The
world has got addicted to the Internet and e-mail. And India is
no exception. This has led to an unprecedented growth of
appliances that offer cheap wireless Internet access. In a way,
it is the information appliance revolution. More and more
companies are joining the bandwagon with mobile, handheld
devices which can be used for sending and receiving mails and
accessing the Internet apart from providing several value-added
services. Non-PC appliances will pose a major challenge to the
PC as a dominant way to access the Net.
According
to an IDC study, sale of information appliances will exceed that
of PCs by 2004-2005. It says that these appliances will gain
popularity with the growth of Internet and customers’ desire
for more access. It predicts that by 2002, PC shipments will
grow to 56 million units while Internet appliances will leap to
almost 42 million units, capturing 50 percent of the market.
Forrester Research predicts that breakthrough to widespread
consumer adoption will arrive with what it calls "smart
packets"–easy-to-use and narrowly focussed devices that
are tightly bundled with services. According to Gartner, the
market for these products will start to mature around 2002 and
will enter into the mainstream after 2005. To reach a mass
market, the report said, devices will need to cost no more than
$300 if purchased or $30 per month if leased as part of a
service. This will transform the way information is disseminated
world-wide.
Mobile
Internet
The key to all these changes is mobility or wireless
connectivity. The concept of mobile Internet is finally
translating into reality and is catching up. Smart cellphones
and next-generation Personal Digital Assistants (PDAs) that talk
to one another via wireless communication systems and an
explosion in e-commerce is bound to take centre stage in the new
millennium. Global System for Mobile communication (GSM)
services are becoming affordable enough for wireless modems to
be built into information appliances. Business at the speed of
thought is all set to become a reality–good news for the
e-commerce industry. The dream of making transactions while on
the move will be made possible with these soon-to-be available
devices. The growing demand for converged mobile communication
services is becoming the driving force behind the industry’s
changing focus.
Pros and Cons |
The BenefitsÂ
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Limitations |
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New
Initiatives, New Vision
As the world moves from Wireless Application Protocol (WAP) to
General Packet Radio Service (GPRS) and to the 3G technologies,
information-related appliances are in for a big boom.
International Mobile Telecommunication 2000 (IMT-2000), the ITU’s
3G vision, encompasses a variety of environments such as terrestrial and satellite and a variety of applications and
services such as cellular, fixed wireless access, etc.
The
IMT-2000 services are due to commence in Japan in 2001 and in
Europe by 2002. WAP Forum is another initiative aimed at
providing wireless access to information using a WAP phone. Its
primary goal is to bring together companies from all segments of
the wireless industry value-chain to ensure product interoperability and growth. As the market develops, a wide
variety of interactive WAP-services will be available, such as
banking, ticket booking, information and shopping. (For more
information on WAP, turn to page 46) Nokia, Ericsson,
Motorola are some of the key players in the WAP phone segment.
Another important
development that is likely to give a fillip to the growth of
information appliances is Nokia's teaming up with Psion,
Ericsson, Motorola, and Matshusita (Panasonic) to creat a joint
venture–Symbian. Symbian is working on the development of an
open operating system called EPOC, that turns voice-oriented
handsets into mediaphones and wireless information devices. This
will function as a common platform for applications in devices
made by different manufacturers.
Cost and
Compatibility
Though affordability is an issue, these appliances will be much
cheaper than their closest cousin–the PC. Most companies
planning to foray into this segment have promised cost-effective
appliances. Compatibility of these devices is another issue.
Hopefully this will be solved with increasing trend towards an
international standard. India is bound to benefit from these
rapid changes, and these appliances will become available once
they are globally launched.
The Players
and the Strategy
Many big names are trying to cash in on these new opportunities.
From the software giant Microsoft to the chip manufacturer
Intel, everybody wants to make an entry into this segment and
tap the mammoth market. The list is increasing by each passing
day. Cisco, Philips, Sun Microsystems, Nokia, IBM, 3Com, Nortel,
and HP are some of the names who are all set to take the plunge.
Intel
Corp. outlined its Web appliance strategy at the Consumer
Electronics Show in Las Vegas in January this year. It promised
to deliver easy-to-use Web appliances and provide appliance
management software, services packages, and family of branded
appliances. Intel’s strategy is aimed at providing three major
components–appliance management capabilities, services package
building blocks, and a family of Intel-branded Web appliances
designed for accessing the Internet–to telecom operators and
service providers, who will offer them to consumers. Intel looks
forward to a significant business opportunity to bring the
Internet through new devices in the home. Its strategy is to
provide telecom operators and service providers with a
cost-effective platform on which they can offer services and
remotely manage the new appliances.
Intel demonstrated
prototypes of various Web appliances, which it will sell to
service providers and e-commerce companies. The first such
products will be available in mid-2000 and will integrate
Internet access with telephony features such as call management
and unified messaging. Intel has signed an agreement with
Telcordia Technologies, Inc. for providing such services.
Microsoft Corp. has joined
hands with the industry to provide the simple and low-cost
MSN-based Web companions that deliver instant one-click access
to the Internet. Microsoft promises to make everyday Web
experience available any time, anywhere on any device. This has
been designed for consumers who want an easy and affordable way
to browse the Web and communicate with others and accomplish
everyday tasks online. MSN-based Web companions bring the rich
Internet experience that a PC provides in a lightweight,
streamlined new format, featuring instant power-on, a single
user interface, and easy-to-find controls. As one of the first
entrants in this category of Internet access devices, Microsoft
has received support from Acer Inc., Philips Electronics,
Thomson Multimedia and Vestel USA. All of them are working to
design MSN-based Web companions. Beta versions of some models
have already been released. The product will be available in
mid-2000.
Alcatel’s Internet
Screenphone, still in development stage for release late this
year, supports a touch screen and Internet access. Its address
book can hold up to 1,000 entries, and, of course, you can dial
entries with a click. Users can customize the home page and use
their own ISP or one that will come with the phone. The package
will be priced at less than $400.
Nortel Networks is gearing
up for an April 2000 release of its PowerTouch 452 phone, a $350
device that will have a built-in 100-name address book, a
wireless keyboard, and enough memory for offline e-mails. The
device uses the Analog Display Services Interface–a telephone
standard–but can connect to Internet e-mail or Web content
through gateway services.
These information appliances are targeted
initially at the corporate users but soon will make an entry
into the home segment. It will be mobility coupled with growing
e-business opportunities that will be the main driver to the
growth of these appliances in the coming months. As these
devices gain universal acceptability, people will start using
these for infotainment as well. This will lead to a networked
world where devices can easily communicate to make life and work
simpler.