To: TechTrader42 who wrote (16966 ) 8/28/2001 1:42:16 PM From: stockman_scott Respond to of 52237 Is 3G Turning the Corner? (28/08/2001, BWCS Staff) A series of good news stories from vendors, operators and researchers may indicate that confidence is returning to the 3G sector. The world’s largest manufacturer of computer chips for mobile handsets, Texas Instruments, has reported an increase in demand for wireless chips. The company stated that as stocks of mobile handsets cleared mobile vendors were now beginning to order chips for new handsets. However Texas Instruments acknowledged that the overall industry and wider economic situation remain fragile and although it expected demand to recover in the second half of 2001, overall sales for the year would remain largely unchanged on last year. The news from operators seems more positive too. Yesterday Deutsche Telekom announced that it was on course to roll out its UMTS network to 50% of the German population by 2004, one year ahead of RegTP’s deadline. The operator expects to launch 3G services commercially in early 2003. Meanwhile Italian UMTS licensee H3G, which is backed by Hong Kong-based Hutchison Whampoa, has stated that it will launch services in the third quarter of 2002 as expected. H3G will initially offer 3G services in 50 Italian cities. Demand for 3G services remains high according to a survey carried out by the Personal Communications Industry Association. The survey garnered opinions on a wide range of next generation mobile services across a number of countries. Mobile users in Italy were found to be most interested in advanced mobile services followed by South Korea, the UK, Germany, Japan and the US. In terms of applications location-based maps and real-time traffic information proved to be the most popular information services, while travel booking was the top transactional service and mobile videophones and video messaging were the most demanded entertainment applications. However, the survey concluded that 3G operators must match services with consumer needs in order to be successful. While the green shoots of recovery may at last be visible in the mobile industry, operators and vendors will be only too aware that they remain at the mercy of larger economic forces. In addition until mobile operators find the magic 3G formula of desirable, reliable services offered on the right device at the right price, most subscribers are likely to keep their hands firmly in their pockets.bwcs.com