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Market Insight on Presence Information
Presence Information to be the Horizontal Enabler for Next-generation Communication


London, UK – 19th September, 2006 - Presence information is gaining increased importance across Europe, serving as a catalyst to fill in the gaps that exist between the sender and the recipient within the communication portfolio. In order to drive convergence and unified communication, Presence is vital, as it serves as the key horizontal enabler in driving communications across various client devices, applications and technologies in use.

“Presence information plays a vital role in bridging the communication gaps between the sender and the recipient, as it enables users to convey real-time presence information to others regarding the way in which they wish to be contacted at different intervals of time,” notes Frost & Sullivan (http://www.it.frost.com) Industry Analyst Luke Thomas. “Presence will be the key horizontal enabler and an integral part of all multimedia applications, so as to enable carriers to maximise the potential of new applications being introduced, eventually leading to an increase in the average revenue per user (ARPU).”

Currently, there are divergent opinions on the value of Presence’s offerings. Several carriers are of the view that Presence can, in fact, diminish their revenues. However, carriers should focus on differentiating each service rather than being concerned about a new service such as mobile instant messaging (MIM) cannibalising SMS revenues.

One of the key issues facing the market is whether Presence should be a charged or a free service. In addition, if all contacts within the address book were powered by Presence, a significant amount of bandwidth will be consumed due to Presence signalling from the handset to the cellular network.

“In general, relaying real-time Presence information from the end user to the network would be in the range of 1-2 kilobits with latency less than 1 millisecond,” states Mr. Thomas. “However, if millions of users were connected to the network, it would be a major concern for mobile operators and reduction in the battery life of the handset is a possibility.”

In this scenario, several carries are considering the creation of a separate Presence list with a specific number of contacts to be added, in order to avoid degradation of the network. However, prior to this, carriers will need to closely work with terminal vendors in embedding Presence clients within the handsets and fund research and development to increase the battery life of handsets.

No single technology can support many high bandwidth-consuming applications due to limitations on channel bandwidths allocated to carriers for each technology. As a result, many carriers have initially decided to consider the implementation of Presence with applications such as MIM and push-to-talk (PTT) and then gradually scale to other applications, depending on market demand.

However, even if carriers overcome bandwidth limitations by using multimode technologies, major restructuring within the networks will be required, as most carriers follow a silo-based approach, with a separate OSS/BSS for each application. Thus, several carriers are looking to deploy a pre-IMS/IMS architecture wherein applications will move from the silo-based model to a horizontal approach. This implies that carriers will share the same OSS/BSS for new data applications, which will significantly reduce CAPEX/OPEX costs, thereby encouraging carriers to be more forthcoming in taking risks while launching new applications.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Market Insight on Presence Information, send an e-mail to Srividhya Parthasarathy - Corporate Communications at sparthasarathy@frost.com with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information through email upon receipt of the above information.

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Publisher Contact Information:

Frost & Sullivan
+91 (044) 42044668
sparthasarathy@frost.com

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