Subject: [NEXTEL-1] In-Stat/MDR Reports CDMA 2000-Based Carriers Revving Up Wireless Internet Market

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Date: Thu, 31 Oct 2002 19:41:24 -0500

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In-Stat/MDR Reports CDMA 2000-Based Carriers Revving Up Wireless Internet Market

SCOTTSDALE, Ariz., Oct 30, 2002 (BUSINESS WIRE) -- Although the wireless data/Internet market has had to bear the brunt of some tough public criticism, it is steadily progressing, according to In-Stat/MDR (http://www.instat.com). The high-tech market research firm reports that there are some very bright spots in the wireless data market. The availability of the proper infrastructure and color handsets, and the rollout of next generation services such as CDMA 1xRTT and General Packet Radio Service (GPRS), is aiding the market's growth. Overall, the messaging market (thanks to the newer Enhanced Messaging Service (EMS) and Multimedia Messaging Services (MMS) that support graphics and video) will continue to outstrip the wireless Internet market, in terms of subscribers, through 2006, growing from an estimated 305 million at the end of 2001 to more than 1 billion by the end of 2006. While smaller than the messaging market, the wireless Internet market is growing at the same pace.

Source:

Business Wire

Date:

10/30/2002 08:07

Price:

Free

Document Size:

Short (1 or 2 pages)

Document ID:

FB20021030080000193

Subject(s):

Business; Carrier; Cellular; Consumer; Education; Electronics; Engineering; Environment; Europe; Forecasts; Graphics; Internet; Japan; Legal; Market; Medical; Multimedia; Packet Radio; Products; Publisher; Research; Technology; Video; Wireless

Document Type:

Press releases

In-Stat/MDR Reports CDMA 2000-Based Carriers Revving Up Wireless Internet Market

Story Filed: Wednesday, October 30, 2002 8:07 AM EST

SCOTTSDALE, Ariz., Oct 30, 2002 (BUSINESS WIRE) -- Although the wireless
data/Internet market has had to bear the brunt of some tough public criticism,
it is steadily progressing, according to In-Stat/MDR (
http://www.instat.com).
The high-tech market research firm reports that there are some very bright spots
in the wireless data market. The availability of the proper infrastructure and
color handsets, and the rollout of next generation services such as CDMA 1xRTT
and General Packet Radio Service (GPRS), is aiding the market's growth. Overall,
the messaging market (thanks to the newer Enhanced Messaging Service (EMS) and
Multimedia Messaging Services (MMS) that support graphics and video) will
continue to outstrip the wireless Internet market, in terms of subscribers,
through 2006, growing from an estimated 305 million at the end of 2001 to more
than 1 billion by the end of 2006. While smaller than the messaging market, the
wireless Internet market is growing at the same pace.

"Going forward, the wireless Internet market's future rests largely on service
pricing," said Becky Diercks, a director with In-Stat/MDR. "In most regions,
service pricing is completely inconsistent and far too expensive for the average
consumer. However, Orange's announcement of bargain basement GPRS pricing in
Europe and Nextel and Verizon Wireless' flat pricing in the U.S. are definitely
steps in the right direction. Sprint PCS launched a challenge to other U.S.
providers just last week with extremely aggressive pricing for PCS Vision."
Beyond service pricing, more compelling applications need to come to market and
carriers need to do a better job of tying applications to services for the
market to really take off. Thus far, the CDMA-based carriers are experiencing
more success tying applications to services than are the GPRS carriers.

In-Stat/MDR also found that:

-- The wireless Internet market will grow from 74 million wireless Internet

subscribers, at the end of 2001, to more than 320 million subscribers by the end
of 2006. -- Japan is the obvious early leader in the wireless Internet market,
primarily due to the innovations of NTT DoCoMo, based on Personal Digital
Cellular (PDC) technology. However, competition is growing in Japan, and
DoCoMo's next hope, its Wideband Code Division Multiple Access (W-CDMA)-based
Freedom of Mobile Access (FOMA) service, is largely failing due to minimal
coverage, high device and service pricing, and a lack of applications that set
that technology apart from the earlier generation's service. -- The Korean
market is now coming on strong in the Wireless Internet space, largely fueled by
CDMA technologies, and the United States is not performing as badly as some
might expect. The Wireless Internet market is receiving a further caffeine jolt
from Sun's J2ME and even Qualcomm's Binary Runtime Environment for Wireless
(BREW) technologies. Even WAP is performing satisfactorily, when integrated with
these technologies, in certain markets. -- Europe is largely failing with GPRS
technology and, not including SMS and other messaging services, is falling
behind the rest of the world in terms of wireless data adoption. W-CDMA
technology will likely not be its savior.

The report, "Worldwide Wireless Data/Internet Market: Bright Spots in a Dark
Industry" (#IN020295MD), forecasts the worldwide wireless messaging and Internet
market. Forecasts are broken down in detail, by region (Americas, Europe, Japan,
ROW). Subscriber forecasts for all of the primary air-interface technologies
(circuit-switched CDMA, CDMA 1xRTT, CDMA 1xEVDO, CDMA 1xEVDV, circuit-switched
TDMA and GSM, EDGE, W-CDMA/UMTS, PHS and PDC) are provided. Additional
information is broken down for the U.S. market (private packet services
including CDPD, iDEN, DATATAC and Mobitex) and for two-way messaging (ReFLEX).
Additionally, U.S. subscriber forecasts are broken down by consumer and business
user. Carrier profiles are also included for 30 of the leading mobile operators.
To purchase this report, or for more information, please visit:

http://www.instat.com/catalog/cat-md.htm or contact Erin McKeighan;
[email-masked] at 480/609-4551. The report price is $3,495.

About In-Stat/MDR

In-Stat/MDR (
http://www.instat.com) offers a broad range of information
resources and analytical assets to technology vendors, service providers,
technology professionals, and market specialists worldwide. The company stands
alone in its ability to integrate both supply-side and demand-side research
methodologies into a single comprehensive view of technology markets and
products. This capability relies on a unique ability to cover the entire value
chain from engineering-level technology, through equipment, infrastructure,
services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier
(
www.reedelsevier.com), a world-leading publisher and information provider. With
over 38,000 employees worldwide, Reed Elsevier operates in the science &
medical, legal, education and business-to-business industry sectors, providing
high value and flexible information solutions to professional end users, with
increasing emphasis on the Internet.

In-Stat/MDR

CONTACT: In-Stat/MDR, Scottsdale
Becky Diercks, 617/558-4748
E-mail: [email-masked]
or
Kirsten Skedd (marketing), 480/609-4534
E-mail: [email-masked]

(c) 2002 Business Wire. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.

KEYWORD: ARIZONA

SUBJECT CODE: COMPUTERS/ELECTRONICS

INTERNET

ELECTRONIC

GAMES/MULTIMEDIA

ENTERTAINMENT

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