Operators share 3G masts in UK

3 and T-Mobile intend to share their 3G cell towers. They expect to save GBP2 billion (USD4 billion) over ten years, by decommissioning over 5000 duplicate base stations.

Analysys, in this insightful report, applauds the decision. (Note: for some time after 3G licenses were sold in the UK, sharing of infrastructure was illegal. This requirement has since been relaxed.)

Voice remains the mainstay of ARPU with SMS being the primary source of non-voice ARPU. The demand for heavy data hasn't been apparent enough. AND that requirement is threatened by substitutes such as Wi-fi and Wi-Max, which means that operators need to invest in alternative technologies (examples below), which reduces the investment that they can make in their traditional cellular infrastructure.

• fixed broadband ie triple plays and quadruple plays
• Mobile TV
• Femtocell - indoor base stations

Analysys also sees this as indicative of how operators will make future investments (such HSPA+ & LTE) - a strategy that led to the dominance of GSM.

Analysys calls this a 'major shift by mobile network operators' - and I agree.

Mobile Operators pin hopes on Mobile TV and HSDPA

Mike Grenville over at 160 Chars critiques Informa's 'Mobile Industry Outlook 2007' Report here. Informa concludes:

The industry thought that 3G would be the ARPU driver but now it is pinning its hopes on mobile TV and HSDPA.

Mike comments that there was no mention of SMS - still growing at 30% per year in the UK for example.

What about WAP or mobile internet? This I think is the undiscovered gem (or rather discredited years ago in WAP's case).

See stats indicating the penetration of internet browsing at Mobile Internet Access Grows (thanks to 160 chars again).