I-Mode will be key driver of 3G growth in EU

date: May 30, 2001 - source: Tarifica

A study by TARIFICA suggests that I-Mode will be a key driver of 3G in Europe and a surprise market entrant over the next six months, and later in the US. Operators keen to recoup heavy 3G licence costs, are seeking new 3G type services to roll out over GPRS. The report finds that a number of operators in the UK, Germany, Netherlands, Italy and France are likely to adopt I-Mode in the delayed run-up to full 3G launch in 2003/2004.

I-Mode could also reverse the decline in ARPU for voice-centric services and enable an increase in data usage through a proliferation of services designed for wideband and broadband networks. The report estimates that by the end of 2002, the increase in average ARPU in the entry countries could be as much as 3.5 Euros per subscriber.

Importantly, it will generate new forms of content and entertainment delivery and create completely new types of demand and new market segments particularly in the youth market.

"We sense that a gold-rush is on and I-Mode in Europe will be a profitable transition to full 3G", commented Philip Low, Director of Consulting at pbi MEDIA.

The report explores the level of foreseeable competition in each EU country amid the deployment of advanced data services, and looks at the challenges imposed on 3G licence holders to acquire content-driven solutions, in an attempt to rapidly reduce debt burdens.

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