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Times Global Journal - Issue 3





When one thinks of the phrase "next generation", we get images of what the world will be like when the kids of today grow up to become mainstream adults.

Our kids aren't like us or don't want to be like us, so presumably there will be a discontinuity when we move from this world to the world of the next generation. So what changes should we be contemplating when the next generation wireless applications are deployed?

First, let's step back a bit and examine the constituents that will make up the next generation of wireless - the next generation device, the next generation network, and of course the next generation application. Are these three concepts independent, or are all three intertwined and inseparable?

The next generation device should be a low cost personal portable device that supports lots of computing power, has plenty of memory and storage, and connects to the network at high speed. Basically, it can do whatever today's PC can do, but in a much smaller, more portable form factor.

A smartphone could then be considered as the Stone Age version of the next generation device. Next generation networks are built around the Internet protocol. These networks offer a converged platform that allows a whole host of services to be delivered seamlessly to customers, and offer a simple way for providers to manage these services. With next gen networks, the almost unlimited storehouse of content available worldwide can now be packaged and delivered to customers through a unified delivery paradigm. An example of what is possible with next gen networks is provided by IPTV, which promises a break out from the shackles of the time slot based model for accessing TV content. If the next generation applications are characterized by discontinuities, we need look no further than the Web2.0 (or new media) applications. If Skype, Myspace, Wiki, YouTube, SecondLife and BitTorrent are representative examples, then it is evident that the change is already here. If we go with these definitions and examples, it does not appear that there is much in common between the trends towards next generation devices, next generation networks and next generation applications - at least as yet.

Next generation devices are coming from companies in the cellular space, next generation networks from the companies in the wireline and cable broadband space, while next generation applications are coming from companies in the Internet space. The three will come together only with convergence. So what is convergence? Does convergence mean that we have a unified big device, through which we access all our content, or does it mean a unified big pipe to the home, or does convergence mean that we have a unified big company that offers all the services we need at home? Or is it all of the above?

The mobile handset as a device has been devouring several other consumer devices for sometime now. First to go were calculators and personal information management (PIM) devices. This was rapidly followed by cameras and our good old photo albums.

Then music players got swallowed by the mobile phone. When Apple launched its now famous iPhone, analysts believed that this was to ensure it kept its hold on portable music players in the face of converged phone devices like the Walkman phone from Sony- Ericsson. We now have video players and camcorders fitted into the phone. At least for these devices we had a time lag between when it first appeared as a consumer product to when it was absorbed as a feature in the phone. But now, the time gap is shrinking.

Categories like personal navigation devices (PNDs) are being absorbed into the phone even as they are just hitting the mainstream. Other categories that will get sucked into the phone include NFC devices (for say payments), electronic wallets, security devices (like biometric keys) and gaming stations. So the big device is already a reality. The idea of having one big pipe into the home through which all services can be delivered has been doing the rounds for sometime now. From an economic perspective the idea makes lots of sense.

When we make an investment to create a big pipe to the home, we have to keep in mind that we have to generate all our returns from that one home. The natural corollary of this is that we should bundle as much content as possible over that pipe. The catch is that the people who own the content have different ideas about how to deliver it to customers.

The other problem is that the customers may choose their devices first and want their content to be delivered to them wherever they are. The pipe to the home then becomes only one of the several pipes of interest to the customer. So the big pipe model of convergence looks a bit suspect. The idea that one company knows how to provide everything we need in the converged space is even more far fetched. The failure of the AOL -Time Warner marriage was the first signal that this model does not work. There are simply too many cultural issues to deal with when one tries to integrate companies with entirely different business processes and value systems. It does look as if the converged device is the way to go, doesn't it? What does the arrival of converged devices mean for next generation applications? Unfortunately, a lot of activities we see around us today is about taking existing applications on the Internet and making them available on these next generation devices. For example, it has been a struggle to create a browser for the mobile phone that provides a decent Internet browsing experience.

Should we not be focusing on a completely new set of applications that are appropriate for the mobile phone? Take for example, video content on YouTube which is created by amateurs. It is most likely that such content will be shot using the mobile phone video cameras, simply because when an interesting event is to be shot it is quite likely that the only device within our reach is the omnipresent phone. On the other hand, the YouTube content is not high quality video that we want to see on our high definition TVs in our living rooms. The low quality of video playback on a small phone screen is adequate for this content. More generally, the personalization features could weigh in more heavily for the user than the quality of the content, and this will drive such applications more naturally to the mobile phone. So, does that mean that the new media and the next generation converged devices are better matched? What implications does this have for traditional operators and content providers? The following pages should give you a lot of relevant answers and pointers.


 
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