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22nd April 2004 - The recent launch of the Vodafone
3G data card across Europe has brought 3G coverage to
the forefront of many consumer's minds for the first
time since GSM population coverage was the network selection
metric of choice for the eager mobile masses. Will 3G
population coverage have a similar effect on customer
acquisition and retention?
Primarily, in Europe where 3G population coverage comparisons
will be the most prevalent over the coming 12-18 months,
the 3G launch coverage maps of competing operators will
be wildly different. With established players such as
T-Mobile in Germany and Vodafone in the UK, their consumer
proposition launch will be supported with 3G population
coverage in the 50%-60% region. In most countries this
is enough to cover all of the major towns and cities
as well as transport links of significance. Some smaller
players however will only launch with 15-20% population
coverage making the challenge of selling 3G and retaining
likely users of the service a significant challenge.
How does an operator with limited 3G launch coverage
sell 3G in its stores for example? Does it sell in the
stores that are only within 3G coverage areas? If so,
the already predicted slow uptake of 3G services will
have to be significantly revised down.
UK based mobile consulting firm Mako Analysis (www.makoanalysis.com)
is one of 3G’s closest observers and says that it does
not pay to over promise when making 3G coverage claims
such as 3UK has. Mako has noted that, "3UK currently
states that their 3G coverage is well over the 70% mark,
and yet as any 3 customers will tell you, this is far
from the case in the real world." The reason for this
marked difference can largely be explained by the UMTS
specific issue of "cell breathing". "In basic terms
cell breathing is the reduction in the coverage of a
particular cell site as more and more people begin using
it" Mako Analysis says. The range of a single 3G tower
shrinks in relation to the network traffic, as such,
with a completely empty network, 3 and other 3G operators
can claim relatively impressive population coverage
figures. As the network begins to load with customers
however the coverage range of each base station shrinks
and if the network is not provisioned correctly, significant
3G coverage holes will appear.
One of the reasons 3 are criticised for their network
quality is down to cell breathing.
Since 3 are not able to seamlessly hand a call off
from their 3G network to O2's 2G network (O2 UK are
currently allowing 3UK to use their network where they
lack 3G coverage) the call drops, in effect cutting
the user off. Given 3's claimed 70% population coverage,
dropped calls of this nature should be a relative rarity.
This is far from the case however, as the new entrant's
3G network begins to load with customers their cell
site range shrinks and holes appear where they previously
had blanket coverage. As customers move around they
dip in and out of 3G coverage and this causes a significant
increase in dropped calls.
As the majority of 3G operators around the world have
switchable legacy networks to fall back on in the case
of a voice call, the 3 example serves as a powerful
example to those who will be reliant on 3G coverage
for data applications, in particular laptop data card
users.
As with many marketing generated claims, mobile operator
statements on the issue of 3G coverage must be treated
with caution. If consumers are now beginning to use
3G network coverage as a minor or major consideration
when selecting a mobile service provider they will not
be aware of the real world differences in coverage until
after they have made their purchase.
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