New Zealanders now have access to world-leading mobile broadband technology with the launch of Telecom’s Mobile Broadband CDMA2000 1xEV-DO Revision A upgrade today, powered by Alcatel-Lucent (Euronext Paris and NYSE: ALU) solutions.

“New Zealand is one of the first countries in the world to have this technology, which makes possible a whole new world of real-time mobile services,” said Simon Moutter, Chief Operating Officer – Business, Telecom New Zealand. “It offers super-fast mobile data speeds for both downloading and uploading data, which means that wherever they are, customers will be able to use their notebooks, laptops and other mobile devices to enjoy services such as video conferencing, multi-player gaming, and streaming video.

“Super-fast upload speeds means that Mobile Broadband powered by Rev. A is ideal for remote workers wanting to send large files, as well as receive them. For example, photographers will be able to send large photo files directly from location shoots much more quickly and easily. Mobile Broadband Rev. A makes it feasible for many more New Zealanders to work effectively away from their office, wherever they need to be,” said Mr Moutter.

Mobile Broadband Rev. A offers average download speeds of 800Kilobits per second (Kbps) and average upload speeds of around 300Kbps. It employs CDMA2000 1xEV-DO Revision A technology, the next step up in the development path for the CDMA 1xEV-DO network behind Telecom’s current Mobile Broadband offering. The upgrade was carried out by Alcatel-Lucent, which built and now manages Telecom’s mobile data network.

Mobile Broadband Rev. A is available initially in the Auckland CBD area. It will be available in other metropolitan areas starting from early 2007 and rolled out throughout New Zealand during the course of the next year.

Hilary Mine, head of Alcatel-Lucent’s Australasia Regional Unit, said the launch of Mobile Broadband Rev. A is another example of the strength of Telecom’s mobile technology path. “Upgrading to Rev. A will ensure that New Zealand remains at the forefront of global mobile innovation and enable Telecom to continue delivering a truly world-class mobile broadband service for customers.

“This is one of the first deployments in the world of EV-DO Revision A, and the rapid growth of EV-DO subscribers beyond New Zealand means a ready demand for new applications and services based on the technology. We can expect to see some very exciting developments and it’s fantastic that New Zealand and New Zealanders will be at the forefront of them.”

W-CDMA and CDMA2000 1xEV-DO 3G technologies are on target to reach 167 million users by the end of this year, climbing to pass the one billion mark in 2010 according to new research from the Wireless Network Strategies service at Strategy Analytics. In this report, “Worldwide Cellular User Forecasts 2006-2011,” Strategy Analytics also predicts that 3G users will account for more than half of all cellular service revenues by 2010, despite the fact that 3G users only account for just one-third of a 3 billion user wireless market.

Phil Kendall, Director, Global Wireless Practice, notes, “Having passed the 100 million subscriber mark in early June 2006, the 3G market will now enjoy a period of sustained growth. Verizon Wireless is driving a real surge in 3G demand in the US, while China and India will start 3G services next year. With Indonesian 3G services already live, and more of the world’s major population centers, such as Brazil, Pakistan and Russia, coming online later in the decade, by 2009, we will see more than one quarter of a billion subscribers being added to 3G networks each year.”

David Kerr, VP Global Wireless Practice, adds, “3G still has its detractors, but it is starting to make a significant contribution to the wireless market place. Even in emerging markets it will generate more than one quarter of service revenues by the end of this decade, providing an important source of ARPU uplift as more and more marginal users enter the market.”

After years of market uncertainty, with investors wringing their hands and restructuring their finances, 3G has finally gained credibility.

“3G subscriptions, including CDMA2000, are forecast to hit 285 million by the end of 2006,” says ABI Research’s Asia-Pacific director, Jake Saunders. He goes on to say that, “Operators’ overall capital expenditure will grow for the fourth year to reach $126.4 billion, and annual 3G-related handset shipments should pull past 300 million.”

W-CDMA is starting to pull its weight in the 3G stakes, and is expected to overhaul CDMA2000 by about 2012, but CDMA2000 is certainly not out for the count: it has proved to be an efficient solution. Nevertheless, W-CDMA will continue to keep the pressure on, and as end-users replace their GSM handsets, many will default to purchasing a W-CDMA handset, providing manufacturers with increasing economies of scale.

But not even W-CDMA backers can afford to stand still. TD-SCDMA may be taking time to reach commercial reality in China, but it is already clear that Chinese infrastructure vendors, such as Datang Mobile, are re-engineering their solutions to offer a hybrid TD-SCDMA/HSDPA solution that makes the most of both technologies. WiMAX, too, cannot be underestimated.

These access technologies dictate the overall cost of service delivery and the functionality of the value-added services that operators wish to offer. They also determine which camps of vendors (and their upstream and downstream component suppliers) will receive the lion’s share of the equipment-spending pie. Intangible factors such as legacy equipment integration, access to towers, backhaul infrastructure, handset lineups, and vendor financing also enter the equation.

“The exciting prospect is that national markets could be opening up to alternative access technologies more than ever before,” says Saunders. “If the vendors of the new alternative 3G+ solutions can demonstrate that they can operate alongside existing 3G and even 2G infrastructures, the opportunities for new entrants (or even a few industry veterans such as Qualcomm and Lucent) could suddenly look a lot brighter.”

ABI Research’s new study, “3G Mobile Market Trends” surveys the current 2G and 3G cellular landscape, identifies markets with the greatest potential for 3G and 3G+ development, and compares the various 2G, 3G, and 3G+ access technologies. It includes 3G subscriber and handset shipment numbers, and considers the operators and the evolution of their CAPEX. The study forms a part of three ABI Research Services, Mobile Broadband, Mobile Operators and Wireless Infrastructure.