As 3G telephony becomes more commonplace in the cellular market, more and more vendors will have to pull out all the stops to vie for customers. According to an ABI Research study, competitors will have to show off their bells and whistles to attract attention as opposed to simply relying on their core technology.

After many stops and starts, 3G mobile telephony is coming on with a vengeance. In 2004, ABI Research counted 17.3 million 3G subscribers worldwide, but by the end of 2005 subscribers grew 142 percent to 42 million. And by the end of 2010, 3G will comprise fully 30 percent of the mobile marketplace, equating to about 1 billion subscribers.

For 3G chipset vendors this might come as good news, but also accompanied by pressures of what could seemingly become a crowded marketplace. Currently, robust competitors such as Agere, Broadcom, Ericsson Mobile, Freescale, Icera, Philips Semiconductors, Qualcomm and Texas Instruments are all dabbling in the 3G market. Some of these companies have even been offering 3G solutions since 2004.

What will separate the competition will be multimedia applications the 3G phone performs such as advanced mobile video, stereophonic music, 3D gaming and television, the firm said.

"In cellular’s early years, the primary focus was the cellular modem, and on improving its design,” said Allan Varghese, principal analyst of wireless research at ABI Research, in a statement. “In later years, as cellular networks switched on high-speed data, the design focus veered away from the modem and towards applications such as digital imaging, music and video.

"Thus it is no longer an either/or game; the chipset design focus has to be on both the modem and the applications in order to enable robust wireless connections, low power consumption and enjoyable user-experiences. 3G chipset architects find they have a full plate on their hands. The good news is that the 3G and HSDPA cellular tide is rising; the bad news is that this rising tide may not lift all chipset vendors' boats," concluded Varghese.