BURLINGTON, Mass.-A new study compiled by research and consulting firm Ovum reports that although voice traffic will continue to dominate the communications market, the growing demand for information services and Internet content is forcing vendors and operators to rethink their mobile strategies.
The report, “Wireless Internet: New Frontiers for Cellular Terminals,” predicts that by 2004, global revenue from mobile handset sales will more than double to $67 billion. More than 65 percent of this revenue will be generated by smart phones and data-centric cellular terminals, said the report.
“Communications, computing and consumer electronics vendors all want to exploit the potential of mobile data, particularly Internet applications,” said Eden Zoller, senior analyst and lead author of Ovum’s report. To help achieve this, vendors have formed a string of joint ventures and alliances.
There is a general understanding, according to the report, that developing standards is important for creating an environment where data applications and terminals can flourish. A problem lies in the fact various alliances support different standards and technologies and are competing on a number of fronts.
“Which alliances win or lose will have a profound effect on what standards and technologies gain dominance,” said Zoller.
The report also says there will be no single terminal type.
“The traditional ways of defining cellular terminals and segmenting the market are no longer adequate,” said Zoller. “There will be considerable experimentation as vendors test product categories, such as smart phones and handheld PCs. This will continue until customers decide which product forms and functionality they want. The market will then settle on a select few terminal types.”
