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Novari Still Predicts Bright Future for 3G

October 18, 2003 - source: BWCS

The chief executive of the Italian UMTS operator 3 has revealed that he still sees a very rosy future for the 3G industry. Vincenzo Novari, speaking to Telecom.Paper at the ITU Telecom World event in Geneva, forecasts that UMTS will add significantly to the incomes of mobile operators, with the industry as a whole doubling in value over the next five years. Novari says the main challenge is to increase ARPU from its current levels of around Euro30 to closer to Euro40, with data services contributing 20% of total revenues.

According to Novari, operators should concentrate not just on providing decent content to 3G customers, but also ensuring that subscribers have the means to distribute that content between themselves. He adds that while 3G technology has taken a great deal of criticism over the past few years, in Italy at least there is a strong demand for next-generation services. He says that 3 Italia has signed up more than 300,000 3G customers in 150 days since its commercial launch and 75% of these customers make at least one video call each week. In addition, in the last month subscribers have downloaded 200,000 video clips of highlights from Italian football matches.

 


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This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

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