European Operators Optimistic on 3G

date: 16th January 2001, source: allnetdevices.com

Wireless professionals in Europe are optimistic that third-generation (3G) wireless networks will be deployed in a timely manner, but fear acceptance will be hampered by a lack of compatible phones, according to a new survey by ARC Group.

Of 650 people termed "3G professionals" by the research firm, 64 percent said they expected pilot testing of 3G networks to begin in 2001. About 65 percent said they expected commercial launches in their country during 2002.

However, about 90 percent of said that a lack of 3G phones threatened acceptance of 3G services.

"The industry is clearly keen to get 3G networks up and running as soon as possible," ARC Group consultant Steven Hartley said. "However, experience of WAP and GPRS handset supply problems still worries the industry immensely and a repeat with 3G could have serious ramifications for attracting customers."

General Packet Radio Service (GPRS) had a marked edge over competing EDGE prior to full 3G implementation, the survey found. More than half of the respondents said they expected GPRS deployment by the majority of GSM operators in their country. Only about 25 percent expect to see EDGE deployment, according to the survey.

The survey found some disagreement about the impact on operators of 3G services. About 48 percent said they expected 3G will reduce churn, or customers switching operators. However, about 31 percent expected 3G to increase churn.

And while 3G is capable of 384Kbps and faster throughput, about 42 percent said that, at the time of its initial release, the data rate would only be about 90Kbps.

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