With 3G networks scheduled to launch across Europe and some mature markets in Asia - including Hong Kong, Singapore and Australia - in the fourth quarter, many are holding their breath for the promise of broadband Internet, anywhere and wirelessly.
Thousands of devices will be launched this year, integrated with fancy new technologies and multiple functions to enable the wireless Internet experience.
I was surprised to find many of the operators here playing down GPRS - a technology they were raving about early last year. Since the operators unwrapped their GPRS networks in late 2000, many have become somewhat less captivated by the so-called 2.5G technology, which runs at speeds of 40 to 50Kbps but is still not fast enough for most. There are still issues with reliability and the very few people I know who subscribe to GPRS services complain that connectivity is not stable and there are 'black spots' where the connection drops off suddenly. I'm not surprised, it still happens with voice.
The operators are afraid disappointment in GPRS will affect the acceptance of 3G - for which many have paid a lot of money. But the problems aren't solely with the instability of the networks: compelling GPRS services are lacking. Ring tones and wallpaper downloads are cute but limited in their appeal.
GPRS is an in-between technology to whet the appetite for high-speed wireless Internet, but the operators here have been so careful to not overhype the technology (a lesson learnt from overhyping WAP in 2000) that there is no buzz, no excitement at all about GPRS. According to one Hutchison official, inter-operator SMS, enabled only in mid-November, has had more success than GPRS because its function is obvious, whereas consumers are still confused about what GPRS can do for them.
How people use their phones will guide designs of cellphones.
The Nokia 5510, for example, was designed for SMSphiles with its centred display and keypads on both sides. The Sony Ericsson T68 with colour display and a joystick for navigation is a sign of things to come this year. Many of the higher-end new mobile phones will have colour displays and smart functions such as basic personal information management (PIM), Web browser, instant messaging and e-mail.