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To: John Biddle who wrote (31757)1/27/2003 5:03:42 AM
From: John Biddle  Read Replies (1) | Respond to of 196584
 
3GNewsroom.com Weekly Round Up and Comments
David Yuen - January 27, 2003
3gnewsroom.com

Our round up and comments of the past week's main stories from our editor.

******** THIS WEEK ********

- T3G to speed up TD-SCDMA implementation
- Commission's decision leaves consumers worst off
- Dutch lobby for license relaxation
- 3G arrives in Mexico

****************************

>>> T3G to speed up TD-SCDMA implementation

Datang, Royal Philips and Samsung have formed the joint venture company named T3G which aims to significantly improve the rollout of commercial TD-SCDMA handsets. The company will distribute reference designs, hardware and software for developing mobile handsets and end user equipment.

It is hoped that T3G would speed up and ease the migration of 2G to 3G networks. Part of its aim is to develop cost effective dual mode handsets by licensing core chipset and reference designs for TD-SCDMA/GSM handsets.

"Through T3G's solution, Samsung plans to introduce commercial handsets in 2004 that will help the TD-SCDMA reach its full potential," said Mr. Shin, Jong Kyun, vice president of mobile communication division at Samsung.

Meanwhile, experts responsible for planning the rollout of China's 3G mobile services have recommended three options to the State Council for consideration. The proposal states the regulator should award a total of four 3G licenses to China Mobile, China Unicom, China Telecom and China Netcom.

The first option allows operators to choose their preferred 3G technology to deploy. In the second option, China Telecom and China Netcom would have to deploy TD-SCDMA networks while China Mobile would adopt WCDMA and China Unicom implement CDMA2000. The final alternative would see China Telecom and China Netcom implement TD-SCDMA technology plus other standards they wished provided TD-SCDMA is deployed in certain districts as the main network system.

Certainly the first option seems to be redundant as it does not guarantee that any operators will implement TD-SCDMA. The Chinese has invested much in the technology and has strong backing from the government. They don't want to see the investment go down the drain and so the two other options are more likely to be picked.

>>> Commission's decision leaves consumers worst off

The decision by the Competition Commission to lower termination charges could jeopardise the rollout of 3G service in the UK. At least one firm had said it would delay it the launch of its 3G service. MmO2 announced that its launch would be pushed back to the second half of 2004 and also raise prices of its 2G handsets plus call costs.

Mobile operators in the UK consider the market to be competitive and that the commission's plans would leave consumers bearing the consequences of price rises.

Vodafone and Orange said they would seek a judicial review, while T-Mobile is to consider increasing its handset prices and outgoing call charges.

An Orange spokesperson fear that the cut in termination charges, cost for calls from fixed line to mobile, may not be passed on to fixed line consumers.

Despite the ruling, Vodafone does not intend to delay its rollout plans. "We are not in the frame of mind to delay 3G rollout as a consequence of this," said the company's Northern European director, Peter Bamford. He said Vodafone aims to launch 3G in the later part of the year but warned a lack of 3G handsets would hamper the rollout schedule.

Whatever actions operators take, mobile phone customers would face the consequence of the commission's decision. Rises in handset prices and call charges are expected in the future and delays in rollout of 3G networks would deprive consumers of high-speed data services such as videoconferencing. The commission's decision could dim of what could have been a very promising year for 3G rollout in the UK.

>>> Dutch lobby for license relaxation

It has been reported that Dutch operators KPN and Dutchtone, part of the Orange group, are lobbying the government to have the duration of their 3G licenses extended from 15 to 20 years. Furthermore, the operators want the privilege to sell part or all of their 3G radio spectrum.

Both operators argue the longer license period would give operators time to recover the huge costs in 3G licenses and infrastructure. They said that 20 years for licenses has become the norm in Europe and urge the authorities that the license duration should begin from the moment they start 3G services.

The authorities are reported to be considering allowing operators to sell their 3G licenses but would not amend the license period. Vodafone Libertel is reported to be against any license amendments.

KPN is also considering whether to go to court with both the German and Dutch government to win back VAT it paid for UMTS licenses. The Spanish mobile group Telefonica Movilesm, part owner of Quam, has also requested a return in VAT from the German government. The German finance ministry said it saw no reasons for paying out tax rebates on license fees and the Dutch government claims no VAT was charged on the license as it was acting as a public body.

>>> 3G arrives in Mexico

Finally, Grupo Iusacell, S.A. de C.V. announced the launch of its commercial CDMA2000 1X service in Mexico, the first in the country.

"We are extremely pleased to be able to provide our customers with the first major high-speed wireless data service in Mexico," said Carlos Espinal, CEO of Iusacell.