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Wait is over for UMTS handsets according to report
January 29, 2003
The lack of UMTS handsets that has plagued the launch of third
generation WCDMA networks, is no longer an issue, according to In-Stat/MDR.
The high-tech market research firm reports that, as operators are
poised to launch new networks across Europe in coming months, several
manufacturers have deployed (or are about to) new devices, and supplies
should be ample, if not plentiful.
"The next hurdle to 3G deployment will be user acceptance," says
Neil Strother, a Senior Analyst with In-Stat/MDR. Other hurdles
include:
-- Handset testing that involves more than 1,000 different parameters
before commercial viability (compared with 300 for traditional phones)
-- Voice call handovers between older networks and UMTS systems
are still not smooth, and will require more fine-tuning to reduce
dropped calls
-- Handset software glitches (like the one that hit NTT DoCoMo's
FOMA T2101V handsets earlier this year where incoming calls were
missed when the phone was in energy-saving mode)
However, In-Stat/MDR predicts these problems will be overcome,
and handset supplies will begin to build to significant levels starting
this year. One of the key drivers will be the launch by Hutchison
Whampoa of its "3" networks across the European continent, first
in Italy and the United Kingdom, and later in other countries. In-Stat/MDR
expects about 2 million UMTS handsets to ship next year, based on
announced orders. That figure could climb somewhat, if Hutchison's
networks get a positive response and economic conditions improve.
But an increase is unlikely given high handset prices, and uncertain
market conditions. However, as the advanced phones gain favor among
mobile professionals and early-adopters, these devices will carve
out a solid niche in years to come.
The report, "Turbocharged Handsets: The Real Story on UMTS (WCDMA)
Phone Availability", outlines which manufacturers have deployed
(or are about to) the speedy new devices that meet the Universal
Mobile Telecommunication System (UMTS) standard for data services.
The report also addresses why supplies should be ample in 2003,
how many units will ship next year, what models to expect from various
vendors, what challenges vendors and carriers face and what the
long-range shipment forecast is.
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