But compatible handset supply remains a problem.
Analysts claimed today that video will not be the 'killer application' for 3G, as users demonstrate far greater interest in high-quality mapping and navigation services.
"Expanding the number of GPS or Assisted-GPS handsets from today's levels will be an important step for 3G carriers to provide the applications their customers really want," said In-Stat analyst David Chamberlain.
"Unfortunately technology choices left over from the 1990s make this difficult, but carriers and handset vendors are starting to provide an increasing flow of products that better meet 3G customer needs."
However, a newly published survey from In-Stat urges 3G carriers that want to capture the market for location-based services to try harder when it comes to expanding the availability of compatible handsets.
The survey, based on responses from over 1,000 mobile users, found that current 3G users are 'very enthusiastic' about location-based services, in marked contrast with other customers who have expressed dissatisfaction with premium applications.
In-Stat found that customer awareness of 3G is "not particularly strong", perhaps because half the respondents do not know whether their carrier offers 3G.
Nearly half of the respondents indicated that they would consider changing carriers in order to get 3G.