Home >
UMTS
Monday, May 4, 2004
Subscriber numbers in western Europe to remain low until at least
2005, finds report
Only five million customers in western Europe will be using a 3G mobile
device by the end of 2004, and subscriber numbers will remain low until at
least 2005, market researchers have predicted.
A report by Analysys Research found that, despite a number of 3G service
launches in 2004, there will be just 5.3 million 3G subscribers in western
Europe by the end of the year, up from 600,000 at the end of 2003.
But a growing number of major launches, expected to happen towards the end
of 2004, will result in "significant growth" in 3G subscriber numbers from
2005 onwards.
Demand for 3G services is then expected to rise quickly, with around 70 per
cent (240 million) of all western European mobile subscribers using a
3G-enabled device by the end of 2009.
"Several western European operators have launched 3G data services in 2004,
increasing the likelihood that others like Orange, T-Mobile and TIM will be
successful in entering the 3G mass market during the year," said report
author Ariel Dajes.
"Recent market developments also make it more likely that handset
manufacturers like Nokia will be able to deliver sufficient numbers of 3G
handsets of the right quality in the second half of 2004.
"3G handset design has been widely criticised by operators with complaints
that size, appearance and battery life will not be acceptable to customers
who, over the past few years, have seen huge innovation in GSM handsets.
"At the same time, equipment manufacturers have complained that issues
surrounding handset availability are to do with networks not being ready to
enable proper testing."
The report also discovered that poor network coverage issues are being
addressed in some cases through the use of alternative technologies like
Enhanced Data for GSM Evolution (Edge).
A number of operators, such as Orange, were found to be deploying Edge to
enhance their GPRS networks and to complement their 3G W-CDMA coverage in
rural and low traffic areas
