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Research: Mobile Phones To Be Video Terminals

This year, people are going to spend $1 billion on video calling, video mail and video sharing services. That figure will swell to $17 billion in just five years. Is mobile video really going to be that popular?

According to ABI Research, it will be. Its latest report takes a detailed look at the growth of mobile video services, and developing and developed countries alike will contribute to the increase in use of these features.

Report author Dan Shey notes:

The Web 2.0 phenomena and sites that allow posting of mobile video will increase demand for mobile video services. However, global demand inhibitors include income levels, messaging and video viewing alternatives, and handset capabilities. And then there is the uncertainty factor for operators of video services on network utilization which will affect their promotion and pricing strategies.

I certainly see the appeal for some of these services. What's more fun than sending a 15-second video clip from one phone to another so you can see junior's first steps or Suzi's home run while on a business trip? AT&T also recently launched its video sharing service, which lets users transmit live video from one phone to another (in one direction). While it is aimed at consumers for the time being, I think the enterprise uses of such technology are unlimited. It will be even better when we can make bi-directional video calls to one another.

Not surprisingly, the developed regions of the world will consume the bulk of these services. Up to 90%, according to ABI. The income levels in those regions alone will help determine that. ABI notes, however, that video services will play their own role in developing countries, too.

I don't think it is too much of a stretch to say that mobile video services will only continue to gain in popularity and adoption. Especially as the cost of these services comes down.

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