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News
Issue #2001 - 17 (Apr. 2001)
(Updated April 25, 2001)

MARKET OUTLOOK

Consumers Want Mobile Internet Services Now, study finds

Microsoft Corp., Lucent Technologies, and QUALCOMM Incorporated have announced the results of an independent study by International Data Corp., revealing that a cross-section of consumers want mobile multimedia services now. The study was commissioned by the three industry players to help formulate their wireless strategies.

The 1,000 participants surveyed were asked if significant wireless bandwidth were available, what would they consider to be the most important wireless Internet applications? E-mail with large attachments was ranked the highest, followed closely by accessing pictures and music.

"The most compelling finding of the IDC study was that consumers want to take advantage of mobile multimedia data services now to improve work productivity and enhance their lifestyles," said Jeff Jacobs, senior vice president of business development for QUALCOMM.

Based on the study, the three companies are working to plan and implement these types of services. Product manager and vice president of Lucent’s Wireless Networks Business Mike Iandolo was encouraged by the results saying, "The results of the IDC study demonstrate that there is a business case for mobile Internet services that require significant bandwidth. We want to quickly and cost-effectively make these services a reality, as they will create new revenue streams for all players involved."

In addition, the three companies worked with IDC to conduct market sizing and business modeling research for the North American market. IDC’s forecast shows that the market for wireless high-speed data user growing to more than 27 million in 2007 from the projected 700,000 users who will sign up in 2002, when 3G services become available.

"Based on consumer projections, the study projected that the market for these wireless services would grow to nearly $2-billion in revenue during the second year of availability," said H. Paris Burstyn, vice president, Communications and Consulting at IDC.

For more information: www.microsoft.com/presspass/press/2001/mar01/03-20IDCStudyPR.asp

Mobileinfo Comments and Advisory: We have no arguments with the conclusions that IDC reached in this study. The emphasis is on "consumers want mobile multi-media ". Our argument starts with "Can carriers afford to give multi-media at the price that consumers want to pay?".  Our own gut feel is that there is a gap between desire and affordability. Consumers want everything including a flight to the moon but can they afford it? Limited and optimized multi-media for specific premium-fee applications when 3G networks get deployed is fine. Remember, we are advocating fast deployment of 3G but are mindful of business realities - there are competing demands on scarce resources (and did we say spectrum?). Everything in due course, indeed!

We should remind vendors that besides 3G, there are simpler ways of providing mobile multi-media applications. Through kiosks at public places, plazas and gas stations.  Think of drive-in multi-media loading kiosk? Do you get it, innovative thinkers?

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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