After reviewing recent Fred email response in regard to New Technology named NUNCHI and itsreference to Incremental Innovation i did my own due diligence in this regard and i summarizedit in the following paragraphs.

1. When Fred pointedNUNCHI as Incremental Innovation it sometimes referred as( sustaininginnovation ) uses existing forms or technologies as a starting point. It either makes incremental improvements to something or some process or it reconfigures it sothat it may serve someother purpose. Making incremental improvements is important for extending the marketable life of a product or service.

2.Major innovations usually pass through countless minor duct and systems improvements. e.DIGITAL Choose Incremental Innovation vs Radical Innovation.Incremental innovations typically produce a highly

specialized system that depends upon economies of scale and mass marketing for success.

It appears new NUNCHI technology designed for mass market penetration and That's what Fred in His response pointing to PARTNERS rather thanservicing subscribers. Quote " Recall that we've made it clear

that e.Digital is not in a position to deploy a system actively servicing subscribers of one or more wirelesscarriers (that's millions of users streaming data to us). We are looking for partnersto share in the effort".

3. Some of the good examples of Incremental Innovation includes followings :

Apple iPod. The original iPod came in just white, and enabled you to store and play your mp3 music collection only. Incremental improvements have occurred over time so that today you can buy them in many different colours; store your family photographs and even your video collection.

Global Positioning Satellite. These are now common place in motor vehicles to assist drivers in getting from A to B. GPS systems in cars are an example of an incremental innovation in which something that already exists has just been reconfigured to another use.

Intel Pentium Processors. Intel introduced the Pentium 4 computer processor chip as an incremental improvement to the Pentium 3 chip. Both chips had the same basic technology but the Pentium 4 introduced new design improvements and additional features to improve the chips overall performance.

Motor vehicles. The cars of twenty or thirty years back and beyond could be thought of as quite basic when compared to the cars of the day. Incremental improvements have occurred over time so that its common to expect a modern day car to include electric windows, ABS breaks, air bags, cup holders and the list goes on.

JMHO