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U.S. Push-To-Talk Service Markets
Frost & Sullivan, Dec 2004
Push-to-Talk Services Flood the Market
Push-to-talk (PTT) services are emerging as a strong way to drive average revenue per user (ARPU) for mobile carriers. Carriers and vendors are eager to get a piece of the action and are rushing to position themselves early in this rapidly evolving market. While consumer adoption levels of PTT are still not very high - despite growing business interest and numerous service launches and announcements - they are likely to eventually improve as carriers leverage the opportunity to attract loyal, high ARPU customers in the business segment.
Frost & Sullivan presents a market insight into the landscape of push-to-talk services in the United States. The study provides an overview of competing carriers and their PTT services, as well as exhaustive comparisons of these services. It also provides a forecast of market growth and a breakdown of the segments that are expected to play a significant role in the future growth of PTT services.
Effective Market Impact Likely to Take Time Despite Launches
Market launches of PPT services abound with different carriers eager to establish themselves as technology leaders. For instance, CDMA carriers have launched their own VoIP PTT services in an attempt to gain a first-mover advantage in some segments. Since industry standards are still being determined by the Open Mobile Alliance (OMA), these carriers have been able to offer an initial service by opting for proprietary solutions and partnering with handset vendors. Handset and network vendors on the GSM front - such as Nokia - have also started launching their products, anxious not to be left behind in the race.
While it is quite clear that PTT services are likely to eventually emerge as a must-have product for carriers, it is uncertain when they will be able to offer such services at a mass scale with high performance levels. Frost & Sullivan believes that competitive services will continue to see the light in 2005, says the analyst of this research service. However, it will not be until 2006, when interoperability and new handsets are in place, that significant growth rates start driving the market.
Growth Expected to Quickly Expand Beyond the Traditional Niche Markets
Currently, Nextel Communications dominates the market as the primary provider of PTT services and has a strong hold over the traditional verticals. However, ongoing technology developments are enabling other mobile carriers to offer competitive services. These carriers are likely to be able to expand the market among business users if they leverage their existing corporate accounts. The significance of the consumer segment is also expected to increase in some key niches, although corporate small and medium enterprises (SME) are likely to continue to account for the bulk of the PTT market.
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