Once the domain of top secret British agents with licenses to kill, wireless handsets that include cameras are now available to the common man as wireless carriers and handset manufacturers continue to slowly introduce the devices.
Like most high-tech electronic equipment, these hybrids got their start in Asia, where customers quickly snapped them up. Japanese operator KDDI Corp. surfed the wave of enthusiasm to temporarily become the country’s second-largest wireless carrier thanks to its Sha-mail service, which since has been copied by many of its competitors.
Japanese analyst firm Nikkei Market Access predicts that the integrated camera segment is expected to grow from 9 percent of total handsets produced last year to 46 percent this year and 81 percent next year.
With such success, it was only a matter of time before wireless operators on this side of the Pacific Ocean jumped in on the camera fun. Today four operators offer consumer-oriented hybrid devices.
AT&T Wireless Services Inc. started the craze earlier this year when it introduced the Sony Ericsson T68I handset on its network with an available camera attachment for its mMode Pix service. A trio of carriers followed suit including Sprint PCS offering a camera attachment for a pair of Samsung Corp. handsets and its PCS Vision service; Cingular Wireless L.L.C. with the T68I handset and camera attachment; and most recently T-Mobile USA Inc. with a less expensive Sony Ericsson T300 handset and camera attachment.
Industry analysts note that in addition to getting the attention of new customers with imaging services, carriers are hoping to see a financial payoff from camera-equipped handsets.
“Wireless carriers are hoping that camera-enabled mobile phones, or more precisely, the cost associated with taking and sharing digital photos via wireless phones will create more revenue opportunities in a time when debts are high and [average revenue per user] seems to be flattening out,” said Shauna Smith, senior wireless analyst at ARS Inc.
Analysts also point out that the current photo-messaging services can bolster carriers’ current offerings as well as prepare customers for more revenue-generating services in the future.
“If the carriers can price the services right, photo messaging could provide a boost for SMS and pave the way for more lucrative MMS applications,” said Ozgur Aytar, director of wireless research at FastTrack Wireless.
Of the carriers that charge per kilobyte of data transmission, T-Mobile USA offers the lowest price structure, charging customers between 3 cents and 9 cents to send or receive an average size 30 kilobyte picture depending on which T-zone data plan customers use.
AT&T Wireless customers will pay between 7 cents and 60 cents to send a similar sized picture depending on which mMode plan is selected, while Cingular customers are charged between 11 cents and 21 cents to send or receive a 30 Kb picture over their handset.
After recently adjusting its PCS Vision service to offer unlimited data transmission for $10 per month, Sprint PCS offers the lowest potential cost to send or receive pictures.
ARS claims that T-Mobile has the best value overall for customers when factoring in the relatively low price of the device and its rate plans, but noted that Sprint PCS’ simple flat-rate charges nearly make up for its higher-priced handsets.
For carriers still waiting to join the camera-handset craze, FastTrack Wireless’ Aytar said they shouldn’t see a competitive disadvantage as long as they bring a quality service to market at a competitive price and in a reasonable time frame.
