The majority of mobile devices being offered to customers around the world are now compatible with WCDMA-based 3G networks, according to new Wireless Intelligence research. 3G devices now account on average for two-thirds of operator device portfolios in mature markets, and almost half of the devices offered by operators in emerging markets. The increasing selection and availability of 3G devices is due to improved 3G network coverage, lower device costs and a focus on mobile broadband services, the study found. Dedicated data-only mobile broadband devices - such as dongles and laptop datacards - represent around 15% of the total devices offered by global operators.

Wireless Intelligence's handset portfolio research was conducted in the opening quarter of the year, spanning 36 key mobile operators in 19 countries around the world. The study is based on the handsets offered by operators via their online retail stores so does not reflect unit volumes or sales to end users. Despite the rise in compatible handsets on offer, 3G still only accounts for around a third of operator connections in mature markets and one in ten in emerging markets. According to our data, total global mobile connections reached 5 billion at the beginning of the month with 3G (WCDMA) connections accounting for 11% (approx. 550 million) of the total.

"It's taken a long time for 3G devices to come-of-age as they have often suffered from high prices and poor design, but generous operator subsidies and unlimited data plans have helped to boost adoption in recent years," said Joss Gillet, Senior Analyst, Wireless Intelligence. "Our new research shows that most mobile operators around the world are now heavily promoting 3G-capable devices in order to tap into new mobile data revenues and push into mobile broadband."

Sweden was deemed to be the world's most advanced 3G market, the study found. Over 90% of the devices offered by leading Swedish operators TeliaSonera and Telenor Sweden are 3G-enabled and both operators have more than half of their total customers migrated to 3G. This is significantly higher than the 3G share of total connections in Western Europe, which stands at 36%. Western Europe is also leading the way in HSPA, the faster version of WCDMA typically used for mobile broadband. The faster technology now represents 46% of the total WCDMA (Family) connections in the region, compared to 30% a year ago. Our study found that, on average in mature markets, the vast majority of 3G devices offered by mobile operators are HSPA-enabled, with only 5% of devices supporting only standard WCDMA. Meanwhile, in many emerging markets where fixed-broadband penetration is very low, HSPA networks typically provide the first means for consumers to access the Internet.

Despite the rise in 3G devices, most operators are still supporting widely-deployed GSM/EDGE (2G) networks via more affordable EDGE devices. According to the study, EDGE-enabled GSM devices account for 25% of operator handset portfolios in mature markets and 36% in emerging markets. In many cases, EDGE is still seen as a substitute for WCDMA networks as it benefits from better network coverage.

"In order to see 3G device portfolios grow to a level close to the most-advanced Swedish benchmark, network coverage will have to improve considerably in many markets," added Gillet. "Even though only one third of devices catalogued by operators are GSM, the 2G networks still account for around two thirds of connections in mature markets, and as much as 90% in many emerging markets."
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