Mobile data must succeed

Mobile data must succeed

US mobile data revenues were about $8.5bn in 2005, just a portion (circa 7%) of the global mobile services estimated at about $124bn. With mobile voice revenues on the decline, due to competitive price pressure, mobile operators are increasingly dependent on data revenues. Speed is key when related to data streams. So, 3G is the opportunity, and probably the only way, that could encourage consumers to buy into mobile video and music. So, most mobile operators have embrace the technology, investing a lot to upgrade their networks. Verizon Wireless has launched its EV-DO network, as well as Sprint Nextel; Cingular choosed UMTS/ HSDPA technology, while T-Mobile decided for EDGE, but could also shift to 3G in 2007. Facing this carrier optimism, some analysts warned that success is not guaranteed. Deloitte Consulting said 2006 may turn out to be a "frustrating" year for 3G. Spotty coverage, lack of killer services, lack of devices are impeding wide immediate customer acceptance, and could delay it several years.