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NEWS
Issue #2001 - 03 (Jan. 2001)

(Updated on Jan. 17, 2001)

MARKET OUTLOOK

Convergence of WAP, GPRS and Bluetooth to Drive the Mobile Market

Despite the hype generated for WAP, when it arrived on the market a year ago, products and services have not lived up to expectations, according to a report released by Frost & Sullivan, an international research firm.

The senior author, JanTen Sythoff, Programme Manager at Frost & Sullivan, however, remains optimistic about the long-term outlook for WAP and the European mobile device market in general. He says, "Soaring demand for always on, all day wireless connection to the Internet, new billing models and new content and applications will stimulate exceptional growth in the European market for mobile devices."

The introduction of new technologies, such as WAP, Bluetooth, and GPRS, will help alleviate such limitations as poor performance and usability inherent in the first generation of WAP phones.

Highlights of the Report: "WAP Meets GPRS and Bluetooth"

  • European mobile device business was valued at $23.7-billion in 1999, but expected to grow to $488.8-billion by 2006.
  • Bluetooth products are expected to reach critical mass in 2001.
  • The advent of m-commerce will encourage the sale of WAP, GPRS, and UMTS handsets.
  • The arrival of 3G networks will heighten the demand for applications such as music, graphics and other multimedia uses, which require greater bandwidth.
  • With huge capital investments, operators will push to upgrade sales of device for the next-generation of networks, enabling them to yield a swift return on investment.
  • With the expansion of mobile data services, operators will move toward a content-based billing model.
  • The growth of the mobile advertising market will enable users to obtain free services once they agree to have a certain number of ads pushed to their devices.
  • The proportion of a mobile operator’s revenue derived from non-voice services will exceed 45 percent by 2006.
  • By 2006, the three most popular applications will be unified messaging, entertainment, and information services.

For more information: www.frost.com/verity/press/telecom/pr392165.htm

Mobileinfo Comments and Advisory: WAP has been under attack for some time - for some justifiable reasons and many unjustifiable reasons. Problem is not WAP but the sheep-like following of the masses of vendors because they want to join the bandwagon. Having said so, WAP will be around in one form or another. We should conserve our energies and improve upon WAP by improving its security mechanism and adopting good features from i-Mode, cHTML and other protocols. We can not abandon something that thousands of developers understand and for which hundreds of millions of handset are being used in the world. And let WAP not be the only protocol.  Let us bring in the competition so that there is impetus for WAP to improve.

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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