ITEXPO Speaker: Stu Benington Makes 2010 Predictions

The smartphone industry is nothing if not dynamic. As the competition continues to intensify between the major competitors, companies continue to launch new products with new innovations.

 

As for who will emerge the winner, it may be too soon to tell, but Stu Benington, director of portfolio marketing for Tellabs (News - Alert), noted that coming devices will be less like phones and more like mobile multimedia appliances. As for HD VoIP, better voice quality over a packet network will be possible. Benington recently spoke with TMCnet’s Rich Tehrani in an interview that is provided in full below.

 

Reflecting on the recession of 2009, Benington did note that Tellabs was not immune to the recession, but made good progress. When asked about Obama’s first year, Benington was pleasantly surprised to see that Obama created and filled a CTO position. If he were to assume this highest position, Benington would focus on policies that allow for the development of technologies that are key for continued progress.

 

Their conversation follows:

 

Rich Tehrani: Smartphones continue to rise, find their ways into offices and homes alike. Who will dominate that market and why?

 

Stu Benington: We’re seeing companies unveiling numerous new smartphones, and we’ll continue to see new innovations. The phones share many similarities, but the differences will decide their relative market appeal. For example, they run on different networks with different pricing plans or different applications. It will be up to users to decide which device will provide them with what they want the way they want it. Similarly, the elegance of the user interface and the reliability of the connection will continue to play a big role, as will more mundane issues such as battery life and mechanical design. In addition, since mobility will come to dominate all services within the triple play, these devices are becoming less like “phones” and more like mobile multimedia appliances. Ultimately, what these smarter devices bring to the user is the ability to own a “Virtual Mobile User Network (network and apps customized to the end user)” based on preferences and wishes revolving around mobility-anywhere connected service.

 

RT: We hear more and more about high-definition voice features in IP communications products and services. What is going to drive wideband audio and HD VoIP into the mainstream market? How long will it take?

 

SB: Voice transmission has been at the bedrock of telephony from the beginning, however over the last 10 years the mode of transmission has altered. Traditionally voice transmission was over circuits, but packetizing voice (VoIP) saved money and allowed bundling with data, thus simplifying the networks. “Everything as Data” is one of the drivers for HD VoIP which allows voice to have better quality over a packet network via VoIP clients, e.g. Skype (News - Alert), in some instances the quality is better than circuit-based voice.

 

RT: What’s the most innovative product that’s going to hit the market in 2010, from a company other than your own?

 

SB: In 2010, we will see more innovations in mobile technology. From next-generation platforms in networks to faster and more differentiated smartphones, notebooks and other mobile devices that will ride on those networks and use more and more applications. Apple’s App Store just crossed 3 billion downloads, and Google’s (News - Alert) just getting started. Soon, app stores may move to the cloud, opening access for developers around the world and fueling innovation.

 

One other product area that has the potential for real innovation is 3D TV. There is considerable potential for fast uptake of this market because the devices are not projected to be materially more expensive than 2D HD sets; the only adder will be that consumers need to purchase 3D glasses.

 

RT: We entered 2009 in a recession and now we’re seeing signs of the economy picking up. How did the slow economy affect demand for your products and services and what are you anticipating in 2010?

 

SB: It was a challenging year, but we made some good progress. We are helping our customers succeed by generating new service revenue, reducing capital expenses and cutting operating expenses. Tellabs now serves 43 of the world’s top 50 telecom service providers. We continue to implement our strategy to focus our investment in growth products, innovate in growth markets and aspire to execute flawlessly.

 

The economic slowdown certainly had negative impacts on users, both residential and business, which hurts service providers. Our customers took different approaches. Some of them squeezed more out of existing assets, which was good for Tellabs core products. Others accelerated the adoption of new technologies to reduce their capital and operating expenses, which was good for our growth products.

 

In 2010, despite the slow economy, bandwidth demand will continue to grow, especially in mobile area. The mobile Internet will enable mobile devices to know what’s personally relevant to users. We acquired WiChorus (News - Alert) late last year because it extends our market from mobile backhaul to the adjacent mobile packet core. We now offer the only mobile packet core platform that is purpose-built for 4G — the Tellabs 9000 SmartCore series. The platform delivers far greater performance than traditional offerings, plus unparalleled intelligence. It provides more throughput than other platforms with minimal performance degradation from analytics.

 

 

SB: In a world where technology plays an intricate part of our daily lives, it is important to have people focused on development of technology and policies around it. It was a pleasant surprise to see that President Obama created and filled a CTO position. And that the new CTO has been active pitching the message of technology innovation and transparency around the country. I hope with this new position, we will be able soon to see more innovations and policies supporting the growth of technology.

 

 

 

SB: The challenge that the U.S. faces is to retain its competitive edge in advanced technology areas by attracting talent and ensuring efficient flow of capital to the best investment opportunities. The Federal Government can catalyze the technology industry, particularly in difficult economic times, by instituting more streamlined incorporation processes, similar to Singapore and other places, as well as making the U.S. a more favorable tax environment for technology investment.

 

In addition, policies that enable the development of technology are key for continued progress, but they need to be socially responsible. For example, we need more green policies and standards on energy efficiency, carbon emission, the type of materials used in device components and ways to minimize waste.

 

 

SB: The mobile Internet. You can already see many interesting applications for mobile devices. From transferring money with mobile phones in Kenya to scanning barcodes to compare prices in North America. Bandwidth demand continues to grow and users expect to do more with their devices. Users want smart mobile Internet that will provide them with more relevant options personalized for their needs.

 

 

SB: My session addresses a crucial issue for mobile service providers. Specifically, the need to know how to solve the issue of distance including proximity to fiber networks and in particular to balance the technical deployment issues with the most favorable economics of these investments. Understanding customer needs will help them better architect networks to provide bandwidth intensive services and applications. The presentation will illustrate solutions to the last mile and middle mile, and improvements to backhaul connectivity.

 

 

SB: In mobile area, augmented reality will bring more new applications that blend reality with digital world. Already in Europe, you can tour some historical places with a help of a mobile device. The device displays images of how those locations appeared in the past and provides relevant information. It would be interesting to see the augmented reality feature always on, as a user moves from one location to another. The augmented reality would constantly provide the user with information that would blend the real world with automatic helpful tips on the surrounding world.

 

From a network point of view mobile seems to be the flavor of 2010: bandwidth, apps and this “Virtual Mobile User Network (network and apps customized to the end user)” concept will take off. The iPhone (News - Alert) is already doing this to an extent.