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Sprint says US will over take 3G lead from Europe

date: June 11, 2001

Bill Esrey, chief executive of Sprint said US will shortly leapfrog the European in the 3G mobile market to become number two in the world and just behind the Japanese.

He said Sprint will be able to migrate to 3G at a much more quicker peace and at fraction of the cost than most European operators, however he added we are still a few years away from catching up the Japanese.

He blamed the problem lies with the huge amount spent on 3G licences in Europe especially Britain and Germany. The total cost of introducing 3G services in Europe will be between $250billion to $300billion and each operators spending $10billion on network alone.

Sprint, on the other hand will only $1.5 billion to upgrade its 2G nation-wide network and in some areas will be 3G compatible by the end of this year.

As a late entrant to the mobile business, it is in the fortunate position that its network is based on so-called CDMA technology - the basis for 3G services. In contrast European networks rely on GSM, an older network standard.

In moving to WCDMA, European operators will have to maintain their GSM network while upgrading to 3G networks. This will require two networks to co-exist together, which further adds to the operational cost.

Esrey said Sprint will have commercial 3G speed network by the end of the year.

 



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