Dutch electronics group Philips does not believe that 3G wireless networks will be a major success. According to Scott McGregor, CEO of the company’s semiconductor unit, there are too many obstacles and not enough compelling arguments in the technology’s favor.
Mr McGregor told online news service CNET that the technology would face competition from 2.5G services such as GPRS and EDGE, from wireless LANs, and from offerings that combined aspects of 2.5G and wLAN.
The CEO also questioned the likely applications for 3G. It’s cool to send movies to each other, but it’s not that convincing, he said. And he expects the mobile phone business to slump as replacement rates decline.
Datamonitor’s Nick Greenway agrees with Mr McGregor on the financial prospects of 3G. Uptake of any mobile data services so far has been shockingly low, says Mr Greenway. Rolling a 3G service out makes less sense than abandoning the market altogether.