Wireless comes of age

The San Diego Union-Tribune writes that "over the past two years, U.S. carriers have quietly built out the long-promised 3G networks, and they're seeking a return on that investment in the form of higher billings for data services such as e-mail, television and music downloads. Now that all the pieces are in place, wireless consumers should brace themselves for a blast of information on services that could rival the marketing frenzy of the dot-com era."

Jorge Fuenzalida at inCode said, "This year, it's all about content – what you're doing beyond talking on the phone." Fuenzalida noted "several factors have come together to create an ideal environment for new services, including handsets with longer battery life and color screens, greater capacity on wireless networks, and a changing consumer base."

He added, "We like to think of things from a supply perspective, but consumers are changing as well. People born in 1990 are now 16 years old, and they've never known life without cell phones.”

According to the Yankee Group, .in 2005 consumers "nearly doubled their spending on non-voice mobile phone services over 2004, shelling out $10.5 billion for data services." The firm "estimates that billings for mobile data services will continue to explode, hitting $25 billion next year and $41 billion by 2010."

Michael King at Gartner said, “You're going to see a ton of experimentation as these guys struggle to figure out the magic formula. Consumers are going to be the ones in control here.”

The article looks at various data services including the much hyped mobile TV. Fuenzalida said, “The standing-up technology of the phone doesn't allow you to watch 'Gone With the Wind,' Full length is not going to be very popular.”

Gartner's King added, “The majority of the 3G phones can display reasonable quality, but on a 3-inch screen, max,” he said. “I'll sit for an hour and watch this thing, and I'll start to get a headache.”