(keitai-l) Re: Today DoCoMo's pessimism

From: Gustaf Rosell <gustaf_at_xpedio.com>
Date: 11/24/00
Message-Id: <5.0.0.25.2.20001124200747.0596b008@dogfood.xpedio.com>
At 17:05 2000-11-24 +0100, you wrote:
>Hi all,
>
>Here is an interview available on Financial Times web site.
>What do you think ?

Quite true. I am happy that they said it also, and before they started the 
service. With 3G we design for 28,8 kbps during peak hours, which is not 
that much for a full Kurosawa movie. But until now, the marketing 
departments of both operators and infrastructure gigants have overhyped 
just about everything.

3G is an extremely expensive, old and badly designed technology for 
wireless IP based networks. But I guess we will have to live with that 
until 2007, if alternatives like WLAN is not deployed in larger scale.

On the other hand, the killer app for DoCoMo's 3G is already clear: voice. 
Their current voice service must be the worst in the world in any digital 
mobile network. So they really need 3G, which has a really good voice quality.

/g


>"DoCoMo sounds alarm on 3G
>By Dan Roberts and Michiyo Nakamoto in Toyko
>Published: November 22 2000 21:39GMT | Last Updated: November 23 2000
>17:45GMT
>
>
>Third-generation mobile networks may not provide the revenue growth many
>European telecoms companies are counting on, according to NTT DoCoMo, the
>Japanese phone operator that pioneered mobile internet access.
>
>Keiichi Enoki, who runs DoCoMo's successful i-mode internet service, says
>operators will struggle to justify the more than E100bn ($85bn) they have
>spent on 3G licences in Europe.
>
>"I don't think the business model will fundamentally change from 2G to 3G.
>The essence of the cellular phone business will be the same," said Mr Enoki
>in an interview. DoCoMo, which is testing 3G technology, is finding that it
>is unsuitable for carrying large video or sound clips, one of the services
>that could provide new revenue streams for mobile operators.
>
>The new technology provides faster data speeds than 2G, allowing colour
>video and high-quality music to be sent to mobile handsets. Sustained bursts
>of multimedia data consume large amounts of the radio spectrum and DoCoMo
>says it will be too costly to download large files, such as pop videos, to
>handsets.
>
>Mr Enoki said: "The conclusion is that we will perhaps offer short video
>clips of 10 to 15 seconds and previews of music that people can purchase to
>download at home through their PCs or TVs."
>
>Mr Enoki said operators could best hope to increase revenue by charging
>commission on these transactions as well as from advertising.
>
>Japan will be the first country to offer 3G services next year. Its
>experience contrasts with the approach of operators such as Vodafone in the
>UK, which plans to download songs over mobile networks. DoCoMo says phones
>will be used to order multimedia content, which will be delivered over
>other, more cost-effective, telecoms networks.
>
>DoCoMo's pessimism about the potential of 3G technology could damage
>confidence in Europe just as investors are questioning the huge levels of
>debt generated by set-up costs."
>
>
>
>
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Received on Fri Nov 24 21:11:02 2000