New generation of mobile phones will have little to do with talk

The countdown to the introduction of third generation cellular radio networks has begun

The countdown to the introduction of third generation cellular radio networks has begun. In Japan, the first third generation networks should be up and running by 2001. In Europe and the US, the aim is to launch in 2002.

There is still some disagreement over what the standards should look like. At the moment it looks as though the US may go one way, Europe and Japan another. But there is remarkably little disagreement between the various parties over what third generation will offer.

"Since we have enough spectrum allocated in existing hands to cope with voice alone until the year 2010, the whole emphasis about third generation is not about voice at all," notes Mr Ian Sugarbroad, vice-president responsible for business development at Nortel, the Canadian-owned telecoms equipment maker which employs 900 people in Galway.

"It will do voice. It will do voice cheaper. But the focus of this is coming down to mobile access to Internet-type networks."

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Today's second generation cellular radio networks send the bulk of their information over circuit-switched connections. This means that a connection is tied up by a user continuously from when the link is established to when it is cleared down - whether or not any information is being communicated.

Third generation will use packet connections, which work more like a computer local area network (Lan) or a taxi control radio system. The channel is open all of the time but is shared by many users. It is only tied up by a user at the precise moment when information is sent or received. This approach is particularly efficient for data communications.

"Third generation will be the intersection between voice and data," says Mr Bob Bond, vice-president responsible for regulatory affairs at San Diego-based Qualcomm. There will also be an all-round capacity and data communications speed increase, he adds. This is likely to have a great impact on mobile communications for the end user.

"It puts the Internet in your pocket," says Mr Ukko Lappalainen, head of marketing and business development of radio access systems at Finland's Nokia Telecommunications. "Data and image will become as familiar ways of communicating as voice is today. People will expect to be able to do anything on the move which they have grown used to being able to do at home or in office."

This is likely to include sending and checking emails or faxes, Internet browsing, group working or uploading or downloading computer files. These things can be done on today's second generation systems but with third generation they will be faster and richer.

"The difference between second generation and third generation is like radio and television or like the propeller and the jet engine," says Mr Hakan Djuphammar, director of Third Generation product strategy at Swedish telecoms equipment maker L M Ericsson.

"Third generation is going to be a lot about sending pictures and video clips. It's also about more of the same but faster - especially when it comes to data communications such as Internet browsing."

Third generation handsets could incorporate cameras, screens capable of supporting moving images and data input devices such as keyboards as well as the microphone, speaker and keypad of today's phones. Either that or they may go the other way, becoming simple communications gateway devices clipping to a belt or kept in a pocket and giving other pieces of equipment such as personal digital assistants or headsets access to the network.

As with any big change, there are some concerns. A big fear is that there could be a disruption to the market during the transition between second and third generation.

"We could end up with a stall in the market," says Mr Sanjay Jhawar, business manager, Smartphone and Data Products at US company Motorola's European Cellular Subscriber Division. "[With first and second generation systems] wireless data took a lot longer to get going than we expected and has really only started to take off in the last year. There is a danger of it all stalling again."

The key to third generation's success will be to find applications that make it essential for consumers. Third generation's video supporting capabilities have been widely touted as a potential "must have". But not everyone is so confident.

"I'm not sure video alone will make it a success. Video-phones and video-conferencing have been around for years and they are still only tiny niches," says Mr Neil Montefiore, chief executive of Singapore cellular operator MobileOne.

Ms Monica Horten, high-tech marketing specialist and author of a forthcoming report* on the convergence of the information industries and mobile communications, believes the real driver will be information.

"The key for the industry is to discover what people will want to receive via third generation," she says.

A new business called Infomedia will emerge, says Ms Horten. This will be the business of producing and distributing information via new media such as third generation. "Infomedia will form a significant proportion of traffic over third generation networks," she says. The keys to success will be the ability to deliver quality and people knowing who you are and trusting you, she says. Divide and Rule: Infomedia on Mobile Networks. A Strategic Analysis. Published by M.com, www.mcom.mcmail.com.