The UK Mobile Report

Apple, RIM, ZTE enter the big league

Apple has become one of the big ten mobile phone manufacturers in less than a year, according to research from Gartner.

Apple, RIM (makers of the BlackBerry) and China-based ZTE, are the new entrants to the list of the top ten largest manufacturers during 2007.

The year saw a 16 per cent year on year increase in sales to 1.15 billion sales globally.

Nokia remains the market leader, followed by Motorola, Samsung, Sony Ericsson, and LG. Though in the fourth quarter Samsung took Motorola's second place spot.

The big question for this year is who will buy Motorola's mobile phone business - reportedly up for sale. ZTE and Sony Ericsson are tipped as most likely.

No third runway?

I can't help thinking mobile phones make headline-grabbing protests easier to co-ordinate and manage. Today we saw protesters give media interviews from the roof of the Houses of Parliament. They even discussed ceasing their protest with the police via their phones.

How very civilised.

Love them or hate them, the group of protesters who parked themselves on the roof have raised some important questions today:

• Is a third runway at Heathrow really necessary?
• Does it conflict with our carbon emission targets?
• How can the security at the House be so weak?
• What is the appropriate punishment for such a demonstrator - if any?

I attended the 'No Third Runway' rally on Monday at Westminster Hall which was organised by long-time anti-Heathrow group, HACAN, which involved scores of speakers joined in opposition to the third runway. There now seems to be a large alliance of anti-groups, but what chance do they have against the might of the bulk of Labour MPs and British Airports Authority?

Activists say the third runway is a pivotal issue for environmentalists and talk of a 'line in the sand'. Plane Stupid, the radical protest group behind today's protest says it is willing to lie in from of earth movers if it ever comes to that. Ealing, Hillingdon and Hounslow councils are united against the plan.

What is interesting is that the runway can be opposed on so many fronts:

• farcical consultation process
• bad for the environment
• increasing risks to millions of Londoners from plane crashes
• increasing bad health effects
• the destruction of an old village and 1,000 homes
• noise pollution to hundreds of schools and homes
• need to combat global warming through reduced use of air travel
• lack of investment in rail networks

In it's turn BAA says that the expansion is needed because:

• current provision is woeful
• airplanes are becoming quieter and less polluting
• jobs are at stake
• new jobs will be created

But the big question facing all those sitting on the fence is a fundamental one of our times: Can we believe big business when it comes to saving the planet? Would it really expand if it believed that the impact would be negative for the planet? Is big business that cynical? And if so what shall we do about it?  Businesses are aware of ethics and green issues these days but when green issues act as a barrier to growth what are they supposed to do? They can ignore this dilemma at their peril. Or ours.

Liscio phone targets second phone market

Leave your iPhone at home

UK-based mobile manufacturer Onyx has launched Liscio, a small but stylish phone aimed unusually at those wanting a second phone.

Perhaps ideal if you have a chunky smartphone and a need a second phone that is easier to slip into a jeans pocket when out and about.

The phone is being sold off contract for £129.99 from www.onyx-innovation.com and will take any UK SIM.

It's a Tri-band phone weighing only 60 grams.

Companies House system down

Companies House has warned of its online services being down, in an email sent out to users today. It warns of the system being down between last Friday and today. However the email appears to have only been sent today and dated 18th February. Here's the email:

From: Companies House

Date: Mon, 18 Feb 2008

Subject: Temporary Closure of Companies House Services To: Companies House

Dear customer,

Important Notice regarding Companies House Processing Functions and the Temporary Suspension of Services

We are now approaching the implementation of the Companies House Information Processing System.  This is a new system that will replace our old mainframe computer and give us more flexibility to develop our services in the future.

This is a major change for us.  Our aim is to keep disruption to our services to a minimum.  However, there is essential work that we need to do between Friday 22nd and Monday 25th February 2008, inclusive. As a result our services will be affected during the period.  Visit http://www.companieshouse.gov.uk/about/chips1.shtml for details

Five things you don't know

Online property broker Rightmove has 4 million unique visitors, and a massive 550 million page views and 27 million visits per month.

The typical battery life of the MacBook Air is two hours rather than the five advertised, according to comments given in Apple Forums. Recharge time for the Air is eight to ten hours.

Media buyers told New Meda Age magazine that the advert funded mobile service aimed at teens, Blyk had only signed up 30,000 subscribers. Blyk said it was well on target to 100,000.

Boffins at Nothampton University say that a third of us are addicted to tech.

We  spent £4.5 billion online last month.

iPod Shuffles: are they giving them away?

Apple has announced that it is selling iPod Shuffles for £32, the cheapest price yet for an iPod.

What is Apple up to?

This is a well-known technique for turning the whole world into iPod users, based on what is known as 'versioning'.

Versioning is the business practice of having a number of levels at which customers can buy in at. Three is normal but this model is so successful that it often increases to 5,6 or more versions.

The technique plays on basic psychology that is summed up by the shampoo ad that tells you 'You are worth it'.

Apple ensures that its top range iPod is the sexiest thing since mobile music began, and then sets about luring in new punters by selling them cheapo versions, knowing full well that their personal self-image will drive them on to the most expensive version just as soon as they can afford it along the lines of:

"I own an Shuffle, but really I'm more an iPod Touch kind of person."

Apple knows there is an opportunity cost for a new buyer. Namely the hassle and risk of learning to use the hardware and the software. It also knows that it is better to get the buyer over this hurdle at low cost. That way there is little extra effort when they trade ever upward.

The top Five things I hate about mobiles

It's time for a rant. Five things I hate about mobiles:

1. The stupid sounds they make when you switch them on

2. The off switch - rarely easy to use

3. The totally unmemorable model names

4. The lack of memory as standard

5. The nerdy operating systems - you see better on kid's toys

Dave Pritchard, Fujitsu Siemens

I just met Dave Pritchard, senior technology strategist, Fujitsu Siemens.

He's got one of those jobs that seems to span basic stuff like talking to the sales channel, all the way  up to dreaming up future technology ideas.

As we sat in the swanky Lombard Street Brasserie, right opposite the Bank of England, I had half an ear on nearby tables hoping to hear some gossip about the great Northern Rock fiasco, or failing that, was hoping to get a glimpse of the odd banker jumping out of a window across the street.

Dave did a good job of distracting me with some Star Trek fueled ideas.

Such as: "It won't be long before we are all wearing implants. It makes sense when you think about it. We could have brain implants that link us to expert systems - why not?" or how about "Computers won't need keyboards or mouses soon. We will be able to do what we want using voice recognition. I can already do it at a basic level in my car."

I don't really want to talk to my computer, I certainly don't want an implant, but in a Bladerunnerish kind of way, I naturally can't disagree with him. I look around the room for hidden cameras, and signs of the surveillance society, but instead am faced by a sprightly sommelier. We go for a full-bodied Rioja.

I get down to business over a hot plate of dover sole, while he tucks into duck. And yes, the plate is hot, the food is hot, that's how a good restaurant does these things (sorry rant over.)

So what's really going on Dave? He reveals an ongoing row between Fujitsu and the mobile operators: "That is the real barrier. It is still too expensive to work on the move. The data rates are too high. "The only change will come when they realise it's holding up the market. We envisage firms arming up their mobile workers with thin clients, but it's not feasible yet.

I have a friend who was charged £18,000 for downloading TV programmes when he was on a business trip"

£18,000? What was he watching? Never mind.

Dave feels better about the prospects for Wimax and hopes for some kind of 'third way' wherby Tesco or similar will rock the boat by getting into Wimax in a big way. He also says the company is well on track on all things WEEE (the niggly European directive that forces IT firms to get their green act together):

"We will have 99 per cent recyclable within three years." Everyone says this, but does he really believe it. He admits that once old stock is handed on to recyclers it's out of their hands and probably on it's way to China: "At a certain point you have to trust them to get on with it - of course it's not ideal."

So what about the M-word, MARGINS Dave? "Yes, they are getting squeezed, but no, I don't think sales in the High Street are going to disappear. There are the likes of Asus (with subnotebooks at £199) but we don't think they offer the quality and support that customers need."

I then aim to chastise Dave with indirect talk of the Apple MacBook Air and its discless offering, but it falls on deaf ears: "It really isn't a solution to offer a laptop without an optical drive. It doesn't save much space or cost." So what about Dell? Still a good competitor? "Not really. Look at their web site, they are selling rubbish bins now. What is that all about?"

I suggest that maybe there is a good margin in rubbish bins - but am understandably ignored. He confirms that Dell is on the hunt for resellers: "They are approaching some of our distributors, so what does that say about their direct model of business?" We're onto the crumble pudding now, but Dave is still going strong on a couple of other hot topics: "We have to start addressing the vast amount of data being collected in the homes (presumably not in rubbish bins), and the role of the datacentre in business."

I'm a bit busy tucking in, but I get the point: Firms need to think more about automating datacentres and consumers need to buy kit that stores data well. Or alternatively perhaps there is a services angle for Fujitsu here? It's not a very cheery message because unmanned datacentres mean less jobs for IT staffers - that one's aimed at the board-level thinking no doubt.

Time's up. I want to hear more about implants that will turn my brain into a Cray supercomputer shaped like a sponge. I dream of retaking my A levels and going to Harvard and working on the next generation of implants. But I was born too late, or too early or something. Maybe I have just had too much Rioja.

We are among the last to leave. These bankers don't seem to linger over lunch these days. Maybe they would if they had thin mobile cients, or unmanned data centres, or if the banking system wasn't on its knees begging for forgiveness.

Nokia's Regent Street store

Retail space is the new black, but it must be costing Nokia a small fortune

Today I decided to check out the new Nokia store in London's posh Regent street.

It's directly opposite the very popular Apple store and thematically looks similar: it feels spacious, and futuristic in a Ridley Scott kind of way. But in total size it's much smaller than Apple's. About a third of the width, but it also has a second floor - though only for customer support.

Naturally there are phones everywhere as well as a few accessories, and loads and loads of staff. I counted about twelve staffers and three security guys looking after about 25 customers. Compare that to about 25 staff and 250 punters across the road at Apple's shop. They have even shipped over two staffers from the New York store.

I was there to buy a connect cable and a MicroSD card. My experience wasn't that good. Firstly they didn't have the card in stock, then they sold me the cable at the wrong price - £28 instead of £21. When I spotted this the female staffer had to fiddle around on the checkout machine for about ten minutes as well as make a call to a superior to fix the problem.

I have to say she was really polite, but as the shop has been open for a week already I would have thought that they had sussed out the cash machines by now.

After that I got chatting with a very helpful sales guy. 'No,' he told me they don't know when they are getting any of the kit just announced in Barcelona (notably the N96) and 'no' there are no plans to have a tripod socket or the like in some of the high end phones to make it easier to hold them while filming. However he was able to show me a tripod which uses a small vice to hold onto the phone - it looks ugly as hell and they don't have any in stock - but I suppose it's better than nothing.

Footnote: They had a live link to the Nokia press conference last week, so in future it may be the place to go to watch such events live. Maybe they even crack open a few bottles of bubbly.

Verdict: Friendly staff still grappling with the payment systems. Accessory stock a bit on the low side bearing in mind this is a flagship store.

Opinion: Craig Massey, Glass Partnership

Craig Massey sees a world in which adverts talk to you and communicate via Bluetooth. In fact it's already here....

Picture this.

You grab ten minutes of relative calm with a mid-morning cappuccino while your other half battles it out in the heaving shopping mall. Suddenly you spot a futuristic looking ‘pod’ with plasma screen.

 

On screen appears dynamic footage of the new Audi TTS roadster. Just then an attractive avatar pops up speaking directly to you.  She prompts you to take out your phone and switch on Bluetooth.

You think 'why not?' and switch it on. 

 

A connection is made with Audi and a form is sent to your handset requesting: Name, Postcode, Mobile Number and preferred Date of Test Drive. Baffled, you enter the information and press send.

 

Within seconds the name of your nearest dealer is Bluetoothed back to your mobile, together with a choice of times to book a test drive. You click on the desired time and press send.

 

A full colour digital invitation card is sent to your handset with the dealer contact details, the agreed times and promises to send reminder text messages.

 

All this, before you’ve had chance to tuck into your pain-au-chocolate, and it hasn’t cost a single penny in network charges.

Science Fiction? Well actually no.

 

At the British International Motor Show, ExCel, in London in July, we will see pioneering use of Bluetooth ‘Digital Download Stations’ (DDS). Each station can simultaneously interact with up to 53 mobiles and will be used by vehicle manufactures to provide exclusive mobile content free of charge including video clips, wallpapers, pod casts and audio files.

 

When sited in busy areas, these stations are ideal for providing free entertaining content to keep visitors amused. And as they are all controlled from a web-based system, they can be simultaneously switched to broadcast specific show announcements.

 

At major venues like this - around 800 events a year, 60,000 exhibitors and up to 15 million visitors - Bluetooth is a great way to offer one-to-one interaction and information that users genuinely want without the expense of sales people.

 

Craig Massey, Head of Mobile, Glass Partnership

craig.massey@glasspartnership.co.uk

www.glasspartnership.co.uk