3G Timebomb Ticking Away

Those governments around the world that have been busy making fortunes selling UMTS licenses to the mobile operators may have forgotten a minor detail in their rush to the bank.

A minor detail that not only could mean that they have to pay the money earned on licenses back, but also could pose a serious threat to those countries that have state owned public service TV broadcasters.

Many people have been shaking their head and wondering why the mobile operators have been paying governments billions of dollars to acquire a UMTS license. Add to that the cost of building a 3G infrastructure - and then going out to find customers - and the prospects for a sound business case do seem daunting.

But at the end of the day, Public Service Broadcasters and the governments themselves could end up footing the bill! The bottom line is that none of the UMTS licenses issued contain any kind of "must carry" clauses. In other words, each UMTS operator can decide for themselves what content and from whom, to carry on their network. Most Public Service Broadcasters want to be available on all digital platforms, otherwise the whole idea of a state financed PSB falls to the ground and they stand to loose their state financing, but without a "must carry" clause in the UMTS licenses, 3G operators have no obligation to carry any content from PSB's.

So when the PSB's approach 3G operators and say "we need to be on your network" the operators can say, certainly and name any price they like, thereby getting a good return on investment on the price of the UMTS licenses. The PSB can either pay up or face the consequences of not being on a digital platform that will ultimately have a wider penetration than the Internet!

And it does not stop there. There is no reason why operators will not have the same approach to any state or government body, who would like citizens to be able to access their services through the 3G platforms. This can include tax services, local council services and information and much more at local government offices go digital and offer their services online. Strand Consult has knowledge of operators who have already stated that they expect substantial revenues from the Public Service and government sector, as soon as penetration of 3G terminals reaches critical mass.

Should there have been a "must carry" clause in the UMTS licenses? That depends on how you view what a UMTS license is. The governments that have issued them, have treated them as telephony licenses for wireless voice communication. But when the 3G infrastructure is complete, users will enjoy bandwidth speed much higher than the majority of Internet surfers have today on dial-up modems or ISDN! Operators have already announced that up to 50% of their revenue in the coming years will derive from other services than voice traffic. Add to this the new generation of terminals, sporting colour screens and you have a multimedia device that is "always on" and perfectly capable of handling rich content and video. In other words, maybe the governments should have treated the UMTS licenses as what they will be - Media licenses and thought a bit more about the consequences of issuing the licenses - other than charging exorbitant prices!

The latest reports from Strand Consult about the Korean mobile market "The Korean Mobile Market, a window to 3G", where they already have java enabled colour terminals deployed and are running download speeds of up to 144 Kb/s, show a huge increase in average revenue pr user (ARPU), mainly derived from the many services available to the users. An sure indication that there will be a substantial market for mobile services on the 3G platforms and that the content providers and mobile operators need to reach an agreement on how the business and revenue models will work. Another new report from Strand Consult "How to make money on mobile services " looks at how the mobile services will develop in Europe in the coming years and what factors will effect the roll out of new technologies and new services. Television ought to be one of the largest money making areas for mobile services in 2005, but even though mobile services revenue generated from television related traffic will reach Euro XXXX in 2005, that figure could be much higher if the broadcasters and mobile operators can form strong partnerships at an early stage and work together to create innovative television based mobile services.

Strand Consult believes that those Content Providers who have a strongly defined mobile strategy will be the most attractive partners for mobile operators and we have already helped one Public Service Broadcaster attain that position. But those Content Providers and Public Service Broadcasters who sit tight and still believe that "Content is King" could be in for rough times ahead, when the 3G rollout is further down the road.

This Press Release Sponsored by AGILENT TECHNOLOGIES

TODAY'S PRESS RELEASES

New statistics released by EMC indicate that GPRS subscriptions continue to grow quarter on quarter although still accounting for less than 1% of the world's GSM subscriber base.

T-Mobile customers across the United States will email pictures taken with their T-Mobile camera phone to a special contest Web site to win daily prizes or the ultimate spontaneous adventure.

Those governments around the world that have been busy making fortunes selling UMTS licenses to the mobile operators may have forgotten a minor detail in their rush to the bank.

Total Access Communication (DTAC) and Nokia announced the successful completion of the first EDGE call in Thailand and among the first operator calls worldwide.

Today marks the 30th anniversary of the first public telephone call placed on a portable cellular phone. Martin Cooper, ArrayComm Inc.'s chairman, CEO and co-founder, placed that call on April 3, 1973

According to the Yankee Group report, "The 2002 State of the Wireless Union," the wireless industry is no longer a nascent, growth industry without real revenues and profits.

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BT Broadcast Services (BTBS) and Forbidden Technologies plc have reached an agreement to trial a new generation of video streaming services to mobile phone users over existing GPRS and 3G networks.

T-Mobile USA introduces video messaging services for T-Mobile customers to record and send full motion color video messages, including sound, from a wireless phone.

Nokia announced that it would merge its four existing joint ventures in China in a move that would substantially strengthen the operational efficiency and competitiveness of its China operations.

Svenska UMTS-licens AB, a joint venture of Tele2 and TeliaSonera, applied to the Swedish National Post and Telecom Agency for postponement of the completion of the 3G network.

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Hiitachi Semiconductor and Nextreaming Corporation, a Korean mobile multimedia solution provider, agreed to co-develop and market a solution to Korean handset makers who demand highly optimized multimedia capabilities on mobile devices utilizing Hitachi’s SH-Mobile chipset and middleware.

Synergenix Interactive announced it has tailored its mophun™ mobile gaming solution to the OMAP platform from Texas Instruments Incorporated (TI).

The Musiwave service is now ready for launch, at a time when video ready handsets and networks are being rolled out to millions of mobile users and demand for entertainment content is exploding:

Sending an MMS will now be as easy and intuitive as sending a text. Furthermore, from April 1st 2003, O2 customers can get half price media messages.

The easy-to-use GPS mobile phone enables users to determine their location at the mere touch of a button, and download maps and information about the area. GPS accuracy is within 10-50 meters.

ImageFun is a photo-entertainment application from Image Semantics Ltd which enables new forms of image-based communication. It is a network based service using advanced machine-learning image processing, and it is handset independent.

Logitech is showcasing its line of mobile phone headsets. The stylish headsets, designed to stay put, be comfortable, and serve a variety of individual needs, will be feat.

XACCTmobile significantly shortens Cegetel's time-to-market (TTM) as well as time to revenue (TTR) for services such as Multi-Media Service (MMS), digital images, interactive games and downloadable ring tones.

Panasonic unveiled the X70 mobile phone, its new stylish clamshell camera phone for 2003. Following the highly successful GD87, the Panasonic X70 is 20% smaller than its predecessor and packed with enhanced features. Shipments for the European market are scheduled to begin this autumn.

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Samsung Electronics releases the new SGH-Z100, 3G UMTS mobile phone, which features the most advanced technology with GPRS Class 8, WAP, MMS and Java.

The Samsung SGH-P400, with a rotating screen, allows users to talk, take and send pictures or data quickly and easily through a single device, with the convenience of a rotating viewfinder.

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Eurotel is Intec's first convergent mediation customer in Eastern Europe, a region with one of the world's fastest growing mobile markets. The deal, valued at over one million euros, will raise Intec's profile in the area.

NTT DoCoMo, Inc. announced that it will soon begin marketing the WRISTOMO™, the world's first commercial wristwatch-style Personal Handyphone System (PHS) mobile phone.

Powerwave Technologies recently demonstrated its latest high performance multi-carrier power amplifier (MCPA) technology for UMTS networks at CTIA Wireless 2003 in New Orleans.