The talk throughout 2000 centered on third-generation (3G) technology-its high costs, functionality, risks and mostly its promise. But 3G has different meanings in different circles. Because 3G is something that is not yet officially tangible, a concrete definition is not easy to come by.
The International Telecommunication Union (ITU) defines 3G features in rather vague phrases, such as a commonality of design, compatibility of services, high quality, small terminals for worldwide use, global roaming and multimedia applications.
There are also data speeds. True 3G services offer 384 kilobits per second (kbps) to 2 Megabits per second (Mbps) data speeds, according to the ITU. The so-called 2.5-generation (2.5G) services, such as GPRS, EDGE and IS-95B, will offer data speeds from 64 kbps to 144 kbps, per ITU data.
As for spectrum, the ITU has designated 3G frequencies at 1885-2025 MHz, 2110-2200 MHz, 806-960 MHz, 1710-1885 MHz and 2500-2690 MHz. Countries are free to use the bands that are most effective for their markets.
Based on these parameters, is 1X technology really 3G? According to most press releases for 1X contract wins, it will enable 144 kbps data transmission. This would make 1X a 2.5G technology according to ITU data speed definitions. On the other hand, on a chart on the ITU Web site, 1X is included under the category of cdma2000: 1X/3X, right next to wideband-CDMA and UWC-136.
And even NTT DoCoMo, which is set to be the first 3G licensed operator to begin services in May, will initially not offer 384 kbps services. Its data speeds most likely will be much slower in the beginning-more like 64 kbps. So is that really 3G? And Japanese operator KDDI plans to begin 2 Mbps data transmission, but not in designated Japanese 3G spectrum, so will this be a 3G service?
Furthermore, many vendors are touting “3G contracts” with U.S. and other carriers around the world. The United States has not awarded 3G licenses, so can U.S. carriers truly offer 3G services without licenses, even if data speeds and services meet 3G parameters?
Most likely, definitions will not matter. Customer uptake of services will be the most important issue. Markets are reaching saturation, with European mobile penetration levels hitting more than 70 percent, according to Forrester Research. The same research forecasts the European average revenue per user (ARPU) to decrease, along with operating profits.
So enticing current customers to spend more time on their phones-either talking, playing virtual fishing games or buying the latest novel-is key.
And if a subscriber travels to another country, you still want that subscriber to use his mobile phone. So making it easy and cost effective for him to roam seems to be a given, although it is a service that has not been given the attention it deserves by operators.
When AT&T Wireless launched its national Digital One Rate plan in 1998, U.S. mobile-phone use exploded. The service allowed customers to make a set number of minutes of calls from their wireless phones anywhere in the country, anytime of the day for a set monthly fee. AT&T Wireless made it easy for consumers. The carrier’s subscriber base ballooned.
Making it easy for consumers to roam might not increase a carrier’s user numbers, especially in saturated markets, but it will be one way to boost airtime use. And in the 3G arena-no matter how you define it-that will be essential.
As for Global Wireless consumers, our readers, we have made some design tweaks in this issue. Our goal is to provide you with a reader-friendly format with informative, supplemental visuals. We always appreciate your feedback.
