History

• Verizon Wireless was the first major U.S. wireless carrier to utilize this network in 2003 (it was first introduced in Japan in 2001). Cingular Wireless, now known as AT&T Wireless, introduced a slower and more limited network in the United States in 2003 called EDGE (or 2.75G). AT&T has since switched to 3G for many of its handset tie-ins.
  
  

Implementation

• 3G is now widely used in Japan and the United States, but countries such as Indonesia still await 3G services because of the cost of implementation. Licensing fees and equipment costs have slowed the introduction of these services in some European countries as well.
  
  

Supply Barriers

• Telecommunications companies that have incurred a great deal of debt may have difficulty paying licensing fees. According to 3G Licensing Ltd., royalties for licensed products can run as high as $3 per unit sold.
  
  

Demand Barriers

• To the consumer, the high cost of 3G devices and Internet plans have been a turn-off. According to AT&T Wireless pricing plans, the difference in service costs between the original iPhone and iPhone 3G will be $160 over the life of a 1-year service contract.
  
  

The Next Generation

• A fourth generation of mobile technology, 4G, was recently developed in Japan. When fully realized, this service will provide voice, data and multimedia with faster Internet upload and download speeds.