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Video on Cell Phones Not Ready for Prime Time, Says HP

This entry was posted in the following categories: Entertainment, Mobility, News

There has been buzz about 3G (as in third generation cell phones that play music and video) for some time.  According to a recent article in The New York Times/ZDNet, American carriers combined have spent about $10 billion in the last three years to upgrade their networks. Verizon Wireless now offers 3G services in 181 markets, while Sprint expects to match Verizon's coverage in the coming months. Cingular uses a different 3G technology that is available in 52 cities. T-Mobile, the fourth-largest carrier, plans to introduce 3G services next year.

So the carriers are getting their ducks in a row.  Is the market ready?

HP seems to think 3G is another year away (at least in Australia). Citing barriers to market like cost of service and the technology's killer app TV and streaming video being not yet viable, HP’s APAC VP for consumer products and mobile business group, Chin-Teik SEE said, "3G is still only occupying 3 percent of the world pie. It's a nascent market."

According to an article in CNET, HP's recently launched smart phones, iPAQ rw6800 and the iPAQ hw6900, noticeably lacked 3G support. Chin-Teik also said that "the screen is too small" on a mobile phone to watch Desperate Housewives or a football or cricket match. Expensive subscription prices and tall prices for the hardware cemented the company's decision for 3G on mobiles, but 3G for notebooks gets a push from HP. The company is in talks with Australian carriers to integrate 3G into its upcoming notebook products. "This will be the next phase of notebook mobility," Chin-Teik said.

In America, "The biggest impediment is not pricing or technology, but consumer behavior," said Charles S. Golvin, an analyst at Forrester Research. "Most people still look at these things as phones."

The Royal Bank of Canada's RBC Capital Markets conducted a survey that found U.S. cellphone users don't care about watching TV or listening to music on their phones and dislike the idea of getting ads via their cellphones and mobile devices.

More than 75 percent surveyed said they aren't interested in watching TV programs or movies on a portable device, and 69 percent said they don't see themselves listening to music on their cellphones.

The survey found that 43 percent said they would be willing to pay more for a cellphone that prohibits marketing or advertising messages.

The shift to smartphones may change this mindset.  Thanks to a big marketing push by Microsoft/Palm for the Treo 700w, people are seeing more of what you can do with your handheld.  Companies like MobiTV are counting on consumers wanting their video-based media “To Go.”  This should be an interesting year for cell phone/smartphone users.

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