& 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
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
The Real-World View of Service Provider Innovation
Executives from Deutsch Telekom, Facebook, AT&T, Vodafone, and Masergy share insights from their company’s major transformation efforts and updates on key issues including open source, managed cloud connections and 5G.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
LRTV Huawei Video Resource Center
European 2020 Digital Agenda

5|12|16   |     |   (0) comments


Anacom's Fatima Barros discusses the plan to bring ultrafast broadband to Portugal by 2020.
Upcoming Live Events
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
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Why I'm Heading to Austin for BCE
Ray Le Maistre, Editor-in-chief, 5/20/2016
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

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.