3GNewsroom.com Weekly Round Up and Comments
David Yuen - January 27, 2003
Our round up and comments of the past week's main stories from
our editor.
******** THIS WEEK ********
- T3G to speed up TD-SCDMA implementation
- Commission's decision leaves consumers worst off
- Dutch lobby for license relaxation
- 3G arrives in Mexico
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>>> T3G to speed up TD-SCDMA implementation
Datang, Royal Philips and Samsung have formed the joint venture
company named T3G which aims to significantly improve the rollout
of commercial TD-SCDMA handsets. The company will distribute reference
designs, hardware and software for developing mobile handsets and
end user equipment.
It is hoped that T3G would speed up and ease the migration of 2G
to 3G networks. Part of its aim is to develop cost effective dual
mode handsets by licensing core chipset and reference designs for
TD-SCDMA/GSM handsets.
"Through T3G's solution, Samsung plans to introduce commercial
handsets in 2004 that will help the TD-SCDMA reach its full potential,"
said Mr. Shin, Jong Kyun, vice president of mobile communication
division at Samsung.
Meanwhile, experts responsible for planning the rollout of China's
3G mobile services have recommended three options to the State Council
for consideration. The proposal states the regulator should award
a total of four 3G licenses to China Mobile, China Unicom, China
Telecom and China Netcom.
The first option allows operators to choose their preferred 3G
technology to deploy. In the second option, China Telecom and China
Netcom would have to deploy TD-SCDMA networks while China Mobile
would adopt WCDMA and China Unicom implement CDMA2000. The final
alternative would see China Telecom and China Netcom implement TD-SCDMA
technology plus other standards they wished provided TD-SCDMA is
deployed in certain districts as the main network system.
Certainly the first option seems to be redundant as it does not
guarantee that any operators will implement TD-SCDMA. The Chinese
has invested much in the technology and has strong backing from
the government. They don't want to see the investment go down the
drain and so the two other options are more likely to be picked.
>>> Commission's decision leaves consumers worst off
The decision by the Competition Commission to lower termination
charges could jeopardise the rollout of 3G service in the UK. At
least one firm had said it would delay it the launch of its 3G service.
MmO2 announced that its launch would be pushed back to the second
half of 2004 and also raise prices of its 2G handsets plus call
costs.
Mobile operators in the UK consider the market to be competitive
and that the commission's plans would leave consumers bearing the
consequences of price rises.
Vodafone and Orange said they would seek a judicial review, while
T-Mobile is to consider increasing its handset prices and outgoing
call charges.
An Orange spokesperson fear that the cut in termination charges,
cost for calls from fixed line to mobile, may not be passed on to
fixed line consumers.
Despite the ruling, Vodafone does not intend to delay its rollout
plans. "We are not in the frame of mind to delay 3G rollout
as a consequence of this," said the company's Northern European
director, Peter Bamford. He said Vodafone aims to launch 3G in the
later part of the year but warned a lack of 3G handsets would hamper
the rollout schedule.
Whatever actions operators take, mobile phone customers would face
the consequence of the commission's decision. Rises in handset prices
and call charges are expected in the future and delays in rollout
of 3G networks would deprive consumers of high-speed data services
such as videoconferencing. The commission's decision could dim of
what could have been a very promising year for 3G rollout in the
UK.
>>> Dutch lobby for license relaxation
It has been reported that Dutch operators KPN and Dutchtone, part
of the Orange group, are lobbying the government to have the duration
of their 3G licenses extended from 15 to 20 years. Furthermore,
the operators want the privilege to sell part or all of their 3G
radio spectrum.
Both operators argue the longer license period would give operators
time to recover the huge costs in 3G licenses and infrastructure.
They said that 20 years for licenses has become the norm in Europe
and urge the authorities that the license duration should begin
from the moment they start 3G services.
The authorities are reported to be considering allowing operators
to sell their 3G licenses but would not amend the license period.
Vodafone Libertel is reported to be against any license amendments.
KPN is also considering whether to go to court with both the German
and Dutch government to win back VAT it paid for UMTS licenses.
The Spanish mobile group Telefonica Movilesm, part owner of Quam,
has also requested a return in VAT from the German government. The
German finance ministry said it saw no reasons for paying out tax
rebates on license fees and the Dutch government claims no VAT was
charged on the license as it was acting as a public body.
>>> 3G arrives in Mexico
Finally, Grupo Iusacell, S.A. de C.V. announced the launch of its
commercial CDMA2000 1X service in Mexico, the first in the country.
"We are extremely pleased to be able to provide our customers
with the first major high-speed wireless data service in Mexico,"
said Carlos Espinal, CEO of Iusacell.
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