Mobile telephony is booming, according to a new report, but operators must focus on coverage and comfort not multimedia hype.
The report, 'Cellular Data Services: Market Opportunities for Packet Upgrades?, by analysts Ovum, predicts the number of users will soar from nine million in 1998 to 297 million by 2007. But despite the huge growth, cellular operators must focus on coverage, simplicity and reliability, rather than rolling out high-speed multimedia and Internet-based services.
The long term potential for cellular data is promising and implementing a packet infrastructure will allow operators to offer more services, but it is complex and costly, the report warned.
?The cellular industry has come to the conclusion that mobile Internet will be the next big thing, forcing mobile operators to install a whole new architecture to cope with demand. However, much of the hype centres on the development of very high speed multimedia applications. The reality is rather more complex than simply mobile Internet,? said Ovum analyst, John Davison.
He believes operators are being pressurised by over-zealous vendors into upgrading their infrastructure to cope with so-called demand. He warned that demand is uncertain and unproven.
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