Last week I wrote a blog outlining why I think Google Wallet is on track http://www.abiresearch.com/research_blog/1733 . I did caution at the end of the blog that the most critical factor to Google (or any other aspiring mobile wallet solution), is flawless execution of the consumer experience. If Google (or any other aspiring mobile wallet solution) mess up in the basics – completing transactions – for instance – the early adopters who use the service will not become the all-important evangelists needed to spur further consumer adoption.
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A recent study by the AAA in the USA revealed that distracted driving was a bigger problem than ever, especially for teenage drivers. With electronic devices the number one problem, there were plenty of other causes, such as conversations with other occupants, personal grooming, and eating and drinking.
The one positive conclusion was that there was a significant improvement when an adult was present.
Now while it is not practical for adults to always accompany teenagers in their cars, telematics systems offer a range of alternatives that can have a similar beneficial effect. Some can restrict certain aspects of the vehicle such as music volume or maximum speed, and others can report on incidents such as sudden braking. In-car video systems are also available.
It is time that the safety aspects of telematics were given more attention in marketing materials. This and incentives to install ADAS would do a lot more to rectify the distracted driving epidemic than more laws banning specific activities when driving.
NTT DoCoMo's LTE Subscriber Growth Reiterates the Importance of 4G Smartphones
Mar 22, 2012 12:00:00 AM / by Admin
Everyone by now knows how important 4G smartphones are to growing 4G subscribers. But it is always good to see how imporant it is by looking at the data. In this LteWorld blog, you can see an important inflection point in subscriber growth. LTE subscribers on NTT DoCoMo's network took one year to reach 1 million, and that was with a large boost from its first LTE smartphone. It then took less than 4 months to reach 2 million LTE subscribers. The inflection point stands out. Note that the month of March is not yet finished, so while it looks like the curve is starting to flatten because the March number is lower than it will be at the end of March, this will not be the case.

Why Google Wallet Is On Track and What Google Needs To Do To Win
Mar 22, 2012 12:00:00 AM / by Admin
Over the past 8 weeks or so, it seems the media has gleefully skewered Google for their Google Wallet project and wondered aloud if Google Wallet is already doomed. They have cited personnel moves by project team members (some moved internally, two have left Google), the security problem with rooted phones, and Google’s demand that developers use Google Wallet. The latest sign prognosticators interpret as Google Wallet failure is a rumor that Google is negotiating with Verizon Wireless, AT&T and T-Mobile to potentially share revenue with them if they support Google Wallet http://bloom.bg/GLiuJt .
Leveraging Consumer Heart Rate Monitors for Sleep Tracking
Mar 19, 2012 12:00:00 AM / by Admin
HypnoCore Ltd has launched a consumer focused analysis application under the name SleepRate that highlights ongoing disintermediation between wearable devices and the applications that leverage them.
Tel Aviv based HypnoCore Ltd was founded to commercialize a sleep monitoring application for professional healthcare use. Now it is extending its application and algorithms that convert heart rate measurement into an analysis of sleep patterns for the consumer market. Consumer sleep monitoring is not new, but the SleepRate subscription service stands out as it plans to leverage existing, and more importantly third party devices, to collect and share the data. Existing approaches have tied the data analysis to their own devices or vice versa.
Sports heart rate monitors have been available for years from players such as Polar or Garmin and they are usually in chest or arm straps. The devices collect heart rate data and transmit it wirelessly to a gateway or display/storage device. There are millions of heart rate monitors being used around the world as athletes and keen sports and fitness participants look to better monitor and understand their performance. SleepRate hopes to leverage that existing user base by extending the usefulness of these devices currently used for a few hours during exercise to make them useful all night as well.
While online sports and fitness applications have been competing to provide analysis of GPS and other performance data from a range of sports devices from competing hardware vendors, existing consumer sleep monitoring offerings have seen the analysis software and the wearable device tied together in a single offering. That has companies having to seed the market with devices to make use of their monitoring algorithms or developing monitoring algorithms to improve the usefulness of their devices. SleepRate’s confidence in leveraging devices from other players is driven by the awareness that the market for wearable sports and fitness devices is set to boom as standardized wearable device connectivity is embedded in millions of new phones, device pricing declines and a wave of new applications and services come to market. Sleep monitoring is one of the many markets that will expand from a small niche as these devices become available and affordable.
Just as we have seen in countless technology markets before from the largest computer systems to mobile phones there is emerging a split between the hardware and the software that leverages it. The same disintermediation is increasingly moving to wearable wireless devices as the market increasingly supports standardized data profiles and standardized protocols to transmit that data. Delivering just the application provides SleepRate with the potential to enter the market based around its software without the need to develop and market hardware. It also brings the potential for partnering with existing and emerging device players looking to enhance the benefits and appeal of their products.
Cisco's NDS Acquisition will shake up IPTV & Multiscreen Offerings
Mar 15, 2012 12:00:00 AM / by Admin
Cisco announced a $5B acquisition of NDS Technologies. Cisco’s Videoscape platform was unveiled in early 2011, and provides technologies that enable telephone companies to deliver IPTV services, as well as help cable operators to deliver multiscreen video (TV Everywhere) technologies.
NDS is the leader in both the conditional access (content protection) and middleware markets, including DVRs, electronic program guides (EPGs) and Advanced Advertising. It serves international video service providers including DirecTV, Sky (BskyB,Sky Italia, Sky Deutschland), Cox Cable, Cablevision, Canal+, Kabel Deutschland , China Central TV (CCTV) and others. According to ABI Research, NDS is #1 in the worldwide conditional access markets, with (22% of revenues) as well as #1 in the worldwide middleware market (also with 22% of revenues). NDSnarrowlyleads both the conditional access and middleware markets, with Nagra / OpenTV a close second and other players withregional and/orplatform specific focusses.
Cisco and NDS are complementary from a technology and market platform. Cisco excels in the North American cable market and has some traction in IP video systems. NDS excels in satellite markets worldwide, and has a good footprint in cable in rapidly growing India & China. From a technology side, Cisco excels at the headend and video delivery, while NDS’s technologies are more consumer-facing.
This acquisition will create a more complete offering that that provided by other vendors and will give Cisco additional traction in IPTV and multiscreen markets.
Broadcom Adds New Set-Top Box SoCs with a lot of Performance
Mar 12, 2012 12:00:00 AM / by Admin
At CableLabs Winter Conference, Broadcom announced a few new products.
NFC Turn Out Better Than I had Hoped at MWC - But Only Just!
Mar 9, 2012 12:00:00 AM / by Admin
Speaking with the handset companies in Barcelona at MWC last week was a rather mixed bag from an NFC perspective. Some companies, notably LG, Nokia, RIM and the newly rebranded Sony were very much to the fore in demonstrating and discussing their smartphones' new contactless capabilities.
The demo from Nokia as to how a number of its new devices (including the 41MP 808 PureView) can tap to pair with speakers, open up new gaming levels, etc. demonstrated clearly and simply how NFC can - and probably will - change how we use our phones to interact with our physical surroundings.
The same can be said for Sony which is investing in Xperia-branded NFC tags which can be used with their leading handsets to change UI settings and personal preferences, e.g. in-car, at the office, at night, etc., or to access specific information and updates, e.g weather, news, travel, multimedia content, etc.
Again this highlights how NFC will change the manner in which we use our mobile devices, something that will increase over time as NFC becomes more established and ubiquitous in devices.
We're not there yet though. Myself, I counted more than 10 but less than 20 new handsets on show at the event - this excludes those already announced last year, such as RIM's flagship Bold smartphones. Some manufacturers and developers continue to appear to be behind the curve. Speaking to Motorola they had no NFC devices on display, and tablets in general don't seem to have made the leap yet - but this is no real surprise because they lack the portability of a smartphone and therefore the infrastructure and app's targeting tablets has not yet arrived.
However, on the plus side, I was pleased - and a little surprised - to see a small but growing number of low-cost NFC handstes/smartphones. One in particular which stood out was DMD Mobile's NFC Communicator, a sub-$100 Android smartphone targeting the very large pre-paid market base in Malaysia, Indonesia and local markets. Other manufacturers are looking at the $50 or less mark for NFC handsets. What will be interesting is, whilst there is a lot of deliberation still on-going in more mature markets, if it will be the emerging markets that will take the lead on NFC. They have innovated and run with mobile money over the past few years and given these developments they could now do the same with NFC. I know that I will be watching closely to see what happens once the handsets get out and developers see what they can do with NFC as an enabling platform for new services and use-cases.
AT&T’s plans to offer home automation services is an interesting move. AT&T has developed a platform that can provide a range of remote monitoring and home automation services. The new platform – dubbed Digital Life - is not for AT&T’s home US consumers but, rather, it is a wholesale offering aimed at providing non-US operators to offer web-based home automation, energy and security services.
AT&T’s Digital Life is a new software platform that the company says is customizable to enable carrier customers to develop and offer home automation management products that can manage a range of in-home devices, using a range co connectivity options. Details are few at present only that offering supports a variety of devices, such as sensors, cameras, door locks, lighting and thermostat controls and that these devices will communicate with a control center inside the home. In addition, end users will control the devices through a web-based user interface. However, specific devices and communications protocols between them are not yet defined. Neither has AT&T announced any specific home automation device partnerships at this time. AT&T says only that the services are wireless agnostic, with an open system designed for multi-country use and that it is working with various OEMs for each device category.
Digital Life builds on the technology the company acquired when it bought Xanboo in 2010. AT&T’s first forays into home automation were in partnership with Xanboo in 2006 in a largely security monitoring offering. AT&T says it has invested significant engineering resources to commercialize what we acquired from Xanboo.
At the launch of Digital Life AT&T has stressed that this new platform is only available to overseas carriers and that it has not announce plans to offer its own services using the platform in the US. However, any questions regarding a US deployment are answered with “not yet”.
AT&T rivals including Comcast, Time Warner and Verizon have launched home automation/home security offerings in the United States. By stalling its US launch but announcing this international offering AT&T keeps its name in the home automation frame. Even so, the strategy seems an unusual one. Releasing to overseas carriers first suggests a two stage release strategy that sees the customers it hopes to win acting as Guinean pigs for its own potential plans. Unusual especially as potential customers look for the product stability and security for their own investments. In this case AT&T looks to be asking other carriers provide the feedback and the learning’s it to leverage with its own product in its own territory.
Regardless of the style of announcement, AT&T’s Digital Life offering is further evidence that US telcos increasingly see potential in supporting home automation services as the technology receives another wave of interest – even if that means looking outside the US for initial customers.
First we had discovery, and now we've discovery and habit. That has been onenotable trend in the app economy over the past year or so:the growing attention to user retention and engagement.As start-up mentor and “behavior engineer” Nir Eyal explains inhis blog, the tech industry’s current top dogma, viral growth, will bring only short-livedsuccess if the company that achieves it fails to turn itself into a widespread habit.
Firms that sell consumer goods and services have always taken advantage of habitual behavior, but what is new and even exciting (I'dalso accept 'potentially creepy')is that the emergence of big dataand the increasing digitization of consumption give them much more sophisticated toolsfor doing it.Thiswidely cited articlein NY Times demonstrates rather well why this is the case.
In apps, one of the most imaginative strategies I’ve come across in this field is what is being employed by RedLynx, a game developer. The company’s iOS title 1000 Heroz hasn’t been found among the top-ranked games when we track the platform’s apps in different countries, but at the same time it has built itself a reputation of having a very loyal user base. This has been achieved through its rather unique value proposition: RedLynx enhances the game with a whole new level and a character every single day, over a period of 1,000days. The gaming experience also involves global leaderboards for each day, as well as customized leaderboards to connect and compete with friends.
Those 1,000daily updates obviously can’t offer too much variety, after all, but as an engagement strategy 1000 Heroz is nonetheless an interesting experiment. It tries to combine frequently and regularly released new content with a social dimension (leaderboards), which arguably are among the three most important qualities for an app to drive engagement. This way of doing things wouldn’t necessary work for all in all app categories (take for instance utility, medical, and navigation apps), but for lighter segments such as games and entertainment it seems like a good fit.
That third quality, then? I would agree with findings by MTV Networks in that ease of use, or accessibility, is still the most decisive one. The window of opportunity to convert an app downloader to a frequent user is notably small, and apps that don’t feel accessible on the first try are seldom given a second chance, let alone a third. This means that in the app business less is normally more. The apps that really impress usually don’t do many tricks, but the ones that they do, they do remarkably well.