Feature phone apps market to almost double to $1 billion

The mobile apps market for feature phones will almost double by 2016, hitting revenues of $1 billion, after being spurred on by the success of apps in the smartphone sector, according to Ovum.

In a new report*, the independent telecoms analyst claims that while the feature phone apps market has not taken off in the same way as its smartphone counterpart,  it is beginning to take strides forward.

It states that improvements which have made both developing and publishing feature phone apps easier, the larger size of the market and reduced competition mean that the sector has the potential to be more lucrative for some developers.

Nick Dillon, Ovum analyst and author of the report, commented: “While feature phone users vastly outnumber smartphone users, the apps market hasn’t taken off in the same way. This is largely because it has lacked the distribution channels to enable widespread adoption.

“However, inspired by the success of apps in the smartphone market, the options have improved drastically, with many larger handset manufacturers, operators and third parties now offering improved distribution programmes for feature phones.

“While addressing this market is not as easy as the smartphone market, it has the potential to be more lucrative for some developers. The larger size of the market combined with higher barriers to entry means that there is less competition than in the smartphone market.”

According to Ovum, the number of feature phones worldwide will reach 2.3 billion in 2016, when they will continue to dominate the market, with a 63 per cent share, compared to 37 per cent for smartphones.

The report finds that despite its age, JavaME software is the best option for developing feature phone apps, but Nokia web widgets and Opera Mini widgets also enable simple applications using web technologies. In addition, options for web development will be further improved by the introduction of HTML5-capable browsers, which Ovum anticipates will become widespread on feature phones in the next 12–18 months. 

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NOTES TO EDITORS

*Opportunities for Mobile Development in the Mass Market

To arrange an interview or for further details regarding this release please contact  Kelly Livesey in the Ovum press office on +44 (0)161 238 4081, or email kelly.livesey@ovum.com.

ABOUT OVUM

Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.   

 Android to drive doubling of smartphone market by 2016

• Global shipments to hit 653 million by 2016
• Android will take 38% market share compared to Apple’s 17.5%
• Nokia–Microsoft deal re-draws the smartphone landscape

The global smartphone market will double in size by 2016 to hit shipments of 653 million, predicts Ovum in a new forecast*. Android will drive the growth and will emerge as the dominant platform, dramatically outperforming Apple with a massive 20.5 per cent lead on market share, finds the independent telecoms analyst.

Ovum predicts that smartphones will grow at a compound annual growth rate of 14.5 per cent between 2010 and 2016 and will account for approximately 40 per cent of the mobile phone market. Asia-Pacific will be the largest region, shipping just over 200 million units by 2016. Western Europe and North America will remain strong markets with 175 million and 165 million shipments respectively.

Ovum principal analyst Adam Leach said: “The smartphone market will see significant growth over the next five years, once again outperforming the wider mobile phone market. We will see dramatic shifts in dominance for smartphone software platforms, with Android storming into the lead with 38 per cent market share, compared to Apple iOS’ 17.5 per cent, by 2016.

“The success of the Android platform is being driven by the sheer number of hardware vendors supporting it at both the high and low ends of the market.”

According to Ovum’s forecast, just behind Apple iOS will be Windows Phone, with 17.2 per cent market share by 2016, followed by BlackBerry OS, with 16.5 per cent.

Leach continued:  “We expect at least one other platform to achieve mainstream success within the forecast period. This could be an existing player in the market such as Bada, WebOS, or MeeGo, or it could be a new entrant to the market place.”

According to Leach, the partnership between Nokia and Microsoft has redrawn the smartphone market and will result in a significant reduction in shipments of Symbian-based handsets as Nokia transitions to Windows Phone as its primary smartphone platform. However, Nokia still expects to ship 150 million Symbian-based handsets so there will be shipments beyond 2012 and in some regions into 2016.

Leach continued: “For Microsoft the deal provides a committed handset partner that has the potential to make Windows Phone a mainstream smartphone platform. The risk to Microsoft is that other handset makers may choose not to compete with Nokia and may turn their backs on Windows Phone.”

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NOTES TO EDITORS

*Smartphone Forecast: 2011–16

To arrange an interview or for further details regarding this release please contact  Kelly Livesey in the Ovum press office on +44 0161 238 4081, or email kelly.livesey@ovum.com

ABOUT OVUM

Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support.

With the spat over Apple’s refusal to support the Adobe Flash technology on its iPhone, iPad and iPod Touch devices continuing to generate column inches, Ovum believes it is time for Adobe to turn the tables by courting new sponsors of its technology in the shape of telecoms operators.

The report states that Adobe and telecoms carriers are faced with similar threats and share similar goals in relation to value-added applications and content, and that carriers should therefore seek an industry-wide partnership with Adobe to use Flash as the basis of their own multi-screen device, development, delivery, and distribution systems.

Ovum believes both sides could work together to create a developer ecosystem around connected devices that would compete with, and even outdo its rivals in terms of developer and user experience and multi-screen reach.

Tony Cripps, Ovum principal analyst and report author, said: “The reality is that in the new multi-screen world, Apple and Adobe are ultimately competing for the support of the same finite pool of application and content developers.

“If Adobe is to continue growing the opportunity for Flash and its ability to pull through sales of its developer tools, it needs to find new ways to leverage its existing developer goodwill. Doing so would help maximise opportunities for success in an environment where heavily vertically-integrated offerings from vendors such as Apple are beginning to lead developer thinking through force of will and market dominance.”

Cripps added: ”Clearly, if Flash is to become a preferred technology around which carriers can build their applications and content strategies – while retaining or increasing its own relevance to developers – it will not just happen by itself. There needs to be a will in both directions to drive this idea forward. However, we are convinced there is merit in the idea and that it should be pursued.”

Internet shopping sales from mobile phones will more than double by 2013 as UK consumers get used to paying for goods on their handsets, according to Ovum and Verdict Research. However, for now, the true role of mobile is to drive growth by enhancing the overall shopping experience.

Verdict’s consumer research shows that while 28% of the UK adult population had internet access on their mobile in 2009, just 2.1% used this access to shop online. However, with internet-savvy consumers now accustomed to the multichannel environment, they are beginning to embrace m-commerce.

Verdict estimates that in 2009, internet shopping sales via mobiles was worth just £122.9m, 0.6% of total £21.2bn online retail spending. At present, rather than shop, it is clear that consumers are using their mobiles to enhance the shopping experience by comparing prices, researching products and interacting with retailers. Indeed, the findings of Verdict’s consumer research reveal that 11.5% of all UK shoppers are using their mobiles to research before shopping, while 3.8% use them to research, engage and interact with retailers while out shopping.

Malcolm Pinkerton, senior analyst at Verdict Research, said: “Consumers are not spending significant amounts via mobiles and, for now, we believe the true potential for m-commerce is to provide consumers with a valuable tool for research, comparison shopping and retailer interaction.”

Christine Bardwell, senior retail technology analyst at Ovum, added: “The opportunities are there for the most proficient multichannel retailers to claim a share of the growing cross-channel expenditure by exploiting the possibilities provided by mobiles to seamlessly link the online and instore environments.”

By 2013, internet sales via mobiles will have doubled to £275 million, driven by a 119% rise in the m-commerce population, improvements in mobile technology, better interoperability and greater take-up of smartphones and Android devices.

Verdict and Ovum believe that though m-commerce will still not have become a significant channel by 2013, its effectiveness as a marketing tool and way of interacting with customers will have increased substantially, providing a massive boost to sales growth across all channels.

“As consumer affiliation with m-commerce increases, retailers will need to decide if they’re going to be pioneers in the market and meet consumer expectations, or wait and risk being behind the curve as many were with e-commerce”, added Bardwell.

Pinkerton concluded: “If correctly implemented, m-commerce will not only ensure the needs of tomorrow’s shoppers are met today, but also that growth is maximized across all channels.”

Announced in February, MeeGo will effectively combine Intel’s netbook-focused Moblin platform with Nokia’s cross-platform application framework, Qt, and the cellular integration work Nokia has done in its own Maemo Linux flavour.

It represents the first concerted effort to create a complete, robust, and scalable device and application platform that spans an array of device categories** while offering original equipment manufacturers (OEMs) and service providers complete freedom to modify the platform and user experience as desired.

Its flexibility means MeeGo devices will likely become commonplace in a short space of time. However, Ovum doubts Meego’s short-term ability to upset the increasingly vertically integrated, vendor-driven offerings from Apple, Google, and Microsoft.

Tony Cripps, principal analyst at Ovum and report author, said the volume and variety of devices on which MeeGo is deployed may prove meaningless unless the consistency in the underlying OS is not matched by its ability to provide a true multi-screen application platform for developers.

He added: “The reality is that Nokia and Intel need to sell more Meego devices if they want access to the potentially lucrative seam of tools, consulting, and systems integration surrounding cross-platform, multi-screen application development that Qt offers.

“For the wholesale leveraging of Qt to become a reality, developers must ultimately be persuaded that it is a better cross-platform, cross-device application and UX platform than the alternatives.

“This is a big ask. From the perspective of most third-party developers, MeeGo remains an unknown and unproven quantity that is entering an already highly competitive and crowded landscape.”

In the short term, Ovum believes Nokia and Intel should ignore smartphones and push the case for cross-platform Qt development in other devices, then capitalise on any successes to “cross-sell” the benefits of Qt development onto Nokia’s Qt-enabled feature and smartphones.

“Doing so may not prove easy, and will require considerable investment”, said Cripps. “We have yet to see whether MeeGo and its backers have the stomach for the fight, but it would be wrong to write off its chances until we see the merchandise.”

Despite forecasting a ‘gold-rush effect’ that will see the total value of downloaded applications on the iPad hitting $68.8m this year and $511.8m in 2011*, Ovum believes Apple’s much-hyped tablet device alone will fail to secure the future of news and magazine publishing.

By way of contrast, Ovum has forecast that the global mobile applications market will be worth $5.7 billion by 2014, with total paid downloads of 3.3 billion applications.

Ovum’s research indicates that volumes of the iPad will take time to build. In addition, the tablet media market will soon become as congested as the smartphone app store market.

Adrian Drury, Ovum’s principal media and broadcasting analyst and report co-author, said: “The iPad promise is a set of new distribution channels for packaged media, but it is one device and volumes will take time to build. Traditional publishing’s challenge to find a new and sustainable business model is immediate.”

He added: “Previous attempts at defining this fourth screen product category have so far failed. Apple, however, is doing more than just selling a hardware platform; it is also leveraging the content and the volume of pre-existing iPhone applications (most of which will run on the iPad) to demonstrate the utility of this form factor. Apple needs the content ecosystem to drive mass-market appeal.

“The iPad and the tablet product category are a revenue opportunity and a showcase for the future of packaged media. However, this new fourth screen does not alone represent the silver bullet for the news and magazine industry.”

Ovum forecasts total shipments of Apple’s iPad to reach 13.2 million by end of 2011 (by comparison, Apple shipped 25 million iPhones in 2009 alone).

A new report* by the independent technology analyst states that Twitter’s relationship with the developer community is becoming increasingly strained as the social networking site rolls out its own mobile applications.

Ovum believes Twitter should urgently provide developers with a clear roadmap of where its own in-house development efforts are heading in order to re-establish harmony.

Eden Zoller, principal analyst at Ovum and report author, said: “As Twitter matures, it is inevitable that the company will want to produce or acquire more in-house applications, and there is always a certain inherent tension between developers and platform owners.

“However, Twitter needs to be very careful not to alienate the developer community as they drive innovation for the service and also traffic.  It should be remembered that applications account for 75% of all tweets.

“Developers do not want to go to the trouble and cost of building an app if Twitter itself is going to make a big play for same area. This is exactly what Twitter appears to be doing with its in-house applications for smartphones, and the Tweetie application** it acquired in April stands out as a case in point.”

Last month Twitter announced there were 100,000 applications for the site – double the number available just five months earlier in December 2009. At Chirp, its inaugural developer conference, the company told developers that it wants to focus on services that enhance the platform’s “core experience.”

“On the face of it, this is not great news for developers as enhancing the core Twitter experiences is exactly what most third-party applications do”, said Ms Zoller.

“For example, a core experience that Twitter is considering taking a direct hand in is rich media such as video and photos. It also plans to launch a URL link shortener.

“The implication is that developers should look to innovate more in verticals and other areas that they have not traditionally tapped into. This might appear harsh but there is logic behind the argument. The first Twitter applications are well established, and as the Twitter platform matures developers will need to be more creative.”

A new report* by the global industry analyst suggests that while UK consumers are increasingly aware of the opportunities to recycle phones, the focus now tends to be on the financial rather than environmental benefits.

The UK is the most developed and competitive handset recycling market in the world. Ovum estimates that over a quarter (26.5%) of the 30.2 million devices recycled in Western Europe in 2009 were from the UK.

Jeremy Green, practice leader for mobile at Ovum and report co-author, said: “The UK has seen an influx of online players that offer cash for old mobile phones.

“This increase in competition has resulted in a more cut-throat market and a commercial business model that has moved away from the original intention of responsible recycling and reducing landfill.”

The rise of specialists such as Envirofone means consumers increasingly recognise the value in old mobile phones, to the detriment of operator-led collection schemes and charities which cannot compete on price.

Two years ago the majority of reusable handsets were destined to end up in Africa. However, most are now sold via auctions in Hong Kong, which appears to be the hub for handset resale. The sale of devices to third-party wholesalers via auctions means the majority of handsets are no longer traceable after this point.

The Nexus One moves Google towards becoming an MDP vendor

The importance of the Nexus One is not in the hardware or pricing, but in Google’s control of the complete end-to-end user experience of the handset, from procurement to the delivery of web services to the device. We believe that MDPs will define the new high end of devices over the next five years. As smartphones are pushed further into the mass market, the important distinction of a phone will not be smart or not smart but managed or unmanaged.

This new category of managed devices will be delivered by a handful of vendors that have the resources to manage end-to-end delivery of web services to consumer devices. Google will be one of these vendors.

Google’s investment in the Nexus One is bad news for other Android OEMs

The Nexus One has modestly differentiating hardware. It is certainly no slouch in the specification department, but aside from the AMOLED display it does not set itself apart from, for example, the Motorola Droid or the HTC HD2. Its other differentiator, aside from the display, will be its use of the latest build of Android (Version 2.1, previously codenamed ‘Flan’), of which the most significant feature is the use of voice input for every text field, so users can speak entire emails, tweets or requests for navigation routes.

Its use of the latest Android build creates tension with other Android OEMs, which have now committed to device launches with older software versions that could be perceived by consumers to be inferior.

Retail is a new direction for Google

Google acknowledged that the move into online retailing represented a great leap, though it hopes to take this in ‘baby steps’. The Nexus One is the first of a number of handsets it hopes to sell through its online store. Other online companies have come to grief in the fulfilment maelstrom, a domain in which Google has almost no experience or assets at all. Even Google’s retail payments service, Google Checkout, has been relatively unsuccessful. Google aims to improve the store over time and serve new countries when it can roll out a robust offering. If it is successful then other online retailers such as Amazon will have good reason to be nervous.

For operators, success for Google would be a much more mixed blessing/curse; managing handset logistics and holding expensive stock in channels is a complex and troublesome process. On the other hand, ‘exclusive’ handset deals are one of the few ways in which operators can seek to distinguish between their standards-based offerings.

Nexus One take-up in the US will be limited by carrier incompatibilities

Today the Nexus One can be purchased for either $529.99 unlocked or $179.99 with a two-year contract on T-Mobile in the US. It will also be available through Verizon Wireless in the US and Vodafone in the UK in due course.

At present, the Nexus One is all but exclusive to T-Mobile in the US. Although available unlocked, radio incompatibility means that it will not operate on AT&T’s HSPA network and will be limited to EDGE on the largest HSPA operator’s network. This will be too restrictive for the data-intensive Android platform and ultimately unattractive.

Therefore, T-Mobile’s support of the Nexus One could be a major fillip in the US. However, the opportunity afforded by exclusivity is tempered by the fact that Verizon Wireless, AT&T and Sprint constitute 78% of US connections. More importantly, T-Mobile’s rivals have the vast majority of the high-spending contract customers that the Nexus One targets. T-Mobile has the chance to churn customers from rivals, but those customers are likely to be locked into contracts and will view T-Mobile with a good degree of scepticism. The result will be further ‘baby steps’ for Google as it looks to penetrate its home market.

Mobile operators aiming at establishing themselves as smart enablers will face a profound change and not all players will be able to make the transition to achieve best-of-breed smart enabler status. Operators in fact, need to view their network assets, communications expertise, customer intelligence and other capabilities as resources that can be marketed to third parties, not just end users.

If on the one hand a business model for first-generation enablers is established, on the other there is no consensus on the commercial framework under which third parties utilise network application programming interfaces (APIs). A range of different models are being used, including revenue share on the applications sold, revenue share from advertising and also from a variety of fee specifically tied to activating APIs. The latter in particular can prove expensive, particularly for those applications that are transaction intensive. Experimentation and flexibility are understandable at this early stage, but the industry should move quickly to establish a consistent commercial framework. “At Ovum, we think the most equitable model is one where there is an element of risk sharing; for example a tiered approach where operators only charge for API access once an application reaches a certain revenue threshold”, says Eden Zoller, principal analyst at Ovum and co-author of this report.

A robust technical, operational and commercial framework is what operators need to build in order to support their assets and capabilities. “Creating a developer ecosystem is part of the smart enabler framework and one of the most challenging tasks for operators. Most operators’ developer programmes do not compare well to those offered by device/platform vendors and online players”, says Michele Mackenzie, principal analyst at Ovum and co-author of this report. Operators are still seen to fall down when it comes to providing the right tools; they must take a more nimble approach to acting on needs and implementing solutions.

Application stores are in theory attractive to operators and provide the final piece of the smart enabler puzzle in the shape of an attractive retail distribution model for developers. From the operators’ perspective, it can help them to offer a wider range of applications and address the long tail of content, which they have failed to do in the past. A compelling application store can help with differentiation and improve customer loyalty. There are wider ripple effects, for example consumers might upgrade to more generous data plans as their appetite for applications increases, they likewise might upgrade to higher-end smartphones in order to enjoy a better user experience for their applications. However, in Ovum’s view an operator branded application store is an option for the few. To make a play in this space, operators need, among other things, excellent scale and reach, a developer platform and support programme and of course a strong brand.

“Mobile operators are not the only players wanting to take on the smart enabler role”, says Zoller. “Developers and other third parties can turn to device platform vendors, like Nokia, Apple, Microsoft and Google, online players that, besides many of the aforementioned also includes AOL, Yahoo! Amazon, Facebook to name a few. These players offer a number of benefits such as a large addressable market, lower levels of fragmentation with regard to the device and platform, and a trusted consumer brand.” Operators have been slow off the mark to open their APIs and may have left it too late to make the impact they hoped in some areas. Location is a case in point. In light of GPS, cell id databases and other technologies, the operator’s network based location services are just one of many options and not necessarily the best for all applications. “Before moving quickly, operators need to identify which enablers offer them most opportunity to differentiate as well as generate new revenues”, concludes Zoller.

Speech applications in mobile computing typically enable the user to vocally control the device’s functionality-a feature known as command and control. Other common applications include voice-dialling and voice-search, in which a search engine can be controlled by voice, and voice-input, in which the user verbally inputs data into the device.  

Regulations spur uptake of speech applications in mobile devices  

Hands-free laws are gaining traction around the world, restricting the use of mobile devices while operating vehicles. Countries as diverse as Australia, Britain, Chile, and the Philippines, among others, have enacted legislation prohibiting heavy interactions of mobile handsets while driving. In the United States, 15 states restrict handset use while driving whilst allowing for the use of hands-free systems. Vendors have been pushing command and control and SMS transcription applications to alleviate these issues.  

Providers of in-vehicle telematics, which are entertainment or navigation systems factory-installed in automobiles, and PNDs use a combination of ASR and text-to-speech (TTS) technologies. Common functions include address input, music playlist management, and address read-out.  

“Traditionally, the personal navigation device (PND) space has been a strong market for speech applications,” says Datamonitor associate analyst Ryan Joe, the report’s author. He states that the expected reduction of speech applications in PNDs is symptomatic of the flagging popularity of the device. Joe attributes this decline to a number of factors. “The global recession has caused an overall decrease in consumer spending,” he says. “Additionally, we have to consider that the proliferation of GPS applications in mobile handsets, and the fact that factory-installed telematics are becoming standard features in automobiles are disruptive to PNDs. In short, PNDs no longer own the in-vehicle navigation market.”  

Improved networks offer new ways to deliver speech in mobile devices  

Currently, most speech applications use embedded ASR-that is, speech recognition integrated directly into the device itself. However, there has been an increased number of applications that use networked-based ASR to improve recognition rates and to speech-enable internet searches. Datamonitor notes that the advent of application stores, such as the one associated with Apple’s iPhone, offers a viable channel-to-market for smaller providers of speech applications and increased visibility for innovative speech applications.  

Datamonitor notes that mobile applications in the future will use a hybrid of embedded and network speech. “Vendors are offering speech application as suites instead of as point applications,” says Joe. “In order to harness the full capabilities of mobile devices, we’re going to see solutions that combine embedded speech for features such as command and control and network speech that enables internet search.”  

Most applications for mobile speech in a business setting occur among warehouse or field force workers  

Mobile speech applications used by businesses are typically relegated to gray collar jobs that require a significant amount of physical activity. Datamonitor’s findings suggest that because enterprises don’t typically prioritize mobilizing their white collar workforce, the market for speech applications in this sector is low.  

Conversely, there’s considerably more upside for speech applications targeted towards mobile field workers and warehouse workers, who consistently operate in a hands-busy, eyes-busy environment, and for whom speech applications can speed the completion of field force or warehouse-related duties. For example, warehouse workers constantly move and lift inventory. Having to log inventory via a manual process decreases productivity and distracts the worker, which increases the chance of accidents. Warehouses that invest in “voice picking” applications, in which inventory is logged by voice, find that workers can accomplish many of their tasks without having to break concentration from his lifting duties.

2009 has witnessed the collapse of the market for mid-tier handsets

“This has had a polarizing effect on the handset market with vendors and mobile operators focusing on two types of handset: those targeting the low-end and high-end segments”, says Adam Leach, devices principal analyst at Ovum and co-author of these forecasts. “This in turn has quickened the replacement of 2G in favour of 3G handsets, with high-end 2G handset shipments suffering the most from the shift”.

The downturn has artificially extended replacement rates for handsets during 2009. However, because of the collapse of the mid-tier and subsequent focus on high-end 3G handsets, Ovum expects a move towards longer replacement rates well into the forecast period even after recovery. 

Mobile phone shipments will grow at a CAGR of 1.9% and reach 1.4bn by 2014

“The primary upside driver for growth is from volumes in emerging markets (e.g. Asia-Pacific). Connection growth in these regions is still fuelling handset shipments; however, shipment growth will trend below connection growth due to a strong second-hand market in these regions”, explains Leach.

“The secondary upside driver for growth is from the replacement of 2G networks with 3G networks, which will impact mature markets first. This will drive shipments of 3G devices (those enabled for HSPA, TD-SCDMA and 1XEV-DO networks)”, Leach continues.  In fact, beyond 2012 a majority of handsets will be based on 3G technologies even if they are bound for 2G networks (e.g. GPRS, CDMA2000). This effect will be slower in emerging markets while there is still growth for ultra-low cost 2G handsets.

LTE devices will become available in the forecast period

Following the introduction of LTE data-cards and USM modems (expected by 2010), Ovum expects to see LTE-based handsets entering the market between 2012 and 2013. “These handsets will be seen first in markets where operators have aggressive LTE deployment plans such as North America. However, LTE will not hit mass market volumes until after 2014″, Leach concludes.

Growing support for advanced mobile device management technologies in mobile handsets promises to give the mobile service provider a much increased degree of control over the device fleet. Key applications of MDM include remote configuration, defect fixing, diagnostics and software management.

The results of Ovum’s study are the outcome of a comprehensive survey of mobile handsets launched globally over the past four years, feeding into a repository of nearly 900 handsets from all major manufacturers and listing their key characteristics, including support for FOTA, OMA CP and OMA DM, plus their date of launch and regional availability.

Results show that between 4Q06 and 4Q07, global shipments grew by a compound annual growth rate (CAGR) of 83% (for firmware over-the-air update), 51% (for OMA client provisioning) and 159% (for OMA device management).

Ovum has tracked penetration of three key MDM technologies throughout 2007: OMA client provisioning (OMA CP), OMA device management (OMA DM) and firmware over-the-air (FOTA) update.  The study reveals that in 4Q07 OMA DM was supported in nearly one-third of all handsets now shipping worldwide.

Adam Leach, lead principal analyst at Ovum and author of the report says:

“It is crucial for service providers to understand the penetration of key enabling technologies in order to decide whether and when they should be scaling up the use of MDM in their businesses. What is clear is that we are now at a critical point in terms of adoption of this key technology. Service providers looking to offer device management services based on OMA DM should find they have a good choice of handsets across a range of price points.”

Ovum forecasts continued strong growth for all MDM technologies globally; by the end of 2008 Ovum expects OMA DM and FOTA, will reach 44% and 57% respectively, of global shipments. By the end of 2009 they will be an established part of the handset technology landscape, with penetration in over half the installed base of handsets and in 84% and 69% respectively, of new mobile phone shipments.

“Firmware updating is by no means the only application of OMA DM that service providers are interested in. OMA DM is already being used for more sophisticated types of device configuration than OMA CP is capable of, such as continuous provisioning in conjunction with automatic detection. It is handling client provisioning for new value-added services being offered by operators, and supporting important commercial functionality such as preferred roaming lists,” says Leach.

As the OMA finalises more standardised management objects, such as those for software updating and diagnostics, the relevance of OMA DM will continue to grow for all service providers.