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December 30, 2003

The Challenges -and Potential- of 3G

Currently, increased competition and stagnating economies have helped drive down end-user prices and voice service has become a commodity. While call minutes are increasing, ARPU is failing to keep pace with growing costs and shrinking margins. The 3G business case says that every incremental dollar spent on the network must produce a return on investment almost overnight. In the Asia-Pacific, Pyramid Research says 3G mobile subscribers will jump from 21 million in 2002 to 162 million in 2008.

It is obvious that 2G technology will continue to maintain a certain momentum but will eventually fade off. That’s because 3G is a radically new game with new rules and challenges and only a few vendors will lead in this new market sector. The potential for 3G is huge. Analysts predict that wireless data revenue in the US alone will jump from US$500 million in 2002 to US$24.5 billion in the next 10 years.

I believe the industry is entering a critical stage in the transition from a voice-centric utility to a services-centric business. The packet core already is an integral part of evolving 2.5G and 3G networks. 3G’s other defining element – high-speed access – is what everyone desires, but may need to be delayed based on the local business case. Continue >>

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previous post: 2004 to be the Year of 3G in Japan :: next post: Motorola to Launch 3G Devices in Taiwan

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  • Mobikyo K.K. publishes Wireless Watch Japan, organizes MobileMonday Tokyo networking events and operates Mobile Intelligence study tours providing related custom research and advisory services. Mobikyo's founding directors are deeply connected with, respected by, and committed to, Japan's wireless and IT business community. Thousands of managers, planners, engineers and strategists depend on Mobikyo to learn about Japan's unique business models, technologies, contents, services, applications and hardware from the most innovative test-bed market for next-generation mobile industry. "Mobikyo" was chosen for the unique blending of Mobile and Tokyo. However, depending on the kanji character used for kyo, it could also mean association, capital, religion or today. With fantastic support from our clients, partners and affiliates in Japan and overseas, we have become the trusted source of independent market intelligence & business networking connections based in Tokyo.
  • MobileMonday Tokyo is a leading networking organization supporting Tokyo's mobile industry. We launched in September 2004, with over 70 events to-date, hosting an average 100-200 industry delegates. MobileMonday is an open platform for mobile industry visionaries, developers and industry insiders fostering cooperation and business development through live networking events to share ideas, best practices and trends from global markets. Chapters are active in over 100 cities worldwide and new locations continue to launch monthly. Founded in Helsinki, Finland, in 2000, MobileMonday is organized by a global team of 300+ volunteers and it has become the world's largest mobile community network. Details via MoMo Tokyo website
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