Is HSDPA the Beginning of the End for Fixed Line Communications?

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Jan 6 2005

Currently the third generation cellular standard known as UMTS is being deployed in many regions in the GSM world.

Even as that is happening, operators, especially in the innovative frontiers such as the Far East, are evaluating the next evolution known as HSDPA. We should see trial systems as early as mid-2005.

What this means is that we will move up from the typical 300Kbps of UMTS to the typical 3Mbps of HSDPA. At this kind of speed what difference is there between mobile and fixed line communications, asks ABI Research.

Fixed line players better start asking themselves that question soon, according to ABI Research. It is well known that in the last couple of years, many consumers -- especially in the cost-conscious younger segment -- have been giving up their fixed lines entirely for mobile. It is predicted that 2009 will be the cross-over point for fixed line voice to mobile.

One reason that consumers still cling to fixed lines is for broadband data. But, says the firm's principal analyst for semiconductor research, Alan Varghese, with HSDPA's high data rates, this reason will start to disappear. Moreover the high bits per unit Hertz for HSDPA means that pricing for HSDPA will be very competitive with fixed line data.

"It may be true," Varghese adds, "that cellular operators will have to continue to enhance their networks in terms of voice quality, in-building penetration, and assurance of competitive pricing. But those problems will eventually be solved. And that may spell the beginning of the end for fixed line as we know it today."

ABI Research's study, "HSDPA - Mobile Broadband" discusses all these issues in detail. In addition it examines the drivers for HSDPA, the deployment schedules of operators, and the timelines, volumes, and ASPs for HSDPA Infrastructure, PC Cards, Handsets, and ICs.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the Web at www.abiresearch.com, or by calling 516.624.2500

 

    

 
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