Handset manufacturers now face the challenge of determining what features to implement in the next generation of handsets to capitalize on these so-called 2.5 and 3G services. Strategies Unlimited, a Silicon Valley-based market research firm, has now released a new report that examines the increasingly challenging business environment for mobile services and handsets and forecasts how handset design will evolve over the next five years.

The report, Mobile 2.5G and 3G Handset Features: Global Analysis and Market Forecast 2002-2006, takes an in-depth look at handset features to implement messaging services, digital imaging, GPS and location services, and MP3 player capabilities, using technologies such as Bluetooth and Java, as well as possible trends toward disposable phones.

At the end of 2001, over 975 million subscribers worldwide relied on mobile handsets for a portion of their daily voice communications. Due to slowing subscriber growth and the decline in revenue per user, carriers are under pressure to make the handset essential for more than just voice service to grow revenues. New-data oriented services for 2.5G and 3G handsets are sought as the solutions.

Mobile handset manufacturers also see new data-oriented features as a solution to their problems. Price erosion caused average selling prices for handsets to rapidly decrease, from $226 in 1998 to $169 in 2001. A steady decline in average selling price of basic voice handsets has placed profit pressure on the manufacturers. Adding new features to handsets stabilizes falling selling prices. In addition, the decrease in handsets sold worldwide, from 415 million in 2000 to 403 million units in 2001, has handset makers looking at new features to stimulate replacement sales.

Java-enabled mobile handsets are expected to double each year, increasing from 19.1 million in 2001 to 553 million in 2006. J2ME is expected to rapidly become the de facto standard for delivering both consumer and enterprise applications to mobile devices. Integration of Java acceleration into hardware will facilitate further penetration into handsets. It is expected that 83% of handsets shipped in 2006 will be Java-enabled.

Strategies Unlimited's report, Mobile 2.5G and 3G Handset Features: Global Analysis and Market Forecast 2002-2006, addresses these features with an in-depth look at future handset design. Its analysis and forecasts deliver critical information needed to take advantage of new opportunities. This report is available for delivery at a price of $4,950.

Founded in 1979, Strategies Unlimited specializes in market research and strategic consulting directed at photovoltaic components and systems, optical networking, optoelectronic, and RF/wireless semiconductor industries. The company, based in Mountain View, California, is a research unit of PennWell Corporation, a global media and information company serving the energy and advanced technology markets since 1910.

PennWell Corporation, established in 1910, is a highly diversified media and information company providing authoritative publications, conferences and exhibitions, databases, information products and Internet-based services to strategic markets worldwide. The company publishes over 45 periodicals including Laser Focus World, Lightwave, and Solid State Technology. These strategic markets include petroleum, electric power, electronics, communications, information-technology, water, fire services, manufacturing and healthcare. Its headquarters are in Nashua, NH, and Tulsa, OK, with remote offices and partners located around the globe.

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