“HSDPA operators must give better thought to applications,” says visiongain report

HSDPA is now beginning to make market inroads worldwide, with 29 commercial launches as of end-May 2006, and at least a further 32 live networks expected by the end of 2006. Visiongain expects accelerated momentum in 2007 onwards as the benefits of HSDPA lure investments from 3G operators.

Mobile operators are deploying HSDPA in an effort to offer users a true mobile broadband experience and compete more effectively with DSL service providers. HSDPA will enable these operators to provide advanced multimedia and content services, and in the process deliver on the promise of 3G.

However, while HSDPA upgrades are a logical course of action for most operators, visiongain warns that operators should still carefully evaluate their strategies with this technology and recognise its limitations – HSDPA does not come without costs or risks.

“For most operators, HSDPA is relatively cheap and easy to deploy compared to W-CDMA. And operators are hugely enthusiastic that HSDPA will stimulate data ARPU. However, a faster data rate will not in itself enhance the user experience and stimulate mobile data usage,” says visiongain analyst and the report’s lead author Goran Nastic.

“Most operators across Western Europe report that only 10% of users with Web-enabled devices are active and regular users,” says Nastic, adding that “This has little to do with a plain bandwidth issue. HSDPA is not the answer but it is a step in the right direction.”

This report provides an update on the status of HSDPA networks and devices worldwide, examining the benefits, opportunities and risks to consider for operators, vendors and consumers. The report details HSDPA deployment schedules and examines the pricing and marketing strategies adopted by commercial HSDPA networks. HSDPA's positioning with DSL, WiMAX and other BWA solutions is also analysed.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, including the Executive Summary, charts and images, please send an email to sara.peerun@visiongain.com or phone Sara on +44 (0) 20 8767 6711.

About visiongain
Visiongain is one of the fastest growing and most innovative independent media companies in Europe. Based in London, UK, visiongain produces a host of business-2-business conferences, newsletters, management reports and e-zines focusing on the Telecoms, Pharmaceutical and Defence sectors. Visiongain has a global client base, with offices in London and San Francisco.

Visiongain publishes reports produced by its in-house analysts, who are qualified experts in their field. Visiongain has firmly established itself as the first port-of-call for the business professional, who needs independent, high quality, original material to rely and depend on.

For more information on visiongain, please visit the website: www.visiongainintelligence.com