O2 readies 'super-fast' 3G

20-10-2005

by Charlie Taylor

O2 has announced that it has launched Europe's first commercial 'super-fast' third generation (3G) mobile data network on the Isle of Man.

The mobile operator has teamed up with Manx Telecom and Lucent Technologies to launch the HSDPA (High-Speed Downlink Packet Access) network, which is reputed to be three times faster than today's commercial 3G UMTS networks.

Also commonly referred to as 3.5G, the HSDPA network will initially be available to Manx Telecom's corporate customers, enabling them to access the internet on the move at speeds similar to fixed-line broadband networks.

"We have market-leading experience in the deployment of mobile data services and 3G technology," said Dave Williams, group chief technology officer, O2. "Now, with the first deployment in Europe of HSDPA, the launch of i-mode in the UK and Ireland, coupled with our mobile TV trial in Oxford, O2 will gain invaluable insights into how to extend our multimedia services in order to enhance people's lives and develop applications that they are willing to pay for."

The capability of current-generation handsets means that the Lucent built HSDPA-enabled network will initially offers data speeds of 1.3 Mbps, meaning that users will be able to download a 5Mbyte video clip in less than 30 seconds. However, it can provide maximum peak data speeds of up to 14.4 Mbps.

O2 has been trialling next generation mobile services on The Isle of Man since 2001 when it launched its first 3G network and many analysts believe that the launch of the new service will be followed by a wider launch in Europe over the next few years.

Although take-up of 3G services by consumers has been relatively slow, experts believe that 3.5G services are likely to have much more appeal.

"There is evidence to suggest that consumers will be interested in 3.5G services," Neil Mawston, senior analyst with Strategy Analytics told ElectricNews.Net. "The fact that it offers data speeds that are comparable to fixed-broadband means that consumers are more likely to want it. 3.5G will also appeal to those who are interested in music and gaming and it will also lead to new applications such as Mobile TV."

"Moreover, at the enterprise level, 3G PC card usage has been relatively successful so it's highly possible that 3.5G will appeal to corporate users," Mawston commented.

Nonetheless, Mawston warns that while the launch of O2's new network, together with recent trials undertaken by T-Mobile in Germany, indicates that HSDPA is coming to Europe, it may be some time before it is widely available. "New wireless technology is always late coming to market and I believe that this will also be the case with HSDPA as well," he said.

Strategy Analytics predicts that HSDPA devices will account for just 2 percent of global 3G handset sales and less than 1 percent of total mobile phone sales in 2006. However, by 2010, such devices will account for 28 percent of total handset sales.