3G operators have concentrated on the heavily populated areas, believing (probably correctly) that is where their target audience is. “However, 3G services are used on mobile phones, and if they are really compelling then people will want to be able to use them wherever they are. If they can’t, it will annoy them. These high- ARPU generators are the customers whom the operators can least afford to annoy”.
Meanwhile, Sony Ericsson has predicted that 10% of its handsets sold in 2005 will be 3G, double the 2004 total of 5%.
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