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Edge is Competitive Tool - Study
Posted: 18-Apr-2004 [Source: Visant]

[Edge seen as viable choice for operators and may delay sales of next-generation equipment in many parts of the world study finds.]

Mobile operators worldwide are looking to EDGE as either a permanent fix for data offerings or as an interim solution to allow more robust data and voice services for the next half-decade, according to a new Visant Strategies report. While many had written off EDGE not so long ago, it is now seen as a viable choice for operators looking to offer high-speed data services and provide capacity upgrades in existing GSM or TDMA networks, the study finds.

As a result, EDGE will delay sales of next generation equipment in many parts of the world, with several hundred thousand EDGE-enabled base stations deployed by 2009. Also, according to the just-published study "EDGE: Competitive Assessment 2004," the chipset market for EDGE components in wireless handsets will run close to $2 billion in 2009 with over $31 billion worth of GSM/GPRS/EDGE -enabled handsets sold that same year worldwide.

"EDGE capabilities are expected to be quickly absorbed within devices, just as GPRS capabilities are evident in handsets today," said Visant Senior Analyst Andy Fuertes, the co-author of the report. "EDGE will also be evident in a majority of dual mode UMTS/GSM devices shipped during the next five years, making EDGE a very viable consideration for users," Fuertes said.

Total EDGE uses are anticipated to exceed 130 million in 2009. Many EDGE users will also employ other technologies such as UMTS and variants of OFDM by this point, according to the report findings.

"Population density, per capita income, wireless penetration and the overall return on the wireless network are factors that have caused EDGE to be looked at very closely by operators. It's a technology that can meet operators' expectations as far as sound capital investment and return," said Visant's Larry Swasey, co-author of the report.

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