Wednesday, January 05, 2005
3G
3rd Generation networks are springing up all over Europe (well they've had licenses for a while but are actually launching).
In the UK "3" was the first to launch, they had a roaming agreement with O2, and for most of the country customers would pretty much use they O2 network. 3 launched a consumer service based on cheap price plans and giving away video content and video calls. They needed to do this as they were a new entrant and needed to get a customer base. They still haven't launched any data services (no Internet access through your 3 phone).
Meanwhile the GSM networks sat around and bid their time, building out networks and working out their best course of action.
3G licenses were NOT cheap (in the UK they paid about £5 billion EACH for the right to role out a network) and for that they have to meet certain license conditions like reach 60% of the population by 2010 (I think). The GSM networks have a slight advantage in that they have existings masts around the UK, but the technology is completely new and it's a completely new build of infrastructure.
3 of course being the newbie didn't have that luxury they had to start from scratch, so when 186K went under (a UK telecomms provider with some national network), they bought it allegedly for £1, but took on all their debt (which was a lot).
Vodafone and Orange launched their 3G services in the 2nd half of 2004, but only data services. Why, well a lack of decent handsets and businesses use data for connecting mobile staff, remote working etc and businesses will PAY for it.
Vodafone and Orange have since launched consumer services, but though available they're not vastly pushing it yet. Vodafone have already got an active base on Vodafone!Live and the 3G experience will just enhance this.
O2 are biding their time, they've just announced their going to use imode in the UK, 3G will be a good system to launch this on, hopefully they also ensure that they encourage content providers by having sensible revenue shares like NTT Docomo do in Japan (not like WAP on GPRS/GSM in the UK). Who knows what T-Mobile are up to.
When all the existing GSM network do launch 3G, the I'd guess the GSM networks are going to be used for cheap and cheerful consumer services (until the frequencies get re-allocated to 3G, which wont happen at least until 2010), and when this happens anyone basing a 3G network on cheap price plans is going to lose customers fast as consumers just want cheap calls and a no frills service. Unfortunately they don't have any network loyalty and with number portability they can even move their number with them.
I'll make a bet that one of the networks gives back it's license rather than pay the penalties for not meeting the conditions, and having shareholders revolt.
In the UK "3" was the first to launch, they had a roaming agreement with O2, and for most of the country customers would pretty much use they O2 network. 3 launched a consumer service based on cheap price plans and giving away video content and video calls. They needed to do this as they were a new entrant and needed to get a customer base. They still haven't launched any data services (no Internet access through your 3 phone).
Meanwhile the GSM networks sat around and bid their time, building out networks and working out their best course of action.
3G licenses were NOT cheap (in the UK they paid about £5 billion EACH for the right to role out a network) and for that they have to meet certain license conditions like reach 60% of the population by 2010 (I think). The GSM networks have a slight advantage in that they have existings masts around the UK, but the technology is completely new and it's a completely new build of infrastructure.
3 of course being the newbie didn't have that luxury they had to start from scratch, so when 186K went under (a UK telecomms provider with some national network), they bought it allegedly for £1, but took on all their debt (which was a lot).
Vodafone and Orange launched their 3G services in the 2nd half of 2004, but only data services. Why, well a lack of decent handsets and businesses use data for connecting mobile staff, remote working etc and businesses will PAY for it.
Vodafone and Orange have since launched consumer services, but though available they're not vastly pushing it yet. Vodafone have already got an active base on Vodafone!Live and the 3G experience will just enhance this.
O2 are biding their time, they've just announced their going to use imode in the UK, 3G will be a good system to launch this on, hopefully they also ensure that they encourage content providers by having sensible revenue shares like NTT Docomo do in Japan (not like WAP on GPRS/GSM in the UK). Who knows what T-Mobile are up to.
When all the existing GSM network do launch 3G, the I'd guess the GSM networks are going to be used for cheap and cheerful consumer services (until the frequencies get re-allocated to 3G, which wont happen at least until 2010), and when this happens anyone basing a 3G network on cheap price plans is going to lose customers fast as consumers just want cheap calls and a no frills service. Unfortunately they don't have any network loyalty and with number portability they can even move their number with them.
I'll make a bet that one of the networks gives back it's license rather than pay the penalties for not meeting the conditions, and having shareholders revolt.
