Year: <span>2003</span>
Year: 2003

Year: 2003

The Challenges -and Potential- of 3G

Currently, increased competition and stagnating economies have helped drive down end-user prices and voice service has become a commodity. While call minutes are increasing, ARPU is failing to keep pace with growing costs and shrinking margins. The 3G business case says that every incremental dollar spent on the network must produce a return on investment almost overnight. In the Asia-Pacific, Pyramid Research says 3G mobile subscribers will jump from 21 million in 2002 to 162 million in 2008.

2004 to be the Year of 3G in Japan

A quarter of all mobile-phone users in Japan are expected to switch to a 3G service by March 2005. Analysts say DoCoMo, Japan’s largest wireless carrier, could add a million customers a month in 2004, once improved phones are released. Meanwhile, DoCoMo’s rivals, KDDI and Vodafone KK, are also expanding, leading executives to predict that 2004 will be the year of 3G in Japan. “If 3G is validated here, a lot of carriers and suppliers will point to Japan as a success,” said Mark Berman, an analyst at Credit Suisse First Boston in Tokyo. “This could touch off a 3G rally” worldwide.

Japan to Ban Cell Phone Use While Driving

According to recent reports here, Japan’s National Police Agency is planning to carry out a major revision of Japan’s Road Traffic Law next year that will toughen restrictions on mobile phone use while driving. As the law now stands, drivers in Japan are already prohibited from using mobile phones when behind the wheel, but police are only allowed to penalize those who are a threat to others. According to Kyodo news, the NPA wants to fine drivers up to 50,000 yen ($465/ 375 euro) if they use their phones to talk or send e-mail while driving… even if they pose no danger to other vehicles or people.

Korea Sets Lower Rates for 3G

From Monday, Seoulites can enjoy W-CDMA services at a similar rate to the current 2G phones. In an effort to build awareness of 3G phones, the private and public sectors are taking part in various incentives. SK Telecom’s subscription fee is 50,000 won, and it will collect 20 won for 10-second voice calls in addition to 14,000 won in basic monthly charges. SK will offer video call services for free in March, but will charge a monthly fee to be fixed later.

NEC Makes China an R&D Base for 3G

NEC Corp. is stepping up design and development of advanced cellular telephones with the formation of a joint venture with a Chinese technology company. The Tokyo-based company will take a 30 percent stake in Step Technologies (Beijing) Co. Ltd. with China’s TechFaith Holding Ltd. owning the remaining 70 percent. The company has been capitalized at 50 million renminbi ($6 million).