Abstract:

With major expenditure on 3G licenses by various network suppliers and massive R&D costs incurred by hand-set manufacturers, it is vital for key market players to optimise 3G strategy. This paper explores the consumer element of these strategies and provides valuable insight in how 3G should be deployed and used in three different European countries and the US. We learn whether consumers are willing to switch to 3G technology when available, the 3G applications of most interest, the price premium that consumers are prepared to pay for the new service and the companies they will trust as 3G service providers. We also examine the relative position of key players in the UK and Germany both on the current technology market and forthcoming 3G technology arena. Results support a strategy of targeting specific consumer groups who will be the first to try and more willing to pay a price premium for these services. Providers with a strong market position continue to be strong 3G providers as long as they remain competitive. There are clear opportunities for a few dynamic wireless companies that appear to be preferred as 3G providers.