VoIP offers multiple revenue opportunities

VisionIntelligence: Measures considered by some operators to block, or make illegal, the use of VoIP services on their network are a waste of time, especially given the clear signals by consumer and business users indicating a demand for these type of applications. There is money to be made from VoIP, arguing that VoIP products and services offer operator new revenue streams and means of growing their business – if they employ the right strategies. The number of residential VoIP users growing at a CAGR of 55.8% until 2011, with revenues reaching almost $2 billion in 2009.

Operators should focus on deploying IP-based networks rather than worrying about possible threats from VoIP. They ought to look at VoIP as an opportunity to develop new revenue streams.

Fixed-line operators are going to be forced to drastically alter their business models and move into mobiles as a result of the trend for fixed-to-mobile substitution among their subscribers. They will also have to bolster their involvement in the provision of Internet access to maximise their broadband exposure, adds Dr Aubertin.

Naked DSL, which allows customers to cancel their PST service while retaining their broadband DSL service, represents another big threat to fixed-line operators notwithstanding the damage that Skype and fixed-mobile substitution are causing to these operators.

VoIP is really going to take off once naked DSL becomes widely available, and service providers are closely watching legislative moves to make it happen. This is going to result in increased competition and is going to benefit consumers, concludes Dr Aubertin.

The VoIP market is growing in importance as European companies adopt IP strategies. The push for VoIP is going to be prominent in a number of segments within the business and consumer markets, offering significant opportunities for growth in the development of hardware and services.

Competition in Europe is already intense and VoIP activity is on the rise. ISPs are offering telephony services to their broadband users, and AOL, Wanadoo, BT broadband and many more are signing-up new users on a daily basis. Skype, Google and Yahoo are developing alliances and partnerships with Vodafone, 3 and other service providers in order to develop VoIP solutions that are going to be mass marketed to users on a global basis.

Visiongain also foresees strong demand for hosted IP telephony and IP-based PBXs in the enterprise market. The convergence of data, voice and multimedia is presenting vendors, service providers, and users with new opportunities to manage the delivery and utilisation of telecoms services. The PBX market will increase to 19.4 million lines shipped in 2009, accounting for over $5 billion in revenues. By 2011, 98% of all PBX shipments will be IP based. Hosted IP telephony will also see strong growth, with revenues exceeding $1 billion by 2009.

This report analyses the emergence of VoIP and Wi-Fi/cellular functionality in the European enterprise, business and consumer sectors. Detailed country forecasts are provided and discussed in terms of geographical and technological markets. The report also provides strategies and recommendations that are applicable to fixed and mobile operators, handset vendors, hotspot owners and ISPs. It discusses measures that companies need to implement in order to remain competitive. VoIP in Europe 2006-2011

Publ 20060427

Online games market in India forecasted to exceed $200 million in 2010

Pearl Research: The online games market in India will exceed $200 million in 2010. , While long dormant, the online games market in India is starting to heat up. Conservatively,the Indian online games market to exceed $200 million in 2010. India in 2006 is often compared to China in 2001, when China’s games market started to develop and an online games culture started to form. Within a decade, India has the potential to emerge as one of the top online markets in Asia, along with China, Korea and Taiwan. The adoption of online games in India is inevitable as gamers, online publishers, telecoms, Internet cafe owners, and PC hardware manufacturers, all with a vested interest in growing the market, help nurture a games culture. - The online games market in India is being driven by the rapid adoption of the Internet with 39 million current users; increasing broadband penetration; growth in Internet cafes with more than 100,000 outlets; and a sizable middle-class with rising disposable income. Most importantly, game operators are promoting and educating consumers about online games including MMOGs.

- There were 39 million Internet users in India in 2005, a 54% YOY increase. The number of Internet users could exceed 100 million by 2007, making India the second-largest Internet market in Asia after China.

- In addition, there were more than 100,000 Internet cafes in India in 2005. Internet cafes can derive 30% to 40% of revenues from users playing games. Games are a sticky activity thus users tend to spend more time and money at Internet cafes that offer games. The latest trend is the opening of gaming-oriented cafes such as Sify’s Gamedromes to satisfy the growing demand for games. Internet cafes with broadband connections and fast PCs are increasingly replacing many of India’s outdated Internet cafes that use dial-up.

- Both local and international publishers are increasingly investing in the Indian online games market, as online games represent one of the few viable publishing models in a country where software piracy rates exceed 85%. In 2006 and 2007several prominent international publishers to enter the Indian online games market either through licensing agreements or joint-ventures. Certain online publishers believe it is critical to establish a presence in India, in order to capture consumer loyalty, develop brand equity and help define the market, before the market becomes saturated. Games? Wkipedia Red Viking The Online Games Market in India Publ 20060418

China mobile cartoons market will reach RMB 624 million by 2010

Analysis: China mobile phone cartoons market size exceeded RMB 720,000 in 2005, and registered users reached 120,000. Mobile cartoons market size will reach RMB 31.66 million in 2006, increasing 4300% year over year, and the market will reach RMB 624 million by 2010. Mobile cartoons market in China is currently in the initiation stage. There are some market inhibitors to be solved. Penetration rate of high-end terminals that support multimedia applications is still very low. Users' habits haven't established and user experience is far from users' expectations. In addition, the industrial cooperation model and profit model in the mobile cartoons market are still not clear. As users' recognition of mobile phone cartoons greatly increase after two years' market cultivation, the market will enter fast growth stage in 2006 and 2007. With the development of network environment, technology, terminal popularization, and the change of mobile phone cartoons market competition, the market expectation will reach the peak and begin to decline by 2008. In the fast growing stage, market entrants will increase sharply and market competition will get heavier.. Market polarization will occur among the small and midsize SPs and ISVs who have entered the market earlier. The industry will encounter an industrial adjustment in 2008 and 2009. China Mobile Cartoons Market 2006 Publ 20060427

China's telecom carriers' CAPEX to reach RMB 205.3 billion in 2006

Analysis: Chinese telecommunication operators will increase capital expenditure on GSM networks, new business/technology development, and IT information systems/support systems in 2006, while decrease expenditure on CDMA and PHS. China Telecom's capital expenditure will reach RMB 55 billion (excluding 3G CAPEX), decreasing 6.8% compared with the year 2005. China Netcom's CAPEX in 2006 will reach RMB 28.6 billion (excluding 3G CAPEX), increasing 2% YoY. China Unicom's CAPEX in 2006 will reach RMB 35.1 billion, decreasing 12.5% over the year 2005. China Mobile's CAPEX in 2006 will reach RMB 79.4 billion (excluding 3G CAPEX), increasing 16% YoY. The CAPEX forecast of China Mobile is smaller than China Mobile's own announcement of RMB 83.3 billion CAPEX. China Mobile's own CAPEX forecast includes implicit 3G expenditure. As 3G expectations increase, China Telecom and China Netcom will reduce investments on PHS. Analysys International is expecting China Telecom to reduce PHS expenditure from RMB 8.3 billion in 2005 to RMB 3.1 billion in 2006, decreasing 62% YoY. China Netcom's PHS expenditure is expected to reach RMB 3.5 billion in 2006, decreasing 30% YoY. China's telecom carriers' CAPEX to reach RMB 205.3 billion in 2006 expenditure on GSM networks Publ 20060427

VoIP offers multiple revenue opportunities

VisionIntelligence: Measures considered by some operators to block, or make illegal, the use of VoIP services on their network are a waste of time, especially given the clear signals by consumer and business users indicating a demand for these type of applications. There is money to be made from VoIP, arguing that VoIP products and services offer operator new revenue streams and means of growing their business – if they employ the right strategies. The number of residential VoIP users growing at a CAGR of 55.8% until 2011, with revenues reaching almost $2 billion in 2009.

Operators should focus on deploying IP-based networks rather than worrying about possible threats from VoIP. They ought to look at VoIP as an opportunity to develop new revenue streams.

Fixed-line operators are going to be forced to drastically alter their business models and move into mobiles as a result of the trend for fixed-to-mobile substitution among their subscribers. They will also have to bolster their involvement in the provision of Internet access to maximise their broadband exposure, adds Dr Aubertin.

Naked DSL, which allows customers to cancel their PST service while retaining their broadband DSL service, represents another big threat to fixed-line operators notwithstanding the damage that Skype and fixed-mobile substitution are causing to these operators.

VoIP is really going to take off once naked DSL becomes widely available, and service providers are closely watching legislative moves to make it happen. This is going to result in increased competition and is going to benefit consumers, concludes Dr Aubertin.

The VoIP market is growing in importance as European companies adopt IP strategies. The push for VoIP is going to be prominent in a number of segments within the business and consumer markets, offering significant opportunities for growth in the development of hardware and services.

Competition in Europe is already intense and VoIP activity is on the rise. ISPs are offering telephony services to their broadband users, and AOL, Wanadoo, BT broadband and many more are signing-up new users on a daily basis. Skype, Google and Yahoo are developing alliances and partnerships with Vodafone, 3 and other service providers in order to develop VoIP solutions that are going to be mass marketed to users on a global basis.

Visiongain also foresees strong demand for hosted IP telephony and IP-based PBXs in the enterprise market. The convergence of data, voice and multimedia is presenting vendors, service providers, and users with new opportunities to manage the delivery and utilisation of telecoms services. The PBX market will increase to 19.4 million lines shipped in 2009, accounting for over $5 billion in revenues. By 2011, 98% of all PBX shipments will be IP based. Hosted IP telephony will also see strong growth, with revenues exceeding $1 billion by 2009.

This report analyses the emergence of VoIP and Wi-Fi/cellular functionality in the European enterprise, business and consumer sectors. Detailed country forecasts are provided and discussed in terms of geographical and technological markets. The report also provides strategies and recommendations that are applicable to fixed and mobile operators, handset vendors, hotspot owners and ISPs. It discusses measures that companies need to implement in order to remain competitive. VoIP in Europe 2006-2011

Publ 20060427

Online Games at Sify iWays Grow 100%. Number of PCs for games doubled over last year

Pearl: The number of hours of its games played online at its iWay cyber café chain grew by over 100% during the last financial year. The number of PCs at these cafes for online games doubled to 6000 during this period. The online games market in India will exceed $200 million by 2010. The report indicates growth of the online games market in India is being driven by the rapid adoption of the Internet; increasing broadband penetration; growth in Internet cafes; and a sizable middle-class with rising disposable income. The report also cites that game operators are promoting and educating consumers about online games. iWays: We are growing the online games market in India by providing highly popular games such as Counter Strike at the iWays in agreement with the games creator, as well as CD based games. Players are then graduated to true online games such as A3, Sify’s MMORPG game customized for the Indian audience, to provide the online game playing experience. Today, over two thirds of Sify’s 3300 cafes across the country offer players the opportunity to play games online on 6000 games enabled PCs. This reach, coupled with the fast growing base of Sify broadband subscribers, gives Sify the opportunity to grow the market for online games in India. In addition to making online games widely available at iWays across the country, the strategy for A3 is to promote the game intensively in a city to rapidly grow the user base, then replicate the experience in other cities. This is done with on ground promotions, as well as contests where both experienced players and new players battle it out for top honors. To enable inter-café and inter-city competition, Sify has invested in dedicated servers so that the games played are over Sify’s network infrastructure.This ensures low latency and gives players a LAN like experience in terms of the speed and quality of the games. Sify’s agreement for the Counter Strike series, one of the world’s most popular First Person Shooter (FPS) games, enables a player at an iWay cafe to play with anybody in the world by connecting to international servers. In addition, Sify’s online 3D MMORPG game A3, currently in the open beta stage, is expected to go into the commercial stage by the middle of this year. Games? Wkipedia Red Viking Online games market in India

Publ 20060427

Service providers spending nearly 40% of capex on triple play

Infonetics:Global. Service providers around the globe see triple play services not merely as a means of increasing top-line revenue, but as a means of self-preservation. Network operators are redefining and realigning themselves to be the one-stop shop for all things digital for residential and enterprise subscribers, and they believe triple play services will give them the competitive edge they need to succeed.

Take as evidence the fact that North American, European, and Asia Pacific service providers participating in the study: report that on average nearly 40% of their capital expenditures were spent on triple play network equipment in 2005.

The majority of service providers in the study plan to further increase capex spending in the next 12 months on IPTV equipment, broadband CPE, broadband aggregation equipment, and voice over broadband equipment, and they expect revenue growth in all areas of triple play services in the next 12 months.

And a big chunk of revenue it is: The average percent of total company revenue from triple play services ranges from 43% to 48% between 2005 and 2007.

With nearly 40% of their capex budgets going to triple play service infrastructure, service providers are sending a clear message that the combination of voice, data, and video services is a long-term differentiator for them. Carriers are demanding complete interoperability, full standards compliance, and an open and flexible architecture from their suppliers to ensure the content and services they provide will work right out of the box and far into the future.

IP voice is a big draw for triple play providers, but it's video that's really the newest, most exciting, and most technically challenging part of triple play services, and IPTV is where all the action is. In fact, all but one of Infonetics' service provider respondents already offer IPTV, and that one offers it by 2007.

--  The top 2 drivers for respondent service providers deploying triple
  play services are 1) increased broadband revenue per user and 2) new
  revenue streams
--  58% of respondent service providers rate vendor interoperability a key
  technical challenge when rolling out triple play services
--  The most pressing business challenge triple play service providers
  face is securing broadcast and on-demand video content; acquiring content
  is also a challenge
--  iTV (interactive TV) is the fastest growing video service offered by
  service providers, bringing Internet capabilities directly to the TV
  screen, including instant messaging, shop at home, click to call and click
  to purchase capabilities, and, most significantly, online gaming services.
--  2/3 will deploy IP/Ethernet DSLAMs by 2007
--  67% rate low cost very important when considering IP set top box
  features
--  Though more respondents currently use Cisco for their triple play
  aggregation, when it comes to unaided brand awareness for triple play
  infrastructure providers, Alcatel leads Cisco, and Microsoft is third


Triple play?WikipediaRed Viking 

Service Provider Plans for IP Triple Play

 Publ 20060427

Fewer Outsourcing Megadeals Were Signed in 2005, But Market Will Continue to Grow

Gartner: Smaller Deals with Shorter Terms Will Increase as Maturing Markets Move Toward . As companies attempt to implement more multisourcing agreements, the number of megadeals awarded to a single service provider has declined. Megadeals are characterized as being worth more than $1 billion. In 2005, 11 outsourcing megadeals were awarded, a decline from 12 in 2004 and 16 in 2003. This is part of a trend we see in IT outsourcing (ITO) in which comprehensive, end-to-end contracts signed with a single vendor are declining. Even some existing megadeals are being re-competed and broken up among multiple providers that bring best-of-breed skills. Business process outsourcing (BPO) megadeals will continue to be the exception rather than the rule as most BPO activity will continue around smaller more-focused deals, primarily in the back-office and horizontal functions with human resources, finance and accounting. Although the contract value of individual outsourcing deals continues to decrease, there will be more of them and they will drive the outsourcing market to a growth rate of 7.3 percent from 2004 through 2009. The uptake in outsourcing as a business tool will continue and ITO will experience mature growth in 2006 at 5.1 percent, while the less-mature BPO market will grow faster at 8.7 percent in 2006. Gartner has maintained an Outsourcing Contract Trends Database since the early 1990s as a means of tracking the activity and trends in the outsourcing market for public and private organizations. All of these contracts publicly disclosed their dollar value and the duration, as well as the nature of their services and the name of the client and the outsourcer. The database is a comprehensive history of all publicly disclosed contracts, but is representative. Contracts from more than 400 outsourcing vendors, 12 industries and the major global regions are included. In regions with mature outsourcing practices such as North America and Western Europe, the decline in megadeals is caused by a move to selective outsourcing – signing smaller deals with multiple service providers – and more experience in outsourcing in the largest enterprises, where that experience can help them pick and choose the best vendors and services at the appropriate price therefore reducing possibilities for megadeals. Megadeals represent a significant share of total outsourcing contract value averaging $25.3 billion per year between 2003 and 2005. On average, megadeals represent 52 percent of publicly reported outsourcing contract value, and represent more contract value than all contract value categories combined. Given that megadeals are set to decline in the near future, increasing numbers of outsourcing deals will occur in the $100 million to $999 million range. This is a consequence of a renewed service provider focus on the midsize market and will become the new battleground for the megadeal providers. Contract term lengths are also on the decline. The average of length of an ITO contract declined from 6.2 years to 5.3 years from 2003 through 2005. The average length of a BPO contract declined from 5.5 years to 4.8 years during the same period. When measured independently by year and type of outsourcing, the median length is consistently five years. The largest BPO deals are trending longer than the largest ITO deals because of lack of standardization and maturity in the market, which forces longer terms by service providers to recoup transition costs. The days of the 10-year outsourcing contract are numbered. End-user organizations have tough experience from their first-generation outsourcing deals and learned how quickly their outsourcing contract becomes outdated. Declining asset lifecycles, constant business changes, cost, innovation and cultural/business fit are affecting the contract length in the life of an outsourcing relationship. Organizations want shorter contracts with flexibility that won't lock them in. Use of Multiple Service Providers

Publ 20060427

High-Stakes Game Publishing Needs New Revenue

eMarketer: Global. As a follow-up to the story that Microsoft Corp. plans to acquire in-game advertising network Massive Inc., in a deal estimated to be valued at between $200 and $400 million, here's a quick overview of eMarketer's data on video gaming. In-game advertising is one way to produce more revenue in the high-stakes video game market.

The gaming industry is a lot like Hollywood, with millions in production costs riding on how a game is received by the public. The typical video game now costs $10 million to produce. The lion's share of games in the $30 billion dollar electronic gaming industry is sold in retail outlets.

But last year, the home console hardware and software sales were down and no major game captured the imagination of the gaming public. With the stakes so high, few companies--including Microsoft--can afford to fail.

In-game advertising is popular with marketers—and is expected to grow to $732 million by 2010. Some 27% of marketers plan to increase their spending on in-game ads this year, a survey in January by MarketingSherpa showed. Video Games: Where to Now? and Mobile Gaming. Games? Wkipedia Red Viking

Publ 20060427

Worldwide Handheld Device Market Starts 2006 with Continued Decline in Shipments

IDC: Following a holiday quarter in which worldwide shipments of handheld devices topped two million units, the worldwide market for handheld devices began 2006 with its ninth consecutive quarter of year-over-year decline. worldwide shipments of handheld devices totaled 1.5 million units, down 22.3% from the same quarter a year ago.

Despite the incorporation of features like Bluetooth, Wi-Fi, expandable memory, and integrated GPS solutions, the handheld market continues to shrink. Many of these same features can be found on mobile phones, and the inclusion of telephony extends the usability of mobile phones beyond that of handheld devices. Still, vendors continue to search for ways to keep their products viable within this space by appealing to first-time and core users, or even joining the converged mobile device (i.e. smartphone) space altogether.

A decline in shipments following the holiday quarter is expected of mature markets, and the handheld devices market is no different. After nine consecutive quarters of year-over-year decline, many are wondering how long this trend will continue, and whether the market will see a reverse, s. IDC believes that the market will eventually hit a size where the rate of year-over-year decline will slow to a sustainable level. That size has yet to be determined, but will be sustained by the core users of handheld devices as well as the enhancements found on these devices.

• Palm, Inc. Palm started off 2006 in much the same way it ended 2005: as the worldwide leader in the handheld market. With shipment volumes 23.3% lower than a year ago, the U.S.-based company was buoyed by the success of the Palm Tungsten E2 and the Palm Z22 handheld. At the same time, shipments of Palm's line of Treo smartphones continue to increase, surpassing shipments of its handheld devices.

• Hewlett Packard. Also feeling the effects of the declining market, HP's handheld device shipments decreased 30.3% year over year. With both its professional and home office handheld device lines running on Windows 5.0, HP remains the worldwide leader in Microsoft-powered handheld devices. The company's converged mobile device line also had a year-over-year decrease, but new devices are expected to ship later this year.

• Dell. Despite a decline of 33.8% in shipments from a year ago, the U.S.-based company remained the number three vendor worldwide. As the Axim x30 and x50 model lines have reached the end if their product life cycles, Dell has emphasized its x51 lines, which offer greater processing power and features over the other models.

• Acer. Of all the vendors in the top five, Acer had the smallest year-over-year decline at 10.8%, staying ahead of fifth place Mio. The company's shipments within Asia/Pacific remained steady while shipments into Europe declined slightly. The company's latest device, the n300, joins a portfolio of Acer's devices that include expandable memory, Bluetooth, and WiFi features.

• Mio. Rounding out the top five is Mio, whose shipment volumes increased enough in Europe and Asia to post a healthy year-over-year increase and to edge out Medion for the final spot. Mio was the only vendor within the top five to record a year-over-year increase at an impressive 84.4%. The company continued to offer a suite of handheld devices targeted at different segments of the market, featuring Bluetooth, WiFi, and imaging capability.

• Vendor shipments are branded shipments and exclude OEM sales for all vendors.

• Handheld devices are pocket-sized, either pen or keypad-centric, and are capable of synchronizing with desktop or laptop computers. Handheld devices are designed to access and manage data including office documents, multimedia, and games.

More: IDC worldwide Handheld QView, Publ 20060427

Automotive Market for Color Displays To Triple Over the Next 5 Years.

Strategy Analytics: Decreasing LCD Costs and Increasing In-car Features Drive a $3B Opportunity. Key Issues Not Screen Size, concludes that decreasing LCD costs and increasing availability of new features on in-vehicle navigation, entertainment and driver information systems are the key factors that will drive automotive display shipments to 32 Million units by 2012.

However, the critical challenge for automotive companies is the display location in the cockpit, in combination with what information should be shown and easily accessed on the display, as opposed to the size of the screen in the car. Safety will be an increasing design factor since driver distraction is a key concern for regulators, car makers and consumers. Strategic Human Machine Interface (HMI) questions still remain over the role of displays and instrumentation clusters, compared to voice technology and haptic, touch button controls.

Color display scale economies resulting from the explosive demand in portable and wireless device and home consumer electronics markets are now being passed onto the automotive sector. Lower display costs, together with increasing availability of new features on in-vehicle infotainment systems, will result in a strong market for full color displays. We are seeing a lot of market adoption of touch screens from companies such as Alpine, Nissan and Toyota, as well as Head-Up Displays (HUDs) which are available from BMW, GM and Siemens VDO. These display products are starting to address some of the safety, design aesthetics, customer appeal and driver information issues that automotive companies need to tackle seriously in terms of HMI strategies.

Automotive Displays - Position and Information Content

Publ 20060427

Advanced Electronic Stability Program (ESP) and Brake-by-Wire Systems Hold the Future of European Passenger Car Braking and Stability Control Systems

Frost: In trying to achieve technology refinements, cost and reliability are emerging as major challenges for the launch of advanced braking systems. With respect to stability control systems, low customer awareness, perception and willingness to pay are likely to be critical growth restrains. While efficient marketing campaigns could help overcome challenges associated with stability control systems, greater R&D efforts will be crucial to the growth of advanced braking systems.

The European Market for Advanced Braking Systems earned revenue of € 5.1 billion in 2005 and will reach € 5.4 billion in 2012. Similarly the European Market for Stability Control Systems earned revenue of €1.61 billion in 2005 and will reach €3.67 billion in 2012.

With a market share of over 95.0 per cent, hydraulic braking systems currently dominate the European braking systems market. The only other braking system commercially available in the market is electronic hydraulic braking (EHB) and despite their success in hybrid vehicles such as Toyota Prius and Honda Civic Hybrid, EHB systems have failed to compete against hydraulic braking systems in gasoline/diesel vehicles due to their high cost as well as reliability issues.

Starting early next decade, with the expected launch of brake-by-wire systems such as electronic wedge brake (EWB) system and electro mechanical braking (EMB) system, the domination of hydraulic braking systems is set to decline and hydraulic braking systems will move from a market maturity phase to market decline phase in its product life cycle. Similarly standard ESP systems are likely to become original equipment (OE) fitments, while advanced ESP systems will see a greater uptake in the market.

However, key restraints for advanced braking systems such as EHB, EMB and hybrid braking systems include cost, reliability and after-sales serviceability, for which customers have to revert to dealers and major service centres in order to rectify any faults. Also, with low awareness of the benefits of ESP systems and their role in overall vehicle and passenger safety, many customers consider them a comfort commodity rather than a safety necessity.

Nevertheless, with ongoing R&D activities, system suppliers and vehicle manufacturers are likely to overcome these restraints by the end of this decade. Suppliers are actively working with automotive manufacturers to develop an advanced braking system, which can work on the present 12V system without a need for a higher voltage system such as the 42V system. Moreover, depending on the efficiency of this new system, costs are likely to reduce within years of its introduction.

The key to the success of advanced braking and stability control systems is in designing a reliable braking system, which offers maximum benefits to both vehicle manufacturers as well as end users. Further, in ensuring maximum market penetration, the system has to be priced strategically and should cater to the needs of different vehicle segments.

Strategic Analysis of the European Market for Advanced Braking and Stability Control Systems Publ 20060426

Technological Advances and Growing Need for Comprehensive Testing Solutions to Fuel Demand for Printed Circuit Board Automatic Test Equipment

Frost: The European electronic manufacturing industry is witnessing surging demand for printed circuit board (PCB) automatic test equipment (ATE) to identify defects in electronic assemblies and improve product quality. Hence, new testing technologies, strategies and rising demand for comprehensive and complete testing solutions are expected to contribute to the growth of the PCB ATE market.

The European Printed Circuit Board Automatic Test Equipment Markets earned revenues of $216.4 million in 2005 and estimates this to reach $278.3 million in 2012.

Increasing board densities and the growing requirement for PCBs to perform in high temperature and humidity environments have led to major concerns related to reliability problems. Hence, boundary scan techniques that facilitate testing without physical access are rapidly becoming a viable option for advanced technology end users, thereby supporting overall market development.

Boundary scan is expected to boost overall market demand due to the benefits of cost savings as well as its reusable options. Further, due to the growing emphasis on safety issues particularly in the automotive industry and the establishment of high standards, the functional test market is likely to exhibit exciting growth. The functional test and boundary scan segments will generate significant revenues in the next five years due to the growing requirements of safety and value for money

Over the past five years, the typical distribution of fault classes during circuit board assembly has undergone a considerable change. In addition, circuit boards are becoming inaccessible for ‘bed of nails’ fixtures. There is also a major discrepancy between faults occurring in the current board manufacturing environments and the capabilities of the installed base of testers. Thus, this shift in the fault spectrum signifies that while the occurrence of faults is declining, the cost of testing continues to remain high.

Moreover, shortening product development cycles and more responsive supply chain management have become elements that are considered critical by successful electronics manufacturers and ATE vendors will need to introduce test systems to reflect such market changes, states Ms. Vijayan.

New electrical products such as personal computers (PCs), notebooks, modules, camcorders and cellular phones are likely to become increasingly complex. Consequentially, the demand for advanced packaging and interconnect technologies will also intensify. Hence, test equipment vendors will need to concentrate on systems that are capable of testing such miniature and complex boards.

In recent times, while the majority of test equipment continues to be manufactured in North America and Europe, there has been a shift in focus towards countries in the Asia Pacific, primarily China. In view of the intensifying competition in the test equipment market, providing greater price cuts will become difficult due to low profit margins. As a result, European vendors will need to shift base to low-cost regions to sustain their profit margins.

PCB ATE equipment vendors are also facing competition from system integrators and end users such as contract manufacturers that develop in-house test systems. As a result of the increasing 'design-and-build applications' from contract manufacturers, test vendors would do well to forge alliances with these companies to increase their market share.

European Printed Circuit Board Automatic Test Equipment Markets is part of the Test and Measurement Subscription, which also includes research in the following markets: in-circuit testers (ICT), functional testers, boundary scan testers and manufacturing defect analysers. This research service includes detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.

European Printed Circuit Board Automatic Test Equipment Markets DRM? Wikipedia ; Red Viking Publ 20060426

Portable Telematics Systems to Experience Consistent Demand Despite Growth in Fixed In-cab Telematics

Frost: The lack of standard platforms and defined original equipment is likely to favour aftermarket telematics systems in the commercial vehicles market segment. While their multiple benefits are likely to underpin steady demand for portable telematics systems, the establishment of a unified industry architecture will be critical to promoting sustained uptake.

White Paper Analysis on the Place of Portable Telematics in the European Commercial Vehicle (CV) Market, reveals that revenue in this industry totalled €7.93 billion in 2005 and can reach €23.02 billion in 2011.

Despite end users defining and dictating features of telematics systems, the future of this market depends on the development of portable devices that can support embedded fixed in-cab systems, explains Frost & Sullivan Transportation Practice Programme Director Mrs Miranda Tooth. The aftermarket telematics systems will be replaced by original equipment fixed in-cab telematics systems due to the increased need for standardisation.

The two most important features offered in telematics - fleet management and navigation - vary according to the business category. End-users prefer fleet management systems to be fixed and navigation systems to be portable. The dependence on navigation systems will ensure consistent demand for portable systems in future, despite the presence of more advanced features in fixed in-cab telematics systems.

At present, the greatest challenge that the commercial vehicle segment of the telematics industry is facing is the integration of end-user preferred telematics features with fixed and portable systems at affordable prices. In addition, Government regulations restricting the use of handheld and mobile devices while driving, is deterring the growth of the portable telematics market. The increased importance of telematics in commercial vehicles will drive vehicle manufacturers to build embedded systems in the vehicle thereby potentially hindering the growth of the portable telematics market.

In order to increase the penetration rate of portable telematics systems in the commercial vehicles segment and help end users to gain benefits on a large scale, manufacturers need to restructure the commercial vehicle telematics industry,. Also, manufacturers of commercial vehicles and telematics systems need to work in conjunction to design portable systems that are suited for the automotive environment, as a lack of this acts as a major deterrent to widespread adoption.

An in-depth understanding of fleet/vehicle management and business/transport management needs will create solutions for all participants in the value chain of commercial vehicle telematics. In addition, the cost-effectiveness, adaptability, and simplicity of portable telematics systems will encourage consistent demand for these systems in the future thus boosting market growth.

White Paper Analysis on the Place of Portable Telematics in the European Commercial Vehicle (CV) Market Publ 20060426

ABC Internet TV Test Targets 22 Million Broadband Video Homes

Strategy Analytics: US. But Plan Strains Network's Relationships with Local Stations, Pay TV Operators. Disney's plans to test free internet distribution of ABC shows like Desperate Housewives and Lost will help connect the company to the 22 million US homes that regularly stream video, predicts a new report from the Strategy Analytics Broadband Media and Communications service.

The fast-growing broadband audience will soon rival that of traditional TV. Over 44 million US households now subscribe to high-speed Internet access from cable and telephone companies. Half of all respondents said that they use broadband to stream video of news, sports or entertainment content on a monthly, weekly or even daily basis. In addition to these residential users, millions of consumers could also stream ABC's shows to their PCs at work.

But ABC's plan to offer shows like Desperate Housewives and Lost over the Internet also strains the company's relationship with key partners and potentially raises technical and usability challenges. Strategy Analytics believes that webcasting will evolve into a valuable secondary platform for Disney and other TV programmers, but that consumers will continue to rely on cable and satellite service providers as their primary source of programming.

Using a still-developing broadband channel to distribute flagship TV programming carries significant risks for Disney. Disney has frequently clashed with cable and satellite companies over licensing fees, and this move increases the potential for further conflict.

The other major issue for ABC is the potential impact of webcasting on its broadcast affiliates, the hundreds of local TV stations which carry the network's programs to most viewers. Unlike rivals such as News Corp.'s FOX network, ABC has not announced specific plans to share webcasting revenues with its broadcast affiliates. Disney-ABC Webcast Plan Tests Free Broadband Video -- And Patience of Broadcast and Cable Partners

Publ 20060426

Predicts Doubling of Handset Filter Shipments Modules for Multi-band Handsets to Push Filter Volume Up

Strategy Analytics: Multi-band handsets will drive demand for compact front-end modules that simplify cellphone design, layout and assembly. Filters used in modules, including power amplifier, antenna switch, low noise amplifier and transceiver modules, will grow to an estimated 40 percent of filters in 2010.

Published by the RF & Wireless Components service, this report examines trends in filter technology, front-end architecture and modules, the expected regional adoption of handsets supporting various combinations of bands, and how these factors will drive the filter market. The report also examines the competitive positioning of the leading suppliers of front-end modules and filters for handsets

Bulk acoustic wave filters will play an important role as an enabler for compact front-end modules, but just having the right technology will not guarantee success. Suppliers will also need to develop modules for the right combinations of bands, which will require understanding the plans of the regional carriers well before requisitions for new handsets are issued.

Filter Market: BAWs Enable Modules for Multi-band Handsets. Publ 20060426

Moving Targets: DRM Vendors to Aim for the Source

ABI: Vendors of digital rights management (DRM) systems have spent several years directing their marketing efforts at the telcos and other service providers that have been pushing their way into the video distribution market. At one time, that seemed smart: after all, in many regions Telco TV was posing stiff competition to the traditional dominance of cable and satellite operators as distributors of video entertainment. The goalposts are moving again. The next frontier for video distribution is broadband and converged media distribution over the Internet. What has happened? The content owners—Hollywood studios and television networks—are flocking to online distribution channels. ESPN is offering a broad swath of content through online and mobile platforms; CBS and NBC are making their content available through Google Video, and ABC is doing the same through Apple's iTunes. Others are following suit. Online and portable distribution has suddenly become as important as the telco market. This has caught many DRM vendors off balance. It's a different model. DRM vendors will find much greater competition from incumbents. For example, Microsoft could provide stiff competition for these smaller, emerging players. DRM vendors need to retool their marketing initiatives to target the content industry directly, instead of the service providers. DRM vendors have always been at the bottom of the food chain. But the most observant of them have noticed the paradigm shift and are adapting to it. This repositioning may be seen in companies such as Widevine and NDS. For example Widevine has recently received investment from Cisco. While Cisco is not an entertainment content owner, it in turn has invested in Disney's MovieBeam, a video-on-demand service, and has also acquired STB makers Scientific Atlanta and Kiss Technologies. Sistla points out that Widevine can leverage that strategic relationship, as well as the investment, to compete head-on with much bigger companies such as Microsoft or Apple on the online and portable platforms. DRM? Wikipedia ; Red Viking Conditional Access and Digital Rights Management Publ 20060426

61 Million Chinese Online Gamers by 2010

In-Stat: The ranks of online gamers in China will grow from 25.5 million in 2005 to 61 million in 2010. Government policy is generally in favor of the online gaming industry and several drivers will provide numerous business opportunities. For now, however, profits are elusive for many firms. Less than 15% of Chinese online gaming companies were profitable in 2005. As of 2005, there were 16 million paid online game players. The increased rate of online gamers is bigger than that of Chinese netizens since online gaming, as one of the most widely used online services, will become more and more popular in the coming years.

• Key first-tier players such as ShanDa, NetEase, The9, and KingSoft, account for a combined 80% of the market.

• In 2005, there were more than 300 online gaming companies in China. 50% of the games are home-made, and that share will increase in the coming years.

• A current market barrier is a new policy requiring that playing time be restricted to four hours for each game and for each player.

Online Gaming in China: More than Fun and Games Games? Wkipedia Red Viking Publ 20060426

Behind 2009 the backing global of industry heavy. New Personal Computing Segment Poised for Strong Growth

In-Stat: Behind the backing of industry heavy weights Microsoft and Intel, several electronics vendors introduced a new class of hand-held consumer electronics device that attempts to offer consumer and communications functions combined with a full-function PC. Based on a traditional PC platform, the Ultra Mobile PC (UMPC) overcomes many of the computing limitations associated with other Consumer Electronics (CE) devices, such as cellular phones, and the mobility limitations of existing PCs. The potential for UMPC shipments could be as high as 7.8 million units by 2011. ASUS, Founder, and Samsung are the first three OEMs introducing prototypes to capitalize on the new platform opportunity. It’s ironic that the UMPC is now taking center stage close to a year and a half after Transmeta, a company focused on delivering processors for this very segment, finally had to call it quits as a processor vendor because of lack of market growth. As Intel aggressively moves into this market, they have emphasized that the processor performance just has to be ‘good enough.’ However, the processing solution will have to meet increasingly stringent power requirements as improvements in battery technology are not advancing at the same pace as the requirements.

• The requirements of the UMPC will drive a new generation of low-power x86 processors, the current processor of choice, while inviting competition from other processor architectures.

• There is no one-size-fits-all solution for all market segments.

• The first UMPC generations will not have any unique features, but will attempt to build on a new usage model around defined price points.

The Ultra Mobile PC – Hip or Hype?

Publ 20060426

New Personal Computing Segment Poised for Strong Growth

In-Stat: Behind the backing of industry heavy weights Microsoft and Intel, several electronics vendors introduced a new class of hand-held consumer electronics device that attempts to offer consumer and communications functions combined with a full-function PC. Based on a traditional PC platform, the Ultra Mobile PC (UMPC) overcomes many of the computing limitations associated with other Consumer Electronics (CE) devices, such as cellular phones, and the mobility limitations of existing PCs. The potential for UMPC shipments could be as high as 7.8 million units by 2011. ASUS, Founder, and Samsung are the first three OEMs introducing prototypes to capitalize on the new platform opportunity. It’s ironic that the UMPC is now taking center stage close to a year and a half after Transmeta, a company focused on delivering processors for this very segment, finally had to call it quits as a processor vendor because of lack of market growth. As Intel aggressively moves into this market, they have emphasized that the processor performance just has to be ‘good enough.’ However, the processing solution will have to meet increasingly stringent power requirements as improvements in battery technology are not advancing at the same pace as the requirements.

• The requirements of the UMPC will drive a new generation of low-power x86 processors, the current processor of choice, while inviting competition from other processor architectures.

• There is no one-size-fits-all solution for all market segments.

• The first UMPC generations will not have any unique features, but will attempt to build on a new usage model around defined price points.

In-Stant Analysis: The Ultra Mobile PC – Hip or Hype? Publ 20060426

Camera Function Tops List of Frequently Used Features on Cell Phones

Infotrends: The camera is the most popular mobile application. Although consumers may not be purchasing phones initially for their imaging components, it seems that once they try the camera feature, they are pleasantly surprised by its utility.

Of course, as digital cameras on cell phones become more widely available, the function is graduating from a special feature to one of a list of product specifications. InfoTrends’ data shows that 29% of U.S. Internet users now have a camera phone, up from 18% in June of 2005. As the market moves towards an early majority phase, behaviors will change accordingly. For example, the number of images captured per month has been cut by more than 60% from 2004 to 2005. The cause of this decline can be attributed to some consumers no longer purchasing camera phones for fun and spontaneity, but rather because the handset was the most affordable and had the best overall features.

Nevertheless, InfoTrends continues to see a segment of image-centric consumers. For these consumers, the digital camera far outweighs the price and size of the phone as the most important feature influencing their purchase decision. These camera phone owners will drive higher capture and print activity. Additionally, young consumers are becoming more active camera phone picture takers and printers, which is a positive sign for the future as well.

We anticipate that photo activity will continue to rise slightly as the true impact of megapixel camera phones comes into effect, commented Ed Lee, Director at InfoTrends. The question is whether the increases in capturing, sharing, and printing can be successfully monetized by vendors.

Camera Phone End-User Survey Analysis

Publ 20060425

Sensor/Actuator Sales Forecast to Grow Twice as Fast as ICs

IC Insights: New MEMS-based designs expand emphasis from automotive to other applications.

The global market for solid-state sensors and actuators remains relatively small when compared to other major semiconductor product categories. However, the sensor/actuator market is forecast to grow at double the rate of integrated circuit (IC) sales . In fact, the sensor/actuator market is poised to become the fastest growing semiconductor segment this decade.

Historically, sensors have been mostly used in automotive applications, but new low-cost devices are being aimed at consumer portable products, communications, and industrial systems. 37% of sensor/actuator sales in 2010 will go into automotive applications as compared to more than 50% early in this decade.

With sales totaling $4.5 billion in 2005, the sensor/actuator market is expected to increase at a cumulative average annual growth rate (CAGR) of 21% between now and 2010. In contrast, IC sales are forecast to increase at a CAGR of 11% during the same five-year period. By 2010, sensor/actuator sales will reach nearly $12 billion compared to $320 billion for mainstream ICsThe sensor/actuator market is forecast to grow 26% to $5.7 billion (see Figure 1).

Figure 1

About 80% of sensors/actuators employ microelectromechanical systems (MEMS) technology to perform transducer functions. Solid-state sensors are designed to measure changes in temperature, pressure, acceleration (or inertia), and other forces of physics, while actuators are used to manipulate physical action, such as printing ink on paper, reflecting light in displays, or dispensing medicine in humans.

Texas Instruments and Hewlett-Packard as number one and two, respectively, among the top 10 sensor/actuator suppliers in 2005. TI sells micro-mirror display devices, while HP is the leader in MEMS-based ink-jet print heads. In third place, Robert Bosch of Germany continued to be the world's largest supplier of solid-state sensors in 2005. Rounding out IC Insights' top 10 sensor/actuator list are: Honeywell, Infineon, Seiko Epson, Freescale, GE-NovaSensor, Omron, and Analog Devices. O-S-D Report

Publ 20060425

Insurance in Germany: Market and IT Overview

Celent: Germany’s insurance industry faces several challenges, which will slow down its growth and keep IT spending level.

Growth of the German insurance market will be hampered by new regulations and competitive factors, according to a new report by Celent, . The report examines key business trends in the German insurance market and their impact IT on spending.

The German insurance market has experienced very little growth in recent years, expanding at a compound annual rate of 4% from 2001 and 2004. There is some cautious optimism that things are turning around in the German economy; however, the growth in the insurance market is likely to be more muted, given significant changes such as Solvency II, new tax laws for life insurance, a health insurance overhaul, and increased foreign competition. The total German insurance market will break the €200 billion mark by 2010.

German insurance companies are also facing competition from a new source: banks. The abolition of tax privileges for life insurance products at the beginning of 2006 will have a huge impact on endowment policies. The new tax laws mean that these products are competing, often unsuccessfully, against savings products from banks. Insurance companies will have to develop new products to avoid losing market share. Insurance in Germany: Market and IT Overview

Publ 20060425

The IFX Standard: global Adoption Is Only a Matter of Time?

Celent: Adoption of the IFX standard has been slow, with 25% of the world's top 50 banks currently involved in IFX deployments, but IFX will boom to reach 60% by 2009.

Interactive Financial Exchange (IFX) is an XML-based standard that enables financial transactions through Web services–type interfaces. The standard provides the ability to exchange financial data regardless of technology platform. Adoption of IFX has been slow to date, but the standard is well-positioned to become widely used within the financial services industry, according to the Celent report, The report examines the potential of IFX to enhance interoperability between systems, lower development costs, increase the speed to market of new products and services, and reduce the burden of maintaining numerous systems and hardware.

Although there is a general knowledge of the benefits that the IFX standard can bring, banks have been cautiously evaluating when to adopt this technology. So despite the potential of the IFX standard, adoption to date has been slow. Only large leading institutions have taken early steps to adopt the IFX standard. The majority of banks are waiting for proof of concept and measuring return on investment before adopting this technology.

The institutions backing the development of IFX see it as creating strong competitive advantages. Ironically, these institutions are keeping their IFX strategies close to the vest for the time being, impeding development of the standard in the industry overall. The IFX Standard: global Adoption Is Only a Matter of Time?

IDC: The Western European market for analytic applications continues to present significant growth opportunities for software vendors.The market is forecast to reach €1.9 billion by 2010, representing a 2005–2010 CAGR of 10.3%.

The study analyzes the three segments of the analytic applications market — BPM/financial analytics, CRM analytics, and SCM/operations analytics. All analytic applications market segments will show solid growth over the forecast period, but the BPM/financial segment is forecast to experience the highest growth, driven by companies' demand for an improved and more current strategic understanding of their core functions, compliance requirements, and a need to make more frequent and flexible adjustments to financial plans.

SCM/operations analytics should benefit from organizations' continued need to optimize their internal processes and extended supply chains in an effort to manage costs and risk.

Having invested heavily in operational CRM applications, Western European organizations are now trying to unlock valuable data in these systems to improve their marketing and sales intelligence by deploying CRM analytics.

Suites, platforms, and partnerships are key for success in the European analytic applications market. Vendors that do not offer a suite of products should consider partnership strategies that offer tight integration based on a solid business intelligence framework, as internal and external processes must support information consistency now more than ever with added compliance pressures. Niche vendors will need to demonstrate above average expertise and measurable advantages over the suite vendors to win sales. Because of the increase in the number of vendors providing basic analytics, only the real niche innovators will thrive.

The IDC study Western European Analytic Applications Forecast, 2006–2010 Publ 20060425