Nokia upping ante on 3G
Author: (LI WEITAO)
October 22,2002
HANGZHOU: Nokia, the mobile phone sector's bell-wether, is forcing the cellphone revolution by staking a bigger bet on China, despite gloomy global sentiment about the much-discussed third-generation (3G) roll-out.
"We are again on the brink of a new, fascinating era when the first launches of 3G are happening, marking a phase where advanced mobile services over WCDMA (wideband code division multiple access) technology will be introduced to the first users," said Juhani Kuusi, Nokia's senior vice-president.
"Nokia is deeply committed to bringing this revolution (towards 3G) further."
An earlier media report suggested Nokia would tone down hopes for the much-touted 3G business.
Anssi Vanjoki, executive president of Nokia Mobile phones, was quoted as saying consumers would probably be happy with current technology and operators do not yet need to build data services around new, costly 3G or WCDMA radio spectrum networks.
Kussi dismissed that report.
"He (Vanjoki) was misunderstood," Kussi told Business Weekly.
"We need 3G. He (Vanjoki) said we can already make exercises with 3G services. But with more and more use, we need 3G."
"In voice, we need 3G in the future, when we need more capacity. This is a good period to start the (3G) services."
As the Finnish company makes more than one in three phones sold globally, any major move will have a big impact on the wireless industry.
Nokia unveiled late last month the Nokia 6650, its first, next-generation colour-screen mobile phone, which can work on current, second-generation (2G) of GSM (global system for mobile communications) networks and 3G WCDMA systems.
The dual-mode phones, which will enable operators to test high-speed 3G networks, are expected to boost slowing development of the global 3G business.
Commercial roll-out of 3G services has been delayed several times in Europe, dashing hopes for a high-speed telecoms revolution.
Nokia is committed to developing 3G business in China, Kussi said.
"3G development in China certainly will have its own roadmap different from Europe and Japan," he said.
"In China, while mobile voice service is needed based on the large population, the need for mobile data service is rapidly increasing in urban areas."
China has not yet decided which mobile standard to adopt.
Any decision on the standards and the development of 3G networks in China will change the industry's competitive landscape.
The 3G market is expected to be worth US$100 billion within five years.
Nokia has long advocated the use of WCDMA instead of Chinese-developed TD-SCDMA (time division synchronous code division multiple access) and Qualcomm's CDMA.
China Mobile is leaning towards WCDMA to upgrade its current GSM network, even though worldwide development and roll-out of networks have been slow, said Li Yue, China Mobile's vice-president.
However, he said the operator is not ruling out using CDMA2000 1X under certain circumstances.
Government demands will play a major role in the selection in addition to China Mobile's decision, the technology and its maturity, Li said.
"WCDMA 3G is for both data and voice services with larger capacity, cost efficiency and better quality, which is right for China," Kussi said.
He predicts WCDMA will dominate the world market in 2005 with about 85 per cent market share.
"Though China's market is the largest in the world, overseas markets are also attractive to China's industry players. WCDMA provides a huge business opportunity for Chinese players."
Nokia opened last week its Hangzhou Branch and Nokia Hangzhou Research and Development (R&D) Centre in East China's Zhejiang Province.
China is now Nokia's second largest market.
Nokia's investment in China has totalled 2.3 billion euros (US$2.27 billion).
"We have contributed to two different 3G platforms, and we are currently working on two more releases," said Petri Vesterinen, head of Nokia's Hangzhou R&D centre.
The centre will "enter into collaborated 3G development next year," Vesterinen said.
www1.chinadaily.com.cn
==========
"..WCDMA will dominate the world market in 2005 with about 85 per cent market share.."
"He (Vanjoki) was misunderstood.."
<ggg> |
