MOBILE ELECTRONICS AND WIRELESS COMMUNICATIONS
Loyd Ivey - Chairman and CEO, MTX Chair, CEMA Mobile Division
Printed in 1999

Top Mobile Electronics & Wireless Communication Trends Convenience, safety and efficiency for drivers are being bolstered by a convergence of products among car stereos, security systems, wireless phones and navigation systems. The intelligent transportation systems data bus (IDB), a serial communication bus that creates an open, non-proprietary standard architecture, will allow multiple electronic devices to be installed in any vehicle in 2001 expanding the possibilities for cooperation among mobile electronics manufacturers. The broadening of distribution channels to national chains is increasing the after market sales opportunities for products. Designed for road warriors, the in-car computing category is attracting attention from consumers and manufacturers. Digital technology is bringing new services such as voice mail, computer messaging, e-mail and Internet access to a variety of wireless devices including cellular and PCS phones, pagers and handheld units. Third-generation terminals will be able to transmit and receive a combination of digital information, including speech, pictures, video and personalized content.

It seems you can't go anywhere without hearing the word "convergence" these days-particularly in the mobile electronics realm. In the early days of the product category, a stereo played music, a car alarm sounded sirens and car phones were the central method of wireless communication. Today the divisions among car stereos, security systems, wireless phones and navigation systems continue to blur, especially as a new wave of computer-driven mobile electronics products hit store shelves.

These present and future technologies spell convenience, efficiency and safety for drivers and big bucks for the mobile electronics industry. CEMA forecasts a 4 percent uptick in overall mobile electronic industry sales this year to $8.5 billion thanks in part to multimedia for the car and new technologies linking drivers to the Internet, traffic reports, data, navigation and emergency roadside assistance, among other services. And by the end of the year, the first products to employ the intelligent transportation system data bus (1DB) are expected to be on the market, creating new possibilities for drivers.


Industry Cooperation
Apart from products, however, 1998 also fostered another type of convergence-that among mobile electronics manufacturers themselves. A combination of factors, including continuing challenges from other industries competing for the same dollar, instilled a renewed sense of working together to meet common goals. For mobile electronics manufacturers, 1998 wasn't just a year of cooperation, it was a year of collaboration.

For example, the industry united in 1998 for the first ever Sound-Off Summit. The meeting brought together leading autosound manufacturers, sound-off associations and representatives from CEMA to outline common strategies to improve the marketing abilities of sound-offs-grassroots competitions among autosound enthusiasts to see whose vehicles have the most powerful sound systems.

The industry also collaborated in its development of FUSE '98, a first-of-its-kind marketing effort designed to bring consumers, competitors and manufacturers together for a central industry event. The event proved to be one of the most ambitious marketing functions the industry has jointly supported.

Mobile electronics manufacturers, along with CEMA, joined in support of the Mobile Electronics Retailers Association's (MERA)

For mobile electronics manufacturers, 1998 wasn't just a year of cooperation, it was a year of collaboration.

successful National Tour of Knowledgefests. The national tour brought industry associations, publications and manufacturers together to help further educate mobile electronics dealers.

There was continued convergence with other pastimes whose enthusiast demographics seem to mirror those of mobile electronics. Several mobile electronics manufacturers tapped into the motorsports frenzy by sponsoring races or exhibiting at automotive performance events, like Hot Import Nights in Southern California or the NOPI Nationals in Georgia. Whether it was sponsoring in-line skating competitions, providing corporate sponsorships of the U.S. surfing finals, or donating money to build a skateboard park, mobile electronics manufacturers were there, bringing attention to the mobile electronics category.

The industry also has worked together to support the IDB, a serial communication bus that creates an open, non-proprietary standard architecture allowing multiple electronic devices to be installed in any vehicle. With plans for introduction in model-year 2001 vehicles, the IDB expands the possibilities for mobile electronics manufacturers to work together. As the industry faces new challenges, including 36/42-volt power systems that some carmakers will adopt as early as the 2002 model year, look for the mobile electronics industry to continue working together in 1999 and beyond for the industry's common good.


Certification
CEMA's Mobile Electronics Certification Professionals (MECP) program. which has certified more than 6,500 installers since its inception in 1991 saw the benefits of a unified industry particularly as more national retail chains adopted MECP certification plans. The organization launched an awareness campaign with its MECP retailer marketing contest, which was widely supported by retailers and manufacturers. MECP charted new territory as well, particularly with the addition of the mobile specialist professional (MSP) category. Unlike other certification levels designed mainly for technicians in the install bay, the MSP test marks the industry's first certification program designed specifically for the store's sales staff. Both manufacturers and retailers agreed to step up efforts to bring attention to MECP certification, jointly deciding to call program graduates "mobile electronics certified professionals."


Car Audio
Aftermarket autosound manufacturers saw a rise in dollar sales this year, jumping from $1.81 billion 1997 to $1.86 billion in 1998. Though still short of the sales figures experienced in the mid-1990s-reaching as high as $1.93 billion in 1995-the rise is nonetheless a welcome change. Despite growth in dollar sales, however, the product category continues to face obstacles.

Such challenges include improved original equipment manufacturer (OEM) autosound systems, the continued popularity of vehicle

In-dash CD player and multi-disc CD changers remain the two biggest-selling aftermarket upgrades.

leasing and competition from other entertainment mediums like home computers and video gaming. Demographic changes. too, have affected the aftermarket autosound category, with fewer consumers than in years past between the ages of 16 and 24-car audio's traditional market.

One trend that may account for aftermarket autosound's growth is the broadening of distribution channels to national chains. At least two major autosound manufacturers noted for product geared specifically to specialty dealer-Rockford Fosgate and Clarion-have signed agreements with large retail chains to carry product on a national level. While these companies still continue to offer protected product lines to specialty dealers, the availability on a national level increases exposure to the buying public. Also, merchandisers such as CarMax (owned by Circuit City) will begin selling autosound id security products.

National mass merchandisers, too, have stepped up their presence in the mobile electronics arena by adopting CEMA's MECP into their staffing structure. The national chains have increased participation in industry events, including hosting on-site events on behalf of the industry's sound-off sanctioning organizations, a trend traditionally embraced by specialty dealers and regional chains.

Perhaps the largest reason for growth in the aftermarket autosound category is in the technological advancements achieved in 1998. In-dash CD players and multi-disc CD changers remain the two biggest-selling aftermarket upgrades, with 22 percent of all U.S. households owning at least one car CD player, according to CEMA research.

The 1999 International CES saw several manufacturers introduce in-dash CD changers, capable of switching CDs in a DIN-sized chassis. This allows consumers to switch three, four or six CDs (depending on the model) without a peripheral changer in the trunk or glove compartment. While the technology for in-dash CD changers can potentially cut down on sales of trunk-mounted CD changers, it's still to be determined if such DIN-sized changers have low-enough price points to make serious inroads in the trunk-mounted changer market.

The growing use of digital technology has raised the bar for many autosound manufacturers, while capturing interest from autosound consumers. The past year, for example, saw the introduction of head units that can digitize AM and FM signals for manipulation by digital signal processors (DSPs). The need for more powerful amplifiers, despite companies introducing models that can deliver as much as 2,000 watts, has prompted increased development of "digital amplifier" models that use Class D. The technology converts the amplitude of a signal into time-based databits, which are amplified through a switching process and reconstructed into an analog signal. Such amplifiers are designed to improve efficiency and therefore give autosound enthusiasts additional power.

Another digital technology that made a renewed return to the mobile electronics realm is the MiniDisc (MD), a small disc on which consumers can record material digitally from CDs without signal degradation. Originally introduced in the U.S. market in the early 1990s, MD car stereo equipment received only limited acceptance. New MD products were introduced with a revamped marketing strategy targeting consumers who want to record mixes of their favorite songs from their CD collection for listening in their car or on portable MD players.
According to CEMA research, 28 percent of consumers have copied CD material onto a cassette tape, while 24 percent have recorded a mix of their favorite CD music onto a cassette. There still seems to be interest in compiling favorite music from different origins onto one source.


Factory Install Rates
Dollar sales of domestic factory-installed autosound have continued an overall decrease from the early-to mid-1990s. Dollar sales for 1998 were $2.6 billion, compared to $3.2 billion in 1994. Upgraded sound systems, including deluxe combinations that combine CD players, amplifiers and as many as 10 speakers, continue to be offered as options for most vehicles.

According to CEMA's 1998 OEM Mobile Electronics Market Trends Guide, CD installations continued their solid growth pace since the

As OEM autosound systems continue to improve, new car owners increasingly remain satisfied with factory-installed systems, reducing the desire to upgrade.

late 1980s with 17.9 percent of 1997 domestic cars having factory-installed CD players, up from 14.7 percent for 1996 model year cars. CD installations are even higher on import cars, as 33.2 percent of 1997 model year import cars had CD players compared to 26.9 percent for 1996 import cars.

In the light truck and van categories, CD installations have seen a dramatic rise in the past two years. On the domestic side, CD installations are up 28.8 percent for 1997 model year domestic trucks and vans, rising from 21.1 percent in 1996 and 7.9 percent in 1995. Mirroring the import car market, CD installations are even higher with import trucks and vans as 1997 numbers hit 29.7 percent, up from 25.6 percent in 1996.

As OEM autosound systems continue to improve, largely due to joint ventures between automakers and autosound manufacturers, new car owners increasingly remain satisfied with factory-installed systems, reducing the desire to upgrade. Vehicle leasing, estimated to comprise nearly 30 percent of new cars sold in 1998, discourages leased vehicle drivers from upgrading their sound systems, despite proven installation techniques that avoid any permanent alterations to the car.

Some car owners have been challenged by aftermarket installations due to the trend of interfacing factory-installed car stereos with other vehicle functions. Such interfacing at times makes it difficult to swap the factory head unit without affecting other functions such as keyless entry, climate controls or the ability to increase volume automatically as the car's speed increases.


OEM/Aftermarket Integration
Fortunately, the mobile electronics industry has been able to respond to such OEM challenges. Manufacturers have been rolling out more direct-fit head units, designed to replace the 1.5-DIN and double-DIN chassis sizes that have been rising in popularity among factory-installed stereos. Even despite higher points, specific-sized head units allow professional installation dealers to sell and install equipment that fits directly the dashboard stereo opening, than fitting a single-DIN chassis into the larger opening via a modification kit.

One of the hottest vehicles of 1998, the new Volkswagen Beetle, for example, threw a wrench to the aftermarket with its OEM stereo.

Manufacturers have been rolling out more direct-fit head units, designed to replace the 1.5-DIN and double-DIN chassis that have been rising in popularity among factory-installed stereos.

The unit's curved facia made it difficult to upgrade the head unit tastefully with an aftermarket model. By mid-year however, a kit designed to make such an upgrade possible became widely available (and subsequently received a 1999 Innovations award from CEMA). Such kits, which are finish-matched to OEM textures and colors, helped to make the new Volkswagen one of the most popular auto sound demo vehicles of the year.

Other growing trends that affect integration with factory-installed autosound include the growing use of vehicle-specific. pre-loaded subwoofer enclosures. Tastefully designed to integrate with new vehicles on a car-by-car basis, pre-loaded subwoofers help target leased vehicle owners by offering pre-matched, direct-fit products that can be installed in a vehicle without permanent modifications. Some models even have integrated built-in amplifiers and crossovers into the pre-loaded subwoofer boxes.

When aftermarket equipment lacks integration features, installers turn to the growing adapter market, which provides wired allowing aftermarket products to function electronically with OEM equipment. For example. a popular aftermarket changer be integrated with an OEM head unit with the addition of a plug-and-play adapter.


Vehicle Security
Dollar sales for aftermarket vehicle security systems have continued to rise, more than doubling the sales figures experienced just five years ago. Sales reached $330 million in 1998, compared to $325 million in 1997. Five years ago, the figure was Just $161 million.

Conversely, FBI statistics show that overall car theft has decreased steadily in the past six years. While several factors have contributed to the decrease of car theft, the role the security industry has played cannot be underestimated. Along with a rise in sales is the steady evolution of technology. From the dinosaur-like fender key systems of the early 1970s, to sophisticated devices that use satellite technology to locate a vehicle within 60 feet, it's no wonder the industry has seen such promising sales figures.

Vehicle security systems are improving in terms of ease of use and reliability. Transponder-based systems, due to their simplicity, have become increasingly popular. Such systems require practically no interaction from the car owner-there are no buttons to push,

Vehicle security systems are improving in terms of ease of use and reliability.

codes to enter or keys insert. The keychain transponder simply allows users to get in their car, put the key in the ignition and drive. Reliability has improved with more advanced sensors, which analyze pitch, yaw and motion data, detecting less than one degree of movement.

Vehicle security manufacturers have developed solutions to the growing use of multiplexing, a car's ability to send multiple signals on a single wire. Recent vehicles introduced by Nissan, Lexus and have been notoriously difficult to integrate with aftermarket security. Manufacturers have responded by introducing several multiplex databus interface modules, allowing a two-wire vehicle connection to integrate such features as door-lock control, door switch monitoring and domelight and horn control.

Along with traditional vehicle security systems, the industry has developed hybrid products that encompass global positioning system (GPS) and wireless technologies to create a 24-hour monitoring system. These systems, some of which include partnerships with nationally recognized home security providers, offer such services as pinpointing a vehicle for emergency services like police and ambulance assistance. Others provide limited navigational services, while others even allow consumers to track vehicles on their home PC (allowing parents to keep an eye on where their newly licensed 16-year-olds are driving). As more vehicle manufacturers open their data buses, the scope of vehicle tracking/recovery systems is expanding to include monitoring internal vehicle functions, like providing low battery warnings or sending for an ambulance if the system detects that an airbag has been detonated.

With Convenience features like remote starting or keyless entry gaining popularity, the quest for range has stepped into the forefront. Considered a great limitation with OEM systems, today's aftermarket remote starters can start the car from as far as a quarter-mile away, allowing consumers to cool or heat their cars even from the most distant of parking spaces.

Of course, range is no factor if the alarm and/or convenience interfaces with a pager. Car owners can use a telephone or the Web to

Parking assist systems alert drivers as to how much room is in front of or in back of their vehicles as they park.

start their car turn on their heater or air conditioner, disable the engine or even unlock their cars when the keys are locked in. Such systems also bolster for manufacturers with the added revenue generated from the fees that accompany services.

Other convenience and/or safety features that mobile electronics manufacturers are adding to the mix are backup sensors or parking assist systems. These sonic sensors alert drivers as to how much room is in front of or in back of their vehicles as they park. Consumer interest in such systems is growing rapidly, especially as carmakers like BMW and Ford continue to promote such OEM systems in their television commercials.

Another Convenience product being introduced from security manufacturers are transmitters that link to such home systems as doors, electronic gates and systems to turn on house lights. Already, some foreign car manufacturers are offering such systems as an OEM feature. Inifiniti, Mitsubishi and Nissan offer this device on 24 standard-equipped lines and another six optionally-equipped lines.

Overall, CEMA research shows that 29 percent of all U.S. households own an electronic vehicle security system of some type. Of those with electronic car alarms, almost three out of four systems that include keyless entry devices. Other good news for vehicle security manufacturers is that at least 14 states now require car insurance companies to offer discounts for anti-theft devices, ranging from 2 percent in Texas to 35 percent in Massachusetts.

Despite the growth, however there are some hurdles which the industry still copes. Continuing competition with the automotive manufacturers is one. The other is the perception some that car alarms are just noisy devices that trigger any time the wind blows. The industry has addressed that problem by designing sensors that are more able to differentiate between an intrusion-related impact and other stimulants such as a passing car or a loud car stereo. Apart from headaches caused by the occasional false alarm, the benefits to personal safety certainly make a strong case for security systems.

A 1997 CEMA survey shows that 87 percent of car alarm owners consider personal safety and protection "very important reasons" to buy an alarm, a trend prompting manufacturers offer personal safety features. The most common feature is the panic button, which sounds

29 percent of all U.S. households own an electronic vehicle security system.

the alarm from a keychain remote control if drivers believe they are in danger as they approach their car.

Despite the decline in car theft, however the need for security systems remains high, especially when weighed against the overall cost of car theft. In 1997, for example, the national motor vehicle theft rate was 506 per 100,000 people. This rate was 4 percent lower than in 1996 and 13 percent lower than in 1988. At an average value per vehicle of $5,416, this represents more than $7 billion (and that does not include stereo equipment, accessories and wireless phone equipment stolen from vehicles every year).


OEM Security Systems
According to CEMA's 1998 Mobile Electronics Market Trends Guide, OEM anti-theft device installations on 1997 model year U.S. car production soared to 23 5 percent from 9 2 percent in 1996. Keyless entry device installation also jumped, rising from 29.1 percent in 1996 to 40.9 percent for 1997 domestic vehicles, reversing a two-year decline. Security and convenience manufacturers have responded with add-on security systems and remote starters that can integrate with factory keyless systems. In most cases, they even operate with the car owners' OEM remote controls.

Many of these OEM security systems, particularly among domestic vehicles, would be better categorized as anti-theft systems, rather than security systems, however. Such systems may a car thief from starting the vehicles, but they would not necessarily prevent car stereo systems from being snagged. Take GM's system, which requires a specific resistor value to be able to start the car.

Though these systems add a of security for new car owners, they integrating aftermarket remote starters into the system more

70 percent of car owners want a vehicle PC to send emergency distress signals.

difficult. Because the demand for remote starters in such vehicles remains strong, however vehicle security manufacturers have responded systems that simplify the integration between remote starters and factory anti-theft systems, like PassLock and the Ford passive anti-theft system (PATS).

Automakers also offer their own version of GPS-capable hybrid systems, like GM's OnStar and Ford RESCU. While such systems are gaining popularity among car owners, aftermarket mobile electronics manufacturers continue to have the upper hand in their ability to develop new technology due to their shorter production cycles.


Mobile Entertainment
Whether called mobile multimedia, rear-seat entertainment or home theater-in-a-car, the mobile electronics field offers a host of products designed to enhance further mobile entertainment. Geared primarily larger vehicles like mini-vans and large sports utility vehicles, manufacturers have launched such products as in-vehicle video monitors, 12-volt video cassette players and in-dash surround sound decoders.

Though still high-end items, LCD video monitors are available in several formats, including rear-headrest, center console and

70 percent of car owners are interested in the safety features of car PCs.

in-dash flip-up versions. Manufacturers continue to introduce consoles that tastefully small-screen televisions with 12-volt video cassette players and TV tuners and video game consoles enabling parents to address more adequately the "are we there yet?" syndrome.

Touch-screen LCD color monitors were introduced in 1998, as well as a wide-screen version, complete with a 16:9 aspect ratio and two audio/video outputs. Other manufacturers have found success in their ability to market several of the aforementioned items in one combination pack. At least one major manufacturer, Panasonic, offered a portable DVD player at the 1999 CES, which some resourceful installers have integrated into a car environment. While several manufacturers have promised in-car DVD players in 1999, surround sound decoders became a reality in 1998. An offshoot of the home theater industry, 5.1-channel surround sound delivery methods have moved into the mobile world, with two decoding methods at the helm, Dolby Digital and DTS.

Two 12-volt DTS processors debuted at the 1999 CES, designed to decode discrete multi-channel DTS CDs and any matrix-surround-encoded music. Another manufacturer, Alpine, promised delivery of a Dolby Digital processor in 1999.


In-Car Computing
One of the most talked-about mobile electronics technologies in 1998 was the in-car computing category, developed by Clarion and spurred on primarily by the announcement of the first 12-volt to use Microsoft's Windows CE operating system. Essentially a

51 percent of car owners are likely to order a $1,000 car PC for their next vehicle provided the cost would be added to their monthly payment.

high-powered AM/FM stereo head unit with a built-in amplifier and an eight-color display, the product's capability offered a host of services comprising entertainment, navigation, communications and basic computing functions. The unit, geared for "mobile professionals," offered CD-ROM reading capability, voice interactivity, a front-mounted flash card memory slot and navigation capabilities. Consumers also could choose to have their e-mail read to them while driving.

The head unit can be complemented by a six-disc CD/CD-ROM changer, a GPS receiver and multiple peripherals from eventual third party manufacturers, including wireless phone modems, file management software, vehicle system monitoring, driver assistance and navigation databases. An infrared data port allows it to interchange data between a notebook computer. Also, its universal serial

60 percent of car owners are aware of vehicle navigation systems.

bus (USB) architecture-a royalty-free standard supported by many computer manufacturers-allows the unit to network 127 different devices.

Though much of the in-car computing category was dominated by the high-powered head unit, at least one other company captured attention with a complete mobile PC application, including an installable CPU and a dedicated computer screen. As 1999 progresses,

47 percent of car owners would like the ability to locate the nearest gas station while driving.

look for other companies to enter the hardware category, including OEM factory-installed models from automakers.


Navigation
In an industry where navigation has been promised as far back as the late 1980s, this product category has, until 1998, been growing at a somewhat inconsistent pace. Some that had early launches with navigation devices have all but abandoned the category in the U.S. market.

The big question is, how will consumers take to the next generation of technology? A recent CEMA survey indicates that consumers have a generally high awareness of mobile navigation systems, but few have actually used one. Of the high-tech options available, consumers showed a preference for those that offered safety and convenience benefits as well as communications capability.

In a recent random sample of 1,000 car owners, 60 percent said they were familiar with car navigation systems, 58 percent had heard the term "multimedia," 44 percent were familiar with voice-recognition software, 23 percent had heard the term car PC and just under

63 percent of car owners would like alerts about pending car trouble.

20 percent were familiar with the terms "Auto PC" and "Windows CE." Despite the recognition of navigation systems, 86 percent had never used such a device.

Several manufacturers showed promise in 1998 with their rollouts of GPS-based navigation systems. Systems featuring in-dash, foldout LCD screens have come into the forefront, largely because the screens need not be limited to navigation uses only. Such screens can be used for head unit interfacing and system information. Stand-alone systems, also have experienced growth, particularly those from the companies that supply the nation's auto rental fleets.

Non-GPS, CD-ROM-based, voice-activated navigation systems spurred a short-lived trend a couple of years back, but have had little exposure in recent years. Alpine. however, made a highly visible 1998 launch with its version of a CD-ROM-based, voice-activated navigation system, although this time the system was equipped with GPS technology. The system's marketing approach highlighted the unit's ability to be used without involvement from hands and eyes.

Clarion launched a DIN-sized CD receiver with navigational properties later in the year. Featuring a smaller dot-matrix LCD screen, the in-dash unit is geared to help mobile electronics dealers target commercial fleet markets. The market also had introductions from hand-held navigation units, some marketed with detachable mounting brackets.

The mobile navigation market will get a boost this year from Eclipse and Pioneer which were planning spring product introductions.

62 percent of wireless phone owners surveyed reported using the phone at least a couple times a week.

They'll Join Philips and Magellan on the aftermarket side, and Acura, BMW, Land Rover Lexus, Mercedes Benz and Oldsmobile on the factory side. Mobile navigation systems offer in-vehicle road assistance, guiding drivers turn-by-turn to specified destinations and providing points-of-interest information such as ATMs, restaurants and lodging as well.

Navtech, Etak and TravRoute are among the companies that supply navigation, traffic and points-of-interest software used for mobile navigation. Navtech is known for turn-by-turn directions for dedicated car navigation systems. Etak's Pro and TravRoute's Door-to-Door CoPilot are navigation and mapping programs for the PC. Toshiba's Libretto notebook PC comes bundled with CoPilot, and TravRoute also is developing navigation programs for the Windows CE platform. Etak is adding real-time traffic reports to its palette of offerings, with the information delivered via cellular phone.

51 percent of car owners would like to have the ability to make hands-free phone calls.

Wireless Technologies
Wireless phones continue to see large gains, in both unit and dollar sales. Dollar sales through consumer channels totaled $2.78 billion in 1998. including personal communications services (PCS) phones. Unit sales for wireless phones in 1998 reached 13.8 million, more than twice the 5.6 million sold in 1993.

Along with the steady rise in unit and dollar sales, the average unit price for wireless phones has continued to decline. The average unit price in 1998 was just $200, compared to $268 four years. U.S. household penetration also has risen. CEMA research shows that 41 percent of U.S. households own a PCS or cellular phone, compared to just 25 percent three years ago. While the market for wireless phones continues to be healthy, the rate of sales increase is slower than it was in the early l990-a trend attributed to its successful penetration.

Cellular wireless phones use four transmission technologies: AMPS (analog mobile phone service), TDMA (time division multiple access), CDMA (code division multiple access) and GSM (global system for mobile communications). AMPS is the oldest technology, using analog transmission, with TDMA, CDMA and GSM vying for their share of the digital domain. While TDMA and CDMA are among the

56 percent of car owners would like access to emergency phone numbers.

most popular domestically, GSM leads in Europe. Regardless of which digital transmission technology is chosen, all help the industry increase channel capacity.

PCS phones were introduced in November 1995 when American Personal Communications (APC) kicked off its Sprint Spectrum service in the Washington, D.C./Baltimore area. APC later acquired by Sprint PCS in January 1998. Two years after the initial launch of service, as much as 50 percent of the U.S. population had access to PCS, which uses the 1.8 GHz to 1.9 GHz band.

Today's wireless phones, whether they are cellular PCS, dual-mode (phones that can operate on both analog and digital technology) or even tri-mode-feature dozens of services, ranging from voice-mail and computer messaging. e-mail and Internet access.

Third-generation wireless terminals will evolve into powerful tools that will deliver a wide range of multimedia content and remarkable new services. Increases in data transmission speeds, higher processing capacity and other technological advances will give users enhanced audio and colorful visual images. Third-generation smart phones and communicators will be able to transmit and receive a combination of digital information, including speech, pictures, video and various kinds of information content enabling users to personalize their multimedia communications services.


Pagers
Another wireless growth category is pagers that come with a variety of functions and features. Pagers have evolved to include a diversity of devices such as word message pagers; numeric pagers; voice pagers that act like mini answering machines; and even state-of-the-art smart pagers that provide two-way messaging capabilities and enable users to receive messages as well as send to other one- and two-way pagers, fax machines and Internet e-mail accounts. These new communications tools are powerful and small enough to hold in a palm or slip into a pocket.

Pagers currently have a U.S. household penetration rate of 29 percent. Given the lower price points and inexpensive monthly, quarterly or yearly contracts, it's no surprise that dollar sales in 1998 reached $550 million, a 19 percent increase over 1997's dollar sales of $460 million.

Pager technology continues to be on the increase as well, with many offering a 2,000-word plus memory, personal message storing and pre-programmed messages that can be displayed when a caller sends a two-digit code. Internet-capable alphanumeric paging also has been on the increase, with users able to send brief messages through e-mail, the Web or a receptionist. Other advancements in paging include the launch of a portable answering machine, a pager-like device offering up to three minutes of voice message stored directly in the device.


Radar/Laser Detectors
Radar and laser detectors continue their growth with several technological advancements, including the ability to receive warning

As part of the mobile electronics revolution, your cellular phone may be talking to your navigation system, making your dinner reservations and pulling in directions to the bed-and-breakfast you requested.

signals notifying drivers of such hazards as emergency vehicles, road construction and trains. A series of audible tones or an alphanumeric display can indicate which of the aforementioned hazards is ahead. Laser detectors are designed to provide 360-degree radar gun detection.

While such technology comprises only a small percentage of the mobile electronics field, radar/laser detectors did see a 14 percent increase in dollar sales, from $140 million in 1997 to $160 million in 1998.


Life in the Fast Lane
A vehicle fully-equipped with the latest mobile technologies now is capable of delivering movies, video games and quality music to back seat passengers, while the navigation system takes the map out of the hands of the driver and puts it under the trusted guidance of a mobile GPS system. And soon, as part of the mobile electronics revolution, your cellular phone may be talking to your navigation system, making your dinner reservations and pulling in directions to the bed-and-breakfast you requested. With navigation systems already guiding drivers turn-by-turn to specified destinations and providing points-of-interest information such as ATMs, restaurants and gas stations, one can only imagine what customized new products and services will be available in the near future.

Car multimedia products and new digital technologies linking drivers to the Internet, traffic reports, data, navigation and emergency roadside assistance, among other services are creating excitement in the mobile electronics industry. With the first IDB products nearly ready to debut at local stores, the opportunities for manufacturers and retailers are abundant. By offering drivers convenience, safety and plug-and-play simplicity, the mobile electronics industry is poised to make big profits as consumers learn how the new digital technologies can improve their lives