Informa: TV and Music on the Mobile Key as Handset Market Slows

Informa Telecoms and Media will issue a report next month that finds handset vendors need to "look to new features and supported services to rekindle growth over the next five years, with music player and mobile TV providing huge revenue-earning potential. Digital media broadcasting receivers on handsets could be of greatest significance." Informa predicts reduced growth rates for handsets due to key prosperous markets reaching high penetration levels, and forecasts handset sales will reach 899 million units by 2010, from their 2005 level of 743 million.

Dave McQueen at Informa said, "The mobile market has developed substantially over the last 18 months, particularly with the eventual take off of 3G networks in Europe and in North America following the lead taken by Japan and Korea. The migration from 2G to 3G is likely to be accompanied by dramatic changes in the industry value chain, with the mobile handset community increasingly shifting its focus from voice to data services support. These new trends are changing the industry landscape and creating many new and exciting investment opportunities. To stay ahead, leading players need to differentiate their products by means of new technologies. Standards, alliances and partnerships also need to be created throughout the technology value chain, to ensure that technology diversity does not result in unwanted market fragmentation."