Beyond handsets and networks, several other crucial elements fall within the strategy of the operator in making 3G a success. "A complete strategy involves looking at target market, tariff, branding, content and applications, portal, marketing and distribution, service quality; all of which tantamount to providing quality of the end-user experience," says Alayne Wong, Research Manager of Wireless Communications Research, IDC Asia/Pacific. "If implemented well, new revenue generating opportunities from 3G services abound for service providers."

One of the early pains of operators has been the lack of 3G handset choices, which has deterred impending operators who have been weighing their time to market, biding for the perfect time to optimize returns with a fast take-off. Today the availability of suitable devices has improved with models coming into the market with enhanced form factors and feature specifications. But as we progressively cross this first hurdle, network performance, pricing and service positioning will become increasing areas of focus to move 3G from niche to mainstream. Integral to the 3G value proposition lies content and applications but the jury is still out on how compelling video calling is, to warrant a premium price. To top this, a deeper enigma lies in target marketing to extend the reach of 3G services across different consumer and enterprise segments. However, once 3G networks are launched, there is no turning back. As more operators come into the market with 3G services, competition will drive 3G into the mainstream.

South Korea is a trailblazer with more than a quarter of mobile subscribers on 3G networks after three years of operation. More importantly, the mobile data Average Revenue Per Unit (ARPU) of 3G subscribers in South Korea has increased to more than double those 2G subscribers. In Australia and Hong Kong, after an initial period of slow take-up and tweaking with the competitive positioning of 3G services, 3G has started to gain traction with encouraging signs of sustained adoption. As a next generation technology and service, 3G can be a powerful tool for operators to leverage to compete in the marketplace. 3G provided the first mover, Hutchison in both Australia and Hong Kong, the opportunity to lure high ARPU customers from its competitors.

For the region, the gradual and steady take-up is sending signals that various key elements are in place to spur 3G adoption and the scene is set for progressive launches by more 3G entrants. By the end of the forecast period in 2009, IDC expects that 3G services would have penetrated more than 12% of total mobile subscribers in the region, with South Korea leading at 63%, followed by Hong Kong, Australia, Singapore then Taiwan.

Source:  IDC is a global provider of market intelligence, advisory services, and events for the information technology and telecommunications industries. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. For more details, visit www.idc.com