To: S100 who wrote (11765 ) 5/21/2001 1:20:18 PM From: S100 Read Replies (1) | Respond to of 34857 BT's 3G network to fall short of promise 15:53 Monday May 21, 2001, Reuters British Telecommunications' launch of Europe's first third-generation wireless network may disappoint users with slower speeds than expected and without always-on connections, a key advantage of the new technology. BT, Europe's fifth-largest mobile operator, plans to launch a 3G network on Britain's Isle of Man to get a first-mover advantage over competitors. It has already delayed the launch until at least late summer. The company said its current plan is to start service without always-on Internet connections, which enable high-speed Web surfing and music and video downloads and help boost videoconferencing services. The latest setback to 3G could affect not only BT but other mobile operators as well. These companies paid about EUR 100 billion to win European 3G licences and now must make money from that investment by building high-speed networks that offer huge improvements in performance and win customers. But some analysts say technical obstacles may delay the large-scale deployment of 3G services for as long as five years. BT is using the island off the northwest coast of England as a testbed for the technology. It says it will offer the 75,000 inhabitants a real 3G service. The speed of the Internet connection will be only 64 kilobytes per second at first, however. That is about six times faster than the current WAP phones, but falls far short of the 384 kb/s that the technology is supposed to be capable of handling. Furthermore, the service would not include technically complex "packet switching" technology, which enables always-on Internet connections. Users will have to dial-up to get on the Web, the same frustrating process that has discouraged widespread use of the existing WAP (wireless application protocol) Internet phones. BT's decision to delay the launch, however, may give it enough time to include packet switching from the beginning after all, said Ralf Ohlhausen, a BT executive seconded to its Isle of Man subsidiary Manx Telecom. BT is racing Japan's NTT DoCoMo to launch the world's first 3G network. Both have delayed launches planned for this month - BT to late summer or early autumn and DoCoMo to October. A joint venture of Siemens and NEC, called Mobispher, is building the network. Siemens' UK managing director of mobile networks, Svante Stenbom, said BT would be justified in claiming it had beaten DoCoMo even if it launched without packet switching. "It will still be the world's first 3G network, but it won't be the full 3G experience," he said. A packet-switched network is more versatile than a conventional circuit-switched one, because it can keep a permanent connection to a phone without draining network resources. Users are only charged when they make calls. Packet switching is essential for location-based services, a fundamental 3G feature that provides information relevant to the user's position. But BT wants to test the network with circuit switching before adding hardware and software for packet technology. Even with circuit switching, the network will be able to handle videoconferencing. But few people will actually be able to use the service, because the 200 NEC handsets BT plans to distribute at the launch require a separate plug-in display to show video. There are unlikely to be many of those available, a project spokesman said. Siemens also revealed that the project has been delayed by problems with a fundamental network component, and not by faulty NEC handsets as BT announced last week, triggering a row between the three companies over who was to blame. NEC engineers are working around the clock to fix software in the radio network controller, which collects signals from transmitter base stations around the island and passes them to the network switch. The fault causes the controller to drop calls when a user moves out of range of one base station, instead of passing them to the next base station. BT has had to share some of its insights with UK rival Hutchison 3G, which undermines its first-mover advantage. The terms of the BT project allow Siemens and NEC to show the network to its other customers. Hutchison executives have toured the BT project as a guest of Siemens and NEC, Siemens told Reuters on the Isle of Man last week. telecom.paper.nl