As new multimedia functions and multiple RF technologies are being built into handheld wireless devices, we are seeing the three worlds of communications, computing and consumer electronics come together in a single device.

These new multifunction devices open up new opportunities for mobile operators to extend their service offerings, drive up ARPU and reduce churn. Yet the parallel trend of integrating non-cellular technologies, such as WiFi and Bluetooth, to create multi-mode devices, may benefit fixed operators rather than mobile operators.

These trends are also bringing the device and its suppliers – both handset vendors and operators – into competition with traditional and new media devices and services such as digital cameras, music players, PCs and even the ubiquitous TV set.

However, these trends could also encourage collaboration previously unheard of between entertainment/media companies and telecoms service providers, and between consumer electronics and telecoms device vendors.

Two new battles are analyzed in this study – "battle of the B.O.M. (Bill of Materials) and "battle of the brand."