3GPP - 4G Americas

expanded its lead over Japan in mobile data service revenues for the year in the first half of 2008
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and is unlikely to cede ground in the months to come, according to Chetan Sharma.
Based on 3Q 2008 earnings reports from mobile operators in the region, Informa Telecoms &
Media and Merrill Lynch cited the average data contribution to ARPU in Latin America was 14%.
Countries with the highest data contribution to ARPU were: Argentina (27%), Venezuela (31%),
Mexico (17%), Ecuador (16%), Chile (11%), Brazil (10%), Peru (8%) and Colombia (5%).
Messaging and mobile email continues to be the largest source of mobile data use and SNL
Kagan predicts that 62% of wireless subscribers will utilize these services by 2017. Additionally,
SNL Kagan expects mobile data revenue to increase by a compound annual growth rate of 16%
from $24 billion in 2007 to exceed $100 billion in 2017 and wireless subscribers will reach 90%
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per capita penetration.
4.3 3G DEVICES
The number of 3G enabled terminals has increased significantly since their introduction in 2004.
Also, the size, features and weight of these units have fallen to a point where these handsets are
more competitive vis-à-vis 2G handsets. In May 2008, Lehman estimated the average selling
price of 3G handsets (not differentiating between 3G technologies) to have declined to around
US$250, with the lowest priced unit at around US$125 (from Chinese vendors such as Huawei
and ZTE). 33 Lehman speculates that more network operators are willing to subsidize the cost of
3G handsets for their high-end customers as an encouragement to switch to 3G and thereby
open up capacity on their 2G networks and reducing overall CAPEX requirements. Lehman
perceives improved 3G terminal devices with more attractive pricing as a contributing factor in
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driving 3G subscriber growth going forward.
The sheer volume and variety of HSPA devices continues to explode. As of year-end 2008, there
were more than 1,053 commercial HSPA devices worldwide from 126 suppliers including
including 336 handsets, 76 data cards, 272 notebooks, 55 wireless routers, 99 USB modems and
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46 embedded modules plus other devices such as surveillance cameras. For example, a
wireless dome camera system by CCTV with HSUPA connectivity that can be rapidly installed for
remote monitoring applications onto lighting columns, buildings or any fixed structure will fall back
to HSDPA, UMTS and GPRS technologies for coverage in almost any environment. In addition,
the new devices are not solely enterprise-oriented, for example, T-Mobile USA launched a
cellular picture frame just in time for the holiday shopping season in 2008. The T-Mobile Cameo
is a picture frame with its own cellular modem so it can receive photos directly from mobile
phones and sells for $100 plus a $10 monthly service fee. This is a unique way for operators to
increase their subscribership without actually adding new human subscribers.
31
1H 2008 Report. Chetan Sharma. 2008.
32
SNL Kagan Expects Wireless Data Revenue to Increase at a 16% Annual Rate Over the Next Decade.
FierceWireless. 1 August 2008.
33
Wuh, Paul. Global 3G Developments: 3G subs accelerate, more data revenue in ’09. Lehman Global
Equity Research. 23 May 2008.
34
Ibid.
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http://hspa.gsmworld.com
www.3GAmericas.org February 2009 Page 22