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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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To: ftth who started this subject	9/2/2001 2:24:02 AM
From: elmatador	Read Replies (1) of 46821

The blueprint for the implementation of 3G networks has not yet been written. The technology is in a trial stage. It is doubtful that there will be money to cover the costs of constructing 3G networks as initially planned. Operators spent 130 billion Euros to keep competitors from entering their existing telephony-SMS markets. This cost reflects the cost of protecting the markets and not a sign of the potential future business in mobile wireless data. Initiatives of vendors and operators –WAP and GPRS- have been flopping one after another and mobile data is losing its credibility by the day in a series of disappointments and postponements. Now operators are under pressure to justify the purchase of spectrum to defend their revenue streams and this hurts their bottom lines. European mobile infrastructure vendors are also in no better shape. 2G markets reached saturation and presently only developing countries remain as a source of revenue. Mobile terminals market is shrinking by the day. Vendors, regulators and operators have to act. The European Commission already cleared the way for this next move. The European Commission is starting to relax the rules to easier the way for 3G operators deploy networks. To alleviate the financial burden the European Commission has recognized that and what to get “the future regulatory framework right” The introduction of Third Generation Mobile Communications in the European Union: State of Play and the Way forward. COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Brussels, 20.3.01 COM (2001) 141 final Meanwhile a new breed of unlicensed wireless LAN (W-LAN) operators is springing up. Using equipment based on the globally accepted 802.11b W-LAN (WiFi) standard, a group of largely US and Scandinavian upstarts are racing to roll out short-range, high-speed data access points for business travellers in North America, Europe and the Asia-Pacific region. Because these new systems operate in the 2.4GHz waveband they do not require a licence. And because they can offer data rates of up to 11Mbps to wirelessly-enabled laptops or PDAs within 150 feet of any access point, they are threatening to become a thorn in the flesh of traditional mobile service providers. It is unlikely that mobile vendors and operators will let a a new set of unregulated competitors offering wireless data connections at much higher speeds than the mobile operators could ever hope to achieve.The only viable alternative for European vendors and operators is to integrate Wireless LANs (WLAN) technologies into 3G and start its rollout. Barriers of entry have lowered. Competing WLAN technologies can render the original 3G concept obsolete even before it starts. WLAN technology has evolved and matured in the last years and are the best solution to start real mobile data networks.

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