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3GNewsroom.com Weekly Round Up and Comments

David Yuen - January 13, 2003

Our round up and comments of the past week's main stories from our editor.

******** THIS WEEK ********

- Industry awaits 'Judgement Day' 03/03/03
- Foreign support for TD-SCDMA gets stronger
- 3G Patents starts patent evaluation service
- Vendors battle for Etisalat UMTS contract
- Donation: We need your help!

****************************

>>> Industry awaits 'Judgement Day' 03/03/03

Hutchison rejected claims that the launch of its 3G service in the UK would be delay until the second quarter. It looks very likely that March 3 2003 (03/03/03) would be the 'Judgement Day' for Hutchison 3G. Its success or failure will depend on the rollout of 3G services on the memorable day of 03/03/03. Any further delay would seriously damage its already dampened reputation.

Avenir Telecom, a distributor for Hutchison 3G UK, said they have no idea when the handsets would be available. However a salesperson at Huge Symons, another distributor for H3G UK, said we don't supply H3G handsets. This really put into prospective the logistics and internal affair inside H3G UK.

On the positive side, the launch in the UK could be getting closer. Hutchison executives were in West End London in the UK of what could be the last major trial tests in the London district.

"It is now our final stage of preparation, " said Hutchison Whampoa managing director Canning Fok.

H3G UK commercials were shown on UK television over the weekend. The service coverage may only be available in some major cities as the adverts bear the message "limitation apply" in very small font.

Hutchison 3G Italy said that at least 60,000 customers were waiting for delivery of their handsets while H3G UK already has more than 20,000 customers that registered their interests on the website.

Analysts believe delays in Hutchison's launches would not be severe provided that they are the first operator in the UK and Italy to offer commercial 3G services.


>>> Foreign support for TD-SCDMA gets stronger

The Chinese TD-SCDMA standard has gained a foreign backer in the form of Motorola who said they would invest heavily in developing the technology but will not be working with the Chinese government.

Motorola, who is losing out in Europe, did not get involved in the debate over the pros and cons of TD-SCDMA compared with other standards. The equipment vendor explained its decision to back TD-SCDMA was entirely based on the wishes of customers and the benefits it would bring them.

"What we're doing is making investments in the technologies that our customers tell us they need to be successful in the marketplace," said Eugene Delaney of Motorola.

The move by Motorola will help the company to gain a strong foothold and increase its presence in the Chinese market. The announcement has also given TD-SCDMA a boost, as the main backers of the technology are the Chinese themselves and Siemens. This could see other foreign companies becoming more involved in developing the technology. As China has the largest population and the telecom industry is set to improve in the near future, foreign firms may find that unless they jump on the bandwagon, they may miss out on the lucrative market if TD-SCDMA does take off.


>>> 3G Patents starts patent evaluation service

The 3G Patents has started the commercial 3G Patent Platform services responsible for evaluating, certifying, and licensing patents that are truly technologically essential for 3G mobile communication systems.

After the completion of the evaluation process, 3G Patents will award a Certificate of Essentiality if the patent is found to be technologically essential. The exact royalty terms for a particular radio technology will be set by respective licensors.

ITU Secretary-General Yoshio Utsumi described the service as "a positive step in making 3G standardised terminals and infrastructure equipment more affordable not only in the major developed countries and regions".

Separate managing bodies are responsible for each radio interface to ensure that "Platform arrangements do not limit competition among substitutable 3G technologies".

3G Patent Platform could limit the royalties that firms pay as well as improve the rollout time of 3G networks. Negotiating with individual licensors could delay network deployment as both parties may be involved in long talks that fail to agree a price. The 3G Patent Platform eliminates the problem by setting a reasonable price. It would benefit the industry as operators in Europe and the world struggle amid economic problems and weary telecom outlook.

- Commercial launch of the 3G Patent Platform services to limit maximum royalties for 3G systems
http://www.3gpatents.com/press/2003002.htm


>>> Vendors battle for Etisalat UMTS contract

Alcatel has signed a Memorandum of Understanding with United Arab Emirates mobile operator Etisalat to supply a UMTS trial network in Abu Dhabi. Alcatel will deliver and install its complete Evolium 3G End-to-End solution, developed between Alcatel and Fujitsu.

Marc Rouanne, President of Alcatel's Mobile Networks activities, said the trial systems can provide data rates of 384 kbps.

Apart from Alcatel, Sweden's Ericsson and China's Huawei are also trialling 3G systems with Etisalat. The trials will last for a month or two and Etisalat will announce a winner after the trials.

Alcatel is looking to bounce back after the firm's failed tender bid in South Korea's SK IMT. It already has some presence in the Middle East and will do everything it can to win the equipment contract.


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