TMCnet News reports (July 7, 2010) that global mobile data traffic is expected to double every year until 2013. Open source development has put many more devices on the network with enhanced data capabilities.

There is much anticipation for the next generation LTE (long-term evolution) high–speed 4G broadband. However, the shift to 4G is being watched with guarded optimism by the carriers themselves who are implementing the technology. Many are waiting for the newest smart phones to become sufficiently competitive in 3G markets before phasing in 4G Technology.

Overseas 3G Market Trends Indicate a Lesson for U.S. Future Markets

Consumer demand is what gives the U.S. market its competitive face. Price competition is nowhere near that of China where both open-source development and a common 3G network architecture have flooded the market with phones.

According to C114.net (May 31, 2010), in “Battling for 3G Supremacy,” last year China Unicom produced marginal results as subsidized marketer and exclusive distributor of Apple’s iPhone. C114.net instead predicts China Mobile’s TD-SCDMA network will rule the market. An earlier May 24, 2010, C114.net article, “ China: Mobile Handset Market, with Forecasts to 2015 with Focus on Smart phone and 3G Handset Sales,” predicts this year China Mobile will market at least 200 phones priced at or below $150 U.S. Furthermore, C114.net (May 31, 2010) credits China Mobile’s OMS (Open Mobile Android–based System) for nine models to be marketed with customized applications for mobile TV and music downloads.

The Implications for the US market

Price competition on the level being experienced in Asia is more difficult to attain here because the U.S, Market is technologically divided. The big four operators are vertically integrated, sharing chunks of CDMA and GSM technology respectively. What is notable about 4G evolution is smaller operators are becoming the first to deploy. It is the phone manufacturers and not the giant telecoms that are creating the basis for competition.

LG, Samsung, Motorola, Sony, Ericson, Verizon, Vodafone (Verizon Europe) are common members of the OHA (Open handset Alliance) and the Limo foundation. The OHA and Limo Foundation are the open-source development organizations responsible for the rapid industry deployment of Android-based phones. They, their embedded suppliers such as Nokia-Siemens, Nortel and Alcatel Lucent also comprise the 3GPP industry standards group who created LTE 4G technology as well as the LTE System Architecture Evolution Trial Initiative (LTSI).

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