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News
Issue #2002 - 29 (July 2002)
(Updated July 31, 2002)

MARKET OUTLOOK & TRENDS

Latest Changes in Previously Announced 3G Directions by Network Operators
(Source: BWCS - with minor editing by MobileInfo.Com)

Sonera, Telefonica to close German joint venture
Finish carrier Sonera and Spain's Telefonica said they plan to close their German joint venture, an MVNO called Group 3G/Quam, after only seven months in operation. The MVNO launched late last year and had attracted 200,000 subscribers as of the end of June. The companies said the MVNO's business plan was no longer feasible. Both Sonera and Telefonica have written off many of their 3G investments across Europe. Telefonica reported a 3G-related write-off of $4.87 billion.

In other Telefonica news, the company's share price surged yesterday when it announced it would abandon non-Spanish European 3G investments, such as its partnership with KPN. The move will cost the company more than $5 billion, but it feels in the long term the decision will pay off. Investment banks applauded the move. The company says it instead will focus its investment in South America, where it perceives there is "organic growth." 

Vodafone Brings MMS To Greece
(26/07/2002, BWCS Staff) Vodafone will launch the first multimedia messaging services in Greece at the end of this month. Greek mobile users will be able to trial the MMS services for three months free of charge. Vodafone hopes that this introductory offer will help to fuel demand for MMS. During the trial period the mobile operator plans to introduce additional content services such as sports and news services enriched by audio and video. 

In order to send and receive MMS messages Vodafone-Panafon subscribers will have to use an Ericsson T68i handset. Mobile users equipped with SMS only handsets will receive instructions as to how to access an MMS message sent to them via the internet. Vodafone’s Greek MMS platform was supplied by Ericsson. 

On 30 June 2002 Vodafone-Panafon’s subscriber base had reached 3.04 million, an increase of 21.3% on the June 2001 total. The vast majority (72%) of the network’s subscribers are prepaid users and of these Vodafone has reported that 27.5% have not used the service in the past three months. The company now controls 35.6% of the Greek mobile market, compared to Cosmote's 37.6%.

MobileInfo Advisory & Comments: Dynamics of 3G plans by network operators continue to change. This should be surprise to only to the public relations consultants and market forecasters. We expect the whole 3G scene to be fluid for at least three to five years. The only thing we can say with reasonable degree of assurance (better than 75% probability) that there will be sub-3G and full-3G networks in USA, Europe and Asia but there will be competing technologies (WiFi 802.11x and broadband wireless) to serve some of the enterprise needs. We also expect hybrid network technologies. Sooner the operators dive into these alternative technologies, better would it be for users and the operators. It does not serve anybody to get into a debate about the problems in various network technologies. 

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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