POC 'pushing' handset sales.

OYSTER BAY, NY -- Having launched, in late 2003, the world's first GSM-based push-to-talk-over-cellular (POC) enabled handset, Nokia plans to provide POC in all 2.5G and 3G handsets by 2005. As a standard feature in handsets, POC may finally enter markets beyond the Americas. Nearly 20 operators across the globe are considering deploying POC services, says ABI (abiresearch.com). The tech research firm projects about 540 million wireless handsets will be sold in 2005.

Operators like Verizon and Sprint PCS have joined the POC bandwagon. Nextel is the largest player, with 12.3 million subscribers. Verizon gained about 100,000 users in six weeks after launching its own push-to-talk service. POC services require a relatively less expensive handset and historically have generated a highly loyal user base--and a higher ARPU (average revenue per user). So, unlike other data services like picture messaging, which require more expensive handsets and offer a lower boost to ARPU, the exact opposite is true for POC services.