Sir - Finally, there is evidence that 3G is on the verge of providing operators with long anticipated revenues.
The key elements (handsets, networks and services) are now coming together, and the potential for retailers is clear. Although its guidance for the coming year is cautious and does not assume significant 3G revenue, there is clearly room for growth. For instance, the majority of its 3G sales to date have been on the ‘3’ network. With big-hitters such as Vodafone and Orange entering the 3G market, the opportunity to grow this business is clear.
There are two remaining factors that will pace revenue growth: the availability of a wider range of attractive handsets to encourage consumers to upgrade, and (much) lower charges for data calls. Until the current prohibitive data costs come down, consumer uptake will be cautious and operators won’t reap the rewards of increased sales and average revenue per unit.
