Mobile entertainment to be significant in three years, WiMAX presents alternative

Recent research from In-Stat suggests that mobile operators stand to reap the benefits of increased mobile entertainment usage, but their stranglehold on revenue could be loosened by the emergence of alternative carriers using WiMAX and dual-mode handsets. Wireless carriers have benefited greatly from their "walled garden" approach to the customer, which essentially enables the operator to control the customer's mobile entertainment usage. But In-Stat says this could change in the future. "Unlimited data packages, broadcast overlay networks, or alternative wireless broadband approaches may ‘bypass' the control that cell phone operators have traditionally maintained over their customers," reads the white paper Global Mobile Entertainment Evolves in the Real World. "The ‘walled garden' service packages that have been the mainstay of popular cell phone services may be ‘dis-intermediated' by competing alternatives."One of the major threats to traditional wireless operators could be the emergence of new carriers using mobile WiMAX technology to deliver competing services. "Mobile WiMAX services could provide a high-speed data overlay that operates in parallel with 3G cellular services," reads the white paper. "The ability of mobile WiMAX to also provide Voice-over-IP, or Voice-over-Wireless LAN (VoWLAN) capabilities could eventually make WiMAX services a direct competitor of today's 3G cellular services."WiMAX services are beginning to take hold in many parts of the world, but to date are largely fixed point-to-point systems providing broadband Internet access. Mobile WiMAX is in testing here in Canada where Primus Telecommunications Canada Inc. and its subsidiary Mipps Inc. launched trial in Hamilton last May in conjunction with Alcatel-Lucent. The two companies announced this week that they are working with Motorola Inc. on a similar trial in the lucrative Toronto market. Ted Chislett, president of Primus Canada told Report on Wireless in June that while voice over WiMAX will be tested, high-speed data connectivity is the primary driver behind the trial. Despite this potentially troubling scenario, the research firm notes that there is tremendous upside for mobile entertainment. Its research suggests that not only will the younger demographics - those under 35 years old - continue to consume mobile entertainment, wireless users between 35 and 45 years old are expected to embrace mobile entertainment over the next three years. "This should be a huge, fresh opportunity for cell phone service providers, because the over 35 age group has not been expected to become a target audience for mobile entertainment services," In-Stat states.

Mobile entertainment to be significant in three years, WiMAX presents alternative

News | October 1, 2007

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