New data from Yankee Group puts 3G subscriber numbers at 28 million by 2008, or about 14% of all wireless users. This would be a notable increase from current levels of 580,000 subscribers and 0.3% of the market but is still low compared to other markets.
Why has 3G penetration remained so low in the US? Yankee Group points out that 3G networks allow for more advanced data content, which appeals to providers searching for ways to increase revenues. But consumers have so far shown little interest in the types of advanced features that make investment in 3G sensible. Additionally, the cost of 3G phones is a deterrent — according to a recent report from iSuppli, the cheapest 3G phones still cost over $200.
Without the promise of increased revenues for providers, there's little point in pouring money in 3G infrastructure. This, in turn, limits the availaiblility 3G services.
According to a survey by Yankee Group, mobile subscribers of all ages, while mostly willing to spend more on services for their mobile phone, are still more enamored of simpler features like ring tones and text messaging, along with e-mail, rather than streamed or downloaded music, and picture or video messaging.
According to a separate Yankee Group report, by 2009, messaging will remain the dominant wireless feature in the consumer market, bringing in 51% of mobile application revenues.
Get a full picture of the US mobile phone market with the North America Wireless Trends report. eMarketer also explores entertainment applications for mobile phones in two recent reports, Mobile Entertainment and Mobile Gaming.