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3G Subscribers to Exceed 300 Million by 2010, but Critical Mass for Non-Voice Still a Pipe Dream

3G Subscribers to Exceed 300 Million by 2010, but Critical Mass for Non-Voice Still a Pipe Dream

HAMPSHIRE, UK -- (MARKET WIRE) -- 08/11/05 -- As 3G begins to take off, what will trigger mass market uptake of data and multimedia services? In a new market report, Next Generation Handsets 2005-2010, Juniper Research, www.juniperresearch.com, argues that power has shifted to a more discerning user community that is spoilt for choice and yet appears fazed by the complexity of mobile phones and the plethora of services on offer.

Key findings of the report include:

--  Continuing market growth - Juniper Research estimates that the total
    mobile subscriber market will reach 2.7 billion by 2010 and that shipments
    of handsets will break the 1 billion mark by 2009 on the back of emerging
    Asia Pacific markets and increasing replacement rates in mature markets.

--  Rising 3G numbers - 3G subscribers are predicted to grow from 30
    million in 2004 to over 300 million by 2010. However, whilst representing a
    step-jump in technology for delivering current services with better
    quality, 3G's benefits derive more from its ability to accommodate greater
    numbers of users and network traffic, especially voice, than its support of
    advanced services delivery.

--  The need to re-think the approach to handsets and services - The
    industry is still too preoccupied with technology advances and not focused
    enough on what makes users tick. Vendors and operators must stop filling
    mobiles with catch-all baskets of features. In a high-demand environment
    where the user is king the way forward is to adopt a more sophisticated
    needs and segmentation based approach to the design of handsets and

--  Poor customer care - There is a pressing industry-wide need for more
    empathetic customer care. Service providers need to review how services are
    presented and take greater control of their relationships with customers,
    ensuring, especially, that they are set up with what they need as part of
    the provisioning process. Better still, why not learn from the automotive
    and personal computer industries and offer full-blown customisation?

"Most consumers are turned off by hi-tech acronyms, brand battles or technology for technology's sake. They want useful services tailored to their needs that can be accessed at the push of a button, at a price they can afford, and on a tariff structure they can understand, and they want someone to set it all up for them before they switch on," says Trevor Howell, author of the report. "Whoever gets this right will reap the benefits of increased ARPU."

Free white papers and further details of the new study "Next Generation Handsets 2005-2010" can be obtained at www.juniperresearch.com, or via Michele Ince at [email protected], Telephone +44(0)1256 345612.

Juniper Research provides analytical services to the global hi-tech communications sector, providing analyst reports, consultancy and industry surveys.

Michele Ince
Email Contact
Telephone +44(0)1256 345612

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