Streaming video to handsets could become reality within two years, experts predict

Streaming video and other multimedia content will eventually make their way onto wireless devices, but first the industry needs hot applications and more bandwidth, industry experts told an Ottawa conference this month. Speakers at NetVideoWorld 2001 said they were also optimistic those challenges would be resolved, and that it wouldn’t take long before subscribers expect and demand video over mobile networks. Luc Lussier, president and CEO at Lumic Electronics, whose company designs multimedia processors for the wireless device market, says the phenomenal growth in handset sales is reason enough to begin adding video, audio, and imaging functionality to mobile devices. By 2004, there are expected to be about one billion cell phones on the market, and of that number, about 30 per cent will be able to handle multimedia content. Data services to take over lion’s share of carrier revenue pie The looming commoditization of voice is also giving carriers a strong incentive to find new ways of increasing revenue per subscriber (ARPU). Voice mail, call forwarding and other voice services are already part of an airtime package and no longer charged separately. Consequently, data services, such as email and alert notification, represent the largest revenue opportunity for the carrier industry. Nick Karter, VP business development, channels at PacketVideo, says multimedia and streaming video may be one of the key value propositions of wireless. Entertainment applications like video on demand, commercial uses such as security and surveillance, and traffic and telematics applications and even video networking within the enterprise could all be offered by carriers. Handset design and speed key to video streaming But before any of these "cool" applications can become a reality, the handset manufacturers have to give the devices more processing power, without sacrificing battery life. That’s what Lumic is trying to accomplish with its multimedia processor microchip (ROW, Oct. 30/00). The chip would take over the processing of the multimedia content from the handsets’ primary processor, allowing for near real-time video applications. Currently, mobile wireless networks aren’t capable of delivering streaming video to handsets and most agree that it won’t be widely available for at least another couple of years. The advent of third generation and its faster data rates will enable the added functionality of streaming video. When the CDMA-based carriers light up their 1XRTT networks later this year and into early next year, for example, higher data rates of 144 kbs will be capable of carrying video streams – both Bell Mobility and Telus Mobility are in that timeframe. Microcell Tele-communications turned on its GPRS network earlier this year which offers higher data rate capabilities of approximately 40 kbs. Rogers Wireless Inc is expected to follow suit with its own GPRS network later this year or early next year. It’s still unclear what the carriers would charge for such a service, but most agree that initially the service would be targeted at high-end consumer and commercial users. However, enablers of video over wireless believe users will be willing to pay between US$10 and US$20 per month for such services.

Streaming video to handsets could become reality within two years, experts predict

News | May 14, 2001

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