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NEWS
Issue #2001 - 01 (Jan. 2001)

(Updated on Jan. 3, 2001)

MARKET OUTLOOK

2.5G to Overshadow 3G, says Study

With all the hype and dollars being invested in high-speed 3G networks, the Boston research firm Strategy Analytics predicts that its slower cousin the 2.5G networks will prevail over the next decade.

The firm’s findings are set out in its latest report "Strategy Analytics Predicts 2.5G to Dominate Wireless Data Market."

  • Global data revenues to reach $450-billion by 2010.
  • By 2010, only 24 percent of the predicted 1.3 billion wireless data user will access 3G networks.
  • Messaging-oriented services will continue to generate substantial revenue until 2005 but will be surpassed by entertainment applications during the second half of the decade.
  • Voice services will become increasingly commoditized.
  • The mobile operator may not be the one holding the strings and reaping the profits.

David Kerr, vice-president of Wireless Services at Strategy Analytics, noted, "The reality is that 3G networks will not deliver nor is there pent up demand for the interactive multimedia applications that would require data rates in excess of 384 Kbps."

In the next decade, the successful delivery of content will depend on effectively meeting the needs of the mobile user for safety, security, reinforcement of beliefs and values and fun, the report says.

For more information: www.strategyanalytics.com/press/index.html

Mobileinfo Comments and Advisory: We agree that 2.5 G will prevail over 3G in the short to medium term. However, we have not seen this market size figure so far - we mean, 450 billion wireless data forecast by 2010 - it implies per subscriber expenditure of 1200  per annum, assuming 24% of 1.3 billion subscribers. We recommend a huge caution!  Is our math wrong or does Strategy Analytics know something that we do not?

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.


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