In recent years, wireless technologies have become synonymous with cell phones—which for many people have become an indispensable part of daily life. Now, however, wireless operators are taking wireless communications far beyond voice, to include other formats for consumers that have the potential to turn the cell phone into a potent tool for marketing and commerce. "Operators are aiming for something more than being part of a passing trend," says Noah Elkin, senior analyst of eMarketer, which follows the global wireless marketplace. "Rather, they are building networks and developing applications that will make their services an inseparable part of life."

Fueling this is the near saturation levels of the wireless market. In North America, penetration is rapidly approaching 70 to 80% which—given the vast geography—is likely where it will level off. With wireless technology now ubiquitous, the stage is set forthe rapid implementation of innovative uses.

These include the development and implementation of next-generation networks, such as 3G. "Sprint inaugurated its 3G service in 34 markets in July 2005, eyeing expansion to 56 metro areas by early 2006," says Elkin. As the market matures, carriers will be more focused on the quality of the services they provide. Rather than focusing on simple voice communication, they will begin to focus more on multimedia content and data services. "The reality is that the multimedia adoption curve will be gradual, for the simple reason that old habits die hard and new ones are harder to pick up," says Elkin.