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Most of Cisco Systems 3G cellular phone and data services business is done outside of the U.S., even though earlier projections for 3G implementation have had to be revised outward. In some areas, such as parts of Europe and Asia, mobile phone users might be able gain access to the Internet at speeds that compete with home and in-office broadband technologies, but only recently has 3G infrastructure begun emerging in the U.S. Verizon Wireless provides 3G service in over 30 cities and serves almost 75 million people. Sprint provides 3G service in more than 39 metropolitan areas to a population of about 129 million, and plans 3G implementation by early 2006. Sales potential is excellent for equipment makers, because upgrades will be needed, including handsets that gain access to streamed music and video content. Carriers are not purchasing 2G and 2.5G equipment, but carriers in the U.S. are purchasing more 3G hardware. Sales of media players, new phones, and digital cameras are likely to grow considerably from the availability of 3G. For instance, Samsung's SMARTPHONE-V7800, with its many advanced digital camera features and 16 shooting modes, is more like a camera with built in 3G abilities than a 3G camera phone. WiMax, which could create a blizzard of seamless wireless coverage in metropolitan areas, has resulted in another revenue stream for device makers--the availability of dual-mode phones that permit users to roam between cellular and wireless services.
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