Nokia unsurprised by 3G handset complaints
Published: 18 Jun 2003 09:30 BST
The gripes about third-generation handsets in Europe are to be expected and are part of problems associated with any new technology, says a senior Nokia executive.
At the recently-concluded UMTS (Universal Mobile Telecommunications System) Congress in Holland, a group of European mobile operators complained about the quality of third-generation handsets and how they were unfit for the mass market.
Complaints included how 3G devices were too bulky, have a short battery life, were expensive and fall short on applications. In particular, Nokia's first 3G phone -- the 6550 -- was singled out for criticism because of software hiccups.
"It is not surprising that they're complaining," said Nigel Rundstrom, Nokia Asia-Pacific's vice president of product management and business development." There are always teething problems associated with new technologies. The first GSM handsets weigh almost 475 grams but they got significantly better in 12 to 18 months."
"We don't expect the 6550 to make the mass market for 3G," he stressed. "In Japan it is the same thing. Their first 3G phones were also problematic."
Rundstrom believes "hygiene factors" such as form factor and functionality will need to be addressed before 3G handsets can take off among consumers, and that this will be a gradual process and not the quick fix to increased data revenues as some operators might have hoped.
"People are nervous," he told CNET Asia. "The 2G spectrum is free but in Europe they've spent billions on 3G licenses so they have a vested interest in how fast they want payback."
"As 3G is one of the most intricate undertakings in the history of the mobile communications industry, it might take between 12 to 24 months for handset manufacturers to overcome these problems," said Natasha Tan, IDC Asia-Pacific's research manager for wireless services and telecom vertical industry research.
Echoing this cautious sentiment, Nokia now expects sales of its 3G cellular phones to pick up only in the second half of next year. "A transition period will be the next 12 months," Matti Alahuhta, Nokia's president for mobile phones, said in a Reuters report.
"The high volumes will be in the second half of next year," he was quoted as saying.
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