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Despite all of the dark clouds above 2.5G and 3G created by pessimists without patience, the evolution of second generation networks will provide very positive results for many involved in the wireless industry once the migration is complete, according to a new 2.5G and 3G study from Allied Business Intelligence Inc. (ABI).

2.5G and 3G operators will realize almost $300 billion worldwide in subscriber revenues from an audience of over half of a billion 2.5G and 3G subscribers in 2006, while infrastructure vendors will see over $100 billion in infrastructure sales of 2.5G and 3G base stations through 2006.

"The key is realizing that this is an upgrade path in many cases, and the building of new networks by large carriers with a sizeable customer base in others," said ABI President Larry Swasey, the main author of the report. "In both cases, subscribers can be turned over to new services rather easily, but like any other evolution in technology it will take some years to complete the transition."

All of the 2.5G and 3G air interfaces -- 1XRTT, EDGE, GPRS and WCDMA -- should realize a good subscriber base as operators best match their needs with existing infrastructure and their customer base. Each path will provide operators with higher revenues as subscribers are offered everything from simple Internet access to live video streaming, location-based services and opportunities to use mcommerce.

Over half of all handset shipments will be 2.5G and 3G compliant, while over three-fourths of all handsets will have some type of data connectivity by 2006, according to the ABI report, "2.5G and 3G -- The Evolution of the Wireless Network."

The report covers 2G, 2.5G and 3G subscribers and subscriber revenues broken down by air interface by region by year, 2.5G and 3G infrastructure deployment and revenues by region by year and looks at leading applications such as LBS, IVIS and mcommerce. The 2.5G and 3G upgrade paths and explanations of regional factors in the uptake of 2.5G and 3G. Also given are i-mode, WAP and Bluetooth and 2.5G and 3G device shipment forecasts, as well as device shipment forecasts for other wireless data connectivity through PDAs, laptops and web tablets.

Allied Business Intelligence Inc. is an Oyster Bay, NY-based technology research think tank publishing strategic research on the broadband, wireless, electronics, networking and energy industries. Details of these studies can be found at http://alliedworld.com or by calling 516-624-3113.

SOURCE Allied Business Intelligence Inc.

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