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To: JohnG who wrote (9487)	2/26/2001 12:39:32 PM
From: S100	Read Replies (2) \| Respond to of 34857

Orange still believe the future's bright for GPRS 2/26/2001 Author: Andrew Darling, Editorial Director, MforMobile.com Despite dark clouds all around, Orange keep smiling and insist that GPRS will reap handsome rewards. France Telecom's mobile unit Orange sought to squelch scepticism about its next-generation GPRS mobile Internet services last week, a week after announcing that it would delay their launch. Europe's second-largest mobile operator confirmed fears that stop-gap "always-on" GPRS Internet phones will not be available on a large scale before next year. But Orange also tried to reassure investors about the prospect of new mobile data revenues after widespread consumer disillusionment with sluggish WAP (Wireless Application Protocol) online phone services. It insisted that it would reap profits four to seven years after the launch of the GPRS services, with subscriber revenues doubling. "From the second half of 2001 we will start seeing GPRS handsets coming out in tens of thousands, primarily targeting business clients. But it will be next year before we see a mass consumer market in France and Britain," Orange Executive Vice President Richard Brennon told a news conference on day two of the annual World GSM (Global System for Mobile Communications) Congress. "We don't want to launch GPRS until we have enough terminals. The network is ready in France and Britain, the billing system is ready. We are just waiting for the handsets," Orange Europe Managing Director Didier Quillot said later. WAP phones, which failed to live up to expectations, went on sale last year, running on existing GSM networks. The launch of GPRS will be a crucial stepping stone to faster UMTS (Universal Mobile Telecommunications System) mobile Internet, running on new third-generation networks. Orange unveiled a futuristic vision of how smart online services could revolutionize homes, and forecast third-generation market penetration of 300 percent in France by 2010, as consumers use more than one mobile Subscriber Identity Module (SIM) card, installing intelligent devices in appliances from fridges to washing machines. "We still have the same profitability model for UMTS," Quillot said, adding that per subscriber revenues should at least double from today's 35 euros by 2010. Orange expects voice revenues to account for just a third of overall revenues by 2010, as data transmission counts for a third and new services like personalized online music and healthcare another third. "For the next two to three years, voice will still make up the bulk of revenues but as we go forward we will see 50-60 percent of revenues and 30-40 percent of profits coming from new services," Orange's outgoing chief and creator Hans Snook told delegates. Telecoms stocks have halved since last March, with investors and credit ratings agencies questioning the mammoth debts clocked up by European operators to finance some 200 billion euros worth of investments in UMTS licenses and infrastructure. Orange, which has 31 million subscribers in 20 countries, said it aims to be available to 1.5 billion people worldwide—a quarter of the world's population—by 2005. Its network currently covers some 450 million people. Quillot said France Telecom would announce in the days ahead which of its shortlisted UMTS suppliers - Alcatel, Nokia and Ericsson - it would choose to supply it with 3G infrastructure and equipment in France, Britain and Germany. He said the group plans to have bi-mode UMTS/GPRS terminals on the market from mid-2002. It does not expect full national coverage from UMTS for several years. mformobile.com