3G to earn $1 trillion in 9 years

date: April 26, 2001 - source: UMTS Forum

The UMTS Forum forecasts that revenues from 3G services worldwide will represent a market opportunity worth as much as $1 trillion between now and 2010.

The report forecasts the average subscriber for third generation mobile services will spend around $30 per month on data services alone, with revenue from data outgunning revenue from voice calls by 2004.

The report said European and North American users would spend the most on third generation services, with annual revenue seen at $150-$200 per head by 2010.

Asia Pacific will provide the most revenue in total, with the region expected to generate $120 billion per year in nine years time, the report estimated.

In a conservative prediction of the potential global uptake of 3G mobile multimedia services over the next decade, the report confirms growing industry recognition that significant licensing and roll-out costs for 3G networks over the next few years will be rewarded in the long term by fast-growing revenue streams from consumer and business users alike.

Commenting on the implications of the report, UMTS Forum Chairman Dr Bernd Eylert noted that UMTS/3G will play a key role in operators' revenue opportunities over the next decade, even after allowing for market competition and the user experience that 2.5G networks will offer.

"It's clear that 3G services have the potential to reverse downward trends on operators' voice revenues. Co-ordinating the deployment of networks globally to support roaming will accelerate this compensating effect. Just as importantly, success will be ensured by partnerships across the value chain between operators, content providers, service providers and applications developers", concludes Eylert. "Ultimately, only 3G can deliver the capabilities and services necessary to support the expectations that tomorrow's users will have".

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