| Spotting a real winner gets harder. |
| Sunday, 12 October 2003 | |
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FT 13 October 2003 - Wireless opportunities stand out in today's investement climate. When it comes to investing in information and
communications technology, everyone, is searching for "the next big
thing," but there are fewer candidates than in the heyday of
second-generation mobile and the internet. However, a possible exception in the fixed telecom area is internet protocol(IP)technology which can be used to create cheap, virtual private networks for companies. This is in demand and there is also growing interest in voice-over-internet protocol (IP) technology, which enables many voice calls to be transmitted (as data0 over a single line. "The big spend item (for business users) in the next three to five years will be mobile access and high speed communication - as long as it does not blow the present spending limits," says Bernt Ostergaard, research director of Forrester Research. "You cold say that 'the killer application' is ubiquitous, secure access to your corporate applications at a reasonable price. That puts IP virtual private networks (VPN's) high on the shopping list." In terms of mobile access, companies attracting investment typically have products which promise to increase spending on other businesses services or products. For example, US-based V-Enable, which has technology that can simultaneously send information as voice and text, secured $3.75m in venture funding last month with Siemens Mobile Acceleration and Sorrento Ventures, the US venture capitalists, leading the round. Dietrich Ulmer, chief executive of Siemens Mobile Acceleration, says "(we) see the impact of their technology increasing user take-up of mobile communication." Because users will be able to see information even when they cannot hear it well or are not in a position to take notes, they are more than likely to use their mobiles, increasing average revenue per user (Arpu). Similarly, Flytxt, a UK based comany specialising in mobile marketing,uses text messaging and multimedia messaging services to stimulate interaction between well known brands and their customers to increase purchasing or awareness. It has gained £2m in funding within the past month, largely from Herald Ventures, the UK based venture capitalists. Mobile content is another potential source of revenue, both for mobile operators and for the companies which create the content. Don Listwin, chief executive of Openwave, the US mobile phone software company, believes taht mobile content provision will be a significant revenue generator. "Operators that take a proactive stance in evolving mobile content distribution channels will stimulate long-term Apru growth and customer loyalty, and reduce churn (customer turnover)." Wireless local area networks (W-lans, commonly called Wi-Fi networks), provide a way of connecting to high speed networks from public places such as airports, or a way of working more comfortably from home or office. They are also attracting investment. Microsoft is expected to announce at the ITU telecoms World 2003 show that it has reached agreement in the US with two mobile operators. T-Mobile and Swisscom to provide what it says is an easier way of accessing public Wi-Fi networks. When users switch on their laptops in a hotel or public place they will get a standard page offering them a consistent way of connecting to third party Wi-Fi services, and simplyfying credit card payment if they do not have a roaming agreement with that Wi-Fi provider. A Beta version of Microsoft's software can be downloaded from www.betaplace.com. Jawad Khaki, vice-president for wireless networking and communications at Microsoft, says: "Wi-Fi will generate more revenue for Microsoft and for our partners. It will maximise the benefits of our operating system by letting our users especially those using computers with lighter form factors (like Tablet Pc's) or built-in wireless support, be more productive because they can stay connected. "This will benefit our partners because users will be more likely to buy extra applications software, such as voice-over-ip software or location based services that could give you the departures screen if you are using Wi-Fi in an airport," he says. Both fixed telecoms operators such as British Telecom and their mobile counterparts, such as T-Mobile, the mobile arm of Deutche Telekom, are investing in Wi-Fi hotspots, as well as many start up companies. The business case is not proven, but the fixed operators hope Wi-Fi could help increase take-up of their broadband networks. Mobile operators hope customers will get so used to high-speed communication when they are travelling that, when no Wi-Fi network is available, they will use more expensive alternatives. In fixed networks, meanwhile, many experts believe entertainment an other forms of digital content will be needed to increase the revenues generated by broadband networks. "The convergence of vice with IP technology will have a major impact across the industry creating the opportunity for many new applications which will form valuable new revenue streams for service providers," says Geraint Anderson, Cisco Systems vice-president of sales and marketing for service providers. "In particular, there is metro Ethernet - the 'big one' for residential converged services as it will enable the delivery of all types of services to the home, including video on demand. TV, and live streaming video." But what about plain old broadband? Figures released in September by the International Telecommunication Union Show that the number of broadband subscribers worldwide rose 72 per cent in 2002 to about 62m. But Tim Kelly, head of the ITU's strategy and policy unit, thinks broadand is not a major industry driver in the same way that mobile cellular and the internet were in the 1990s. "It's an incremental improvement, offering internet access that is faster, more convenient and cheaper than ever before," he says. It looks as if investment will be focused on wireless for a while yet. © Copyright Flytxt Ltd 2006. Unauthorized use of any content constitutes a material breach. |
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