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Mobile messaging operator TynTec has announced that it has been selected by TextMagic, the online SMS service provider, to provide the company's messaging services.  Under the deal, TynTec will provide TextMagic with incoming and outgoing SMS messaging to underpin its online SMS communications service.

TextMagic will be using TynTec for the two parts of its services.  When users send a message via TextMagic's online, API or email SMS interfaces, TynTec's high-reliability SMS sending (MT) capabilities will power the communication.  By using TynTec in this way, TextMagic can take advantage of its local time stamping capabilities, meaning the recipients of messages will always have accurate local time stamps on their received messages.  TextMagic will also use a TynTec-hosted long number to manage incoming reply messages.  As well as offering high-reliability in message receipt, this TynTec service will give TextMagic the ability to use memorable and marketable numbers.

By deploying TynTec's services at the heart of its products, TextMagic will be able to take advantage of the company's significant geographical reach, covering 400 networks in 160 countries. In addition, the TynTec's promise of high speed (under 15 seconds) messaging transmission will further enhance TextMagic's offering to its customers. TextMagic also takes advantage of a real-time Mobile Number Portability check and reliable delivery notifications.

Priit Vaikma, TextMagic, said: "TynTec offers us everything we need in an SMS services provider - as well as a reliability promise for both sending and receiving, they can give us massive geographical reach at a competitive price point.  Our customers use TextMagic to send and receive SMS from their computers - they want their text messaging to be quick, cost-effective, reliable and measurable.  Working with TynTec we can offer all of this and more."

Michael Kowalzik, CEO of TynTec, said: "TextMagic has been providing SMS services since 2002, and by using TynTec,, TextMagic are getting the best of both worlds - they get the speed, reliability and reach that we can offer through our unique technical infrastructure combined with a great price point that means that they can maintain their margins in a competitive market."

A new analysis of the Near Field Communications mobile payments opportunity has forecast that the gross transaction value of payments made via NFC contactless technology, for relatively low value purchases (such as refreshments, tickets and food), will exceed $75bn globally by 2013.  

In the second report in its Mobile Payment Markets series, Juniper Research says it has found that there is a significant opportunity for NFC mobile payment services, chips, phones and supporting services as the market reaches its tipping point over the 2011 to 2013 period.  The study is said to explore how NFC will transform the mobile phone into a mobile wallet payment tool that will be used by more and more people, more and more often in future.

Report author Howard Wilcox said: "NFC will achieve traction initially in developed countries and regions, with Japan already leading the way with FeliCa-enabled phones. North America, Western Europe and countries such as Korea, Singapore and Australia are likely to see service take-up."

According to Juniper, highlights from the report include:

  • Global annual gross transaction value will grow over 5 times between 2011 and 2013
  • 2009 will see limited numbers of NFC devices shipped (except in the Far East & China region) but the market will begin to ramp up from 2010 onwards and by 2013 20%, or 1 in 5 phones shipped, will possess NFC capability.
  • The top 3 regions (Far East & China, North America and W. Europe) will represent nearly 90% of the $75bn p.a. market (by gross transaction value) by 2013.


However, Howard Wilcox cautioned: "Whilst trial results so far have been encouraging, the industry as a whole will need to convince both consumers and merchants of the merits of yet another payment mechanism on top of cash, cheques, credit and debit cards, and to allay understandable (even if unfounded) fears and scepticism about the security of The Mobile Wallet." 

The report provides six year regional forecasts of NFC mobile payments for physical goods, providing data on device shipments, subscriber take-up, transaction sizes and volumes as well as detailed case studies from companies 'pioneering' in the market.

Opera Software today announced that Swisscom, Switzerland's leading telecoms provider, has selected the Opera Mini browser to deliver a 'better' Web experience to its mobile phone customers. Opera Mini will be available for download over the air (OTA) on most Swisscom-operated phones in the near future.

With Opera Mini, Swisscom customers can take advantage of the full Web on their mobile phones. Opera Mini's compression technology is said to mean that the content that users are viewing will be delivered faster and more cost efficiently by reducing the amount of data transferred to the phone.

"We are the leaders in providing the Internet to Switzerland. We are proud of our advanced HSPA (High Speed Packet Access) network that currently covers 90 percent of the Swiss population," says Thomas Hüter, Head of Internet Experience, Swisscom. "We wanted the most feature-rich and fast browser available that will work on all the Swisscom mobile phones on the market today. Opera Mini has proven its value to millions of users all over the world, and we want to offer our customers a great mobile browsing experience."

US research  company, comScore, has reported that iPhone users surpass all others in mobile media usage, with more than 80 percent of iPhone users in France, Germany and the UK using the device to browse news and information on the mobile Web, compared to 32 percent of other smartphone users. 

As the market anticipates the launch of the 3G version in Germany and the UK today, comScore M:Metrics says it confirms that even on the slower 2.5G mobile network, the iPhone has increased mobile Internet consumption by a factor of 13 times in the case of a category such as social networking sites.  The study also found that 42 percent of iPhone users visited a social networking site on their device in May compared to the market average of 3 percent and 10 percent of smartphone owners.  E-mail is another popular feature, with nearly 70 percent of iPhone users sending and receiving e-mail with the device, compared to just 26 percent among other smartphones users and 7.6 percent of the cell phone market overall. 

"Our data confirm that the iPhone and its requisite data plan have succeeded in drawing consumers to the mobile Web," said Paul Goode, senior analyst, comScore M:Metrics, "Even without 3G networking, users are happy to browse and consume as much content as they can, and as soon as the data speeds improve, these figures will likely continue to increase."

The improvement in iPhone handset features and reduced pricing should have a significant impact on uptake, especially in the European markets where, according to comScore M:Metrics data, the UK has 3G penetration at 26 percent, Germany at 23 percent and France at 17 percent. 

comScore M:Metrics also found that while smartphones are adopted by a higher proportion of men than mobile phones overall, iPhones have an even stronger skew to men in the U.K. and Germany.  In the U.K for example, 75 percent of iPhone users are male, while men account for about 68 percent of smartphone users. In contrast, in France, 67 percent of iPhone users are men compared to a higher 71 percent of smartphone users 

"It is worth noting that the Nokia N95 8GB with high speed 3G and significant handset subsidies now has over twice as many users as the iPhone across the UK, Germany and France," observed Goode. "Yet the iPhone, despite its small user-base, is already in the top 10 handsets for online browsing in the UK and in the top 5 in France and Germany.  It is giving devices like Nokia's N Series and Sony Ericsson K and W Series a definite run for their money."

Mobile payments specialist Dialogue Communications has announced more Payforit developments with the launch of Payforit single click payments.  Dialogue says this latest feature will significantly improve Payforit's usability and revenue generating potential.

The Payforit payment mechanism allows consumers to pay for content, goods or services purchased on the mobile internet or web via their mobile phone, currently up to the value of £10. Although the Payforit system is said to have been well received, mobile users have complained that going through the full payment cycle for every purchase is monotonous.

As a result of the feedback, Dialogue looked to create Payforit single click and made a proposal to the operators in March 2008. The new single click feature will allow customers to buy from an internet page with one easy click, without having to additionally click-thru the standard Payforit pages on every occasion.

Guiom Peersman, Dialogue's MD, introduced the idea of integrating single click purchases into the Payforit framework to mobile operators earlier this year, and he believes it will further enhance the payment mechanism: "Single click purchases are widely available on the web, on sites such as Amazon and iTunes, so there is no reason why mobile internet services should be any different and I think it is something mobile users are also starting to demand. The single click option will not only improve the user's experience of Payforit but it will also encourage repeat purchases and give users the power to tailor their buying preferences.

"Dialogue is proud to be driving Payforit innovation forward and that its single click proposal has been approved to be included in the next version of the Payforit framework."

The single click function works from the Payforit pages once the user has selected the item they wish to buy. Initially users will be required to go through the normal payment flow for their first purchase but once they are comfortable with Payforit, they will be given the opportunity to use the single click version of Payforit in the future.

Vodafone Ireland has selected Ericsson to be the systems integrator of a real-time charging and IP Multimedia Subsystem (IMS) solution, including upgrading and expanding the operator's network.

Under the agreement, Ericsson will be responsible for systems integration of existing solutions into the next-generation IMS environment. Ericsson will also upgrade and expand network capacity, enable real-time charging and underpin demanding multimedia functionality.

Ericsson's real-time charging solutions provide operators with a flexible, secure and efficient revenue management system, and enable consumers to better manage their spending. The IMS environment and expansion of IP service capacity will support next-generation broadband multimedia applications that facilitate a richer user experience.

The deal builds upon Ericsson's long-standing relationship with Vodafone Ireland as its sole supplier of an IP-based circuit core network. Based on the Ericsson Mobile Softswitch Solution, the network will now be upgraded to support interworking with IMS.

Mats Svärdh, Chief Technology Officer at Vodafone Ireland, says: "The always-on multimedia demands of our customers challenge us to deliver consistent high quality with real-time charging at home, on the move and when traveling abroad. Ericsson's strength as an end-to-end systems integrator is helping make our multimedia vision a reality."

John Hennessy, Managing Director, Ericsson Ireland, says: "We are delighted to extend our partnership with Vodafone. The integration of this next-generation, end-to-end solution will help the operator realize new revenue opportunities and expand its multimedia offering to its customers."

According to a new study by Frost & Sullivan, the future of the mobile market in Eastern Europe rests in the growing popularity in mobile TV.  

"Mobile TV refers to the transmission of audiovisual content to mobile devices," reports Frost and Sullivan Research Analyst, Saverio Romeo.  "It means viewing any content on the move, anywhere and anytime. This concept completely changes the usage of audiovisual services, and consequently, the consumer's experience. In fact, the mobility not only allows users to view content on the move, but also to share content on the point of inspiration with other users introducing new forms of interactivity."

Eastern European countries are already tapping into Europe's success, says F&S. New technologies such as MediaFLO, T-DMB, DVB-H and TDtv are being reviewed in various countries. In Poland, the Office for Electronic Communications (UKE) has launched the tender for 38 channels to major cities within the country.  In Russia, MTS, the market leader, is ready to launch a mobile TV service offering 20 channels.  In Hungary, the four companies of Vodafone Hungary, Nokia-Siemens Networks, T-Mobile Hungary, and Antenna Hungaria together launched a trial of a DVB-H network in Budapest in January 2008.  The Czech Republic and Romania will not be left behind.  Since the end of 2006, T-Mobile Czech Republic is running DVB-H trials in Prague with the help of the media company, Radiokomunikace. Orange Romania is currently orchestrating trials in Bucharest.

According to Frost & Sullivan, the success story of the Italian mobile operator, 3 Italia, commanded the attention of western and eastern European countries alike. "In 2006, 3 Italia launched its mobile TV (DVB-H) service.  3 Italia started the service in time for the football world cup and so had an astonishing take-up rate. The reason for this success was quite simple," says Saverio. "Football supporters do not really care about technologies. They want to view their teams when they are not at home at a good quality and at a package, which meets the needs of their wallets. 3 Italia managed to do all of this. The Italian mobile operator gained 400,000 subscriptions in 10 months. At the end of 2007, almost 900,000 Italians used 3 Italia's mobile TV platform. At the beginning of June 2008, 3 Italia launched a mobile TV service out of charge and ad-based."

The 2.6 million current European consumers are driven by three major factors: content quality, cost of service, and cost of mobile device. Satisfying the target consumers, in Eastern Europe, brings challenges for the operators and providers.  Success depends on having 3G and beyond 3G network coverage for unicast (streaming video to a mobile device via the cellular networks) and on-demand solutions.  Operators and providers must also establish and pay for the high cost of quality network infrastructures like DVB-H. The regulatory framework should be established to allocate spectrum.  Along with this, handsets with sufficient audiovisual functionalities and easy-to-use interface must be readily available. Finally, the price must be attractive enough to draw in a vast audience.

F&S says that the evident success of this new mobile service offers an exciting opportunity for mobile operators and providers in Eastern European countries, as they jump on the mobile TV bandwagon.

free-hotspot.com, said to be the world's largest free Wi-Fi Internet service provider, announced today that it has successfully installed its service in two Brittany airports, Quimper Cornouaille and Lannion - Côte de Granit. The installations are said to reflect a commitment by free-hotspot.com to provide its free Wi-Fi service in regional as well as international airports. The company plans further airport installations in the UK and the rest of Europe in the near future.

Equipped for several months now, the Quimper Cornouaille airport was the first to benefit from the free Wi-Fi service offered by Irish company free-hotspot.com. Within just a few months, passengers have quickly adopted the new service that allows them to stay connected and to work using their own laptops whilst waiting for flights. Use of the free Wi-Fi service has increased month on month, and now one in every 20 passengers passing through Quimper airport are said to benefit from the free Wi-Fi offering.

Lannion - Côte de Granit airport has also just partnered up with free-hotspot.com to offer free Wi-Fi to its passengers. The installation was undertaken recently, but initial feedback is claimed to already suggests that the service will be at least as successful as the HotSpot in Quimper.

Joe Brunoli, Vice President, Business Development at free-hotspot.com comments: "We are delighted to be providing our service to regional airports such as Quimper and Lannion. The increasing demand for free Wi-Fi by air passengers of all types means that our service is a must-have for all airports, and not just the major hubs."

"Airports are well suited for providing free Wi-Fi services," explained Brunoli. "Offering free Internet access means that the passengers are likely to spend more time at the airport, and may even arrive earlier to go online while in the gate area. The result is less congestion through security, a better customer experience, and more terminal revenue thanks to increased per-passenger spend," concludes Mr. Brunoli.

Allround has announced that it has been selected as vendor for Near Real-Time Roaming Data Exchange (NRTRDE) solution by MagtiCom, the growing mobile operator in Georgia. Allround says its in-house NRTRDE approach has been selected many times instead of outsourced services mainly by those operators who focus on long-term benefits.

NRTRDE (Near Real-Time Roaming Data Exchange) is a new method for reporting the subscribers' roaming activities that enables operators to detect high network usage and other fraud issues in near-real time. Since roaming fraud is a serious global concern for mobile operators, the implementation of the NRTRDE system for all GSMA members shall be done by 1 October 2008, according to the GSMA recommendation.

Answering the increasing need for high quality NRTRDE solutions Allround claims to offer a solution to GSM operators to comply with the NRTRDE requirements in a cost-effective way.

"Allround has been selected because it is proven partner of MagtiCom, being the supplier of the roaming management solution, AllRoamer. We were also impressed by the in-depth expertise that Allround showed in the roaming and NRTRDE area."  - says Nino Avaliani, Director of Customer Care Department at MagtiCom.

"We are glad that MagtiCom selected us. We are always looking for building a strategic cooperation with our customers offering the best solution that perfectly fits their business needs. Incorporating 10+ years experience in roaming and fraud detection area we strongly believe that operators will pioneer the long-term benefits of in-house NRTRDE solutions." - says Lilla Csókási, Head of Marketing & Sales at Allround.

The European Competitive Telecoms Association, the pro competition group, has given a cautious welcome to proposals from the European Parliament to amend the EU Telecoms Framework, but warned that many of the amendments approved by the European Parliament's Industry Committee on 7 July protect and favour dominant firms at the expense of competition in the telecoms sector. ECTA cautioned that, if adopted by the Parliament and endorsed by other European institutions, the advantages gained by the dominant firms under the proposed revisions to the EU legislation could undermine competition in high-speed broadband services.
Innocenzo Genna, Chairman of ECTA, said: "Consumers and businesses in Europe have reaped the benefits of lower telephone prices, ever-increasing broadband speeds, more investment and innovative triple-play offers that have been brought to them as a result of competition in the telecoms market. But these benefits, many of which are due to effective wholesale regulation in the sector, can disappear just as quickly as they arrived, if policy-makers make too many concessions to dominant firms." 
One of the key areas in which ECTA has been seeking support is for local loop unbundling rules to apply to fibre as well as the existing copper network.
Genna continued: "We are pleased to see that access to fibre networks has been reflected in the Parliament Committee's proposals. This is a very positive signal. But the devil is in the detail: unless the price and the access conditions to the local loop are reasonable then the change is ineffectual and incumbents will have a return to the monopoly they are looking for. And here we fear that dominant players have gained the upper hand."
Dominant operators have argued that regulation must be weakened to allow them to invest in expensive next generation fibre access networks. However, recent research from WIK Consult has found that incumbents would incur 30% lower costs in rolling out fibre networks than competitors because they already own crucial elements of the infrastructure. In addition, incumbents' high share of subscriber lines and ability to make efficiency savings by selling local exchange buildings significantly reduces their risk in upgrading their access networks.
A critical concern is that the Committee has proposed to replace the current, positive, principle of ensuring a fair and risk-adjusted return on investments by dominant firms with the concept of ‘risk sharing'. ECTA believes the main result of risk sharing will be to further decrease the risk for dominant players and increase the costs and risk for competitors with substantially lower revenues and profits.
Some parts of the telecoms sector are characterised by very high scale economies, similar to energy and post. This means that essential parts of the infrastructure will inevitably be in the hands of the one or two biggest players in each country. It also means competition and consumer choice in the vital broadband market is largely dependent on competitors being able to access that infrastructure, in particular the ‘local loop'.
Genna continued: "Former incumbents' main goal has been a clandestine return to their old monopoly position. They have sought to undermine access conditions for competitors, weakening the intense competition that has been developing in the past few years. Seemingly harmless concepts such as risk sharing among operators have been put forward with the less positive aim of pricing out smaller rivals from essential parts of the network."
In addition to introducing ‘risk sharing' dominant firms also succeeded in watering down the remedy of functional separation, which was proposed by the Commission and endorsed by the European Regulators Group as an option that should be available to regulators to strengthen competition in the sector. Whilst not adopted by the Committee, some MEPs had also argued that the Framework for competition as a whole should be phased out as early as 2014.
ECTA urged the European Institutions to stand up for consumers and competition, and reject deals aimed at supporting dominant firms.

DeviceAnywhere has unveiled the new Forum Nokia Virtual Developer Lab (VDL) - a remote testing service designed to reduce the time and resources required to develop, test, monitor, and deploy applications and content for Nokia handsets. The on-line service supports the most popular Nokia devices running on the Series 40 and S60 platforms and is available globally to all members of the Forum Nokia developer community. 
Forum Nokia VDL is powered by DeviceAnywhere, a revolutionary online service that provides access to real mobile handsets that are each connected to live networks. These devices are accessible remotely over the Internet, allowing members of the Forum Nokia community to meet all development, porting, testing, and monitoring needs without acquiring a physical device. DeviceAnywhere employs real, physical handsets - therefore, anything that a user can do with a device in his/her hand, he/she can do with the handsets in DeviceAnywhere - in real-time. This includes tasks such as pressing device buttons, tapping on touch screens, connecting/disconnecting the battery, viewing the LCD, listening to ringers and speakers, and opening/closing a handset.
DeviceAnywhere is an enabling technology that allows developers to collaborate on one project regardless of differing geographic locations. Community members can share devices among developers in different regions of the world, as well as save test results to share at a later time. This synergy empowers developers to create better, higher-quality content, as well as enables faster time-to-market.
"Increasing availability of high-bandwidth networks and improvements in mobile device functionalities are fueling consumer expectations for increasingly sophisticated applications and services," said Shiv Bakhshi, Ph.D., director of Mobile Device Technology & Trends program at IDC. "But creation of innovative mobile apps and services requires that developers have easy, and fast, access to mobile devices so that they can test and optimize their offerings. Unfortunately, given the ever burgeoning portfolio of mobile devices from handset vendors, this can be very expensive both in terms of time and money. The situation seems to beg for a solution that allows developers, distributed in time and space, prompt and continued access to new devices without imposing any serious financial burden."
 "Forum Nokia is committed to providing developers with the latest innovations in tools and testing services to enable them to produce rich, viable content to deliver to end-users worldwide," said Tom Libretto, VP of Forum Nokia.  "Our collaboration with a best-of-breed technology like DeviceAnywhere to establish the Forum Nokia VDL not only provides our developer community with remote access to devices, but it also enables them to collaborate and work together to ensure that Nokia customers are receiving high-quality content and benefiting from the best mobile experience possible."
"The mobile ecosystem mandates that OEMs deliver handsets that create seamless, unique end-user experiences - and for a world-class, global leader like Nokia, this is particularly important," said Faraz Syed, CEO and co-founder of DeviceAnywhere. "The added value of DeviceAnywhere will empower Forum Nokia developers to remotely access Nokia's most popular devices, as well as collaborate with colleagues worldwide to produce higher-quality content for Nokia's customers."
Through the Forum Nokia Virtual Developer Lab, developers currently have access to more than 40 of Nokia's most popular devices available both in Europe and the United States - with new devices continuously added. Some of Nokia's most popular in-market devices that are currently available through the VDL include the Nokia 7900 Crystal Prism, the Nokia N81 and the new, slim-formed Nokia 5310 XpressMusic. A Series 40 device, the flash-enabled Nokia 5310 XpressMusic is one of the most sophisticated music phones on the market, featuring Bluetooth stereo, memory expansion card slot and music playback buttons.

FTS, a provider of Billing, CRM and Business Control solutions for communication and content service providers, today announced the launch of Leap Billing & CRM - the next generation of its converged billing & CRM solutions.

The product suite is said to have been designed to inherently unify billing and CRM information, providing a holistic view of all customer events and billing events, and enabling in-depth service personalization. Based upon a process-driven design, the solution offers unparalleled flexibility, empowering service providers to quickly launch and easily manage multi-service offerings in-house, in real time, without vendor intervention.
Leap Billing & CRM is an end-to-end converged solution based on telecom-specific business processes that reflect the industry's best practices. The solution allows new business practices to be instantly implemented, and new services, bundles and promotions to be rolled out immediately, without involving costly billing and CRM integration projects. In this way, Leap Billing & CRM offers a long-term, viable solution to the ever-evolving needs of telecom providers.
"With knowledge-driven personalization becoming a critical differentiator in the multi-service environment, service providers need to quickly implement ever more specific business processes and business rules," said Teresa Cottam, Associate Principal Analyst, Analysys Mason, and author of The Next-Generation Bill: Commercial and Technical Strategies. "Being able to do this in-house in real time, without the vendor's intervention, is compelling because it eliminates a time-consuming and often costly stage in the delivery chain."
"While many solutions try to offer integration between billing and CRM systems, Leap Billing & CRM is a truly unified solution that improves customer experience and gives the control back to the service provider," said Amos Sivan, CEO, FTS. "Service providers can now offer their customers a much more personalized service, while maintaining full control of their business processes, as new products, bundles and promotions no longer require lengthy integration projects or external resources."
FTS' Leap Billing & CRM enables service providers to respond quickly and flexibly to each billing or customer event, taking full advantage of all existing CRM and billing information to increase revenues and improve customer satisfaction:
- Leap Billing & CRM has been designed from the ground up as a converged solution.
- Using a unified product catalog that centralizes product offerings across billing, CRM and order management, Leap Billing & CRM enables service providers to easily define new bundles in-house. This means they can respond immediately to market trends and differentiate themselves from their competitors.
- The platform utilizes SOA (Service Oriented Architecture) and Oracle's BEA market leading Aqualogic(R) BPM (Business Process Management) engine to provide an open and highly flexible solution.
- Leap Billing & CRM offers a holistic view of all customer and billing events, ensuring efficient, effective, and seamless customer and account management.
- A unified desktop tool for Customer Service Representatives (CSRs), with a single view of all customer information, removes the need to navigate between multiple interfaces. Aside from enhancing efficiency, this also maximizes the value of each customer, boosting cross-sales and up-sales processes while improving customer satisfaction with service personalization.
- FTS' Leap Billing & CRM takes personalization one step further with multi-service billing capabilities, flexible convergent charging, and real-time customer self provisioning.
- Leap Billing & CRM also comes complete with FTS' patented Do Tree(TM). The Do Tree offers business control by combining in-depth business analysis with the ability to define business rules that are automatically executed when triggered by specific network, customer or balance events.

Joikusoft Oy has today announced JoikuSpot Premium Edition, an operator
grade secure mobile software solution that turns S60 mobile phones instantly
to mobile WLAN (Wi-Fi) HotSpots.

According to Joikusoft Chairman and Founder Mr. Tom Ojala "Premium
Edition represents a major milestone in our roadmap. Premium will bring a
long awaited corporate intraweb (VPN) and email protocol support to the
JoikuSpot software allowing business level use of the solution."

JoikuSpot installs directly to a mobile phone and allows the phone to
share its 3G internet connection wirelessly over WLAN with a laptop, iPod,
iTouch, EeePC or Nokia internet tablet. Multiple devices can be connected to
a JoikuSpot in parallel and seamlessly share the same 3G internet connection.

JoikuSpot Premium is fully secure and makes use of the maximum security
offered by the underlying powerful Symbian OS platform. The users have full
control over who gets to use their JoikuSpot internet access

JoikuSpot Premium is open for commercial licencing toward Operators, OEMs
and Corporates, and is fully customizable for the licencee branding and
feature configuration needs.

The widespread success of mobile broadband services - which now have more
than 100 million subscribers worldwide using more than 300 networks - is
sparking a data traffic boom that will revive the struggling mobile base
station market by 2011, according to Mobile Networks Forecasts: Future
Mobile Traffic, Base Stations & Revenues, a new strategic report from
Informa Telecoms & Media.

Global mobile data traffic is set to increase 1088% from 162 petabytes
(PB) in 2007 to 1,925PB in 2012, driven by a boom in advanced applications
such as mobile Internet browsing and video, according to Mobile Networks

The report forecasts that global mobile traffic from YouTube and other
mobile video streaming applications will increase by 5514% by 2012.
Another key factor in the traffic boom is the rise of user-friendly
devices such as the iPhone, which can lead to a thirty-fold increase in
traffic per subscriber.

But operators will struggle to cope with the traffic boom because the
popularity of flat-rate tariffs means that mobile data revenues will not
keep pace with traffic - which has a direct impact on costs.

"We forecast that global mobile data revenues will only increase 77% from
2007 to 2012, compared to a 1088% increase in mobile data traffic over the
same period," says Mike Roberts, principal analyst at Informa Telecoms &
Media and author of Mobile Networks Forecasts. "This will push current
mobile network costs and architectures to the breaking point, and will
lead to everything from network sharing and spectrum refarming to the
launch of femtocells and next-generation networks."

The disconnect between soaring mobile data traffic and modestly increasing
revenues helps to explain why operators will keep a lid on network
investment in the short term. "The mobile base station market will be flat
for several years due to restrained operator investment in many regions
and fierce price competition among vendors, but base station unit sales
and revenues will rebound in 2011 as the mobile traffic boom forces
operators to invest in new capacity," Roberts says.

The mobile traffic boom will also lead operators to increase investment in
next-generation networks such as WiMAX and LTE, which can support higher
traffic loads at lower cost compared to traditional systems. As Roberts
notes, "This will lead both WiMAX and LTE base station unit sales to
overtake those of CDMA by 2012, as operators shift investment to
next-generation systems."

Mobile Networks Forecasts also predicts that 2011 will be the year when
global mobile data traffic overtakes mobile voice traffic, which has
always driven mobile network design, rollout and operation. "The mobile
industry is still largely structured around its key product to date,
narrowband voice, but that structure is breaking down fast due to the boom
in mobile data traffic," Roberts says. "The rapid transition from voice to
data traffic will lead to a fundamental overhaul of mobile networks, as
mobile operators and vendors shift their focus from voice to the mobile
broadband Internet. This in turn will help drive a wider overhaul of
mobile business models and strategy."