& cplSiteName &

3 Heats Up HSDPA in UK

Michelle Donegan
LR Mobile News Analysis
Michelle Donegan
8/21/2007
50%
50%

U.K. operator 3 will shake up the mobile broadband market next month when it launches cut-rate high-speed downlink packet access (HSDPA) services. The move could spark the first mobile broadband price war in the U.K. (See 3 UK Prices X-Series and 3 Plots Mobile Broadband.)

Unstrung can reveal that the operator will offer HSDPA services with speeds up to 2.8 Mbit/s for £10 (US$20) per month for 1 Gbyte of data, which will considerably undercut the offers from the second quarter, Orange UK , T-Mobile (UK) , and Vodafone UK .

Other tariffs will be a 3-Gbyte service for £15 ($30) per month and a 7-Gbyte service for £25 ($50) per month.

3 has not yet unveiled the pricing of the USB modem. One report says it will be free for existing 3 customers but will costs £79 ($156) on a 12-month contract or £29 ($57) on an 18-month contract.

According to an Unstrung Insider report, which was published in December last year, the average price for a 1-Gbyte service was $60 per month, including the modem. The lowest price in Europe was around $40 per month including the modem, says Brown.

T-Mobile's cheapest 3G laptop data service in the U.K. is $57 per month, which includes the modem, for unlimited data. Vodafone offers a 3G data service for $59 per month for 3 Gbytes; the USB modem is free on an 18-month contract and costs $118 on a 12-month contract. (See Carrier Scorecard: T-Mobile International, Vodafone Prices Data Roaming, Orange Touts 3G Data, and O2 Reports Q2.)

"Mobile operators have historically priced mobile bandwidth as a scare resource that has to be protected with high tariffs," says Gabriel Brown, Unstrung Insider chief analyst and author of the report Mobile Broadband Pricing Strategies & HSDPA. "But HSDPA changes the economics of mobile broadband by allowing more users to share each 5 MHz radio channel."

3 will also allow customers to use their HSDPA handsets as modems to connect to their laptops.

But it is not clear whether 3 will require customers to sign up for a voice tariff package in addition to the broadband service. The operator will announce full pricing details when it launches the service on September 3.

"Many people say that 3G technology doesn't allow mass market pricing for mobile broadband," says Brown. "3's new tariffs show that with HSDPA, mass market pricing is possible, although it's not yet clear if attractive data pricing will be tied to costly voice subscriptions."

At service launch, 3 will have deployed its HSDPA network to cover about 50 percent of the U.K. population, and by the end of the year, 85 percent of the population will be covered.

— Michelle Donegan, European Editor, Unstrung

(8)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:03:42 PM
re: 3 Heats Up HSDPA in UK
I'm reminded of this poll we ran in January 2007, asking how much you'd pay for mobile broadband.

http://www.unstrung.com/survey...

Out of 152 responses, 30% would pay up to $40 a month, and 58% less than $30.

But I wonder, even if these prices were available, would you really sign-up?

After all, it's yet another monthly bill to add to all those other monthly bills we have.
IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:03:42 PM
re: 3 Heats Up HSDPA in UK
-ú10 (~$20) a month for a 3G data service would be great value.

It'll be interesting to see if it's linked to a voice plan, or if 3 will sell to anyone with a modem.
lrmobile_amby
50%
50%
lrmobile_amby,
User Rank: Light Beer
12/5/2012 | 3:03:41 PM
re: 3 Heats Up HSDPA in UK
This has been available in Ireland (and other Three countries) for a while. The prices might give an indication of what the UK prices might be for same.

http://www.three.ie/broadband/...


IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:03:36 PM
re: 3 Heats Up HSDPA in UK
There are some more user comments over on GigaOm

http://gigaom.com/2007/08/22/3...

IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:03:36 PM
re: 3 Heats Up HSDPA in UK
Thanks Amby,

From looking at the website it seems you also have to buy their modem.

Do you know of it's been popular in Ireland?

Details of the UK offer have popped up here for pre-orders:
http://threestore.three.co.uk/...


Apparently 3 has done similar in Sweden with some success.

borracho
50%
50%
borracho,
User Rank: Light Beer
12/5/2012 | 3:03:29 PM
re: 3 Heats Up HSDPA in UK
A relevant question to ask is how do you intend to use the service, regardless of the cost? I guess if you use MBA for work then $40/m paid/reimbursed by your employer is manageable while a $20/m for personal usage might still be quite high.

Any stats on user profiles (business vs. personal) and applications used on MBA?

Borracho
IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:03:27 PM
re: 3 Heats Up HSDPA in UK
Interesting questions. We don't really have the stats youGÇÖre asking about.

The poll has 152 responses GÇô it's anonymous and without methodical rigor GÇô but stillGǪ

In answer to the question, If you have a 3G laptop service, who pays for it?

* 34% said their employer has a corporate deal;
* 24% claim it back through expenses;
* 40% pay their own way; and
* 3% other

The big hope from the mobile industry has been that employers would start making 3G modems standard issue, as with BlackBerry. This is one reason operators have held off cutting prices (to see what the enterprise would swallow)GǪ but 3 doesnGÇÖt have much corporate business, so there's no lost opportunity from lower prices.

I only know one person who uses HSDPA as their primary connection. Because he canGÇÖt get any other service (apart from satellite), it's made a real difference and he can overlook the slow uplink and poor latency.

Likewise, if you're already connected at home and at work, and use 3G when youGÇÖre out or traveling, I think you can live with the shortcomings. It's generally better than having to find and pay for WiFi, etc.

At home it's only good enough as a replacement for DSL or cable for "broadband lite" users.

For what it's worth, I find HSPA an amazing technology. With enhancements to uplink speed, QOS, and battery consumption still to come, it'll have along life.

We'll soon start seeing much more action on embedded laptop modules and Email-style devices.
borracho
50%
50%
borracho,
User Rank: Light Beer
12/5/2012 | 3:03:26 PM
re: 3 Heats Up HSDPA in UK
Thanks for the info. It is interesting to see users are split almost 50-50 between corporate and private. It would be really interesting to see the 40% who pay for their own service what they use it for (access to work related apps, private email, etc.).

If you think HSPA would be around for long time combined with future enhancements roadmap, wouldn't it hurt/delay the adoption of 4G (I am thinking WiMAX)? Will it be a horse race between these two (3G/HSPA and 4G)? Well, 3G is out of the gate while 4G hasn't saddled-up yet.

Borracho
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (0) comments


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    LoRa Alliance Defends Tech Against Sigfox Slur
    Iain Morris, News Editor, 4/28/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.