008 will be the year that the worldwide mobile phone industry becomes a one trillion dollar industry. For an industry to go from zero to 1 trillion in just 20 years is a staggering achievement, equal to a CAGR of almost 30 percent sustained for 20 years -- an achievement previously unequalled by any other industry at any time in human history. 2007 became the year to see worldwide mobile handset shipments exceed 1 billion for the first time, and as 2008 begins so the world also crosses the highly significant 50 percent mobile penetration point, and the industry enters a year where gross industry revenues are set to reach 1 trillion Dollars. This is truly an exciting time to be in the mobile and wireless industry. As mobile voice prices have declined and margins have come under intense pressure, network operators have been forced to look at non-voice services to win new customers and boost their profit margins. A wide variety of valu...

Mobile Phone Handset Online Retail Market

Respondents to Informa Telecoms & Media's "Mobile Distribution and Retail Industry Survey 2007" believe that online unit sales of mobile phone handsets will surge to 21 percent of total devices sales by 2012. The survey reveals the industry's burgeoning belief in online retail at the expense of operator and independent stores. Angela Stainthorpe, Research Analyst at Informa Telecoms & Media, says "Online retail for wireless is certainly only a nascent market but the tentative steps taken in 2007 will quickly become more confident. As broadband penetration increases and online shopping entrenches its place in the retail landscape, customer expectation and the cost benefits of online distribution will be difficult for the mobile industry to ignore." Informa Telecoms & Media forecasts the online handset retail market in 2012 to be worth over double its 2007 level. Europe will lead the online market, accounting for 47 percent of global online handset...

Broadband Multimedia Advertising Platforms

It certainly isn't going to be business as usual within the American advertising sector. New multimedia platforms in the U.S. will capture $12.6 billion in advertising revenue by 2012, according to the latest market study by Parks Associates. Broadband multimedia advertising, the focus of the expected Writers Guild of America resolution, will account for more than $6.6 billion of that total. Mobile infotainment services follow closely with more than $5 billion, and non-linear TV services like video-on-demand (VoD) and digital video recorders (DVR) will contribute more than $900 million in ad revenue for U.S. TV service providers. "The floodgate is open, and the deluge of ad spending to these new platforms is irreversible," says Harry Wang, Senior Analyst, Parks Associates. "There must be interest alignment among major stakeholders to avoid frictions like the Writers Guild strike that hinder content flow to these new platforms." According to the report, audience...

Available FireWire is Unused by Consumers

How people connect their computer to digital media recording and playing devices is evolving. The proliferation of digital interfaces on PCs in the past 10 years has led to specialization, as well as an increasing number of choices for consumers, according to the latest market study by In-Stat. USB has become a universal interface in the PC market, and 1394 or FireWire, DVI, and Bluetooth are all available in a large number of notebook and desktop PCs on the market today, the high-tech market research firm says. In order to gauge the popularity of these various interfaces, In-Stat conducted a survey of 2,200 technology early adopters about the interfaces they have on both their work and home PCs, and to what they connect with these interfaces. "Not surprisingly, USB is the most popular interface, and is connected to the greatest number of devices in both work and home environments," says Brian O'Rourke, In-Stat analyst. "1394 (FireWire) proved to be the next most pop...

Intro to Mobile Social Network Communities

Mobile Social Networking is already an established service in some regions of the world, but in 2008 and beyond new features are attracting larger numbers of users and permitting new business opportunities. Mobile Social Networking is now a global phenomenon with expansion in all directions. The following is a brief introduction to this worldwide phenomenon that takes mobile phone applications to the next level of engaging interactive communications. Informa Telecoms & Media has published a ground breaking report entitled "Mobile Social Networking: Communities and Content on the Move." The research concludes that the number of mobile social networking users exceeded 50 million, approximately 2.3 percent of the global mobile user population on December 31 2007. Some of these users were registered in multiple mobile communities, engaging with friends, having fun and sharing their passions with others. With only low investments from mobile network operators, the growth in us...

Online Media Continue Advertising Windfall

Advertising revenue continues to follow consumers online. As more and more people spend time on the Internet, companies are redistributing advertising dollars from traditional media to online media to follow this key trend. In its quarterly wrap-up report, IDC says total U.S. Internet ad spending in the fourth quarter of 2007 (4Q07) grew nearly 28 percent over the same quarter in 2006 to $7.3 billion. For the full year 2007, online ad revenue grew 27 percent year over year to $25.5 billion. IDC research also found that Google's net U.S. market share declined for the first time in two years due to slower growth in domestic fourth quarter sales. The market leader's net U.S. Internet advertising market share was down 0.5 percentage points to 23.7 percent last quarter compared to 3Q07. Google's estimated net U.S. Internet advertising sales (excluding the traffic acquisition costs they pay out to the partners in their networks) grew by a little more than 40 percent in 4Q07, but ...

Wireless Enterprise Solutions Gain Demand

A survey of IT managers in the UK, France and Germany has identified strong demand for wireless and mobile solutions from Small and Medium Businesses (SMB) to multi-national brands. Andrew Brown, Director of the Wireless Enterprise Strategies service, commented, "Spending on wireless solutions is expected to grow by 23 percent in the UK alone over the next two years, despite flat overall IT budgets in two-thirds of companies. In France and Germany, wireless spend per employee is expected to approach 100 Euros within 2 years." Wireless Security (23 percent) and Wireless Applications (18 percent) are the top solutions where increased spend is expected in the next few years. However, there is also a strong focus on in-building wireless infrastructure as an area for increased spend -- while remote device management is also on the radar screen with 8 percent planning increased wireless spend here in 2008. Other key findings from their study include: - After email (54 percent), ...

Few Users Adopt Converged Mobile Phone

I use a separate mobile phone and pocket PC, by choice. The conventional wisdom within the portable device industry is that consumers have a preference to use converged devices, meaning single devices that combine the functionality of previously separate mobile devices, reports In-Stat. But the idea that there will be wholesale adoption of a device that simply combines multiple devices is unrealistic -- according to the high-tech market research firm. A recent In-Stat survey of U.S. businesspeople shows that users tend to remain loyal to reliable current technology, and employers are reluctant to force the issue of convergence. "On the other hand, once a converged device proves to offer additional value and technological obstacles are addressed, adoption progresses relatively quickly," says Bill Hughes, In-Stat analyst. "The smartphone is a successful example of a converged device where a single device combines a PDA computing device and a mobile phone. In this case, the...

Online Video Growth Creates New Primetime

Nielsen Online announced the full release of their VideoCensus. Early findings reveal differences in how men and women consume video content and that online there is a new prime-time. "The growth projections for both online video consumption and video advertising revenue are phenomenal, and the market requires an innovative approach to measurement. The driving force behind the development of VideoCensus was the unanimous call from our clients to deliver the most relevant and accurate dataset possible," said Dave Osborn, vice president, video measurement and media products, Nielsen Online. "With this release, we've taken a huge step in addressing the market's need to harmonize panel- and server-based metrics and we are delighted by the accolades of major industry players who are supporting our forward thinking approach," he continued. Video streams at broadcast network TV Web sites were nearly two times more likely to be viewed by women age 18-34 than men, w...

In-Home Networked Consumer Electronics

A home communications network is slowly becoming a mainstream phenomenon. We are in the multimedia phase of home networking that has begun to blend in networked consumer electronics (CE) devices, or networked media devices, according to the latest market study by In-Stat. That said, the market has been trying to move past the early-adopter stage, but this has not been occurring very quickly, the high-tech market research firm says. Although In-Stat's consumer research shows that there has been progress, the majority of consumers still only use their home network for Internet sharing. "Improvement is still needed when it comes to consumer awareness of the new breed of PC and non-PC network-capable media devices (Media Center PCs, CE media servers, digital media adapters, digital media receivers or players)," says Joyce Putscher, In-Stat analyst. "To date, non-PC network-enabled stationary media devices have been dominated by game consoles. However, the vast majority ...

Differences in Online Video and TV Users

If you still believe that the term "mass media" has relevance in marketing, and that television viewership decline is a meaningless anomaly, then the following details regarding the fragmentation of the consumer marketplace is likely of no interest to you. Otherwise, read on. ComScore and Media Contacts showcased the results of a proprietary study of the online video audience at a Video Symposium in New York. The research was designed to understand the consumption habits and mindsets of Internet video users as they relate to online video, TV, and advertising and content across both media. The results revealed consumer segmentation differences in orders of magnitude -- the heaviest viewers (top 20 percent of viewers) averaged 841 minutes of online viewing per month, while moderate viewers (next 30 percent) averaged 77 minutes, and the lightest viewers (bottom 50 percent) watched just 6 minutes each. "The difference in consumption levels was astounding. The usage differen...

Predicting Semiconductor Industry Growth

The semiconductor industry has been experiencing relatively balanced growth over the past few years, and In-Stat anticipates that this will continue throughout their forecast period. In-Stat says there will be some variation in growth rates among the end-use segments in terms of semiconductor consumption, but they all will track close enough to the average that none can be said to be the driver in the sense that the computer and communications segments have been drivers in the not too distant past. In-Stat expects worldwide semiconductor revenue to grow by 2.4 percent in 2008 to $261.9 billion. The consumer segment will lead 2008 growth at 5.9 percent and the consumer and communications segments will gain share while the computer segment share declines over the forecast period. The computer segment, whose share has been trending downward since 2000, is expected to remain the largest segment by a wide margin, although by 2012 its share is forecast to be 41.8 percent -- well below the 50...

Move to Fixed Mobile Convergence via SIP

Operators are now rolling out converged services on fixed and mobile networks, converting trials to commercial deployments. 2008 will see another spate of trials, as femtocell technology begins to become available. The move to FMC infrastructure is a natural evolution for the mobile network as broadband services, including Voice over IP and other Session Initiation Protocol (SIP) services, begin to be deployed. Both Unlicensed Mobile Access (UMA) and SIP infrastructures are being deployed and dual use Wi-Fi and cellular devices will be joined by femtocells in 2008. According to a new ABI Research report, operators are fully aware of the increasing threat from mobile VoIP services and FMC will allow them to offer similar services and tariff packages. "As we move to the end of the decade, mobile networks will emerge with a flat all-IP architecture using 3GPP standards to deliver multimedia services and VoIP," says principal analyst Ian Cox. In the meantime operators want to off...

China's Mobile Multimedia Phone Users

M:Metrics announced the first large-scale study of mobile media consumption in China, the world's largest mobile phone market. According to the M:Metrics December Benchmark Survey, mobile entertainment is popular among the Chinese, with 34.8 percent reporting they listened to mobile music in the month, and 10 percent playing a downloaded mobile game. They also found that while Nokia has a substantial lead in terms of share of handset owners in China, at 30.9 percent, owners of Sony Ericsson handsets are a driving force in the mobile media sector. For example, Sony Ericsson device owners are 1.7 times more likely to send a photo message, and almost twice as likely to browse mobile Internet content compared with the market average. "While 34.8 percent of total mobile subscribers listened to music on their device, nearly 60 percent of Sony Ericsson handset owners consumed mobile music in December," said Seamus McAteer, senior analyst, M:Metrics. "Competing global handse...

Consumers Watch Ten Billion Videos Online

ComScore released its December 2007 report revealing that U.S. Internet users watched more than 10 billion videos online during the month, representing the single heaviest month for online video consumption since comScore initiated its tracking service. Top-ranked video property Google Sites saw substantial growth and extended its video market share gains, now accounting for nearly one out of every three videos viewed online. "December represented a considerably strong month for online video viewing," said Erin Hunter, comScore executive vice president of media and entertainment. "With the writer's strike keeping new TV episodes from reaching the airwaves, viewers have been seeking alternatives for fresh content. It appears that online video is stepping in to help fill that void." Google Sites once again ranked as the top U.S. video property in December with 3.3 billion videos viewed (32.6 percent share of videos), gaining 1.3 share points versus the previous m...

Alignment of Business Technology at SMBs

Looking broadly at the small and medium-sized business (SMB) technology market over the next 12–18 months, IDC expects a variety of evolutionary and even revolutionary changes that will drive opportunities on a worldwide and regional basis as broader economic issues complicate spending growth. Increasing alignment of technology, distribution, and customer will be a key trend throughout 2008. "A growing number of technology providers will invest time, talent, and money in the worldwide SMB market," said Raymond Boggs, vice president of SMB research at IDC. "Different regions offer different kinds of opportunities, but the concentrated focus on effective messaging, innovative products, and efficient distribution will be at the heart of vendor success across geographies." Among IDC's key predictions for 2008 are the following: - Worldwide IT spending growth among SMBs will vary considerably by regions and will reach just over 7 percent in 2008, a slower rate than i...

European Seniors Want Different Mobiles

The latest benchmark analysis from the Strategy Analytics Wireless Device Lab evaluates the physical and differentiated accessibility features desired by European wireless users over the age of 60 in Europe. The Nokia 2630 was preferred mostly due to its clear screen, clearly structured user interface, and strong brand pull through by seniors in Spain. Senior users in the UK prefer the UT Starcom Coupe because of its large keys, clear screen, and large fonts. Seniors in both countries rejected the Samsung Jitterbug even though it is targeted specifically at this segment and has the largest and clearest keys of the devices benchmarked. The overall large size and slightly dated industrial design proved to be strong negatives. "Differentiated accessibility and usability features resonate strongly with senior users in the UK and Spain", noted Christopher Dodge, User Experience Analyst at Strategy Analytics. "In the UK, seniors expressed strong interest in environmental sensi...

One Billion Mobile Phones Shipped Globally

By 2010 annual mobile handset shipments will have increased by almost 25 percent, reaching a figure in excess of 1.4 billion units worldwide -- according to a recent market study by Understanding & Solutions. Last year, over 1.1 billion units were shipped globally, with the majority of growth coming from emerging markets, particularly India and Africa, where the upsurge was pegged at more than 20 percent. "Despite a saturated subscriber base in Western Europe, the USA and Japan, we are still seeing growth in these regions," says David Sidebottom, a consultant with Understanding & Solutions. "In no small part, that's down to the mobile phone's role as a fashion accessory, with new handset designs and advanced features encouraging consumers to upgrade early. "Consequently, we're seeing a marked shift towards mid and high end handsets in developed regions, and the emergence of new form factors to stimulate the market. This has had a significant effe...

Global Market for Digital Satellite Pay TV

The Direct-to-Home (DTH) pay-TV market is expected to continue growing at about 7.6 percent annually in subscribers from 2006 to 2011, and new services such as high-definition (HD) TV will help increase revenue, according to an In-Stat market study. Rapid growth in the subscriber base will occur in certain less mature markets like Africa and India, where new DTH providers have or will begin service, the high-tech market research firm says. "In more mature markets, growth rates, while slower, remain positive -- being spurred forward by bundled and premium services such as HD," says Michael Inouye, In-Stat analyst. "HD is rapidly becoming a key differentiator in the U.S., and some Western European countries like the UK have exhibited strong growth potential for high definition -- 273 percent growth in HD subscribers from 3Q06 to 3Q07 for BSkyB in the UK." The research covers the global market for digital satellite pay TV. It provides forecasts for subscribers, average...

Growth in GPS-Enabled Mobile Handsets

Presently, most mobile handsets with integrated GPS are smartphones or high-end feature phones, with wholesale prices in the range of $250 to $500, according to the latest market study by ABI Research. However, chipset manufacturers now have solutions in place that will permit the integration of GPS in handsets at lower costs, and provide significant improvements in terms of accuracy, time-to-first-fix, and reception in indoor environments. As a result, the wholesale ASP (Average Selling Price) of GPS-enabled mobile handsets will fall under $200 by 2010. "Recent industry developments, such as the announcement by CSR and Samsung of lower costs for GPS modules for mobile devices, will ensure that prices for GPS-enabled handsets quickly come down," says ABI Research industry analyst Shailendra Pandey. "Further, in coming years, it will become more cost-effective for manufacturers to have GPS in a large proportion of devices, rather than offering it in fewer handsets; this w...

Large Enterprise IP Unified Communication

Approximately 54 percent of U.S. companies that have adopted IP communications have integrated it into their operations in a way that has changed business procedures and processes, according to the latest market study by In-Stat. However, adoption is still driven by traditional buying decision triggers, such as equipment end-of-life, lack of capacity, business partnerships, and internal IT initiatives, the high-tech market research firm says. "Contrary to popular belief, current deployment of UC applications, such as collaboration and unified messaging, are spread uniformly across businesses of all sizes," says Keith Nissen, In-Stat analyst. "Unified communication applications are not just for large enterprises." The research covers the market for unified communications. It provides a brief analysis of the business IP communication and unified communication adoption process. The document presents findings from an In-Stat survey of over 1,000 U.S. businesses in a wid...

Broadcast TV Could Reap Mobile Bonanza

Broadcast TV could reap an additional $2 billion in annual revenue by 2012 -- delivering content to mobile and handheld devices -- if an industry standard is adopted and technology deployed quickly, according to a market study commissioned by a National Association of Broadcasters (NAB). The NAB report concludes that the success of new mobile and handheld (M/H) DTV services in the U.S. will be maximized if an industry accepted Advanced Television Standards Committee standard for M/H DTV is released by early 2009 and universally adopted for M/H broadcasting. However, delaying adoption of the standard will dramatically impact the revenue potential for both local and network broadcasters in a negative way, the report concludes. The report, entitled "Study of the Impact of Multiple Systems for Mobile/Handheld Digital Television," was authored by experts from BIA Financial Network with support from Law and Economics Consulting Group (LECG). Assuming early adoption of a M/H standar...

Debate Over New Mobile WiMAX Offerings

From a mobile phone operator perspective, mobile WiMAX or 802.16e provides more of a service complement, than a competitive threat, according to the latest in-depth market study by In-Stat. The mobile standard for WiMAX, has been the subject of debate since its inception, the high-tech market research firm says. Mobile operators and vendors have disputed how this technology will impact their existing operations. The debate can be broken into two camps. "One camp led by select equipment vendors with no stake in WiMAX has taken an either/or approach to discussing mobile WiMAX," says Daryl Schoolar, In-Stat analyst. "Any gain by WiMAX comes at the expense of other 3G data technologies. In the other camp, infrastructure vendors like Alcatel-Lucent, Motorola, and Nokia Siemens see a world where multiple mobile wireless broadband technologies will co-exist. In-Stat believes that the latter camp's view will prevail." The In-Stat research covers the worldwide market for...

Mobile Internet Devices Adoption Increase

A new class of consumer electronics (CE) device is rapidly emerging, and according to a recent study by ABI Research, these Mobile Internet Devices (MIDs) will appeal -- whether as tools or toys -- to a wide variety of consumers. The ABI report forecasts these always-connected products to see a dramatic growth in popularity over the next five years, with worldwide shipments rising from under 3.5 million this year to nearly 90 million in 2012. Existing consumer electronics manufacturers, with their established retail channels, are logical candidates to be leaders in this market. "Not long ago, the idea of a portable device that was constantly connected to the Internet would have seemed science fiction," says ABI Research vice president Stan Schatt. "But today a multitude of Mobile Internet Devices aimed at a broad spectrum of consumers are populating a whole new product category. Our research identified eight classes of consumer who will find MIDs interesting for very dif...

Russia is Becoming an Internet Superpower

While the big news may be China's active participation in the global networked economy, there's yet another interesting storyline unfolding. By the end of 2008, Russia will be the second largest Internet market in Europe. eMarketer predicts that Russia will have more than 40 million Internet users by the end of the year. In Europe, only Germany will have a larger online population. Russia is projected to have nearly 43 percent of its population using the Web by 2012 -- up 72 percent from the 2007 level. "Russia, Poland and the other Eastern European countries are the growth drivers for Internet adoption in Europe," said Ben Macklin, senior analyst at eMarketer. The rapid increase in Internet adoption has apparently taken many researchers by surprise. Macklin said that although the Netherlands and the Scandinavian countries have reached Internet usage saturation within their populations, Central and Eastern Europe were the next growth markets to watch. "Telecommun...

Market Outlook for Digital Terrestrial TV

The worldwide DTT (Digital Terrestrial Television) receiver market will grow from 65 million units in 2007 to more than 350 million units in 2013, representing a compound annual growth rate of 32 percent. Approximately 85 percent of units shipped in 2007 support digital television and digital set-top box markets, while 15 percent comprises other consumer electronics or PC applications, according to ABI Research. DTT infrastructure was first established in Japan (ISDB) and Korea (T-DMB) -- and as a result, DTT receiver penetration in Japan is about 23 percent, while 34 percent of Korean households employ systems with DTT receivers. "By 2013, the DMB-T/H system in China will have about 100 million users," says Steve Wilson, principal analyst for ABI Research. "China's national DVB standard GB20600-2006, also known as DMB-T/H, supports both fixed and mobile television applications." The rollout of digital video broadcast has arrived in time for the 2008 Summer Olym...

Major Trends in U.S. Internet Brand Activity

ComScore studied the major trends in U.S. Internet activity in 2007, including top gaining properties and site categories, and core search market growth. The biggest winners in 2007 featured some of the top Internet brands, including Google, Facebook, Wikipedia and Craigslist. A study of the growth in visitors among the top 100 U.S. Internet properties revealed that 2007 was a strong year for several of the largest properties. Social networking giant Facebook.com reaped the benefits of opening registration to all users, jumping 81 percent versus December 2006 to 34.7 million visitors in December 2007. Wikipedia Sites gained 34 percent to reach nearly 52 million visitors, continuing its reign as the Web's most popular reference hub. Leading classified site Craigslist.org jumped 74 percent to 24.5 million visitors, while AT&T grew 27 percent to 30.2 million visitors boosted by its exclusive deal with Apple as carrier for the iPhone. Yellow Book Network jumped an impressive 137 p...

Carriers to Concede Mobile Games Market

According to a new market study, mobile gamers will soon begin migrating from the traditional carrier deck -- which refers broadly to the carrier maintained storefront on the handset -- to newer, more innovative channels. A new Parks Associates report finds mobile game revenue generated through carrier decks will decrease from 90 percent of the total U.S. mobile gaming revenue to 72 percent in the next five years. By 2012, off-deck channels and ad-supported or subsidized mobile gaming will account for 28 percent of the market. "Lack of competition has left most carrier decks with an uninspired user interface and poor merchandising environment, which contributed to the recent market stagnation," said Yuanzhe (Michael) Cai, Director of Broadband and Gaming, Parks Associates. Off-deck marketing and distribution, combined with new business models such as mobile game advertising, episodic content delivery, and micro-payments, will rekindle industry growth. Parks Associates reports...

FMC and Femtocell Reaches Anticlimax

The hype surrounding fixed-mobile convergence (FMC) and femtocells continues to grow, but it is likely that neither technology will live up to expectations, according to the latest study by In-Stat. There is much interest in fixed-mobile service (FMS) enabled by femtocells and FMC among consumers, with the promise of more convenience and lower costs, the high-tech market research firm says. Femtocells are micro-base stations designed for home use that support mobile connectivity over the broadband facility. FMC uses Wi-Fi-enabled routers and handsets to carry mobile calls over a broadband connection. "In-Stat believes that by 2010 the FMC and femtocell market segments will evolve to form a new fully-converged services market segment," says Keith Nissen, In-Stat analyst. Current unlicensed mobile access (UMA) and IMS-based FMC services, which emphasize cheap phone calling, will be marginalized. Likewise, operators that deploy femtocell-based services using the same cut-rate ca...

Smartphone Drives Apps Processor Growth

As the wireless handset market surpasses 1 billion units shipped per year, application processors are an increasingly important enabler of multimedia capabilities in high-end smartphones and feature phones. However, according to a recent study from ABI Research, this growing market will face several key challenges over the next several years. "Over the course of our forecast period, from 2007 to 2012, strong unit growth is expected to be offset by dropping unit prices," says ABI Research senior analyst Doug McEuen. "After significant increases during the next two years, the decline in unit prices will compress the application processor revenue to a flat growth rate." In later stages of market development, application processor unit shipment growth is expected to decrease due to two key factors -- integration, and the rise of the ULCH (Ultra Low-Cost Handset) market. Integration impacts the market negatively, as multimedia functions are combined into the baseband pro...

Telco Linear TV Out of Sync with Consumer

The availability of telco TV services continues to expand to new countries just as availability expands within those countries as higher bandwidth networks are built to deliver video, reports In-Stat. In many European countries, consumers even have choices among four or five broadband providers that offer telco TV service (or IPTV), the high-tech market research firm says. This expansion of availability is driving much of the subscriber growth. "Subscriber growth in North America is being driven by the largest telcos -- Verizon and AT&T -- who are aggressively rolling out telco TV services in parts of their territories," says Michelle Abraham, In-Stat analyst. "They are moving full speed ahead with expanding the areas they serve, with subscribers doubling in 2007." The In-Stat research covers the worldwide market for telco TV. It looks at where telco TV services are growing, which providers are offering telco TV, and what types of services are being offered. Wor...

Google Prefers Yahoo! Free from Microsoft

David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer of Google has posted a response to Microsoft's hostile takeover bid for Yahoo! "The openness of the Internet is what made Google -- and Yahoo! -- possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It's what makes the Internet such an exciting place. So Microsoft's hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation. Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacen...

Video Services Push Telco to Upgrade DSL

Dell'Oro Group announced that it forecasts revenue from build-outs of high-speed VDSL and PON networks will almost double between 2007 to 2012. During the same timeframe, revenue from slower-speed ADSL equipment is expected to fall by more than 40 percent. The forecast includes revenues from sales of both access concentrators and customer premises equipment. Their findings from the five-year forecast of the Access market that indicate worldwide sales of Cable, DSL, and PON equipment, will grow from $9.6 billion in 2007 to $9.7 billion in 2008 before gradually falling back to $8.9 billion in 2012. "New revenue opportunities, primarily video services, is driving many telecom service providers in established regions to plan network upgrades to high-speed VDSL and PON technology," said Tam Dell'Oro, Founder of Dell'OroGroup. "Manufacturers still have good opportunities to sell ADSL equipment, especially in emerging regions where subscriber growth is strongest. ...

Worldwide PC Processor Shipments Growth

Worldwide PC microprocessor shipments grew 8.5 percent sequentially in the fourth calendar quarter of 2007 (4Q07) to reach record levels for the second quarter in a row, according to new data from IDC. Growth in overall unit shipments and stable average selling prices stimulated overall market revenue to grow 9.6 percent sequentially to $8.7 billion. Shipments of processors designed for PC servers stood out in the quarter, growing 17.0 percent sequentially. Shipments of processors for mobile PCs grew 10.3 percent, while processors for desktop PCs grew 6.5 percent. IDC analysis also reveals that, within each form factor, the percentage of high-end and mainstream processors grew at the expense of low-end processors. For example, in the desktop processor segment, high-end and mainstream processors represented 87.1 percent of processors shipped in 4Q07, up from 84.6 percent in 3Q07. "Overall market pricing was very stable in the quarter," said Shane Rau, director of Semiconductor...