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US 3G Subscribers To Hit 28 Million By 2008

US 3G Subscribers To Hit 28 Million By 2008

Uptake of third generation (3G) mobile technology in the US is on the rise, with new predictions from the Yankee Group forecasting 3G subscriber numbers to reach 28 million by 2008, up from the current level of 580,000.

Mobile service providers see 3G technology as a way of opening up new and lucrative revenue streams. However, users have been slow off the mark to embrace the advanced features that 3G offers.

According to a survey by the Yankee Group, mobile subscribers of all ages are still more interested in simple features, such as ring tones and text messaging, than using their phones to download music or for picture and video messaging.

Traditionally the US has lagged behind other advanced wireless markets when it comes to text and other messaging usage. However, recent figures from strategy and management consultancy firm, Analysys, claims that the average user increased messaging activity by 50% last year, forecast to account for 10% of US operators’ revenues by 2008 (see US Catches Up On Mobile Messaging Trend).

The Yankee Group project a similar figure for text messaging revenue streams, estimating that by 2009, messaging will remain the dominant wireless feature in the consumer market, bringing in 51% of mobile application revenues.

In the UK the latest UK Mobile Media Monitor study, found that the majority of younger adults now use picture messaging and the mobile internet, with 36% of mobile owners now using their phones to send and receive picture messages, up from 21% at the same time last year (see UK Mobile Users Embrace Picture Messaging).

The UK Media Monitor claims 40% of females use their phones to send and share pictures, compared to 33% of males. Turning to mobile internet consumption, the study shows that 38% of males use the service, while just 26% of females use WAP.

According to Juniper Research, 3G technology is forecast to enjoy a surge in use, with worldwide subscribers predicted to reach over 300 million by 2010, up from 30 million in 2004.

 
US 3G Subscribers, 2005 & 2008 
  Subscribers % of total wireless market
2005 580,000 0.3%
2008 28,000,000 14%
Source: Yankee Group, January 2006 

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