3G Retains Its Buzz, But Potential Is Still Unclear

Cellular-News picks up a Dow Jones article that writes while 3G was the "buzz phrase for every major telecom company that's reported results so far this month," it still "remains unclear whether its implementation will ratchet up revenue significantly in 2006." The article looks at the 3G efforts by the major U.S. carriers.

According to Ovum, "U.S. data revenue is expected to grow 45% to $12.6 billion in 2006 from a year ago. In comparison, total wireless revenue is expected to grow 10% to $135.86 billion this year."

Network operators are trying to counter declining voice revenues and Ovum analyst Roger Entner said, "Wireless high-speed data is their one shot to stem the precipitous decline in voice (average revenue per user), which they need to make up with really compelling features."