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GSM statistics
World
1.Countries - 205
2.Networks - 549
3.Subscribers-1024.3 million
( up to Feb 2004)

India
1.Networks-55
2.Subscribers-1,82,71,914
[End of SEPTEMBER 2003]

Top Four Metros
1. Delhi 31,61,498
2. Mumbai 27,45,907
3.Chennai 8,92,752
4.kolkotta 8,70,274

Top Seven States
1.Maharashtra 22,19,088
2.Punjab 19,96,502
3.Gujarat 19,84,368
4.Andrapradesh 17,39,773
5.Karnataka 16,80,872
6.Uttarpradesh 16,90,658
7.Tamilnadu 13,89,580







AIRSELL???!

"You buy something to sell and you sell to buy something. You destroy something to create and you create something to destroy," -Words of the famous chairman of the Sterling Group, C Sivasankaran. He was refuting a business news that his flagship company Aircel was sold for a whooping 1700 crores. But then he did not hide his intentions nor did he dismiss it out right. after all can there be specific 1700 sparks without fire?. "If I have to answer a question as to when I will die, I will only say that I will die one day, but cannot say when," a classic reply about when he will sell. he further added "As of now, I am not selling Aircel. I will continue to build up the system to the level of three million capacity. I will look into the option of selling it, if a reasonable price is offered," he said, while announcing that Aircel had crossed the one million subscriber base in Tamil Nadu on March 31 last. "I am happy that Aircel is worth Rs 1,700 crore now," the NRI businessman said. "The answer to all your questions on this subject is yes and no."

ONE million customers - a loud one page advertisement by the proud Aircel beamed in all leading newspapers on April 4th sunday. It is planning to expand its system capacity to three million cell phones by January next, by making an investment of Rs 180 crore. Mr Sivashanker also hoped that his network will reach two million capacity by november and also aims one crore plus customers in Tamilnadu. He also said very soon free connections with new features will be provided to females and children belonging to the family of the existing aircel customers. All this announcements betrays the selling news.

However rumours are alive that Idea is about to gobble Aircel and may be after a few months Airtel will gobble Idea thus ending the big fish eats small fish chain. so come July there can only be two scenerio. Aircel growing to become an all India player by acquiring new feasible and profitable licenses or elsebe gobbled. And till then Mr Siva shanker will be increasing his capacity and the price.

Aircel rates the highest in customer satisfaction and is the most fastest growing in any circle. However with licenses being available every where it is a fact that small players will loose in the long run . So either grow big or quit nicely is the rule of the day And who knows better than this but Mr Sivashanker

RIM stumbles
The latest growth numbers in mobile telephony — which show GSM subscribers growing faster than CDMA — suggest that the war may, at long last, be shifting to the marketplace. Cellular telecom operators seem to be regaining lost ground. They snapped up close to 1.37 million new subscribers in January, while slightly over 200,000 people signed up for CDMA-based mobile telephone services in December. The growth in the number of mobile users continued with over 1.6 million new users being added in February, taking the total subscriber base to over 30 million. While GSM-based cellular operators added 1.2 million new users, CDMA operators roped in only 340,000. The Reliance numbers in February were lower than the targeted one million new users every month announced by the company at the time of the launch of its pre-paid card. Reliance, however, continues to be the largest mobile operator with 6.7 million users. Bharti stands at the second position with over 6 million subscribers after it roped in 330,000 new users in February. Bharti had, however, added 360,000 new users in the previous month.

The end of the 501 scheme, ferocious collection methods, poor billing methods, non transparency in billing and also broken promises are all factors for RIM growing slower. And if this continues RIM may get reduced to less than ten percent share. But Ambanis are not known to lie low for long. Let us hence wait for the next move for thrust.

Cell grows fast
Indian telecom operators could see almost three-fold jump in revenues — from $9 billlion in 2002 to $25 billion by 2007, according to a study released by Ernst &Young. As per the study the Indian telecom network will become the second largest in the world after China in the next five years. The report, titled “Redefining Indian Telecom,” also said that the teledensity in India would cross 20 per cent in the next five years instead of eight years as projected by the government. “We estimate the subscriber base to cross the 20 crore mark by 2007 and 25 crore in the next couple of years. This will easily make India the second largest market in the world,” Sanjay Mehta, Ernst & Young director, said. Outlining the key drivers of future growth, the report said that small operators with low economies of scale would not be viable due to the very high cost per minute. “Eventually only three or four large operators with pan-India operations will remain nt,” it said. The report predicted that state owned telecom majors, MTNL (MTNL.BO, news) and BSNL, would eventually merge in the face of stiff competition from integrated private players. Once mobile operators were allowed to route inter circle calls within their own network, the long distance operators would lose relevance, and therefore such players would integrate with large wireless or wire line players. “According to us, companies with low cost and pan India business s with diversified product offerings will be the future winners,” the E&Y study said. The report cautioned operators that while the future value for companies would reside in ownership of customers, operators should also pay rigorous attention to retaining revenue. “The ability to keep operating costs under control will be the key for the much needed flexibility in pricing. Various operators have moved towards infrastructure sharing and outsourcing network O&M activities,” it said.
Nokia boom

Finnish telecommunications major Nokia has clocked a 97 per cent growth in revenues from its Indian operations to over ¤1 billion in 2003, making it the biggest growth market for the company after the UAE. Nokia's sales turnover from India in 2002 stood at ¤ 539 million. The numbers assumes greater significance since Nokia's sales in China, which is also a booming mobile market, has dipped by a whopping 28 per cent. In contrast, sales in India has more than tripled since 2001 when Nokia got just over ¤ 216 million. India's share in Nokia's total sales has also gone up from 0.8 per cent in 2001 to 3.6 per cent in 2003 when Nokia reported a net sales of ¤29.4 billion. According to Nokia's annual report 2003 available on Nokia's website, India is ranked sixth when it comes to absolute revenue numbers. While the US has contributed ¤4.4 billion in 2003, making it the largest market for Nokia, Spain which accounted for ¤748 million is the tenth biggest market in terms of absolute sales numbers. However, India is among the five countries in the top ten which has reported a positive growth in revenues for Nokia consistently for the last two years.

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Industry News
1.- Hutch and Aircel jointly lead the rankings of Indian cellular service providers based on their ability to meet customer expectations, according to a new survey. State-owned Mahanagar Telephone Nigam Limited (MTNL), which offers mobile services under the `Dolphin' brand, has been rated at the bottom of the list, according to the annual survey on mobile operators by TNS Celltrack (formerly known as NFO). While Hutch and Aircel share the top honours with 78 points each, Reliance Cellular got a score of 73 while Tata's Idea and Bharat Sanchar Nigam Limited (BSNL) shared the next rank with 72 points each. Bharti and Spice were next on the list with 70 and 67 points respectively. The global market information provider measures mobile service providers on the basis of level of satisfaction of users, as also retention and brand loyalty. This is the fourth year when TNS has released its rankings of Indian mobile phone operators. Reliance Infocomm Limited and Tata Indicom Limited that provide mobile services using the CDMA (Code Division Multiple Access) platform, have been included in the survey for the first time. The two operators, however, are in the bottom half of the heap, which implies that they have not been able to anticipate and meet customer expectations during 2003.

2. Mobile gaming is emerging as the fastest growing application in the cellular telephony industry. It has grown 50 times — in usage — in a single year. No wonder, then, that several mobile service providers are cashing on its popularity. Hutchison Max Telecom is offering 250 Java-based mobile games on its network, while Reliance Infocomm has added several gaming applications to its R World and even offers multiple players facility. Both companies have entered into an alliance with gaming companies in order to offer more to customers. Hutch has entered into a development alliance with Mauj, India Games and Mobile2Win, while about 10 companies have signed up with Reliance Inocomm through Dhirubhai Ambani Developers Prog- amme (DADP) for providing Java gaming applications on R World, the Reliance platform. There are more than 100 games on the Reliance network, according to senior executives of Reliance Infocomm. The revenue generation from the mobile gaming market can be spectacular. In east Asia, mobile gaming has generated $827 million in revenues while US wireless gaming revenues touched $436.4 million in 2001, industry sources claim. By 2006, wireless gaming is expected to be several billion dollars in annual revenue worldwide. Harit Nagpal, vice-president, corporate marketing, Hutch said: “Humans and games have had a relationship from times immemorial. Why should it be any different when it comes to mobile phones? Gaming is one of the fastest growing mobile applications today. We have seen this trend internationally, and we are witnessing it now in India.” On an average 1,20,000 mobile games are downloaded every month by Hutch users. This is a phenomenal 50 fold increase from an average of 2,200 mobile game downloads in February last year. This growth is expected to increase further with increasing penetration of GPRS handsets and applications, Nagpal pointed out.


3.

The telecom sector may attract more outsourcing deals in the near future as Hutch and BPL are looking at offshoring options in India. “Globally, outsourcing is being accepted as a means to cut costs. In India, most operators have already begun outsourcing parts of their businesses like call centre operations, application-based services and content. Going forward, this may result in bigger deals,” Paul Cardoso, former chief executive officer and president, BPL, said. Increasing pressure to cut costs and create higher levels of efficiency would drive other operators to outsource non-core activities processes to experts. “Outsourcing does three important things for the operator. It improves the cash flow of the company, it improves efficiency in revenue generation and brings down costs. On the downside, however, if the outsourced function is not taken care of properly, then the reputation of the company is severely affected,” Sanjay Mehta, director, Ernst & Young, said.


4. Land lines and cellular phones here are being flooded with messages from Prime Minister Atal Bihari Vajpayee, seeking co-operation in “taking India forward to greater heights”. The Bharatiya Janata party has embarked on a novel voice od of campaigning after the earlier SMS campaign. Scores of persons in Ahmedabad were shocked as they heard the voice of Atal Bihari Vajpayee as soon as they answered a cellphone or a land line of Bharat Sanchar Nigam Ltd. The message begins with “Namaskaar, main Atal Bihari Vajpayee bol raha hoon”. The voice goes on to list the achievements of the government. The PM is heard stating further that there is still a lot more to do, as poverty, unemployment and illiteracy still exist. Vajpayee goes on to state that there is a need to create an India, where people of all religions are respected, where all people feel secure. He is then heard seeking the assistance of people in creating such and India, ending his one minute and one second speech by the word `Dhanyawaad”. “I received a phone from a Reliance cellular number 011- 30820150, and saw that it was from Delhi. The moment I answered the phone, the distinct voice of Prime Minister Atal Bihari Vajpayee came across.


5. Hutch in Andhra Pradesh is scoring. The cellular operator has the highest average revenue per user (ARPU) among all other cellular operators in the state for the last quarter. This apart, the company has also crossed the two lakh subscriber base in the state. Kumar Ramanathan, chief operating officer (Andhra Pradesh), Hutch, told Business Standard that the company was able to achieve a higher ARPU than its competitors purely because of its ability to get better customers on board. "At the acquisition stage, we are able to attract the right profile of customers. Our ARPU is about Rs 527 as of the last quarter and this is much better than competition," he said. Incidentally, Hutch had posted the highest ARPU in the industry of Rs 736 in the Mumbai circle, where it operates under the Orange brand name. “Importantly we are paying a lot of attention to every point of interface with the customer and ensure that it is direct and transparent. This ensures that their confidence in the operator is not misplaced," Ramanathan said. Hutch's competitors, IDEA and Airtel have an ARPU of Rs 500 and Rs 492 respectively. Importantly, both IDEA and Airtel have more subscribers with about 4,55,000 and 5,84,000 respectively. "In the last two quarters our revenues have become healthier and in the last two months we have added about 50,000 customers in our circle,” Ramanathan said. Hutch which was the last operator to enter the state market, started operations 21 months back and today has a coverage that is spread across 120 towns in the state.


6. Mobile service provider Bharti Tele-Ventures has announced that it will roll out services in six circles — Jammu & Kashmir, UP-East, West Bengal, Orissa, Bihar and Rajasthan — shortly. This will increase Bharti's national footprint from 15 to 21 circles. The company has earmarked an investment of Rs 2,000 crore for the next fiscal which will be used for network expansion as well as scaling up its capacity in existing network across all circles. Speaking to mediapersons on the company's expansion plan, Manoj Kohli, president-mobility, Bharti Tele-Ventures, said, “We are embarking on this aggressive expansion plan which involves increasing network capacities, introducing new technologies, strengthening the spread and depth of coverage and adding host of other state-of-the-art software platforms.” As part of this plan, AirTel will expand its mobile services to 1,000 towns during 2004-05, of which 300 towns will be added in the 6 new circles. This expansion plan will provide AirTel with an all-India presence and it will be present in 2,300 towns by March 2005. With this announcement, Bharti would have invested close to Rs 10,000 crore by March 2005. Bharti would be scaling up its network to cater to more 11 million subscribers by the end March 2005. Currently, it has a subscriber base of 6.5 million.


7.CDMA-based mobile players, including Reliance Infocomm and Tata Teleservices, have been rated the lowest in fulfiling customer expectations by the annual TNS Celltrack report. Essar-Hurchison and Aircel have been ranked the two top operators in meeting subscriber expectations. The top five performers, according to the report, include Hutch and Aircel, leading with a score of 78. Reliance's GSM-based cellular service has, however, bagged the second spot with a high score of 73 points followed by Idea Cellular with 72 points. Bharti Cellular, the largest GSM operator in the country, occupies the sixth spot in customer satisfaction. The final tally for the top five performers in various circles has Hutch leading with a score of 99 in Gujarat. In Madhya Pradesh, Idea, Reliance Infocomm and BSNL lead with 93, 91 and 90 points, respectively. In Mumbai, Hutch stands at the fifth slot with a score of 84. TNS Celltrack provides market information in 70 countries across the country. The average score given by the GSM subscribers in the country was 70 which was higher compared to the 54 points given by CDMA subscribers.

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Britons develop 'tooth phone'

British engineers say they have invented a revolutionary tooth implant that works like a mobile phone and would not be out of place in a James Bond spy movie.The 'tooth phone', designed by James Auger and Jimmy Loizeau, consists of a tiny and a radio wave receiver implanted into a tooth during routine dental surgery.The implant does not yet have its own microchip installed, but Auger says the technology is tried and tested, and a fully functional phone could be put together in no time at all."With the current size of microchips this is feasible. They are now small enough to implant in the tooth," he told Reuters on Tuesday.Sound, which comes into the tooth as a digital radio signal, is transferred to the inner ear by bone resonance, meaning information can be received anywhere and at any time -- and nobody else can listen in.The invention raises the prospects of financial traders receiving the latest stock market bulletins while at the cinema and politicians tuning in to secret briefings from advisers while being quizzed by opponents.Despite its similarity to high tech gadgets dreamt up by Bond's faithful sidekick 'Q', the inventors believe the gizmo could become the first in a whole suite of non-medical devices implanted into the human body.
Brief News
Mensamind, an Enterprise Software company, announced the launch mensablogs.com, a global multimedia mobile blogging portal enabling mobile camera phone users in India and across the world to instantly publish Text, Pictures, Audio and Video directly from their camera phones anytime, anywhere using MMS on GPRS, CDMA and 3G Mobile networks. As part of its initiatives to popularize the capability and business values of mensablogs, Mensamind and IndiaInfo.com, a leading consumer portal player have come together to offer mobile media blogging services to IndiaInfo customers in India and abroad and by doing so, IndiaInfo becomes the first consumer portal in India and South Asia to offer complete multimedia mobile phone blogging services. The effort goes live today! With this launch Mensamind becomes one of the first movers in the world to have a enterprise scale mobile wireless imaging communications and content publishing solution realizing the vision of developing exciting dynamic rich media content though camera mobile phones and mobile multimedia messaging services [MMS] for the consumers and business verticals such as News & Media, Homeland security, Real estate, Insurance, Healthcare.
Chinese handset company Kejian , has entered into a strategic arrangement with Rajgarhia Group to market its GSM-based mobile phones in the country. "Rajgarhia Group will be the sole distributor for Kejian phones in India and SAARC. When the market picks up further at a later stage, Rajgarhia Group would also mull a joint venture for assembling or manufacturing," P K Rajgarhia, Chairman of the Rs 500 crore Rajgarhia Group, told PTI here. He said the company has set an ambitious target to sell 250,000 units in India in the first year of operation. "The handsets will be introduced in the market shortly. We will be bringing in 3-5 s initially in low-end, medium and high end segments," he said. Kejian currently has in its stable 25 handsets.

Bharti Tele-Ventures , is close to striking a deal to acquire Hexacom, the cellular service operator in Rajasthan. The deal size could be about Rs 400 crore, according to sources. The promoters of Shyam Telecom currently have a 67.5% stake in the company, after it exercised the first right of refusal and acquired the 27.5% stake held by Telesystem International Wireless (TIW), a Canadian company. Bharti was also in the race for the Canadian company’s stake before Shyam Telecom’s promoters stepped in. When contacted by ET, Alok Tandon, a director on Hexacom’s board, denied that any deal was on the cards. “There is nothing happening right now,” Mr Tandon said. Some market sources said that the deal size could be bigger. Other sources pointed out that going by the valuation of the Hexacom circle by Bharti — Rs 102 crore for a 27.5% stake — at the time of acquiring the stake of the Canadian company TIW, Rs 400 crore seems realistic.

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1.The last call the victim made on her mobile phone was to the emergency services. It lasted for two minutes and contained a sequence of muffled sounds, but the police were unable to respond because they had no idea where she was when she made the call. The next day her body was found in undergrowth, and six months later the is still unsolved. If there is anything positive to be taken from cases like this, it is that they are a force for change. In September, a European Union directive called E112 came into force that requires mobile phone networks to provide emergency services with whatever location information they have about where a mobile phone call was made. Such a system might not have saved a life in this case, but it may well save others. Finding phones When a similar scheme was introduced in Britain for landlines a few years ago, response times to emergency calls improved dramatically, says Quentin Armitage, deputy director of technology for the London Ambulance Service. The aim is to make a similar improvement for cellphone emergency calls. While Europe is leading the way on cellphone positioning, other countries are not far behind. In the US a similar law will force network operators to track a phone's location to within 50 metres by 2005, and to make this data available to emergency services.

Network operators have been quick to spot the business opportunities this offers. If they can locate a caller for the emergency services, why not for other purposes too? Now the first businesses to exploit this information are beginning to appear and they provide a glimpse of the kinds of services we can expect in future. In the UK, the network operator Vodafone leads the pack. As the only one of the nation's five major mobile network operators to have met the EU directive's September line, its customers can already use their phones to find the nearest ATM, cinema or a plumber through WAP (wireless application protocol), the stripped-down web service designed for mobile phones. Just tell your phone that you want a flower shop or a Chinese restaurant and it searches local telephone directories to find the nearest hit. Another service allows businesses to track their employees particularly useful in the courier industry, for example. And a London-based start-up called Zingo has begun exploiting the service to put callers in touch with the nearest available taxi. Parents can even sign up to see where their children are, or at least where they left their mobile phones. Similar services are becoming available in other countries. A Stockholm-based company called It's Alive has launched a game that lets people hunt each other using their phones. And in the US, the Houston-based start-up Findtheone.com plans to offer phone owners a dating service that will alert them when potential partners who have also signed up are nearby.

This is just the beginning. Expect to see services become more accurate and widespread as the technology develops. Of course, there are teething problems. You could be forgiven for being underwhelmed with the positioning accuracy. Call Zingo, for example, and you may end up having to tell a human operator where you are if the system cannot get a fix on your phone. And what of fears about sinister surveillance? There is always going to be something slightly Orwellian about being automatically tracked. But the companies involved insist that personal privacy will not be compromised. "You don't have to register to use our service," says Ian Read of Zingo. "We are not worried about privacy issues because we don't know who you are."

2.IT 'S a modern conundrum : you 're too busy to be disturbed by incessant phone calls so you turn your cellphone off. But if you don 't remember to turn it back on when you 're less busy, you could miss some important calls. If only the phone knew when it was wise to interrupt you, you wouldn 't have to turn it off at all. Instead, itcould let calls through during spells of relative inactivity. A bunch of behaviour sensors and a clever piece of software could do just that, by analysing your behaviour to determine if it 's a good time to interrupt you. If built into a phone, the system may decide you 're too busy and ask the caller to leave a message orring back later. In a desktop computer, the system could stop instant messages or spam annoying you when you 're busy. James Fogarty and Scott Hudson at Carnegie Mellon University in Pennsylvania based their system on tiny microphones, cameras and touch sensors that reveal body language and activity. First they had to study different behaviours to find out which ones strongly predict whether you mind being interrupted. The potential "busyness" signals they focused on included whether the office doors were left open or closed, the time of day, if other people were with the person in question, how close they were to each other, and whether or not the computer was in use. The sensors monitored these and many other factors while four subjects were at work. At random intervals, the subjects rated how interruptible they were on a scale ranging from "highly interruptible" to "highly not-interruptible". Their ratings were then correlated with the various behaviours. "It is a shotgun approach : we used all the indicators we could think of and then let the statistics ferret out which were important," says Hudson. The showed that using the keyboard, and talking on a landline or to someone else in the office correlated most strongly with how interruptible the subjects judged themselves to be. Interestingly, the computer was actually better than people at predicting when someone was too busy to be interrupted. The computer got it right 82 per cent of the time, humans 77 per cent. Fogarty speculates that this might be because people doing the interrupting are inevitably biased towards delivering their message, whereas computers don 't care. The first application for Hudson and Fogarty 's system is likely to be in an instant messaging system, followed by office phones and cellphones. "There is no technological roadblock to it being deployed in a couple of years," says Hudson.

2.TRAI chairman Pradip Baijal told CNBC-TV18 that the regulator has recalculated BSNL's ADC to be about 10% of its sectoral revenues of Rs 40,000 crore (Rs Rs 400 billion). Currently, BSNL claims 30% as ADC. This will substantially bring down the amount of deficit from Rs 13,000 crore (Rs 130 billion), and in turn would lead to a reduction in call charges. Baijal says this will make the sector more viable. He explained, "It is very important for us to bring down the ADC from the unsustainable 30% to 10% because when you have 30% ADC, 92% was loaded on the fixed call. So, business moves from fixed to cellular, and instead of helping them, we make them lose business. Access deficit is basically a cross subsidy for telephony provided by BSNL in rural areas. This charge is borne by all operators who finally pass it on to the consumer.

3.Siemens Mobile and Ubiquity announced a strategic partnership for the integration of the Ubiquity SIP Application Server (Session Initiation Protocol) into IMS@vantage, Siemens' IP (Internet Protocol) Multimedia Subsystem (IMS). IMS is a platform that may be used by operators to quickly develop and deploy multimedia services for 2.5G and 3G mobile networks. With Ubiquity's application server, Siemens will be able to offer operators and open application manufacturers (OAMs) a software environment for designing multimedia and telephony services on the basis of SIP, the standard for networks of the future. Several mobile communication operators are already testing Siemens' first services based on the SIP Application Server and IMS@vantage, such as Push and Talk over Cellular (PoC), infotainment and telephone conferencing

4.Vodacom launched Africa's first location-based service using cellular networks, enabling Vodacom contract subscribers to locate any Vodacom cellphone user, provided the user consents to being located. "Being able to determine the general location of a cellphone has obvious value for family members who may require the peace of mind of knowing where their loved ones are," said Mthobi Tyamzashe, Group Executive - Corporate Affairs of Vodacom. To access Look4me, the command *120*888# is dialed in the same way as a standard telephone number. The customer then navigates a menu with options such as 'Register', 'Find cell user' and 'Who can find me?'. "South Africans live in a diverse and challenging country. Services like Look4me help put our minds at ease so we can enjoy the many positive aspects of living here," said Mr Tyamzashe.

Speaking without using vocal cords, knowing which direction a telephone call comes from, or even communicating with the five senses are some of the dreams of Japanese researchers for the mobile phones of the future.

5. Cloistered in their ultra-modern laboratories on wooded hills that plunge down to the sea an hour-and-a-half's drive south of Tokyo, some 900 engineers work on research and development for NTT DoCoMo, Japan's leading mobile phone carrier. Among them, researchers in the mobile communications, multimedia and networks laboratories spend their days dreaming up applications of the future, not just for fourth generation mobile telephony (4G), but 5G as well. "We are working on the five senses. Smell and taste will probably be the most difficult," said Toshio Miki, managing director of DoCoMo (news - web sites)'s multimedia laboratories. DoCoMo's third generation service, FOMA, the world's first, launched in October 2001, with a data transmission speed of 384 kilobits per second (kbps), makes it possible to talk by video-link or to look at an Internet site while talking on the phone. DoCoMo's next target is to achieve a speed of 100 million bps for 4G by 2010, and the researchers at Yokosuka demonstrate some of the functions they hope to introduce in the same time-frame. One of them would turn the mobile phone into a sort of tracking device to help find a friend in a crowded public place with no landmarks, something for which current phones are of limited use. It consists of recreating the sense of directional sound with the help of GPS (Global Positioning System). The other caller's voice would appear to come from the left or right, in front or behind to correspond with the actual location in relation to the listener. If the function is one day incorporated into a commercially available handset, it could make a three-way audio-conference more natural and lively and easier to follow. For example, the voice of a speaker in Hokkaido, northern Japan, would appear to come from the north for a person in Tokyo, and that of someone in southwestern Kyushu would appear to come from that direction. When using the videophone, the user would get the impression that the sound is actually coming from the mouth of the person on the screen. The concept, which is only in the first stages of research, is demonstrated by using headphones to listen to music while walking around a room. The mobile carrier is also researching the ability to recognise speech simply from the movement of facial muscles without the voicing of any sounds. The application could prove useful when discretion is required, silence must be observed, such as libraries, or conversely, where there is too much background noise. After three years, DoCoMo has succeeded in reproducing all five Japanese vowels with a voice synthesizer or on screen by applying electrodes to the cheek, between the nose and the upper lip and under the chin. The company is now working on reproducing consonants, a much larger number, which could prove more difficult. English sounds are also included in the study. With more than 45 million subscribers -- three million of them using the FOMA 3G service -- DoCoMo employs roughly 1,100 engineers in all on research and development in Japan with an annual budget of around 120 billion yen (1.15 billion dollars). It is in the unusual position as a carrier of conducting major research into mobile telephone hardware and setting the specifications for the manufacturers of handsets, says DoCoMo spokesman Nobuo Hori. "We are in very inimate relationships (with the handset manufacturers), he said. "We, at DoCoMo, are taking the initiative ... It is a different situation compared with European countries."


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