A study of handheld devices

R&D N 3/2006

Sigrid Steinholt Bygdås

A study of handheld devices


Telenor R&D N 3/2006

R&D Scientific Doc.

N 3/2006

Title A study of handheld devices

ISBN ISSN 0809-1021 Project No TFLFM3 Program Security Gr. OPEN No. of pages Date 2006.02.10

Author(s) Sigrid Steinholt Bygdås

Subject headings Handheld devices, WiFi, VoIP

Abstract A study of present and coming functionality of four categories of handheld devices is presented. The categories are MP3 players, game consoles, USB memory sticks and VoIP terminals. The study was performed during the first half of 2005. New devices and new functionality in existing devices reach the market continuously. Readers therefore must keep in mind that this survey soon will be outdated.



© Telenor ASA 2006.02.10

All rights reserved. No part of this publication may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.



Contents

1 Introduction ......................................................................................1

2 MP3 players.......................................................................................2 2.1 Functionality of today........................................................................................ 2 2.2 Potential, development and standardization ...................................................... 3 2.3 Future functionality ........................................................................................... 3 2.4 Who and how..................................................................................................... 4

3 Handheld game consoles................................................................5 3.1 Functionality of today........................................................................................ 5 3.2 Potential, development and standardization ...................................................... 6 3.3 Future functionality ........................................................................................... 6 3.4 Who and how..................................................................................................... 7

4 USB memory sticks ..........................................................................8 4.1 Functionality of today........................................................................................ 8 4.2 Potential, development and standardization ...................................................... 9 4.3 Future functionality ........................................................................................... 9 4.4 Who and how................................................................................................... 10

5 VoIP handsets.................................................................................11 5.1 Functionality of today...................................................................................... 11 5.2 Future functionality ......................................................................................... 14 5.3 Who and how................................................................................................... 15

6 Conclusions .....................................................................................17


Telenor R&D N 3/2006 - 1

1 Introduction

During the first half of 2005 a study of handheld devices, excluding mobile phones, was conducted. The study was part of a research project studying what impact new functionality of mobile phones (and handheld devices in general) will have on mobile operators business opportunities. The study of mobile phone alternatives presented in this report were input to at least two other R&D projects: Voice over WLAN and Software Based Business Models.

We chose to study four categories of handheld devices: MP3 players, game consoles, USB memory sticks and VoIP terminals. New devices and new functionality in existing devices reach the market continuously. Readers therefore must keep in mind that this survey soon will be outdated. The last update of this report was August 2005. However, the intention with this report is to unveil the potential of differing handheld devices to compete with the mobile phone as the preferred handheld device.

We try to answer the following questions for each class of handheld devices studied.

- What kind of functionality do they have today? - What are their potential, where do the development head? - What functionality can we expect in the future? - Who will be involved?

Due to time and resource constraints we have not been able to give complete answers to all questions for all four categories of devices.


2 - Telenor R&D N 3/2006

2 MP3 players

2.1 Functionality of today

This functionality review is based on the following mp3-players: Apple iPod Photo, Asono Elio, Sony HD3, Creative Zen Micro, iRiver H320, Rio Carbon. The described functionality is provided by some but not all of, these players.

Being a music player (or Juke Box) is of course the most important functionality. Music file formats supported includes, but are not limited to: mp3, wma, asf, ogg-vorbis, wav, aac, aiff. Creative Zen Micro supports WMA with DRM, which means that users can bring with them music bought on MSN music store, iPod offers the same possibility for protected AAC files bought on iTunes. Sound quality differs between players, and so the equalizer abilities.

Some of the large players now have colour screen and are able to view photos. On Apple iPod Photo you can create a slide show with background music. A TV-connection makes it possible to view the slide show on a TV. The Asono Elio player has a digital camera connection, making it possible to load photos directly from your camera to your player.

Storage capacity increases. You can now get players with storage capacity of 60 GB (iPod Photo). Easy connection to your pc through USB 2.0 or Firewire (iPod) makes the player a suitable external storage for all kinds of data. With iRiver H320 you can even view your text files on the player screen. Zen Micro offers synchronization of contacts, tasks and calendar with Microsoft Outlook.

Voice recording is available on many mp3-players today. In addition some players provides recording from external sources and radio.

Radio, digital or FM, with the possibility to store several channels are common. Recording songs from radio shows and converting them to mp3 is possible (Asono).



The Rio Carbon has a stopwatch.

2.2 Potential, development and standardization

As far as we know, the chipset manufacturers offer the same type of chipsets to all mp3-player manufacturers. Functionality is pre-programmed directly on the chips, and no operating system as such is needed. Adding functionality based on software, like VoIP-applications, requires an operating system. Linux, Apple and Microsoft are possible choices, in addition to proprietary solutions.

2.3 Future functionality

As for other type of devices there are two directions to go: designing specialised devices that performs only one or a couple of functions (a player, a phone) or designing complex devices providing all the functionality you “want”.

We expect players with GPS soon. Nike will probably be first, releasing Nike PSA-610 in June, picture below. This player has a 4GB microdrive, GPS-auto tracking, FM-radio and stopwatch. [ 1]

Aireo, is probably the worlds first wireless mp3 player [ 2]. Prototypes have been released and a player with wireless LAN and a built in hot spot finder is expected from SoniqCast [ 3] in the second half of 2005. Sharing music (and other content) with friends and down-loading music from the Internet will be possible with this device. Transferring songs over WLAN is slower than USB 2.0 or FireWire. For PC synchronizing, the idea is to refresh your music regularly and automatically without physically connecting your player to your PC.

We have already seen mobile phones become mp3 players. In near future we will see mp3-players turned into communication devices – exchanging content, instant messages and more. After that, the next step can be voice over IP.



The MP3 phone EZMP4200P

In May 2005 the Korean company EZmax launched the first MP3 phone in the world in Korea and Japan. This is a MP3 player with a soft phone application included. When you connect the player to the USB port of a PC, the soft phone application displays on the PC screen, see [ 4] and [ 5].

Samsung has signed a deal to produce Nespot based mp3 players. Nespot is a WLAN music service run by Korea Telecom. The player, above, will be available later this year. It will enable users to download music directly to the player and to stream music. Pictures of the player indicate video support [ 6].

2.4 Who and how

There are a lot of mp3 player manufactures. Apple seems to dominate the market with their iPod products. In September 2004, Apple had 87% of the hard drive music player market share, followed by HP with 3.6%. Flash-based music players market shares were more equally divided, with iRiver on top with 18.8% followed by Rio with 18.6 and Digital Way with 15.8% [ 7].

Nokia now enters the battle with a music phone with a 4GB hard drive, Nokia N91, see [ 8]. Because of the network connectivity (cellular and WLAN) N91 adds the flexibility to download music everywhere.

Sony Ericsson announced their new mobile Walkman phone in August. It is named W550, and has no WLAN connectivity – yet [ 9].

The lack of operating system and APIs for MP3 players in general, puts the manufacturers in charge of adding new functionality.



3 Handheld game consoles


The leading game consol manufacturers today are Nintendo and Sony. Nintendo has long experience with hand held game consoles. Sony releases their first handheld console this year. Both consoles were expected to Norway in March, but PSP launch in Europe are delayed until September 2005 because of high demand in USA.

This functionality review is based on the two game consoles mentioned. At the end of this section we also take a look at two mobile phones dedicated to games, Nokia nGage and a model from LG.

PSP and Nintendo DS have 3D graphics and rich colour screens (DS has two), game controls (of course) and head phones. In addition to games it is possible to view videos, films and pictures.

PSP has a USB 2.0 port for connecting to the PC. You can load videos, films, music and pictures on to your PSP from your PC. PSP also has an IR-port and a memory card slot (Memory Stick DUO). This comes in addition to the game port (UMD for PSP and both GBA and DS for Nintendo DS). On PSP films can also be played from UMD-disks.

Both consoles have two types of wireless connection, one proprietary for multi player games (in a range of max 30 m) and IEEE 802.11 support. 802.11 makes it possible to connect the console to a WLAN access point and download software updates.

For PSP there already are instructions available on the Internet of how to configure an Internet connection to get RSS feeds to your PSP [ 10]. A system update for PSP-1001 released August 24 adds an Internet browser and more music and photo formats, for more details see .

A pre-installed application called Pictochat lets Nintendo DS users chat with other DS users within reach (30 m). As part of the chat, they can send sketches drawn on the touch screen to each other. Nintendo DS has a built in microphone intended for voice or sound commands, a clock, calendar and alarm [ 11].

New mobile phones offer Java 3D games. The following two phones are more dedicated to games than the others, Nokia nGage (in the market) and LG (spring 2005).



Nokia nGage comes in to versions, nGage (above) and nGage qd (below). LG looks more like an ordinary phone when it’s closed. Open, it looks like a game console.

For Nokia nGage there are at the time 30 game titles to buy, and more to come. In addition you can download and play about 1000 Java games. Multi player is supported through Bluetooth (up to 8 players) and GPRS. Community building via Internet is supported on Nokia’s nGage web pages. In addition it provides the usual functionality like SMS and MMS, WAP and XHTML browser. The colour screens only have 4096 (12 bits) colours. There are some differences between the two players because some functionality has been removed from the newest version, the qd:

- Nokia nGage: music player and recorder (MP3, AAC), stereo FM-radio, video player (H263), e-mail client, USB, 2,8 MB storage and supports GSM and HSCSD.

- Nokia nGage qd: supports video (H263) and music (MIDI, AMR, WAV), but has no mp3-player or radio. It has an email-client, Instant Messaging, 3,4 MB storage and supports GSM and GPRS.

We don’t have much information of LG’s game phone because it has not yet reached the market, but it is said to include a chipset allowing fast 3D graphics (1M polygon graphic accelerating chip) and has a 2,2 inch screen. It is also enabled with acceleration sensors so that users can control the game by moving the phone up and down [ 12].


Sony and Nintendo will probably keep their proprietary disk formats. However, some work is going on to replace the proprietary operating system of PSP with Linux [ 13].

Some PSP games (e.g. Wipeout Pure) provide players with the possibility to download game upgrades from Internet. Some people found out that this download service was web-based, and how to substitute the download page with an arbitrary URL [ 14]. There also exists “hacks” letting you receive RSS feeds on your PSP [ 10].

When launched in Korea PSP will have an additional UMD disk with Internet browser and a music download service. Sony has cooperated with the Korean telecom operator KT to offer these services [ 15].

Rumours are that a firmware upgrade will enable word processing, spreadsheets and e-mail [ 15].


Portable game consoles are turning into communication devices where you can play multiplayer games across Internet, download content and chat.



With IEEE 802.11 support, built in microphone and headphones it will be possible to implement a VoIP application for a Nintendo DS. To simplify Internet gaming, Nintendo plans to build a free WiFi network with 1000 hotspots in Japan, see [ 16].

A working prototype of Voice over IP calling on Nintendo DS was demonstrated on E3 in May 2005. The product name is DSpeak [ 17]. With a combined headset/microphone DS users can speak to each other via WiFi. The audio quality is reported as good as a mobile phone.

It is likely to believe that the PSP Linux community [ 13] sooner or later will implement a VoIP service for PSP. Voice is already a central element in many online multi player games. A VoIP company called Xten has indicated that they should be able to make a VoIP soft phone for PSP [ 18].

3.4 Who and how

Sony and Nintendo of course, and maybe Nokia, LG and other mobile phone manufacturers. Microsoft must not be forgotten. Game developers.

With open platforms and API’s we can imagine a community of software developers making all kinds of software suitable for a portable device with network connection and a great colour screen.

As shown, users will not necessarily follow “rules” (or intentions) of how to use a device, e.g. restricting web browsing to a limited number of sites.



4 USB memory sticks


USB Flash memory sticks get more and more popular. They provide a fast and portable data storage. This functionality review is based on the following existing products: SanDisks Cruzer (Micro, Mini and Titanium), M-Systems DiskOnKey (100 and 500) (no picture here), Apple iPod Shuffle and Octave Systems MultiPod.

SanDisk Cruzer Micro Apples iPod Shuffle Octave Systems MultiPod

Combined with a mp3-player

As the name indicates USB sticks connect to the PC/Mac via the USB port. Today USB sticks supports both USB 2.0 and 1.1. High-speed connections give a writing speed of 13 MB/s and a reading speed of 15 MB/s (SanDisk). Storage space varies from 128 MB to 2 GB.

While you can store all types of data on a USB memory stick, some manufacturers specializes their products in different ways. SanDisk Cruzer Micro is an ordinary USB memory stick, but when you plug it into the Cruzer Micro MP3 Companion, you get an mp3-player. Apples iPod shuffle is sold as a mp3 player, but can be used as an ordinary USB memory stick. The MultiPod specializes in photos, videos and sounds. It can be used as a video camera, a digital camera, a web camera and a voice recorder.

To secure data stored on a USB memory stick, encryption can be used. Password protection of data is possible, too. SanDisk delivers software that enables users to “synchronize, transport and access their Outlook data” (email, attachments, calendar, contacts, tasks, notes, IE favourites). With M-Systems application called Autorun, it is possible to start an application on a PC when the USB-memory stick is plugged in. This can be used for advertising. Another application turns the memory stick into a boot device for a computer. A third application from M-Systems called KeySafe password protection “enables users to access and designate trusted computers, such as those used most frequently with their DiskOnKeys at home or in the office, so that they never need to re-enter their passwords”. AES hardware encryption is used, and Autorun is supported. I guess this means that the USB memory stick provides secure user identification.

Someone has found out how to run Skype from a USB stick [ 19]. This way Skype users can carry their personal phone with them and use it on every PC they get access to.



Kingstons DataTraveller II Plus Migo is a fast USB stick (19 MB/s reading, 13 MB/s writing) with Migo software from PowerHouse Technologies. Users can load data and settings (desktop, e-mail, favourites, etc) from their PC onto the USB stick. Every other Windows 2000/XP PC will look and behave like your own PC when you connect the USB-stick. You can have several profiles on the same unit, protected by password. Migo automatically synchronizes the files when you return to your own computer. [ 20]

The MP3 phone EZMP4200P from EZmax mentioned in the previous chapter could as well be listed among the USB-devices presented here.

In 2003 Gigabyte and Soyo both launched WLAN USB sticks with an integrated 128Mb flash memory. The Gigabyte GN-WLBZ201 is still for sale, however it only supports USB 1.1

USB WLAN stick from Gigabyte


U3 [ 21] is a new hardware and software platform that will turn USB flash memory sticks into more than plain storage. With U3 users will be able to carry, store and launch their personal data and applications on any pc wherever they go.

U3 was founded in 2004, and is backed by USB flash drive market leaders SanDisk and M-Systems. A web site for a U3 Developer Forum exists [ 22] and developer tools will be available during September 2005 according to this site.

U3 says it will support a portable Skype on its flash-based platform from this fall. “U3 already supports a portable email client and a bunch of encryption, caching and backup software titles. The Mozilla Foundation has pledged to make Portable Firefox and Portable Thunderbird conform to the U3 specification. Yesterday, in addition to Skype, U3 also announced support for ICQ.” [ 23]

Note that USB 2.0 products can be converted to Wireless USB products with adapters. At Intel Developer Forum 2005 in Japan, wireless USB was demonstrated, see [ 24].


USB sticks are probably the extreme example of SIM-less devices that can be used for “everything” – that is: all the stuff mobile operators believe people will use their mobile phone to do in the future. For example authentication, secure payment, mp3 player, personal file storage, camera, etc.

To be able to use a USB stick as a phone or mp3-player for instance, you’ll need to connect it to an additional gadget with supporting functionality, like a “phone” (keys and network



connection) or mp3-player. Can we imagine a future possibility of replacing SIM cards with USB-sticks?

4.4 Who and how

If the U3 developer forum becomes a success, a wide range of U3 based applications will reach the market in short time.



5 VoIP handsets


Voice Calls

For several years now Voice over IP has been associated with software enabling voice communication between PC users. Examples are MSN Messenger and soft phones like X-ten XPRO pictured below, and of course Skype.

In addition we have got physical handsets enabling IP voice calls. These are either connected to your PC or to your broadband connection with or without a cable. Different alternative handsets from IP Connection [ 25] are shown below.

VoIP-products from IP Connection.



The wireless freedom announced is however not true mobility as far as you have to stay in reach of your wireless home network or another wireless network to be able to call.

Motorola takes one step further with their cell phone CN620. This phone has an additional WLAN interface making it possible to run VoIP calls over WLAN when in reach of the wireless network at work and ordinary GSM calls outside the office. The phone automatically switches from VoIP to GSM. According to New York Times it will be ready for home offices later this year and probably for regular consumer use by 2006, see , see [ 26].

Hop-On announces the Mobile VoIP phone HOP1502 on their web site [ 27]. Like Motorola CN620 this is a cell phone with built in WiFi. In addition this phone has a virtual SIM-card, a software based alternative to the SIM card. Hop-on claims VSIM to provide “a higher level of security and flexibility at a lower cost than existing SIM cards. VSIM also enhances current SIM card features, and enables new features including powerful access right management and billable authentication.”

HOP 1502

Software based VoIP services, like Skype, MSN Messenger and Yahoo! IM offers more functionality than just voice calls. Instant messaging (chat), sending text messages (sms) to cell phones (Yahoo!), file exchange (up to 2 GB sized files can be exchanged using Skype), and video-calls using web-cameras are provided (MSN).

Skype provides an API. This enables developers to implement add-on functionality to Skype clients, for example a phone answering application.

To illustrate the diversity of VoIP handset and manufacturers, some products are depicted below.

USB VoIP handset IPO-166 Claritel-i750 Handset Internet Telephone



CyberphoneK from VoIPVoice. PeerCall (retailer Clas Olsson)

Designed to integrate with Skype

Adapter from VoIP SP Telio. Siemens Gigaset S35 WLAN.

Combine with an ordinary analog phone. Connects to your WLAN router.

The PCHome Touch-1 USB Skype phone F1000 from UTStarcom

An alternative to the wireless handsets is to use your Symbian cell phone with the Symbian Mobile App for Skype [ 28]. The application connects to your PC through Bluetooth and uses your PC Skype client to make VoIP calls. Compared to WLAN-based handsets you get less “freedom” because the Bluetooth range is more limited than WLAN. Used as a cell phone the handset has full mobility. The usability of the Symbian Mobile App for Skype is questioned in [ 29]

The MP3 phone EZMP4200P from EZmax can be mentioned in this category too. See the chapter on MP3 class terminals for references.

Video calls

Video calls or video conferencing over IP can be seen as an extension of VoIP. The market leader is Apple with their iSight product. This is a small gadget that can be mounted on a laptop. The new Mac OS X, called Tiger, includes an application, iChat AV, that enables videoconferencing for up to four people. You can video chat with high-quality video to anyone who also has an iSight, and can also connect to users with an AOL IM account and a USB connected video camera.



Motorola Ojo, pictured below, is an alternative to Apple iSight. Ojo requires no computer, just an Ethernet connection to a broadband Internet service.

Motorola Ojo

Two-way videoconferencing is “clear, crisp and effortless” according to New York Times (see link above). You can video chat with persons having an Ojo or a H264 compatible device, like iSight, for 15$ a month. Ojo have a detachable VoIP phone.

Another example of a videoconference phone that requires no computer, is the Broadband VideoPhone from Packet8 below.

This phone has a pop-up screen and offers fully functional video and audio calling at low cost. It can be connected to a TV. According to New York Times (again see the link above) the video quality is ok and it “sparkles as a phone”. The announced 19.95$ a month includes unlimited video and voice calls in US and Canada.


With smart phones and PDAs it is possible to have functionality provided by applications like Skype and MSN (voice calls, IM, file exchange, video) on mobile devices. However, installation and configuration may be hard. Pre-installation of Skype on cell phones from I-mate [ 30] and Motorola [ 31] seems promising regarding usability.



IPWireless’ UMTS TDD terminal with VoIP

Talking about mobility, an interesting alternative to WLAN-based terminals with VoIP may be the terminal pictured above from IPWireless Ltd. This terminal utilizes the mobile broadband network UMTS TDD or TD-CDMA to provide VoIP and high-speed data, see [ 32]. The phone should be available mid 2005.More information about UMTS TDD in [ 33].

Nokia Internet Tablet

Nokia has just introduced a “non-cell phone” or more precisely an Internet tablet with WiFi connectivity, picture above. This tablet has a Linux operating system, and Skype runs on Linux. It has a big touch sensitive screen and a Bluetooth headset. Nokia tries to build a developer community for this devices platform, called maemo [ 34]. If they succeed a lot of applications will be made for this device, including a Skype port for the actual platform.

Nokia writes [ 35]: “The Nokia 770 Internet Tablet’s software is upgradeable and currently runs on the Linux-based Internet Tablet 2005 software edition. There is a planned launch next year of an operating system upgrade – the Internet Tablet 2006 software addition – that will support additional services, including Internet telephony (VoIP) and Instant Messaging.”

The device got quite a lot of intention on the net when it was announced. More information about the device, Nokia and open source, and the possibilities for cooperation between Skype and Nokia can be found in [ 36], [ 37], [ 38], [ 39], [ 40] and [ 41].

5.3 Who and how

In addition to handset manufacturers like Motorola, UTStarcom and Nokia, software companies like Skype, Microsoft, Google and Yahoo challenge the more traditional PC soft phone providers like Xten, Phonzo and others by providing VoIP conversations in addition to instant messages and file sharing. Through their acquisition of Teleo, Microsoft



Messenger becomes a serious competitor to Skype. Yahoo has bought Dialpad and Google has released their GoogleTalk.

On a PC screen it may be perfectly all right to use more than one soft phone or IM+VoIP client. On a mobile device, however, we believe one client is enough. Microsoft Messenger and Skype both run on smart phones. However, Microsoft probably has an advantage because they have full control over the operating system in addition to the instant messenger application.



6 Conclusions

Mobile phones are not the only type of gadgets providing functionality like music, video, games, camera, secure payment, authentication, calendar synchronization, IM, e-mail, etc to users. In future we can expect devices like mp3-players and handheld game consoles to get voice call functionality through Voice over IP.

Mobile operators tend to believe that mobile phones are the only devices capable of providing users with “all” functionality needed. This may not be true. Maybe people in future will find other devices more suitable or maybe people in future will prefer specialised devices? We believe voice calls and presence services will be common functionalities in a diversity of handheld devices in near future. The survey presented in this report documents this trend.

Until now battery lifetime has been considered a showstopper for WiFi enabled devices. On June 8. 2005 Texas Instruments released a new WiFi chip that is claimed to consume only 10% of the power consumed by existing chips today. The chip is nearly half the size of existing chips, making it attractive for handheld device producers.

Open platforms, APIs or open source, developer communities and user communities are all important factors influencing innovation of services and use. Device manufacturers and telecom operators may benefit from supporting innovation through such mechanisms.



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Documents

A study of handheld devices