Subject: [NEXTEL-1] 3G service market to reach 69 million subscribers by 2007

From: [email-masked]
Date: Mon, 07 Jul 2003 03:39:19 -0400

3G service market to reach 69 million subscribers by 2007

According to IDC Japan’s new study, the 3G service market in Japan is expected to
reach 69
million subscribers in 2007, and will account for 77.6% of the 88.9 million
subscriptions in the
entire cellular phone/PHS market. The 3G market is also expected to be worth US$54
billion in
terms of revenue, accounting for 81.4% of the total market. The ratio of data
communication
charges in the total monthly usage fee for mobile phone services will increase to
26.1% in
2007.

“The development of 3G services has an enormous impact on related markets,” said
Toshihiro
Mishima, Communications Research Manager, IDC Japan. “Major service providers for
cellular
phone/PHS and consumer wireless LANs, as well as device vendors, content providers
and
ISPs, should gain new business opportunities by promoting necessary services and
products
for the upcoming 3G era.”

The entire cellular phone/PHS service market is expected to grow slightly from
2002 to 2007
with a compound annual growth rate of 2.4% in subscriptions, and 1.3% in revenue.

Mobile phone services in Japan are expected to start a full-scale transition from
the
conventional PDC (personal digital cellular), the country's unique 2G system, to
the 3G system
from the latter half of 2003 to 2004. This transition is already underway as
service providers
have begun to actively move PDC users towards 3G. KDDI (au) has already terminated
PDC
and is shifting to CDMA2000 1x. The company also plans to launch a wide-range of
3G data
service, CDMA2000 1x EV-DO, in the fall of 2003. J-Phone is planning to provide
both
W-CDMA-type 3G service and GSM-type 2G service in Japan.

NTT DoCoMo is also likely to fully launch FOMA-based 3G from this fall. The telco
is
quickening its shift from PDC system to 3G and, being the current market leader in
the PDC
market, such a move is intensifying the market competition. As a result, IDC
anticipates that
Japan is likely to lead the worldwide 3G market.

Posted to the site on 07-Jul-03
http://www.cellular-news.com/story/9223.shtml

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