Wireless Confab in Vegas

Written by Eric Olsen
Published October 19, 2002

The Cellular Telecommunications and Internet Association held its Wireless IT show in Las Vegas this week:

    U.S. users sent almost a billion text messages between January and June 2002 compared to just 30,000 during the same period of 2001, according to new figures released by the Cellular Telecommunications and Internet Association at its Wireless IT show in Las Vegas this week.

    The CTIA's research found that as of June 2002, 65% of all devices were data-capable, an increase of 60% over the year before. The industry group also reported that the amount of money carriers made from data services in
    six months more than doubled from the first half of 2001 to the first half
    of 2002.

    These figures ran true to Linda Barrabee, senior analyst for wireless/mobile
    services at the Yankee Group. Barrabee told Total Telecom that only a small
    proportion of the user base is text messaging at present (reportedly just 9
    million out of the total 140 million phone users).

    "We do see significant growth in data services but it isn't a significant
    contributor to ARPU," she said. She added that the Yankee Group has halved
    its Q3 mobile data forecasts to US$5.8 million in 2006 (from $0.07 million
    this year), not least because "carriers have already started to compete on
    price before the market has really materialized."

    In contrast IDC reckons the business market for mobile data will itself be
    worth $16.8 million in 2006.

    Representatives from Sega.com, Sony Pictures Digital Entertainment and EMI
    Recorded Music took part in a keynote address on Thursday - the first time
    such a line-up has appeared at a CTIA show.

    According to Fabrice Grinda, a speaker at the show and CEO of Zingy, a major
    content provider, the debate so far has focused on why the U.S. has been
    slower than other regions to develop a market for mobile applications and
    entertainment.

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Wireless Confab in Vegas
Published: October 19, 2002
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Section: Culture
Writer: Eric Olsen
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