By Jerry Liao
Like any hot tickets in concerts, sport events, and others, telecommunication providers in the Philippines are scrambling to get the hottest ticket in the mobile world - a 3G license. Companies are paying millions of pesos (bonds) just to be able to get that illusive license to offer 3G services in the country not to mention their investments in setting up the 3G infrastructure.
After the first hurdle of getting the license, the next question is: Are we ready for 3G?
To date, Globe Telecom, Smart Communications, Digital Telecommunications (Digitel) and Connectivity Unlimited Resources Enterprises Inc. (Cure) are the only companies given the National Telecommunication Commission (NTC) license to operate 3G in the Philippines. The other companies still vying for license are Multimedia Telephony Inc. Next Mobile, AZ Telecommunications, Pacific Wireless and Bayantel. The NTC rules on 3G have allocated the following frequencies for 3G use: 825-845 Mhz, 870-890 MHz, 1880-1900MHz, 1920-1980MHz, 2110-2170MHz, and 2010-2025 MHz.
3G presents a great opportunity to deliver fun, personal, entertainment and business experience to mobile phone users. But whether users will jump to 3G is still a big question. Providers need to address the other challenges and obstacles posed by 3G to be able to achieve true convergence and product/service offering success.
Content The very challenge of 3G is to provide reliable communication backed by cool applications. For 3G to really take off in the Philippines, content must be available on all platforms: computers, mobile phones, PDA's and digital televisions. There must be a compelling reason for users to make the big switch and content is one of them. Telecom providers need to put in user value, and market this grand convergence of technologies: telephony, computers and Internet. Users would want their devices to communicate intelligently and seamlessly with 3G and this has to be delivered or the switch will not happen as desired.
3G is all about speed and integration - integrating content from the Internet and other content sources. Early adopters of 3G will expect availability to all these information, access to all available information all over the world. Given this premise, telecom providers should not try to aggregate content to themselves as it will be limiting. Unlike the current setup where most of the content (logos, ringtones, games) resides on the telecom provider servers and selected content providers, content in the 3G world should be open and accessible.
Alliance Partnering will be a key factor for the success of 3G in the country. For one, 3G allows users to watch their favorite television show or video material in any 3G-enabled device, thus telecom providers should partner with TV networks and other video content providers.
Another is in the area of business, 3G enables developers to deliver new and exciting applications like: mobile banking, mobile investing, mobile epayments, mobile shopping, mobile ticketing, mobile passports, mobile record keeping, mobile dispatching, mobile transport management, , mobile sales force management and a lot more. Telecom providers should equip companies to deliver 3G applications and help them deliver it as seamless as possible.
Controlling content should not be even attempted n the 3G world, and telecom providers should understand this new setup. Otherwise, 3G will fail.
Technology Telecom providers needs to address the issue of standards. Inter-operability between the different devices, applications need to work in an intuitive way so that it can provide users the right information at the right time in the right format based on what they want, what they are doing and where they are.
Open standards should be adopted rather than the old traditional proprietary system. And the most important thing: Network Interoperability.
Awareness Users would want their devices to be able to "understand" which device is being used for what requirement. With the availability of other access networks like Wi-Fi, Bluetooth, HSDPA and Wi-Max, telecom providers need to identify the strength of 3G - where it should be used, how it should be used and when should it be used. The transition of devices and usage should be as seamless as possible - at the touch of a button at the most.
Economics The economics of making content work in a way that benefits both content providers and operators is a critical part of the convergence question that must be answered. Delivering rich media content requires a new billing framework and it has to be in place even before the service is offered. New parameters for calculating charges like the number of packets, uploading or downloading of data, quality of service, location and content should be carefully thought.
Given the new business opportunities brought about by 3G, a new business model is also needed. Service providers will have to modify or replace existing, voice-centric billing infrastructures with a new system creating a conducive and a win-win scenario for all the players.
Policies From a government perspective, 3G offers a major opportunity to get people further online through not only the existing aims of Internet access at home, at work and in the community but also through Internet access on the move. Policy makers need to encourage partnerships between public and private sectors and development of "joined up applications". Advertising best practice needs to achieve a similar balance. Use of location-based information needs a balancing of rights of customers' data protection and service providers' ability to use it and share data.
And of course, it would be great if government can use 3G to deliver government services and make it available electronically to citizens and business. Government should also determine how 3G could help them deliver completely new, more sophisticated and targeted services in relation to e-governance.
Pricing and Services The pricing for handset, connectivity, service should also be considered. While all these requires new investment, user's purchasing power must come first. Affordability is vital for 3G to be successful, but it should not affect operational and functional performance or impede the delivery of quality service to users.
A real time billing inquiry system and a self-service customer care module will also be ideal. This can be delivered via the web. Not only will this promote transparency, it will also help minimize the time to market for new products.
Conclusion Like any other new technology, acceptance will be difficult. But if the things I just mentioned can be achieved and are in place, users will more likely to try the new services and eventually realize that having this new innovation will help them become more productive and will help enrich their lives - both in the not so serious aspects and the serious aspects of life.
So let me ask again: Are we ready for 3G? Maybe. If the price is affordable and the 3G content are available.
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