No one will say the mobile phone is not experiencing a period of dramatic transformation. In a few years' time, features such as a multi-megapixel camera, an MP3 player, video gaming and DVD-quality video recording and playback will be standard. At least, that is the vision of Qualcomm CDMA Technologies, a maker of chipsets for mobile phones. As consumers replace their handsets, they will be increasingly demanding phones with more sophisticated features. 'The next time you buy a handset, you buy a better one,' president Sanjay Jha said. 'I don't know of anyone who buys consumer equipment - and buys worse than they had the last time.' A key factor that is driving the handset's transformation into an all-in-one device is third-generation (3G) mobile phone technology. Once phones become connected to high-speed networks, features such as video gaming and video playback will be in demand. 'If you have all these features and you can't do anything with them, are they very valuable? No. But if you have a 3G network connected, you can send a picture to all your friends,' Mr Jha said. 'That feature suddenly becomes very valuable and can generate a lot of revenue.' Qualcomm recently launched a series of chipsets with enhanced multimedia functions. It is also developing a more advanced chipset that will have dual processors, a six-megapixel digital camera, and digital video recording and playback at 30 frames per second. Phones using the advanced chipset were expected to be commercially available by the middle of next year. Handsets with high-end multimedia functions were necessary if 3G operators were to generate data revenue from new applications and content downloads. Mr Jha expected global mobile data revenue to increase from about US$20 billion this year to more than US$90 billion by 2009. 'When 9-11 happened, if you could watch the news of what was going on every 30 seconds [on your mobile phone], would you pay for that? I think I would,' he said.