Convergence is occurring at multiple levels ? at the network level, at the services level, at the operator level and at the vendor level, but it is happening fastest at the devices level.
As new multimedia functions and multiple RF technologies are being built into handheld wireless devices, we are seeing the three worlds of communications, computing and consumer electronics come together in a single device.
These new multifunction devices open up new opportunities for mobile operators to extend their service offerings, drive up ARPU and reduce churn. Yet the parallel trend of integrating non-cellular technologies, such as WiFi and Bluetooth, to create multi-mode devices, may benefit fixed operators rather than mobile operators.
These trends are also bringing the device and its suppliers ? both handset vendors and operators ? into competition with traditional and new media devices and services such as digital cameras, music players, PCs and even the ubiquitous TV set.
However, these trends could also encourage collaboration previously unheard of between entertainment/media companies and telecoms service providers, and between consumer electronics and telecoms device vendors.
Two new battles are analyzed in this study ? "battle of the B.O.M. (Bill of Materials) and "battle of the brand."
We analyze convergence at the DEVICE LEVEL and assess the implications it has for potential conflicts and opportunities in the telecoms world. We also analyze its consequences for potential conflicts and opportunities as the three worlds of TELECOMS, COMPUTING AND CONSUMER ELECTRONICS come together.
Structure of the Study:
Chapter 1 provides an introduction to key concepts.Chapter 2 defines device convergence in the wider context of the convergence of IT, consumer electronics and telecoms, and then focuses specifically on the convergence of wireless devices. It describes four key trends of wireless device convergence, and identifies and characterizes the major technical and market issues that will influence the development of these trends.Chapter 3 explores the key technical issues, identified in Chapter 2, and looks at the driving forces behind them and the potential solutions that may be used to overcome them. Their impact on manufacturing cost, time to market and usability, and the consequences for vendor and operator strategies and end-user acceptance, are analyzed.Chapter 4 analyzes the market issues for each of the four key trends of wireless device convergence, from the perspective of end-users, operators, device vendors, and their suppliers.Chapter 5 briefly describes the three scenarios we put forth in our study, "Wired and Wireless Networks: Two Worlds Coming Together," which illustrate different potential paths for market development as wired and wireless networks converge. It examines how the market issues highlighted in Chapter 4 may influence the four trends of device convergence in the context of these scenarios.Chapter 6 provides forecasts for global shipments of end-user devices for 2004 ? 2008, for each of the three market scenarios, based on the analysis in Chapter 5. The forecasts are provided for major "converged" device and traditional form factors.Chapter 7 provides a conclusion to the study, identifying two new conflicts that will be brought about as the worlds of telecoms, computing and consumer electronics come together in the converged wireless device. It briefly summarizes the strategic options for the players in the devices value chain ? chip vendor, reference design/platform vendor, other components suppliers, device vendors (ODMs and OEMs), distributors and operators ? and provides suggestions for appropriate actions necessary in order to profit from the four trends of device convergence.
Convergence is occurring at multiple levels ? at the network level, at the services level, at the operator level and at the vendor level, but it is happening fastest at the devices level.