News | June 27, 2006

WiMAX Might Challenge Mobile Data But Industry Fights Back With HSDPA

Dublin, Ireland -- Research and Markets has announced the addition of 2006 Global Mobile Data - battle between HSDPA and WiMAX report to their offering.

Annual report contains: Mobile triple play, SMS, MMS, Mobile TV, HSDPA, IMS, Edge, WAP, GPRS, HSCSD, EV DO, iX, 4G, WiMAX, Corporate Mobile data, m-commerce, micropayments, RFID, telemetry, GPS, location services. Also contains industry analysis issues and strategies, government policies, spectrum developments.

The lack of success of new 3G services, that followed the already slow uptake of dedicated mobile data systems that were developed in the 1990s, is a clear indication that interest in traditional mobile data is still limited. WAP, GPRS, MMS, 1X and other developments over the past few years certainly have not changed the situation. Current mobile technologies are not well suited for economically viable business models for mobile data. WiMAX might challenge mobile data towards the end of the decade, but the mobile industry is trying to fight back with HSDPA (High Speed Downlink Packet Access).

The lack of suitable infrastructure has hampered the growth of mobile data. As with voice applications, the emerging nextgen (NGN) platforms are going to have a major impact. While it still needs to deliver, IMS is an example of such NGN developments. Mobile voice communications will consolidate in mature markets but continue their spectacular growth in developing countries, mainly Africa. However, mobile data, beyond SMS and particular countries such as Japan and Korea, will remain a niche market business and will grow into IP-based WiMAX services towards the end of the decade. Apart from IP Multimedia System (IMS), the main enabler is broadband. The aim is now to bundle these products into attractive triple play or quadruple play business models.

Mobile Content

If we measure the market based on the number of mobile content providers, then there certainly is plenty of interest in this market. Unfortunately these providers depend on the mobile operators in order to deliver their products to their customers. The business models that these operators offer are hopelessly inadequate. They are not catering for impulse buy models. With the exception of Japan, Korea and China, very few sustainable models are currently in operation. The rest of the world is waiting on MVNO models that provide content providers with the freedom to distribute their own products and manage their own billing and customer service.

Corporate Data

Corporate mobile data services have been around more than 15 years. They have been mainly based on dedicated mobile data networks used by companies with large sales forces, service teams, travelling agents, and so on. In order for such organisations to use mobile data services, they will need sophisticated internal electronic information networks in place to which the mobile data systems can be linked. This report discusses networks such as BlackBerry, Mobitex and Ditac and the various applications used. It also discusses the business opportunities of mobile data services such as GPRS over GSM and wireless broadband networks such as WiMAX.

Mobile handsets

As vendors fight for market share and more bandwidth becomes available, mobile phones are incorporating a variety of new functions such as still and movie cameras, advanced messaging, access to the Internet etc. Sales of handsets slowed markedly following the industry downturn in 2001, but started to recover in early 2004, with rapid growth during the year, aided by the development of new equipment such as camera phones. This continued into early 2006. The trend here is that the mobile and wireless broadband market will be driven by the new devices that will be pushed onto the market by the vendors. Mobile operators will see their present leading position to drive this market severely curtailed. Nokia retains it dominant market share, with Samsung showing the fastest growth rate. It is expected that the IT and CE industries are going to take a more prominent role in the market of new wireless broadband devices.

SOURCE: Research and Markets