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Qualcomm and Teleepoch Enter Into a 3G CDMA Subscriber Unit License Agreement, October 6, 2007 MTN chooses Cambridge Broadband Networks for multi-service wireless network in Rwanda, October 6, 2007 Brazilian government to publish 3G bidding rules soon, October 6, 2007 KTF 3G service suffers from technical problems, October 6, 2007 Argentina’s Personal lunches 3G service in Rosario, October 6, 2007 Russia has it's first 3G network, October 6, 2007 AT&T could drop Alcatel-Lucent as 3G mobile network supplier, October 6, 2007 Enea Extends License Agreement with ZTE for 3G Handsets, October 2, 2007 LG to unveil premium handsets in Brazil, October 2, 2007 KTF 3G subscribers doubled in less than 3 months, October 2, 2007 3G policy in India will be non-uniform, October 2, 2007
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 NEC e606 in action |
The future for cameraphones is bright and serious incremental revenues may be realized if wireless operators commit to understanding and addressing subscriber wants and needs in terms of hardware and services. According to a new forecast from IDC, the number of cameraphones will continue to climb, with worldwide shipments increasing from 19 million in 2002 to 298 million in 2007. But the success of related digital image services hinges on user satisfaction.
According to IDC survey results, 44% of respondents planning to purchase a cameraphone in the next six months would be willing to pay more than $21 per month (in addition to their standard service charge) for the ability to send and receive images over their mobile phone. However, history shows that one-third of current subscribers stop taking advantage of this functionality in just a few months. Increasing user satisfaction to stabilize retention rates is critical for the long-term success of the cameraphone market.
"Operators and device vendors are beginning to recognize the importance of lowering the barriers to cameraphone adoption and usage for subscribers," said Chris Chute, senior analyst, Digital Imaging Solutions and Services at IDC. "Everyone wants to grow their revenue streams, but if prices are high and subscribers aren't compelled by the offerings – either service or hardware – they'll quickly lose interest."
Vendors are doing their part to address these roadblocks by developing easy-to-use cameraphones that require a minimal number of button taps to capture and transmit photos. They're also entering into partnerships with operators, such as the recent Nokia, T-Mobile, and Amazon partnership, which effectively allowed new subscribers to obtain a new cameraphone at no cost. On the operator side, low-cost/no-cost image transmission services are being offered to new subscribers on a limited-time basis to encourage early adoption among users.
“Given the potential benefits of cameraphones to end-users, device vendors, and wireless operators, we expect digital capture technology to quickly become a standard feature within most mobile devices,” said Alex Slawsby, IDC Mobile Devices analyst. “Although an increasing number of subscribers will own mobile devices with digital capture technology – regardless of whether or not they sought such capability – success or failure of digital imaging services will depend on end-user education and efforts to remove barriers-to-adoption.”
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