News
Issue #2002 - 37 (September 2002)
(Updated October 2, 2002)

MARKET OUTLOOK and TRENDS

Almost 50 GSM Operators Launch MMS But CDMA 1x Still Ahead worldwide


Since June 2000, 128 GPRS networks have offered commercial service. However, in over two years of service, operators have only managed to secure 2.5 million GPRS subscribers. Meanwhile, CDMA 1xRTT services have dwarfed this, with 8.4 million data users worldwide, according to EMC in its latest research, EMC World Cellular Data Metrics tracking mobile data indicators. "Lack of handsets was originally touted as the problem, but since availability of GPRS-enabled handsets is no longer an issue, the reality is that operators had no service offerings. MMS is being touted as the savior of GPRS investment, with the first real consumer application - picture messaging," states Michèle Scanlon, Research Director, EMC.

MMS first launched in March 2002, and to date 46 networks in Europe and Asia have launched commercial picture messaging services. "Many operators have yet to finalize the pricing of the service, but the standard approach is a fixed charge per message regardless of message size, fixed at four times the price of a regular SMS," comments Michèle Scanlon.


For more information:  http://www.emc-database.com

MobileInfo Comments and Advisory:  There is no doubt that GPRS has not been as successful as CDMA in spite of its huge base to start with. GPRS is a well-intentioned effort to speed things up with minor tinkering of an old engine at a relatively low cost. Effective throughput for wireless data applications is better but not as good as with CDMA which is spectrally more efficient technology. But the real reason in subscriber penetration is not as simple as that. CDMA was deployed in countries where wireless data applications were more popular. As far as voice is concerned, do consumers worry about GPRS or CDMA in their handsets. They just want to make an uninterrupted call with clarity of voice signal at least cost  wherever they are.  At the end of the day, it is not coding scheme or protocols that will determine which technology wins, it will be price, speed and customer satisfaction. GPRS may have a tough battle to beat CDMA.   

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