Saturday, September 30, 2006

Subscribers Fuel Growth in Asia Pacific Mobile Gambling Market as Revenues Rise from $966m to $8.8bn by 2011

Juniper: Total mobile gambling revenues (involving casinos, lotteries and betting) in the Asia-Pacific region are set to rise from $966m in 2006 to $8.8bn come 2011

During this period Asia Pacific will be the largest geographic market, followed by Europe, with North America, South America and Rest of the world a considerable way behind.

Asia Pacific and Europe will contribute similar revenues in the next five years - accommodating a different business mix; and like Asia Pacific, Europe will see a substantial rise in total revenues (value of bets placed) from $950m in 2006 to $7.9bn by 2011. In comparison, North America – where legislation permits – will rise from zero revenue in 2006 to over $3.3bn by 201. South America will grow from £34m to $1.33bn.

Juniper’s forecasts factor in a number of potential drivers and constraints. Bruce Gibson, Research Director at Juniper Research states: Among the advantages of the mobile channel is the impetus provided by the continued and unparalleled growth of the mobile communications subscriber base in Asia Pacific which is forecast to exceed 1.3bn users by 2011. An increase that will - in five years - cater for over 40 per cent of global subscribers.

Juniper also cites the desire to gamble in sectors of the population, the speed of advancing mobile networks and handset technology. Globally revenues are set to rise – in part - thanks to the inherent advantages of mobile communications in terms of convenience and pervasiveness.

However the mobile gambling market is perhaps as its nature suggests, difficult to predict. Figures for the adoption of mobile gambling services and ultimately revenue could substantially increase on current forecasts, if more liberal gambling environments are introduced in key regions in the near future.

Mobile Gambling: Casinos, Lotteries & Betting, 2006-2011

Publ 20060830

Friday, September 29, 2006

Smart Antenna Systems Improve Mobile and In-Building Business Cases

ABI: Mobile network operators are facing an increasing demand for data over their radio access networks, which could lead to extra costs unless new techniques are used to improve spectral efficiency. Similar demands are also likely from in-building wireless LANs and pico/femto cells, as IPTV and other bandwidth-hungry services are deployed both in the home and the enterprise. Telecom networks are going through a period of profound change as traffic moves from voice to broadband data services. This brings with it increasing pressure to use the radio spectrum more efficiently if a rapid rise in base station numbers is to be avoided. Smart antenna systems (SAS), regarded as a research novelty until recently, can be used to improve radio access network and in-building wireless performance. This results in a more compelling business case as spectral efficiency is dramatically improved. For users SAS provide better coverage and delivers higher data rates. For vendors, SAS will allow specialist firms to develop new forms of antenna system suited for indoor and outdoor applications and for 2G, 3G, (macro, pico and femto cells) and WLAN networks, as well as WiMAX, using all the IEEE standards. Smart Antenna Systems

Publ 20060928

Thursday, September 28, 2006

Satellite Subs Will Reach 33.5 Mil by 2015

Kagan Research: estimates DBS’s current share of 29% is nearing steady state in terms of the multichannel market. As telcos come online with their video products the effect is expected to be similar to that of the last ten years, with the new platform driving deeper multichannel penetration and expanding the market. The primary effect, however, will be to further diminish cable’s share to 61% while increasing multichannel homes by nearly 20 mil. Kagan expects solid subscriber growth from DBS in the near term, waning a few years out as local-into-local and HD local penetration matures. At the end of the 10-year horizon, Kagan projects satellite will notch more than six mil. net new subs to total more than 33.5 mil. by 2015. Despite the lack of a competitive solution to the return path issue, DBS will continue to be a major player in the multichannel market through its established base and strategy of targeting underserved markets such as rural areas and international communities. In addition, new technologies are making features such as VOD and interactive, once the sole domain of cable, available via satellite and narrowing the competitive divide. And with the launch of new satellites, DBS operators will have more capacity to offer more high definition channels in the near term than their counterparts.

Sub-pies-web.jpg

Other key findings and projections from include:

· In 2005, subscriber additions to DBS declined 29% from the previous year as the satcasters were hit with higher churn and increasing competition. The start of 2006 continued the trend with Q1 net adds down 50% year-over-year at DIRECTV and 31% at EchoStar. Full year results are expected to be 1.8 mil. net adds, 22% below 2005 totals. · The multichannel pie has expanded significantly over the past decade, growing 38% from 68 mil. at end-1995 to 93.8 mil. at end-2005 (before netting out cable/DBS duplicates). But DBS’s addition of nearly 25 mil. subs over the last ten years has shrunk cable’s share of the market by more than 20 points · Short term, DBS has lots of capacity coming online and an advantage in beaming national channels. Telcos have only 20-25 Mbps for video, data and phone, limiting them to just one HD stream, and cable is already nearing capacity at recently upgraded plants.. THE STATE OF DBS (8TH EDITION) Publ 20060928

Study shows social networking a prime channel to distribute online video

Parks: Users who frequent social networking sites such as MySpace show a predilection for online video, with 55% viewing streaming videos and 21% downloading long-form videos on at least a monthly basis.

This correlation between social networking Websites and Internet video services is even more dramatic when comparing social networking users and non-users. People who visit a social networking site at least weekly are overall six times more likely to download long-form videos and 1.5 times more likely to view streaming Internet videos than are those who do not use these Websites.

Whether the business model is free video streaming backed by advertisements or the sale of online movies and TV shows, social network Websites are well positioned to become strong contenders in the Internet video business,. On the other hand, online video Websites, if they are to be competitive, need to beef up their social networking features to attract and retain users.

Media companies with online assets also have the challenge of attracting older users, who are likely to have more disposable income but are not yet part of the social networking scened. Currently, two-thirds of frequent social networking users are younger than 24, an age group that typically includes heavy users of digital entertainment. In order to approach older demographics, these companies need to seek alternatives.

Social networking sites such as MySpace and Facebook are effective in reaching a young and dynamic Internet audience, but the question is what’s next?. Besides monetizing their social networking assets, large media companies need to attract older demographics to social networking or leverage other virtual hangouts that appeal to older Internet users, such as peer-to-peer communities, which have a slightly older audience, or special-interest websites like iVillage.

Internet Video: Direct-to-Consumer Services Publ 20060928

SaConverged services will drive Carrier Ethernet deployments

Visiongain: Carrier Ethernet has gained momentum worldwide and deployments will expand in 2007, particularly as service providers look towards converged services and mobile operators increase their focus on HSDPA.

Revenues from Carrier Ethernet services have already started to replace those that would originally have been commanded by mainstream WAN technologies – a trend that will gain even stronger traction in the medium term, as standards are further refined and services become more commoditised and competitive. Visiongain estimates that Carrier Ethernet will realise revenues in excess of $2 billion by 2009, with revenues relatively evenly distributed across the world’s main regions.

Carrier Ethernet has over the past year seen rapid development from standards bodies, vendors and service providers. Originally a technology that started out for the MAN, it has now become an offering that traverses borders and continents.

Continuous and aggressive technical developments have made Carrier Ethernet even more viable to a larger market space. Although certain challenges present themselves as inhibitors, the benefits have proven their weight and driven the technology to become one of the highest priority services for today’s service providers,.

The strongest drivers will be the ubiquitous nature of Carrier Ethernet to offer converged services; its ability to offer flexible and granular levels of bandwidth increments in shorter re-provisioning times; and its competitive pricing for higher bandwidths that can be used to meet the application needs for end customers.

Carrier Ethernet is no longer a threat to any segment, but an opportunity that must be availed to remain a competitor in the market,.

This report analyses the current status of Carrier Ethernet products, services and players. The report discusses Carrier Ethernet within the wider telecoms landscape, comparing it to competing and complimentary technologies. It identifies and covers main drivers and inhibitors, Carrier Ethernet’s place on the technology map, key applications for various markets, and details the market evolution through 2011. Carrier Ethernet report 2006-2011: Market analysis and forecasts

Publ 20060928

BlackBerry Surrounded By Competitive Forces in the Enterprise Market: IDC Forecasts a Battle with Two Fronts

IDC: As a relatively untapped market, converged mobile devices for the enterprise presents tremendous growth potential with significant opportunities for differentiation and specialization arising from stringent IT requirements and increasing demand for additional features and functionality. This is creating a fiercely competitive environment comprised of converged mobile device vendors battling for dominance within the mobile enterprise. IDC expects enterprise converged mobile device shipments to reach 63 million units worldwide by 2010, up from 7.3 million in 2005. While the Research In Motion (RIM) BlackBerry has become the gold standard for the enterprise device market, Microsoft's involvement with Motorola, Palm, and others, as well as Nokia's commitment to an end-to-end strategy will threaten to weaken RIM's stronghold in the enterprise market.

RIM is the undisputed market leader in the enterprise with more than 5.5 million subscribers worldwide and FY06 sales around $2 billion. But after nearly eight years, RIM is now challenged with defending its leading position as other vendors emulate its offerings. IDC believes Nokia and Motorola are in strong positions because of their leadership in the overall mobile phone market, giving them influence as well as key positions within the value chains to challenge the work of RIM. The Motorola Q and Nokia E61 are high profile devices intended to generate buzz and to resonate with business users on both a functional and personal level.

In the fight for the enterprise market, both Motorola and Nokia are leveraging well-established software companies. While Nokia has greatly expanded its product breadth and end-to-end solution with the acquisition of Intellisync, Motorola has powerfully combined forces with Microsoft in offering Windows Mobile 5.0. Microsoft is the key partner that gives certain device vendors such as Motorola, HTC, Samsung, and Palm the ability to attack the core BlackBerry user base. Microsoft is ramping up IT policy support and is seeking to exploit its dominant position in the IT systems of enterprises worldwide as well as with end users familiar with the Windows OS and Microsoft applications. Windows Mobile-supported devices to undergo the fastest growth, comprising 32.3% of the market share by 2010.

Several BlackBerry clones have previously attempted to challenge RIM's reign in the enterprise market, but this is a more formidable strike. The timing is right for a more powerful attack against RIM's BlackBerry as competitive forces converge. Nokia is offering an end-to-end solution of its own, while Motorola and Palm, among others, are leveraging Microsoft's Windows Mobile 5.0 and Microsoft Exchange.

This IDC study, worldwide Enterprise Converged Mobile Device 2006 Vendor Analysis: Attack of the BlackBerry Clones

Publ 20060828

WLAN and WiMAX GaAs Device Demand Commands 23 Percent of Total GaAs Market by 2010. RF Modules Require GaAs for Linearity, Efficiency and High Frequen

Strategy Analytics: on the WiMAX and WLAN markets, GaAs Device Demand from WLAN Market: 2005-2010 and , demonstrate that GaAs device demand from these two applications will show significant growth, with overall demand approaching $1 billion by 2010, second only to demand from the cellular handset market.

While the WiMAX market will remain in the early stages, GaAs semiconductors will dominate specific functions in the RF module and demand will grow at a CAAGR (compound annual average growth rate) of 69 percent. The WLAN market continues to ramp and is moving to higher frequencies and multi-mode and multi-band architectures that play to the advantages of linearity, efficiency and high frequency capabilities offered by GaAs.

In terms of GaAs demand, the WiMAX and WLAN markets will emulate the cellular handset market, notes Asif Anwar, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies service. Without expecting all-GaAs solutions, we do predict that amplifiers and switches will be the primary market for GaAs technology, with silicon technologies dominating the transceiver and baseband markets.

The adoption of MIMO and 802.11n, which require multiple PAs, transceivers and more complex front-end modules, will have a big impact on GaAs demand. While WiMAX will still be in an early stage of rollout in 2010, certification of WiMAX equipment has started and coverage areas have begun to expand beyond basic trials, providing a real target market for GaAs suppliers. WiMAX Market Forecast: 2005-2010

Publ 20060928

At 26.8% Growth, Online Ad Spending Slows, But Is Still Strong

eMarketer:Internet ad spending will still top $25 billion by 2010. Advertising spending on the Internet, which has enjoyed 30%-plus growth rates over the last two years, will slow slightly to 26.8% in 2006. In dollars, that 26.8% growth year over year equals $15.9 billion for 2006. And, even as spending growth subsides, the continued positive gains will push US online ad spending over $21 billion in two years and past the $25 billion mark by the end of 2010.

Any other medium's executives would be delighted to see ad spending grow at those rates. Put into perspective any commentary you might hear — and you will — that mistakenly devalues the online advertising market.

As a percentage of ad spending for total media, online ad spending is predicted to be 5.7% in 2006, climbing to 8.9% by 2010. But as more spending moves from traditional media to the Internet, online spending gains are supporting the growth of total media ad spending. In 2007, for example, total media ad spending will only hit 1.4%. But take the 15.1% Internet growth out of the equation, and total media spending drops to a flat 0.6% gain.

Paid search will continue to dominate ad spending, with a more than 40% share of each year's totals from 2005 through 2010. But as more major advertisers flock to the Internet to buy TV-style ad inventory, the share of rich media including video will double from a 9% share in 2006 to 18% in 2010. Meanwhile, display ads will drop from 21% to 17.8% over the same time span.

US Ad Spending 2006: From Pea

Publ 20060928

Wednesday, September 27, 2006

VoIP Services as New Market Threat to Telecom IncumbentsVoice Service Communication Patterns

Yankee: Web-based VoIP applications are posing a competitive challenge for traditional service providers in their drive to maintain customers. While telcos typically focus their attention on the competition from cable companies and wireless carriers, a new market threat comes from Internet-based voice applications, which offer consumers a compelling service that enables low-cost or free calling across international boundaries.

The build-out of voice services including Skype, Google Talk, Yahoo! Messenger with Voice, Microsoft's Windows Live Call and AOL’s AIM Phoneline have heightened consumer awareness of VoIP by enabling free calling between PC-to-PC users. However, it is the new and unique contextual applications for voice that will be a draw for the technologically advanced consumer over the next five years and challenge telecom, mobile and cable companies to provide comparable voice services. Yankee Group finds that contextual applications for voice - where users discuss their interactions while gaming, shopping or building content - is the most compelling service that will drive consumers to greater usage of web-based VoIP services. Currently, gaming has the greatest potential for unique web voices for consumers in this arena.

With a footprint larger than the telcos and cablecos, as well as price points far below premium mobile services, web-based VoIP applications are seen as a disruptive threat for traditional telcos in the industry right now. One way for telcos and cable voice operators to preserve their legacy voice customers is to build service partnerships with portals to gain some revenue in this emerging market.

Portals play an important role in the growth of online voice applications because their current audience share far exceeds the customer base of traditional service and cable providers. However, all web-based voice providers are not created equal: Skype has been strong in building out its services beyond the PC; AOL’s AIM Phoneline has made efforts at building out telco-like packages of minutes and Google is depending on developers to enhance its service provisions. It will be difficult for telcos alone to provide services similar to the new voice communications because of the enhanced content provision capabilities of web-based voice applications. Web Voice Services Challenge the Incumbents in Telecommunications

Publ 20060927

Process Manufacturing Fuels Another Boom Year for the Russian EAS Market

IDC: The Russian market for enterprise application suite (EAS) software expanded 21% in 2005 to $236 million in license and maintenance revenue and is expected to grow by more than 28% this year. Strong economic development created an environment in which end-user companies were ready to invest in IT. Moreover, the competitive environment has pushed enterprises to purchase software and solutions to help them better manage their resources.

Driven by a boom in spending on EAS software by chemicals manufacturers, process manufacturing was the largest single industrial sector investing in EAS in Russia last year. Representing more than 35% of spending, the sector fueled growth in the overall market. The second- and third-largest verticals, discrete manufacturing and communications, both contracted. Together, these three sectors accounted for nearly 55% of the market. Starting from a relatively low base, local and central government were the fastest growing sectors in terms of EAS spending.

Over the next few years exports of chemicals and petroleum products will continue to increase, creating a capital base for additional investments in EAS software. Moreover, many firms are looking to expand operations not just into the rest of the CIS but also abroad in places like the Middle East, China, and Western Europe. They are also looking to launch IPOs on foreign stock exchanges and acquire or merge with other international companies, requiring further development of EAS solutions to facilitate adherence to international standards and practices.

Four vendors accounted for more than 80% of EAS revenue in 2005: SAP, Oracle, local player 1C, and Microsoft Dynamics. In the top spot, SAP again dominated the market, with almost twice as much revenue as Oracle, which took second. Russia-based 1C made the most impressive gains, more than doubling its revenue in 2005 to move from fourth to third in the vendor rankings.

1C's use of franchising to spread awareness and demand for its products suggests that its business model could be a powerful tool for competing with the large international vendors, a, especially among small and medium-sized businesses, which is where the market will see the most growth in the next few years.

Enterprise resource management (ERM) software accounted for nearly 49% of EAS revenue in Russia last year. Demand for financial modules was high among both SMBs seeking to automate accounting and large firms getting ready to launch IPOs or receiving large volumes of foreign investment. Supply chain management represented the second-largest group of solutions on the Russian market with operations and manufacturing applications coming in third.

ERM was the fastest growing functional area in Russia in 2005. This will start to change this year, however, as the high end of the segment is saturated and users will seek to expand to other areas, particularly into customer relationship management and business analytics.

IDC's Russia Enterprise Application Software 2006–2010 Forecast and 2005 Vendor Shares

Publ 20060927

User-Generated Web Content Will Grow Rapidly Through 2010

InStat: User-Generated Content (UGC), such as that found on YouTube and MySpace, will continue to grow significantly in popularity and generate increasing revenue over the next several years. By 2010, the volume of downloads/views on these sites will surpass 65 billion, and revenues tied to UGC video are expected to exceed $850 million by 2010. Revenues are those directly linked to videos in the form of banner/skyscrapers, embedded video, Google Adsense, and/or branded pages/channels.

Democratization of media affords users the opportunity to express their opinions, rate content, and vote for their favorite videos. In addition, what may currently seem like ‘the Wild West’ is actually an industry that has started to see idiosyncratic ‘judiciary bodies’ and ‘rules of law’ imposed by each player within this market.

  • The size of downloads/views are estimated to eclipse 1.1 exabytes of data by 2010, with uploads growing to more than 9.1 petabytes.

  • 23% of the dozens of UCG sites studied currently support mobile access, with others making announcements for this support in the near future.

  • YouTube holds the highest market share for video, but MySpace has the most visitors.

Recent In-Stat research, User Generated Content--More than Just Watching the YouTube and Hangin' in MySpace

Publ 20060927

GPS-Enabled Location-Based Servicsaids (LBS) Subscribers Will Total 315 Million in Five Years

ABI: In 2011, the total population of GPS-enabled location-based services (LBS) subscribers will reach 315 million, up from 12 million in 2006. Put another way, that represents a rise from less than 0.5% of total wireless subscribers today to more than 9% worldwide at the end of the study's 5-year forecast period. Regions of greatest growth will be North America and Western Europe. The Asia-Pacific region will have strong growth as well, but it will vary by market. Leaders South Korea and Japan will continue to be engines of LBS growth, but North America, which has seen strong business use for several years, is expected to see significant consumer uptake in 2007 and beyond. The LBS market took off first in South Korea and Japan, driven by personal navigation and some family- and people-finder services. In the United States, Nextel and Sprint initially drove LBS adoption with a focus on fleet applications. In 2006 Verizon Wireless also entered the market and has three applications available currently, with as many as five more planned for rollout over the coming months. Market growth in Western Europe has been limited by the fact that very few GSM/WCDMA handsets have GPS, but ABI Research expects that beginning in 2007 and increasing in 2008, many more WCDMA 3G phones will contain GPS chipsets, allowing operators to offer LBS. Anticipating this, at least one additional operator will be offering GPS-enabled LBS in Europe starting late in 2006. ABI Research expects that in 2007 at least four major operators in Western Europe will follow suit. GPS services will drive the adoption of UMTS 3G handsets. 3G growth has been limited by customers' low uptake of many 3G services, making it uneconomical for operators to subsidize these handsets heavily. GPS-enabled LBS is expected to lead subscribers to use more 3G data services, and thereby to drive overall 3G handset sales. Location-Based Services

Publ 20060927

Tuesday, September 26, 2006

Video Game Market to Reach $44 Billion by 2011

DFC: The worldwide video game and interactive entertainment industry is expected to grow from about $29 billion in 2005 to as much as $44 billion in 2011. This forecast includes revenue from video game hardware and software, dedicated portable system hardware and software, PC games, and online PC and console games.

The biggest area of uncertainty is which video game console system will be dominant. The video game business is changing in major ways. Sony and Nintendo are shaking up the industry with new business models. These are uncertain times where neither conventional wisdom nor historical data necessarily predict who the winners and losers will be during the next three-to-five years.

The market using three different scenarios for each of the new video game systems, the Sony PlayStation 3, the Nintendo Wii and the Microsoft Xbox 360. Overall market growth is about the same under all scenarios. However, under each scenario individual platforms have very different results. Uncertainty is truly the keyword going forward. Three solid video game systems are competing for market share and it will probably be two to three years before a true leader is determined.

Cole also points out that while any of the systems could be the market leader, none of the new systems is likely to have the market dominance the PlayStation 2 saw. At its peak PlayStation 2 software alone accounted for about 30% of worldwide interactive entertainment revenue. By 2011 we forecast that all console software combined will only account for about a third of worldwide sales. With multiple console platforms, a growing portable market and online game market, Cole argues that platform diversity is the key to success.

worldwide Market Forecasts for the Video Game and Interactive Entertainment Industry Publ 20060926

Video Game Market to Reach $44 Billion by 2011

DFC: The worldwide video game and interactive entertainment industry is expected to grow from about $29 billion in 2005 to as much as $44 billion in 2011. This forecast includes revenue from video game hardware and software, dedicated portable system hardware and software, PC games, and online PC and console games.

The biggest area of uncertainty is which video game console system will be dominant. The video game business is changing in major ways. Sony and Nintendo are shaking up the industry with new business models. These are uncertain times where neither conventional wisdom nor historical data necessarily predict who the winners and losers will be during the next three-to-five years. Crossroads: Sony, Microsoft, Nintendo and the Battle for the Console Market.

The market using three different scenarios for each of the new video game systems, the Sony PlayStation 3, the Nintendo Wii and the Microsoft Xbox 360. Overall market growth is about the same under all scenarios. However, under each scenario individual platforms have very different results. Uncertainty is truly the keyword going forward,. Three solid video game systems are competing for market share and it will probably be two to three years before a true leader is determined.

While any of the systems could be the market leader, none of the new systems is likely to have the market dominance the PlayStation 2 saw. At its peak PlayStation 2 software alone accounted for about 30% of worldwide interactive entertainment revenue. By 2011 we forecast that all console software combined will only account for about a third of worldwide sales. With multiple console platforms, a growing portable market and online game market, Cole argues that platform diversity is the key to success. Worldwide Market Forecasts for the Video Game and Interactive Entertainment Industry Publ 20060926

Consumers in Sweden and the Netherlands Lead Other Countries in the Adoption of Online Yellow Pages and Local Search

Kelsey: RKey differences in how consumers around the world find local shopping information, indicating that no single global local search strategy applies to all regions.Consumers in Sweden and the Netherlands are more inclined to turn to online local advertising sources, such as Internet Yellow Pages and local search, than consumers in other European Union countries, the United States, New Zealand and Australia.

As we collect data from around the world, it is becoming very clear that there are vast differences in how consumers are finding local shopping information, which suggests there is no one global local search strategy.

The research, conducted in conjunction with Buxton Independent Consulting, indicates online Yellow Pages and local search are clearly gaining traction in Sweden and the Netherlands—two highly technologically advanced countries—where consumers turn first for local business information to:

  • Sweden: print Yellow Pages (33%); online Yellow Pages (30%); local search (17%)

  • The Netherlands: print Yellow Pages (28%); online Yellow Pages (11%); local search (25%)

By comparison, consumers in other regions around the world are significantly more inclined to turn first to print Yellow Pages to find a local business:

  • EU Countries (the U.K., Spain, France, Italy and Germany): 52% on average

  • Australia, New Zealand and the U.S.: Each more than 60%

online local advertising sources Publ 20060926

Western European Blended Services Market Potentially Worth A Cumulative €14.0B for Carriers Over Five Years

Lucent Technologies: communications operators’ potential market for blended lifestyle services in France, Germany, Italy, Spain and the UK combined could reach a cumulative total of €14.0B by 2011.

Lucent projected the potential market size by surveying a targeted market sample – nearly 1,500 consumers and enterprises – across those five countries. To accurately assess interest in blended services, Lucent simulated market conditions using a leading statistical methodology known as discrete choice modeling. This method enabled Lucent to determine which blended services, consisting of key applications sets, will generate the greatest interest at which price points. The market simulation has the ability to assess likely product and service success before a product is ready for the test market.

The research objective was to identify the value, market demand and willingness to pay for blended lifestyle services – that is the inter-working of voice, video, data and multimedia applications to produce personalized services. Among the key findings:

  • Twice as many consumers and enterprises are willing to pay more for blended services (inter-working or blending separate applications or services into a single service), than those who are willing to pay more for bundled services (a package of separate applications or services) alone.

  • Early adopter consumers are more likely to be either young males looking for fresh, multiple applications to get things done or somewhat older consumers with a higher overall income (greater than €45K) seeking simple solutions for their technology needs.

  • Early enterprise adopters are large, multi-location corporations seeking portability, company network access, and flexibility of communications with more emphasis on the quality rather than the price of blended services.

  • Convenience is more important for very small companies (10 or fewer employees) than other enterprises, while portability and remote access to the company network are also important but not rated quite as high as with the large firms. These companies are more price sensitive and look for technology upgrades to have a more immediate impact on their bottom line.

  • More than 60 percent of enterprises and consumers across five Western European countries are willing to switch providers to get blended services.

Based on survey responses, consumers’ most preferred blended service was a Family and Friends package containing key applications related to messaging, location-based and presence services, call management, calendar, and dual mode phone capabilities. Estimated revenue for Family and Friends peaked at a price of €39 a month and a theoretical 25 percent market share of the total number of individuals who prefer this service. The total consumer market for blended services is projected to have a five-year cumulative revenue opportunity of €6.6B by 2011 with an estimated 6.3 million subscribers.

Enterprises’ most preferred blended service was a Manager’s package, which emphasized communications management, containing a combination of messaging, advanced call management, conferencing, location-based services, and security applications. Estimated revenue for the Manager’s package peaked at a price of €59 a month and a theoretical 28 percent market share of the total number of individuals who prefer this service. The total enterprise market for blended services is projected to have a five-year cumulative revenue opportunity of €7.4B by 2011 with an estimated 6 million individual workers who would be subscribers.

Lucent’s Western European primary research shows operators that now is the time to pursue the blended services market. The operators can benefit from increased revenue as well as a greater share of the end-user’s telecom wallet and operational efficiencies that come with deployment of an IP Multimedia Subsystem infrastructure for blended services.

In addition to the consumer adult research, Lucent also completed an adjunct study of the Western European Youth segment, including tweens (8-12 years old) and teens (13-17). Among its highlights, the study found that European teenagers, with the authority to spend, are more likely to expect to pay more for blended services than their parents would expect to pay. The teens also are significantly more likely than their parents to place greater importance on the always on feature and the ability to use voice, video, data simultaneously during the same communication session.

The consumers surveyed for the Western European research were individuals ages 8 to 65, who use mobile phones, have high-speed Internet access at home and are one of the primary decision-makers regarding communication services for the household. The enterprises surveyed were a mix of micro, small, medium and large enterprises that were not telephone service providers or ISPs, and the business contact was a purchase decision-maker.

Western European Blended Services Market Publ 20060926

Digital, HD and 1080p TV Brand Shares and Forecasts Available in DisplaySearch Quarterly Global TV Report: Samsung Was #1 in HD and Total TV Revenues

DisplaySearch: The TV market is rapidly migrating to digital and 720p/1080i HDTVs with even higher resolution 1080p TVs now becoming widely available due to their improved performance and ever narrowing price gap. However, penetration varies significantly by region and technology. This report provides digital, HD and 1080p TV shipments by technology, region and brand while also projecting their costs, prices and shipments through Q4'10. It is a must-have report for everyone in the TV supply chain. In Q2'06, global digital TV shipments rose 22% Q/Q to 15.5M units, accounting for 37% of TV units and 80% of TV revenues, up from 29% of units and 74% of revenues in Q1’06. North America and Europe each accounted for slightly over 5M or 34% of all digital TVs shipped. Japan had the highest digital TV penetration in Q2'06 with digital TVs accounting for 77% of all TVs shipped into that market, up from 66% in Q1’06, and 97% of revenues, up from 94%. North America is expected to lead in digital TV penetration from 2007 as a result of its digital tuner mandate. By technology, LCDs rose from 58% to 61% of digital TVs shipped in Q2'06 with digital CRTs falling from a 22% to a 19% share of all digital TVs. By brand, Samsung led in digital TV shipments with a 17.4% share, up slightly from 17.1% in Q1'06. Globally, Samsung was #1 in digital CRTs, #2 in digital CRT RPTVs, LCDs, MD RPTVs and #3 in PDPs. HDTVs rose 29% Q/Q to 11.2M units, accounting for 27% of all TVs shipped in Q2'06. All regions experienced significant growth in HD penetration. Japan's HD penetration surged from 50% to 64% to lead in HD penetration. However, Europe actually led in HDTV shipments at over 4M due to the size of the European market and their preference for flat panel TVs, which are predominantly HD. As more HD programming becomes available and Europeans remain focused on flat panel TVs, Europe is expected to lead in HD shipments throughout the forecast. In terms of HD shipments by technology, LCDs led with 7.7M, up 34%, which amounted to a 68% share of all Q2'06 HDTVs, up from 66%. Plasma TVs had the fastest HD growth, up 60% to over 1.5M units. 70% of all plasma TVs were HD in Q2'06, up from 56% in Q1'06. HD penetration in PDPs is expected to be higher than in LCDs from Q4'07 due to its large size emphasis. In terms of brand share worldwide, Samsung remained #1 in HD unit and revenue share at 22% and 18% respectively followed by Sony at 12% and 14% respectively. By region on a unit basis, Hisense led in China, Sharp led in Japan and Samsung led in Europe, North America and ROW. By technology, Samsung led in CRTs and LCDs, Panasonic led in PDPs, TTE led in CRT RPTVs and Sony led in MD RPTVs. 1080p TV shipments for all TV technologies rose 42% Q/Q and over 1000% Y/Y to 331K units and a 1% share of the global TV market. On a revenue basis, 1080p TVs rose 36% Q/Q and 672% Y/Y to $1.1B and a 5% share. Japan led the way in 1080p penetration with 1080p TVs accounting for 17% of their Q2'06 TV revenues and 5% of unit shipments followed by North America with 1080p sets accounting for 7% of revenues and 2% of units. While Japan leads in 1080p penetration, North America led in 1080p shipments at over 160K units or a 49% share followed by Japan at over 100K units and a 32% share. By technology, LCDs rose from 53% to 58% of 1080p unit shipments with DLP overtaking LCOS with a 23% to 17% advantage and PDPs accounting for 1%. By brand on a unit basis worldwide, Sharp overtook Sony on the strength of its 37 and 45 LCD TV shipments and held a 27% share with Sony at 17%. On a revenue basis, Sony led with a 27% to 19% advantage due to its focus on larger sizes. By region on a unit basis, Sharp led in Japan, Sony was #1 in North America, Philips led in Europe, Hisense led in China and Samsung led in ROW. Total TV shipments rose 7% Y/Y to 42.3M units supported by the World Cup, lower flat panel TV prices and increased HD programming and content. Europe, Japan and North America all gained share in Q2’06 at the expense of China and ROW as the CRT replacement accelerates as flat panel TV prices become increasingly attractive. With units, ASPs and average diagonal all rising, revenues were up 45% Y/Y to $23.8B. Q2'06 is expected to be the peak quarter for Y/Y revenue growth as flat panel price reductions continue and begins to slow. In Q2'06, LCD TV shipments were up 135% with plasma TVs up 95%. Due to the success of larger LCDs and plasma TVs, 40-44 TVs became the #1 category on a revenue basis for the first time with a 23% share with 40 and larger TVs accounting for 38% of revenues, up from 34%. In terms of worldwide TV shipments and revenues by supplier, LGE overtook TTE to become #1 on a unit basis on 24% Q/Q growth with double-digit growth earned in North America, Europe and ROW. Samsung moved back to #2 on share gains in CRTs, LCDs and MD RPTVs through the successful launch of its new product line. The top five brands grew their share from 40% to 44% on a unit basis and from 48% to 53% on a revenue basis. The Korean brands each earned over 10% unit share for the first time, appearing to be the largest beneficiaries of the World Cup. Samsung remained #1 on a revenue basis growing its share to 15% on strong unit growth and a high HD share. It was in the top three in all technologies. By technology on a revenue basis, Sony remained #1 in LCD TVs and MD RPTVs, Panasonic remained #1 in PDP TVs, Samsung overtook TTE in CRTs, and TTE remained #1 in CRT RPTVs.

Table 1: Worldwide TV Unit Share

Q2'06 Rank

Brand

Q1'06 Share

Q2'06 Share

1

LGE

8.9%

11.4%

2

Samsung

8.9%

10.6%

3

TTE

10.1%

9.0%

4

Philips

6.6%

7.1%

5

Sony

5.4%

6.3%

Others

60.1%

55.6%

Total

100%

100%

Table 2: Worldwide TV Revenue Share

Q2'06 Rank

Brand

Q1'06 Share

Q2'06 Share

1

Samsung

13.1%

14.6%

2

Sony

10.8%

11.0%

3

LGE

8.1%

9.8%

4

Panasonic

7.2%

9.5%

5

Philips

8.8%

8.6%

Others

52.0%

46.6%

Total

100.0%

100.0%

Also added to the latest issue were digital and HD CRT cost models and more granularity on MD RPTV costs. For more information on DisplaySearch's Quarterly Global TV Shipment and Forecast Report Publ 20060926

RFID in Manufacturing can boost productivity Frost & Sullivan estimates revenues for 109 million dollars by 2012

Frost: The ability of radio frequency identification (RFID) technology to make the tracking and managing of assets more efficient and make inventory more visible offers an ideal solution for companies seeking to improve their manufacturing performance. At the same time, as companies strive to tighten their brand security and protect their products from counterfeiting, RFID is emerging as the optimal solution to safeguard valuable products throughout the supply chain.The European RFID Markets for Automotive, Aerospace and Industrial Manufacturing generated revenues of $23.7 million in 2005 and estimates this will reach $109.3 million in 2012.

The unique features of RFID technology enable the development of a constant stream of innovative applications for manufacturing sectors,Research Analyst Rengarajan Srinivasan. The rising need to accurately track valuable assets and products is creating significant scope for the use of RFID across a range of industrial sectors.

The highly competitive nature of modern manufacturing is driving manufacturers to reduce costs and adapt business to increasingly demand-oriented systems. In this context, RFID can enhance product availability for customers and boost productivity across the entire production process. Moreover, its ability to enable just-in-time inventory control and asset management will allow companies to reduce order turn-around time and effectively manage fluctuating demand in automotive and consumer products markets.

However, the return on investment (ROI) from RFID deployments is difficult to quantify, as the full benefits of the technology depend on its degree of integration into wider business processes. Difficulty in identifying a clear stand-alone ROI, coupled with its high implementation cost, poses a significant challenge to prospective entrants into the RFID market. The excitement and euphoria surrounding RFID in recent years, fuelled by the early retail mandates and pilot schemes, have created unrealistic expectations of the technology among many industries.

As the RFID market starts the transition from technology trial stage towards early adopter phase, a key challenge will be to clearly identify the range of expected benefits. The uniqueness of each new RFID implementation due to varying company environments compounds this challenge, making meaningful comparisons of new systems with existing implementations unreliable. Over-optimistic or unclear objectives for implementing RFID are likely to have a negative impact on ROI and deter wider adoption.

The maximum ROI achievable from the adoption of RFID can only be realised if the designing of business processes allows operation within real-world environments and well-integrated IT infrastructures.

Manufacturers need to establish a strong business case for implementing RFID systems and develop flexible frameworks for evaluating ROI. New entrants are likely to have a better understanding of the nature of ROI that is practically achievable from the experience of early adopters and increasing numbers of credible pilot schemes.

European RFID Markets for Automotive, Aerospace and Industrial Manufacturing Publ 20060926

Consumer Electronics Will Become the New Growth Market for Wi-Fi

ABI: While consumer electronics today rely largely on physical media and on broadcast delivery of entertainment content, the market in the midst of a major shift to a greater reliance on network-based delivery. Wi-Fi networking is expected to become a key enabler for delivery and redistribution of this content in the home, particularly for retail consumer electronics hardware. The total number of Wi-Fi-enabled consumer electronics devices will grow from just 40 million shipped in 2006 to nearly 249 million in 2011. From the enormous interest in online gaming to the rapid emergence of new Internet distribution channels for top-tier movie and TV content, the need for connectivity in mainstream consumer electronics is growing rapidly. While the consumer Wi-Fi market has previously consisted largely of routers, gateways and adapters, that as the market evolves towards digital distribution, its growth will be fueled by the inclusion of embedded Wi-Fi in consumer electronics. The market today is led by portable gaming consoles, as both Nintendo and Sony have equipped their latest generation devices with Wi-Fi for multiplayer and online gaming. The new Zune from Microsoft signals the beginning of a large scale movement towards embedded Wi-Fi in portable media players, while camera vendors such as Nikon, Kodak and Canon have all embraced Wi-Fi in their products. Line-powered devices such as gaming consoles, DVD players and audio receivers are all expected to see high attach rates for Wi-Fi during the forecast period. The development of a market for Wi-Fi-enabled consumer electronics has been hampered by technology limitations such as power consumption, but it has also been delayed by consumer electronics vendors' hesitation as they waited to see what would happen with 802.11n. With the 802.11n standard set to be ratified in a little over a year, the Wi-Fi Alliance's decision to certify solutions based on a draft 2.0 for 802.11n, and vendors' intentions to release products based on the current Wi-Fi protocols, this market is set for growth. Wi-Fi in Consumer Electronics, Publ 20060926

Consumer Electronics Will Become the New Growth Market for Wi-Fi

ABI: While consumer electronics today rely largely on physical media and on broadcast delivery of entertainment content, the market in the midst of a major shift to a greater reliance on network-based delivery. Wi-Fi networking is expected to become a key enabler for delivery and redistribution of this content in the home, particularly for retail consumer electronics hardware. The total number of Wi-Fi-enabled consumer electronics devices will grow from just 40 million shipped in 2006 to nearly 249 million in 2011. From the enormous interest in online gaming to the rapid emergence of new Internet distribution channels for top-tier movie and TV content, the need for connectivity in mainstream consumer electronics is growing rapidly. While the consumer Wi-Fi market has previously consisted largely of routers, gateways and adapters, that as the market evolves towards digital distribution, its growth will be fueled by the inclusion of embedded Wi-Fi in consumer electronics. The market today is led by portable gaming consoles, as both Nintendo and Sony have equipped their latest generation devices with Wi-Fi for multiplayer and online gaming. The new Zune from Microsoft signals the beginning of a large scale movement towards embedded Wi-Fi in portable media players, while camera vendors such as Nikon, Kodak and Canon have all embraced Wi-Fi in their products. Line-powered devices such as gaming consoles, DVD players and audio receivers are all expected to see high attach rates for Wi-Fi during the forecast period. The development of a market for Wi-Fi-enabled consumer electronics has been hampered by technology limitations such as power consumption, but it has also been delayed by consumer electronics vendors' hesitation as they waited to see what would happen with 802.11n. With the 802.11n standard set to be ratified in a little over a year, the Wi-Fi Alliance's decision to certify solutions based on a draft 2.0 for 802.11n, and vendors' intentions to release products based on the current Wi-Fi protocols, this market is set for growth. Wi-Fi in Consumer Electronics, Publ 20060926

Asia Pacific Leading Metro Ethernet Services Market

InSat: Asia Pacific (APAC) is leading the market adoption of metro Ethernet services, as Japan and South Korea companies are entering the mass adoption stage,. The APAC market registered 0.632 million business metro Ethernet service subscribers in 2005. Most of them were in Japan and South Korea, and consisted mainly of small and medium-size enterprises that value the cost-effectiveness of metro Ethernet services for inter-office connectivity and high-speed Internet access. The number of metro Ethernet service subscribers among APAC enterprises is forecasted to grow to over 2.648 million by 2010. As service providers realize that the bandwidth flexibility metro Ethernet offers to enterprise users is greatly welcomed by customers, they will put more effort into developing market opportunities around basic metro Ethernet connectivity in the next five years.

  • For service providers, marketing and customer education will play an important role in getting customers to understand and subscribe to metro Ethernet services.

  • A wide selection of value-added services will help operators to generate sustainable revenue from customers.

  • In the international sector, major regional and international bandwidth providers position metro Ethernet as a good replacement of legacy frame relay, and will accelerate market adoption.

In-Depth Analysis: Metro Ethernet Services in Asia

Publ 20060926

Europeans Nearly Fifty Percent More Engaged in Online Dating Compared to North Americalns

comScore: Dating. European Online Personals Category up 26 Percent versus Year Ago. European Internet users are far more engaged in online dating than those in North Americal. , 18 percent of European Internet users (38.2 million) visited online personals sites in July compared to a slightly lower 17 percent of North Americaln Internet users. However, European visitors viewed an average of 310 pages per visitor in July – 44 percent more pages than their North Americaln counterparts, who averaged only 216 pages per visitor. Within Europe, German Internet users were the most active in July, viewing an average of 446 pages per visitor per month, compared to 343 pages in France and 213 pages in the U.K.

Online Personals Category – Key Statistics by Country/ Region

July 2006 –North America, Europe, U.K., French and German Online Populations, Age 15+

Home and Work Locations

Source: comScore Word Metrix

North America

Europe

U.K.

France

Germany

Total Online Population (000)

172,700

215,500

30,000

23,800

32,000

Online Personals Unique Visitors (000)

29,100

38,200

6,900

4,700

7,300

Online Personals Reach (%)

17%

18%

23%

20%

23%

Y/Y Growth Rate – Total Online Population

4%

11%

4%

7%

9%

Y/Y Growth Rate – Visitors to Online Personals

0%

26%

26%

23%

22%

Average Online Personals Pages per Month

216

310

213

343

446

The growth rates for users of personals sites in North Americal and Europe are also remarkably different, as the online personals audience in North Americal remained flat compared to last July, while the personals audience in Europe grew 26 percent.

In North Americal, large online personals sites like Match.com and Yahoo! Personals still lead the rankings in terms of reach, but their growth rates have slowed in the past year, commented Bob Ivins, managing director of comScore Europe. In Europe, more specialist local sites such as Meetic in France and iLove in Germany have become successful, experiencing double-digit growth and dominating the category in their home countries.

Online Personals Sites Attracting Most Visitors – By Country

July 2006 – North America, Europe, U.K., French and German Online Populations, Age 15+

Home plus Work Locations

Source: comScore World Metrix

#1 Online Personals Site

Total Online Reach

Reach in Personals Category *

North America

Yahoo! Personals

3%

18%

U.K.

DatingDirect.com

7%

31%

France

Meetic

11%

54%

Germany

iLove.de

11%

48%

* Unique visitors to the site divided by unique visitors to the category.

The leading North Americaln online personals sites, which are generally subscription-based, are being pressured by free social networking sites like MySpace and more specialized subscription-based services which focus on interests and functions. It will be interesting to see how the growth rates of the leading European players are affected as local social networking sites such as Bebo in the U.K. gain traction and as MySpace rolls out across Europe.

usage of the online personals category Publ 20060925