|
Other 3G News
Qualcomm and Teleepoch
Enter Into a 3G CDMA Subscriber Unit License Agreement, October
6, 2007
MTN chooses Cambridge Broadband
Networks for multi-service wireless network in Rwanda, October 6,
2007
Brazilian government to
publish 3G bidding rules soon, October 6, 2007
KTF 3G service suffers
from technical problems, October 6, 2007
Argentina’s Personal
lunches 3G service in Rosario, October 6, 2007
Russia has it's first 3G
network, October 6, 2007
AT&T could drop Alcatel-Lucent
as 3G mobile network supplier, October 6, 2007
Enea Extends License Agreement
with ZTE for 3G Handsets, October 2, 2007
LG to unveil premium handsets
in Brazil, October 2, 2007
KTF 3G subscribers doubled
in less than 3 months, October 2, 2007
3G policy in India will
be non-uniform, October 2, 2007
- previous news
|
|
Ericsson, Nokia pin hopes on 3G phones for revival
date: April 22, 2001 - source by:
Business Report
As telecoms titans and arch-rivals Ericsson and Nokia revealed the extent
of the slowdown in handset sales growth, both were pinning their hopes
on the success of third-generation (3G) mobile telephony.
"There should be no doubt about the strong demand for 3G," said Ericsson
chief executive Kurt Hellstroem. "It is driven by the need for increased
voice and data capacity, along with the emergence of the mobile Internet."
But doubts remain over the future of the next generation cellular phone,
which operators hope will woo subscribers with high-speed video and Internet
services.
The launch of universal mobile telecommunications system services, also
known as 3G, has been plagued by delays and no one really knows how popular
they will be.
The success of wireless application protocol (WAP) services, offering
limited Internet access, has been far from overwhelming.
Analysts warned that even if 3G was a success, operators rather than handset
makers might reap the lion's share of the rewards, after a brief splurge
in infrastructure spending dried up.
"It isn't so much new people buying the phones that will continue to fuel
growth; it is increasing use of these phones," said WestLB Panmure analyst
John Tysoe.
As Nokia and Ericsson went head to head on first-quarter results, it appeared
at first sight that Nokia had emerged victorious. Certainly, its 10 percent
rise in pretax profits dwarfed a 90 percent plunge of its Swedish rival.
But even Nokia's results were nothing to ring home about, and it cut its
full-year sales forecast to 20 percent from a previous estimate of 20
percent to 25 percent because of "more difficult market conditions".
Part of the problem, according to analysts, was that telecoms equipment
makers relied heavily on business from telecoms operators, which are struggling
under a mountain of debt after paying dearly for a slice of the 3G pie.
"Their major customers in Europe have just spent an aggregate of E116
billion (about R840 billion) on licences - the net effect of that is that
they are, to varying degrees, in financial difficulties," said Tysoe.
SG Securities estimated that the valuations of incumbent operators, mobile
and fixed line, had tumbled by 63 percent on average over the past year.
"Despite over 60 percent of western European mobile subscribers being
controlled by just six players, we believe that consolidation has still
a long way to run," SG Securities predicted in a recent research note.
Operators and equipment makers hoped that 3G would provide the magic cure
for the sickly telecoms sector, but they faced a bumpy ride to next-generation
mobile telephony, analysts warned.
"The pain is not over," predicted SG Securities.
top
|