3G roll-outs show lack of Eastern promise

NEWS Japan Telecom's mobile subsidiary, J-Phone, will now roll-out 3G networks in Tokyo in June 2002, and central and Western Japan in October of that year. Rival NTT DoCoMo, Japan's largest mobile network operator, plans to launch mobile networks in May 2001. The news comes as a further blow to the troubled telco sector's hopes for swift financial returns from 3G investments. After severe delays to earlier high-speed data projects such as GPRS, many feel that the schedules for 3G roll-outs are impossibly optimistic. Problems with handset availability and infrastructure deployment may well hold up the development of full, commercial 3G networks for a year or more. BT offshoot Manx Telecom is due to launch a 3G network on the Isle of Man by May, racing NTT DoCoMo to be the first 3G network in the world. BT owns a 20 per cent stake in Japan Telecom, and has previously commented that the experience from the Japanese roll-out will be important in guiding 3G roll-outs in other places. However, a spokesman denied this announcement will create a domino effect, holding up BT's other 3G projects around the world. "There will be no concomitant delays in other countries," he said. He also confirmed that Manx Telecom is sticking to its May launch target date. Vodafone has a 15 per cent stake in Japan Telecom, with a conditional agreement to buy another 10 per cent from AT&T. Elsewhere in Europe, Spain has the toughest schedule for 3G roll-outs. The Spanish licences require holders to have commercial 3G mobile networks running by August 2001 in all cities of more than 250,000 people. Telefonica Moviles has publicly reaffirmed its commitment to this schedule. Other 3G licence winners Airtel, Amena and Xfera could not be reached for comment.