3G, or not 3G? That is the $100bn question

Mobile phone operators may struggle to justify the billions pumped into 3G licence auctions, a mobile internet expert has warned.

By Chris Holbrook, 23 November 2000 11:05

NEWS In a Financial Times article, Keiichi Enoki, director of NTT DoCoMo's iMode arm, said European telecom operators would struggle to justify the $100bn spent on securing licences for Europe's 3G airwaves. 3G technology is proving unsuitable for carrying large data packets, the main revenue streams associated with the new mobiles, according to Enoki's testing team at iMode. With 3G networks expected to be up and running across Europe by early 2002, the market reflected Enoki's pessimism, with Dutch telecom operator KPN's shares falling 2.8 per cent on the news. However, as companies such as BT head towards a £30bn 3G debt, Siemens AG have announced a $422.3m deal to supply the technology to its German strategic partner, Vodafones Mannesmann Mobilfunk.

Post your comment

In order to post a comment you need to be registered and logged in.

Log in or create your silicon.com account below

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy.

Questions about membership? Find the answers in the Membership FAQ