Every Digital Mobile Handset Java Enabled by 2006

by Steve Anglin

This originally published as a press release issued by ARC Group (www.arcgroup.com), which publishes in-depth strategic reports and provides consultancy on wireless internet, wireless technologies and
infrastructure, digital broadcasting, broadband access, telematics and
optical communications.

All digital mobile handsets manufactured in five years time will be capable
of running wireless Java applications, according to a new industry report.
Java will reinvigorate lacklustre handset sales around the world in the
medium term and will ultimately prove to be an important step along the road
to 3G. These are the findings of a new study entitled Wireless Java: Handset
& Application Revenue Streams from industry analysts ARC Group

ARC Group predicts that by 2003, 421 million handsets will be Java enabled.
Such rapid growth will continue until Java becomes ubiquitous in 2006, with
over 1 billion handsets incorporating the technology around the world.

Java Handsets, 2001-2006
Milions (Units) 2001 - 2004 - 2006

World Total 489.5 - 841.9 - 1101.0

Source: ARC Group

Report author, Steven Hartley says, "The chief driver for such rapid
adoption of Java in mobile devices is the broad industry support currently
enjoyed by the technology. Every player along the value chain is embracing
the technology and realises the potential of Java to aid the migration to
3G. However, to benefit from Java all members of the wireless Java value
chain must appreciate the advantages it brings to the end user. For example,
operators and content providers can only benefit from increased data traffic
and download revenues if users are willing to pay for them. Handset
manufacturers will need to ensure that their devices are easily personalised
and support increased data usage through the addition of such features as
larger, colour displays."

In Japan, almost 8 million NTT DoCoMo subscribers have already upgraded
their handsets since January 2001 to take advantage of the new i-appli Java
service. As Java handsets become available to the mass market, first in
Europe and then around the world, such success will be replicated over the
next two years and will provide a significant boost to currently stalling
handset sales.

Java will provide a significant boost to mobile data service usage, with the
most powerful applications leveraging the end to end security enabled by
Java in the SIM card, handset and server. Entertainment applications
utilising the enhanced graphical capabilities and over the air downloads of
Java will prove to be the most popular globally until 2004, emphasising the
phenomenal success of Java games among current wireless subscribers in Korea
and Japan.

ARC Group forecasts 442 million Java entertainment users globally in 2004,
but thereafter location based services will become the most widely used Java
applications. Location based services are set to become an integral part of
mobile Java services and utilise the offline functionality and interactivity
of Java. The result will be over 1.1 billion mobile data users exploiting
Java for location based services in 2006.

Wireless Java: Handset & Application Revenue Streams looks at the rapid
emergence of Java as a leading wireless application technology and assesses
its potential across a number of key areas:

* Maximising Java revenue streams for operators, handset manufacturers
and application developers

* Implications of implementing wireless Java in the handset

* Comprehensive market forecasts by technology and region to 2006
including Java handsets and Java application users by type

* Leading Java handset vendors and service providers in the future

* Case studies from current Java services in Asia and North America,
including NTT DoCoMo and Nextel

* Java deployment timelines and strategies by operators and service
providers worldwide

* ...and much more

For more information about this report, contact Alex Noonoo on +44 (0) 1483
571 589 or email alex.noonoo@arcgroup.com

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