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FOR SOME TIME NOW, I have discussed with those in the industry the void of market movement in the 56K Bluetooth modem space. So for that reason, it was especially positive to see that there were beginning signs for such products at the recent Blue-tooth Congress 2002. Two were shown at the CSR and Zeevo booths. It is looking like dial-up Bluetooth access points (AP) could be under the Christmas tree this year for the North American market.

The dial-up Bluetooth ALP will address the mass consumer market that does not want to spend $45 to $55 per month on a continual basis for broadband but is willing to spend a reasonable, onetime outlay for the benefits of untethered surfing and printing from their couch without installing a WLAN home network. If advertised and marketed aggressively enough, this could help to increase consumers’ knowledge of the benefits of products that offer Bluetooth cordless functionality then translate that knowledge into revenue. If not advertised and promoted effectively, these products could be slow to take off.

A greater level of consumer awareness of what Bluetooth is and what benefits it offers is the key to unlocking the box of consumer demand. Though knowledge is increasing, the low level of familiarity of Bluetooth by the average consumer is ensuring that mobile phone operators are still not feeling the consumer demand for Bluetooth-enabled handsets. Nokia and Motorola are very common phones in the United States, but Ericsson is not. Sony Ericsson has been the most aggressive Bluetooth-enabled handset manufacturer to date, but there has not been a significant push or driver thus far in the United States.

Since operators subsidize so many phones, it is necessary for them to see some benefit to offering Bluetooth-enabled phones to their subscribers. So they need to reap a return in terms of customer loyalty (for lower churn), obtaining new subscribers, or revenue. Driver safety alone could be a significant trump card in offering subscribers additional benefits. If operators begin to bundle mobile phones and Bluetooth headsets in an aggressive manner, in conjunction with a marketing campaign targeting hands-free use in vehicles for safety, demand could increase quickly.

On the acquisition front, comments were recently flying around regarding the acquisition of Ericsson Microelectronics by Infineon Technologies. The deal is expected to close in about two months. Infineon gains the module business via Ericsson, inroads to supplying semiconductors into wireless infrastructure and a supplementary customer list. Previously, STMicroelectronics began its acquisition of the wireline and wireless groups of Alcatel Microelectronics, while American Microsystems Inc. began its acquisition of Alcatel Micro’s mixed signal group. The acquisitions of Ericsson Microelectronics and Alcatel Microelectronics do not directly affect current market shares of Bluetooth chipsets.

Recent announcements by Texas Instruments for a $4 (BOM) Bluetooth solution via a ROM-based single chip and by Infineon Technologies for sub-$3.75 pricing (both high volumes) have set a new bar. Both use leading 0.13-micron RE CMOS processes, and volume production is planned for Q12003. Philips Semiconductors announced an affiance with Ericsson Technology Licensing for audio/video solutions. For space-constrained applications, Motorola will go into production in Q4 with a stacked chipset die solution in a 7mm-by-7mm-by-1.6mm BGA package. The price will be the same for the company’s separate radio and baseband.

Coexistence solutions were demonstrated by Silicon Wave (Blue802) and Zeevo (alternate wireless media access, or AWMA). Neither is based on the not-yet-finalized adaptive frequency hopping (AFH) scheme. These mechanisms are geared especially toward the PC market since the front-end can get overloaded in co-located situations (such as a laptop), which can still present a problem with AFH. The first coexistence solutions to hit the shelves are expected in the next six to nine months.

In-Stat/MDR estimates Bluetooth chipset shipments will climb from 10.4 million units in 2001 to 48 million this year, growing to 150 million in 2003.

Joyce Putcher is director and principal analyst of InStat/MDR’s Converging Markets & Technologies Group. She can be reached at jputscher@instat.com. InStat/MDR owned by Reed Business Information, the parent company of Electronic News.

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• International HS830 Bluetooth headset kit is dual voltage 110 and 220 voltage
• Hands-free device includes an adapter for the US wall sockets
• Smart accessory for any Bluetooth-enabled cell phone
• Headset offers latest Bluetooth version 2.0
• Enhanced Data Rate (EDR) for faster pairing and connection, improved call quality, and lower power consumption
• Compatible with Bluetooth version 1.2 and 1.1 devices
• 7 hours talk time, 150 hours standby time
• Has a range of up to 33 feet
• Unidirectional microphone allows for clear conversations in noisy environments
• Ergonomic earpiece is wearable on either ear
• One-touch control effortlessly allows you to power the headset, receive and end calls, and place callers on hold

Includes:

• 1 (one) Motorola HS830 ear set
• 1 (one) Motorola AC wall charger – 220 volts
• 1 (one) Motorola original neck strap
• 1 (one) adapter for the US wall socket
• Owner’s manual

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Bluetooth Makes it Easy for All Your Devices and Accessories to Work Together

Bluetooth is one of the latest marketing buzzwords for PDAs and cellular phones, along with PCs and especially laptops. It is a wireless technology designed to let products and accessories built by different manufacturers work together, without requiring special access codes or driver installation. Theoretically, any Bluetooth accessory should work with any Bluetooth-enabled device, and multiple accessories working with the same device shouldn’t interfere with each other.

For example, if you pick up a Bluetooth headset for your current PDA, and then in a year’s time replace it with a new PDA, the headset should work with the new PDA without any difficulties. With some older PDA Bluetooth accessories and devices, this is not always the case, but generally the more recent the design of the accessory or device, the more likely it is to work with other Bluetooth products.

PDAs, Cellular Phones, and Computers

New PDAs today resemble cellular phones as much as classic PDAs like the Palm Pilot. Most of these devices are Bluetooth-enabled, and even have the capability to link with other Bluetooth-enabled PDAs and cellular phones to exchange data. For models that are not Bluetooth-enabled, there are frequently PDA Bluetooth accessories available that will add Bluetooth capabilities to the unit. Bluetooth adapters are also available for PCs and laptops, usually plugging into a USB port, allowing you to easily exchange data between your computer and your PDA.

Just about any type of data can be transferred over a Bluetooth link, from electronic business cards and pictures to word processing documents and PowerPoint presentations. For transferring data from a PDA to a computer, special software is often needed and included with the Bluetooth adapter. However, PDAs running Windows Mobile can communicate natively with computers running Windows XP Service Pack 2 or Windows Vista.

Having a Bluetooth PDA and a Bluetooth adapter for your computer can eliminate the need for a docking station or sync cable, removing one more piece of clutter from your desktop. You can even set the two devices up so they automatically synchronize their data when they’re in range of each other.

Other PDA Bluetooth Accessories

Headphones and headsets are the most common PDA Bluetooth accessories right now. Wireless headphones are great if your PDA has music stored on it, because you don’t have an unsightly wire running from your head to your pocket or purse. Headsets and earpieces allow hands-free operation of your cell phone or smart phone, which is not only convenient but is also quickly becoming a legal requirement world-wide for using your phone in your car.

Printer manufacturers are quickly adding Bluetooth capabilities to their products, turning them into convenient PDA Bluetooth accessories. Previously, to print something stored on your PDA, you had to use the docking station or sync cable to download the information to your computer, then print it from the computer. With a Bluetooth-enabled printer, you can send your data directly to the printer without the intervening steps. If your computer is also Bluetooth-enabled, it can send data to the printer as well, eliminating the need to hook up the printer to the computer or network.

There are many other PDA Bluetooth accessories available for your PDA, and with Bluetooth it doesn’t matter who manufactures either the device or the accessory. A Motorola headset will work with an iPhone, and a Palm Tungsten can print spreadsheets on a HP LaserJet. Manufacturers are constantly coming up with new PDA Bluetooth accessories to meet the demands of consumers. Bluetooth technology is making it easier for everyone to communicate.

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• Convenient accessory for any Bluetooth-enabled cell phone
• Headset allows total mobility without compromising communication clarity
• Stream-lined headset design with ergonomic earhook for form-fitting comfort
• Compatible with Bluetooth-enabled mobile phones that support headset and hands-free profiles
• Enhanced audio performance
• Up to 8 hours talk time
• Up to 130 hours standby time
• Multi-function button controls 3-way calling, call start and end, hold, and mute
• Removable earhook allows headset to be worn over either ear
• Advanced volume controls
• Blue LED status indicator
• Available in grey, blue, glossy black, pink, or white color options

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