Intel said the much anticipated Manitoba, which integrates memory, wireless and processing functionality onto a single chip device, will fulfil expanding demand for 2.5G handsets as consumers switch from voice-only to GPRS voice and data services.
However, high-profile mobile technology companies have recently cut-back on R&D expenditure locally and Telstra says current 2.5G devices have sufficient functionality to meet the demands of their GSM GPRS networks.
Intel quoted Gartner and IDC statistics predicting that data-capable phones would account for 75 to 90 percent of the mobile market by 2006.
The devices will carry a mix of application functionality that includes games, personal organising and cameras.
Sean Casey, head of wireless computing for Intel Communications Group said the phones were high-end by current handset standards but predicts they will be common place within nine months.
"If you look at how quickly turn over their handsets its really less than two years so you think of all the [consumers] who are still on their voice handset -- almost half the market -- when they go to by a new one in 2004...that'll just be what you'll get at that time," said Casey.
Australia's telecommunications industry is moving conservatively when it comes to rolling advanced mobile data services in step with global uncertainty in the industry.
Australian carriers have postponed roll-out of 3G services and late last year Ericsson folded its Australian R&D back into its global headquarters. Yesterday Nokia took a leaf from Ericsson's book cutting staff in its network equipment making division citing "reduced need for hardware R&D work".
Casey conceded that demand for 3G was flat, but said that carriers are crying out for applications that would drive consumer demand for 2.5G data services.
"Go talk to your telecommunications company and they'll tell you one of the biggest problems they have is 'what are the applications that I can use on my network?'" said Casey.
Manitoba's an open architecture has the potential to broaden the amount of data applications developed for the mobile market.
However, according to Telstra the functionality of 2.5G devices currently on the market are on par with the requirements of its GPRS networks.
"With 2.5G GPRS the network was way ahead of the phones now 18 months later we have the phones," said the spokesperson for the company. "The capability of the handsets and the network are pretty much the same".
Optus, which has set a target of 25 percent of its revenues to originate from data services by 2005, pointed to some minor irritations in 2.5G device functionality such as picture resolution offered by handsets with in-built cameras. However a spokesperson for Optus said the company was more concerned about the number affordable 2.5G devices on the market. She said this was essential if data-application services were to evolve.
Casey said the new chip would allow vendors to introduce 2.5G devices to the mainstream market at a AU$100 to AU$250 price-point.
Intel expects manufacturers to begin releasing mobile devices built round Manitoba in around six months.
