3G evolution: real drivers and real solutions

UMTS has moved from the research domain to that of investments and returns. UMTS technologies will begin to roll out during 2001 and beyond. Significant capital expenditure outlays, especially in the access network, and high expectations mean that 3G solutions have to deliver significant incremental service and performance gains over 2G to be credible and sustainable in the market place. However, there is also an urgency to deploy initial 3G solutions to address demand in certain markets and to satisfy investment returns for both operators and equipment vendors. Further, from the operators' perspective, an attractive return on investment demands that technology does not evolve too quickly (though services should), whilst from the vendors' perspective, the converse is true. The competitive nature of the field and the conflicting needs for urgency of delivery and significant incremental performance over 2G and within 3G mean that effective solutions will be attained through competencies in innovative and rapid technology deployment, coupled with appropriate selection and/or sale of the technologies and their service and performance capabilities. This paper considers the application of strategy development to the evolving 3G industry in order to stress the importance of appropriate technology choice for innovation.