3GSM at a glance guide to the main points
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Nokia reveals fundamental new 3G strategy, promises revenue By Simon Marshall, Total Telecom, in Cannes
21 February 2001
Nokia revealed an important wide-ranging bonanza of new 3G network equipment and measures Wednesday, designed to finally begin delivering the much talked about next generation of mobile services.
"Everyone's been singing the same song about these services for long enough, now it's time to end the talking and get down to the doing," trumpeted Nokia's vice president of mobile Internet applications Niklas Savander from the 3GSM Congress in Cannes.
News of a new platform for operators to launch lucrative multimedia messaging (MMS) applications, a new m-commerce payment solution, a world-first positioning system, imminent all-IP core products and a Web site with MMS development resources may finally provide a path to return on 3G license investment.
“MMS is going to be a massive killer application,” said Anssi Vanjoki, its executive vice presdient of mobile phones. “And operators will love picture messaging, because they can charge for two messages, not just one.”
Nokia's new Mobile Internet Technical Architecture (MITA) framework encompasses:
What Nokia claims is the first MMS platform on the market, the Artuse MMS Center, a new solution for the delivey and development of rich content messaging such as photographs, audio, video clips and images under the 3GPP standard. It will ship from April. An extension of an ongoing partnership with AT&T to test MMS services based on 3GPP Release 2000 standards.
A new m-commerce Payment Solution, available during Q3 2001, enabling mediation between merchants, financial institutions and consumers. It will be fulfilled using the Wireless Public Key Infrastructure, part of the specification for WAP 1.2-based phones, and run over Nokia's Signet server. What Nokia claims is the world's first 3GPP-compliant E-OTD positioning system, for delivery of location-based services. A new area on its Forum Nokia Web site ( www.forum.nokia.com) for application developers to develop 3G services for MITA called Developer NetPoint. New partnerships with games developers Rage and Eidos to deliver mobile entertainment to WAP handsets from April. It also plans to launch a hosted games service to operators which can then brand the games their own. Nokia announced today it joined the SIP (Session Initiation Protocol) Forum in order to promote the standard which will prove key to setting up different types of MMS sessions. Collaboration with Intertrust to develop products to help manage digital rights. The launch of a prototype of a Common Radio Resource Management system, which aims to increase radio network capacity by up to 60%. A pledge to launch all-IP core products by the end of next year.
The sheer weight of Nokia's announcement may well leave operators used to living in the rareified atmosphere of 'all talk, no products' reeling, but Savander promised it would add up to income.
“If you can't bill it, kill it, that's what we say – so we've created a business model for success rather than generating lots of customers and then figuring-out how [operators could] make money from them later,” he said.
How much revenue all of this adds up to is still anyone's guess, however.
“MMS will have to be an affordable service [for end-users],” said Vanjoki, “but we expect it will prompt a huge amount of voice calls and a stimulate a lot of other [additional] traffic.”
“We also expect operators to begin equipping their networks for MMS over the course of this summer,” he added.
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3GSM at a glance guide to the main points
AFX Europe, Feb 23, 2001
At A Glance Guide to the Main Points of the 3GSM conference here:
Companies were reluctant to discuss UMTS and third-generation issues in depth, but pushed back forecasts for handset and service launches and consumer take-up, analysts said.
Equipment makers said they will wait on operators to start deploying networks before launching handsets; operators said launch dates are unclear due to doubts over sufficient volume production of compatible handsets.
Operators and equipment makers chose instead to focus on the imminent launch of GPRS services, hoping the 2.5G technology will prove a success with consumers after the disappointment over WAP last year.
The expected higher cost of GPRS handsets compared to GSM terminals means talks continue between heavily-indebted operators and equipment makers over possible subsidies.
2.5G - GPRS:
- Handset makers, operators launch this yr, see market take-off in 2002.
- Nokia Corp to start shipping GPRS handsets from Q4.
- Alcatel displays 1st GPRS handset; sees operators charging based on data volume.
- Motorola Inc sees all its GSM handsets GPRS-enabled by early 2002.
- Royal Philips Electronics NV GPRS handsets available from end-Q3.
- LM Ericsson Telefon AB, FarEasTone, sign 325 mln usd GSM/GPRS network agreement in Taiwan.
- Psion PLC to launch GPRS-compatible device in H2; sees stand-alone GPRS device in H1 2002; sees "at least" 50 pct of revenue from telecoms operators by Q4 2001.
- Bouygues Telecom sees GPRS launch in early 2002.
- Telia AB launches GPRS services; says to charge based on data volume.
- Orange to target business GPRS users H2 2001, consumer GPRS market in 2002.
3G - UMTS:
- Equipment makers see European operator delays, deployment forecast for 2004-5.
- Alcatel says some operators delaying UMTS, EDGE equipment orders by 6-12 mths; sees 3G deployment delayed to 2004-5 from 2002-3; sees major 3G consumer market in 2007; to supply Evolium 3G mobile switching system to Vivendi's Cegetel.
- Orange unable to confirm UMTS launch date due to handset shortage, maintains UMTS target launch for H2 2002; sees 50 pct French population coverage in 2003; considering seeking reciprocal virtual network operator (VNO) agreement in Spain; to replace French Itineris, other brands with Orange brand this yr.
- Orange's Hans Snook sees UMTS license costs to 'ultimately be seen as conservative'.
- NEC Corp, British Telecommunications PLC, Siemens AG to conduct Europe's 1st 3G live test in spring on Isle of Man, offshore UK.
- Motorola sees its 1st 3G handset ready by yr-end in Japan; to wait on European operators network deployment before delivering handsets.
- Nokia wins UMTS core network supplier contract with Vivendi's Cegetel.
- Nortel to supply UMTS equipment for Cegetel's Paris region network.
- Qualcomm Inc unveils new chips for 2G, 3G network roaming, to start shipping in Q1 2002; sees 3G commercially viable from 2004-5.
- Sonera Corp to adopt Intel 3G architecture.
Mobile services:
- GPRS to offer 'unified' messaging of faxes, emails, voice mail, SMS; multimedia messaging seen 'killer app' for 3G.
- Global SMS messages reach 15 bln in Dec, to top 200 bln this yr; - GSM Association.
- Location-based mobile services revenues to disappoint - study.
- Nortel Networks Corp, Motorola to jointly develop mobile internet interface for linking handsets, networks.
- CMG in talks for SMS revenue-sharing with operators in return for infrastructure investments.
- Logica exhibits 1st 3G multimedia messaging centre, to launch this yr in Japan; in talks with 20 GSM operators for 3G messaging trials; to supply AT&T with GPRS SMS services.
- Sema wins Vodafone UK order for 2 SMS centers.
- Unisys to invest 200 mln usd over next 5 yrs in multimedia messaging; targets 20 pct market share.
- NTT DoCoMo awards Baltimore Technologies order for secure mobile internet.
- Intel, Sonera to coordinate investments in mobile application start-ups.
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