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[sharechat] Telecom Outlook 2003


From: "winner69 ." <wwinner69@hotmail.com>
Date: Sat, 04 Jan 2003 20:43:58 +0000


Seems like low awareness of 3G in Australia, not too many intending taking 
it up and high handset costs. Maybe 3-4 years away yet

Thought you would be interested in this from the The Australian

3G hits consumer wall
Michael Sainsbury
SEPTEMBER 06, 2002

STORM clouds continue to gather over third-generation mobile phone 
technology following a report that Australians are not keen to upgrade to 
the service.

The report on 3G, by consultancy AT Kearney and the Cambridge Business 
School, is the fifth in a biannual survey of mobile users in Australia and 
around the world.

It found that while consumer recognition of 3G was at 55 per cent, only 25 
per cent of consumers were interested in moving to 3G from their present 
mobile service. Recognition in Australia was below the 61 per cent average 
across the 15 countries surveyed and global upgrade intention sat at 29 per 
cent, the report said.

The news will be cold comfort for Hutchison Telecommunications, which has 
already found itself the lone positive voice in the Australian 3G 
wilderness.

Despite paying almost $1 billion in spectrum fees, the big three Australian 
mobile players - Telstra, Optus and Vodafone - have all put plans to build 
expensive 3G networks on ice.

Hutchison is ploughing ahead with a network that will cost it at least $3 
billion and which it plans to launch early next year. The company remains 
upbeat in its predictions for the technology, although it has admitted that 
it expects initial take-up to be in niche markets.

AT Kearney principal Mark Higgins said: "The overall awareness is quite 
surprising but the low number intending take-up is not."

The survey also showed that SMS text messaging services were reaching 
saturation point in most territories, including Australia where the 
frequency of people using SMS fell by 2 per cent in the past six months.

Seventy per cent of Australians are convinced their SMS usage has plateaued, 
while 28 per cent can see increased usage ahead. Mr Higgins believes one of 
the key barriers to take-up of 3G will be the cost of the handsets.

These run at more than $1000 in a market which is seeing subsidies reduced 
and disappear.

He said that AT Kearney believes that mass take-up of 3G is at least three 
to four years away.

Mr Higgins predicted that when 3G does eventually fly it will be in the 
business market.

This is at odds with Hutchison's plans, which will see the Hong-King owned 
carrier target high-spending consumers first.

http://australianit.news.com.au/common/print/0,7208,5042413%5E15306%5E%5Enbv%5E,00.html




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