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Peoples has EDGE over 3G rivals

January 22, 2003

Peoples Telephone, one of the smaller Hong Kong operator, is to deploy EDGE networks that could deliver near-3G speeds. The operator plans to begin testing in the third quarter and expects the network to be ready by the end of the year.

Peoples did not obtain a 3G license back in 2001. Chief Executive Charles Henshaw said EDGE's bandwidth was crucial to its wireless data strategy for the next two to three years, before WCDMA became affordable to the consumer. EDGE has a theoretical maximum speed capable of 384 kbps.

"There is a lot of work needed to get 3G to work," said Henshaw. "You have to build a spanking new network and pay for the licenses. That's a lot of money."

He said 3G networks have roaming problems such as 2G-to3G roaming, but EDGE would have no problem with roaming because GSM was an established standard.

The company already has a GPRS network, which was supposed to deliver speeds of more than 100 kbps, but in reality is running at about 30 kpbs to 40 kbps. EDGE is relatively easy to upgrade by making small changes to existing network hardware and software.

Managing director Michael Leung Kai-hung has said the investment in EDGE would be only tens of millions of dollars.

Telecom analysts believe EDGE is a safer choice because it is not too risky as the investment is small compared with 3G. They expressed that consumers do not care much about the underlying network but rather the applications available.

 


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