Europe : Mobile 3G network operators in Europe should be allowed by regulators to consider technologies other than W-CDMA in delivering the advanced high speed data and multimedia services envisaged for UMTS, according to a new white paper, Maximising the economic benefits from spectrum use: how to meet the needs of users, operators, vendors and regulators, prepared by Analysys Research, the global advisers on telecoms, IT and media.

Inset above is Ross Pow, Managing Director, Analysys Research Ltd and author of the report. The report comments that W-CDMA will definitely provide significant increases in voice capacity for 3G operators, but has still to prove its capabilities in reliably delivering the performance improvements in form of broadband speeed, latency and cost-effectiveness initially anticipated by customers, operators, vendors and regulators. This uncertainty, coupled with delays to 3G service launches and reduced plans for coverage roll-out, is resulting in business customers, especially large corporations, expressing reluctance to invest in new mobile data solutions.

“There is no doubt that there is a huge potential demand from IT managers for mobile data solutions that can drive improvements in productivity,” says the report’s author, Ross Pow, Managing Director of Analysys Research, “but they need to be convinced of the return on investment they will earn and especially that new services will reduce the costs they face in adapting enterprise applications for the mobile environment.”

The report goes on to state that, while the harmonised approach across the EU to the introduction of 3G was entirely appropriate, following the worldwide success of GSM, the big intervening competitive, financial and technological changes to the telecoms market mean that the time is approaching to evaluate if W-CDMA is likely to achieve a similar level of success.

“Spectrum is a highly valuable resource,” says Pow, “and it is in the shared interests of customers, operators, vendors and regulators to make sure that it is being used as effectively as possible to maximise the resulting economic benefits.”

The report notes that increased consideration is being given to ensuring the effective use of spectrum through mechanisms such as spectrum trading and technology-neutral licensing and suggests that decisions over the use of IMT-2000 spectrum should reflect this new approach. “If, within the next one to two years, W-CDMA is seen by operators to be delivering on its promises, then operators will choose to stick with it,” says Pow, “otherwise they should be able to consider the use of other technologies to offer the services that customers want.”

The report also states that removing technology restrictions on spectrum use should deliver increased investment, innovation and competition, concluding that any shortcomings in the ability of the European mobile industry to introduce innovative and high quality mobile data services will result in it falling behind Asia and North America, with a resulting negative impact on jobs and investment.