OXFORD, United Kingdom-Despite the fanfare surrounding Nokia’s launch this week of its first third-generation (3G) handset, many insiders remain adamant that there are significant technological issues to resolve before the devices can be shipped in any volume.
The well-known problem of dropped calls during the handover between second-generation (2G) and 3G networks remains an open issue, and the large color screens are said to consume enormous amounts of power leading to fears over battery life. However, while admitting that testing is still required, Nokia claimed that its new 6650 3G phone resolves many of the problems experienced by operators during their 3G trials.
Meanwhile, Ericsson claimed it has demonstrated seamless handover to executives of Telia and Hutchison-two of the first firms planning to offer 3G services-using Sony Ericsson handsets and a commercial platform developed by Ericsson mobile platforms. The company also stated that power consumption and battery capacity of the handsets demonstrated were equal to current cell phones.
Regardless of the potential technical issues, operators are faced with how to price 3G handsets. Early indications suggest Nokia’s cell phone would have a unit cost of about 800 euro (US$780), pricing it at a similar level to the first 3G models being supplied by NEC and Motorola to Hutchison 3G. However, it is believed that to attract paying users, operators will need to offer heavily subsidized units priced at or below 300 euro (US$293).
