Europe to dominate 3G-based mobile commerce market

As 3G (third generation) wireless networks are built out, mobile commerce will become a substantial source of revenue for wireless carriers.

As 3G (third generation) wireless networks are built out, mobile commerce will become a substantial source of revenue for wireless carriers, according to a new report from Cahners In-Stat Group.

The high-tech market research firm reports that Europe, by virtue of size and choice of a single unified 3G wireless standard, will be the largest market for mobile commerce services, closely followed by Japan, whose per-capita consumption of mobile commerce services will exceed even that of the Europeans.

‘Certain words and phrases, like WAP (Wireless Application Protocol), the wireless web and 3G have lost popularity in recent months, victims of delays, poor implementation and low customer interest,’ says Ken Hyers, Senior Analyst with In-Stat’s Mobile Commerce service. ‘However, carriers should not despair. The long-term outlook for this space is favourable, with total 2G and 3G-based combined mobile commerce projected to grow considerably through 2005.’

In-Stat has also found that despite the fact that mobile commerce is expected to contribute billions of dollars in revenue for 3G carriers, the cost of deploying advanced services must be weighed against the high costs of bidding for 3G licenses and for building out 3G networks.

Infotainment commerce is expected to be the source of the bulk of revenues from mobile commerce for both 3G carriers and merchants. 70% to 95% of carriers’ total m-commerce revenue will be derived from these sources.

The Rest of the World (ROW) will be eager users of 3G mobile commerce services, dominated by China and other Asian markets, once 3G networks are rolled out.

The Americas will continue to suffice with fragmented network standards and will not have access to 3G services, and consequently, 3G mobile commerce, before 2005.

The report price is $2,995.

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