New Handset Could Define
3G in Europe - by Tom Dibble - Sep. 23, 2003
3, the UK's 3G leader, has recently introduced
a new member to the 3G-handset family the Motorola A920. It's
depicted as combining a videophone, games machine, MP3 player,
and PDA-style organizer into one unit.
Since 3 launched, the 3G operator has acquired
about 155,000 subscribers. Recent studies have shown that many
people may have resisted signing up because of the limited choice
of handsets available. The hopes are that the multifunctional
A920 will aid in highlighting the difference between 3 and its
competitors in the world of 2.5G.
So, if this A920 is to become the benchmark for
3G in Europe, what can you do with it? For years now, pundits
and analysts have been feeding media and consumers with expectations,
authored by MNOs and handset manufacturers. The consumer is
either expecting nothing or a mobile utopia.
Mobile video calls (P2P) seemed to be the unique
selling point 3's marketing efforts concentrated on in the early
days. P2P video calls are a great USP but not right now. It
will find the same obstacles that MMS has found lack of compatible
handset penetration. Content, on the other hand, is a far more
potent attraction to a prospective 3G consumer. On the new networks,
content will either make or break the bottom line. A 3G network
is all about one thing and one thing only burning bandwidth.
No matter how it's packaged, revenue is dependent on it. Finding
appealing ways for consumers to do this and do it cost effectively
is the goal for 3G MNOs and their ad agencies.
The latest Motorola handset claims a 2-minute
download in 30 seconds of "good quality" video. So
in theory, downloading highlights of the football game you missed,
P2P gaming, or exclusive music content and the like is the new
currency for the mobile world.
Telecoms are counting on 3G services to stimulate
fresh demand in a mobile market that's approaching the saturation
point in the majority of industrialized countries. However,
many operators burdened with debt after paying hefty prices
for the spectrum licenses have been forced to postpone the launch
of their own 3G networks.
Some analysts are skeptical that mass demand for
the new services will materialize in the short term, arguing
that few consumers will be willing to pay the hefty premiums
levied by 3G MNOs.
In an effort to increase its market share, 3 has
cut charges on its basic, voice-only service, competing directly
with traditional mobile operators such as Vodafone UK. This
change in its strategy is an obvious attempt to up sell subscribers
to 3G services, rather than taking on a new market head on.
Early indications are "promising,"
states Hutchison. Their optimistic 3G forecast came as Hutchison,
3's parent company, which also has interests in hotels, container
ports, supermarkets, and oil, turned in a net profit of HK$
6bn ($778m ; £466.8m) for the first six months of the 2003,
up from HK$5.9bn during the same period last year.
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