This paper analyses the development of third-generation mobile services (3G) in OECD countries. A brief description of the definition of 3G and its migration path is followed by an analysis of the benefits and shortcomings of 3G services. The paper further examines regulatory issues raised by 3G development and recent market developments including pricing issues. Finally, the paper undertakes a comparative analysis of 3G with wireless LANs and other alternative wireless technologies.