3G Communications System Essay Example | Topics and Well Written Essays - 1000 words

3G Communications System - Essay Example EV-DO, WCDMA, HSDPA, GPRS and EDGE are the major technologies in use, allthough GPRS and EDGE are often called 2.5G because of their lower speeds.3G systems were introduced in Europe in March 2003 and later moved to the UK and Italian markets. According to a study by strategy analytics published on their website, by the end of 2006, approximately 167 million people worldwide will be customers of 3G networks. This implies that there is vast potential for growth. With the invention of the 3G network, users have been provided with an opportunity to upgrade their existing services and avail of superior services and high transfers in voice and data.The 3G communications system was developed in the Asian region with Japan in the forefront of innovation. The Japanese introduced this system in their country and is vey popular. The upgrading of systems began in 1999 and is expected to continue till 2010. As of reports published in June 2007, 6.7 per cent of the total worldwide users are 3G us ers.Predominant countries that have a large share among their users are Japan and Korea. Fifty per cent of the users in these countries subscribers in Italy are 3G users and UK, Austria and Singapore's 3G market base is made up of 20 per cent of it's consumers.The objective of this research is to elucidate the problems and opportunities in the 3G Global market. Upon identification of these problems and opportunities, we can suggest necessary or adequate measures to solve the problems. The data involved in the research will be secondary, collected from publications and papers of various independent market research agencies. After studying the data and interpretations, the research will bring out answers on what can be done to solve the problems and make avail of the opportunities. Opportunities and threats to the 3G market. The 3G service has gone through various stages of migration passing through various stages of service integration and unification. These stages have revealed various opportunities and threats faced by the 3G market. Threats faced by the 3G operators: 1. Lack of robust service strategies - Early 3G launches lack robust service strategies, diverse approaches had been applied but failed to capture the attention of the consumers due to the arising problems. 2. High Cost of Licenses - Governments around the world charged expensive license fees to 3G operators. Not only were the fees exhorbitant, but also subject to Government bids and auctions. 3. High Installation and Operating Costs - The technology costs for running a 3G network is very high. 3G operates on a different frequency from 2G and mobile operators must build new networks for 3G. This setup involves heavy capital expenditure and thus overheads of operating a 3G system are very high. 4. Lack of Coverage in many areas - 3G being a new service is still in the developmental stages, therefore there is a lack of coverage in many areas. 5. Burden on the Customer - 3G involves a higher cost of operating and maintenance, the handsets are relatively expensive to purchase thereby burdening the consumer and affecting sales ultimately. This is the main reason that led to the shutdown of Vodafone KK (the Japanese subsidiary of Vodafone). Consumers in Japan were used to using smaller handsets and the consumers in Europe demanded bigger handsets to meet their requirements. So Vodafone started to market bigger handsets to