re: 3G Handsets
>> 3G Mobile Communications Jump into High Gear in 2002
Takahiro Kikuchi
Nikkei Electronics
February 4, 2002
nikkeibp.asiabiztech.com
The third-generation (3G) mobile communications infrastructure will be introduced worldwide in the next few years, which makes this an exciting time in the industry.
In Japan, NTT DoCoMo Inc. has already launched its 3G service called "FOMA." Also, KDDI Corp. and J-Phone Group will begin their high-speed communications services in rivalries with the FOMA service in 2002. Starting from this year, European carriers are expected to follow suit.
NTT DoCoMo started its FOMA experimental service in May 2001, and actual operations involving 3G are being clarified. They include the circumstances on major applications and target users, to what extent the technology concerning 3G has matured and high-tech hurdles to overcome. These circumstances have revealed the fact that those who win the development race of the related software will win in the "3G" market.
3G Experience Presents Points of Focus for Future Development
Now that the telecom carriers have launched actual 3G services, the reality involving 3G is gradually becoming clear.
One of the facts is that 3G technology will continue to be developed for mobile phones.
Although the 3G technology enables a data transmission speed 40 times faster than that of the conventional mobile phones, various applications, including i-mode, will remain basically unchanged. Telecom carriers believe that the 3G technology will be developed not through PDAs but through mobile phones.
The second fact that has become evident is that the system for providing 3G services comprises so many elements that it is no longer possible for telecom carriers and device manufacturers to provide new services on their own, without seeking help from other businesses. Major 3G applications cannot be provided without using the Internet. Carriers and device manufacturers must seek support from content providers as well as software houses and PC manufacturers that support the content service.
And the third fact is that the industry evolves with global players. The competition among manufacturers is becoming intense, as was expected. The process to make a consensus among businesses is becoming more complicated. Negotiations with a wide variety of businesses often cause delays and slow the speed of product development.
Considering these circumstances involving 3G, telecom carriers, manufacturers and other businesses have begun to take necessary measures. In particular, the efforts to create the environment for developing network services (or "killer applications") and the work to develop the unified platform for software are progressing at rapid paces.
Carriers Aim to Differentiate Services by Original Software
Many of the events that occurred in the mobile communications industry in the past year were related to "software." In particular, prominent moves were seen to unify the software platform for mobile communications devices.
Qualcomm Inc. of the United States, for example, has developed a platform called "Binary Runtime Environment for Wireless (BREW)." This platform makes it easier to develop services that can be adopted by any mobile communications business. Also, it will facilitate development of applications to be pre-installed in mobile devices. The move toward a unified software platform is accelerating competition among the carriers that are trying to differentiate their services from others.
This trend is bringing a great benefit to telecom carriers. In the telecom market, where phone-call services play the central role, it is difficult for carriers to differentiate their services from others. For this reason, they are forced to compete with each other in cutting telecom rates. However, it is possible for them to differentiate their services by providing original musical sound alerts or offering games that can be downloaded. In addition, they may win users' loyalty to their services by making the contents of their services clear and appealing.
In fact, J-Phone has successfully gained young subscribers to its mobile phone service by offering the "Sha-mail" (photo mail)-enabled mobile phone -- with a built-in camera. As a result, the percentage of the subscribers who canceled the company's mobile phone service gradually declined. The cancellation rate dipped to 2.1 percent in September and October 2001. In March 2001, NTT DoCoMo, which succeeded in winning subscribers to its mobile Internet service "i-mode" posted a 1.39-percent cancellation rate.
Handset Manufacturer Must Focus on Speedy Software Development
Software holds the key to victory in the competition not only for telecom carriers but also for handset makers. Because it is becoming more difficult for the manufacturers to achieve superiority over others by simply enhancing functions of their hardware, there is a growing tendency among them to attach importance to software.
Makers of handsets are facing difficulties in winning the software development competition. The key to success is the development speed and stability of their software.
NEC Corp., Matsushita Electric Industrial Co., Ltd. and Matsushita Communication Industrial Co., Ltd. have recently formed tie-ups to develop 3G-enabled devices. The primary objective of the tie-up is to enhance the efficiency of the software development.
Yasuo Katsura, president of Matsushita Communication Industrial, said the company formed the partnership with NEC, aiming to accelerate the development speed. He also said that although it is too optimistic to expect that the tie-up would enable the two companies to shorten the development period by half, they would probably be able to cut the period by 20 percent to 40 percent.
In the 3G era, the scale of software is becoming enormous. In preparation for the arrival of the era, NEC has reviewed its software development system to shift to a component-based system, since it launched the first i-mode-enabled mobile phone in 1999 (see chart). The new development system has enabled the company to cope with new services by making a minimum change to the functions of its mobile phones. It was generally believed that through these efforts, NEC could become the first company to launch the FOMA-enabled handsets.
NEC was forced to recall its devices due to a bug after the company released them in November 2001. But software components enabled the company to mend the bug in the software relatively quickly. Although there were some cases in the past in which makers were forced to suspend sales of their devices for as long as one month, it was only about a week suspension in NEC's case.
High Technological Hurdles Exist in Hardware Development
High-tech hurdles also must be overcome in developing 3G-enabled hardware.
A typical example is the specifications involving the talk time and standby time. The standby time of the first model of the FOMA devices is extremely short. As for NEC's devices, the standby time of "N2001" and "N2002," which were released in October and November 2001 respectively, is only 55 hours, while that of the company's conventional models is about 460 hours.
According to NEC, the short standby time of the 3G mobile phone is mainly caused by the baseband LSI. The baseband LSI for the W-CDMA mobile phone is a typical example of a new component. NEC, which was ahead of other makers in manufacturing the 3G devices, says there is much room for improvement in its baseband LSI.
Hitachi Ltd., which has developed a baseband LSI for 3G devices, believes that the effective method of reducing energy consumption of the baseband LSI is to form a multi-processor structure.
Some manufacturers complain that coordination among international players for defining specifications involving the W-CDMA baseband is difficult, just like the specification adjustment concerning software among makers.
They say it is not easy to create an international consensus because the European makers are also giving high priority to the development of specifications for the W-CDMA mobile phone.
In fact, the Third Generation Partnership Project (3GPP), the industry group set up to decide on the standards for the 3G W-CDMA mobile phone, is renewing the standard frequently, a few times a year. Judging from these circumstances, it is likely that manufacturers will have to frequently renew the software installed in their devices to catch up with the evolution of the specifications. <<
- Eric - |
