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Annual Trade Show
Date: Mar 17, 2005
Contributor: Serena Fear
Cellular industry sees new calling
The cellular telephone industry's largest annual trade show marks the beginning of a frontier: multimedia.
It's an event dominated with names not usually associated with cell phones, such as Sean "P. Diddy" Combs, the hip-hop performer and producer, and Paris Hilton, the hotel heiress and star of a reality TV show.
For two decades, cell phones have been all about making calls. But now, the three-day cellular gathering in New Orleans enters an era in which cell phones are redefined as mini TVs, handheld video game players and music devices.
"We're seeing wireless become the third screen," said Jeff Kagan, an independent telecom analyst.
"Wireless has been around for about 20 years, and it's mostly been about voice," he said. "We've been talking forever about the other leg, the other services that are going to be available to customers, but they've been limited until this year.
"Right about now is when wireless is expanding into new business areas, and the voice part of the business, even though it's the most important part of the business, is only a part of the business."
More than 30,000 people from around the world are attending this week's trade show, held by CTIA-The Wireless Association (formerly the Cellular & Telecommunications Industry Association).
The annual show, which ends today, gives companies a chance to demonstrate new technologies in the wireless industry. Booths stretch for three-quarters of a mile inside the Morial Convention Center in New Orleans. Dozens of San Diego County companies are represented.
"I would say this year is the multimedia year," said Paul Jacobs, who was appointed last week to replace his father, Irwin Jacobs, as chief executive of San Diego technology giant Qualcomm.
Paul Jacobs' point was underscored by the appearance of Combs, who stopped by Qualcomm's booth Monday for a demonstration of MediaFlo, the company's technology that will broadcast video on cell phones. Qualcomm had just the right demo: a music video of Combs and Mary J. Blige singing "Love at First Sight."
The shift toward video, 3-D video games and music on cell phones is the result of cellular companies deploying new networks capable of transmitting data at higher speeds. In addition, carriers hope to make more money by offering subscribers extra features.
"What's happening in the industry in general is that in the voice part of the business, the revenues per user are going down," Jacobs said. "So now that you can offer all of these data services, whether it's images, or position location or games or ring tones, the operators are starting to see growth in that part of their business. They want to use these services to drive revenue."
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