Leading market research
and industry analysts project a robust future for
the wireless mobility market. Several factors are
expected to fuel the demand for wireless mobility
services, for example:
Increasing use of information
by consumers and business users
Familiarity with the use of Personal Communication Devices
(PCDs)
Declining costs of equipment
and services
Improved network coverage and
wideband capa-bility
Availability of enhanced functional
features in PCDs
The blurring of distinctions
between wired and wireless communications
The convergence of the benefits
of the Internet with the value of mobility (wireless)
In view
of the above factors the number of wireless subscribers
worldwide is expected to increase from 500 million in
2001 to 1.8 billion in 2005 (Ovum). The revenue projections
for PCDs grow from about $50 billion to $150 billion
in the same period. The revenue due to base station
and other network equipment is proportionately high.
Similarly, revenue projections for wireless mobility
services range from approximately $330 billion in 2001,
to over $750 billion in 2005. The combined revenue due
to service, equipment and handset makes the wireless
mobility market the biggest in the entire telecom and
information industry, truly a revenue-generating goldmine!
Furthermore, what differentiates the wireless mobility
market from others, such as the backbone telecommunication
infrastructure market, is the recurring nature of the
revenue streams. Industry analysis indicates that the
wireless handset market will enjoy significant growth
from the replacement of handsets on a regular basis.
Potential
For 3G & Beyond
The
exponential growth in the wireless mobility
industry will be further enhanced through the
introduction of high speed, high capacity wireless
mobility systems based on "true" third
generation (3G) Standards. The recent successful
launches of 3G-type systems in Korea and Japan
will be followed by introductions in Europe
and North America.
The new Standards
are expected to fuel consumer demand for a diverse
range of services such as wireless telephony,
mono- & multi-media mails, Internet, Web,
e-commerce, transactions, remote computing and
entertainment. Specifically, 3G networks will
remove a number of bottlenecks currently faced
by 1G, 2G and 2G+ networks in providing higher
speed multi-media services. The benefits of
3G networks include:
Higher network
capacity
Ease
of access and transmission of content-rich material
and services
Improved
quality of service (QoS)
Integration
of terrestrial and satellite networks
Global roaming
Transmission
rates ranging up to 2000kbps
Integrated
high speed data and voice service access
A variety
of new and exciting applications and services
for wireless users
The distinctive advantages
of 3G cannot be overemphasized, although it
will entail significant changes in existing
business models.
Barriers
to Growth
Wireless systems used today require
a multitude of diverse terminals, programming
environments, operating systems, proprietary
software layers and interfaces. This diversity
poses several challenges to PCD Original Equipment
Manufacturers (OEMs), Application Developers,
and Service Providers (SPs). The integration
of a multitude of applications onto handsets
also requires immense co-ordination between
these players, which in turn increases the
cost targets and "time-to-market"
windows.
