The business case for 3G

3G offers anytime, anywhere connection, and it is this essence of "always-on" that confirms the business case for 3G.

The uptake of mobile phone and PC usage in developed countries show that technologically advanced products do have a mass-market appeal. Today, people are using wireless voice services as part of their daily lives, and could probably be easily persuaded to increase their usage in other areas such as entertainment.

Also, France`s recent call to open the market to more 3G operators confirms the global interest in this technology.

Until now, there has been some technical apprehension towards the adoption of 3G technologies. This was due to the overall slowdown in the telecommunications sector, the high costs of 3G licensing fees, as well as the slow uptake of WAP, GPRS etc, (due to lack of applications).

But the key to 3G is about delivering the services that customers want - making their lives more flexible and time-efficient, as well as ensuring that the technology is capable of complementing their lifestyles.

Part of this would involve the transition of some existing services onto a wireless platform providing a more complete, single-access communications environment.

Looking at corporate users - one of the early targets for 3G devices - they are not likely to look for anything too unconventional - the business market is still very much focused on PCs and Palms and the mobile phone.

From a local perspective, we are still a long way away from readily adopting 3G technologies. Many factors contribute to this.

First of all, SA has a relatively small economically active population - and a very small percentage of contract mobile phone and Internet users. We are faced with a community that still lack basic communication tools such as telephones.

Also, the South African Telecommunications regulator has not really made any indication of opening up the market for 3G licensing at this time.

Other factors influences local adoption is cost and availability - cost in terms of licensing and infrastructure; availability in terms of applications and mobile handsets. Operators here must consider affordability and, ultimately, return on investment.