Vecta on Hauser's fears for the European Mobile Industry

Vecta Consulting

Vecta on Hauser's Fears for Europe's Mobile Industry

Herman Hauser, Founder and Partner of Amadeus Capital Partners, fears that Europe will not dominate the mobile data world in the same way it has with mobile voice.

He believes that the multitude of necessary services are more likely to emerge in the US where small companies are supported better.

The PC era was characterised by major US companies controlling various key layers of the horizontal market that developed around standards they set. The era was dominated by Intel's processors being built into PCs from Compaq, Dell, and IBM, and with software supplied by Microsoft.

In contrast, the mobile era was driven by European standards for GSM with processor designs provided mostly by ARM with software often provided by Symbian for handsets provided by Ericsson and Nokia for Vodafone as dominant global Network Operator.

Despite the setbacks of the last two years, with many technology companies failing and the weak IPO market preventing funds being released for reinvestment by VCs, the US is still investing far more in new ventures than happens in Europe.

With the fundamental technology drivers of processing power, memory cost / performance, optical bandwidth value still escalating at factors of x2/18m, x2/12m, and x2/9m respectively, and Internet traffic growing at similar rates , new possibilities are emerging continuously.

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