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3G Market Set To Expand

3G Market Set To Expand

Mobile phone operator mm02 has announced that it is launching the only own-branded 3G handset in the UK market, planned for release on 1st February.

The news of O2’s entrance into the third generation mobile phone market will help to enforce previous estimations by industry intelligence group, Wireless World Forum, that subscribers of 3G mobile telephones double during 2005, growing from 45 million in 2004, to 85 million in 2005(see Global 3G Subscribers To Double to 85 Million In 2005).

Earlier this week Vodafone released a trading statement for quarter three to December 2004(see Vodafone Predict 3G Penetration Of 10 Million By 2006), announcing that the Group had seen a 3.9 million increase in their data service, Live!. Vodafone expects 10 million people to have signed up for the service.

Consumer take-up of the third generation technology, offering users better quality sound, picture and video has not been as quick as expected , resulting in many operators being unable to comply with the regulations set out by the Government in the 2000 auction for the 3G licences and a relaxation of the rules(see Ofcom Loosens 3G Licence Regulations).

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