Investment required for UMTS adoption too high says Arthur D. Little.
TELECOMWORLDWIRE-(C) 1994-9 M2 COMMUNICATIONS LTD The level and type of investment required for the Universal Mobile Telecomms System (UMTS) is slowing its adoption according to consulting firm, Arthur D. Little. The firm has conducted a survey focussing on the value attached to UMTS technology, which included telecomms operators, regulators, equipment manufacturers and financiers. Results of the survey showed that only 15% of mobile users across Europe expect to be using UMTS by 2005 with growth to a 45% adoption rate expected by 2010. Data traffic is expected to overtake voice on mobile networks with 49% of respondents expecting this changeover by 2005. Most, around 70%, of those surveyed believe that the value of UMTS lies in growing new revenues rather than protecting existing ones. A spokesperson for Arthur D. Little said that investment in UMTS is high risk because there is no ability to predict if demand will justify investment. UMTS licences are coming up for auction in Autumn with five available.