(Business 2.0) – Apps

OPPORTUNITY: Web surfing, instant messaging, and other tasks will migrate to high-speed phones, requiring scads of new software. PLAYER TO WATCH: Norway's Opera Software leads the cell-phone browser market, thanks to deals with handset makers like Nokia and Sony Ericsson. CONTENDERS: Agile, Profimail ESTIMATED MARKET SIZE, 2007: $1 billion

OPPORTUNITY: Millions of people will use phones with high-speed connections and 3-D graphics as game consoles. PLAYER TO WATCH: Mforma, based in Kirkland, Wash., already provides games and content to more than 100 carriers worldwide and has attracted $63 million in venture capital to fund its expansion. CONTENDERS: Digital Chocolate, Jamdat, Sorrent ESTIMATED MARKET SIZE, 2007: $7.4 billion

OPPORTUNITY: High-speed 3G connections will spur consumers to download and listen to music on cell phones rather than iPods, radios, or other portable devices. PLAYER TO WATCH: Musiwave, a French startup, delivers tunes from publishers EMI and SonyBMG; through carriers like Vodafone, Musiwave allows users to download full songs with hi-fi sound quality. CONTENDERS: Melodeo, Sony StreamMan ESTIMATED MARKET SIZE, 2007: $1.7 billion

OPPORTUNITY: Mobile video is a potential killer app for 3G networks. In Japan, mobile video is now widespread; the rest of the world won't be far behind. PLAYER TO WATCH: Mobliss, based in Seattle, just launched Thumbdance, a wireless video channel that broadcasts animated shorts and other content. CONTENDERS: Idetic, Qualcomm MediaFlo ESTIMATED MARKET SIZE, 2007: $800 million

Sources: ARC Group; Strategy Analytics; ThinkEquity