Mobile data services expected to reach 203 million handset subscribers by 2003
Semiconductor Business News
(09/20/01 16:01 p.m. EST)
GUILDFORD, England -- Mobile data services for next-generation digital handsets will reach 203 million subscribers worldwide by the end of 2003, according to a new forecast issued by the ARC Group here today.
The research firm said 12% of the data service subscribers will be using third-generation (3G) cellular handsets by the end of 2003, while the remaining 68% will own 2.5G units, based on Global Packet Radio Service (GPRS) technology.
The 2.5G market will be crucial in the development of the mobile data services market, and it will be needed to help network operators overcome the high risks in 3G services, said ARC's report, called "3G Technology, Market and Business Strategies." The report said 24% of total revenues in cellular networks will come from value-added 2.5G value-added services by 2006. About 9% will be generated by 3G services, the report said.
High licensing fees in some countries and unproven markets have raised questions about the viability of 3G services, but ARC said it believes the third-generation cellular systems will eventually prove successful for many service providers.
"It is crucial to look at the commercial opportunity of 3G on a market-by-market basis and even on an operator-by-operator basis," said Antonella Esteves, who headed up the ARC report. "Some players will find it increasingly difficult to undertake the network rollout, but this does not mean that 3G is not a viable business proposition." |
