Sunday, August 07, 2005

Can TTP Stack Up Against the Competition in the New World of 3G?

The International Herald Tribune (site registration required) profiles a small U.K. company that designs and licenses software and applications used on more than 80 million cell phones worldwide.

TTP Communications provides handset manufacturers with a bundle of software called a "protocol stack" that can "be easily adapted to conform to the wishes of different phone makers, who usually added their own layers of proprietary software to make possible advanced functions to distinguish their brands, like Web browsing, streaming video and games."

Richard Windsor at Nomura Securities notes "TTP was one of the first companies to be out there with a 2G protocol stack, which is now being used in many devices, including RIM's BlackBerrys. They were one of the first to see where the 2G market was heading."

TTTP Communications generated sales of £64.7 million, or $115 million in its latest fiscal year. However as the industry transitions to 3G, TTP, which is partnering with Intel, has found it difficult to duplicate the success of its 2G protocol stack.

"The issue with TTP is 3G; I haven't seen any evidence that they have a competitive 3G product yet. "They've been basically late to market," Windsor added.