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Neil Montefiore, CEO of Singapore operator, M1, is confident that they will be able to meet IDA’s 2004 deadline. M1 will be conducting more widespread testing of 3G services between September and October this year, with customer tests expected to take place in early 2003. With regards a commercial launch of their services, Montefiore stated that “it is difficult to say when exactly this will happen, although it’s likely to be towards the end of next year”.
SingTel’s director of mobile network planning, Kang Aik Siang, is similarly confident of meeting IDA’s deadline. However, he added that SingTel’s 3G services will be offered on “a selective basis”. Said Kang, “We are adopting a cautious approach towards 3G. The technology is still new and very much evolving, while the mass rollout of 3G handsets remains uncertain.”
The dearth of handsets is echoed by Montefiore who added that the current lack of content that customers demand are just two of the factors that have contributed to a relatively delayed 3G offering outside of Japan and Korea.
Taking the mobile phone as an example, a quick look at some of the new models showcased at the recent CommunicAsia 2002 trade show proves that there are currently no 3G-ready devices to be had. “Cutting-edge” models such as Panasonic’s GD88 or Sony Ericsson’s P800 (both of which are expected to be available later this year) are only 2.5G.
From a practical standpoint, it makes little sense for operators to have 3G services at the ready when users will have no use for them without a 3G phone.
Interoperability issues
When CNet suggested to Montefiore that Japan and Korea were ahead in the 3G game leaving the rest of us languishing behind, he replied: “They aren’t necessarily ahead; they just haven’t had the same interoperability issues”.
Perhaps a new chipset will solve the problem. Qualcomm, for example, is developing multi-mode, multi-band chips that will provide global roaming and interoperability with non-CDMA networks. M1 and SingTel are skeptical. Kang pointed out that “the success of (such a chipset) would depend on various factors such as market demand, willingness of handset manufacturers to use and the incremental cost (involved)”. Further, Montefiore feels that what the industry really needs are handsets that work correctly and seamlessly over WCDMA and GSM. In fact, M1 will begin testing such handsets in September/October this year.
What network?
Given that the 3G progression for GSM networks can be costly and cumbersome, could the successful deployment of 3G services in Korea be due to the CDMA network that operators have in place? Perhaps. But if 3G services are to be available on a global scale, GSM or WCDMA, the 3G evolutionary upgrade to 2.5G GSM services, seems more likely to succeed.
In support of a CDMA-based network, Korean electronics giant, Samsung, believes that it is theoretically possible to overlay a GSM network with a CDMA architecture, thereby enabling a more cost-effective and smoother migration to 3G. However, Montefiore is not convinced for two primary reasons: (1) a CDMA2000-1x, that is 3G, network will not prove useful in a predominantly GSM country because national coverage may not be achieved; and (2) what the world needs is a global standard, and this is GSM.
According to the GSM Association statistics, GSM accounts for 71% of the world’s digital market and 68% of the world’s wireless market. Japan’s 3G platform, FOMA (Freedom of Multimedia Access), is itself WCDMA-based.
We want 3G! We want 3G!
In line with the type of handsets that are needed for a true 3G experience, the availability of content is another factor to be considered in our wait for the big G. What do users want? What will they pay for? These are just some of the questions that operators need answers to.
M1 has received some positive feedback from customers trialling their next-generation services and they have found that users “prefer to originate their own content”. For example, they want to be able to take their own pictures and send those along to friends with a message. Applications and content that are emotive and fun are immediately appealing. MMS (multimedia messaging), EMS (enhanced messaging service) and the like are steps in the right direction.
In terms of costs, Montefiore said that pricing has not been determined yet although it will be “straightforward and easily understood by customers”. He elaborated by saying that “there should be no subscription fees and would be similar to SMS prices; perhaps S$0.30 to S$1 for a basic MMS”.
As for what users can expect a few years from now, Montefiore quipped, “Hopefully by the next World Cup, we’ll be able to see replays of goals scored on our mobile phones”.
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Posted: 2002-07-30 18:36:00
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