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3G WIRELESS OPERATOR REVENUE TO SURGE MORE THAN 71 PERCENT May 31, 2000 - 3G Wireless PASIPPANY, NJ, May 31, 2000 - Wireless third generation (3G) operator revenue will see an annual revenue growth of more than 71 percent over the next 5 years according to a new study from PBI Media, based here. Wireless operator revenue, according to the study, will jump from $4.3 billion in 2002 to $63 billion 2007 while wireless infrastructure purchases will grow more than 53 percent annually from $4 billion to $34 billion during the same 5-year period. 3G mobile communication systems apply high-speed data transfer and state-of-the-art radio terminal technology enabling wireless multimedia service. "3G Wireless is not simply improved cellular telephony," explained John Freidenfelds, a consultant for PBI Media, a global research and consulting firm focused on the high-growth telecom and IT industries. "For those companies involved including AT&T Wireless Group (NYSE:AWE), Verizon (NYSE:VOD, NYSE:BEL and NYSE:GTE), SBC Communications (NYSE: SBC) and Sprint PCS Group (NYSE:PCS), 3G is their opportunity to build the wireless Internet. Operators are already testing the waters using today's 2G technology, for example, with Wireless Application Protocol (WAP)-enabled phones. But 3G will really bring us into the new wireless Internet era." Currently there is no single standard for 3G, and with three existing technologies considered 2G, many variants -- 2G+, 2.5G, 3G, even 4G - are vying for market attention and standards body acceptance. "We already see interim technology enhancements being called "3G"," said Freidenfelds. "Whatever gets deployed will be labeled "3G", and detractors will disparage it as only "2G"." "Wireless operators expect rapid time to market - deployment on Internet time", said Freidenfelds. " Wireless operators wield buying power. Consolidations have vaulted two new giants past AT&T Wireless Group (NYSE: AWE), the former market leader. Verizon, made up of Vodafone AirTouch (NYSE: VOD), Bell Atlantic (NYSE:BEL), Frontier, PrimeCo and GTE (NYSE:GTE)(pending) now has 2.5 times the subscribers of AT&T. SBC (NYSE:SBC), having incorporated Comcast (NYSE:CCZ), Ameritech, and BellSouth (NYSE: BLS) (pending) is 1.7 times the size of AT&T. And more consolidations will shrink the number of US wireless operators even further." "The combination of technology uncertainty and customer volatility will, however, create tremendous financial risk throughout the industry," said Freidenfelds. "The winners will be willing to deplete their cash flow and reserves to win. For infrastructure vendors such as Lucent (NYSE: LU), Ericsson (NASDAQ: ERICY), Nokia (NYSE:NOK), Nortel Networks (NYSE:NT), Motorola (NYSE:MOT), Siemens and Alcatel (NYSE;ALA), the challenge is onerous . They already face the issue of investing in multiple technologies so as not to be locked out. These vendors also will face increasing competition from new data and application-oriented suppliers such as Cisco (NASDAQ: CSCO) and 3Com (NASDAQ:COMS). These conclusions are based on primary research with more than 30 wireless operators and 175 business decision-makers. To purchase this study contact PBI Media at 973-884-0100 or infotech@accessintel.com. PBI Media (http://www.thephillipsgroup.net), a global professional services company with offices in Parsippany, N.J., London and Washington, D.C., specializes in market intelligence for the telecommunications and information technologies industries. In addition to conducting primary research studies, the company offers a comprehensive range of professional services, including custom consulting, InfoTracksm and TelecomTacticssm competitive intelligence products, professional conferences, market and competitor analyses and custom marketing programs. PBI Media is a division of Phillips International, Inc. (www.accessintel.com), a private company based in Potomac, Md., with annual sales of $350 million. One of the leading publishers in America, with a fast-growing Internet business, Phillips provides a wide variety of quality products and services for both consumer and business-to-business markets. |
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