To: foundation who wrote (9379 ) 2/22/2001 1:51:26 PM From: foundation Read Replies (3) | Respond to of 34857 Alcatel admits delayed 3G and GPRS launches By Catherine Bremer, Reuters 22 February 2001 French telecoms equipment maker Alcatel said on Thursday it did not expect third-generation UMTS mobile phones to hit the market before 2004, pushing back its earlier forecast by a year. Alcatel, which this week launched its first GPRS (general packet radio service) mobile phone to speed up online services on GSM networks and plug the gap before UMTS, blamed the delay on the time and investment needed to develop the technology. "The roll out of 3G will take three to five years from now, whereas last October we were saying two to three years. We're looking at end-2003, early 2004," Michel Rahier, head of Alcatel's mobile unit, said at a news conference at the GSM World Congress in Cannes. "UMTS terminals will take over in 2007, not 2005. The pace is going to be a bit slower than we thought a few months ago, which means the GPRS lifecycle will be longer. The availability of terminals and services are key and this takes time," he said. After sluggish WAP phones failed to grab consumers last year, industry watchers are worried that a delay in high-speed mobile services could further dent the battered telecoms sector, which is laden with debt and fending off questions about when mammoth 3G investments will pay off. Adding fuel to their jitters about when revenues will start flowing from high-speed services, Alcatel's GRPS phone is, at 14.4 Kbits/sec, only slightly more powerful than today's WAP phones . Early GPRS may fall short of expectations The phone, due to be in the shops around May, offers "always on" Web access, which should banish the frustrating connection delays that have hit sales of WAP phones and enable users to pay by kilobyte of data rather than per minute. But the handsets only have a quarter of the capacity needed to offer fully-fledged Internet and video services, and upgraded versions running on four data channels are unlikely to reach the necessary speeds before year-end. The only other GPRS handsets on the market, recently launched by Motorola also offer around twice the 9.6 Kbit/sec capacity of today's WAP phones. Alcatel, which will supply its GPRS technology to Portuguese mobile operator TMN, said it was hopeful of reaching a deal to supply Orange before the end of the first half. The company has also been shortlisted by Orange parent France Telecom to supply UMTS solutions, along with handset makers Nokia and Ericsson. "I don't believe the GPRS market will explode until 2002. There are lot of big technological questions today, and our clients cannot demonstrate that these phones will work really well ," said Jacques Combet, Alcatel business systems director said. "The technology is not yet bringing what people expected, and operators want to avoid the disappointment they saw with WAP," Combet told Reuters. Rahier said the delay meant Alcatel - which signed a deal this week to supply Vivendi's SFR cellphone group with a UMTS network - expected other UMTS deals could be three to six months away.totaltele.com