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Third Generation Wireless: Business Models and Strategies
Datacomm Research Company, Jan 2001, Pages: 135
3G Wireless Will Completely Redefine Telecom - Reshaping Phone Calls and Phone Companies
Third generation wireless is alive and well, and will accomplish what local telcos tried for decades but failed to do: provide flexible, high-speed communications to ordinary users at affordable prices. That is one of the conclusions of the new 135-page study, Third Generation Wireless: Business Models and Strategies.
'Traditional telecom business models will be replaced by new models emphasizing enhanced services and content over basic access and transport,' said Andrew McLachlan, Director of Economic Logic, who identified and analyzed the 26 most significant 3G wireless business models. 'Handsets that can upload pictures, download music, and access databases will supplant voice-centric mobile phones,' he added.
This report shows how 3G wireless services will reach 25 million subscribers by the end of 2002 despite the global recession,It also explains how 3G wireless will enable new services leveraging network-based storage, digital photography, and voice portals.
Third Generation Wireless: Business Models and Strategies includes an Executive Summary with forecasts for 3G wireless subscriber growth in Asia, Europe, North America, and the Rest of the World. The section on Complementary Technologies discusses how 3G will spur use of public wireless LANs, wireless virtual private networks, mobile multimedia messaging, and other technologies. The Business Models section analyzes 26 carrier business models -- from vertical hub to mobile network virtual operator. Additional sections discuss the strategies of leading operators and equipment vendors. The report is rich in visuals, with more than 50 tables and figures.
Additional conclusions found in Third Generation Wireless: Business Models and Strategies:
1. Commercial 3G services are now available in Korea and Japan. Though neither meets all Imt-2000 requirements, both are based on the next-generation technology paradigm (Cdma), offer higher speeds than 2G networks, and can be upgraded to meet or exceed all 3G requirements.
2. 3G operators will be full-service, multimedia communications providers. They must choose between business models promising maximum profit, minimum risk, quick revenue, and long-term control of the customer base. The most successful models will be integrated (combining elements of multiple, basic models) and fluid.
3. Technically, W-cdma and Cdma2000 are roughly comparable. While the vast majority of mobile phone operators are leaning towards W-cdma, Cdma2000 enjoys significant cost and time-to-market advantages. Gprs will spread rapidly, but can't compete with 3G's performance and efficiency.
4. 3G wireless operators will establish new relationships between local merchants and subscribers. Operators that figure out how best to link patients to caregivers, for example, will have a sustainable business model that can be replicated in one geographical area after another.
5. Asian handset manufacturers are likely to become dominant as users switch to 3G. Asian firms have demonstrated the ability to produce a steady stream of new models, and will benefit from the emphasis on color displays, small size, and low cost.
6. Mobile virtual network operators could end up the big winners because they are least tied to the telephone industry's infrastructure and culture. Successful operators will focus on selling the right content and services, cutting the right deals with content and service providers, and creating the
right packaging.
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