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lunes, 31 de mayo de 2010

What is a UMTS network? Estimated Cost

An operator needs about US$2.5B to build a 5,000 base station UMTS network and about the same amount to run the organisation and attract customers to make it profitable. On top of this the operator has to pay for the license and financing. This means that an operator has to come up with an innovative business case to get the funding organised and the network on air. Even much talked about vendor financing does not come cheaply, as this will affect stock prices and future commitments. New alliances and cost sharing arrangements have been created to make it all possible.

An operator needs about US$2.5B to build a 5,000 base station UMTS network and about the same amount to run the organisation and attract customers to make it profitable. On top of this the operator has to pay for the license and financing. This means that an operator has to come up with an innovative business case to get the funding organised and the network on air. Even much talked about vendor financing does not come cheaply, as this will affect stock prices and future commitments. New alliances and cost sharing arrangements have been created to make it all possible.

Applications are at the heart of the next generation network. It's what it's all about! Faster data rates and mobiles with larger color screens will enable new services to be created giving a new cyber-air-space. Initially it is a combination of the existing Internet and a car navigation system. Soon there will be audio, improved still images, moving images, multimedia mailing and video conference. Then any place turns into a virtual home environment with software agents, remote LAN access points and web browsing opportunities. Home automation, man-machine interaction technologies, mobile asset management, person locating applications and games that make the most of mobility will also be there. Old Internet hit products like email, live events, gaming, gambling, adult content, clubs and chat rooms will also be implemented. If operators can only get the micro-billing right, then business will take off.

StocksNew players will emerge from different backgrounds to create new products and business opportunities. Service providers, content providers, value-added applications providers and application developers are all competing for end customer dollars. They are trying to create new user segments to generate a variety of revenue sources. The race for the future earnings has already started. Take a look how the old players are doing at the moment. Here is a selection of stock prices of main 3G players world wide.

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