Digital Lifescapes

According to the latest In-Stat market study, the U.S. business market currently devotes the largest part of managed services spending to managed infrastructure in 2008 at 35 percent. Most of this current spending is done by the enterprise market -- firms with more than 1,000 employees. While enterprises devote the largest portions of their managed services budgets to managed infrastructure services, at the other end of the spectrum SOHO and small businesses (fewer than 100 employees per firm) spend the bulk of their managed services dollars on Web and application hosting. Managed network services is the biggest slice of the pie among mid-sized businesses (100 to 999 employees per firm). The leading trend in managed services is the quickly increasing spending on the out-tasking of Web and application hosting among enterprises and, to a lesser degree, mid-sized businesses. Spending on Web and application hosting is expected to experience strong increases and a CAGR of 20 percent through...

According to a new market study by Informa Telecoms & Media, mobile phone traffic generated in the home environment was estimated at 40 percent in 2007. By 2013 it is expected to reach an overwhelming 58 percent. Informa expects Femtocells deployment to help operators offload up to 8 percent of total mobile traffic to fixed networks via end-user broadband lines. Their report finds that mobile voice minutes of use (MoU) in the home environment will approach 42 percent of total mobile voice traffic by the end of 2008. As the price gap between fixed and mobile calls narrows mobile voice usage at home will gradually increase to reach 49 percent by 2013. The office environment will come in second position with a 30 percent market share, while only 9 percent of calls will be initiated on the move -- when walking, driving, or on the train or bus -- and the remaining 21 percent of calls will be generated from other public environments. Mobile data usage is also expected to increase over th...

The communications industry buzz makes unified communications (UC) sound like it will cause seismic shifts across the business world, according to the latest market study by In-Stat. In the long run, some grand predictions may prove accurate because definitions of unified communications are so broad, with reports on uptake quoting big numbers, such as 50 percent of enterprises evaluating, installing, or running unified communications applications. However, apparently even the small baby steps of progress, such as a unified messaging installation or a web conferencing subscription, are being counted within those reports. "Real transformational changes will take more time, perhaps even a generation, to accomplish," says David Lemelin, In-Stat analyst. "But, it's possible that a new generation, dubbed Millennials, bringing to the workplace communications habits formed in their early years (text messaging, social networking, blogging, etc.), portends more rapid adoption....

Have you seen a movie trailer online lately? Seems like they're surfacing more frequently in all types of rich media Ads. Online film marketing is truly expanding -- in both the scope and sophistication. In 2007, studios in the Motion Picture Association of America (MPAA), and their subsidiaries, spent $754 million advertising films online. By 2012 that figure will increase to $2.4 billion. According to eMarketer projections, last year online channels represented approximately 5 percent of all film advertising, but by 2012 the figure will climb to 13.2 percent. "Not only is online film advertising spending on a fast growth curve, the marketing channels used by studios are also expanding," says Paul Verna, senior analyst at eMarketer. "Today, virtually every film marketing campaign leverages traditional and new media channels, with applications such as social network profiles, widgets and recommendation engines becoming an integral part of the mix." Films are rar...

From a virtual standing start of just 10 million units in 2008, shipments of ultra-mobile devices (UMD) -- the umbrella term for ultra-mobile PCs, netbooks and mobile Internet devices -- are expected to exceed 200 million in 2013. According to ABI Research principal analyst Philip Solis, "The UMD market will still be small compared to the wireless handset market, but with a forecast revenue of nearly $27 billion in 2013, it will certainly be significant." While netbooks account for about 90 percent of today's UMD market, they will fall to a distant second place by 2013, while Mobile Internet Device (MID) shipments surge ahead to take nearly 68 percent of the market, with Ultra-mobile PCs (UMPCs) remaining a niche category. To put the UMD market forecasts into perspective, the 2013 estimate of 200 million shipped devices is roughly the anticipated size of the worldwide laptop PC market. "As this market enters its rapid growth phase and starts to evolve," Solis co...

When world's predicted four-billionth mobile phone subscription comes before the end of 2008, it will have taken just five full quarters for the latest billion net additions. The engine for this rapid growth has been the tremendous consumer demand seen in emerging markets, such as China and India, where in each of these countries there have been over 50 million new mobile subscriptions in the last six months alone -- as well as significant growth in markets such as Indonesia, Vietnam, Pakistan and Brazil. The rise of global mobile subscription numbers is set to slow, with Informa Telecoms and Media's forecast suggesting the five billionth subscription will be signed during 4Q 2011, with worldwide penetration reaching in excess of 70 percent by this time. Only in Africa will penetration at the end of 2011 still be below 50 percent. "It is clear that the mobile industry will see a slowdown in growth -- it is simply untenable for the extraordinary growth witnessed over the la...

ComScore announced that mobile search is gaining in both popularity and frequency of use -- both in the U.S. and Western Europe. comScore M:Metrics reports that in June 2008, 20.8 million U.S. mobile subscribers and 4.5 million European mobile phone subscribers accessed search during the month, an increase of 68 and 38 percent from June 2007, respectively. The U.K. had the highest penetration of mobile subscribers using search at 9.5 percent, followed closely by the U.S. at 9.2 percent. "It is interesting to note that as we see the number of mobile search users increase, the frequency of activity is also growing," observed Alistair Hill, analyst, comScore. The number of people accessing mobile search at least once a week grew 50 percent in Europe, with France and Spain leading at a rate of 69 and 63 percent, respectively. Meanwhile, the number of U.S. users accessing mobile search has more than doubled as a result of expanded 3G penetration and smartphone adoption, as well ...

Sprint, the U.S. wireless operator, lowered its mobile broadband prices for using a phone as a modem, but the price for using PC Cards and USB modems are unchanged. Given this change, cellular modem sales are still set to top $22 billion by 2013. ABI Research principal analyst Dan Shey notes, "Customers want mobile broadband experiences like those provided by their PCs, meaning they want the fastest devices. Phones with at least 3G radios threaten cellular modem sales; however shipments of these modems will not exceed 30 percent of cellular handset shipments by 2011." But to truly understand this threat, we must analyze regional penetration of 3G devices. Industrialized countries will see deeper penetration of these higher-priced devices, typically in the hands of business customers. However convenience is important to business customers -- PC Cards and USB modems are far more convenient than phones for broadband connectivity. Adding complexity to the analysis is the growing...

Demand for intelligent control applications will push U.S. revenues for consumer wireless and powerline controls from $740 million in 2008 to over $3 billion in 2012, according to the latest market study by Parks Associates. They forecast the installed base for these technologies will skyrocket to nearly 60 million in 2012, thanks in large part to key players entering this market. Companies including Black & Decker, Schlage, Hawking, iControl, and Wayne Dalton have all announced new products targeting access control, remote monitoring, and consumer energy management applications. Zilog recently announced a new control platform incorporating both wired and wireless connectivity interfaces that provides consumers with remote access and control through WiFi-enabled handheld devices, including the Apple iPhone and the BlackBerry Curve. "The era of electronic home controls has arrived," said Bill Ablondi, Director, Home Systems Research, Parks Associates. "Technological ...

Telephone service via a cable TV provider has gone from something of a curiosity among voice services to a widely available service. In fact, in a few countries such as the United States and the United Kingdom, cable telephony has become a common choice for wired telephone service. According to In-Stat, even with the increasingly widespread availability of cable telephony service, there are some critics who remain skeptical about the long-term viability of the service. When queried about this, most cable TV operators point out the following: - A cable TV service bundle of video, high-speed data and telephony is a compelling package, and it continues to attract entertainment and information-hungry consumers. - Advances in hybrid fiber-coaxial (HFC) network technology are providing a cost-effective way to provision telephony services over the existing cable TV infrastructure. - The widespread availability of VoIP-based cable telephony services is also enhancing the cost competitiveness o...

ComScore released results of a study into the online gaming category, indicating significant user growth among teenage girls between the ages of 12 and 17 and women between the ages of 55 and 64. While the total female online gaming audience in August 2008 grew 27 percent versus last year to nearly 43 million visitors, the number of female gamers in the 12-24 and 55-64 age segments grew at a substantially faster rate. Growth in these particular demographic groups is likely the result of the emergence of gaming content, portals and Web sites catering specifically to these segments. "Many advertisers and their ad agencies have long understood the appeal of online gaming among teenage boys, and they have now found creative ways to effectively reach these female audiences with targeted ad campaigns," said Edward Hunter, director of Gaming Solutions at comScore. "With the increased interest in online gaming among the highly lucrative teenage girl and older female demographic ...

The home video market in Western Europe is expected to generate total retail revenues of 11 billion Euros by the end of 2008, with 97 percent of those revenues coming from packaged media (DVD and Blu-ray) and 3 percent from new digital video (online and mobile video). Although revenues from online video are currently low, the presence of major hardware players such as Apple (iTunes), Microsoft (Xbox Live Video Marketplace) and the recently launched PlayStation Network video service from Sony provides a promising outlook for the market. Apple is already quoting sales of 50,000 movies per day on its video service, a clear indication that there is a growing appetite amongst consumers to view digital video content. The online video market is expected to gain traction and will be encouraged by technology advancements such as faster broadband speeds. Futuresource anticipates online video revenues to increase significantly by 2012 and along with mobile video will represent 13 percent of total...

It's true, touch screens have been available for some time, and are found in a variety of fixed and portable devices, but it was the launch of the Apple iPhone that refocused people's attention. Shipments in 2007 of touch screen-based mobile devices increased 91 percent over 2006, and ABI Research forecasts that revenue from the global touch screen market for mobile phones and other handheld devices such as MIDs, UMPCs, and PNDs will reach $5 billion in 2009. "Nearly all mobile handset manufacturers are getting into touch screens to a greater or lesser extent," says research director Kevin Burden. "The acceptance of touch screens to date has varied by geographic region, which has been a significant factor in determining the success of individual handset vendors." Samsung and Motorola have been the most successful, commanding 33 percent and 30 percent shares of the touch screen mobile phone market respectively. Samsung and Motorola lead the market for touch s...

While initial reactions to marketing and advertising messages on a mobile phone can often be negative, a recent survey from ABI Research finds that the level of responsiveness can often be improved through incentives. In fact, approximately 37 percent of those who have received text message-based advertising have indicated they are more likely to respond to advertising in a text-based marketing message if they are offered an incentive such as a retail coupon or free song or ringtone, compared with only 11 percent who indicated that such incentives would not have any impact. "We think that in general, advertisers and operators must tread carefully when delivering marketing messages to a consumer's mobile handset, especially given that many subscribers believe they are paying a significant amount of money for their mobile services," says research director Michael Wolf. "However, we believe that marketing and advertising messaging that is properly crafted and that utili...

The managed network services market is forecast to grow to over $34 billion by 2013, according to the latest market study by Informa Telecoms & Media. The developing regions such as the Middle East and Africa are expanding particularly strongly as new services are launched, while the established markets such as Western Europe are driven by the need to differentiate through marketing support and customer service. According to the Informa report author, Richard Jesty, one major trend which is currently emerging is the willingness of operators of all sizes to consider using managed services. He said "The future for managed services is vibrant, with new strategic deals now being struck with Tier 1 operators, and consultancy becoming a significant factor. But what makes this trend so exciting are the implications it has for the changing nature of the telecoms operator's business model and the opportunities this creates for service providers." External services already repr...

The home monitoring market will undergo major growth as a result of robust consumer interest and the emergence of new technologies offering digitally networked services and enhanced functionality compared with traditional systems. In a recent IDC poll of 1,500 consumers, more than half expressed interest in the ability to monitor and control heating, ventilation, and air conditioning, as well as electricity and home appliances from an external PC or wireless phone. The home security and monitoring market has changed little in decades and remained largely unaffected by the Internet. The major difference between traditional and next-generation security systems is that the latter are broadband-based and offer redundant connectivity via wireless and voice, while most ADT systems rely on voice or wireless alone. Likewise, the home automation market is not mature and has few consumer applications with widespread appeal and ease of use. Emerging vendors profiled in a new IDC study include InG...

In a recent market study of North American and European SMB IT decision makers, Forrester Research attempted to determine the sources of information used in the buying process. They asked the following questions: When researching and comparing network and telecommunications products, how important is each of the following "digital media" as sources of information for informing your purchase decisions? a) Vendor, industry/trade, or professional Web sites; b) blogs from vendors, peers, or industry commentators; c) email or electronic newsletters; d) Web-based events or Webinars; e) interactive media: podcasts, video, online demos, or rich Internet apps; f) discussion forums, online communities, or social network sites; and g) other (please specify). They also asked which publications or sources of information do SMB decision makers refer to when making enterprise-wide network and telecom technology purchase decisions for their company. The results demonstrate the continued frag...

According to In-Stat, legacy network services -- like frame relay, leased line and ATM -- over the wide area network (WAN) continue to provide U.S. businesses with a reliable, manageable communications infrastructure on which to operate. However, Next Generation Network (NGN) services over the WAN are better equipped to provide the building blocks necessary in addressing the progressively more demanding connectivity requirements faced in today's business environment -- all size businesses are transitioning towards the IP-NGN model. For purposes of In-Stat's study, NGN services are defined as IP/MPLS and Ethernet services. Overall, all size of business segments have similar goals in moving from legacy to NGN services, but there are differences in motivations and concerns over migration that vary by size of business. In-Stat latest market study included 810 respondents, of which approximately 90 percent were very knowledgeable or extremely knowledgeable in their organization'...

The outlook for advertising displayed on mobile phones in the U.S. market seems to lack momentum. Regardless, mobile marketers do not need to worry about whether college students are capable of receiving their messages. Apparently, nine out of ten U.S. college students surveyed in August 2008 by Harris Interactve for Alloy Media + Marketing said they owned a mobile phone. Fully 70 percent of that group said they used text messaging. Clearly, that's a very attractive addressable market. Text messaging by college students is also on the rise. More than seven out of ten responding college students surveyed by Youth Trends in May 2008 said they were texting more often than they had during the previous year. However, this does not mean the university crowd wants marketers to start hitting them with broadcast text messages. Even opt-in is not a safe way to reach mobile collegians -- more than one-half of respondents to the Youth Trends survey said they were "not at all interested...

The online video advertising growth predictions continue to be upbeat. Video advertising company LiveRail predicts that online video ad spending will near $1.4 billion in 2010, up from $619 million in 2008. The company said that online video still represents only 2.4 percent of all online ad spending. Clearly the only way to go is up -- which is exactly the direction it's heading. eMarketer's analysis, which considers predictions by multiple firms, puts online ad spending in 2010 at $1.15 billion, up from $505 billion in 2008. Similarly, online video represents only 2 percent of total online ad spending as of 2008, but will approach 10 percent in 2013. Most online video ad spending predictions released in the past year are at least somewhat optimistic, and it is easy to see why. More than one-half of U.S. consumers currently watch online video, and by 2012 nearly nine out of 10 Internet users will do so. Perhaps the more important point, from an advertiser's perspective, is...