U.S. Mobile Carriers Standing in the Way of Their Own Success in 2.5G and 3G Wireless Data Services Repeating The Mistakes of 2G Wireless Data

date: February 26, 2002

Analysis of new 2.5G and 3G wireless data and internet services from AT&T Wireless, Cingular, Verizon and Voicestream by Alexander Resources, a research, consulting and education firm specializing in wireless communications, found that these carriers have repeated the mistakes that resulted in limited revenue and subscribers for their 2G data services. As a result, these carriers may never fully capture the revenue potential of these new high-speed (2.5G and 3G) services nor be able to overcome the current declines in voice communication subscriber growth rates and monthly revenues.

The analysis determined that the carrier’s service quality, marketing, networking, devices and pricing plans stand in the way of any significant levels of market acceptance of their new high speed wireless data and internet services. These problems will not only negatively impact 2.5G and 3G services but mobile commerce and audio and video streaming and multi-media messaging services as well. The major problems Alexander identified include: service agreements and pricing plans that do not reflect the quality and technology limitations of wireless data communications, lack of low priced 2.5G/3G smartphones and PDA/handheld and laptop modems, 2.5G/3G phones, modems and terminals that do not operate on competitive networks, the complexity of software used to connect a 2.5G/3G phone to PDA/handheld and laptops, unreliable, complex and difficult to use phone to PDA/laptop communications software, limited service availability, lack of special in-building coverage, speed and throughput that declines with user congestion, lack of enhanced security, and requiring wireless data subscribers to also utilize voice services.

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