paul jacobs - mobileSQUARED
Transcription
paul jacobs - mobileSQUARED
THE SMART CONCEPT OF THE MOBILE PHONE INDUSTRY IS NOW BEING EXTENDED INTO THE COMPUTER WORLD AUGMENTED REALITY: VIRTUAL AND THE REAL WORLD OMH TO DRIVE INDIA CDMA WIRELESS SPACE FEMTOCELLS: TAKING MOBILE DATA INSIDE THE APPLICATION ECOSYSTEM GOLD RUSH: APP STORES HAVE SPARKED HEIGHTENED LEVELS OF INNOVATION AND ATTRACTED SIGNIFICANT FUNDING INTO THE SECTOR PAUL JACOBS: OVERSEEING QUALCOMM’S POSITION AS AN INNOVATIVE LEADER IS ITS CHAIRMAN AND CEO, PAUL JACOBS. HE TELLS QMAG HOW THE CONSUMER PROPOSITION CONTINUES TO BE THE DRIVING FORCE BEHIND QUALCOMM A QMag Issue No. 4 | November 2009 COMPUTING DEVICES GET SMARTER: NOVEMBER 2009 IN THIS ISSUE 2 News Round-Up 4 Interview: Paul Jacobs OVERSEEING QUALCOMM’S POSITION AS AN INNOVATIVE LEADER IS ITS CHAIRMAN AND CEO, PAUL JACOBS. HE TELLS QMAG HOW THE CONSUMER PROPOSITION CONTINUES TO BE THE DRIVING FORCE BEHIND QUALCOMM. 7 Standardization ONGOING STANDARDIZATION WORK HAS ENSURED HIGH SPEED PACKET ACCESS (HSPA) HAS DELIVERED MOBILE BROADBAND TO 115 COUNTRIES. 9 Connected Devices THE RANGE OF CONNECTED DEVICES HAS ALREADY EXTENDED WELL BEYOND COMMUNICATION AND DELIVERING A COMPELLING CONSUMER SERVICE. 11 Femtocells: taking mobile data inside OPERATORS ARE AT THE FOREFRONT OF FEMTOCELL DEVELOPMENT TO ENSURE MOBILE DATA USERS HAVE THE BEST INDOOR CELL COVERAGE. 13 Smartbooks THE “SMART” CONCEPT HAS ALREADY SWEPT ACROSS THE MOBILE INDUSTRY AND IS NOW BEING EXTENDED INTO THE COMPUTER WORLD. 15 The application ecosystem gold rush A WAVE OF APP STORES HAS SPARKED HEIGHTENED LEVELS OF INNOVATION AND ATTRACTED SIGNIFICANT FUNDING INTO THE SECTOR. IT HAS NEVER BEEN A BETTER TIME TO BE A DEVELOPER. 17 Augmented Reality BREAKTHROUGHS IN THIS TECHNOLOGY ARE POISED TO SHAPE THE MOBILE USER EXPERIENCE OF THE FUTURE. 19 OMH India INDIA HAS A POPULATION EXCEEDING 1.2 BILLION AND IS EXPERIENCING THE FASTEST EXPANSION OF ANY MOBILE MARKET IN THE WORLD. 21 Empowering the consumers DEVICE MANUFACTURERS ARE LOOKING TOWARD ENABLING DIGITAL CONTENT SHARING AMONG A WIDE VARIETY OF COMMON HOME DIGITAL DEVICES IN A PROCESS KNOWN AS MEDIA SHIFTING. In October, the GSMA mobile connections ticker eclipsed 4 billion; the GSA benchmarked 7.2Mbps or higher as the current data rate for mobile broadband; and 40 operators are now committed to rolling out LTE. I think it is safe to say that mobile is still accelerating. While the mobile market has been impacted by the global recession and voice revenues continue to trend downwards, there are indicators pointing to strong opportunities for revenue growth in both voice and data services. On the voice side, there are still large numbers of people in emerging markets who do not have access to voice services of any kind. For these previously “unconnected” people, the mobile phone is emerging as the device of choice. And in developing markets, there is a growing trend of consumers abandoning traditional wireline services in favor of their mobile devices. On the data side, revenues are trending upwards at significant rates as operators deploy economical and robust 3G networks with the speed and capacity to deliver a growing array of advanced applications and services. The growing popularity of OEM-driven app stores combined with strong market demand for smartphones that deliver rich user experiences is contributing to an explosion in mobile data traffic, which spells good news for mobile operators seeking strategies for growing their bottom lines. As an industry, we are clearly focused on migrating users to 3G and a mobile data tariff. Operators are heavily promoting HSPA-capable devices and in many cases are committing to HSPA+ and LTE network deployments. Femtocells, as an opportunity to off-load capacity from the macro network, are also gaining acceptance in many quarters. In light of all this, costs and economies of scale will dominate in the future. Maintaining an acceptable margin on mobile services will be key to ensuring continued investments that will be required to support a greater richness of mobile services as we move into the mobile 2.0 arena. Standards will play an increasing role, especially in the software and content delivery space. Developers and publishers will look to companies that can help them extend their reach to billions of users and help them sell more. The convergence of computing and communications is already happening with dongles, embedded connectivity and smarter communications devices. This can only accelerate exponentially as new device categories, such as smartbooks and wireless health products, come to market. Services are also expanding to take advantage of new smart devices that are location aware, come with larger screens, News Round-Up Books going mobile Personalization to increase data users Almost two-thirds of mobile data users in the US and UK would spend more time browsing or purchasing content on their mobile device if it was easier to find and personalize, according to research commissioned by Xiam Technologies, a Qualcomm company. The research involved a sample of 2,666 mobile data users aged 16 years and older in both the US and UK. The results suggest that 43 percent of UK mobile users and 40 percent of US mobile users have downloaded content on their mobile phones. One of the key findings of the research is that people are using search as the primary method of accessing mobile content, though with varying levels of success. A number of users from both markets said they could only find the relevant content 50 percent of the time. More than a quarter those sampled said they could only find the relevant content 75 percent of the time. “One of our key messages is that the industry has to evolve beyond search and move toward discovery to make the user’s experience easier,” said Martin Clancy, marketing manager at Xiam. “We can address this by making content more relevant to users, and by making content recommendations based on their preferences.” While search remains a core content discovery mechanism, it suggests consumers are browsing away from the mobile operator’s portal. Clancy believes that allowing consumers to discover content, as opposed to searching for it, will provide a significant opportunity for operators. “Presently, the operator portal is not the way consumers discover content because they immediately think to use a search engine,” said Clancy. “This means operators need to roll out an exceptional customer experience to create loyalty and stickiness within their customer base and provide a competitive solution in the market.” Literature is on the verge of a digital facelift as the success of the eReader is sparking a wave of interest in digital books on mobile devices. The global book market is worth US$101 billion and mobile books (mbooks) represent an opportunity for the mobile industry to capture some of these revenues by serving customers over connected devices such as netbooks and smartbooks. “Digital books are better because you can include a hyperlink within the copy to enhance the reader’s experience,” Tony Lynch, CEO of Mobcast, told QMag. “There are clear signs that the digital book is coming to mobile in a big way.” Qualcomm will be at the following events between November 2009 and March 2010 GHz processing capability, high-definition cameras, and accelerometers. Augmented Reality, the ability to layer information over real live images, is one such application that is already firing the imagination of the mobile ecosystem. So yes, mobile is still accelerating and we consider this in detail in this issue of QMag. We are just out of second gear and driving through third as the revs start to build. To quote an old Bachman Turner Overdrive song, “You ain’t seen nothing yet.” Maybe that shows my age! Nothing in these materials is an offer to sell any of the components or devices referenced herein. Certain components for use in the U.S. are available only through licensed suppliers. Some components are not available for use in the U.S. * In the territory of the Federal Republic of Germany, the use of the term “Smartbook” in connection with portable computers is reserved exclusively to Smartbook AG, Germany. Dates Event Location Venue Organizer 5th November mobileSQUARED Roadshow – Taking Internet Mobile London 76 Portland Plane mobileSQUARED 6th November SIME Breakfast Event Stockholm Rigoletto SIME 9th – 10th November Future TV Paris Espace Pierre Cardin, Champs-Elsees gardens Future TV 9th – 12th November Mobile Network Optimization Prague Marriott Hotel IIR 16th – 19th November IQ Innovation Qualcomm Showcase London Altitude 360 Qualcomm 23rd – 25th November Mobile Services 2.0 Berlin Kempinski Bristol Hotel IIR 1st December Mobile Mondays Munich HVB Forum Mobile Monday 1st December Business International Event AGCOM Roundtable Rome via delle Muratte, 25, Rome AGCOM 8th December Netbook World Summit Paris Salons Latecoere Netbook World Summit Jan/Feb 2010 Analyst roundtable MediaFLO Munich TBC Qualcomm/MediaFLO 21st January 25th Year of Cellular in the UK London Science Museum Cambridge Wireless 16th – 19th February Mobile World Congress Barcelona Fira de Barcelona GSM Association 2nd – 5th March Telecoms World Russia Moscow Baltschug Kempinski Hotel Terrapinn Qualcomm QMag Overview Joe Barrett, Editor November 2009 Accelerating Mobility page 1 Accelerating Mobility Social impact of innovation MOBILE TOMORROW November 2009 page 3 Qualcomm QMag Social impact of innovation Social impact of innovation OVERSEEING QUALCOMM’S POSITION AS AN INNOVATIVE LEADER IS ITS CHAIRMAN AND CEO, PAUL JACOBS. HE TELLS QMAG HOW THE CONSUMER PROPOSITION CONTINUES TO BE THE DRIVING FORCE BEHIND QUALCOMM. The social impact of wireless innovation looks set to enjoy far reaching implications for mobile users around the world on a personal, financial, global and environmental scale. Such are the levels of innovation emanating from the mobile industry that the world and how mobile users view their mobile devices will be fundamentally changed forever. Qualcomm has been driving innovation in the mobile space for 25 years and has played a central role in the evolution to next-generation networks delivering highspeed broadband access wirelessly around the world. Guaranteeing Qualcomm’s position as an innovative leader falls to its chairman and CEO, Paul Jacobs. He tells QMag how the consumer proposition continues to be the driving force behind Qualcomm. “No matter what the innovation is, or how compelling it can be from a technological or environmental standpoint, if it does not appeal to consumers – or consumers simply don’t get the product or service – then it won’t fly,” Jacobs told QMag. “For innovation to have a social impact, consumers must get the concept.” One of the ways in which Jacobs gauges the progress made within the mobile industry is around the dining table. It is not chipsets or intellectual property that captivates the Jacobs’ dining companions, but the products and services that are applicable to their daily lives. “Smartbooks are one of the main topics of my work that my friends want to discuss with me around the dinner table,” Jacobs said. “It is one of the big areas of innovation in the mobile industry that is clearly understood by people right now. They get the concept of a smartphone developed into a mobile computing device with a full-size keyboard and bigger screen. It’s an exciting development for consumers.” With global smartphone penetration expected to surpass 30 percent within five years, and netbooks outselling PCs in 2008, the demand for mobility has never been more apparent. As Jacobs highlights, “Users find it very frustrating when they turn on their laptop, then have to connect to the network, and on top of that they then have to access their exchange server to access emails. The whole process can lead to an unproductive 10-15 minutes. “People understand the concept of a smartbook that is automatically connecting to the Internet to synchronize email, “Smartbooks are one of the main topics of my work that my friends want to discuss with me around the dinner table” contacts and calendar all the time,” Jacobs said. “This is a permanently connected device, so when the screen is off the smartbook in effect becomes a smartphone. Plus the associated low power consumption means the battery will last a really long time. Smartbooks will change people’s perception towards mobile computing.” Jacobs is confident these new devices will accommodate the emergence of cloud computing models, allowing users to access applications directly via the Internet. Google is one of the leading protagonists pushing cloudbased applications, and the Googleinspired Android mobile operating systems will be one OS running on smartbooks; it is sparking considerable interest from the application developer community. “By running multiple OSes on smartbooks, we are opening these devices to the ecosystem of application developers,” said Jacobs. “We already have a lot of experience with the developer community through the BREW and Plaza Mobile Platforms. We have high-speed networks and applications coming off of the Web that are creating further opportunities to expand the marketplace and create new consumer experiences.” While multiple operating systems will cultivate a plethora of related revenues models surrounding the smartbook application marketplace, the OS will hold a more defined role on mobile devices. As today’s smartphones become tomorrow’s mainstream featurephones – for example the iPhone 3G is now available sub US$100 – it will be the operating system that will differentiate devices. “There will be a strong pendulum swing toward what we define as a high-end OS today, rapidly becoming mainstream tomorrow as boundaries continue to blur,” Jacobs said. “Soon, almost everybody will have some kind of data capability on their phones, even if it is a low-end device. We have sub-US$50 phones with an Opera Mini browser, which delivers a great Internet experience. That makes it a smartphone.” At price points below US$50, the mobile device becomes a truly global channel and that is a philosophy that will also extend into smartbooks. Jacobs acknowledges that the mobile phone will provide some people with their first Internet experience in developing markets, but by limiting the size of the screen and keyboard, the possibility of a low priced smartbook dramatically increases. Costs can also be reduced through cloud computing models that remove additional associated OS costs. Developing markets will also be an ideal marketplace for eZone, one of the latest areas of innovation coming out of Qualcomm. eZone is a wireless recharger, enabling consumers to place electrical devices ranging from mobile phones to MP3 players on a tray or shelf where they will automatically recharge. EZone could be expanded into a communal version for the developing world, while in the developed markets it is likely to be eZone’s aesthetic and environmental impact that will generate consumer appeal. “People like the idea of not having to plug in their electric devices all the time, and they get that concept,” said Jacobs. “We are getting rid of all but one wire. There is no need to think about which charger to use or take with you. You can just toss it on the charger and pick it up when charged. And while charging, devices can all be synched up.” Jacobs said that developed markets will be the initial target for eZone, but adds that successful global products become cross-border concepts very quickly. “Before 3G networks were launched in China, we were selling a lot of 3G devices,” he said. “The same thing happened with the iPhone. Technology that people want gets around; eZone will be no different.” Innovation in mobile is supporting the demand for multiple devices, ranging from smartphones to connected digital camera. Although the mobile phone has become a centralized device for a number of consumer services such as music, video and still photography using incorporated cameras, consumers continue to use specialized devices. The ability for a consumer to upload their latest photos from their digital camera is driving the need for connectivity beyond mobile. “You will always have your phone with you, but now you will also have more specialized devices to serve a particular purpose, like an eBook to download the latest novels” said Jacobs. “It is now coming down to these devices all being individually mobile capable and enhancing the consumer experience.” Perhaps no other service will enhance the consumer experience more than augmented reality. Like eZone, augmented reality has been an exciting project in the Qualcomm Innovation Lab and uses the very latest in computer vision algorithms on high-end touchscreen devices to superimpose relevant information to images and landscapes as they appear on the mobile screen – utilising the device’s camera and compass. “Augmented reality is very cool but the important thing now is trying to judge peoples’ comfort with this concept,” said Jacobs. “Everyone gets excited about the idea of pointing the phone at something and that experience is visually enhanced. It seems natural to carry a phone around with you at all times and it will become an intermediary between the real world and the digital world.” However, the question remains as to whether consumers will buy into the concept of manipulating the real world with virtual objects, content or information. Around the Jacobs’ dining table, the consumer reaction is very much in favour. “It’s a touchscreen device with an image of the world on it and so we’re becoming a touch world,” Jacobs said. “People get excited about that.” So too does Qualcomm. Augmented reality will utilize the high-speed networks of HSPA+ and LTE. It will also require considerable processing power to register object recognition and graphics capability to deposit that information, as well as sensors to work out how the consumer is holding the device. Not to mention good camera and screen technology. “Everything in the phone gets used or stressed by augmented reality and that gives Qualcomm opportunities to do new things,” said Jacobs. “Critical to our success now is driving innovation and differentiation of our products.” It is this innovation that is having a dramatic social impact. Qualcomm QMag Social impact of innovation November 2009 page 5 Social impact of innovation MOBILE TOMORROW “NO MATTER WHAT THE INNOVATION IS, OR HOW COMPELLING IT CAN BE FROM A TECHNOLOGICAL OR ENVIRONMENTAL STANDPOINT – IF IT DOES NOT APPEAL TO CONSUMERS, AND CONSUMERS SIMPLY DON’T GET THE PRODUCT OR SERVICE – THEN IT WON’T FLY,” PAUL JACOBS, CHAIRMAN AND CEO OF QUALCOMM TECHNICALLY SPEAKING ONGOING STANDARDIZATION WORK HAS ENSURED HIGH SPEED PACKET ACCESS (HSPA) HAS DELIVERED MOBILE BROADBAND TO 115 COUNTRIES AND CAN NOW PROVIDE OPERATORS WITH THE OPTION TO MIGRATE TO THE NEXT GENERATION OF MOBILE NETWORKS. L ong Term Evolution (LTE) is the latest extension to 3G networking and was ratified to provide a seamless migratory path to 4G. LTE is optimized to deliver data speeds of 100Mbps in the downlink by incorporating Multiple In Multiple Out (MIMO) and speeds of 50Mbps in the sefficiency and significant improvements in capacity and reductions in latency. What’s more, LTE will support channel bandwidths from 1.25MHz to 20MHz and both FDD and TDD operation. “LTE is the next step in the user experience and is essential to take mobile broadband to the mass market,” said Alan Hadden, president, Global mobile Suppliers Association (GSA). “With 39 network commitments worldwide, including the leading players, it is clear that LTE is the natural migration choice for GSM/HSPA and CDMA network operators.” The GSA anticipates 14 LTE commercial networks by the end of 2010, and over 30 in service by the end of 2012. “With TD-LTE positioned as the evolutionary path for TD-SCDMA, it means with LTE we now have one single global standard,” Hadden added. LTE standardization has been finalized and approved by the Third Generation Partnership Project (3GPP) within Release 8. The introduction of a new core network, air interface and dual multicarrier on the downlink guarantees Release 8 will deliver enhanced data rates without a large CAPEX investment. Release 8 builds on Release 5 and 6 which introduced HSPA and the addition of MIMO capability in Release 7, while non-mission critical features have been delayed until Release 9. “Release 9 isn’t about putting Release 8 right,” Adrian Scrase, head of the mobile confidence centre at the 3GPP, told QMag. “Release 9 adds new functionality with 50 or so features included to make LTE a richer experience.” Release 9 will also include an update to HSPA+, increasing the network’s theoretical throughput to 84Mbps in the LTE base station spending will be US$3.3 billion by 2011, according to ABI Research. THE LATEST SURVEY BY THE GLOBAL MOBILE SUPPLIERS ASSOCIATION (GSA) CONFIRMS THAT 25 HSPA EVOLUTION (HSPA+) NETWORKS ARE IN COMMERCIAL SERVICE IN 19 COUNTRIES. TWENTY-FOUR OF THESE NETWORKS ARE CAPABLE OF PEAK DOWNLINK DATA RATES OF 21 MBPS, USING 64QAM MODULATION. TO DATE, 53 OPERATORS IN 33 COUNTRIES HAVE COMMITTED TO DEPLOYING HSPA+ SYSTEMS. downlink and 23Mbps in the uplink in 10MHz using dual carrier paths. “We don’t see HSPA+ jeopardizing LTE rollout,” said Rasmus Hellberg, technical marketing at Qualcomm. “Nor do we expect LTE to become a replacement to 3G. It doesn’t make sense to replace 3G with LTE in the lower bandwidth, as LTE will come into its own beyond 20MHz whereas HSPA+ operates in 10MHz.” Operators will run multiple networks in parallel for years to come, as they look to leverage and amortize their network assets in response to the existing economic climate. “So the standardization philosophy is to run for as long as possible and allow operators to upgrade when they want,” Scrase said. “Any deployment of LTE will be in addition to what operators already have,” said Ed Tiedemann, head of standards at Qualcomm. “LTE focuses on the highspeed data solution and that is when the worlds of 3GPP and 3GPP2 converge in terms of WCDMA and CDMA2000.” LTE is the final evolution of existing 3G networks before making the jump to 4G, OPERATOR COMMITMENTS TO LTE Country also known as LTE-Advanced, included within 3GPP Release 10. “TeliaSonera is expected to be one of the first operators to launch LTE and will market the service as 4G because of the marked increase in user experience,” said Scrase. “From a 3GPP point of view, it makes no difference to us how operators refer to the service. The name to us is more of a taxonomy.” The standardisation process now underway within the 3GPP and 3GPP2 to develop LTE-Advanced and build on the technological developments of LTE will introduce 4x4 MIMO and the use of multiple carriers to increase theoretical data speeds to 1Gbps. Scrase confirmed that LTE-Advanced will be 3GPP’s technology candidate for the ITU-R IMTAdvanced process, and start the inevitable search for 4G spectrum. DID YOU KNOW? The number of LTE-enabled base stations will exceed 166,000 by 2013, according to industry analyst firm Research and Markets. LTE base station revenue in Eastern Europe will be close to US$700 million by 2013. Operator Anticipated LTE service launch France Orange 2011-12 Germany T-Mobile 2011 Ireland Hutchison 3 2011 Italy Telecom Italia Not known Spain Telefonica O2 2011 Sweden TeliaSonera 2010 Sweden Tele2 Sweden 2010 Sweden Telenor Sweden 2010 Various Vodafone Not known Australia Telstra Not known Canada Telus 2010 Canada Bell Canada 2010 Canada Rogers Wireless 2010-11 China China Mobile 2011 China China Telecom 2011-12 Hong Kong SmarTone-Vodafone Not known Hong Kong HK CSL Ltd Not known Hong Kong PCCW Not known Japan NTT DoCoMo 2010 Japan KDDI 2010 New Zealand Telecom NZ 2011-12 Norway TeliaSonera 2010 Philippines Piltel Not known South Korea SK Telecom Not known South Korea KTF Not known USA Verizon 2010 USA MetroPCS 2010 USA CenturyTel 2010 USA Aircell 2011 USA Cox 2011 USA AT&T Mobility 2011 Source: Global mobile Suppliers Association, April 2009. Qualcomm QMag 3GPP driving the release of mobile broadband November 2009 page 7 Standardization Standardization MOBILE TOMORROW page 9 A vision of the future A fridge that can automatically indicate and pre-order essential foods at the best price from locally-sourced supermarkets is a vision of the future that outlines how technological advancements can enhance consumer lives on a day-to-day basis. he connected fridge relies on a fixedline Internet connection, but the exciting element of connected devices relies on the ubiquitous wireless network to enhance consumer lives regardless of their location. With a global mobile population already exceeding 4 billion, it is the saturation of developed mobile markets that has prompted the mobile industry to explore new ways of further increasing penetration using mobile data services. Couple this with industries such as the automotive sector examining how connectivity can improve the on-road experience for drivers, and the possibilities for connected devices appear almost boundless. The Amazon Kindle is a portable eReader seamlessly connecting to the Kindle Store and a choice of over 300,000 publications. Such is the success of the eReader that other leading manufacturers have launched similar devices, such as Sony releasing the PRS-500 Portable Reader System. Navigational devices, either in-car or personal, can now deliver real-time data to users based on data analytics such as speed and location supplied anonymously by mobile phones in cars. A GPS-enabled sports watch with heart rate monitor can wirelessly download data to the user’s PC. Similarly, digital cameras will soon be supplied with a SIM to allow consumers to upload photos in real-time. The potential for connected devices to read RFID tags presents virtually limitless opportunities. Smartphones can already connect with RFID signals, which could evolve into recommending goods and services based on the consumer’s personal profile when out shopping for example, such as “low salt” or “organic” goods only when in a supermarket. The “smartly connected” world is achieving heightened familiarity among an increasingly growing tech-savvy mobile user, driven by the underlying ubiquity of wireless technology, which will soon support speeds in excess of 100 Mbps. Mobile devices and laptops are becoming “smart,” and personal digital media files can potentially be accessed from richmedia applicable devices irrelevant of location. Dongles have been one of the most celebrated methods encouraging consumers to possess a second SIM, but the concept of machine-to-machine wireless connectivity is viewed as the next bastion of mobile growth. “User penetration in a lot of the western world is saturated so machine-to-machine is the newest trend,” said Lorenzo Casaccia, director of technical standards at Qualcomm. “What if your car or your digital camera were connected to the network? Cellular connectivity will become the fabric for this.” While satellite navigation systems are already providing in-car communicative services, it will be the cars themselves that will soon be communicating. Beyond connecting cars via the cellular network and satellites, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) networks using wireless connectivity will provide what could potentially become the ultimate driver’s assistant. V2V communication between cars will provide drivers with advanced warnings of localized incidents, such as cars breaking suddenly or even crashes, before coming into the view of the driver. V2V could extend this further to identify dangerous road conditions or even ensuring priority to emergency vehicles. “The auto electronics market will be a bright new application for mobile data,” said Bruce Jackson, vice president, Qualcomm Incubation labs. “We’re already seeing connected GPS devices in cars providing drivers with realtime traffic updates. Giving vehicles the capabilityfor Internet access and in-car communication provides a new opportunity to extend the power of mobile broadband.” LATEST NEWS Qualcomm is now offering classes in Europe on HSPA+ and LTE. Courses are developed and taught by the Qualcomm Engineering Services Group (ESG) experts. “LTE Network Planning” and “LTE Air Interface Operation” courses are now scheduled in Paris, London and Munich; new content (HSPA+ and LTE) and other locations will be programmed within the coming months. From new technology overviews, to Network Optimization workshops, your teacher will be one of our experienced Qualcomm engineers, members of the ESG. From the early days of UMTS deployment, ESG has supported operators throughout the world to understand, plan and optimize the technology. ESG is staffed by engineering experts who share years of standards-based experience and work in the field, optimizing 3G network rollouts. ESG involvement is designed to accompany the operator in their deployment: from initial technology training, to embedded support during network planning and optimization, to troubleshooting and future technology evaluation Qualcomm ESG can also organize customized and on-site classes on demand. We invite your inquiry. For details on our schedule and our complete Course Map, please contact us at qu.esgeu@qualcomm.com. Qualcomm QMag T November 2009 Connected devices Connected Devices TECHNICALLY SPEAKING taking mobile data inside THE POPULARITY OF YOUTUBE AND BBC IPLAYER HAS MADE STREAMING VIDEO ONE OF THE MOST POPULAR SERVICES ONLINE. IT IS A TREND THAT IS NOW TRANSFERRING ONTO THE MOBILE PLATFORM AS SMARTPHONE USERS CAPITALIZE ON THE DEVICE’S HIGH-END FUNCTIONALITY AND DONGLES BRING FULL WEB CAPABILITIES TO LAPTOPS. SMARTPHONE USERS ARE GENERATING IN EXCESS OF 10 TIMES MORE TRAFFIC THAN MOST BASIC DEVICES, PLACING INCREASING PRESSURE ON WIRELESS NETWORKS. WITH THE MAJORITY OF MOBILE DATA USAGE TAKING PLACE INDOORS, OPERATORS ARE AT THE FOREFRONT OF FEMTOCELL DEVELOPMENT TO ENSURE MOBILE DATA USERS HAVE THE BEST INDOOR CELL COVERAGE. I n the U.S., 14.8 billion video clips are viewed online every month with an average user viewing time of 356 minutes and a consumption of 680Mbps1; in the UK, the average monthly consumption per user is 1.3Gbps2. This online trend is now migrating onto mobile. According to AT&T, data represented 27 percent of revenues in 1Q09 compared to 21 percent in the same period the previous year, with streaming audio and video accounting for 31 percent of network traffic. In developed markets3, much of this mobile data explosion is generated by smartphone users, where the average yearon-year growth of mobile data per user is between three and five times. “We need to drive down the cost per bit in operator networks while also meeting the rocketing demand for mobile broadband services, which is putting too much pressure on HSPA and HSPA+ networks,” said Simon Saunders, chairman of the Femto Forum. “We need a change and that is where femtocells have a major role to play.” It is a change driven by the operators’ need to meet growing user consumption. Saunders told QMag that 90 percent of mobile data usage is indoors. “Because the data user experience is directly correlated to the quality of that signal, it makes sense to place femtos indoors where signals are weakest and therefore the user experience is poorest,” he said. Questions are now being raised by mobile operators about whether macro networks will scale to meet the rapid upsurge in mobile data demand. In addition, coverage holes caused by building shadows and building penetration losses are limiting the performance of wireless networks indoors. “Femtocells bring the network supply closer to the demand for services, and in the process, provide excellent signal conditions and high data throughput,” said Nick Karter, senior director of business development at Qualcomm. Karter said operators confronted with capacity concerns will require substantial capital expenditures to improve macro network performance to support its heaviest users. However, operators can target their CAPEX in both the enterprise 1 ComScore 2ComScore 3Coda Research Consultancy and residential environments by providing their heaviest users with femtocells. This will ease network congestion on the macro network and reduce backhaul capacity needs. In the process, femtocells can deliver indoor throughputs and peak rates well in excess of 1Mbps. Similarly, Saunders is confident that the return on investment from femtocells will be considerably higher than a macro network upgrade path. “Operators are starting to realize that the investment required to provide free femtocells to heavy data users is far lower than trying to achieve the same outcome with macro network upgrades,” he said. “Femtos deliver better voice quality and a vastly improved data experience at a cost no other technology can match.” He claimed that 20 percent of homes in the UK have inadequate coverage for voice and data. In July, Vodafone UK became the latest operator to deal with the existing issue of mobile coverage at home using femtocells when it launched its Vodafone Access Gateway – targeting homes and small office locations. The UK operator positioned the service as delivering “more reliable 3G coverage indoors” and providing improved voice calls and faster data downloads. Vodafone UK was the first European operator to launch a femto service, following similar announcements from Sprint and Verizon Wireless in the U.S., NTT DoCoMo and Softbank in Japan, and StarHub in Singapore. “These operators are the pioneers, and we will see more femto launches before the end of the year from other big operators,” said Saunders. The Vodafone Gateway is available on a monthly tariff of £5 or a one-off cost of £160, while Verizon charges US$250 Qualcomm QMag Femto: Femtocell shipments will grow from 0.2 million units in 2009 at a compound annual growth rate (CAGR) of 127 percent to 12 million units worldwide in 2014, according to analyst firm Berg Insight. Simon Saunders Chairman, Femto Forum (£157) for its Wireless Network Extender device. But as both Karter and Saunders explained, the costs are expected to be incorporated by operators as femto becomes a central component in the fight against churn. “Femtocells are creating a very sticky service for the consumer by providing operators with the ability to create differentiated offerings,” Saunders said. Not only does femto have the additional attraction of being able to work with all 4 billion mobile devices operating around the world, it can deliver location-, context-, presence-, and user-based information. Femto could deliver premium, bigger apps to the device when the user returns home and the device switches from the macro network to the femtocell. “When users are out and about they can use basic multimedia services,” Saunders explained. “However, when they arrive home they can use the femto to access far higher bandwidth services and synchronize their handset quickly and at zero cost with all of the media stored on their home network.” As Saunders notes, femto is still in its evolutionary phase and requires key players such as Qualcomm to build on the standardized products in large volumes by delivering the silicon to femto-friendly vendors. “We all need to draw on a common base of components,” Saunders said. “So we’ve been looking at femtocell devices and network gateways and started to harmonize design based on standards. This will allow consumers and operators to choose from a wider range of products as well as bring costs down through economies of scale. If it’s cheaper overall to deliver and it provides a better service, then everyone wins.” November 2009 page 11 Future Perspectives Femtocellls THE “SMART” CONCEPT HAS ALREADY SWEPT ACROSS THE MOBILE INDUSTRY AS MOBILE PHONE USERS TRANSITION FROM SIMPLE VOICE AND TEXT TO MULTIMEDIA, INTERNET AND MOBILE APPLICATIONS. SMART IS NOW BEING EXTENDED INTO THE COMPUTER WORLD. SMARTBOOKS WHAT MAKES A SMARTBOOK SO SMART? The form factors of Smartbooks will vary widely, from traditional tablet-sized devices with screens as large as 12 inches, to smaller 5-inch high-resolution touchscreen devices. Smartbooks will have more memory and faster speeds, sensors such as accelerometers, and a significantly longer battery life than laptops. • Instant-on access – no boot up time or waiting • • for email to download 3G connectivity – mobile broadband speeds Ultra-portable design – less than 20mm thick and less than 2 lbs. Smartbooks WHAT MAKES A SMARTBOOK SO SMART? • All-day battery life – 8 to 10 hour charge, • • plus week-long standby Built-in GPS – location-aware Customizable interface – intuitive, one-touch navigation. I n 2008, there were more laptops sold worldwide than fixed PCs, demonstrating the move towards mobile computing. Netbooks are smaller, cheaper and slightly dumbed-down version of laptops intended to open up mobile computing to the mass market. Smartbooks, on the other hand, represent the response from customers to combine their communications needs with fast, simple and easy-to-use computing. “Smartbooks deliver high-end smartphone capabilities to devices while providing larger screen sizes. Users enjoy features such as always-on 3G connectivity, SNAPDRAGON The first smartbooks using Qualcomm’s Snapdragon chipset will go on sale towards the end of 2009, tapping into a market that IDC forecasts will reach US$16 billion in revenue by 2013. location awareness, 3D graphics, HD video, instant-on, and enough battery power for all-day use,” said Keith Kressin, senior director of product management at Qualcomm CDMA Technologies. “The goal is to introduce a new category of devices that are thinner, lighter, easier to use and better connected than today’s netbooks.” One of the fundamental differences between smartbooks and netbooks is their heritage. Netbooks come from a computer paradigm using a PC usage model requiring the user to go to a store and buy software. They have proven popular with consumers because they deliver additional mobility compared to laptops. A smartbook comes from a smartphone background designed to work with online applications rather than traditional computer software. This provides ease of use with the intelligence to collect emails and data as required, rather than when requested. “Research shows people have changed the way they use computers over the past 10 years,” said Kressin. “Usage for most people today is very Web-centric as they do things like browsing, social networking, downloading music and using Web-based services. Web-centric usage models and the growing market for subUS$500 netbooks are two key data points indicating that consumers are ready for devices that are highly mobile. They want devices that are thin and light with a long battery life and that are always connected through 3G or WiFi. Smartbooks fill this checklist ideally and are truly designed for the mobile Web.” Today, users expect not only services but also accompanying applications. As app stores have gripped smartphone users, companies are exploring ways of extending app-store functionality beyond mobile handsets and into the domain of smartbook devices. “Developers are creating mobile applications that we want to also apply to the smartbook.” Kressin said. “We believe there is a significant opportunity for developers of mobile web applications to extend their application to larger form factor devices. We want smartbooks to offer features that mobile web applications expect, such as location awareness, network awareness and sensors such as accelerometers” To date, Kressin said that the majority of netbooks have been sold in Europe because the operators have been aggressively promoting connectivity to push 3G data packages. Beyond the developed world, there will also be considerable demand in emerging markets. “In markets such as India, most of the population does not have access to computing and the Internet,” said Kanwalinder Singh, president of Qualcomm India and South Asia. “In a country of 1.2 billion people with 40 percent teledensity, there is only 3 percent penetration of classic computing devices and an even smaller base of 6 million broadband connections. Mobile platforms will drive both computing and broadband Internet access in India. Smartphones and smartbooks have a great potential as mainstream computing devices for urban India, while rural India can be served by affordable Internet solutions based on Qualcomm’s Kayak platform.” Kressin believes that smartbook use in emerging markets would appeal to a different demographic. “In the developed world, people have grown up with computers, but in the same way that the mobile device has recently been touted as the first Internet experience in emerging markets, the smartbook could represent the first PC-like Internet experience in these countries,” he said. “It will span a much broader generation. Many of these homes are not wired for connectivity, but it’s very important for many parents to ensure their children have Internet access.” In November 2005, the One Laptop Per Child project was announced at the World Summit on the Information Society (WSIS), designed to provide the world’s poorest children each with a low-cost, low-power, connected laptop priced below US$100 to assist with their education. Since the first commercial laptop was launched in 2006, the price has hovered around US$200. Kressin expects similar demands to be made on smartbooks in emerging markets. “To make a sub-US$200 device, you would need to make compromises on screen, battery and sensors,” he said. “Further compromises could be made by using a low spec mechanical layouts or last-generation display technologies and removing many optional components.” The move to 45 nanometer (nm) process technology supports the chip industry’s move to add more functionality in the same chip footprint. Combined with GHz processing, smartbooks can support 2G/3D graphics, high-definition video, as well as lower standby power (less than 10milliwatts) with increased battery life enhancements for all-day running. Qualcomm QMag Market tracking firm DisplaySearch forecasts netbook sales to top 33 million in 2009, taking netbooks total penetration of the global laptop market to 20 percent. November 2009 day by day page 13 Getting smarter day by day Getting smarter The application ecosystem gold “ With app stores containing thousands of apps, consumers could face up to 30 different versions of a simple puzzle game like Sudoku.” The mobile applications market has evolved since 2001 when Qualcomm launched the first mobile storefront with BREW®. Following the launch of the iPhone 3G in 2008, with which Apple became the poster-child for the modernday “App Store,” the pace of innovation has picked up significantly prompting a proliferation of market channels for mobile apps across smartphone platform providers, handset OEMs and mobile operators. This second wave of app stores has sparked heightened levels of innovation and attracted significant funding into the sector. It has never been a better time to be a developer. This emerging marketplace is now competing for the attention of the developer community. The Chubby Brain Blog reports that in 2009, venture capitalists have invested more than US$100 million in iPhone predicated start-ups alone. Industry efforts to improve the quality of tools, lower the cost of testing and certification, speed time to market, and promote these solutions to consumers have resulted in an explosion of applications. Stores are being stocked with thousands of applications, and wellfunded companies with strong operator relationships now sit alongside garage developers in competing for consumer attention. But as the global developer community responds to the proliferation of app stores, this modern-day gold rush is creating a series of challenges that may ultimately constrain growth in the mobile ecosystem. The proliferation of vertical application stores tied to specific operating systems (OS) is driving both platform and channel fragmentation, thereby forcing development and delivery costs up across the industry. Developers are being forced to make explicit choices between platformspecific channels that unnecessarily constrain their market reach. Developers are calling for greater standardization across platforms to tackle the rising issue of fragmentation. In 2009, a total of 59 percent of venture-backed mobile start-ups were developing for five or more operating systems in order to address a sufficiently broad base of commercial devices. The emergence of more capable browser-based environments leveraging a cloud services infrastructure will ultimately address this issue, allowing developers to build highly capable applications that work seamlessly across different operating systems. However, over the next couple of years, fragmentation in native application environments is likely to persist as competition between app platforms and their stores intensifies. Existing vertical app stores have created the marketplace, but Qualcomm believes that a horizontal distribution model is necessary for it to scale. This requires platform-agnostic content enablement systems that support all OS platforms, from BREW to BlackBerry to Android and beyond. Retailers benefit from the cost efficiencies of a single storefront infrastructure. Consumers benefit by reclaiming ownership of their content, with features like a Digital Locker enabling cross-device content portability, and developers benefit from a horizontal distribution model that promises to reduce friction in the app commercialization process. Aside from channel choice, app discoverability has also become a major issue. With app stores containing thousands of apps, consumers could face up to 30 different versions of a simple puzzle game like Sudoku. Only a few developers have a truly groundbreaking application or sufficient negotiating power to get featured in a national ad campaign or placement at the top of the store. Developers need new ways to manage the marketing and merchandising of their application in a crowded space. In particular, developers need operators and other mobile retailers to step up the quality of the merchandizing and marketing tools. A strong recommendations engine is a critical element in fostering discoverability to deliver relevant and contextual apps. The business environment is changing rapidly for developers. Applications on an operator deck could remain at a consistent premium price for up to 24 months, but prices on the Apple App Store can be reduced rapidly within weeks. For the mobile content ecosystem to flourish, it needs to support the broadest possible range of business models and allow developers to optimize their channel and pricing mix for profitability. This means supporting high-volume, low-price content with 80 percent revenue share, but also premium content with direct subscriber billing at a 60 precent revenue share. The key here is flexibility. There is not a specific business or pricing model that will work for all opportunities. Developers need tools that allow them to experiment in creating ongoing engagement with their consumers within a retail infrastructure that lets them make informed business choices. This means facilitating an ecosystem of free and ad-supported content through integration with ad networks, supporting free premium (freemium) business models through in-app billing, and creating models that enable paid premium markets to flourish. For developers, market trends are adding complexity to an already fragmented and congested market. This is likely to get worse before it gets better in the gold rush of app stores. The next few years will be tough for the industry. Some developers will strike it rich within the current vertical model while others may be fated to chase fool’s gold. It is in this context that the ecosystem must transform from a vertical solutions model and unite as an industry to tackle these challenges with a horizontal approach. The application ecosystem gold rush AS THE GLOBAL DEVELOPER COMMUNITY RESPONDS TO THE PROLIFERATION OF APP STORES, THIS MODERN-DAY GOLD RUSH IS CREATING A SERIES OF CHALLENGES THAT MAY ULTIMATELY CONSTRAIN GROWTH IN THE MOBILE ECOSYSTEM. November 2009 The application ecosystem gold rush page 15 The application ecosystem gold rush MOBILE TOMORROW Blurring the line between virtual&reality POINTING A MOBILE PHONE DOWN A CITY BLOCK OR AT A NEW TOY IN THE LOCAL TOY STORE AND USING THE DEVICE’S CAMERA TO AUTOMATICALLY IDENTIFY AND INFORM THE USER OF THE SUBJECT APPEARING ON THE SCREEN IS BEING HAILED AS A MAJOR TECHNICAL ADVANCE FOR THE MOBILE INDUSTRY. Augmented reality is the process of overlaying the real world with information or virtual objects, and emerging breakthroughs in this technology are poised to shape the mobile user experience of the future. “In the long term, you will be able to point your mobile device’s camera at buildings, objects or almost anything and get detailed information on whatever appears on the device’s screen,” said Miles Kirby, senior director of product management at Qualcomm. “Augmented reality is one of those magical enablers that takes things to the next level. This could be the next big quantum step forward.” Using computer vision algorithms to align relevant information with imagery captured by the device’s camera, augmented reality has the potential to change the way mobile phone users interact with their environment. The potential of augmented reality will be realized as more and more of the objects in our everyday environment can be recognized digitally. At this stage, the mobile device starts acting as an eye and that is certainly the goal for Blur, Qualcomm’s R&D augmented reality project. “This is a new user interface paradigm that enables the mobile phone to bring information to users automatically, rather than requiring them to manually search for information,” said Jay Wright, director of business development for Corporate Research and Development at Qualcomm. “Call it what you will, a magic window or looking glass, but this is a new paradigm for location-based search.” Augmented reality is already being used to deliver digital information to images appearing on smartphones. SPRXmobile from the Netherlands has launched an augmented reality browser called Layar for Android, while London-based AcrossAir has launched a “nearest tube/subways” app allowing iPhone 3GS users in London and New York to find the closest station from their existing location using visuals as a guide. As examples of some of the The application ecosystem gold rush Blurring the line between virtual and reality November 2009 page 17 blurring virtual and reality MOBILE TOMORROW earliest augmented reality apps, these apps are setting the precedent for the next wave of content and services delivered over the mobile channel. Before the futuristic nature of augmented reality grips the wireless industry and consumers alike, the hype cycle will have to be carefully managed. “Our industry has a tendency to set high expectations about the potential for disruptive technologies like augmented reality. We need to focus on talking about applications for which augmented reality delivers real user value, and which apps the technology can realistically enable,” said Wright. The existing crop of mobile augmented reality applications have been developed around the device’s compass and accelerometer. However, because a digital compass is subject to error of up to 20 degrees depending on magnetic interference, the user experience for these applications is not optimal. “Compassbased augmented reality suffers from two problems with augmentation graphics: They aren’t well aligned with the underlying imagery, and they tend to drift and be bouncy or jittery.” While these problems can be addressed using advanced compass calibration techniques and adding motion stabilising technology, the compass-based approach will not enable tight alignment between augmentation graphics and the underlying camera image. This level of alignment requires computer vision algorithms and more processing power than is available in today’s mobile phones. “This is Qualcomm’s opportunity for augmented reality,” said Larry Hartigan, senior vice president, business development at Qualcomm. “Compelling augmented reality requires significantly more computing power than is available in today’s phones, and that’s exactly what we’ll be delivering in future Qualcomm chipsets.” TECHNICALLY SPEAKING India CDMA wireless space INDIA HAS A POPULATION EXCEEDING 1.2 BILLION AND IS EXPERIENCING THE FASTEST EXPANSION OF ANY MOBILE MARKET IN THE WORLD. WITH TELEDENSITY STANDING AT 40 PERCENT, IT HAS BECOME COMMONPLACE FOR THE MOBILE MARKET TO EXPAND UPWARDS OF 12 MILLION SUBSCRIBERS PER MONTH THROUGHOUT 2009. India has a population exceeding 1.2 billion and is experiencing the fastest expansion of any mobile market in the world. With teledensity standing at 40 percent, it has become commonplace for the mobile market to expand upwards of 12 million subscribers per month throughout 2009. CDMA subscribers represent 23 percent of the country’s total subscriber base, which is expanding by an average of 2.25 million per month. The Open Market Handsets (OMHTM) initiative, formed by the CDMA Development Group (CDG) and championed by Qualcomm, is set to accelerate this growth over the next five years. In May 2009, the CDG announced that India’s CDMA subscriber base had crossed 100 million — less than two years after announcing the first 50 million subscribers — and is making a significant contribution to the total Indian wireless market. The Telecom Regulatory Authority of India (TRAI) announced in July that there were a total of 441 million mobile subscribers in the country. “We expect 200 million subscribers, of the projected 400 million subscribers to join the Indian networks over the next three-to-four years, to be on 3G CDMA technology,” said Paul Jacobs, chairman and CEO of Qualcomm. One of the primary reasons behind the development of OMH is to increase the variety of devices in emerging mobile markets and extend channels of distribution within the mobile ecosystem. For operators, OMH will reduce handset inventory costs, as well as push subscribers up the handset value chain towards data capable 1xEV-DO devices. “OMH enables an open distribution ecosystem for CDMA because all of the operator- and subscriber-specific provisioning information is now completely contained within the OMH SIM card, making the handset free from any dependency on a specific operator’s network,” Nakul Duggal, senior director and OMH project lead, Qualcomm Corporate Engineering Services, told QMag. “This gives subscribers the freedom and flexibility to select their handset and their network operator. By choosing different OMH SIM cards or simply upgrading to the OMH handset of their choice, CDMA subscribers can now easily take their contacts, pictures and bookmarks with them.” OMH will also deliver benefits to handset OEMs by increasing economies of scale in the context of handset development, testing and distribution. The same device can now be sold across multiple operators in numerous markets. This offers OEMs a much stronger value proposition for their “Operators can get access to handsets from any market, and the handset OEM is now able to distribute the same handset across multiple markets,” distributors who can position a variety of devices across different market segments. For the Indian operators who were unable to carry a device inventory with large variety, OMH solves their handset dilemma. “Operators can get access to handsets from any market, and the handset OEM is now able to distribute the same handset across multiple markets,” said Duggal. “So the concept of ‘test once, sell anywhere’ significantly strengthens the CDMA ecosystem by increasing choice and expanding distribution footprint.” Data services based on 1xEV-DO have also been positioned as a core function of the device within OMH. At this time of rapid mobile content and service adoption, where ring-back tones dominate the content landscape and mobile social networking has catapulted mobile Internet usage, the timing for OMH devices is ideal. “Users can now personalize their devices with rich-media content and can access services like mobile social networking,” said Duggal. “The fact that the OMH SIM can also store data will encourage much greater usage of these services and increase ARPU for operators.” OMH is a collaboration of almost 50 leading manufacturers, including Gemalto, Haier, Huawei, LG, Oberthur, Nokia, Qualcomm and ZTE. What’s more, OMH has the full support of all the Indian CDMA operators, which are committed to releasing OMH SIM cards and bundled services for targeted market segments. The initiative went live in late August with the launch of the world’s first OMH device. Samsung, in association with Qualcomm, released the Mpower 699 in India, a device with an OMH-capable chipset, a 1.3 megapixel camera, advanced multimedia features and a 2GB MicroSD card. Qualcomm anticipates OMH extending beyond mobile devices into the mobile broadband domain of dongles and 3G-embedded netbooks, while capitalising on the extensive 3G infrastructure that has already been deployed in several markets across India. “We will support OMH capability across all chipset tiers; and we will work with device OEMs on increasing the adoption and implementation across their various handset platforms.” Duggal said. “We are supporting the migration to mobile highspeed data services globally. With OMH, it just got a whole lot easier for users in developing countries to get access to highspeed data capable devices.” Beyond India, the immediate expansion of the OMH footprint includes South East Asia, Sub-Saharan Africa, the Middle East and parts of South Asia. Longer term, the OMH SIM cards and handsets are expected to expand into additional CDMA markets. “The OMH initiative for the CDMA ecosystem is very important,” says Cristiano Amon, senior vice president of product management, Qualcomm CDMA Technologies. “A thriving open market in CDMA will result in increased variety in handsets, facilitate transition to EV-DO and allow new and advanced chipset capabilities to be introduced in smaller carriers, faster.” OMH India OMH to drive November 2009 page 19 OMH India OMH to drive India CDMA wireless space November 2009 page 21 Empowering the consumers empowering the consumer empowering the consumer INNOVATION Empowering the consumers THE ABILITY TO TRANSFER DIGITAL CONTENT FROM ONE DEVICE TO ANOTHER IS ALREADY PREVALENT BETWEEN THE MOBILE PHONE AND COMPUTERS. NOW, DEVICE MANUFACTURERS ARE LOOKING TOWARD ENABLING DIGITAL CONTENT SHARING AMONG A WIDE VARIETY OF COMMON HOME DIGITAL DEVICES IN A PROCESS KNOWN AS MEDIA SHIFTING. M edia shifting will empower the consumers with the capability of accessing their digital content at any time, over any device from any location. Media shifting uses software that allows consumers to access their centrally stored digital content via a consumer device. It has already started to penetrate the mobile content space with sideloading enabling digital files to be shared between mobile and computing devices. However, the ability to transfer content between mobile devices remains constrained. While mobile music is undergoing something of a revolution with digital rights management restrictions being lifted, this is yet to be applied to games and other forms of media. The rapid growth of proprietary app stores and accompanying fragmentation of operating systems is creating additional hurdles in the transference of content between devices. “If operators are differentiating themselves with devices such as the Palm Pre for example, what happens when a consumer personalizes their device with content from the Palm app store and then they upgrade to another device running on a different operating system?” asked Brian Vogelsang, director of product management at Qualcomm. “They can’t take their content with them as their content is managed by the vertical system, which is tied to the operator and not the platform.” Consumers have the freedom to migrate between devices within an operator’s portfolio, but migrating to a new operating system could result in the loss of their mobile content even though the rights to the content are tied to the consumer. One means of overcoming this is the digital locker of licensed rights that removes the vertical business models associated with existing operating systems. “Consumers can access the digital locker through WAP, the client, the Web or the device,” said Vogelsang. “They can see the rights they have and will be able to redownload their existing content from the digital locker directly onto their new device.” Although digital lockers are a new concept, the process of sideloading is commonplace among mobile users. In the same way that dual-downloading of content primarily for the mobile device will be centrally managed by the consumer from his computer, it is the ability to access this content over multiple devices that is driving this usage. Media shifting is now being applied to multiple devices around the home, and is no longer limited to just the mobile and computer. Indeed, digital living enables content to be shifted between media devices throughout the home, such as digital TVs, digital video recorders, digital cameras and digital music players. The concept of digital living starts with the home network and is often a combination of both wired and wireless connectivity. To meet this growing demand for connected content the Digital Living Network Alliance (DLNA) has created design guidelines for a new generation of DLNA certified products that can work together. The DLNA is a collaboration of 245 of the world’s leading consumer electronics, computing and mobile companies. To date, there are now more than 5,000 DLNA certified devices that can connect, discover and communicate with each other over a home network. Ubiquitous connectivity is giving rise to the consumer experience of media shifting, and the move to extend digital living beyond the confines of the home are well underway. “Users can be sitting in a hotel bedroom anywhere in the world and use the broadband connection to connect to their PC at home and access all of their media,” said Bruce Jackson, vice president, Qualcomm Incubation Labs. “There is no reason I should not be able to access my digital media whenever I want, and from wherever I want. I don’t want to consume According to ABI Research, nearly 200 million digital media devices with DLNA certification were shipped in 2008 and this number is projected to rise to over 300 million in 2012. the end result on my laptop. I want to consume it on the plasma TV in the room, or on my hifi and not through PC.” Media shifting is transforming the PC into a content management intermediary, with the mobile phone becoming the remote control for media place shifting. “Consumers can take their media with them wherever they go,” said Jackson. “The world of mobile services is no longer just about talk and text,” acknowledges Jackson. “Flat-rate data tariffs are increasing quite dramatically and that is giving users access to the Internet and their digital content.” CORPORATE HEADQUARTERS Qualcomm Incorporated 5775 Morehouse Drive San Diego, CA 92121-1714 Tel: 858-587-1121 Fax: 858-658-2100 INTERNATIONAL LOCATIONS Bangalore, India Bangkok, Thailand Beijing, China Breukelen, Netherlands Buenos Aires, Argentina Cambridge, United Kingdom Caracas, Venezuela Farnborough, United Kingdom Guangzhou, China Haifa, Israel Hanoi, Vietnam Ho Chi Minh City, Vietnam Hong Kong, China Hsinchu City, Taiwan Hyderabad, India Jakarta, Indonesia Johannesburg, South Africa London, United Kingdom Madrid, Spain Melbourne, Australia Mexico City, Mexico Moscow, Russia Mumbai, India Munich, Germany Munster, Germany New Delhi, India Nuremberg, Germany Osaka, Japan Paris, France Poole, United Kingdom Rome, Italy Sao Paulo, Brazil Seoul, South Korea Shanghai, China Singapore Stockholm, Sweden Sulzbach, Germany Sydney, Australia Taipei, Taiwan Tijuana, Mexico Tokyo, Japan Toulouse, France Waalre, Netherlands Warsaw, Poland For more information about Qualcomm, please visit www.qualcomm.com ©2009 Qualcomm Incorporated. All rights reserved. Nothing in this publication is an offer to sell any of the parts referenced herein. EDITORIAL CONTACTS Richard Tinkler Public Relations 00 44 208 237 7106 John Gilbert Investor Relations 00 1 858-658-4183 Kira Golin Qualcomm CDMA Technologies 00 1 858-651-1554 Kate Bernstein Qualcomm Enterprise Services 00 1 858-651-6457 Akiko Nakano Qualcomm Internet Services 00 1 858-658-3317 Mona Klausing Qualcomm MediaFLO Technologies 00 1 858-651-4268