3G is really just for cost reduction?

at least according to Cambridge Consultants:

“The theoretical cost per minute is eight times lower on UMTS, so what 3G is all about is increasing capacity at low cost,” CCL’s Jim Schoenenberger, “It’s not about multimedia services, it’s about reducing cost.”

“Voice is still the killer application,” explained Schoenenberger, “and the operators’ problem is that they’ve seen a 20% decline in ARPU in the last two years. MMS will not increase ARPU in my view, and GPRS will be sufficient for 90% of new MMS services, while demand for video is very uncertain.” [3G Newsroom,]

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