At first sight mobile communication of the third generation may seem very attractive and advantageous for everybody:
1. on the one hand users will get high quality services such as excellent
2. new revolutionary services like video calls or VoIP calls over the internet
3. sound quality
4. fast mobile internet connection
5. thus can count on getting super-profits within a short period of time
6. on the other hand the mobile operators will get access to the newest market of such services with a high level of demand
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Before introducing a new third generation cellular network for its users the company must take into account numerous factors that directly influence the user's demand for such type of service, as well as calculate all possible and potential revenues and losses in order to be able to predict what income it can receive and when it will be possible.
Recent studies conducted in several countries have shown that there are a number of factors that determine operators' decisions to start introducing 3G technologies for their clients.
One of such factors is the level of awareness in the society about the advantages such type of technologies can bring. Surveys have shown that low level of understanding the major principles and services of the third generation networks leads to low demand as people simply need nothing more than the ability to call their families, friends and colleagues, and the existing second generation networks fully meet this kind of demand.
Demographic situation may also play a considerable role in the level of demand, as new progressive technologies of fast data transfer may not interest people of older ages, so if the country or the territory the operator is going to cover with 3G has a high percent of aged people this should also be taken into account.
High prices for the new 3G services introduced right after the introduction of such networks in some countries added to the unwillingness of the subscribers to buy such services.
Another factor is the whole process of getting licenses for use of wideband frequencies. The process of spectrum allocation is still going on in many countries in which operators face the necessity to pay excessively high prices. Such price can make up to 35 percent of the whole amount spent on the introduction of the new network.
High cost of the base stations supporting the third generation technologies is also one of the crucial aspects that determine the operator's choice to create a new network. Today, when the effectiveness and high demand have already been proven in some countries, investments into 3G technologies in countries that are just beginning to create their own 3G coverage are increasing considerably. That's why investors expect to receive huge profits.
Political, social and economic conditions of a country where a 3G network is going to deployed should also be taken into consideration by both the carriers and the investors. For example the situation in a developing country will be completely different from the situation in a developed one. That's why companies should develop their billing policies accordingly.
To sum up the aforementioned, the experience of the companies that have already introduced 3G networks in developed countries, together with the demand analysis show that the investments into the industry can bring high profits only provided adequate researches are carried out by the companies intending to develop new 3G networks.