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Oyster Bay, NY, Jan 04, 2005

Mobile phone users may be starting to flock to UMTS in their millions, but according to ABI Research, GSM will continue to expand in 2005, thanks to the robust data capabilities of EDGE.

"GSM providers that are continuing to stay with GSM are going to be upgrading to EDGE," says Ray Jodoin, the NY-based technology analysts' principal analyst of wireless infrastructure research. "A lot of the more recent GSM/GPRS base stations that have been built are EDGE-compatible," he notes, "so it's principally a software upgrade that is eminently affordable."

While users will require new handsets to take advantage of EDGE's speed and benefits, more than 100 GSM service providers worldwide have already committed to EDGE, according to Jodoin.

Both UMTS and EDGE will roll out, with UMTS's higher performance capabilities, including streaming video, being deployed in major urban and other areas with high population densities. EDGE is likely to be deployed in other areas and by GSM service providers who are on a budget.

Nonetheless, for the next year, look out for GSM providers to upgrade to EDGE at an ever-increasing rate.