Analysts: Price stalls 3G uptake in Australia

20.07.2006
Australian 3G providers are offering expensive, "all-you-can-eat" plans to avoid choking network capacity.

Currently 3G network usage accounts for 19 percent of mobile telecom consumption.

Telecommunications industry analyst Paul Budde said, because of high pricing, it is unlikely usage will increase.

"Through their pricing [telcos] keep usage on the 3G network under control," Budde said. "Under the current pricing, it is highly unlikely that we will see a massive usage, because there won't be that many people that take up the service at those current price levels."

Telsythe telecommunication analyst Warren Chaisatien said bandwidth usage on 3G networks is marginal, noting that it contributes about 5 percent to mobile data consumption.

"By the end of 2006, data consumption will rise to 20 to 21 percent; however the portion 3G contributes is only about 5 percent, whereas data services such as SMS contribute 70 to 75 percent," Chaisatien said.