Word: 3g
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...first step to recovery is to admit you have a problem, maybe there's hope yet for Europe's telecom industry. Last week the Spanish phone company Telefónica and its Finnish counterpart Sonera suspended their Group 3G joint venture, each writing off more than €4 billion on their investment in new "third-generation" mobile networks for Germany and elsewhere. Like nearly all the big European operators, they paid a lot for 3G because they expected a lot: tapping into higher bandwidth, 3G mobiles were supposed to offer everything from high-speed Internet access to streaming video, allowing...
...does live up to these flashy promises, will it be enough to revive the wireless sector's business performance? On the hardware side, Nokia and Ericsson need GPRS applications like camera phones to catch on, or there may never be a demand for the even greater data capacity of 3G networks, for which they sell the infrastructure equipment. Both companies will probably do well selling camera phones. But they are also going to face a lot more competition in the handset market, predicts T-Mobile's Jones. We'll spare you the technical details, but the point about GPRS...
Waiting in the wings, though, are the big wireless-phone companies. The telcos have been pushing their own upcoming wireless-data services, generically known as 3G (third generation) and--perhaps more realistically in the near term--2.5G. Such services already are popular in Europe and Japan. The smart money has the national wireless infrastructure shaping up as a hybrid of Wi-Fi and 2.5G or 3G, with Wi-Fi offering high speeds at low or no cost over very small areas and the Gs covering wide areas at lower speeds and relatively high cost. Hardware is catching...
...students look at this new technology with such awe and admiration," says Lee Kook Heon, a Ph.D candidate and teacher at South Korea's Sahmyook University who uses Wi-Fi to retrieve visual aids from the Internet during classes. "It's easy to use. I would prefer it over [3G...
...make 3G obsolete. It's impractical to blanket a city with hot spots. In Asia, access is provided by a hodgepodge of private businesses and independent operators, some offering it for free, others charging small fees. Nevertheless, some think that mobile network operators would be foolish to ignore it. Carriers "can roll out [Wi-Fi] services much quicker than 3G," says Shamir Amanullah, program leader at marketing consultancy Frost & Sullivan in Kuala Lumpur. "3G networks cost up to $1 billion to set up and that won't give them lots of pricing flexibility...