3G UMTS Handsets Maturing – Costs Dropping

As we predicted at the turn of the year, 3G seems to be hitting its stride this year. According to research from Portelligent, the complexity and therefore costs and bugs of 3G handsets has decreased significantly in the recent crop of 3G phones. The research revealed that in order to make a phone with similar functionality, 25% fewer electronic components are used compared to earlier models, and the average number of high-value ICs in the newer handsets is down 50%. Portelligent concludes, as we did, that the time for 3G pessimism is past, and guarded optimism is now appropriate for 3G networks. (Note: technology hurdles were much less of an issue for 3G CDMA EV-DO.)

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