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 Palm Blvd > News > The Killer App For Wireless? Still Voice

The Killer App For Wireless? Still Voice

By Michael Singer
October 27, 2003

Wireless companies may be scrambling to offer next-generation messaging and data services to their customers, but new market research suggests the majority only want to use a mobile phone to call someone.

The report issued Monday by Research and Markets Monday said about 95 percent of all revenue generated by mobile operators is based on voice. The remaining 5 percent of the revenue, according to the Dublin, Ireland-based analyst firm, comes from messaging, with a less than 0.5 percent coming from data services such as General Packet Radio Service (GPRS), Wireless Application Protocol (WAP), Enhanced Data for GSM Evolution (EDGE), Bluetooth, 802.11, and the rest of all those new acronyms.

"New innovative uses of Short Message Services (SMS), both in permission based marketing models and in combination with TV, are looking more promising. However, all of these services will not reach more than 15 percent of total mobile revenue," Senior Manager Amy Cole said in her report

According to Research and Markets, GSM is still the major global mobile platform. Other platforms such as Code Division Multiple Access (CDMA) and its variants have support in some countries, but it is expected to remain less used than GSM globally, even into the 3G (define) era. Regionally, the consulting firm suggests Korea is the most exciting example of new mobile data services, but so far it is the only country that is scoring success. Even in Japan it 3G is not catching on and, despite the i-mode success, the net money gains remain questionable.

"While 3G does offer excellent infrastructure features, there is little chance that operators will be able to ask premium prices for services over this new infrastructure," Cole said. "Unless there is a network need for it there is little chance that 3G will be deployed on a large scale."

 
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