Phones - brief history and background market information.

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1. Introduction

  1. 3G Phones – brief history and background market information

‘3G’ Stands for ‘Third generation’ indicating the stage in the technological evolution of the mobile handset. Basically, a 3G device provides a greater range of functionality to a handset. Up until recently mobile phones have been capable of limited voice and text communications. 3G phones promise allow the simultaneous transfer of speech data, text, picture, audio and video. A 3G device has the potential to become a substitute for the palm top organiser, phone, and laptop all in one.  

3G devices will provide the following innovations:

  • High speed mobile internet access
  • Multimedia entertainment features- movies, music, etc.
  • Video conferencing
  • Mobile shopping (m-commerce). Browse available items and pay using electronic cash.
  • Travel/ Weather information GPS capabilities.

 

Third Generation mobile in the shape of UMTS (Universal Mobile Telecommunications System) with WCDMA (Wideband Code Division Multiple Access) is already a reality. The first European networks are as we speak going live and an increasing number of commercial launches from companies such as ‘3’ are planned for 2003- 2004, 3G phones offer users and consumers an evolution in mobile communication technology, adding video and other high speed services. Almost 120 licences have already been awarded worldwide the UK gaining five of these at a total cost of £40 billion.

In terms of capital expenditure as well as operational cost 3G should theoretically offer UK operators both existing and new a more economical base from which the projected growth of the voice and data service industries can be handled.  To any one of the 1.2 billion customers worldwide already utilising 2 and 2.5G services 3G offers faster and more comprehensive access to the latest data services.

Within the UK Hutchinson 3G have just launched their UMTS based service under the name of ‘3’. Hutchinson claim that their service will cover around 40% of the UK population. The first 3G phones in Britain will be the e606 and e808 from NEC and the A830 from Motorola.

However despite the obvious advantages of the 3G product is there a demand for it in the current UK market? Are the investment costs to extravagant? And with the ever changing face of communications technology is it really worth introducing a product that some cynics would deem only a ‘cosmetic and unnecessary’ upgrade of the existing technology available?

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  1. SWOT analysis

Strengths:

The main strengths of UMTS capable handsets it their flexibility.  Able to provide a comprehensive range of multimedia data services, 3G phones allow a user more flexibility and information than any other handset product available. Also due to international co-operation the handsets are designed to operate throughout Europe the Middle-east and the Americas. The Data services themselves are also great strengths of the product in that they allow the simultaneous transfer of text, video and audio information to a hand set or between two handsets.

Weaknesses:

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