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To: lkj who wrote (30493)	5/21/1999 3:03:00 AM
From: brian h	Read Replies (2) \| Respond to of 152472

All, 3G to lift mobile usage and revenues YVONNE CHAN in Stockholm In fiercely competitive mobile-phone markets such as Hong Kong, profit margins are falling as more services open up to consumers. Handsets often are offered free by operators in return for consumers signing up for more months in advance, or extra usage time. The coming third generation of mobile phones - often called 3G - which promises digital-quality sound, full-motion colour video and interactive services at transfer rates of two megabits per second - is hoped to bring more revenues for network operators as users spend more time using phones for purposes other than calls. 3G systems are expected to be on the market worldwide in the next three years. Enabling mobile operators to offer Internet services will increase usage. The average voice call is estimated to take 2.5 to three minutes, while a call to the Internet is 25-30 minutes. "The only way to increase revenue in the mobile network is to increase the usage," said Kjell Arvidsson, a marketing manager for Ericsson Radio Systems. Will there be enough Internet content to keep subscribers engaged? In industry demonstrations, Ericsson has previewed its vision for 3G phone applications that will bring not only information, but entertainment, to handsets. You could call up a colour trailer of a movie, then book tickets for the film at a theatre, or watch a music video of a band and get information about where to buy its CD. Pending the outcome of a copyright tussle, MP3 music could be played on the phone with the clarity of digital CD. And, although the industry is rather secretive about it, one global content provider said Internet pornography also would be coming to 3G phones. It will cost millions for GSM and TDMA operators to upgrade networks to the 3G standard, but Ericsson executives believe that return on investment could take less than two years. On the consumer side, however, pricing is a controversial subject. As 3G phones will be on-line continuously, being charged for connected airtime is a moot concept. Ericsson and other equipment-makers propose that users be charged for the number of data packets they send and receive, which subscribers might not like, as it would be nearly impossible for them to verify data amounts. Mr Arvidsson suggests tiered tariffs, offering business users a combined bill with a subscription fee and per-packet charges, and another for "price sensitive" users who could be charged a flat rate or pre-paid scheme. Best, Brian H.