HSDPA is just around the corner

October 23, 2005

High speed downlink packet access (HSDPA) will soon become a commercial reality, with many operators currently conducting trials. IDC expects many of the operators to launch in 2006, but a minority number are seeking to open their respective networks by the end of 2005.

IDC believes that by the end of 2009, there will be just under 40 million HSDPA subscribers in Western Europe.

"While there has been increasing talk of HSDPA for the last couple of years, IDC has to question why mobile operators are making their respective upgrades to HSDPA so soon after the launch of commercial 3G networks. Does it genuinely offer users a better user experience or is the argument more related to fending off competition from other technologies or other telecom players?" said Paolo Pescatore, EMEA research manager, European Consumer Wireless and Mobile Communications, IDC.

The operators will use HSDPA to provide users with a high-speed data connection, as well as delivering data at more cost-effective bit rates than W-CDMA. In addition, it is important for carriers to deploy faster data networks to reduce the competitive threat of any next-generation networks.

Some of the benefits operators will see from HSDPA include: -- Greater user capacity -- Efficient use of the existing network, allowing more users to benefit from faster data rates within the same cell -- Boosting throughput -- Lower operating costs -- A better user experience to end users.

Initial launches will be focused on corporate customers via PC cards, replicating the 3G launches of the mobile network operators. However, handsets will increasingly become available, with consumers being able to benefit from faster data speeds in order to download applications such as video and music at much faster rates than 3G will ever provide.

IDC's Insight The Need for HSDPA in Western Europe analyzes the role HSDPA will play in the European market. Many mobile operators have openly spoken quite favorably about HSDPA, which is quite a surprise, given the immense difficulty associated with the first launches of 3G.