Three years ago, the euphoria surrounding 3G resulted in operators spending billions of dollars in licensing fees, solely based on exponential calculations of growth in subscribers and average revenues per user (ARPUs). But to their disappointment, some
operators now find it difficult to recover their investments, and most have delayed their plans to deploy 3G, according to a study by research firm Allied Business Intelligence (ABI).

Since the launch of its pioneer 3G-based WCDMA services in October 2001, Japanese mobile operator NTTDoCoMo has been able to garner only about 330,000 subscribers through March 2003. Though efforts to stabilize the technical hurdles have paid off, recent launches in Western Europe may face similar teething problems. Further, though primarily complementary in nature, EDGE and Wi-Fi technologies may influence the deployment of some 3G networks.

ABI research indicates that the major hurdles for implementation of 3G have
been the following:

· Unrealistic projections by operators
· Complexities in network infrastructure
· Handset interoperability
· Stringent regulatory conditions

"Operators may be forced to upgrade to the 3G network in the long run, due to an expected thirst for voice capacity and not necessarily because of its higher data speeds," says Kenil Vora, ABI analyst and author of the report.

The report, "Wireless Network Operator Strategies," examines the approaches adopted by major global operators and provides a realistic outlook on where the industry is headed. The report covers six different regions and the projected deployment timelines of 2.5G and 3G within them. The report also includes deployment projections for WCDMA, CDMA2000, EDGE, MMS and Wi-Fi technologies, as adopted by various operators. The study is available as a standalone report or as part of ABI's Wireless Operators Subscription Service.

Allied Business Intelligence Inc. is an Oyster Bay, N.Y.-based technology market research firm founded in 1990. ABI publishes research and technology intelligence on the wireless, automotive, electronics, networking and energy
industries.