The cost of providing wide spread network availability, is going to be enormous which will reflect in the cost of use and in turn in low volume of users.
Business volume will be generated only if there is large user base for the high revenue earning products. The bulk of the user community will need 3G for high data rate products such as real time streaming of video games, Digital movies and real time Video+ voice chatting and sending and receiving videos etc.
The users interest can be converted to business volume only if the products are given at affordable cost which is not going to be the case in these current W-CDMA based 3G products.
Cooperates and business community will be interested in Stocks and shares, and short video chats while on the move. Veing of Stocks & Shares and on line trading etc., do not require very high data rate. Most of the products the corporate and business community interested in their mobile terminal would be comparatively low value products and the such customer volume also will be limited.
With the high investment in W-CDMA 3G systems and Networks, added to it cost of 3G spectrum, it would be difficult to make the 3G business viable.
The fact is that with increased data speeds the distinguishing factors between the Fixed and Mobile networks are vanishing except for the type of user device and the end link connectivity.
Most of these features and products could be made available at much cheaper rates via the landline links using Optical Fiber /PON to Home Networks and WiFi and Wimax for the end links for mobility in the premises. In the land line part, data links using MPLS technology is evolving as most viable technology for Fixed Line high speed Internet, 3G in its present form will find big competition in the days to come.
Author: Abraham Paul; MD/CEO FCOMNET U.A.E & FUTURE GROUPS, India.
Ex: V.P. Technical Sales, SIEMENS SPCNL India / Director SIEMENS ICN RHQ , U.A.E, G.M. BPL Mobile Networks, India, Telecom Engg. Service DOT, India.