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  • IP Players Create Recession Strategies As 2008 Revenues Fall


    Customer spending on new IP lines and desktop gear declined significantly last year in North America compared with 2007.

    Much of the downturn during 2H08 can be attributed to fewer orders from three key verticals devastated by the recession: financial services, manufacturing and retail, according to research from T3i Group LLC.

    The report confirms all sectors of the telecommunications manufacturing industry have been affected negatively by the global economic situation.

    However, it says the major North American networking suppliers – Cisco, Avaya, Nortel, Mitel and NEC – have crafted ways to survive the downturn.

    According to report "InfoTrack for Enterprise Communications Full Year 2008 Report", the decline led to US manufacturer revenues in 2008 totalling USD $3.7 billion, down 11 per cent from 2007, while Canadian revenues for 2008 totaled USD $289 million, down 8 per cent from 2007.

    The InfoTrack report also found total average selling prices (ASP) were down 1 per cent in 2008, with IP platform prices dropping 4 per cent due to reduced demand resulting from capex cutbacks and the shutdowns of unprofitable business locations.

    IP revenues in total fell 7 per cent during the 12-month period, although smaller key system pricing remained stable (down less than 1 per cent) due to the addition of embedded IP, wireless and applications functionality.

    Bob Olson, Voice Technologies Analyst at T3i Group, said there could be a near-term solution to slowed IP telephony spending: monies promised in the American Recovery and Reinvestment Act (also known as the stimulus package).

    "Fortuitously, the biggest winner for the telecom sector in the appropriations portion of the final 2009 stimulus bill is infrastructure, with nearly USD $137 billion targeted for miscellaneous improvements, including USD $9 billion to expand broadband Internet access," he said.

    "The justification for the USD $9 billion is based on building a level playing field for rural programs, including schools, libraries and hospitals. All that translates into new software and hardware sales."

  • Skype Taking Larger Share of International Voice Traffic


    International voice traffic continues to rise – despite the availability of an ever-broader range of substitutes for standard telephone calls.

    Cross-border telephone traffic grew 14 per cent in 2007 and is estimated to have grown 12 per cent in 2008, to 384 billion minutes, according to data from TeleGeography.

    Due to declining call prices, however, revenues have largely been flat.

    But if international telephone traffic is increasing at a modest pace, Skype’s international traffic has soared.

    TeleGeography estimates that Skype’s cross-border traffic grew approximately 41 per cent in 2008, to 33 billion minutes.

    This is equivalent to 8 per cent of combined international telephone plus Skype traffic.

    TeleGeography analyst Stephan Beckert said Skype’s traffic growth has been remarkable.

    "Only five years after its launch, Skype has emerged as the largest provider of cross-border voice communications in the world," he said.

    Not all of Skype’s traffic is a net loss for international carriers.

    Skype’s paid-for ‘Skype Out’ service, which lets users make calls to standard telephones, generated 8.4 billion minutes of calls in 2008.

    Skype relies on wholesale carriers, such as iBasis and Level 3, to connect this traffic to the telephone network.

  • GE Delays Launch of HDTVs


    General Electric is to delay its re-entry into the television market after a 20-year gap as a result of "marketing issues".

    The company announced in September that it was to offer GE-branded HDTVs in partnership with a Taiwanese company.

    Now it has emerged that the company is pushing everything back by around three months, according to Engadget.

    It reports that the setback isn’t due to "operational or manufacturing issues", but suggests it may have more to do with a desire to better implement connected HDTV features.

    Whatever the reason, GE hasn’t picked the time to be re-entering the market – and its pre-launch jitters certainly don’t inspire great hope in the as-yet unseen product.

  • Europe's HDTVs "Starved of HD Content"


    FutureSource Consulting has produced an interesting chart (see below) that highlights the gulf between HDTV ownership and the penetration of Blu-ray disc players in Europe.

    It shows that there are 69 million HD-ready TV sets but just 8 million Blu-ray players,including PS3 consoles – prompting the title: "61 million TVs starved of HD content".

    While HD content is obviously available from other sources – such as VOD and HD broadcasting TV stations – the chart clearly shows how much work remains for backers of Blu-ray to get the high-def format into the mainstream.

    The UK tops the chart with 42 per cent of households owning a HDTV and 9 per cent a Blu-ray player.

    Germany comes bottom with 24 per cent with HDTVs and 3 per cent with a Blu-ray player.

    FutureSource is bullish that the numbers of HDTVs seemingly devoid of HD content will soon be reduced.

    It forecasts a strong rise in Blu-ray Player sales – up to 19 million in Western Europe for 2009 and 45 million players by the end of 2011.

  • Canon Offers First Entry-Level DSLR With HD Video


    Canon today launched its Rebel T1i DSLR – its first-ever entry-level DSLR with 1080p HD video recording.

    The 15.1-megapixel camera uses the DIGIC 4 imaging processor to record either full 1080p video at 20 frames per second or 30 frames per second at 720p.

    Other notable specs include a 3.0-inch Live View screen, a Digic IV processor, ISO 12.8k sensitivity, and the same 18-55 IS EF-S kit lens as the XSi.

    Yuichi Ishizuka, senior vice president and general manager, Consumer Imaging Group, Canon USA, described the latest addition to Canon’s Rebel lineup as "an entry-level juggernaut".

    "We are witnessing the emergence of a new phase in digital imaging history, as high-resolution still images and HD video can now both be produced in a hand-held device, for under USD $1,000," he said.

    The EOS Rebel T1i DSLR is scheduled for delivery by early May at an estimated retail price of USD $799.99.

  • BLOCKBUSTER OnDemand Coming Through TiVo


    Blockbuster is to be the latest online video-on-demand service to appear on TiVo DVRs.

    The pair announced today that they are working to make Blockbuster’s service available on all TiVo Series2 and Series3 DVRs (including the HD and HD XL models) in the second half of 2009.

    The deal means TiVo’s hardware will appear on the shelves of local video rental stores, while Blockbuster’s service will get exposure to millions of new users.

    It also means that TiVo adds Blockbuster to a list of available streaming video that already includes Netflix, CinemaNow and more.

    In November, Blockbuster launched a movie rental service via set-top boxes.

    It offered a STB made by 2Wire that plays downloaded movies.

    Jim Keyes, Blockbuster chairman and CEO, said working with TiVo enabled subscribers to access movies not only through his company’s OnDemand service but also from their stores and by-mail service as well.

    "Regardless of a film’s availability – through VOD or on DVD – we want to work with TiVo to provide their subscribers unprecedented access to movie content," he said.

    Tom Rogers, president and CEO of TiVo, said joining with Blockbuster made TiVo a "one-stop shop" for any content thru broadband or linear distribution straight to the TV.

  • Turkish Mobile Market: Opportunity Beckons With Summer Launch of 3G Network

    INTERVIEW: Isik Uman, general manager of leading Turkish service provider Retromedya, talks to smartphone-biz.news about the rapidly changing mobile market in Turkey.
    With 3G going live this summer, the nation’s 66 million mobile subscribers are expected to take full advantage of new services – making it an appealing prospect for operators and service providers.

    Turkish consumers love their mobiles. As one of the fastest growing mobile markets in recent years, wireless penetration currently sits at 92 per cent.

    That’s pretty impressive – especially as Turkey doesn’t have handset subsidies.

    People buy their mobile phones and then choose their operator.

    Isik Uman, general manager of leading Turkish service provider Retromedya, said increasingly that decision is being driven by the demand for richer content – something that has progressed as rapidly as improvements to handsets and mobile networks.

    Build-up To 3G

    The potential for content is going to get even more interesting this summer when Turkey’s 3G network kicks in.

    And there is no shortage of hardware ready to use it.

    Even without handset subsidies, Uman said there were around 3.5 million 3G phones already being used in Turkey.

    "That’s 3.5 million potential users for it," he said.

    While there are no official figures, an estimated 300,000 iPhones have been sold in Turkey since it launched last summer.

    On top of that sales of other high-end handsets from HTC and Nokia – which has a 60 per cent share of the mobile market in Turkey – are strong.

    All this makes the country one of the more attractive markets for handset manufacturers.

    That is likely to continue as 3G is rolled out – with all the opportunities that will bring.

    Competition Intensifies

    The development is expected to pit operators head-to-head, with 3G and a host of new services – including LBS – being used as the hook with which to lure customers.

    As a result – and despite the global economic situation – Turkey’s mobile operators are projecting Turkish Lira-based growth this year.

    The country’s three GSM operators – Turkcell (37m subscribers), Vodafone (17m subscribers) and Avea (12m subscribers) – earned between them an estimated 13 billion Turkish Liras (approx. USD $10 billion) in 2008.

    But as Turkey is a large country – and requires a lot of base stations to provide coverage – average revenue per user (ARPU) is between USD $11-14.

    This hasn’t affected competition among the operators, which is fierce – especially following the introduction of mobile number portability in Turkey last November.

    More than 1 million subscribers have changed operator since it became available.

    The ability for users to switch operator has also led to the adoption of new marketing strategies from the operators, including the introduction of a subsidy-like model to retain or lure valuable customers.

    "Before we had number portability, people like business professionals, company owners, doctors, lawyers and so on didn’t want to change their mobile numbers," said Uman. "It just wasn’t acceptable.

    "Now with number portability, we will see subsidised handsets being used as a means to lure lucrative customers."

    Uman said it was also likely that flat-rate data tariffs would become more common when 3G goes live.

    He said this would obviously benefit service providers such as Retromedya.

    "We are counting on this as it will make our services more attractive and easier to use," he said.

    Retromeyda already offers content to all three operators in the form of:

    • music services
    • video content – downloading on-demand video
    • mobile games
    • interactive voting
    • mobile community and chat

    As well as providing consumer services, Retromedya also offers B2B gateway services to third party players in the market.

    Uman said these were white label services to companies that want to provide mobile services in Turkey.

    "We believe this year will be very interesting for the Turkish market," he said.

    "Commercial services will be very important and offer a big opportunity, which we are trying to address."

    Uman said there had been a lot of interest in Retromedya at the recent Mobile World Congress in Barcelona.

    He said this was a reflection on the potential revenue prospects Turkey’s mobile market offered service providers.

    "We provide the infrastructure for them so they can quickly introduce their services and operations," he said.

  • Boom in Mobile App Store Users Creates Opportunities for Marketers


    App stores are offering marketers and advertisers a new way to reach mobile audiences, according to In-Stat.

    The researchers forecast more than 100 million app store-compatible mobile phones from multiple manufacturers will be shipping within five years.

    Much of the credit for this emerging market trend is given to the iPhone.

    In-Stat says Apple’s debut of the iPhone Apps Store has provided a platform for branded applications.

    In-Stat analyst David Chamberlain said that with greater capabilities in both running native applications and viewing ‘real Internet’ websites, smartphones have increased usage and user expectations for mobile content.

    He said that along with the expanding handset base, users are downloading more applications.

    "Reach for marketing applications is growing rapidly and those applications can provide prolonged engagement with the user and keep the advertiser’s brand in focus," he said.

    Recent research by In-Stat found the following:

    • Smartphones having a strong app store orientation will reach 30 per cent of the global smartphone market by 2013, approaching nearly 100 million units.
    • Survey respondents show iPhone users are by far the most active apps store users, significantly outpacing users of Blackberry, Palm OS or Windows Mobile phones.
    • Application marketing, like all new advertising media, lacks consistent, accepted analytics many advertisers are accustomed to

  • Skuku Provides Cheap InFlight GSM Calls to Air Passengers


    Skuku has announced today that it has formed a partnership with the German company TriaGnoSys to provide the next generation of inflight GSM services for airline passengers.

    The new service allows travellers to avoid costly roaming charges while placing phone calls aboard commercial airlines.

    It takes advantage of existing technology, including in-seat screens, seat-back phones and Internet connectivity, and allows airlines to offer roaming-free voice and SMS functions to their passengers.

    Skuku’s technology will not require the installation of any onboard GSM equipment.

    Axel Jahn, managing director of TriaGnoSys, said the new service allows airlines, as well as business jet owners and operators, to exploit the technology they already have on their aircraft in order to provide an additional passenger service.

    "The installation process is a simple software upgrade, bypassing the need for the expensive and time-consuming fitting of hardware," he said.

    "In addition, Skuku’s technology can easily be integrated into current generation IP-enabled IFE systems."

    Skuku’s technology uses SIM card data in ground-based GSM servers to provide roaming-free services for voice and instant messaging.

    TriaGnoSys, experts in aeronautical communication, has developed the software to enable Skuku to be used on aircraft.

    Jahn said that from the success of current inflight GSM services, it is clear that passengers want access to SMSs and voice calls during flights.

    He added: "This is a highly efficient way of providing that service."

    To use the service, passengers insert their own SIM card into a SIM card reader.

    On aircraft with Internet connectivity, passengers can send and receive SMS messages using the IFE screen, while softphones can be used for voice calls.

    Seat-back phones can also be used to place and receive voice calls, in addition to Inmarsat and Iridium satellite phones.

    Colin Blou, VP of sales and marketing at Skuku, said that from the passengers’ perspective, using the Skuku/TriaGnoSys service was very similar to current inflight mobile phone services.

    "Passengers can continue to use their mobile number and contacts list, and they are billed through their normal bills at national rates, without having to pay costly roaming charges,"he said.

  • Business Mobile Use Revenue To Grow To $284 billion by 2014


    The increasing use of smartphones as the sole business phone will drive revenues from mobile enterprise users to USD $284 billion by 2014.

    Yet while the "unwired enterprise" is becoming a reality, hurdles remain in persuading significant numbers of businesses to "go mobile", according to Juniper Research.

    The report found that many enterprises are seeing the benefits of cost reductions and increased profitability won via efficiency and productivity improvements.

    It forecasts that greater use of mobile broadband will increase enterprise mobile devices by 56 per cent between 2008 And 2014.

    Companies such as GoHello – which offers an ALLmobile, virtual phone system – and OnRelay – with its Unified MBX solution that delivers complete IP PBX functionality to the mobile phone – are already offering viable alternatives to the deskphone.

    But the report also highlights specific barriers to adoption, including:

    • limited functionality resulting from the small size and form of devices
    • problems in adapting applications for mobiles while not compromising on usability
    • the thorny issue of ensuring device security

    The report’s author, Andrew Kitson, believes that device management and security are critical issues that businesses need to address when going mobile.

    He said that enterprises need to be assured of total control over the devices their employees use.

    "To do this, they need to limit the types and numbers of devices connecting to their networks, deactivate or restrict devices that are lost or stolen, minimising functionality and access, and employing user authentication, content encryption, and other security solutions as appropriate," he said.

    "There are upfront cost issues involved, but the greater cost lies in compromising on security features."

    Other findings include:

    • Enterprise-grade applications and services require advanced devices and rely on high-capacity networks: the proportion of devices connected to 3.5G/3.9G networks will rise from 13 per cent in 2008 to almost 80 per cent in 2014
    • Usage of wireless dongles is losing ground to usage of plug-in datacards and devices with embedded wireless modems and will peak in 2010/2011