"Aperto manufactures bay stations, radios and the antennas that make up the infrastructure for a WiMax network. Gupta said companies such as EarthLink Inc. (ELNK) and Covad Communications Group Inc. (DVW) could use the technology to create a national footprint."
Mobile TV Takes Center Stage At Wireless Trade Show
By Roger Cheng, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- While video on the cell phone was merely a gimmick last year, it's become a full-blown feature and will be one of the main focuses at this year's CTIA Wireless trade show.
The event, which kicks off Wednesday in Las Vegas, will highlight video content that will be available to consumers, from live television to downloadable film clips. With traditional voice revenue falling as competition steepens, video and other data services such as music are becoming more important streams of cash for the carriers.
They've already got their foot wet in the business. Verizon Wireless, for instance, has exclusive deals with singers such as Shakira, while Cingular Wireless has a deal to distribute HBO programming on its phones. Still, customers have yet to fully embrace the technology - a recent study by the NPD Group showed that while 28% of phones had video capabilities, only 1% of the subscribers actually used them.
Industry experts say the success of the Apple Computer Inc. (AAPL) video iPod will make people more amenable to the feature. Either way, wireless companies will get a chance to show the more than 40,000 attendees why they need mobile television this week. Last year, 35,000 attended the show in New Orleans.
Like last year, a high-profile mobile reseller will make its debut at the show. Last year, ESPN unveiled its ESPN Mobile service, which is powered by Sprint Nextel Corp.'s (S) network. This year, parent Walt Disney Co. (DIS) is looking to bring out a family-friendly service and will make its announcement Wednesday.
The emergence of companies reselling wireless service, also known as mobile virtual network operators, presents an interesting dynamic for the industry. On one hand, it provides additional revenue to the company providing the network backbone. It also goes after niche customers that the larger carriers haven't been able to reach.
But it also crowds the field with many different players, where some are bound to bump heads. In addition to Disney and ESPN, Virgin Mobile has been particularly successful with its service, while Amped Mobile and Boost Mobile all target essentially the same age bracket. Amped said it is targeting a higher-end customer. Sprint, which jointly owns Virgin Mobile with Virgin Group (VGN.YY) and also owns Amped, said the two target different markets within the same demographic.
In addition to the service, the handset manufacturers are expected to unveil their latest and greatest phones. Watch players such as Nokia Corp. (NOK), Motorola Inc. (MOT) and Samsung Corp. (000830.SE) pull out all the stops as they pile more features onto the phone.
Also returning will be the wireless home display. It features a "crash-proof" car that wirelessly communicates with the road, plasma-screen televisions that don't require cable boxes, medicine cabinets that can monitor a person's vital signs, and a refrigerator that will tell you when the milk is running low.
Converging Networks
On the infrastructure side, companies such as Lucent Technologies Inc. (LU) will be pushing Internet protocol multimedia subsystems, or IMS, technology. The technology will allow the eventual migration of separate wireless and wireline networks under one Internet-based one. The convergence of different networks offers a more efficient cost structure for the carriers.
IMS will also be able to speed the adoption of cell phones that can run on both the cellular and wireless fidelity networks. They are just starting to hit the market, and will also be a major feature at CTIA. STMicroelectronics N.V. ( STM) will unveil a chip that enables phones to run on two different bands of Wi- Fi frequencies. Matthew Hatch, general manager of the wireless local area network business unit, said that as more people use wi-fi, capacity will be an issue. A phone that can use multiple bands will have a better chance of a clear connection.
The phone is designed for business customers, but it could eventually be a product that consumers want. "It could be a real killer application for mobile phones," Hatch said. The business could be a real growth engine for the company, he added.
Also garnering attention will be WiMax, which is often characterized as "wi-fi on steroids." The technology received certification in January, and deployments around the world have begun. Manish Gupta, an executive with privately held Aperto Networks, said the U.S. carriers are "sitting on the fence here."
Aperto manufactures bay stations, radios and the antennas that make up the infrastructure for a WiMax network. Gupta said companies such as EarthLink Inc. (ELNK) and Covad Communications Group Inc. (DVW) could use the technology to create a national footprint.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
Corrected April 5, 200612:24 ET (16:24 GMT)
At this year's CTIA Wireless trade show, STMicroelectronics N.V. (STM) will unveil a chip that enables phones to run on two different bands of Wi-Fi frequencies.
(In a story published around 12:17 p.m. EDTTuesday, April 4, the nature of STMicroelectronics' new product was incorrectly described.) |
