$25 Billion North American Mobile Internet Access Market

The convergence of powerful next- generation networks, faster and smarter devices, and superior applications positions the emerging North American mobile Internet access market on the threshold of rapid future adoption and growth.

New analysis from Frost & Sullivan, North American Mobile Internet Access Market, reveals that revenues in this industry totaled $2.7 billion in 2002, and are projected to reach $24.6 billion by 2008.

The evolving mobile Internet access market in North America stands poised
for rapid future growth, propelled by the development of next-generation
networks, faster and smarter devices, and revolutionary applications.
Also, the move from a voice- to a data-centric multimedia environment is
witnessing a paradigm shift from "circuit-switched" to "packet-switched"
networks, which impart greater value to the user by providing an "always-on"
connection to the Internet.

As operators increasingly invest in technologies such as general packet
radio services (GPRS) and code-division multiple access 2000 (CDMA2000), they
will shift to a billing pattern based on packets used, instead of time.
However, a major challenge associated with this shift is the need to
educate end users and change their perceptions about the value derived from
packet-based billing.

"At the outset, network operators need to focus their marketing efforts on
ensuring that their customers are comfortable with packet-based billing," says
Frost & Sullivan Research Analyst Kshitij Moghe. "Only when this happens will
they realize higher network usage through higher adoption rates of different
mobile applications."

Operators that are able to ally next-generation networks and smarter
devices with exceptional content hold the key to success. Identifying killer
applications that enrich the user's experience is all-important. At present,
only messaging and e-mail come close to being tagged "Killer-Apps", although a
host of other applications such as entertainment, infotainment, and corporate
Intranet access are gradually gaining acceptance.

"Network operators will need to focus on developing strategic alliances
through revenue-sharing agreements with leading content developers," says
Moghe.

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