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U.S. Lags Behind as Asia and Western Europe Lead 3G Market
Posted: 20-Dec-1999 [Source: PRNewswire]

[Asia and Europe are poised to emerge as the Third Generation Wireless leaders, according to two studies.]

WASHINGTON -- "According to two Strategis Group studies released today, Asia and Western Europe are poised to emerge as the world's leaders of Third Generation wireless, with several markets deploying 3G networks as early as 2002. In contrast, 3G services will not be rolled out in the United States until 2004, according to The Strategis Group's Third Generation Wireless: Strategies for Global Markets and Next Generation Wireless: U.S. 2.5/3G Marketplace reports.

"Finland, Japan, and the United Kingdom will be first to market in deploying 3G. While these countries may not be the largest markets for wireless Internet services, demand for increased capacity and the readiness of end-users to adopt 3G services is the most assured," notes Heather Henyon, analyst with The Strategis Group. "These countries are prepping the marketplace for 3G roll-out by launching 2.5G services and conducting 3G trials today."

Top 10 2.5G and 3G Subscriber Markets, 2006

(Millions of subscribers) 

Country 2.5G 3G

China 48.9 26.3 Japan 14.4 21.5 Germany 16.0 8.6 United Kingdom 14.7 7.9 France 12.3 6.6 Italy 10.5 5.7 United States 11.1 2.8 Spain 7.6 4.1 Korea 5.3 5.3 Australia 3.9 2.1

Source: The Strategis Group, Inc.

"U.S. wireless carriers are still primarily focused on building out their networks to expand capacity and coverage," describes Jon Dorfman, analyst with The Strategis Group, "but they are also highly cognizant of the significant revenue opportunities enabled by a wireless broadband network. Although the U.S. market demand for 3G is less certain than in Europe and Asia, operators are actively analyzing various business cases and deployment scenarios for 2.5 and 3G networks so that they will be able to take advantage of the enormous potential upside of wireless Internet in the U.S."

"Globally, wireless carriers are conducting trials of wireless technology beyond their existing second-generation wireless systems. This technology, generically called either 2.5 or 3G depending upon its characteristics, will add the utility of mobility to high-speed Internet and Intranet applications. Although commercial deployment of these technologies is still a few years away, wireless operators are changing their business models in order to prepare for these services, as their capabilities will bring a new dimension to wireless communications and information.

"The primary objective of the study Next Generation Wireless: U.S. 2.5/3G Marketplace is to analyze the potential of the next generation of wireless technology in the U.S. by discussing where the industry stands now, followed by a detailed assessment of the business cases for the future. The study is primarily based upon extensive market surveying as well as a comprehensive series of executive interviews with U.S. wireless carriers, manufacturers, and software developers. From these sources, The Strategis Group not only qualitatively describes market strategies and consumer demand, but also provides quantitative forecasts and net present value analyses of various deployment scenarios for a mobile broadband service provider.

"The core of Third Generation Wireless: Strategies for Global Markets is built around extensive executive interviews with manufacturers, operators, and standards bodies, which serve as the basis for assessing the business case for 3G worldwide. The study provides 2G, 2.5G, and 3G subscriber forecasts through 2007, broken down by technology, population penetration, net subscriber additions, and annual growth rates for 28 markets. Third Generation Wireless: Strategies for Global Markets includes profiles of 2.5G and 3G activities of cellular operators in 28 countries, including 2.5G and 3G contracts and trials and WAP developments. The study weighs market potential for a cross-selection of markets by assessing typical drivers of demand such as cellular, Internet, and mobile data penetration as well as other variables such as spectrum availability and licensing. In addition, profiles of the major manufacturers' activities and 3G applications being developed are included.

"With offices in Washington, D.C., London, and Singapore, The Strategis Group publishes in-depth market research reports and provides customized consulting services and continuous information solutions to the cable TV, satellite, Internet, competitive telephony, broadband, and wireless communications industries. The Strategis Group's market studies, valuations, and strategic planning projects provide crucial information to communications industry leaders throughout the world. Please contact an account executive at 202-530-7500 (voice), 202-530-7550 (fax), sales@StrategisGroup.com (e-mail) or visit http://www.StrategisGroup.com for more sales information.

SOURCE The Strategis Group

CONTACT: Jon Dorfman of The Strategis Group, 
  202-530-7571 or 
  jdorfman@StrategisGroup.com/ 
Web site: www.StrategisGroup.com/

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