Falling Smartphone Prices To Lead To More Mobile DataFalling Smartphone Prices To Lead To More Mobile Data

Adoption of data services over cellular phone systems is starting to grow rapidly as the price of data-ready smartphones decreases, according to a study released Tuesday by ABI Research.

The study noted that smartphone sales in the third quarter of 2005 increased 134 percent compared to the same quarter a year ago while prices decreased, on average, between 25 percent and 30 percent. As cellular operators continue to roll out 3G cellular data services, the increase in smartphone sales portends an increasing use of cellular networks for data.

"It's too early to gauge the success of the new data services, but if smartphone sales are any guide, the signs are good," Shailendra Pandey, an ABI Research analyst said in a statement.

The types of data services being offered by cellular operators vary widely, Pandey noted. Some operators are focusing more on enterprises while others are focusing more on consumers, Pandey noted. Enterprise applications include fleet management and workforce automation, two applications that Japan's NTT DoCoMo recently announced.