Blog Post

3G Will Make 2006 Mobile Blockbuster

Nokia’s CEO Jorma Ollila says 2006 is going to be fantastic, thanks to growing demand for high end phones in the mature markets, (READ 3G) and markets like the Middle East, the Gulf and Africa.

“The buzz is the same we saw in China seven or eight years ago in the early part of the market cycle, the same we saw a couple of years ago in Latin America,’ he said. Ollila’s designated successor as CEO, Chief Operating Officer Olli-Pekka Kallasvuo, told the FT: “It is not a question of one iconic product; it is a question of many iconic products and that relates to the segmentation of the marketplace.”

Wow… finally the much awaited 3G upgrade cycle has begun, and Nokia and Qualcomm are at the leading edge of it. We are seeing the EVDO rollout gather momentum in the US, especially from Verizon which has been fairly aggressive in pushing that service. Still, it will be sometime before the market really sizzles. Gabriel Brown, Chief Analyst of Unstrung Insider estimates that a “subscription price of $30 (€25) per month will be the point at which mobile broadband over cellular networks will become attractive to the mass market.”

3 Responses to “3G Will Make 2006 Mobile Blockbuster”

  1. Jesse Kopelman

    I think Brown might be too conservative. I could see services take off at $50 if 2 things happen: you can get that price unbundled from voice and networks are ugraded to support better uplink throughput and better latency. Of course, carriers might prefer to make $70-80/month from voice + data than $50/month from a standalone data plan that supported VoIP, so I can see where Brown is coming from. It’s just that, if carriers keep fighting real 3G the way the ILECs fight naked DSL, they continue to drive the demand for municipal broadband. Greed is only good if you can keep the monopoly.