UMTS: Alive and Well - 4G Americas

network exceeded 120 billion, nearly double the total for the year-earlier quarter. Internet access andmedia bundle revenues also continued their strong growth. 138T-Mobile USA reported that growth in business with data services remained strong in 3Q 2009. Earningsin this area rose by 40 percent year-over-year to $575 million. 139At Rogers Wireless in Canada, data revenue comprised 23 percent of wireless network revenue and washelped by the activation of more than 370,000 additional smartphone devices, predominantly iPhone,BlackBerry and Android devices, during the third quarter 2009, of which approximately 45 percent werenew wireless subscribers. 140Further Information on 3G DevicesIn the third quarter of 2009, AT&T reported 4.3 million postpaid 3G integrated wireless devices added totheir network, the largest quarterly increase in the company's history; integrated device growth included3.2 million iPhone activations, also the company's largest quarterly total to date (integrated devices arehandsets with QWERTY or virtual keyboards in addition to voice functionality). 141 In one year as of 3Q2009, the number of postpaid integrated devices on AT&T's network more than doubled, and at the end ofthe third quarter, 41.7 percent of AT&T's 63.4 million postpaid subscribers had integrated devices. Theaverage ARPU for integrated devices on AT&T's network continued at 1.8 times that of the company'snonintegrated-device base. AT&T's third-quarter integrated device growth included 3.2 million iPhoneactivations, also the company's largest quarterly total to date, with nearly 40 percent of the activations forcustomers who were new to AT&T.One of the main factors in the growth of wireless data revenues at T-Mobile USA in 3Q 2009 was theenormous growth in the popularity of 3G-enabled handsets. In the third quarter alone the operator’snumber grew by one third compared with June 30 to 2.8 million.142 Subscribers with smartphonesrepresented approximately 28 percent of Rogers’ overall postpaid subscriber base, up from 15 percentfrom the same quarter of the year earlier, and were generating significantly higher than average ARPU. 143In Latin America, the smartphone segment will have greater potential for growth than other regionsaccording to Pyramid Research. Given the growing interest by operators in smartphones and intensifiedcompetition among vendors, the region's smartphone segment will represent an opportunity of 150 millionhandset units over the next five years – 48 million handsets units in 2014 alone. 144 The smartphonesegment will become one of the most important sources of data revenue growth over the next five yearsin Latin America, noted Omar Salvador, senior analyst at Pyramid. "The market is still in its infancy,representing only 3 percent of total handset unit sales in 2008; globally the figure was 12 percent,”Salvador explained. “However, Pyramid predicts the segment will grow from 7 million smartphones sold in2009, representing 5.4 percent of total handsets sales, to 48 million in 2014, or 30 percent of the total." 145138 Record Wireless Gains, Double-Digit Growth in IP-Based Revenues, Strong Cash Flow Highlight AT&T's Third-Quarter Results,AT&T 3Q 2009 report, 22 October 2009.139 Deutsche Telekom confirms guidance for the year after good third quarter, Deutsche Telekom, 5 November 2009.140 Rogers Reports Third Quarter 2009 Financial and Operating Results, Rogers Wireless, 27 October 2009.141 Record Wireless Gains, Double-Digit Growth in IP-Based Revenues, Strong Cash Flow Highlight AT&T's Third-Quarter Results,AT&T 3Q 2009 report, 22 October 2009.142 Deutsche Telekom confirms guidance for the year after good third quarter, Deutsche Telekom, 5 November 2009.143 Rogers Reports Third Quarter 2009 Financial and Operating Results, Rogers Wireless, 27 October 2009.144 Latin America's Smartphone Market to Grow to 150 Million Handset Units Through 2014, Pyramid Research, July 2009.145 Ibid.www.3GAmericas.org February 2010 Page 131