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U.S. Optimism for 3G Networks Wanes, says Frost & Sullivan

Source: Frost & Sullivan

July 10, 2001

San Jose, CA. Despite all the noise, there are some serious concerns about 3G being launched in the U.S. before 2007. After much anticipation, the 3G market is expected to show slowing growth rates and shrinking revenues for network equipment.

According to new analysis from Frost & Sullivan (www.frost.com), "U.S. Next Generation Mobile Networks," the market is expected to reach $13.5 billion in 2001 and steadily shrink to $2.8 billion by 2007.

"The U.S. mobile communications industry is extremely bullish on the prospects of introducing high-speed wireless data services," says Frost & Sullivan Research Analyst Kshitij Moghe. "Unfortunately, the current market dysphoria and sudden financial constraints have given the industry a rude wake up call. The industry is way ahead of its time and the current market slowdown has, in a way, helped to stem further speculations."

"The U.S. mobile communications market is poised for a period of healthy growth in mobile voice-and-data communications, with penetration rates expected to nearly double from 37.5 percent in 2000 to 69 percent in 2007," says Moghe.

Nonetheless, the outlook for mobile Internet and next generation communications is contrary to what past trends have indicated. Expect the advent of mobile data services via next generation technologies like 2.5G and 3G to boost subscriber penetration.

"The hype and speculation surrounding the launch of 3G has been primarily driven from the supply side of the equation," says Moghe. "The core issues for delayed timelines are lack of sufficient spectrum, complexities of network upgrades and uncertainty over timely availability of multi functional handsets."

Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the mobile communications industry. These market specific awards are presented to: Airnet, Nokia, Sprint PCS and Tropain.

Frost & Sullivan is a global leader in international strategic market consulting and training. This ongoing research is part of the Next Generation Communications Services, which includes market analyses on World Voice Portal Market and U.S. Mobile Portal Market. Frost & Sullivan also offers custom consulting to a variety of national and international companies. Executive summaries and interviews are available to the press. U.S. Next Generation Mobile Networks Market Report: 7915-65

Contact: Frost & Sullivan, San Antonio Kristi Grier Tel: 210 247-2403 kgrier@frost.com

 

Frost & Sullivan, San Antonio
Kristi Grier
Tel: 210 247-2403
kgrier@frost.com
 
E-mail: kgrier@frost.com
Web site: http://www.frost.com
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