[Research group Telephia finds 3G devices and applications are accelerating user adoption in the UK.]

San Francisco -- 3G raises adoption of applications and increases overall data services spending, according to Telephia, the leading provider of performance measurement information to the mobile industry. Telephia's newly launched U.K. 3G Report shows that 3G users were much more active than non-3G users, especially for new and advanced mobile activities developed to function well on the 3G platform, such as video clip downloads and streaming TV.

Fifty-six percent of 3G users browsed the Internet as compared to 39 percent for non-3G users (see Table 1). 3G users were at least three times more likely to download video clips, use video messaging, and download full music tracks via their mobile devices. 3G consumers were also much more active in usage for both downloading games and online game playing. Moreover, 3G users were 10 times more likely to stream TV content on their wireless device than non-3G users.

"The improved capabilities of 3G networks and devices combined with the availability of more compelling multimedia content are clearly accelerating user adoption," said Kanishka Agarwal, Vice President of New Products, Telephia. "We have entered an exciting phase of rapid evolution in the mobile market. To profit from this new demand, carriers and content owners will need to analyze early consumer behavior and attitudes carefully so that they can continue to build consumer trial and repeat usage."

Table 1: Telephia 3G vs. Non-3G Usage (U.K.)

Internet Browsing: 3G users 56%, non-3G 39%

Video Clip Downloads: 3G 35%, non-3G 11%

Video Messaging: 3G 34%, non-3G 11%

Video Calling: 3G 35%, non-3G -NA-

Game Downloads: 3G 34%, non-3G 21%

Full Track Music Downloads: 3G 32%, non-3G 11%

Streaming TV: 3G 10%, non-3G 1%

Online Game Playing: 3G 8%, non-3G 5%

Source: Telephia U.K. 3G Report, Q3 2005

Monthly Spending Higher for 3G Consumers Accessing Content on Operator Portals

The Telephia U.K. 3G Report shows that 3G subscribers spend more monthly on services than non-3G subscribers. 3G users spend an average of GBP 43 ($76) per month on voice and data services. This is GBP 14 or $25 more than non-3G subscribers who spend an average of GBP 29 ($51) a month. Furthermore, 3G users who are active on their operator's portal spend GBP 2 ($4) more per month on data services than 3G users who conduct all of their data activity on off-portal sites.

In general, 56 percent of 3G users accessed their mobile operator's portal for content, while 45 percent of non-3G users logged onto their operator's portal. More than one-third of 3G subscribers used their operator's portal exclusively, while another 49 percent accessed mobile data content via both the operator portal and off-portal sites.

"Clearly usage on 3G shows higher revenue potential overall," added Agarwal. "The variety and quality of content and ease of navigation on portal sites will play a key role in gaining traction and increasing the prospect for maximizing profits."

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