Strategy Analytics: Industry to hit 167 million 3G users this year

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BOSTON—Third-generation W-CDMA and CDMA2000 1x EV-DO networks are on pace to reach 167 million users by the end of this year, and could pass 1 billion subscribers by 2010, according to a new report from research firm Strategy Analytics Inc.

The company further predicts 3G users will make up half of all cellular service revenues by 2010, despite only accounting for one-third of the expected 3 billion subscriber wireless market.

“Having passed the 100 million subscriber mark in early June 2006, the 3G market will now enjoy a period of sustained growth,” said Phil Kendall, director of Strategy Analytics’ global wireless practice. “Verizon Wireless is driving a real surge in 3G demand in the U.S., while China and India will start 3G services next year.

“With Indonesian 3G services already live, and more of the world’s major population centers, such as Brazil, Pakistan and Russia, coming online later in the decade, by 2009, we will see more than one quarter of a billion subscribers being added to 3G networks each year,” he said.

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