Optimism for 3G Implementation But Fears for Handset Supply

date: 22nd January 2001, source: telecomclick.com

A recently published survey by analysts ARC Group reveals that the industry is extremely optimistic regarding 3G Network deployments. Of the 560 leading 3G professionals surveyed for the 3G Industry Survey, 64% expected pilot testing of 3G networks to begin during 2001, with 65% of respondents predicting commercial consumer launches in their country during 2002.

However, the survey also brings to light marked concern over a lack of handsets. Almost 90% of respondents considered this to be a major barrier to the take-up of 3G services. Interestingly, Operators were most concerned about that this, with 87% rating lack of handsets as a major barrier, whereas Content & Application Developers were less concerned, 77% agreeing with Operators.

ARC Group consultant, Steven Hartley, says "The industry is clearly keen to get 3G networks up and running as soon as possible and for customers this means a whole new range of data services is fast approaching. 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."

Other key findings from the 3G Industry Survey include: -- More than half of all respondents expect GPRS to be deployed by the majority of GSM operators in their country, whereas less than a quarter believe the same of EDGE deployment -- An overwhelming majority of 82% of respondents feel that a lack of handsets will be a major barrier to the take up of 3G services -- While 48% of respondents think 3G services will reduce churn, 31% think they will result in an increase -- For 40% of respondents the auction process is anticipated to have little or no effect on the deployment of 3G networks -- A data rate of over 90kbps is expected at the time of full consumer UMTS launches by 42% of respondents

The 3G Industry Survey is invaluable for strategic planning and provides an unparalleled insight into the future of mobile communications. It contains 100 pages of primary data, cross-correlations, charts and quantitative analysis. Cross-correlation highlights differences of opinion between operators, equipment manufacturers and application developers on topics including:

-- Expected network coverage -- The impact of 3G on ARPU -- Costs of deploying 3G networks -- Capabilities of 3G handsets -- Predicted customer take up rates and the impact on churn -- Applications and services expected to stimulate uptake and generate most revenues. Note:

ARC Group publishes in-depth strategic reports, industry surveys and provides consultancy in the Mobile Internet, Wireless Enabling Technologies, Telematics and Home Networking and Local Loop industries. Other Surveys include Mobile Internet, WAP, GSM and Bluetooth. Strategic Reports include Wireless Internet: Applications, Technology & Market Strategies; Content and Applications for the Wireless Internet; Mobile Entertainment and Future Mobile Handsets.

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