[kictanet] 3G lauch to spark battle in data services mart - sms across networks

Wed Nov 21 20:50:56 EAT 2007

As we race towards 3G  how is the old technology doing 

I notice for the last few weeks I cannot send SMS from Safaricom to Celtel

Is any body experiencing similar problem

Muriuki 

From: kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.k
e] On Behalf Of Wanjira, Alice Munyua
Sent: 15 November 2007 00:18
To: mureithi at summitstrategies.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: [kictanet] 3G lauch to spark battle in data services mart

3G lauch to spark battle in data services mart

Written by Kui Kinyanjui: Buisness Daily

3G enabled services will help facilitate various modern e-applications such
as remote medical diagnosis, remote education, as well as a variety of
business-to-business and business-to-government applications.

November 5, 2007: Kenya's telecoms scene is set for a major revolution
following the recent launch by service provider Safaricom of a new
technology.

The technology -- commonly known as 3G -- is expected to change the way
consumers use their phones besides bringing home the long held consumer
dream of accessing the Internet and television from their mobile phones.

The network differs from the current in its ability to deliver high quality
media-rich content -- including audio and video to a mobile phone handset.

It comes at a time when consumers are beginning to enjoy Telkom Wireless'
price cuts on similar offers through its CDMA platform -- setting the stage
for a battle for data shillings on the new breed of networks.

While Safaricom's may be the first commercial 3G service in Kenya, Telkom
maintains that its CDMA platform offers more of the same features and at a
more competitive price.

This potential by Telkom, which is Safaricom's parent company, poses a
looming threat to the mobile firm's aspirations to become the leader in the
provision of value-added services in the telecoms market.

With 3G enabled phones, consumers will be able to use the telephone to
access Internet services and transmit data. The mobile industry is counting
on the arrival of 3G to boost the sale of data enabled handsets such as
camera phones and to raise earnings through sale of high-end services such
as mobile e-mail access.

"3G enabled services will help facilitate various modern e-applications such
as remote medical diagnosis, remote education, as well as a variety of
business-to-business and business-to-government applications," said John
Waweru, the director-general of the Communications Commission of Kenya
(CCK).

Most Kenyan users will, however, be keen to use their phones to surf the
internet. Third generation networks allow for faster download speeds for web
pages, with prices dropping to less than Sh10 per megabyte downloaded.

Having paid $25 million, nearly half what it paid for the original mobile
operator licence, Safaricom is banking on the new service to drive revenue
growth from users accessing more data heavy applications.

Kenya's mobile phone sector is slated to grow by 87 per cent in the next
five years, exceeding the 72 per cent forecast for the African continent,
according to the GSM Association.

Safaricom's entry into this service platform came as a surprise to many
given that its CEO Michael Joseph indicated that the company would only
implement the service if the cost-benefits were commensurate with the
projected number of users.

Rival mobile telephone service provider Celtel is said to be weighing the
prospect of acquiring the pricey licence at this time. With the majority of
new mobile subscribers expected to come from the countryside, it remains to
be seen whether the projected levels of growth with translate into increased
demand for valued added services.

The race for rural subscribers has seen Safaricom commission a Sh500 million
switching centre targeting the rural folk in western Kenya. Industry
observers however say that Safaricom may have to wait a while to reap the
benefits of the latest network upgrade.

Japan's NTT DoCoMo launched the world's first official 3G system based on
WCDMA in 2001 but only managed to fully migrate its users to the service by
2006.

Two years after its launch in the UK, a 2005 survey by Harris Interactive
revealed that the uptake of the new service was sluggish. The poll indicated
that only nine per cent of the entire mobile phone market had upgraded to a
3G enabled mobile phone two years after the services launch, with 41 per
cent of 3G users using their powerful gadgets for just for talking and
texting.

The silver lining in the Harris poll was however that 3G users were twice as
likely to use their mobile phone for more than talking and texting.

"There is a danger in 3G being given away without effectively marketing 3G
services to consumers. Service providers are seeding the market with the
product and then relying on above and below the line marketing to generate
momentum for key 3G services," said Derek Eccleston, technology research
director at Harris Interactive.

"If 3G consumers do not begin to utilize the full range of 3G services, the
return on general operator investment in 3G may not be realized-and this can
have a negative impact on their profitability."

But as with any new service, Safaricom will roll out its latest network
addition with tremendous spend on advertising to highlight its offering. The
firm is said to be in talks to enter into data services partnerships with
interested companies.

Besides, phone companies are maneuvering to strengthen their offerings in
the high end gadget market, with some banking on the quick adoption rate of
to drive sales of the relatively more expensive devices.

Phone company LG recently launched YouTube enabled handsets in the local
market that will allow users to interface to access and upload video
content.

"This new service will connect people like never before.  For the first
time, LG customers will be able to film, upload and view videos on YouTube
using their mobile phone just as they would from their home computers," said
K.W. Kim, LG Middle East and Africa President. 

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