Profits on the move

Global demand for the latest mobile phones and portable devices shows no sign of abating over the next few years.

his year will see 3G finally gain mass acceptance in developed markets. The number of subscribers across the world will almost double to 85 million from 45 million in 2004, according to 2005 data from telecoms information provider EETimes. Getting subscribers is one thing, but if they are to make 3G profitable telecoms companies must persuade their customers to move beyond voice services to using video, multimedia and other data-rich content.


Stephan Krummer, Managing Directos, 3i Germany

To do this, content must be planned not only around the capabilities of new devices, but also around a keen understanding of what consumers want.

Many industry watchers believe the devices themselves need to become more intuitive, and that the content quality needs to improve if 3G is to realise its full potential.  “Consumers will look for high-quality mobile delivery devices as well as high quality content,” said Arnaud Perez of BNP Paribas.

Media and mobile technology New mobile technologies can already offer rich media services, such as video and “micro-TV”, over the handsets. But how many consumers want them? “Consumers will use these services, but in a relatively limited way,” said BSkyB’s Griffin Parry. “Given a choice of screens showing similar content, for example when they are at home, they will invariably choose the larger one.” Nevertheless, industry analysts believe that when consumers are away from home they will have an appetite for “bite-sized” video products, such as music videos.



Convergence will also have an impact on mobile media. Companies such as Sony are developing devices that combine iPod-like functionality with mobile phone and PDA services.

Handheld games machines, such as the Nokia N-Gage and the new Gizmondo, are also morphing into convergent devices supporting audio and video media. “We see the interdependence between media companies and consumer electronics companies increasing,” says Stephan Krümmer, who helped pioneer multimedia products at  Bertelsmann before joining 3i as Managing Director for Germany. “One side of the equation understands the media product, while the other understands what people want from technology. You need to do both to be successful with new media applications.”

“Further into the future, news and other information may be downloadable onto personal, lightweight A-4 sized data receivers, allowing users to access newspapers, broadcasts, video and other media content, as well as send content out, from any location,” says Peter Gardner. “There’s huge potential for improved portable devices that allow users to read documents, play games, organise their diaries and communicate in vastly easier ways.”

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