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News
Issue #2002 - 06
(February 2002)
(Updated Feb.
13, 2002)
MARKET
OUTLOOK & TRENDS
Operators Urged to Focus on 3G
Content Not 3G Race, study says
On the road to 3G,
CDMA-based technology appears to have a slight lead over 2.5G GPRS,
according BWCS analysts. But the British consultancy/research firm
warns operators not to become embroiled in the 3G hype at the
expense of developing 3G content.
The Race to 3G
While most of the GSM networks across Europe and Asia say they
will opt for the natural W-CDMA path to 3G, instead of aligning with
cdma2000 1XRTT. South Korea’s SK Telecom, Japan’s KDDI and two
American operators Sprint PCS and Verizon are convinced that CDMA
will offer a faster, lower-cost, more spectrum-efficient route to
3G.
Some observers might dispute cdma2000 1XRTT’s official definition
as a ‘3G’ technology, with peak data rates of 144 kbps it has a
clear speed and capacity advantages over the 2.5G GPRS services now
deployed across Europe, BWCS says.
Focus on 3G Content Competition
In the race to 3G, BWCS warns wireless operators not to lost
sight of the most important factor in all this – the consumer.
Using the example of WAP, BWCS says, consumers are not interested in
the underlying technologies but simply want attractive useful
services at the right price. The U.K.-based firm strongly encourages
operators not to focus on 3G data speeds and technology at the
expense of the development of 3G content and applications, if they
want to make a profit.
In its report, ‘Savior of 3G —The Leading 120 Application and
Content Developers,’ BWSC, along with Mobile Metrix, explores the
role of application developers and content providers in the mobile
market and identifies what it takes to succeed in this highly
competitive market.
For more information: http://www.bwcs.com
Mobileinfo Comments & Advisory: BWSC
is only partially right in suggesting that it is the content and not the
hype of 3G, 2.5G or network technologies that is important. There is no
point in developing the content if the networks are not going to be
there to carry it. While MobileInfo sees strong signs of 2.5G and 3G
networks getting deployed soon, we are not sure that network operators
will come up with affordable pricing for many of the applications.
Therefore, we would caution content providers to think like misers (or
scrooge, shall we say?) and use the network very efficiently for every
transaction. It is in more frequent use of wireless data where the money
is and not in infrequent use of sending rich multi-media messages,
photographs and the like. Leading 120 content developers will
become saviors onlywhen they come up with value-providing content that
consumers will suck off the air with "wow".
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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