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Market Development

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Market Development 
The first phase standardization of GPRS system is completed this year. The second stage is currently going on and it is estimated that GPRS will emerge in the market during the year 2000. 

The market for packet-based cellular services is largely untested and uncertain. Major questions in the introduction of the packet networks are the level of customer acceptance and the degree of integration of service components for cellular data services. To succeed, cellular packet data will need to deliver more effective solutions than existing substitutes, or new applications where no effective substitute exists. 

Trends towards flexible organization of time between work and free time are likely to have a positive effect on the development of cellular data services, such as telecommuting solutions. Also, the increasing use of Internet acts as an enabler. 

Some inhibiting factors include the slower pace of change in formal working structures and the possible slowness in the acceptance of new applications, especially e-commerce, in cellular environment. 

According to Ovum forecast, the cellular data market will finally begin to show its potential over the next few years. The market is affected by the introduction of more integrated service packages on packet data networks and by the emergence of the consumer market. The number of cellular data subscribers will grow from approximately nine million at the end of 1998 to 297 million by 2007 (both packet and circuit-switched services). It is assumed that packet and circuit-switched data subscribers are also users of SMS. Ovum forecasts that by 2007, there will be 262 million packet data users, 44 million circuit-switched data users and 36 million people that only use SMS. 

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Sivua on viimeksi päivitetty 27.11.1998 11:53.
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