SAN JOSE, Calif.-While the mobile industry is poised for massive growth during the next five year, widespread acceptance of third-generation technology will present a challenge, according to new research from Frost & Sullivan.
According to the report, “Global Next-Generation Mobile Networks Markets,” the mobile industry generated more than $45 billion in worldwide revenues in 2001 and will likely generate near $75 billion by 2007. However, Frost & Sullivan believes multiple network technologies present a major challenge in continued growth for the international marketplace.
“Industry participants are expected to face an uphill task in their efforts to reduce the presence of multiple technologies,” explained analyst Kshitij Moghe. “The synchronous existence of analog, TDMA, CDMA and GSM technologies has only complicated matters for proponents of a common global standard.”
Analysts further site growing uncertainty regarding the viability of 3G services resulting from high infrastructure costs, delayed network deployments, reservations about the success of data applications and disappointing results in data speeds. Moghe suggests industry will likely focus on developing compelling wireless data applications. “The primary challenge for market participants will be to identify and foster these applications, in order to continue network expansion.”
