Future Of Pc/mobile Convergence: Competing Technologies & Emerging Business Models For The Mobile

The global mobile phone industry has been extremely successful in the past decade

, with an average year-on-year subscriber growth of 24%. While the market has reached saturation in the more developed countries, it is still growing strongly in developing countries due to a combination of cheaper mobile phone handsets and the relative lack of fixed line infrastructure. Mobile operators therefore face two challenges: how to maintain or stimulate demand in the mature markets and secure a new client base and acquire market share in the developing markets.

There were an estimated 1.2bn computers in use worldwide at the end of 2008 with mobile PCs driving the current and future computer expansion although general PC growth is slowing. As is the case with the mobile phone industry, the bulk of the installed base (nearly 60%) can be found in mature markets. However, developing countries will increasingly account for a larger share of the global installed base and PC penetration is expected to double by 2013.

The lines have become more and more blurred between the mobile phone industry and computer industry with consumers demanding more portability and mobility, processing capability and access to data and applications anywhere and at any time. The availability of multifunctional devices such as smartphones with cloud computing capacities and portable PCs with integrated mobile technology able to access 3G, EDGE and other mobile networks for data transfer is further contributing to the convergence between the PC and mobile markets.

Key features of this report

Overview of the market trends, technological and regulatory changes that shape pc/mobile convergence.

Identification of the current issues influencing the convergence between the PC and mobile technologies.

Description of the converged products and services currently available.

Forecasts of products and services available in the future.

Analysis of the threats and opportunities posed by PC/mobile convergence.

Scope of this report

Review the current technologies, standards, regulatory frameworks and devices impacting the mobile phone and computer industries.

Identify changes in consumers lifestyle and needs that stimulate offerings of converged mobile and PC products and services.

Understand how technological advances in both mobile telephony and computing are leading towards a convergence between mobile telephony and computing.

Assess the implications, threats and opportunities of PC/mobile convergence for mobile operators, handset manufacturers and IT companies.

Key Market Issues

PC and mobile phone users in mature, developed, markets have higher expectations from their ICT providers. They demand more portability, high-speed data and seamless mobility. They also expect multifunctional devices, networked products and combined services. Faced with an increasingly competitive environment and demanding clients, IT and mobile companies are looking at new ways of creating and sustaining demand through the integration of more advanced multimedia services.

All-in-one devices that combine telephony with access to the Internet and multimedia services are becoming more popular across the board, intensifying the competition between IT companies, fixed broadband operators, mobile operators and integrated operators. Mobile and computer companies are trying to broaden their service offerings to meet and stimulate demand in increasingly competitive mature markets, leading to networked products and converged services such as on-demand video, digital TV, high speed Internet, VoIP and wireless applications.

In developing countries mobile phones are replacing landlines due to the relative lack of fixed infrastructure. Investor interest and future expansion and upgrade will pave the way for mobile broadband and converged services in those markets.

Technological advances in wireless information transfer will make next generation wireless technologies a more cost-effective and efficient option than 3G mobile Internet for mobile operators. This is, however, hampered by the finite amount of spectrum currently available. The digital switchover and resulting digital dividend will bring convergence between the PC and mobile even closer by making a vast amount of spectrum available to mobile operators.

Key findings from this report

Mobile communications are replacing traditional fixed communications across the world. This trend is caused by increasing user mobility and demand for portable devices and always on ICT services in developed countries, and relative lack of fixed telephone infrastructures in developing countries.

Technological advances combined with tougher competition and changing lifestyles are contributing to the convergence between the mobile telephony and PC industry and accelerating the decline of traditional computing and telephony.

The IT and telecoms industries share technological standards for the provision of wireless connectivity, which contributes further to the convergence of the two industries.

Mobile and PC penetration levels are close to saturation in developed countries, while there is still room for growth in emerging markets, where penetration levels are much lower. Emerging countries therefore present greater growth opportunities for ICT companies and a number of them have already implemented strategies to exploit those markets.

Key questions answered

What are the major trends and drivers behind PC/mobile convergence?

What technologies and enablers will influence further development in converged mobile and PC products and services?

Who are the major players in the PC/mobile converged market and how do they position themselves?

What are the main threats posed by the convergence between PC and mobile products and services and how can companies protect themselves?

How will the PC/mobile converged market evolve and grow in the next 3-5 years?

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