CTIA Is in the Groove

The CTIA Wireless I.T. & Entertainment show was recently named to the 2006 Tradeshow Week Fastest 50 list, but there was a time when things weren't so rosy. Luckily for CTIA — the Wireless Assn., those days are over.

Show manager Rob Mesirow, vice president of operations for the association, said this year's event, held Sept. 12–14 at the Los Angeles Convention Center, has returned to pre-Sept. 11 levels, attracting an estimated 15,000 attendees and 300 exhibitors to an 83,700 square foot showfloor.

And the future looks even brighter.

CTIA held a lottery before the show, and Mesirow said he had already sold more space for next year's event at the Moscone Center in San Francisco than was sold for this year. "The buzz is good, and hopefully it will continue to grow," he added.

According to a CTIA survey, there are now more than 219 million wireless users in the United States, which is 25 million more than at the same time last year. Wireless usage generated total revenue of $60.5 billion for the first six months of 2006.

Those are impressive numbers, but data service revenues, which include entertainment downloads and text messaging, was worth only $6.5 billion for the first half of this year. What's more, estimates are that 15 percent of those 219 million users did more with their phones than just have a telephone conversation, indicating that the data services market is poised for explosive growth — and with it, CTIA Wireless I.T. & Entertainment.

"It's constantly growing over the years so far," Mesirow said. "We need to continue to be a driver, as well as a reflection of what goes on in the industry."

The entertainment and wireless industries look to be paying attention to the show, evidenced by the high-caliber keynote speakers on each of the three-day show and the flurry of deal announcements made in conjunction with it.

California Gov. Arnold Schwarzenegger was a surprise keynote the first day and discussed, among other topics, the key role wireless would play in creating new jobs for the state.

Peter Chernin, president and COO of News Corp., opened the second-day keynote on mobile content by telling the crowd, "The people in this room will determine the future of entertainment."

Wall Street Journal tech columnist Walter Mossberg moderated another panel that day that included Michael Lynton, chairman and CEO of Sony Pictures Entertainment; Lowell McAdam, executive vice president and COO of Verizon Wireless; and Mitch Lasky, senior vice president of EA Mobile.

"Mobile entertainment is just one step away from exploding," Chernin said. "Two times the people have cellular phones than TVs worldwide."

Everyone on stage agreed there's plenty of potential for growth, but there were also a number of obstacles to overcome before it would be realized, among them the need for standardized handsets and easier content format and delivery. Ringtones are currently the most popular downloads, but music, games and videos are perceived to be primed for breakthrough as more companies develop content.

Celebrity Paris Hilton was also on hand the last day of the conference to promote a mobile video of her new song, "Stars Are Blind."

Following are a few of the wireless entertainment announcements made at CTIA:

• Nokia, the world's largest mobile communications company is collaborating with interactive software firm Electronic Arts on a deal to make EA the major supplier of mobile games to Nokia mobile phone users;
• Thumbplay, a mobile entertainment content retailer, signed a distribution deal with the Walt Disney Internet Group; and
• News Corp. acquired a majority-stock position in content provider Jamba!

Mesirow said show attendees ranged from record label and studio execs to C-level executives with wireless companies.

Exhibitors were not only brand names in the wireless industry, such as Motorola, Qualcomm and Blackberry, but also smaller companies hoping to score their first big deals.

Exhibitor Dave Bell, vice president of business development for content licensing company PlayPhone, said that throughout the show he had meetings booked every 30 minutes.

"The people we need to make deals with are here," Bell said.

The larger CTIA Wireless 2006, No. 63 on last year's TSW 200 with close to 400,000 net sq. ft., 40,000 attendees and 965 exhibitors, was held in Las Vegas earlier this year.