IDC says 3G mobile networks in Europe is going, going, gone!
library.northernlight.com
AMSTERDAM, Apr 03, 2001 (M2 PRESSWIRE via COMTEX) -- According to IDC, the spending on mobile network infrastructure in Western Europe
will exceed $78 billion between 2000 and 2004.
Growth will come from both upgrades to existing Global System for Mobile Communications (GSM) networks and the deployment of new Greenfield
networks specifically designed for 3G mobile telecommunications.
"Network operators will be eager to deploy new network capabilities to gain an early foothold in this lucrative market, resulting in an early surge in
demand for infrastructure," said Eamonn Kennedy, research analyst with IDC's European Service Provider Infrastructure program.
Network operators have shown little interest in enhanced data rates for global evolution (EDGE) technology, and IDC believes that EDGE will not be
commonly deployed during the 2000?2004 period. The forecast for EDGE and universal mobile telecommunications systems (UMTS) places more
emphasis on the rollout of wideband code division multiple access (W-CDMA) networks, which will initially cover specific, high-density geographic
areas such as cities. EDGE will probably be deployed at a later stage to enhance coverage in less densely populated areas.
"The infrastructure will be available for delivery in a fully operational capacity according to the timetable indicated by vendors," Kennedy said. "The main
threat to the rollout of these networks will be the ability of vendors to supply equipment ? both infrastructure and handheld ? on time."
IDC estimates there will be 16.3 million UMTS subscribers in 16 Western European countries by 2004. "Network operators are busily trying to come up
with 'sticky' services. Also, equipment vendors themselves are encouraging the development of new applications by entering joint ventures or providing
venture capital 'seed'," Kennedy concluded.
IDC's report 3G Mobile Networks: What's in It for Infrastructure Vendors in Western Europe (IDC #23758) provides an assessment of what this market
holds in store for mobile network infrastructure vendors in the 16 countries comprising Western Europe. The background of 2.5 and 3G technologies,
business rationale for offering new services, relationships between vendors and customers, and wider issues in the business environment are
discussed. This report can be purchased at your local IDC office.
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Interesting what the say about the lack of interest in EDGE by Europe's S.O.'s in contrast to the surprisingly vehement defence of AT&T Wireless's plans to deploy EDGE I heard last week from Senior AWE VP Kendra VanderMeulen. Will AT&T and their tag along, Cingular, be the only S.O.'s to deploy EDGE? I thought two of the justifications for AT&T EDGE was they wanted EDGE subscriber equipment that their customers could use when roaming in Europe and that the EDGE equipment would be cheaper due to economies of scale because of the large deployment in Europe. But if the Europeans turn their noses up at EDGE, then the roaming arguement and the ecomonies of scale arguement go away and AT&T becomes an EDGE island in a sea of CDMA-2000 and UMTS. On they other hand, the slow, late, and highly expensive roll out of UMTS may cause Euro S.O. to reconsider EDGE. - DPR |
