GSMA extends low cost mobile campaign to 3G — MobileMonday Global: Industry News

^{620 million subscribers entice new designs} GSMA extends low cost mobile campaign to 3G

22 Oct 2006 at 15:18 GMT Timo Poropudas

GSM Association has lined up twelve leading mobile operators from six continents for its new low cost 3G-handset campaign. During last couple of years GSMA has successfully driven down the cost on GSM phones in developing markets.

‘3G for All’ campaign aims to make third-generation mobile services accessible to a much wider user base.

In the first phase of the campaign Cingular Wireless, Globe Telecom, Hutchison 3G, KTF, MTN, Orange, Smart, Telecom Italia, Telefonica, Telenor, T-Mobile and Vodafone will select a flagship 3G handset designed to appeal to the mass-market.

The GSMA, the global trade association for mobile operators, has invited handset makers to submit proposals for a 3G mobile phone that can support advanced services, such as high-speed Internet browsing, mobile TV and instant messaging, while costing significantly less than a low-end 3G handset today.

The GSMA believes the endorsement of 12 of the world’s leading mobile operators, which collectively serve 620 million subscribers, will help the winning handset vendor achieve the economies of scale in manufacturing, logistics and marketing, necessary to make 3G phones much more affordable. Upon final selection, the ‘3G for All’ handset will be made available to all GSMA operators.

“We want 3G handsets, offering access to a rich suite of services, to become the default choice for people buying a new phone,” said Craig Ehrlich, chairman of the GSMA and a board member of Hutchison Mobile Communications, which is sponsoring the project.

“The size and geographic breadth of the companies steering this campaign demonstrates the importance the global operator community attaches to making 3G a mass-market phenomena.”

Over the next few months, the 12 operators will evaluate and score the proposals submitted by handset vendors against the following criteria - functionality, usability, logistics, market acceptance, target price, service and support, strategic commitment and form factor.

The handset with the highest score will be endorsed as the official ‘3G for All’ phone by the GSMA. The winning handset will be announced at the 3GSM World Congress in Barcelona in February 2007. The winning manufacturer must negotiate the orders individually with each operator.

With GSM phones the big winner appeared to Motorola, which won large supply contracts for cheap phones. However, it is not know how much profit Motorola was able generate from the mass contracts.