Industry Experts Predict Continued Growth in Mobile Technology

Optimism reigned at yesterday's RBC Capital Markets' Mobility Evolution Conference in New York when institutional investors, wireless service and content providers, research analysts and wired/wireless advertisers predicted the past five years of 20 per cent annualized growth in mobile technology would continue for the next five years. In an informal survey of 100 mobility experts attending the conference, higher costs to consumers and spending on infrastructure were identified as the two biggest challenges in developing an ultimate "all-in-one" product - a reference to the trend away from single purpose mobile devices like cell phones and PDAs, towards a single multi-purpose product.

When asked what business model will ultimately prevail for delivering entertainment over wireless devices, 49% of survey respondents selected pay-as-you-go downloads, with the remaining split between advertiser-supported services and subscription-based services with long-term contracts.

In two key areas, the expert's view of the mobile world contrasted sharply with an RBC Capital Markets survey of 1,001 consumers released earlier this week. While 63% of experts believe consumers want to watch TV or movies on their mobile devices, only 23% of consumers expressed an interest. Furthermore, 72% felt that consumers would tolerate advertising on their mobile device if it lowered their costs; yet in the consumer survey, only 20% said they would tolerate advertising if it lowered costs.

"This discrepancy is likely due to the fact that we are in the early stages of an evolution in mobility," said Scott Collins, director of U.S. Equity Research, RBC Capital Markets. "With single-purpose products disappearing as functionality converges, consumers are resisting making a choice. But our research shows that in time, mobility will be adopted widely. The mobility evolution has begun."

Experts picked price, wireless coverage network and necessity as consumers' top three priorities when purchasing mobile technologies, while consumers cited price, compatibility and security."

Posted to the site on 7th March 2006