Friday, February 4, 2011

People May Want to "Cut the Cord," But Can They?


An Experiment In Cord Cutting from Hill Holliday on Vimeo.
In the case of the "typical end user," video cord cutting seems to be more of a barrier than some might think.

$25.6 Trillion Telecom Industry Revenue in 2016? Absolutely No Way

Insight Research predicts that wireless revenues will jump from 60 percent of all telecommunications services in 2008 to 72 percent in 2013, which amounts to a 14.4 percent compound annual growth rate.

The Asia-Pacific region will experience the highest growth rate in the next five years, at nearly 16 percent, led by China and India. The telecom sector in Latin America and the Caribbean will grow by 12 percent.

Insight Research also apparently believes telecommunications services revenues on a worldwide basis will grow at a compounded rate of nine percent over the next five years, bringing the sum spent globally on telecommunications to $25.6 trillion, a figure that some will consider wildly optimistic. If one counts all sorts of activities that have some relationship to communications (voice and data), plus all video entertainment, plus the value of data networking services and products, one likely could get to a number that big. See http://www.zimbio.com/New+York+News/articles/rbJJYS2aT3r/Insight+Research+Worldwide+Telecom+Industry.

But service provider revenues will not reach anywhere close to that figure. Global telecom services revenue reached $1.5 trillion in 2006, for example. To the end of 2011, growth is projected to slow to a five-year compound annual growth rate (CAGR) of 4.2 percent. See http://www.prlog.org/11216402-global-telecom-market-status-and-forecast-2006-2011.html.

Assume for the sake of argument that the $1.5 trillion 2006 figure was correct. An eight-percent annual growth rate would result in global revenue of $2.2 trillion by the end of 2011. Or assume a baseline of $2 trillion in 2006, a figure that might be considered on the high side for that time period.

That would result in a global market of $2.9 trillion. I do not have access to the full methodology used by Insight Research, but the forecast of $25.6 trillion seems off by an order of magnitude, which means the researchers are including all sorts of other revenue streams arguably related to communications.

In fact, Insight Research's own 2009 forecast of global communications revenue projected "worldwide revenues are predicted to grow from under $1.7 trillion in 2008 to over $2.7 trillion in 2013." See http://www.insight-corp.com/ExecSummaries/review09ExecSum.pdf.

Research companies change methodologies from time to time. Obviously something major has changed in that regard. The new forecasts absolutely cannot reflect service provider revenues alone. But one might ask whether such major "lumping" of multiple revenue sources from multiple industries actually provides much analytical clarity.

Mobile Augmented Reality: A Small Business by 2015

Mobile augmented reality applications and services will generate global revenues close to $1.5 billion by 2015, according to Juniper Research.

Of course, to keep things in perspective, consider that global ad spending is something on the order of $500 billion. See http://adage.com/mediaworks/article?article_id=147493, for example.

The installed base of AR-capable smartphones had increased from eight million in 2009 to more than 100 million in 2010. At the same time, AR apps that initially were the preserve of smaller development companies and researchers at technological institutes, are starting to get some use from larger brands.

Thursday, February 3, 2011

Africa Mobile Advertising Grows19% Growth |in 90 Days

Mobile advertising views grew nearly 19 percent in just 90 days, says InMobi, breaking the three-billion impressions mark to reach 3.3 billion monthly impressions. Smartphones remain relatively nascent in the market, and 88 percent of all mobile ad impressions are on advanced feature phones.

Nokia strengthens its’ already dominant market position by gaining 2.7 share points. About two out of every three ad impressions in the region occur on Nokia devices.

Phantom Data: How Big a Problem?

Phantom data usage being billed against customer accounts appears to be a growing problem.

Apple iPhones apparently have had the issue, a consultant study has found. Microsoft Windows Phone 7 users have complained of inexplicable data usage being charged to their cell data accounts. Microsoft tracked down the "phantom data" bug that they attributed to a third party.

Apple continues to remain silent and some customers of the iPhone in the U.S. and abroad continue to complain to their carriers about 'phantom data' usage.

10 Common Misconceptions New Users Have About Skype

Skype has become, for many, one of the preferred modes of communication, particularly over long distances. For newer users, though, there are a few misconceptions. Here are 10 of those issues.

66% of Enteprises Plan to Use Cloud Services in 2011

About 66 percent of 1,ooo enterprises who are customers of Ipswitch are making cloud computing investments in 2011. For security reasons, most are choosing either private cloud, or a hybrid public-private mix.

Not Planning Any Investment: Some 36 percent of respondents are not planning any cloud spending. About 29 percent will use a private cloud approach. Some 13 percent will use a public cloud approach (Amazon, Microsoft Azure or another computing infrastructure provider). About 21 percent will use a mix of public and private approaches.

Will Generative AI Follow Development Path of the Internet?

In many ways, the development of the internet provides a model for understanding how artificial intelligence will develop and create value. ...