Mobile Business VoIP and Consumer Video Services are Potentially the Most Attractive Next Generation Wireless Services

Users see value in premium mobile broadband services enabled by advanced

high-speed network technologies such as CDMA2000 1xEV-DO Revision A and


Nov 01, 2006, 00:00 ET from Lucent Technologies

    MURRAY HILL, N.J., Nov. 1 /PRNewswire-FirstCall/ -- According to
 primary market research by Lucent Technologies, businesses and consumers
 are willing to pay a premium for next-generation mobile high speed data
 services such as voice over IP (VoIP), interactive video and video sharing.
     Lucent surveyed U. S. consumer mobile phone users and enterprise
 communications technology decision makers to determine which applications
 and services would be of most interest on emerging advanced mobile
 high-speed broadband networks such as those based on third-generation (3G)
 technologies such as CDMA2000 1xEV-DO Revision A and HSPA (high-speed
 packet access).
     The research, part of Lucent's ongoing primary market research program,
 will help service providers identify new opportunities to grow revenue and
 reduce subscriber churn.
     "Our mobile high speed data research identified consumer and enterprise
 services and applications that will enable service providers to 'monetize'
 -- or obtain a return on -- their investment in advanced mobile broadband
 infrastructure," said John Marinho, Lucent Technologies corporate strategic
 marketing vice president. "This research is an example of marketing tools
 that Lucent makes available to its customers through the Market Advantage
     "Clearly identifying the most attractive next generation voice and data
 services is critical for service providers as their traditional businesses
 saturate and become increasingly competitive," said Phil Marshall, vice
 president of Enabling Technologies at Yankee Group. "High performance
 network technologies like UMTS/HSPA and CDMA2000 are critical for the
 reliable delivery of these services."
     As part of the enterprise research, Lucent gauged interest in five
 applications -- VoIP, video conferencing, communicate and collaborate,
 multicasting and business continuity. VoIP, consisting of basic VoIP and IP
 PBX features, generated the greatest willingness to buy amongst enterprise
 communications technology decision makers and was the top driver for
 switching carriers. Lucent research also found that enterprises would be
 willing to pay a monthly premium for "a new cellular broadband service that
 offers higher speed, simultaneous voice and data along with reduced latency
 performance." The willingness to pay the premium is much higher for
 companies that use an existing mobile high-speed data service such as EV-DO
 Revision 0 (Rev. 0) or HSPA as compared to enterprises that don't. The
 research indicated that:
      -- 76 percent of companies currently using EV-DO Rev. 0 are willing to
         pay a premium over current spending for premium mobile broadband.
      -- 34 percent of the companies that are not currently using EV-DO Rev. 0
         are willing to pay $60 or more per user per month for premium mobile
     Among the topics covered with consumers, Lucent evaluated interest in
 video calling, video sharing, multimedia ring-back, content sharing, and
 "share and discuss." Video calling and video sharing were the two most
 popular applications.
     The research also indicated that nearly half of all consumer survey
 respondents are willing to pay extra for "a cellular broadband service with
 DSL-like speed and simultaneous voice and data." As with businesses, the
 willingness to pay for premium mobile broadband data service is much
 greater for those who already spend money on services beyond basic voice
 (SMS text messaging, video/TV, ringtones, games, Internet access, etc).
      -- More than 60 percent of respondents who currently spend money for such
         services are willing to pay extra for premium mobile broadband.
      -- 40 percent of respondents who currently do not spend any money on such
         services are willing to pay extra.
     The comprehensive consumer and enterprise research represented a cross-
 section of U.S. cellular subscribers and business technology decision
     Lucent is sharing the detailed results of the research, which
 identified many significant market findings, with its service provider
 customers to help them tailor their service introductions for specific
     The survey results are in no way a predictor of the Lucent's future
 performance, and are meant only to identify potential market opportunities
 and estimates for the communications industry at large.
     About Lucent Technologies
     Lucent Technologies designs and delivers the systems, services and
 software that drive next-generation communications networks. Backed by Bell
 Labs research and development, Lucent uses its strengths in mobility,
 optical, software, data and voice networking technologies, as well as
 services, to create new revenue-generating opportunities for its customers,
 while enabling them to quickly deploy and better manage their networks.
 Lucent's customer base includes communications service providers,
 governments and enterprises worldwide. For more information on Lucent
 Technologies, which has headquarters in Murray Hill, N.J., USA, visit
     This news release contains forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995. These
 statements involve estimates, assumptions, known and unknown risks and
 uncertainties that may cause actual outcomes and results to be materially
 different from those anticipated and discussed herein. Important factors
 that might cause such differences include improper or inadequate research
 methodology or sampling, changing personal behaviors and preferences,
 technological difficulties and the risk factors detailed in Lucent
 Technologies' most recent annual report on Form 10-K and other reports
 subsequently filed with the Securities and Exchange Commission.

SOURCE Lucent Technologies