Carriers plan high-speed 3G for summer

Carriers plan high-speed 3G for summer


T-Mobile is set to roll out 'Super 3G' HSDPA services in the autumn this year

Mobile carrier T-Mobile has announced that its “Super 3G”, High-Speed Download Packet Access (HSDPA) service will be rolled out in the UK in the third quarter of this year. Separately, Vodafone said its own HSDPA rollout is on track, and that it will launch a service in mid-2006.

HSDPA promises speeds between four and 10 times faster than current 3G services once supporting infrastructure is in place.

However, for HSDPA to succeed, carriers may have to lower their prices and do more to promote the advantages of fast mobile access, according to analyst firm Informa Telecoms & Media.

Informa’s research suggests the average price for HSDPA data bundles of between 1GB and 2GB is currently between €50 (£34) and €70 (£48) per month.

“What is clear is that mobile operators will leverage HSDPA’s one key advantage [of mobility compared with] both fixed DSL and Wi-Fi to justify pricing the service at a premium,” commented Devine Kofiloto, principal analyst at Informa.

Other recent research suggests low uptake of 3G services is partly due to the complexity of the pricing as well as the cost, a fact acknowledged by vendors at the recent 3GSM congress.

Kofiloto said 3G providers could learn from the experience of fixed broadband suppliers – who greatly increased custom when they dropped prices and offered flat-rate tariffs. He added that many carriers seem to be resisting this model, though volume limits have been raised. “They have been increased significantly and a consensus on a ‘fair use’ limit appears to have settled between 1GB and 2GB,” he said.