With Around 20 Million Users and a Penetration Level Above 95% the Australian Mobile Market Is Heading Towards Saturation

DUBLIN, Ireland–(BUSINESS WIRE)–Sept. 15, 2006–Research and Markets (http://www.researchandmarkets.com) has announced the addition of “2006 Australia – Mobile Communications – Voice Still the Killer App.” to their offering.

This report examines the Australian mobile communications market, identifying a number of important trends on both the demand and side supply side. The killer application on mobile remains voice and beyond voice, there will not be a lot of room for growth apart from the current niche market for mobile data in business. The report also analyses the activities of the major players – Telstra, Optus, Vodafone and Hutchison. Hutchison continues to outperform its competitors in terms of market growth, but competition is heating up in the 3G arena.

Topics Covered Include:

  • Industry moving into 2007
  • Subscriber Statistics
  • Revenue Overviews
  • Prepaid Services
  • Price competition
  • Infrastucture developments
  • 3G overview, statistics, analysis
  • The end of CDMA
  • Handset Market

Overview and analyses

This report examines the Australian mobile communications market, identifying a number of important trends on both the demand and side supply side. The killer application on mobile remains voice and beyond voice, there will not be a lot of room for growth apart from the current niche market for mobile data in business. Finally we are now beginning to see a more rapid rollout of 3G services in Australia, as mobile operators must tap into new revenue streams. 3G will give operators the network efficiencies to become more competitive both in voice and data services. The report also analyses the activities of the major players – Telstra, Optus, Vodafone and Hutchison. Hutchison continues to outperform its competitors in terms of market growth, but competition is heating up in the 3G arena.

Key trends

Substitution has started rather late in Australia. While Vodafone had threatened with it for many years, it was Hutchison that led the charge in 2003 and 2004 but it was not until 2005 before some real action took place. Telstra reported a drop of 7% in fixed line, mainly seeing these customers moving over to mobile. Further price cuts are needed to bring Australia in line with the rest of the world. A forecast until 2010 is provided. Substitution will also fuel to developments in fixed-mobile conversion market. However wireless broadband could even play a bigger role here.

Statistical information

With around 20 million users and a penetration level above 95% the Australian mobile market is marching towards saturation. There is still room to manoeuvre with another two million users to be added to the customer base in the next three years. This report brings you up to data with 2006 data and some prediction out to 2007 and beyond. Market share, penetration statistics and some key trends are highlighted in this report. The growth is slowly coming down to single digit figures after more than a decade of double digit growth.

Mobile phones are rapidly becoming commodities and fierce price competition has set in to keep and win customers before the much-hyped next generation data services. Growth in subscribers is slowing and Average Revenue per User (ARPU) has been steadily declining as result of sharply increased prepaid subscriptions and a range of capped price plans. Telstra’s market share has been stable, but Optus has lost out to aggressive capped price campaigns from Hutchison and Vodafone. This report looks at operators’ revenues, ARPU and revenue market shares moving into 2007.

Prepaid Service

Avoiding the monthly fee has always been – and still is – a very successful way to broaden the appeal of mobile services. Many potential subscribers, particularly outside the business market, are simply not prepared to pay a monthly fee for a service that they feel they may use only occasionally, particularly if they are tied in to minimum contracts of one, two or even three years. The prepaid model has taken off around the world, even in Australia after a reluctant start (50% penetration in 2006). Growth has seen distribution issues arise and electronic recharge options emerge.

From 2G to 3G

The mobile telecommunications infrastructure covers almost the entire population, with over 17,000 Base Transceiver Stations (BTS) in place. While many of these stations have antennae on obtrusive towers, most new sites in urban areas are now mounted on the sides of buildings and other structures. These antennae serve GSM, CDMA and WCDMA networks. CDMA networks are closing down in 2006/07. 3G networks arrived in 2005. By 2006 most infrastructure activities were concentrated around 3G. The 3G network-sharing deal is also analysed. This report summarises the key aspects of the infrastructure.

With the growing maturity of digital cellular systems around the world, attention has increasingly turned to the development of 3G cellular systems. The main objective of 3G systems is to provide a more robust network with a range of data and multimedia services. When 3G was first conceived in the late 1980s and early 1990s there was little or no discussion on issues such as wireless broadband services driven by the Internet. With mobile failing to open up more data revenues, wireless broadband could well take over this market, leaving 3G behind. By mid-2006 there were still only just over one million subscribers (5%).

The first 3G service was launched by Hutchison in 2003. After network sharing arrangements were signed in late 2004, more services are being launched in 2006. The initial services are positioned in the top end of the mobile market where there is more room for special services and where 3G can be promoted as a premium product. In another first for the company, Hutchison became the first 3G-only operator in the country in 2006.

Source- http://biz.yahoo.com

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Ringtone reality check: India cellphone story long way to go

NEW DELHI, SEPTEMBER 18: India hopes to be a telecom major by 2020 but trends indicate it is still on the dark side of the wireless divide: rural teledensity is still at 2 per cent, roughly where it was at the time of Independence, as against 40 per cent teledensity in the urban areas.

Fresh data for 2005-06 filed by telecom regulators the world over shows that mobile phones are a much bigger story elsewhere in the world, even in the neighbourhood.

Mobile phones have now reached 8 per cent of India’s 1 billion-strong population but in March 2006 Pakistan achieved a mobile teledensity of 14 per cent, clocking an impressive 170 per cent growth rate the previous year. India’s mobile teledensity is growing at 60-65 per cent a year.

Strife-torn Sri Lanka has al so done well: it crossed the 17 per cent mobile teledensity mark in early 2006 and its mobile phones are growing at 50 per cent every year. Bangladesh too has gone places: It registered a 138 per cent mobile phone growth rate in 2005 which no one expects to falter.

Nripendra Mishra, chairman of the Telecom Regulatory Authority of India, says “I think changes in rural India’s teledensity will show up in the next six or eight months – the moment we announce that the Universal Service Obligation (USO) fund will be given out for cellular telephony. In addition, new technologies like WiFi and WiMax will go into rural areas sooner than the land lines or mobile phone networks, and will make a serious impact for the better.”

India’s neighbours, including or excluding China, are not just distributing phones faster. They are also competing harder for investments that global telecom firms are now ready to make. In addition, mobile teledensity improves GDP, which could make India’s telecom rivals far more successful in other ways too. Analysts are beginning to caution that the only reason why India’s teledensity looks so good is because of its sheer size.

“We are not doing as well as our neighbours in expanding connectivity, be it Bangladesh, Sri Lanka or Pakistan. Though we are adding many phones in urban areas, rural teledensity is still at 2 per cent, roughly where it was when we became independent. We just keep on giving new mobile phones to those in big cities who already have land lines,” says telecom analyst Mahesh Uppal. Despite the wide contrasts in per capita income and GDP, sometimes its hard to tell who’s catching up on whom between India and its neighbours.

Even Afghanistan, where the mobile networks were built afresh in 2002 after years of wars, mobile teledensity has touched 4 per cent. This is just below the global low-income average, but Afghanistan is starting from a near-zero mobility base.

India may be a minnow before telecom heavyweights China, Taiwan, US but some of its biggest rivals are right next door. India and other Asian countries like Mongolia, Malaysia, the Philippines and Thailand launched their mobile networks in roughly the same decades but India lags behind the rest. Mongolia achieved 20 per cent mobile teledensity in 2006, though it started in 2000 with only two per cent – that’s a 100 per cent growth rate. Malaysia had 80 per cent mobile penetration in early 2006 and its people sent nine million SMS’ in 2005 which makes them the second best performers on this front, only after Singapore.

There is a reason why India has become a big telecom success story but not the biggest. For one, the rural teledensity target in India has been pending since 1995 (at 10 per cent) although urban mobile teledensity has skyrocketed to 40 per cent. Besides, Indian companies are waiting in the wings for their big chance: A government subsidy for going rural.

Changes in rural India’s teledensity is key because as we speak, Hong Kong is achieving 125 per cent mobile teledensity, South Korea 90 per cent, Australia 95 per cent and Japan 76 per cent. Weren’t these countries our real competition when we started out in 1991, not Bhutan or Nepal (both with 2 per cent)?

Source- http://www.indianexpress.com

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Vodafone, Sweden’s HIG3 join Iran’s intl. roaming network

TEHRAN – Vodafone from the UK and Sweden’s HI3G have been added to Iran’s international roaming list.

 

Subscribers to these mobile phone operators can use the services offered by the Mobile Company of Iran as of Monday September 18. Since the beginning of the current Iranian year (March 21), 16 other foreign mobile phone operators, including companies from Bulgaria, Tunisia, China, Australia, Taiwan, Malaysia, Hong Kong, Pakistan, Kyrgyzstan, Portugal, Luxembourg, Cyprus, and the Netherlands, joined Iran’s intl. roaming network. The list now includes more than 160 operators from 65 countries.

Source- http://www.zawya.com

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Integrian Launches New Mega-Pixel IP Camera at Innotrans in Berlin

RESEARCH TRIANGLE PARK, N.C.–(BUSINESS WIRE)–Sept. 18, 2006–Integrian, Inc. a leading global provider of mobile digital video solutions for the transit industry, announces the impending launch of its new high definition IP Camera. The announcement marks a significant step forward in the mobile video surveillance industry, allowing the best in high resolution image capture to become ultra-ruggedized for performance in extreme mobile environments.

Integrian’s IP Camera is optimized for use with the company’s TransitCam TC-50 and TC-100 video recorders and offers an amazing 1,280 by 1,024 pixel maximum resolution. Along with superior image quality and an impressive field of view, the new camera reduces processor load on the DVR by integrating efficient MJPEG compression with the camera unit. “IP camera technology enables a greater camera deployment per system as you are no longer limited by the 8 or 16 analog video input ports,” explained Integrian CTO Brad Silvernail. “Now you can cover more train cars or LRV interior area with your existing TransitCam DVR configuration, making your whole system far more efficient.”

Also noteworthy is the product’s versatility. Analog and digital IP cameras can be combined on the same system. Simplified signal wiring and power is achieved by leveraging Power-Over-Ethernet technology for easy installation, and the flexibility to reconfigure as needed.

The new camera uses an IP camera engine provided by partner IQinVision, the leader in mega-pixel IP network video cameras. “This is the first time our technology has been deployed as part of a turnkey mobile system. The Integrian team has developed a best-of-breed solution and we are pleased to partner with them on this project,” said Paul Bodell, Vice President of Sales and Marketing at IQinVision.

Integrian will be demonstrating the new high definition IP Camera at Innotrans in Berlin September 19-22.

About Integrian

Integrian develops and manufactures mobile digital video solutions for the public safety and transportation markets. The company has a broad customer base, having delivered over 2,000 transit and fleet computer systems over the past 10 years to transit authorities and corporations around the world. Integrian is currently supplying CCTV systems to large mainline fleets in the UK and has won additional major contracts for on-train CCTV systems in Ireland, Spain and Australia. Projects are currently underway at two of North America’s largest transit authorities, the New Jersey Transit system and MTA NYC Transit.

In addition to TransitCam for bus and rail systems, Integrian offers DigitalPatroller® surveillance product for public safety agencies. Integrian is headquartered in North Carolina, with international offices in Melbourne and London. For more information, visit www.integrian.com.

Source- http://biz.yahoo.com

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Mobile porn laws to protect kids in Australia

AU : THE Federal Government last night vowed to introduce laws protecting children from pornographic images being distributed via mobile phones.

Communications Minister Helen Coonan told The Daily Telegraph the Government would extend censorship and regulatory laws to mobile phones and include penalties.

“I will introduce to Parliament legislation to extend the current safeguards that apply to content delivered over the internet or television to content delivered over convergent devices,” Senator Coonan said.

The changes will include prohibition of content rated X18+ and above, as well as requirements for age-restrictions on access to content suited only to adults.

These prohibitions will be backed by strong sanctions for non-compliance with the new regulatory framework, including criminal penalties for serious offences.

The move comes as child safety groups called on parents to not buy their children phones with internet access.

NetAlert corporate affairs adviser Rod Knockles said last night many parents may not know of the capabilities of latest generation mobiles.

About 40 per cent of mobiles sold are internet enabled, meaning they can download clear images either via email or direct from the internet.

“Parents should think about what age it’s appropriate to give their children mobile phones that are internet enabled,” Mr Knockles said.

These mobiles are expected to grow in use in the years ahead as telecommunications companies push for more revenues through online content.

Among internet-enabled phones, lower end devices have access to their operator’s “walled garden” of content which can include songs, pictures and ringtones.

Recent phones have full HTML browsing – they offer an identical internet experience to your PC, only on a smaller screen. This means the user can visit websites, including adults-only sites.

Third generation networks will make accessing the internet even faster.

Mr Knockles said the images were generally downloaded from home computers, so a family-friendly filter would provide protection.

NSW Parents and Citizens president Dianne Giblin said mobile phone were an essential part of life for children

Source- http://www.news.com.au

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New players enter the mobile market in New Zealand

The mobile phone market is in for a shake up with three new players on the scene.

Orcon Internet, Compass Communications, and the Australian-based M2 Telecommunications have signed wholesale agreements to use the Vodafone network.

M2 currently has a fixed-line agreement with Telecom and is using Vodafone wholesale for its mobile offerings.

Vodafone’s Commercial Development Manager, Tom Chignall, says the company is not scared of the new competition to which it has opened itself up. He says Vodafone has also had inquiries from Internet Service Providers.

One of the mobile phone newcomers, Orcon Internet, hopes to be running by Christmas or early next year.

Its General Manager, Scott Bartlett, says he has no idea how big a market share it might be able to corner. The news deals double the number of mobile operators – joining established players Telecom, Vodafone and TelstraClear. Ernie Newman of the Telecommunication Users Association says consumers can reasonably hope for price cuts closing the gap with costs in
Australia.

Source- http://tvnz.co.nz

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Wireless Global Directory Launched

The Wireless Industry Partnership (WIP) launched its online portal Tuesday to connect wireless companies and venture capitalists to speed development of mobile technology.

The partnership, which has 148 members, 25 developers and 12 VCs, connects clients via the WIPConnector directory and its e-mail component.

WIP Chief Executive Officer Caroline Lewko said the directory will leverage the patchwork wireless industry, which, according to Insight Research Corporation’s 2006 Telecommunications Industry Review, will reach US$1 trillion by 2010.

“The wireless industry continues to be highly segmented, dealing with disparate technologies, platforms and operating systems, a variety of regulatory environments, a lack of standards and a host of other issues,” Lewko said.

“Each part of the wireless industry value chain-from ideas, to developers, to venture capital-and distribution channels are represented, with members including large companies such as Ericsson, Navteq and Nortel and many smaller startups.

“WIP links developers to programs for technical information and support for the creation of new applications, provides a directory for members to quickly identify and contact the right people to network such as those developing technologies within specific market niches, and allows access to market intelligence and directory of industry groups and organizations.”

WIP’s membership outside Australia extends across Canada, America, India, Ukraine, the United Kingdom, Germany and Spain with its partner network including the MX Alliance in Scotland, the Ottawa Wireless Cluster, and the Wireless Innovation Network of British Columbia.

Gary Hewett, chief software architect at WIP member Technical Magic, said the directory increases the company’s global visibility.

Source- http://www.cio.com

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Mobile Collaboration For A&NZ

September 1st, 2006: Open Terra and Field Access Systems have officially launched Teamconnectx in Australia and New Zealand.

Teamconnectx is the next generation in mobile collaboration and information exchange providing unparalleled business class people management with end-to-end highly secure presence management and mobile instant messaging (IM).

Utilising Internet connectivity and the most common mobile device on the market today “the mobile phone”, Teamconnectx lets users and businesses manage, share, communicate and interact in real time with anyone, anywhere, anytime, in collaborative team environments.

Teamconnectx currently operates on any Java 2 enabled mobile device, including those from manufacturers such as Nokia, Ericsson, LG, Motorola, Alcatel, O2, Orange, Samsung, RIM BlackBerry and many more. Teamconnectx is also supported on the leading Australian wireless carriers, including Telstra, Optus, Vodafone and more.

“We are very pleased to be partnered with Field Access Systems in offering the latest in mobile collaboration technologies to the expanding mobile marketplace in Australia and New Zealand,” states David Sasson, Chief Executive Officer of OpenTerra. “Field Access Systems has done an incredible job with driving sales for Teamconnectx and have only just started in the sales effort. The rate of acceptance for hosted mobile business solutions in Australia is staggering and we are glad to be joining Field Access Systems, the leader in mobile business solutions in this region of the world, in offering Teamconnectx.”

Future plans for Teamconnectx include seamless integration into leading ERP and CRM providers, including SAP, Oracle, Microsoft, Saleforce.com and more.

Source- http://www.idm.net.au

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AirG’s Mobile Community Hits 10 Million Users; Becomes World’s Fastest Growing Mobile Social Network

VANCOUVER, BRITISH COLUMBIA — (MARKET WIRE) — August 28, 2006 — AirG, the global leader in powering mobile communities and wireless social networking, announced today that as of May 1, 2006, its mobile community reached a new milestone by surpassing more than 10 million unique users, making it the fastest growing mobile social network in the world. The rapid growth of AirG’s community is evidence that wireless social networking is becoming a mass market phenomenon and will soon rival the popularity of social networking on the Internet.AirG has been successfully powering social networking on mobile phones since 2000, and has built a mobile community that is interconnected to more than 85 mobile operators globally, including Sprint Nextel, Cingular, Boost Mobile, Orange and Virgin Mobile. Many of AirG’s millions of unique users are in the coveted 18-25 demographic and spend an average of 59 minutes per day in the community. Based on these numbers, it is no surprise that mobile operators, media companies, consumer brands and advertisers alike are taking notice.

“AirG’s social network is the only mobile application in the market today where users are captive in a live and interactive environment on their phones for an average of an hour each day,” commented Frederick Ghahramani, co-founder of AirG. “This provides a tremendous opportunity for mobile operators, brand holders and advertisers to engage customers and communicate with them directly.”

To demonstrate the power of mobile communities to reach consumers directly, AirG recently conducted a survey in its community where over 30,000 users responded in just 90 minutes and provided valuable insights into their spending habits and behaviors. The survey found that the majority of users would rather chat on their phone than watch TV, do not own a PC, spend more than $80 each month on their mobile phone, and spend more than $100 each month on clothes and entertainment. In fact, the response rate to advertising in AirG’s mobile community is on average more than ten times as effective as online.

AirG’s comprehensive suite of mobile community products includes the Community Marketing Engine, Community Patrol, Community Storefront, Community Marketing Toolkit and Micro-Community Interface, and is available for licensing by mobile operators, media companies and consumer brands. By combining instant critical mass, recurring revenues, 24×7 monitoring and support, and the ability to target market directly to users in the community with a patented cutting edge user interface; AirG has the most feature-rich, interactive and fastest growing mobile community solution available in the market today.

About AirG

AirG powers mobile communities and wireless social networking. The company’s products and services have a proven track record of increasing customer affinity for leading mobile operators and media companies globally including Sprint Nextel, Cingular, Boost Mobile, Virgin Mobile, Orange and MTV Asia. AirG’s mobile community has more than ten million registered users worldwide and is available on more than 85 mobile operators. Based in Vancouver, Canada, the company also has offices in the UK, Australia, France, Germany, the Philippines and India.

Source- http://www.marketwire.com

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