Cell phone evolution in the Global market

by Kostandinos Papahatzis

The cell phone Market is evolving dramatically, as new developments in OpCo products and services demand richer, smaller, better, cheaper handsets to be released and hit retail stands in the shortest timeframes possible. More or less, the services offered by mobile OpCos can be summarized as follows:Voice related (IVR) services: people use their cell phone to call a number and listen to news, sports, play games, listen to sign predictions; all these at a standard calling fee or a drop charge fee. Some popular services are news, sports, weather, playing blackjack; dating services, dream teller, as well as adult services- many others exist, among which the most popular is for subscribers to download onto their cell phone ringtones. WAP Related services: subscribers can user their cell phones to access mobile portals and user a plethora of available services. Such as accessing content via subscription fees, downloading of games and video clips, streaming television channels (available only on 3G networks) downloading of sounds, setting up calling tunes for those who call, adult content and many others. Most popular portals globally are Vodafone Live! and iMode.SMS/MMS Related services: this is a really mature channel where OpCos thrive; the opening of mobile networks to third parties for business exploitation has brought an explosion of services that use SMS and MMS as the delivery technology. Pulling content to the cell phone using commands sent to 4-digit ports is very popular globally, and cannibalization is not as near as it was predicted.These are value added services on cell phones that exploit cellular data networks transfer and delivery capabilities via existing channels. There are more capabilities and services such as Bluetooth printing, video calling etc.Surely, the cell phones that launch from handset manufacturers are built to balance two different worlds: firstly, the needs of the OpCos who launch new and more powerful services as their plans for increasing network capacity to higher speeds are successfully implemented. Secondly the end customers who demand lighter cell phones capable of doing more things. At this point in time and for the next fiscal year, it is sure that we will witness three kinds of cell phone tribes to hit the shelves:The first kind will be cell phones based on the standard GSM network technology: they will become slimmer and get more attractive looks. Some models already out (like Motorola Pebble, Motorola L7 SLVR and Nokia L’amour collection) are really eye-popping. Some of them are very expensive-the Nokia L’amour will hit the stands on February with $700. This kind of cell phones is the one that OpCos don’t want people to buy, but handset manufacturers want people to buy! The reason is simple: subscribers stay in the old network, with the slower data speeds, and the launching of new, high speed multimedia services to the majority of subscribers is pushed forward in time, delaying revenues from value-added services such as streaming, music etc. Now that the war on mobile OpCos is played on the ground of value-added services (since very little can be done in price plans nowadays, the room for major gains is tight), it is of interest to promote cell phones that can bring more revenue from other channels other than voice.So we come to the second kind of cell phones, based on the newly launched 3G networks that slowly spread across Europe and Asia. Handsets are still a bit bulky, although in the next quarter things will improve dramatically. The new Nokia N70, the new Samsung ZV10 and ZV30 are as cool as the standard GSM handsets. These kinds of cell phones come with excellent cameras (Sharp has a 3.2 Megapixel model and Samsung is moving to 5 Megapixel) and high speed data transfers, allowing the reproduction of streaming television and radio, as well as the quick downloading of media files, such as Vodafone’s Music Track service with half a million tracks available. This is where the battle will be fought in the next two years. You will notice that these handsets may actually be quite cheaper in your local market, compared to the new GSM models. This is because mobile opcos are investing in the future where they will be pushing - they are doing it already - more entertainment services to subscribers, and increase average monthly spending from people who will download their favorite tracks for $1 a piece, and watch TV fro a whole day for an equal amount. For the next few years, the networks would want you to buy these handsets – because this is where part of the money is.The third kind of cell phones are the hybrids: is it a cell phone is it a typewriter, or is it a computer? You will find that the market is experimenting here: handset manufacturers have not come out with a standard shape and wrap for these cell phones. The mobile networks are just beginning to support them with E-mail services; basically all you can do is use them to send and receive mail, or access a wap portal. There is a blank here: the networks have not prepared anything for business people who use these kinds of cell phones, so who will be the first to set foot on this virgin ground remains to be seen. In the meantime the kings that rule here are the RIM Blackberries and the Qtec or HTC. Nokia is fighting hard to keep the communicator model alive with the new 9300 and 9300i, while Sony Ericsson is coming out with a new P910i suitable for 3G networks, late in the spring. So where does all lead? In the next few years, we will see a wider variety of cell phones that support third generation networks, and numerous services will come along to boost the experience. Some handsets will come out on the extreme with built-in TV, but this may not catch up as a streamline feature on the new handsets. The cell phones will stay low tier to attract people, but overall features will focus on improving music and video experience.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com