3GSM: Wireless sharpens its edge in Barcelona

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Currently, most location services are based on GPS technology, which allows satellites orbiting the Earth to track location. But the technology is not foolproof. Because it uses satellites, it's often unable to give accurate location information for people in dense urban areas or indoors, where satellite signals can't reach.

A company called Skyhook Wireless has developed a Wi-Fi?based positioning system to determine location. Last week, SiRF Technology Holdings, a leading provider of GPS-enabled silicon, said it will license Skyhook's technology to create a single positioning system for wireless carriers that combines the best of both GPS and Wi-Fi technologies. The two companies will demonstrate the new hybrid GPS-WiFi location technology at 3GSM.

Mobile TV
If 2006 was mobile TV's coming-out party, 2007 is the year that operators demonstrate the technology and talk about real deployments. Telecom equipment maker Ericsson plans to offer a live demonstration of its Multimedia Broadcast Multicast Service (MBMS), a technology that uses existing 3G network infrastructure to broadcast TV. The demonstration follows Ericsson's successful completion of the world's first live MBMS trial in 2006 and is a precursor to the commercial rollout scheduled for 2008.

While Ericsson's MBMS technology is a much cheaper solution than other proposed mobile TV technologies, most European carriers seem to be leaning toward a different technology, called DVB-H (digital video broadcasting--handheld). DVB-H got a significant boost from handset makers Nokia and Motorola in September when they announced they'd develop DVB-H handsets. Blog sites are buzzing that Nokia may even debut its N77, low-end DVB-H phone at 3GSM. The phone will likely sell for about $260 to $390 (200 to 300 euros).

There are other mobile TV standards being tested as well, including DAB-IP (digital audio broadcasting--Internet Protocol), used by BT and Virgin Mobile and MediaFlo, the Qualcomm standard being pilot-tested by Sky Broadcasting's Sky Link. Verizon Wireless in the U.S. announced earlier this year that it will use MediaFlo to offer its new V Cast TV service, which is set to launch in the first quarter.

In addition to new technology, new content will also debut at 3GSM. Robert Redford's Sundance Institute is teaming with GSM Association to launch the "Sundance Film Festival: Global Short Film Project." Announced last year, the project has commissioned several filmmakers to make movies especially for cell phones. The films will show Monday at 3GSM. The movies, one of which was created by the team that directed Little Miss Sunshine, will be about five minutes long. Many of GSMA's 700 mobile operators are expected to make the movies available on their networks after 3GSM ends.

Cool phones

And what would a mega mobile trade show be without new phones? While it's unlikely that Apple will announce a European partner for its iPhone, the iPod/phone won't be far from the minds of device makers, who are looking for ways to top Apple's product, which is due out in the U.S. market in June.

Sony Ericsson will be showing off its W880i, a super-thin 3G music phone that can store up to 900 tracks. The three big cell phone manufacturers Nokia, Motorola, and Samsung are all expected to show off their latest and greatest products. Yankee Group's Hatton expects to see a lot of smart phones geared toward business users. For Nokia this means enhancements to its E-series phones, such as the E62 and the new E65 slider, and for Motorola new features for the Q. Motorola will also be showing off its thin music phone, the KRZR K3. Research in Motion is expected to show off the 8800 "Indigo" device. And Samsung is likely feature its new ultra thin 3G phones, called the Ultra Edition II.

Low-end phones geared for the emerging markets will also be on display. And the GSMA is expected to announce which mobile device manufacturer has won a contract to supply between 10 and 12 operators in the developing regions of the world with phones costing less than $100, Hatton said. Word is that LG will likely be the supplier. By banding together and selecting only one supplier, manufacturers are guaranteed the necessary volumes to keep prices low.

Nokia showed in the fourth quarter of 2006 that manufacturers can target the low-end of the market without taking a huge financial hit.

CNET News.com's Elinor Mills contributed to this report.