How to get 3G off the ground soon in S'pore;
IDA should consider allocating some of the 800 MHz spectrum to existing 3G licensees
The Business Times Singapore
February 10, 2003
By MARSHALL TOWE
IN many parts of the world the wait for 3G is over - and consumers and businesses are reaping the benefits. Using CDMA technologies, commercial 3G networks are providing high-bandwidth services to thousands of subscribers.
As at Nov 27, there were 28 commercial 3G operators in 12 countries around the world. In Japan, KDDI launched its CDMA2000 3G service in April 2002 and has already attracted more than 4 million subscribers in a little over six months. By comparsion, NTT DoCoMo has won just 142,400 subscribers on its WCDMA network, which was launched over a year ago. Moreover, subscribers are spending about 30 per cent more per month for the various 3G services that are available from KDDI. In the next few months, Asia will be a hotbed of 3G activity with CDMA2000 launches scheduled in Australia, Cambodia, China, Hong Kong, Indonesia, Malaysia, Taiwan, Thailand and Vietnam.
Why is CDMA2000 proving to be so popular? One reason is that operators can evolve their systems sooner within the existing spectrum - in most cases within the 800 MHz band - which delivers 3G in less bandwidth and at a much lower cost. These operators can offer 3G with fewer base-stations and add new capabilities to their existing networks as the market evolves.
The CDMA2000 path has been a far more cost-effective one. It offers economies of scale in infrastructure, handsets and applications and allows operators to provide affordable 3G services to their customers while increasing their revenues.
Customer demand for applications drives 3G. They want immediate access to mobile e-mail, video clips, MP3 songs, karaoke, photos, games, position location, banking services, news alerts and Internet access - all of which are possible via today's 3G CDMA services. CDMA2000 operators already have access to nearly 200 3G devices.
Technical issues with UMTS have delayed the delivery of these commercial advantages in a timely manner. That's one reason why StarHub and SingTel have called for the IDA to postpone its end-2004 deadline for 3G launches here.
In Europe, 3G licences have cost operators billions of dollars; but the WCDMA (UMTS) standard is continually being changed, testing is incomplete, and operators do not have equipment or resources to build expensive 2.1 GHz networks. Operators want to offer their customers the benefits of 3G, but find they can't in the spectrum they were allocated or with the technology they have selected.
Then why are two of the three mobile operators in Singapore contemplating introducing another 3G technology that has never been commercialised - EDGE (Enhanced Data GSM Environment) - with the possibility of introducing UMTS in the 2.1 GHz frequency band shortly afterwards? It's a risky, time-consuming and expensive approach.
For many years, Singapore has been considered the IT leader in South-east Asia. So why is it risking this position by not embracing the 3G revolution? The decision to allocate 2.1 GHz band may have been a sensible one in November 2000, when information about the viability of the technology was limited. But the wireless world has moved exponentially - the decision made then is no longer valid now.
A 3G solution for Singapore is sitting right there - a sizeable portion of the 800 MHz band in Singapore is not being used. The IDA should consider allocating some of the 800 MHz spectrum to each existing 3G licensee as a low-cost, low risk early means to deploy 3G. As many of Singapore's neighbours are or will soon be running 3G systems on the 800 MHz spectrum, this would provide not only economies of scale but immediate roaming opportunities for Singapore's carriers and customers.
Let's face it, at the end of the day, businesses and consumers don't care what technology or spectrum is used to provide 3G services. What they want are benefits at reasonable costs.
The writer is vice president and managing director (South-east Asia), Qualcomm Inc. |
