Mobile Market Insights 2006 New growth opportunities for the wireless industry.

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1 Mobile Market Insights 2006 New growth opportunities for the wireless industry

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3 Mobile Market Insights 2006 New growth opportunities for the wireless industry by Berg Insight

4 BERG INSIGHT EDITING TEAM Tobias Ryberg, Senior Analyst Johan Fagerberg, Senior Analyst OFFICE Viktoriagatan 3 S Gothenburg Sweden CUSTOMER SERVICE Phone: (46) info@berginsight.com Web: Printed in Sweden in 2006 ABOUT THE COMPANY Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers. Berg Insight has its headquarters in Gothenburg, Sweden and has over 150 clients in more than 30 countries worldwide. A SELECTION OF OUR CLIENTS Accenture, Alcatel, AT Kearney, Bouygues Telecom, BT, DaimlerChrysler, E.ON, Ericsson, Eurotel Praha, IBM, Lucent, Motorola, MTC, MTS, NEC, Nokia, O 2, Qualcomm, Securitas, Sharp, Siemens, Singapore Telecom, SK Telecom, Sony Ericsson, Swisscom, Telenor, TeliaSonera, T- Mobile, Vodafone, Volvo Copyright 2006 Berg Insight, All rights reserved

5 2006 BERG INSIGHT A word from the CEO Berg Insight looks forward to delivering top class analysis in 2006 Dear reader, We are proud to present you with your copy of Mobile Market Insights 2006 where we present our view of what we believe will be some of the most significant developments in our industry during this year. From our location in Gothenburg, Sweden, we believe ourselves able to offer a unique perspective on the global wireless market. We are a European company and always put our own continent in the centre of our research, but at the same time we are most careful not to lose touch with global market conditions. Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers. During 2005 we provided analytical services to around 150 clients in more than 30 countries on four continents. Our customers range from many of the world s largest mobile operators, IT companies and telecom vendors, to venture capitalists, technology start-ups and specialist consultants. During 2006 we will continue to expand our product portfolio to cover additional areas. At the same time we are planning to invest even more resources in our existing research programmes covering wireless M2M and LBS. A complete listing of our current and forthcoming reports can be found at the end of this publication. Johan Fagerberg, CEO 1

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7 2006 BERG INSIGHT Device trends Beyond handsets what should the mobile industry connect next? Over the last decade the mobile industry has accomplished an enormous feat on the European market. Nearly 560 million active mobile subscriptions at the end of 2005 is a figure that speaks for itself. Worldwide, mobile communication has improved the lives of billions of people. But with a market penetration of 85 percent in Europe, it would seem as if the growth potential is nearing its end. Fifteen countries have already reached penetration figures of 100 percent and there are only eight with less than 60 percent. Increasingly fierce competition is putting operating margins under pressure. There appears to be much tougher times ahead with rapidly maturing market conditions. Luckily, handsets are not the only type of devices that can be connected to mobile networks. Different types of machines and notebook computers are the next candidates to receive mobile communication capabilities. Developments have already begun, taking the industry in a radically new direction with three quarters of a billion new devices to connect. Figure 1: Key growth segments for mobile communication in Europe (Million units 2006) Utility meters Vehicles Notebooks

8 BERG INSIGHT 2006 The rise of the machines Far away from the limelight, millions of machines already use wireless communication. Developments began already in the 1980s with analogue wireless data technologies such as Mobitex and later Paknet. Well proven functionality, excellent coverage and very high resilience contribute to keeping these early technologies in use even today. Wireless machine to machine communication did however not take off in earnest until the mass market adoption of GSM and GPRS technology enabled production of low cost wireless data modules. Unit prices lower than 50 per module in high quantities now makes it possible to integrate standardised mobile communication technology in a wide range of industrial products. Machine to machine, or M2M, has for many years been recognised as an enormous growth market for data communication. More or less fantastic visions have predicted tens of billions of devices communicating over the Internet just a few years ahead in time. Even though most were grossly exaggerated, they always had a grain of truth in them. All these billions of devices could in fact be networked some fine day in the future. But getting there will take considerably more time than it took for half a billion Europeans to get mobile phones. Decades, not years, is the most reasonable timescale. Still there is no need for anyone in the telecom industry to despair. Currently around 700 million devices in Europe are within reach of wireless M2M technology. This means that solutions for connecting these devices to mobile networks are commercially available on the market and have been rolled out in large scale deployments. About 400 million utility meters and 250 million vehicles are the primary market segments. In a not so distant future when most person to person communication has migrated to 3G networks, GSM/GPRS networks could very well be predominantly used by hundreds of millions of machines. Utility meter reading the key application for wireless M2M Utility meters as it turns out, comprise the majority of the target market for wireless M2M. There are approximately 400 million electricity, electricity, gas, heat and water meters in the EU, which could potentially be covered by automated meter reading (AMR). Until recently they were all read manually, often at very long intervals. Consumers have therefore been 4

9 2006 BERG INSIGHT accustomed to having their energy bills based on preliminary consumptions. For various reasons, this practice is however becoming outdated. Instead a growing number of energy companies are looking to automate the meter reading process using M2M communication. Lately, GPRS has emerged as a leading technology in this field in competition with power line carrier (PLC). In the short term, energy bills based on actual consumption is the main benefit with AMR. The recent liberalisation of the EU electricity markets has created competitive market environments where the ability to charge customers for what they are actually using is an advantage. Moreover, remote monitoring facilitates new business models such as prepaid metering and time-of-use pricing. But besides improving market efficiency, AMR can contribute to resolving other more urgent energy issues. Continuous monitoring of energy consumption enables utilities to optimise their distribution networks and minimise power losses. Many governments also hope that immediate financial benefits will promote energy conservation in a time of soaring oil prices and concerns over carbon dioxide emissions. The Swedish government has already come to the conclusion that AMR is an essential component of a sustainable energy system. How Sweden ignited the European AMR market Sweden is one of the countries in the EU that is most highly dependent on electric energy. The average electricity consumption is 16,000 kwh per capita, over twice as much as in France or Germany. With an economy that is to a large extent based on the availability of inexpensive energy, Sweden needs to ensure the long term supply of electric power. Having developed most of the abundant hydroelectric resources in the country and rejected further development of nuclear power, energy conservation is given high priority by the Swedish government. Following an investigation by the Swedish Energy Authority in 2002, which concluded that energy bills based on actual consumption would reduce power consumption and benefit the national economy, a bill was passed by the Swedish parliament calling for monthly readings of all electricity meters from The power network operators in Sweden will need to install 5.2 million new meters with communication capabilities in order to comply with the new regulations. 5

10 BERG INSIGHT 2006 At the time when the new regulation was approved by the Swedish parliament, mobile communication solutions for mass market AMR were not yet commercially available. Many utilities were using GSM for automated reading of industrial meters, but found both equipment and communication costs were too high to justify large scale deployments. Instead early contracts were awarded to vendors offering solutions based on PLC or unlicensed RF communication. These however frequently use GSM/GPRS as backhaul between network hubs and the utility data centre. Breakthrough for GPRS communication in AMR solutions While GPRS struggled to gain foothold on the Swedish market, the technology accomplished its first major breakthrough in Finland in late The Finnish branch of the Swedish state owned energy group Vattenfall had decided that it too would introduce AMR, for purely commercial reasons since no mandatory requirements for frequent meter readings have been announced in Finland. Vattenfall teamed up with TeliaSonera Finland and awarded the telecom group with a contract worth 100 million to collect meter readings for 350,000 network customers over GPRS during a period of 15 years. Denmark s largest power utility NESA also announced plans to implement an AMR system based on GPRS covering 530,000 network customers by Thus the AMR snowball had come in motion in the whole of the Nordic region. Since 2004 major AMR contracts have been announced regularly in Denmark, Finland and Norway as well as in Sweden. The first major order of a GPRS based AMR solution in Sweden was awarded by a power utility in the Stockholm region to the international meter manufacturer Actaris in the middle of Actaris is providing GPRS solutions for AMR in partnership with Vodafone on the Swedish market. In December 2005, E.ON Sweden announced the largest all-gprs AMR contract in the country so far. TietoEnator and Telenor Cinclus, an AMR solution provider in the Telenor Group, will supply the energy group with 140,000 meters for deployment in southern Sweden. The abovementioned projects alone will generate a total of 1 million new GPRS connections in a region with no more than 24 million inhabitants. 6

11 2006 BERG INSIGHT Figure 2: NESA Smart Read GPRS electricity meter Source: NESA Developments in the Nordic region are being closely watched by energy companies across Europe. Much attention is also paid to an even larger project in Italy, where the domestic energy giant Enel is about to put a nationwide AMR system covering 27 million customers into operation. Enel is using PLC technology with GSM/GPRS backhaul, a system design which is widely used in the Nordic region as well. GPRS and PLC each have their own distinctive advantages and neither is likely to drive the other out of the competition. With continuing growth on the European market and hundreds of millions of offline meters there will be plenty room for both. 7

12 BERG INSIGHT 2006 Regulatory initiatives drive the vehicle telematics market Vehicles constitute the second largest target market for wireless M2M. With satellites being the only alternative to mobile networks, competition from other technologies in this field is very limited. Around 220 million passenger cars and 30 million commercial vehicles are registered in the EU member states, of which most currently lack mobile communication capabilities. A host of applications are however driving up mobile penetration in this segment. These include fleet management, vehicle tracking, traffic safety and electronic road charging. Commercial vehicle segment Fleet management has developed much slower than expected when the first offerings were launched on the market several years ago. Even today, Europe s two leading heavy truck manufacturers DaimlerChrysler and Volvo together only have 50,000 trucks connected to their fleet management systems FleetBoard and Dynafleet. Instead the largest telematics application on the European continent is found in Germany. Faced with increasing investment costs needed to support the tepid growth in the volume of freight transport in the country, the federal government in Germany decided to introduce an electronic distance based truck toll for all heavy commercial vehicles with a permissible total weight of 12 tonnes or more. The contract to develop and operate the system was awarded to Toll Collect a joint venture between DaimlerChrysler, Deutsche Telecom and Cofiroute. After a long series of delays, Toll Collect was finally put into operation in January During the first year of operation it generated in excess of 2 billion in toll revenue to the German federal government. Toll Collect s automatic logon system is based on a combination of GSM communication and satellite positioning. The main element of the automatic logon system is the On-Board Unit or OBU, which uses satellite signals to determine the truck's position and distance travelled, automatically calculates the amount of toll, and transmits this information to the Toll Collect computer centre over GSM. As an alternative, Toll Collect offers the option of manual log-on at a toll station terminal or over the Internet. This type of log-on is particularly suited to trucks that seldom use German motorways, such as foreign drivers and companies. At the end of 2005 over 730,000 trucks were registered on the Toll Collect system and 480,000 had installed OBUs. Thus, nearly half a million wireless devices are now deployed for the purpose of tax collection in the very heart of Europe. 8

13 2006 BERG INSIGHT Figure 3: Toll Collect system overview Source: Toll Collect 9

14 BERG INSIGHT 2006 Passenger car segment Passenger car telematics has started off even slower than the commercial vehicles market. Navigation is the most popular application, but most in-vehicle navigation systems receive dynamic information over the RDS-TMC broadcasting channel. Tracking and stolen vehicle recovery systems are also becoming increasingly common in the premium car segment. Offerings appealing to the mass market are however nowhere to be seen. This could change in a few years time. The European Commission has proposed a pan-european automatic emergency call system. The ecall system will require an on-board integrated mobile communications and satellite positioning unit to be designed into all new vehicles sold in the EU. When activated, the unit will contact a PSAP (Public Safety Answering Point) by calling the common European emergency number 112. It will be possible to initiate the emergency call service both manually and automatically; the latter triggered by a crash sensor, a released airbag or seatbelt pretentioners. Besides providing the vehicle s position, the system will also establish a voice connection with the emergency operator so that the situation can be properly evaluated. If needed, including if no response is received, emergency service can be sent to the right location at once and valuable time can be saved. Manually initiated emergency calls can provide the user with emergency support in case of an accident as well as other situations like assault. The European Commission has set 2009 as the preliminary target date for the launch of ecall. However a few years later appears as a more realistic timeline. Many things must fall into place before such an initiative can be realised throughout all EU member states. Even though the project is officially backed by the European automotive industry organisation ACEA, there will most likely to be concerns about the costs for realising ecall. Car manufacturers may find it difficult to cope with adding the cost of a telematics unit to the bill of material of to each of the 15 million cars sold in the EU annually. Nomadic solutions utilising the driver s handset are therefore being considered for inexpensive models in order to keep costs down. Nevertheless, ecall could very well become the mobile communications platform that unfolds the European market for automotive telematics services in passenger cars. 10

15 2006 BERG INSIGHT Notebooks get online with mobile broadband services Utility meters, truck monitoring devices and road safety systems are not visible elements of most people s everyday lives. Notebook computers on the other hand are just that, as they become increasingly popular in both enterprises and among consumers. Worldwide shipments of notebooks soared during 2005 and portables have now surpassed desktops in most major markets. Around 50 million notebooks are currently in use in Europe and by 2009 the figure is forecasted to reach 120 million units. All these computers obviously require Internet connectivity. Mobile broadband based on 3G technology makes this easier than ever before. Improved network speeds of 1 Mbps or more achieved with HSDPA allow mobile operators to offer wireless broadband services that compete directly with DSL both in terms of price and performance. Future upgrades promise peak data rates of 7.2 Mbps, more than what is available from most DSL operators. Figure 4: Globetrotter HSDPA PC card and embedded HSDPA data module Source: Option Mobile broadband has been instrumental for 3G right from the start. PC cards for data communication were the first UMTS products that were launched on the European market by leading operators such as T-Mobile and Vodafone. As operators now introduce HSDPA, PC cards are once again in focus. Data terminals were the first devices available from early adopters of the technology such as Cingular Wireless, O 2 /Manx Telecom and A1. Leading notebook vendors will also integrate HSDPA in some of their models in partnership with mobile operators on select markets. Fujitsu Siemens and T-Mobile announced a joint HSDPA 11

16 BERG INSIGHT 2006 offering for the German market in January They were shortly followed by Dell and Vodafone/SFR who will target France, Germany and the UK. More vendors and operators are expected to follow with similar offerings and notebooks with embedded HSDPA will become commercially available on major European markets during the second half of Demand for mobile broadband services is clearly booming on the European market. The leading 3G data card vendors Option and Novatel Wireless consistently reported record sales throughout the year of Vodafone saw the number of subscribers using the Mobile Connect Card 3G service more than triple from 170,000 users in Q to 579,000 users in Q T-Mobile is currently number two on the European mobile broadband market but expects to ship at least 300,000 HSDPA data cards in In Germany, T-Mobile will respond to consumer oriented offerings by Vodafone and O 2 enabling customers to replace fixed line voice and data communication with mobile services. O 2 surf@home and Vodafone Zuhause Web provide Internet access at home through a Wi-Fi router that communicates over the 3G network. Similar offerings are also available from the 3G operators in Portugal. Optimus, TMN and Vodafone offer discount 3G packages including 10 GB of data for only between 25 and 30 per month. 12

17 2006 BERG INSIGHT Service trends Entertainment accelerate growth, mobile navigation services will take off Value added services are widely hailed as the next growth area for the mobile industry. A major shift from voice to data as the main revenue source has been predicted for many years. Surely data revenues have increased, but not as quickly as anticipated. As evidence accumulates that voice revenues are nearing their peak, the search for alternative sources of income becomes most urgent. Fortunately mobile entertainment services are growing at an accelerating speed. Moreover location based services such as mobile navigation pick up more and more business. Happy tunes from the mobile entertainment market Mobile entertainment is going to be a serious business with happy overtones in Market growth in Western Europe is expected to exceed 50 percent, with the total market value reaching 13 billion. Games, sports, music, multimedia downloads and content messaging will be the leading services, while mobile television is going to remain in pre-commercial trials. By 2012, the mobile entertainment market could be worth 32 billion, with games being the leading content category. Sports constantly ranks as one of the most attractive mobile content categories among consumers. FIFA World Cup 2006 in Germany is going to be the main sporting event of the year, watched by billions of football fans around the world. Coverage of the tournament in the mobile media channel is expected to be more extensive than ever before. Millions of people will have the opportunity to receive live scoring reports, news alerts and match highlights in their mobile phones. Four years ago when the event was co-hosted by Japan and South Korea, Telia Mobile s mobile portal Halebop used the opportunity to evaluate MMS in Sweden. This time mobile television and streaming media will be the main formats. 13

18 BERG INSIGHT 2006 Figure 5: 3Player by 3 Sweden and Mobile Jukebox by T-Mobile Germany Source: 3 Scandinavia and T-Mobile Germany Music is another key segment for mobile entertainment services. Ringtones was the first commodity to be distributed through the mobile media channel and blessed the wireless industry with a head start on the digital music market. While music retailers watched in despair as the file sharing plague swept across the world, mobile service providers were already earning considerable revenue from short digitized tunes with price tags higher than an entire song in today s itunes Music Store. Multimedia handsets combining large internal memory with advanced audio playback capabilities and support for DRM technology later enabled mobile operators such as 3, O 2, T-Mobile and Vodafone to set up online music shops even before such were common on the Internet. Today downloading charts are about to replace CD sales figures as the primary benchmark for the success of a music artist. The international music industry association IPFI reported that 420 million legal music tracks were downloaded over the Internet in 2005 and accounted for 6 percent of the total music market. Increasing penetration for music handsets ensures that the mobile distribution channel will retain a substantial share of the digital music market as growth takes off in earnest. 14

19 2006 BERG INSIGHT Personal navigation drives development of location based services After an initial hype, mobile location based services have lingered for several years in relative anonymity. Recently however, increasingly user friendly handsets paired with a more mature approach to content services have created the right conditions for launching new offerings on the market. Inspired by impressive sales figures for portable navigation devices, service providers and mobile operators alike have particularly turned their attention to developing personal navigation solutions for mobile phones. Operators such as Vodafone, Mobilkom, Telenor and TeliaSonera have recently introduced products which turn mobile phones into GPS navigators. Unlike other GPS navigation products they feature dynamic map information that is downloaded directly from the wireless network. That enables users to view anything from the latest traffic updates to hotels and restaurants on the handset display. Figure 7: Wayfinder Navigator on Nokia 6600 with Nokia Bluetooth GPS Source: Wayfinder 15

20 BERG INSIGHT 2006 Appello, TomTom, Wayfinder and Webraska are companies to watch on this market. Each of them has developed mobile personal navigation applications that run on smartphones and feature-phones assisted by Bluetooth GPS receivers. Digital map and points of interest data is stored on internal or external memory cards. The applications are compatible with a wide range of mobile application platforms such as Nokia Series 40, Series 60, Series 80 and Series 90, Symbian UIQ, Microsoft Windows Mobile and J2ME. That makes the applications available for a wide range of models from leading manufacturers, including Nokia, Sony Ericsson, Siemens, Qtek and Blackberry. Satellite positioning technology is required to achieve the accuracy needed for navigation. Existing network based positioning platforms which have been implemented by many mobile operators can at best achieve an accuracy of around 50 meters, which is insufficient for determining the location of an individual at street level. GPS does however have several shortcomings such as long setup times and unreliable indoor coverage. Mobile operators can improve GPS performance for their customers by implementing A-GPS in their networks. A- GPS also facilitates the integration of GPS receivers in handsets and could soon enable integrated satellite positioning capabilities in mass market devices. The European Galileo system is going to offer even better performance when put into operation in

21 2006 BERG INSIGHT Research reports Premier business intelligence by industry leading analysts Berg Insight research products are highly focused publications covering specific subjects of vital interest for our clients. Our selection of formats ranges from free newsletters to comprehensive strategic reports in printed or electronic forms. Independence and integrity are our core values. Our staff of independent experts is assigned to the mission to deliver credible analysis of current issues facing the telecom industry. We firmly believe reliable intelligence is essential for excellent leadership. All of our research products can be ordered from our website: Strategic Research Series Looking for the greater picture? Berg Insight s Strategic research series gives straightforward answers to complex questions. Will HSDPA succeed as a wireless broadband technology? Where is the mobile content and entertainment market headed? What are the latest developments on the European LBS market? Get a broader perspective and gain detailed insights about industry trends through this series of comprehensive research report. UMTS and HSDPA Mobile Computing Could HSDPA network technology and notebook PCs be the perfect match for the mobile industry? Notebook shipments are soaring worldwide and have already overtaken desktops on most European markets. Between 2005 and 2009 the population of notebook PCs in Europe is expected to grow by 140 percent to reach 118 million devices. At the same time all major population centers will be covered by high speed HSDPA data services. WLAN was embraced by the PC industry in just a few years. Can this success story be repeated by HSDPA and what does that mean for the mobile industry? 17

22 BERG INSIGHT 2006 Mobile Content and Entertainment in Western Europe Where is the mobile content and entertainment market heading in Western Europe? Get up to date with the latest developments and trends. Identify the key market drivers and their long term implications in this 90 page executive report from Berg Insight. Learn about the device, network and portal strategies of leading European mobile operators and gain a deeper understanding of emerging mobile service categories such as music and television. The Structure of the European LBS Market 2005 What are the latest developments on the European LBS market? Berg Insight s forecasts show that LBS could contribute with over 2 billion by This 300+ page strategic report gives a complete overview of 27 European markets and in-depth case studies of the LBS strategies of 10 leading mobile operators. Gain detailed insights about the complete LBS value chain spanning from technology vendors, solution vendors and mobile operators to content providers, service providers and application developers. Learn about where and how LBS have been successfully launched in the European market and how these successes can be repeated. Insights from the Japanese Wireless Market 2005 What are the latest trends in Japan the world s most advanced mobile market? Find out more about how mobile phones are becoming the ubiquitous tool for most personal electronic needs. How has it become possible to pay in a store, enter a doorway, check in at an airport or get onboard a train just by waving the mobile phone in front of a sensor? Learn the latest about the evolution of the mobile phone as a multimedia terminal. Did you know that monthly sales of full length music tracks for mobile phones already exceed one million songs on a monthly basis? The answers are found in this 110+ pages report written exclusively for Berg Insight by Sweden s leading expert on Japanese IT and telecom. Strategic Analysis of the Nordic Wireless Market 2005 Looking for a Nordic perspective on the wireless market? Berg Insight is the first Scandinavian research firm entirely focused on mobile telecom. Our latest strategic report offers detailed analysis of the Nordic region and a wireless market in rapid transition. What impact will new business models, innovative pricing, fixed to mobile substitution and the 18

23 2006 BERG INSIGHT gradual adoption of 3G have on revenues and profitability? Gain valuable insights about where growth opportunities are to be found in an advanced market with maximum penetration rates and flattening ARPU levels in this comprehensive 250 page strategic report from Berg Insight. Mobile Content Protection and DRM, Second Edition Mobile content protection and DRM 2nd Edition is an executive briefing from Berg Insight and the world s leading telecom newsletter publisher Baskerville. The new completely revised report covers the OMA DRM 2.0 standard, designed specifically for the mobile industry, is now available in mobile media solutions worldwide and is set to become a feature in all major manufacturer handsets from early Highlights include an insightful industry update, mobile DRM solution vendor profiles and case studies of DRM implementations in operator music downloading services. Planned new titles in Spring 2006: Strategic Analysis of the Russian Wireless Market 2006 Smartphone Operating Systems The Worldwide Wireless Billing Market Mobile Personal Navigation Services Strategic Analysis of the European LBS Market 2006 LBS Industry Directory M2M Research Series What are the key business opportunities in the emerging European wireless M2M market? Berg Insight s M2M Research Series examines the main vertical market segments that offer substantial growth potential for the mobile industry. Five unique reports offer accurate and up to date analysis of the most interesting areas of application for wireless M2M technology in automotive telematics, fleet management, retail, security and utilities. Learn more about AMR, car telematics, fleet management solutions, home security, POS terminals and vending machine management. 19

24 BERG INSIGHT 2006 Wireless M2M Communication and AMR, Second Edition What are the latest developments in AMR on the European market? In 2004 came the real breakthrough for solutions based entirely on GPRS mobile data communication with projects announced by NESA in Denmark and Vattenfall in Finland. Together with mobile operators SONOFON and TeliaSonera, the two leading Nordic energy groups will connect nearly one million electricity meters to wireless networks. Berg Insight has released the second revised and updated edition of its highly acclaimed report Wireless M2M Communication and AMR, focusing on the Nordic market. Wireless M2M Communication and Automotive Telematics How are wireless M2M communication solutions being adopted in the European premium car market? Dynamic data for popular navigation and routing is provided through broadcasting channels such as RDS-TMC. True two-way communication over mobile networks is however required for many other telematics services such as b-call, e-call, and antitheft. Find out about the opportunities for the mobile industry in the automotive telematics space in this report in the M2M research series from Berg Insight. Wireless M2M Communication and Commercial Vehicles What is the current status for telematics in the commercial vehicle segment? Leading players in the logistics industry assert themselves in a highly competitive market by implementing sophisticated IT solutions for asset management and tracking. Fleet management and vehicle tracking solutions are also becoming increasingly popular among smaller haulers. Navigation systems enhanced with dynamic traffic information guide truck drivers, delivery service couriers and taxi drivers along the quickest way to their destinations. In Germany, the Toll Collect road charging system now tracks over 400,000 heavy trucks with GSM and GPS. Find out more in this 90+ page report in the M2M research series from Berg Insight. Wireless M2M Communication and Retail What is the status for wireless M2M communication in the European retail sector? POS terminals and on street parking solutions are two areas where the new technology is already widely adopted. Remote management solutions for vending machines are expected to take off on a large scale in Learn more about the business opportunities associated with the 20

25 2006 BERG INSIGHT transformation of the European vending industry and the implementation for the EMV standard for secure card payments in this new report in the M2M research series from Berg Insight. Wireless M2M Communication and Security What are the key applications for wireless M2M communication in the security industry? Mobile network connectivity is already a standard feature in home alarm systems in some European markets. Exceptional growth for network cameras at the expense of traditional CCTV systems is creating an emerging market for wireless connection of security cameras. Mobile communication enables new security solutions for vehicles. Learn about the business opportunities associated with wireless M2M solutions for the security industry in this latest report in the M2M research series from Berg Insight. Planned new titles and updates in 2006: Strategic Analysis of the European Wireless M2M Market Wireless M2M Communication and AMR Wireless M2M Communication and Commercial Vehicles Wireless M2M Communication and Security Free newsletters Interested in free news from around the wireless telecom world? Berg Insight publishes two periodical newsletters with thousands of subscribers worldwide. Berg Insight Update keeps track of research findings by our analysts. LBS Insight covers the latest developments in location based services. 21

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28 About Berg Insight Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers. More information is available at: Berg Insight: Viktoriagatan 3, S Gothenburg, Sweden Tel (46)