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Mobile pictures driving new consumer push for convergence

For Immediate Release
Contact: Jenny Barrett or Chelsey Tyson
Parks Associates
972-490-1113
Email: jenny@parksassociates.com; chelsey@parksassociates.com

Mobile pictures driving new consumer push for convergence
Survey from Parks Associates finds consumers more interested in camera phones than music phones

Dallas, Texas October 20, 2005 — Convergence is finding traction in mobile phones, with one-fourth of all U.S. Internet households willing to use a high-resolution camera phone as their primary camera, according to the forthcoming report Mobile Market Intelligence (Second Edition) from Parks Associates.

The report also found consumer interest in mobile music applications, although photo applications are more popular among U.S. Internet households, with 52% (10.2 million homes) intending to buy a mobile phone with an integrated camera and only 30% (5.9 million homes) planning to purchase a mobile phone capable of downloading music.

“Although the industry is currently focused on iPods and Motorola’s new music phone ROKR, consumers would rather have a camera phone,” said Vibha Pant, an analyst with Parks Associates. “Moreover, the impending introduction of advanced mega-pixel camera phones will strengthen demand, which will create great opportunities for service providers to increase their ARPU by offering photo sharing, photo printing, and other applications.”

The prospects for music phones should not be discounted, though, with approximately 14 million U.S. homes expressing an interest in such a device, making it a more popular item than a smart phone. The report defines a smart phone as either a PDA with phone capabilities or a phone that can perform computer-like functions such as e-mailing, word processing, and Internet browsing.

Mobile Market Intelligence (Second Edition) provides an in-depth analysis of the U.S. mobile market, focusing in detail on both the demand and supply sides of the economic equation. It provides insights on mobile phone users, their current applications, and future purchase plans. It also profiles the major players on the supply side – both service providers and handset vendors. The report uses data from Mobile Entertainment Platforms and Services, a survey of more than 2,000 U.S. Internet users.

For additional information on Mobile Market Intelligence (Second Edition), visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are “digital” or provide connectivity within the home. The company’s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com.

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