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#TBT: MMS takes off in Europe; DT ponders T-Mobile division sale; NII files for Chapter 11 … this week in 2002

Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!

International image data transmission via CDMA

TOKYO—KDDI, the second-largest operator in Japan, announced that in cooperation with SK Telecom in Korea it launched an image data transmission service between users of the two operators. It is the first international image data transmission service, according to KDDI. Users of the service, called “multimedia e-mail service,” can send and receive photos that mobile users take with mobile handsets equipped with tiny cameras. The service is available between CDMA 1x handsets. Both carriers launched the service targeting the World Cup Games to begin on 31 May simultaneously in Japan and Korea. KDDI launched its 1x service in April. SK Telecom launched its 1x service in September 2000, and in September 2001 it launched an e-mail service through which users can send and receive images. … Read more

Deutsche Telekom ponders sale of T-Mobile division

DUBLIN, Ireland—The latest shareholder criticism of the performance of its parent company Deutsche Telekom has made it more likely that T-Mobile will finally be sold within the next 12 months to help reduce debts running to tens of billions of Euro, even though it is one of the best performing parts of the group. Under-fire Deutsche Telekom Chief Executive Ron Sommer has admitted making mistakes that contributed to company shares sinking below their 1996 issue price. However, he told the company’s annual general meeting to expect a 10-percent increase in revenues next year, saying he is confident the company’s debt could be reduced to 50 billion euro (US$47 billion) by the end of 2003 by selling the mobile division T-Mobile and the company’s cable networks. “Both options still remain open to us but the conditions have to be right for us to use them,” he said, adding he is confident that market conditions would improve “in the foreseeable future.” Deutsche Telekom’s profits were further dragged down by write-offs from the consolidation of the company’s U.S. mobile subsidiary VoiceStream and goodwill write-offs on third-generation (3G) mobile-phone licenses. … Read more

MMS takes off in Europe

DUBLIN, Ireland—Some trends are beginning to emerge in the European multimedia messaging service (MMS) market following the launch of services by several operators. However, there is still a distinct split between those charging per message and operators adopting volume pricing models similar to those used for General Packet Radio Service (GPRS) services. The general industry view is that billing per message is expected to dominate in the initial stages, albeit at different pricing levels, given the variations in message size. MMS messages are likely to be charged at between two and four times more than the current price for SMS. Telenor Mobil in Norway, Vodafone D2 in Germany, Westel in Hungary, Vodafone Telecel and TMN in Portugal and TIM in Italy have all launched multimedia messaging applications, and Swisscom Mobile is about to follow suit. … Read more

NII Holdings files for bankruptcy

RESTON, Va.—NII Holdings Inc., Nextel Communications Inc.’s international operations, said it has reached an agreement in principle with its main creditors Motorola Credit Corp., Nextel and a consortium of bondholders for a restructuring of its outstanding debt and filed for Chapter 11 bankruptcy reorganization in the United States. The agreement calls for $190 million in new capital, $140 million of which will be in the form of a rights offering of new senior secured notes and warrants to bondholders. Bondholders will backstop at least $75 million, with Nextel backstopping up to $65 million of the rights offering to NII bondholders. Nextel has also agreed to provide $50 million of additional funding in return for a cross-border spectrum sharing arrangement. The restructuring is expected to reduce NII’s total indebtedness from its current $2.7 billion to less than $500 million. … Read more

Sony Ericsson warns of potential 3G handset interoperability issues

OXFORD, United Kingdom—While the newly formed Sony Ericsson expects to sell its first third-generation (3G) handset in Europe later this year, Jan Wareby, its executive vice president, has cautioned potential users to expect interoperability issues with products from these early shipments. Despite this looming problem, Wareby claimed that once volume shipments of 3G phones start in the second or third quarters of next year, any interoperability issues should be resolved. Adding to this, the company stated it is quietly confident that global sales of cell phones will top 400 million this year—a marginal increase on last year’s figure, boosted by roaming for multimedia messaging service (MMS) services that will be launched later this year in Europe and the United States. Helping to substantiate this positive viewpoint, U.K.-based market research firm Abel & Baker claimed that new survey findings indicate video telephony and MMS will be the driving forces behind 3G uptake, not wireless Internet access or m-commerce. … Read more

LG looks to compete with help from satellite, cellular broadcasting

NEW YORK—A new alliance with Korea Digital Satellite Broadcasting is part of an overall plan for LG Telecom to compete successfully with South Korea’s two larger wireless operators, said Yong Nam, president and chief executive officer. In late April, Martin Lee, chief financial officer, told attendees of an investor-relations meeting that LG expected to sign by early May a final contract with the satellite broadcasting company to converge their wireless and satellite technologies, AFX News reported. “Korea Satellite’s (digital TV) set-top boxes use our networks, and we get a subscription fee for each of their users,” Nam said 21 May at the Lehman Brothers “Global Wireless Conference.” LG Telecom also recently introduced a wireless credit card in a pilot program with 3,000 retail outlets in suburban Seoul. “So far ring tones, character downloads and e-mail have been the services that consumers demand and will pay for. But low-cost cellular broadcasting using multimedia push technology can provide the wireless wallet to replace credit cards, to let people download music and play the lottery without standing in line to buy tickets,” he said. … Read more

Ireland allows FWA licenses

DUBLIN, Ireland—Ireland’s telecom regulator ODTR said it is introducing new licensing regimes for fixed wireless access (FWA). The regulators plans to provide a system for local and regional licensing in the 10.5 GHz band and make available additional spectrum for license-exempt wireless local area networks in the 5.8 GHz band. The initiatives are aimed at enabling fast and flexible rollout of wireless access to encourage increased availability of broadband services. The regulator is also considering designating part of the 26 GHz band review spectrum for point-to-multipoint, multipoint-to-multipoint applications, fixed wireless access or other services. … Read more

Enterprise wireless growth anticipated, driven by Wi-Fi

FRAMINGHAM, Mass.—Although the market for wireless enterprise products and services seems to be lagging, and companies selling wireless infrastructure to businesses have been struggling, research and analyst firm IDC predicts the market for such services will grow to a staggering $37.4 billion by 2006, representing a compound annual growth rate of nearly 15 percent. The firm pegs the massive growth on the rise of wireless local area networks, which IDC sees as driving the demand for wireless and mobile consulting, integration and managed services. “The deployment of Internet, intranet, extranet, remote access and mobile networking infrastructure technologies has left end users at all levels of the corporate structure demanding increased network access to greater amounts of information from various remote locations, including airports, convention centers and other points on the map,” said Richard Dean, director of IDC’s wireless and mobile infrastructure services research program. … Read more

Check out the RCR Wireless News Archives for more stories from the past

ABOUT AUTHOR

Kelly Hill
Kelly Hill
Kelly reports on network test and measurement, as well as the use of big data and analytics. She first covered the wireless industry for RCR Wireless News in 2005, focusing on carriers and mobile virtual network operators, then took a few years’ hiatus and returned to RCR Wireless News to write about heterogeneous networks and network infrastructure. Kelly is an Ohio native with a masters degree in journalism from the University of California, Berkeley, where she focused on science writing and multimedia. She has written for the San Francisco Chronicle, The Oregonian and The Canton Repository. Follow her on Twitter: @khillrcr