Mobility-focused applications and consumer-based data services and devices will drive the North American wireless data market to grow from 7.3 million subscribers in 2000 to 137.5 million subscribers
in 2005, according to Dataquest Inc., a unit of Gartner, Inc.
This growth will be driven by the rollout of packet data networks on a nationwide basis, increased overall usage of wireless devices
to receive messages and email, inexpensive wireless data devices, and company specific applications, which improve the productivity of the mobile worker.
"Increasing mobilization capabilities of
work forces, together with additional competitive pressures will drive the adoption of wireless data to enable corporate applications such as e-mail and messaging as well as specific vertical
applications such as field service, and sales/inventory programs," said Tole Hart, senior industry analyst for Gartner Dataquest's worldwide Telecommunications and Networking group.
Circuit-switched data service was the leading technology type by subscriber in 2000 with 38% of all wireless data subscribers. This was primarily because of the strong push by Sprint PCS and Verizon
in gaining wireless Web customers. By 2005, 70% of wireless data subscribers will be using cellular packet data networks. These networks provide strong coverage, combined voice and data plans with
operators, and faster-speed service. Gartner Dataquest analysts said many of the subscribers that used circuit-switched service would switch over to packet networks because of their always-on
capability.
Handsets will continue to lead in sheer numbers of access devices, but PDAs will quickly gain popularity, as wireless connectivity becomes standard. Application-specific devices, such
as wirelessly equipped gaming devices and QWERTY keyboard enhanced handsets, to take advantage of higher-speed services and application types will also roll out in the 2002-to-2003 timeframe.
"Continued mobile device evolution will have a direct impact on the increasing uptake of mobile data services," said Michael King, senior industry analyst for Gartner Dataquest's worldwide
Telecommunications and Networking group. "Larger displays, better input capabilities and enhanced form factors will increase usability, thereby adding even more to the expanding mobile data user base.
We expect that the data focus and higher-speed functionality technologies will penetrate all segments of the handset market starting with higher-end, higher-cost devices first, but quickly trickling
down to the lower-end, lower-cost devices."