Mobile pictures

Streaming video, multimedia become better-positioned for wireless Give wireless consumers access to digital media via mobile devices sooner than expected - that was Qualcomm's main goal when it selected PacketVideo as its provider of wireless multimedia technology in September.

PacketVideo's wireless media software will be integrated into some of Qualcomm's future products, which will further enable Qualcomm's CDMA devices to deliver sound and animation.

PacketVideo viewed the agreement with Qualcomm as an endorsement of what it hopes to bring to the wireless industry, said Kathleen Peters, vice president of embedded systems solutions for PacketVideo.

"Carriers need to ensure that there will be a new revenue stream, and they have been concerned whether or not devices [to support that] are available," Peters said. By working with Qualcomm to add multimedia capabilities to hand-held devices, PacketVideo believes that carriers will feel more confident about offering video applications, she said.

The initial handset from the PacketVideo/Qualcomm collaboration is expected to be available by the fourth quarter.

Although Peters does not expect the U.S. wireless market to embrace wireless multimedia applications before Korea, Japan and Europe, she anticipates that the partnership could help speed service introduction.

Some analysts share her belief. "They could get carriers to gear up to market these services heavily," said Cliff Raskind, an analyst with Strategy Analytics. In fact, other companies also teamed to deliver multimedia applications to wireless devices. Sprint PCS and PacketVideo recently agreed to work together so the former could eventually deliver streaming video to its customers. According to Strategy Analytics, once carriers begin to offer content such as streaming video, they can secure customer relationships (see box).

Peters anticipates that initial video applications will include short news items, entertainment clips, games and video e-mail. While these applications could run over second generation networks, they would be better-suited for 2.5G or 3G, she said.

But before any service can be offered to consumers, operators must evaluate their network capability. "Service providers first need to understand the impact of new services on their networks," Peters said. "Video will consume the bandwidth of several voice calls."

PacketVideo recently completed a two-month test with a U.S.-based CDMA carrier. It also has tests running in Asia and Europe. Despite some progress, U.S. carriers will be crippled by the speed of their networks for the next year, Peters said.

PacketVideo has focused on wireless from the get-go, she added. "We build everything with cell phones in mind," she said. "We are not only focused on personal digital assistants, we are a wireless company."

RealNetworks, a PacketVideo competitor, did not begin operating with wireless in mind, though it has been moving in that direction. In June, the company partnered with Nokia to develop and distribute Internet media technology for future mobile devices.

"Consumers have a relationship with the Internet and the content that they access," said Peter Zaballos, director of systems marketing for RealNetworks. "They want the same relationships over hand-held devices."

The Nokia announcement shows RealNetworks' commitment to integrating its streaming video and audio technology into handsets, Zaballos said. "This is significant because it sends a strong signal to content providers that carriers will begin looking to [multimedia applications] as handset manufacturers work on it."

Video and other multimedia applications might not be ready in the U.S. yet, but certain applications such as movie clips and monitoring applications for the home can be offered now, Raskind said. However, Raskind is skeptical that two-way video applications via wireless devices will be useful.

"How much people are willing to pay will depend on how much is subsidized on the handset side," he said. "[Infotainment] is an area we see dominating the wireless industry. But for it to fly, it needs to be priced low."

Raskind foresees carriers including multimedia applications as part of a bucket plan rather than a flat-rate plan.

- Recognize that entertainment will become the dominant modality of wireless content

- Seek preferred relationships with content providers and aggregators that will enable operators to offer first access to premium timely content

- Meet users' needs for safety; reinforce their beliefs and values.

- Develop a detailed understanding of the emotional and economic motivations of key user groups.