3GNewsroom.com Weekly Round Up and Comments
David Yuen - February 3, 2003
Our round up and comments of the past week's main stories from
our editor.
******** THIS WEEK ********
- Wi-Fi takes on 3G
- No more WCDMA handset shortage
- Hutchison sets another launch deadline
- More 3G licenses to be awarded in Hong Kong
****************************
>>> Wi-Fi takes on 3G
The debate over "3G vs Wi-Fi" reopened last week when
BT announced it has deals with the British Airport Authorities,
Welcome Break and Hilton to provide Wi-Fi hotspots in the UK. It
was not so much as the deal but rather the comments that was made
which sparked the debate.
BT Retail CEO Pierre Danon said, "Wi-Fi is going to develop
dramatically this year. It is half the price of 3G and three times
faster. It only costs 10p a minute for broadband access at a BT
Openzone, which is an impressive figure when you look at the fact
that 3G operators will be charging a lot more."
According to David Hughes, BT Director of mobility, Openzone hotspot
customers pay less than 5p to download 1MB of data compared with
50p for 3G users. In addition, the operation would take only 30
seconds for Wi-Fi and over 2 minutes for 3G.
Is 3G doomed? Wi-Fi is faster and cheaper but Hughes admitted that
the disadvantage with hotspots is that they offer limited coverage.
BT, which aims to have 40 sites by the summer, have deployed hotspots
in business oriented locations - airports, hotels and service stations
- illustrating that Wi-Fi hotspots is driven by road warrior stops.
3G is aimed at the mass market and has the advantage of its size
- it can easy be fitted into the jacket pocket. With Wi-Fi you need
to carry a laptop around.
Rather than talking both as competing technologies, each has it
own uses. Although 3G networks can handle data applications, it
is still driven by person to person communications while Wi-Fi is
probably better suited for web browsing and downloading files.
>>> No more WCDMA handset shortage
According to In-Stat/MDR, the lack of 3G WCDMA handsets is no longer
an issue. Handset manufacturers have deployed (or will do so soon)
new devices as mobile phone operators are closing in on their rollout
of WCDMA networks across Europe in the coming months. In-Stat/MDR
expects supplies should be adequate, if not plentiful.
Even so, 3G deployment could be hit by problems with call handovers
between 3G and 2G networks. Testing next generation handsets are
typically more complicated than traditional mobile phones and software
bugs in the handsets could put consumers off from buying handsets.
As in the case of NTT DoCoMo, it had to suspend sales and replaced
some of the T2101V handset as it had problems with the energy saving
mode. When the screen was in this mode, the phone had trouble receiving
incoming calls.
Despite the findings in the report, there is still a concern over
the shortage of handsets. Vodafone Northern European director, Peter
Bamford, last week warned a lack of 3G handsets would harm Vodafone's
3G rollout schedule.
Apart from a lack of handsets, operators should also worry about
the lack of handset models and the hefty price tag. Operators could
get away without these in the short term as the early adoptors of
3G would be mobile enthusiasts who are willing to pay more for the
chance of experiencing next generation services. But for the mass
uptake of 3G services, it is important for consumers to have a range
of handset choices at reasonable prices.
>>> Hutchison sets another launch deadline
Hutchison 3G UK has set itself the deadline of end-March for the
launch of its 3G mobile service. The operator showcased its 3G handsets
and services at its flagship store on London's Oxford Street.
The operator has three 3G handsets with the cheapest handset priced
at £399, but it will offer significant discount on handsets
to the first 20,000 subscribers.
Hutchison will offer cheaper tariffs in the future despite announcing
bundles of £59.99 and £99.99 per month previously. The
latter tariffs were aimed at the above average consumers while the
cheaper options are for the mass-market lower spending customers,
hoping to help Hutchison reach the 1million subscriber mark by the
end of the year.
Will Hutchison launch 3G services by the end of March in the UK?
It had failed to offer the service despite being very confident
of having paying customers by the end of last year. This time around
it looks like they will keep their promise. First of all, the head
of Hutchison Whampoa, Li Ka-Shing, visited the UK a few weeks ago
of what could be the operator's last major test. Second, it had
demonstrated handsets at its store in London and finally, ads have
appeared on television. Signs that the launch is near.
The Premiership football advert from Hutchison informs that subscribers
would be able to watch goals from the top-flight league on their
3G handsets. But the goal clips may not be transmitted to handsets
as instantly as some people think. The clips, provided by Sky, will
need to be edited by the BBC before it is broadcast to handsets,
which could take up to an hour.
>>> More 3G licenses to be awarded in Hong Kong
Hong Kong's telecommunications regulator said the consultation
process for the future of mobile phone licenses might be moved forward
to this year, which could see the granting of 3G mobile licenses
to the two operators that did not obtained the licenses.
Peoples and New World Mobility were left without 3G licenses in
the 2001 auction.
The granting of further licenses does not come as a surprise to
operators as bidders in the 2001 auction were told that the awarding
of more licenses could happen in the future said Au Man-ho, OFTA
deputy director general.
Director General of Telecommunications, Anthony Wong, expects Hong
Kong to start 3G services this year and the first handsets to be
available in the next two months.
****************************
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