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3G Phones 3G networks and their higher data rates will enable the kinds of data services that will draw a wider audience and translate into higher average rate per unit (ARPU) for operators, insists Patricia Russo, chairwoman and CEO of Lucent Technologies, at the recently held CTIA show in New Orleans. Clear evidence, she reports, is coming from Korea Telecom’s CDMA 2000 1x EV-DO network, which added 1.3 million new users in 2004 and a 45-percent increase in revenues. In Japan and Korea, the base categories of ring tones and music have been successful on 3G phones, along with mobile video and music, reports Rajeev Chand, senior equity analyst for wireless research at Rutberg & Company Research. Location-based services and pictures have not had quite the same success, however. “3G clearly lets you do more voice calls and it really is all about multimedia such as wireless gaming. The question is where is the ROI (return on investment) and what applications will drive ROI for 3G investments. It’s a big pipe. What do you fill it with and what do people want? But there certainly are lots of opportunities,” Chand says. |
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