ROW Update

Camera phone shipments continue at phenomenal ratesNew research from In-Stat/MDR indicates that the worldwide camera phone market skyrocketed in 2004, with annual shipments up more than 200%. The rapid increase in shipments is being fueled by manufacturers offering camera phones in most of their newest models, combined with improved cameras. “The devices have gone mainstream in less than four years. Now, one needs to look hard to find a handset that doesn’t feature an embedded camera,” reads an In-Stat/MDR market alert. However, the presumed downstream financial impact has yet to be realized, according to the research firm. Despite the popularity of camera phones, the economic boost from photo sharing, storage, and related applications has yet to take hold for many carriers. In-Stat/MDR counsels carriers to reduce the prices of these applications as a way to encourage more consumers to use them. Figures on camera phone usage in Canada are sketchy at best as the wireless operators don’t release the data, but it has been widely predicted that camera phones would outsell traditional digital cameras last year. Good year for wireless data: Yankee GroupAccording to the Yankee Group’s 2004 Mobile User Survey, awareness of wireless data services by U.S. consumers increased dramatically last year translating into a greater number of wireless data users. The Yankee Group research shows that by the end of Q2 2004, wireless data users totaled approximately 47 million, up almost 60% compared to figures from mid-2003. The U.S. market research firm indicates that revenue from wireless data services grew to about US$1 billion by the end of the second quarter in 2004, up from approximately US$367 million recorded the previous year. The Yankee group projects 2004 year-end wireless data revenue will top the US$4-billion mark, with consumer wireless data contributing 12% of total ARPU or the equivalent of US$14 billion. Wireless data constitutes about 4% of total wireless services revenue for the U.S. market, a level that is consistent with those reported by Canadian wireless operators. Motorola reorganizes business; to unveil new products with OakleyMotorola has realigned itself into four business groups: personal devices, networks, government and enterprise, and connected home. The company announced no job cuts. The reorganization took effect on January 1, 2005. Motorola says the realignment will allow the company to capitalize on its ability to cross-sell products and services. Report on Wireless will report on any significant changes to Motorola Canada’s business structure in an upcoming issue. In other Motorola news, the company has joined forces with Oakley to develop innovative communications devices, using embedded Bluetooth technology. The two companies, which have formed a joint venture to exploit the business opportunities, will unveil product details and designs by mid-2005. Vonage to introduce portable Wi-Fi handsetVonage Holdings Corp. and UTStarcom Inc. have teamed up to develop and introduce a portable Wi-Fi Voice over IP handset that will be available to subscribers in spring/summer 2005. Jeffrey Citron, chair and CEO of Vonage said in a news release, “…UTStarcom’s Wi-Fi portable handset bundled with Vonage’s VoIP service will lead the way in modernizing telecommunications as we know it, as now customers will have the option of mobile VoIP services.” The company continues to score well on the subscriber addition side having added approximately 300,000 subscribers in 2004 to reach nearly 400,000 subscribers. The fourth quarter was particularly strong for the company adding 115,000 subscribers. No mention was made of when or if the portable Wi-Fi VoIP product will be made available to Vonage’s consumer and small business customers in Canada. NovAtel debuts new GPS receiver with greater accuracy; receives order from FAACalgary-based NovAtel Inc. has introduced the ProPak-LB, a new GPS receiver that provides greater accuracy through the use of wide area correction broadcasts of Canada-wide differential GPS over L-band spectrum. The company notes in a news release that the new receiver delivers superior correction signal penetration and high-resolution differential GPS corrections, which are critical to many positioning applications. These features make the ProPak-LB an ideal positioning system for applications in a wide range of markets including agriculture, geographic information systems, marine and unmanned systems. In other NovAtel news, the company has received an order from the Raytheon Company for its wide area augmentation system (WAAS) in support of the U.S. WAAS Final Operational Capability (FOC) program. NovAtel has been working with the U.S. Federal Aviation Authority and Raytheon for the past two years to engineer and produce a new generation of key WAAS ground network receivers. The FAA’s WAAS uses a system of dispersed ground stations to provide continuity, availability and improved accuracy of standard GPS navigation signals. The network is used to provide more accurate signals to aircraft. 01 Communique secures financing01 Communique Laboratory Inc. raised $633,000 in first-round tax-assisted financing by December 31, 2004, and if the offering is fully subscribed, the company would secure a total of $1.1 million in working capital. The offer will remain open until January 31, 2005. As part of the financial transaction, 01 Communique transferred the assets of I’m InTouch corporate server edition to a limited partnership. The general partner in that limited partnership is a wholly owned subsidiary of 01 Communique, and the principal limited partner is Madison Grant Limited Partnership VIII. Madison Grant Fund Inc. structured the financing transaction for 01 Communique. The additional capital raised from the financing will be used for sales and marketing of the company’s remote access service, I’m InTouch. Phantom Fiber expands reach of wireless payment serviceToronto-based Phantom Fiber Corp. has inked an agreement with Navaho Networks Inc. that will see the company’s mobile wireless payment solution, or m-commerce services, achieve greater penetration in the enterprise market sector. Navaho provider credit card free payment services. “By integrating these solutions to the Phantom Framework, enterprise clients can immediately offer m-commerce functionality through their wireless applications and eliminate the need for customers to have multiple m-commerce transaction accounts across several providers. With instantaneous m-commerce functionality and no account sign-up requirement, customers can quickly fund their accounts without ever having to worry about lengthy sign-ups, authorizations or account funding cycles,” reads a January 6 news release. fSONA deploys optical wireless link in HawaiifSONA Systems has deployed a key broadband link for the Pacific Telecommunications Council’s Broadband Playground at PTC’05 being held from January 17 to January 19. The Broadband Playground will demonstrate advanced network technology that enables live, leading-edge broadband applications for global collaboration, education and entertainment. The showcase of applications has been coordinated with the help of Industry Canada’s Communications Research Centre, and other conference participants. Enabling the applications on display required high-capacity, reliable and dedicated bandwidth to the exhibit hall, but none was available. Laying fibre would have been too expensive, giving fSONA an opportunity to showcase its product. “Optical wireless is like ‘virtual’ dark fiber that matches the throughput performance and latency characteristics of fiber optics. The Broadband Playground is an ideal application to highlight the benefits of this advanced technology,” said Jim Conroy, director of marketing for Pacific Wireless Communications, in a news release emailed to Report on Wireless. The news release has yet to be published on fSONA Systems web site.

ROW Update

News | January 17, 2005

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