U.K. operator Vodafone’s
vision of the New World, as posted on its Web site, is where people
will download movies and live newscasts using their mobile devices,
regardless of national and geographic boundaries. However, the road
leading from the Old World to the New World, not only for Vodafone
but also for all wireless operators, will not be without its detours
and potholes.
At present European network operators are hoping that GPRS with
its much faster mobile data speeds will get millions of users
on-board before they roll out the Holy Grail of third generation of
UMTS services. But when it comes to implementing GPRS, 'always-on,'
service, some operators are finding themselves redrafting their road
maps. The shortage of compatible handsets, data rates falling short
of the ideal of 150 kilobytes per second, and shifting to a new
billing model are just some of the roadblocks facing operators.
Following Vodafone’s recent
launch of its GPRS service, CEO Chris Gent cautioned that
the next wave of mobile services should not be hyped too much.
"GSM was flaky before it came good and GPRS will face the same
issues and so will 3G" he said. "There is a gestation
period with these things. The danger is over hype it all and end up
disappointing the consumer."
Gent’s words appear to have resonated with other operators as
well. Besides Vodafone, rival BT Cellnet, Spain's Telefonica Moviles,
and the Netherlands' KPN Mobile have only launched 2.5G services in
small doses -- only to business users and in selected urban areas.
The switching from a circuit-switched to a packet-based
infrastructure is only part of the equation. Wireless operators have
opted to limit their launch to major markets due to the shortage of
compatible devices. Many operators are blaming handset manufacturers
for failing to prepare their side of the GPRS equation fast enough.
," Telecom Italia’s chief executive Marco de Benedetti told
Totaltelecom, "The timing of (Telecom Italia's GPRS) launch
will be dictated by the availability of stable, reliable technology. Mobile phone makers have been slower than us in developing the
technology."
Billing for services poses another roadblock for wireless
operators. The current GSM time-based service is not appropriate for
the packet-based and ‘always on’ GRPS network. Thus billing by
the byte is the only practical solution. Operators worry that a
packet-fee pay structure may deter the less than tech savvy
customer. Some operators such as T- Mobil and Mannesman Mobilfunk
are offering tiered price structures to meet the needs of all
customers.
Customers may accept paying by the packet sooner than they will
see the advertised data speeds. Even though 2.5G services will
be faster than WAP’s 9.6 kilobytes per second, it is unlikely that
speeds will come close to the 150 kilobytes per second hyped by the
media.
Wireless operators can only hope their cautionary rhetoric will
still lure users onto the road leading from the Old World to the New
World.
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