Motorola Predicts 3G Growth, But No Breakthrough Yet

6:15 am on December 22, 2005 | Category: Mobile Devices, Wireless Technology

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US mobile phone maker, Motorola has made a prediction that 3G cell phone sales will continue to gradually increase in 2006, but that the technology likely won’t hit any major breakthroughs right away.

“3G services are not yet at the level that they necessarily would require high-speed data transfers,” said Motorola’s president of mobile devices, Ron Garriques, in a recent interview. “Sales of 3G handsets will certainly grow next year, but it will not be a breakthrough.”

Garriques also said that the 3G technology still has a way to go before completely replacing older handsets.

“Chips are not yet small enough and they don’t guarantee a small enough consumption of electricity. In addition, the cost structure in 3G phones is not as efficient as in GSM and EDGE handsets,” he commented.

Motorola’s biggest challenge for the immediate future is to build a better global distribution network to more effectively compete with current market leader, Nokia. They hope to launch new line of cheap, entry-level handsets for customers in entry-level markets, which Nokia currently dominates.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock