US : Mobile-content enablement-platform providers are becoming an increasingly important segment of the wireless communications value chain as operators increasingly offer digital content, according to iSuppli Corp.

As mobile phones have migrated from being simple communications devices to becoming computing and music-playback platforms, consumer demand for content such as music, video and applications has increased. The 3G mobile handset infrastructure is now in place to support this content.

However, just as agreements had to be reached to provide handsets and equipment for new 3G phone systems, wireless carriers now must make deals with content providers in order to provide the desired audio, video, applications and games. These agreements will determine how to manage royalties, how to allow for the purchase of content and how to coordinate marketing support from the parties involved throughout the supply chain. Also, due to the multitude of devices on the market today, various forms of content will be required in order to meet the demands of each consumer's handset.

Furthermore, systems must be developed for the storage, maintenance and customer provisioning of digital content to subscribers. There also must be a suitable billing scheme and tracking of all content so the multitude of involved entities is credited.

Because of this, wireless carriers increasingly are utilizing the services of mobile-content enablement-platform providers, which offer a bridge between the content providers and the wireless operators. This will cause the mobile-content enablement-platform provider market to rise to $7.1 billion by 2010, up from $4.2 billion in 2006, iSuppli predicts, as presented in the attached figure.

Enablement in the middle

Content-enablement platform companies provide the software, systems and infrastructure to take content from the content companies and supply it to users via wireless operators' networks. The tasks involve ingesting, cataloging, storing and delivering content as well as handling all of the corresponding financial transactions.

The process of delivering content requires that the enablement companies have an in-depth knowledge of the entire ecosystem for each and every user. When a user requests a piece of content, the enablement company first needs to check to see if the consumer's handset is capable of receiving and storing the content based on the individual handset feature set. Then, the handset's client and media players need to be verified to deliver the content in a format that the handset can handle. Finally, the enablement company needs to understand the preferred billing systems and the nuances of delivery over the various technology standards.

An unbalanced market

However, there is an imbalance in the amount of power wielded by each of the three groups of companies, with the content providers and carriers possessing far more influence than the smaller enablement-platform companies. Because of this, the smaller enablement-platform companies are often at a disadvantage when entering into deals with the larger, more powerful content providers and carriers, iSuppli believes.

iSuppli's white paper: The Rise of Mobile Content

- Why do the operators wield so much power in the value chain consisting of carriers/operators, content providers and content-enablement platform companies?

- What are the key features that are needed to establish a mobile-content-enablement platform?

- Who are the major companies in this market?

To learn the answers to these and many other questions, read iSuppli's new white paper, entitled: Multimedia Content: The Rise of Mobile Content Enablement Platforms. Journalists, please respond to this e-mail for a free press copy of this report, or visit: http://www.isuppli.com/whitepapers/ All Information and Intellectual Property Contained Herein is the Sole Property of iSuppli Corporation

About iSuppli Corporation

iSuppli Corporation is the global leader in technology value chain research and advisory services. iSuppli provides market intelligence services for the EMS, OEM and supplier communities in addition to servicing consumer electronics and media concerns. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to multimedia content and services.