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Potential remains high for 3G services post September 11th - $1 trillion opportunity for 3G predicted over next decade PDF Print E-mail
Tuesday, 26 February 2002

The UMTS Forum, the independent body which promotes the global uptake of 3G mobile systems and services, has today published its market study on the demand for 3G services post September 11th which concludes that the long term revenue potential for 3G remains extremely high, even with the recent market challenges.

The report follows up the Forum's market study on the revenue potential for 3G, published in January 2002, and examines the possible repercussions of the events surrounding September 11th as well as the widespread downturn in sentiment towards the telecoms sector.

The report concludes:

  • Service revenue from 3G networks is predicted to represent a substantial market opportunity of $320 billion in 2010 alone, and around $1 trillion over the decade as a whole.

  • The impact of September 11th on the roll-out of 3G services will be significant in the short-term but will have a marginal impact in the long term.

  • Issues involving handsets and 3G-service delivery are short-term and resolvable and will not affect the longer-term viability of 3G services.

  • The demand for 3G mobile data services is real. Consumers and business users have consistently demonstrated strong interest in trying new services that combine mobility with content and personalisation.

Commenting on the publication of the report, UMTS Forum Chairman Dr. Bernd Eylert noted that even though negative market conditions have reduced the long term revenue forecast by around one per cent, the UMTS Forum still predicts significant revenue opportunities.

"Whilst the global economic downturn and the September 11th attacks are significant in nature, our research concludes that they will not materially change the 3G forecast of August 2001, which was based on the assumption of slow adoption globally for the first five years. Nevertheless, what is quite exciting is that it is clear from this update report that there are still substantial market opportunities for service revenues from 3G services. We strongly believe that as 3G services become more widely available, the benefits and exciting potential of this technology will become more apparent to financial audiences and consumers alike."

 
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