That is why I want to try these things myself. But can not quite get interested in a GSM phone in US. Also depends on coverage, if in a poor area, then not much will work.
How now, 3G
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Industry awaits DoCoMo 3G launch with apprehension
By Michiyo Nakamoto in Tokyo
Published: September 30 2001 16:18 | Last Updated: September 30 2001 17:01
The handsets are in place, the network has been tested and the sales representatives thoroughly trained, but the launch on Monday of NTT DoCoMo's third generation service, Foma, is being watched with more than the usual trepidation.
"Everything is in place but we are worried because we have no idea how much demand there will be for the new services," says Takashi Tanaka, deputy manager of one of DoCoMo's largest retail stores in downtown Tokyo.
The success of Foma, the world's first 3G service using wide-band CDMA technology, is critical not only for DoCoMo, which is spending well over ¥1,000bn on infrastructure and more on the handsets, but also for European operators who have spent huge sums to acquire licenses to offer 3G services.
The Europeans, who will be using the same W-CDMA technology that DoCoMo is, have a keen interest in seeing the service succeed, if only to convince their anxious shareholders and banks that the money they poured into the licenses was well spent.
But the launch of Foma comes just as personal consumption in Japan is expected to slump even further due to a worldwide economic downturn and rising unemployment.
With handsets ranging from ¥30,000 to ¥60,000, it is unclear how much demand there will be for the new phones.
Sadashige Miyaoka, who works for a TV broadcaster, is keen to buy a Foma handset, but only if the price is right. "I'm interested in information like restaurant guides, real-time news and sports, but it seems expensive for a phone," he says.
Even if the economic outlook were better, the service leaves much to be desired.
DoCoMo's new service promises much faster data communications on the mobile phone than what is currently widely available - at a maxiumum of 384 kilobits per second for the downlink and 64 kilobits per second for the uplink.
The popular video-phone, which is the first in the world, will also add a new dimension to mobile phone usage.
Keiji Tachikawa, president of DoCoMo, boasts that "third generation technology is not an extension of second generation technology. It is completely different because it will offer very high speeds and is based on an international standard."
But a larger number of users will slow down the service. Foma achieved an average 300 kbps for the downlink and 64kbps for the uplink during the trial service when it was used by only 4,500 people.
There are also serious technical glitches that are likely to turn off consumers in the early stages of the service.
For example, batteries will only last 55 hours at a time and will require frequent re-charging. DoCoMo's most advanced phones have a battery life of 200 hours.
The lack of Foma-specific content is another disappointment.
Naoto Sawada, a graphic designer who spends about ¥20,000 a month on his mobile phone, is interested in high-speed data downloading which he would use for services such as airline reservations. "But it isn't clear what kind of contents will be available so I'm going to wait and see what people say about it."
Mr Tachikawa admits that services, such as mobile music and video, which were supposed to be the killer applications for 3G, may not be successful, due to copyright issues and the high cost of music and video downloading.
Services will also be restricted to the Tokyo area at first and will only extend to the three major urban centres of Tokyo, Osaka and Nagoya by the end of the year. National coverage is not expected until 2004.
Global roaming will have to wait until other operators in overseas markets introduce their own W-CDMA services. This is not expected until in the latter half of next year at the earliest.
DoCoMo will only have about 20,000-plus handsets at the launch and 150,000 in the first 6 months. This compares with an average 350,000 to 450,000 new subscribers per month for its current services.
"To expect the same instant success from Foma as we saw in i-mode initially is unrealistic," says Kate Lye, telecoms analyst at UBS Warburg in Tokyo.
If DoCoMo can deliver on its promises to lower the price, get the technology right and encourage content providers to come up with attractive applications, 3G could be widely adopted in due time in Japan.
This is because in Japan, consumers have had a taste of the benefits of mobile data services and their appetite for appealing entertainment applications and business demand for mobile information will drive demand for high-speed services.
Mr Tachikawa believes that "eventually all users will shift to 3G. We will drop 2G when it becomes most efficient to do so," in around 2010, he says.
But Europe and the US are another matter.
Users in these markets are not yet fully convinced of the benefits of mobile data.
The success of Foma is critical to building confidence in 3G worldwide. But it is not enough to ensure its success outside Japan.
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And some are not happy with large sums.
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French group SFR withholds part of 3G payment
By Robert Graham and Jo Johnson in Paris
Published: September 30 2001 19:15 | Last Updated: September 30 2001 19:53
SFR, one of two groups awarded a third generation mobile phone licence in France, on Sunday announced it was withholding its E619m ($570m) first tranche payment due to the French government on Monday because of the onerous terms and deteriorating international business climate.
SFR, whose main shareholder is Cegetel, the French telecommunications group controlled by Vivendi Universal, said it would pay the sum into a blocked account at the state-run Caisse des Dépôts.
This move was seen as a clear attempt by Jean-Marie Messier, the Vivendi chief executive, to put pressure on the government to renegotiate the 3G licence terms. Nevertheless it is the most dramatic action yet taken by a European Union telecoms operator to ease the heavy burden of 3G licence costs.
It will add to the embarrassment of the French finance ministry, which has so far found takers for only two out of the four 3G cellular licences on offer. A second round for the remaining licences is expected to be held after French elections next spring.
France Telecom, the partially privatised former French telephone monopoly that was awarded the other 3G licence, said on Sunday it was going ahead with its E619m payment due on Monday. However, France Telecom has voiced the same concerns as Vivendi over the heavy cost of paying for the new licences before the service has become operational.
"We are very surprised by these developments and this could place the licencee in technical breach of the law by placing the funds in a blocked account," a senior French government official said.
The decision comes two days after SFR received formal notice of payment for the first tranche from the government.Mr Messier said last week the company was holding talks with officials in an attempt to lessen the financial burden.
In a statement on Sunday SFR said it was anxious to "reach a balanced solution with the authorities on a pragmatic and realistic basis". The company stressed it was not refusing to pay but merely placing funds in a blocked account to show its desire for a "constructive dialogue". The total licence cost is E4.95bn.
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