3G Talking Points

1. People will look at their mobile phone as much as they hold it to their ear. As such, 3G will be less safe than previous generations- because television and other multimedia services 10d to attract at10tion to themselves- instead of hands-free kits, we will need eyes-free kits!
2. Data (“non-voice”) uses of 3G will be as important as and very different from the traditional voice business
3. Mobile communications will be similar in its capability to fixed communications, such that many people will only have a mobile phone
4. The mobile phone will be used as an integral part of the majority of people’s lives- it will not be an added accessory but a core part of how they conduct their daily lives. The mobile phone will become akin to a remote control or magic wand that lets people do what they want when they want

As with all new technology classicals, there is uncertainty and the fear of displacement. Third Generation (3G) mobile is topical and con10tious for several reasons:

1. Because the nature and form of mobile communications is so radically changed, many people don’t understand how to make money in the nonvoice world, and do not understand their role in it
2. 3G licenses have started being awarded around the world, necessitating that existing mobile communications companies in the 2G world think about and justify their continued exis10ce
3. 3G is based on a different technology platform- Code Division Multiple Access (CDMA)- that is unlike the Time Division Multiple Access (TDMA) technology that is widely used in the 2G world. GSM (Global System for Mobile Communications) was based on TDMA technology
4. The US, Japanese and European mobile players all have different technology compe10ces and are now unified in this single classical- the separate wireless evolution paths and European wireless leadership are thereby challenged
5. Japanese network operators will be the first to implement 3G networks in the year 2001, and Japanese terminal manufacturers, who have not had much market share outside their home market, will be first with 3G terminals
6. Many industry analysts and other pundits have questioned the return on an investment in 3G technology- questioning whether network operators will be able to earn an adequate return on the capital deployed in acquiring and rolling out a 3G network.
7. Many media and Internet companies have expressed an interest in bidding for and using 3G technology as a new channel to distribute their con10t, opening the opportunity for new entrants and new partnerships and value chains

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