The economic downturn will have a significant impact on mobile phone shipments in 2009; with volumes down globally by 9.1%, according to the latest forecasts from global advisory and consulting firm Ovum – Mobile phone forecast pack 2008-2014. All regions, even those in emerging markets, will be hit to some extent by the downturn, says Ovum, and shipments will start to recover from 2010 onwards, although it will take until 2012 before global volumes are back to the level seen in 2008.

2009 has witnessed the collapse of the market for mid-tier handsets: "This has had a polarizing effect on the handset market with vendors and mobile operators focusing on two types of handset: those targeting the low-end and high-end segments", says Adam Leach, devices principal analyst at Ovum and co-author of these forecasts. "This in turn has quickened the replacement of 2G in favour of 3G handsets, with high-end 2G handset shipments suffering the most from the shift".

The downturn has artificially extended replacement rates for handsets during 2009. However, because of the collapse of the mid-tier and subsequent focus on high-end 3G handsets, Ovum expects a move towards longer replacement rates well into the forecast period even after recovery. Mobile phone shipments will grow at a CAGR of 1.9% and reach 1.4bn by 2014

"The primary upside driver for growth is from volumes in emerging markets (e.g. Asia-Pacific). Connection growth in these regions is still fuelling handset shipments; however, shipment growth will trend below connection growth due to a strong second-hand market in these regions", explains Leach. "The secondary upside driver for growth is from the replacement of 2G networks with 3G networks, which will impact mature markets first. This will drive shipments of 3G devices (those enabled for HSPA, TD-SCDMA and 1XEV-DO networks)", Leach continues.  In fact, beyond 2012 a majority of handsets will be based on 3G technologies even if they are bound for 2G networks (e.g. GPRS, CDMA2000). This effect will be slower in emerging markets while there is still growth for ultra-low cost 2G handsets.

Following the introduction of LTE data-cards and USM modems (expected by 2010), Ovum says it expects to see LTE-based handsets entering the market between 2012 and 2013. "These handsets will be seen first in markets where operators have aggressive LTE deployment plans such as North America. However, LTE will not hit mass market volumes until after 2014", Leach concludes.

Syniverse Technologies, a provider of technology and business solutions for the global telecommunications industry, announced today that it has signed a definitive agreement to acquire the assets of Wireless Solutions International (WSI), a Boca Raton, Fla -based provider of global managed roaming and wireless network solutions. 
 
Syniverse says the acquisition of the GSM Association (GSMA)-certified roaming hub provider will further enhance its global roaming reach, while boosting the interworking capabilities of its recently launched standards-based, comprehensive roaming portfolio, Syniverse MORE. Syniverse expects the transaction to close by the end of May.
 
"The addition of WSI to Syniverse will strengthen our roaming portfolio through sponsored roaming, outsourced roaming operations and value-added services," said Tony Holcombe, President and CEO, Syniverse. "Whether an operator is looking to add expertise to its roaming department, outsource its roaming operations, instantly extend its reach or simplify management of its existing roaming relationships, we will be better able to tailor our roaming solutions to meet a variety of diverse business needs."
 
The acquisition of WSI will extend Syniverse's relationships with a number of existing customers, while bringing in new relationships with several operators across the Americas.
 
"The addition of WSI's capabilities further signals our commitment to offer a broad set of future-proof roaming solutions that provide unmatched flexibility for operators as they work to keep up with ever-changing market requirements," Holcombe said. "Syniverse is committed to being the premier one-stop provider of roaming services for any type of operator, ranging from a CDMA operator preparing to launch an LTE network to a GSM operator seeking to expand its roaming reach globally, all while simplifying roaming management and anything in between."
 

More than half (52 per cent) of mobile phone users in the UK are now using the mobile  Internet with email and social networking the most popular activities, according to new findings released today.  The mobile Internet usage poll, carried out by user experience consultancy, Webcredible, revealed that of the respondents who used the mobile Internet, over half (55 per cent) mostly used it for emailing and social networking, demonstrating the evolution of mobile Internet usage since the poll was last conducted in 2007.

The research polled more than 1,100 online users between February and April 2009 on what they used their mobile phone for most, with the exception of calls and text messages.  Checking email and social networking came in as the most popular pastimes with 39 per cent of mobile Internet users mostly using email and over 16 per cent favouring social networking.  Just under 16 per cent of mobile Internet users said they mostly downloaded ringtones. 

This shows a clear development from a similar survey carried out by Webcredible between August and October 2007, when downloading ringtones was the most popular pastime among mobile Internet users with 43 per cent favouring this.  Only 21 per cent of these users mainly checked email, and social networking didn't even register.  This change in results clearly demonstrates the evolution in the capabilities of the mobile Internet and the related change in user behaviour.

In addition, the 2009 research also revealed that 13 per cent of mobile Internet users mainly used it for reading news or sport content, 12 per cent used it for maps and directions and 4 per cent mainly used it for local or travel news.  48 per cent of total respondents said that they performed none of these tasks on their mobile phones.

Abid Warsi, Senior Consultant at Webcredible comments, "Although there are still a substantial number of people who use their mobile phones for nothing other than calls and texts, these results clearly demonstrate the evolution of mobile Internet usage in-line with the increase in the ease with which mobile phone users can access the Internet, the increase in speed and technological capabilities, as well as the decrease in cost."

"Social networking sites are helping the mobile Internet reach its tipping point.  We are now seeing an increasing number of people taking a real multi-channel approach to their communications with the growth in the use of email, Facebook and Twitter on the mobile, no doubt assisted by newer, technically advanced handsets like the iPhone."

Annual revenues from value-added services upsold through downloaded apps are expected to exceed $14bn by 2014, according to a new report from Juniper Research.
 
Juniper's mobile applications report found that storefronts are increasingly likely to offer the facility to upsell premium content from within the app itself (including the App Store, starting later this year). The result being that the freemium business model – whereby applications are offered on a free to download basis but subsequently offer incremental revenues from subscription-based services and additional content options – will become increasingly prevalent over the next five years.
 
However, the report also observed that widespread deployment of the freemium apps model would pose a significant challenge to network operators, given that it offers the opportunity for much existing (and potential) content revenues to be directed through app stores (and the apps themselves) rather than through traditional distribution channels.
 
Nevertheless, as report author Dr Windsor Holden noted, "Although consumers are likely to shift from purchasing content on-portal to app stores offered by vendors and OS providers, those stores in turn represent an opportunity for operators to realise far greater revenues from consumer data usage."
 
The report argues that apps delivered on a freemium basis presents a substantial opportunity for content providers to derive additional revenues from advertising. The levels of repeat usage from applications downloaded via the App Store suggests that there is far more opportunity for brand exposure on a per download basis than with any previous content.
 
Other findings from the Juniper report include:

·         The low retail prices offered by Apple's App Store have already resulted in significant price erosion on other established storefronts
·         Short-term revenue growth from consumer-oriented applications is likely to be constrained by the global recession

NXP, the independent semiconductor company founded by Philips, today unveiled the world's 'first truly' industry standard Near Field Communication (NFC) controller, delivering a fully compliant platform for handset manufacturers and operators to introduce next generation NFC devices and services. The new NXP PN544 chip is based on the latest NFC specifications by the European Telecommunications Standard Institute (ETSI). It will enable mobile phone users to access a new range of contactless applications such as mobile payments, transport and event ticketing as well as data sharing directly from the mobile phone SIM (Subscriber Identity Module) for 'improved on-the-go experience'.

"In 2008, the GSMA Pay-Buy-Mobile initiative called for full NFC functionality including the standardized SWP protocol to be available from mid-2009, therefore we very much welcome the introduction of this fully standard compliant NFC product by NXP," said Nav Bains, Senior Director Mobile Money, GSM Association.

"Standardized SIM-based NFC chipsets provide a solid foundation for NFC adoption. They provide handset manufacturers, mobile operators, banks, transport operations and a host of other players, with a platform for their NFC developments" said Jonathan Collins, principal analyst, Short Range Wireless, ABI Research. "Standardisation will also help other organisations align their businesses to support mobile contactless services – stimulating the market further."

Using its specialisation in NFC technology, NXP has created with the PN544 a solution which is fully compliant with all released NFC specifications on the Single Wire Protocol (SWP) connection with the SIM and the Host Controller Interface (HCI). In addition, NXP worked closely with leading SIM card manufacturers such as Gemalto, Oberthur Technologies and Giesecke & Devrient to ensure SWP interface interoperability including support of the MIFARE technology. The new NFC controller is fully backwards compatible and interoperable with existing contactless infrastructure for payments and ticketing, already in place across the world.

"NXP co-invented NFC with the aim of putting the mobile phone at the centre of the consumer's world and the launch of this latest NFC chip brings that aim even closer", said Chris Feige, general manager, Near Field Communication, NXP Semiconductors. "Through extensive dialogue with all players in the NFC mobile ecosystem, we've created a solution which will help mobile operators, banks, retailers and services providers to offer new services enabling them to diversify their business and adding real value to the end user."

To meet the needs of the differing handset manufacturers, the PN544 has been designed to support the three main architectures which are used to secure NFC transactions, including the Secure Element within the Universal Integrated Circuit Card (UICC), within the SD card and within the mobile handset (embedded Secure Element: PN544 plus Smart MX security chip in a pin to pin compliant solution).

NXP has co-invented NFC jointly with Sony in 2002 and co-founded the NFC Forum in 2004 to drive collaboration with all stakeholders within the industry and help standardize the technology. Ranked as the number one contactless IC vendor by ABI Research in 2007 and 2008, NXP is the global leader in NFC solutions for mobile phones, infrastructure, PC and peripherals, which are field proven in about 200 NFC trials and landmark commercial deployments worldwide.

Other key benefits of the PN544 include:

• Small footprint for size optimization
• Optimized for low power consumption
• Working in Battery off and Battery Low modes
• MIFARE 1K/4K Reader/writer functionality enabled in host baseband
• Optionally available with an modular, generic and platform independent software stack
• Optimized antenna designs for best-in-class RF performance
• Shorter integration time due to qualified design-in support from NXP

NXP's PN544 is currently being sampled by a number of major handset manufacturers. Mass availability of the product is targeted during Q3 of 2009 – at the same time first commercially NFC-enabled handsets are expected to be launched.

On 16 May in Moscow, Russia, Europe's top song will be chosen for the 54^th time at the Eurovision Song Contest (ESC). The occasion is the 12^th time that MindMatics has been tasked with organising the SMS voting for a European Broadcasting Union (EBU) event as a partner to digame mobile, Cologne, Germany. The ESC is the largest TV voting event in the world.

A total of 42 nations are taking part this year. As was the case last year, the 2009 semi-finals have been divided into two groups of countries, with 37 nations battling it out for one of the 20 available places in the final. The first semi-final being held on 12 May 2009. As reigning titleholder, Russia has already qualified for the final, along with France, Spain, England and Germany as the largest participating countries.

In the final, viewers will have precisely 15 minutes following the final live performance to register their vote. MindMatics will then bundle all the SMS votes received from the respective countries and forward these to a pan-European voting platform provided by digame mobile, Cologne. There the final result of the voting will be ascertained from all the SMS messages and calls registered, before being sent to Moscow and each participating country.

On Saturday night at 9 pm CET over 100 million viewers throughout Europe will be following the ultimate musical event on TV.

"We are delighted that this year we are once again working with MindMatics AG as a cooperation partner for the Eurovision Song Contest", stated Werner Klötsch, Managing Director of digame mobile. "For us, reliability is of prime importance and MindMatics has already proved during previous joint events that it is more than capable of meeting our exceptionally high standards", he continued.

BlueSky Positioning, a provider of A-GPS technology for the SIM card industry, has announced its partnership with global geo-coded landmark data provider Gecko Landmarks. The deal will provide mobile phone operators with the ability to offer advanced Location Based Services (LBSs) on A-GPS SIMs to customers with handsets that do not integrate GPS capabilities. BlueSky Positioning's technology, A-GPS SIM, said to be the world's first Assisted-GPS module for SIM cards, is claimed to locate the handset quickly, accurately and securely.

Risto Savolainen, Bluesky Positioning's CEO, commented, "Our partnership with Gecko Landmarks is an important strategic milestone to allow us to bring value-added LBS applications and services, using A-GPS SIM technology, to ordinary mobile and smart phone users. Gecko Landmarks' unique geo-coded point of interest and landmark data covers every country in the world and together with A-GPS SIM it can support a variety of applications such as tracking, finding friends or places of interest and games – wherever you are."

Gecko Landmarks' new and highly innovative global landmark data application is the culmination of several years of intense R&D work. Landmarks help users to locate their friends or points of interest using practical and easy to understand landmark identification. The landmark data is constantly updated and includes well-known local landmarks such as hotels, hospitals, shopping malls, restaurants, schools, major intersections and churches.

Pasi Riipinen, CEO of Gecko Landmarks, added, "While maps are useful, they're designed to be spread out across a table and not squashed digitally onto cellphones. Inside a small screen they're cumbersome and out of place, which is why carefully selected landmarks are easier to understand. Globally speaking, most people don't navigate using maps, but rather use locally known landmarks instead. Additionally, using landmark instead of traditional mapping techniques is far more accessible, as it is a common geographical language understood across the world."

BlueSky Positioning enabled Gecko Landmarks tracking will be available for A-GPS SIMs in the second half of 2009.

Vodafone UK today announced that financial and business advisor Grant Thornton UK LLP has awarded it a two year contract worth around £2m to protect and manage its entire mobile working estate with Vodafone Secure Remote Access (VSRA).

VSRA is a remote working solution that is said to provide fully configurable policy-based access that aligns to business and employee needs. The service enables Grant Thornton to enforce IT policy for all its mobile staff, providing high-speed data transmission. Vodafone's solution provides mobile staff with a secure 'one button' connection to a range of mobile and fixed networks such as 3G, WiFi and fixed broadband.

Grant Thornton has over 3,500 mobile employees who regularly meet with its more than 25,000 individual and 15,000 corporate and institutional clients. 

Greg Swift, National IS Director for Grant Thornton, said: "By centralising the management of our mobile network, our staff have another enhanced service delivery tool that further increases our already high client satisfaction."