Analyze the Key Challenges Faced by Vendors in the World's SIM Smart Card Markets

DUBLIN, Ireland-(www.AllPayNews.com)-December 11, 2006 - Research and Markets (http://www.researchandmarkets.com/reports/c46795) has announced the addition of the latest Frost & Sullivan report: World SIM Smart Card Markets - Market Insights to their offering.

This Frost & Sullivan research service entitled World SIM Smart Card Markets provides a complete overview of this market, analysing its main drivers and restraints as well as the key challenges that vendors face. In this research service, expert analysts thoroughly examine the following markets/applications/technologies: SIM card market, mobile communications (GSM and 3G networks), external memory cards market, near field communications (NFC), and digital convergence.

Market Overview

High-capacity SIM Holds Immense Growth Potential

The scope of the subscriber identity module (SIM) technology has evolved considerably beyond mere authentication to include value services. SIM provides the required level of support and security to cellular networks as they move from voice to data, with the result that mobile network operators (MNOs) can now offer a vast range of services such as contact management, e-mail, mobile banking, prepaid reloads, music downloads and interactive menus. This not only offers the end user a convenient navigation experience, it also gives MNOs a distinct edge in the increasingly competitive voice services area. Thus, migration to data is a critical factor in boosting MNOs average revenue per user (ARPU) rates while expanding their existing subscriber base.

"This high-capacity SIM or the mega SIM is seen as a key platform to reach out to the millions of subscribers and offer them different mobile applications," note the analysts of this research service. "The user-friendly interface of these services encourages the user to try out new and practical services ranging from entertainment, personal data management, roaming and mobile commerce services."

Transition to Mega Memory SIM Cards - a Challenging Task

While the potential of this high-capacity SIM seems immense, the real test for silicon and smart card manufacturers will be to develop products and applications in time to meet the growing demands of mobile operators. Moreover, it remains to be seen how clearly the SIM managers at the operator level will understand the usage of this additional memory. Currently, many operators continue to harbour doubts on the transition towards mega memory SIM cards for various reasons.

"Such a transition would create the need to acquire a whole new base of handsets capable of supporting these SIM cards," say the analysts. "Operators would also need to increase user awareness about the various applications, which promises to be a huge task." Essentially, operators view the SIM card more as a computer memory to trigger applications through the Internet than as a massive storage device. Handset vendors are yet to announce their plans to support mega memory SIM cards, as the models would need to support a high-speed connection between the terminal and the SIM card. Considering that mega memory SIM cards would cost up to five to ten times more than conventional cards, vendors will also face the challenge of convincing operators about the use and benefits of the extra memory.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Geographic Region: