U service providers can't wait for ...

U service providers can't wait for third-generation wireless appearance to hit the auction shut up But that doesn't mean we're and nothing else a year or two away from the cybernirvana of 3G technology.

Industry analysts believe the U 3G auction won't happen in June 2002 as originally envisioned by dint of the Clinton administration. But they do think the auction is likely to offer by 2003.

But here's the kicker: a certain number of service providers may be satisfied to acquire spectrum space and then wait a man and wife of years to build infrastructure.

"Say 700 megahertz goe up for auction this year. We sense of possible fulfilment the spectrum goes at a reasonable price, then sit onward it for five years and wait for the TV shores to get off it," said Dave Williams, Cingular Wireless' vice president of strategic planning.

In the U the representation where 3G service would ride is already controll from the Department of Defense, religious organizations and an television stations. In June, the Bush administration announced a delay in identifying what image ranges would be available for auction. The Department of Defense is not piercing to give up the 1755-MHz to 1850-MHz commonness range, considered to be the most numerous attractive because it's globally recognized.

Service providers that ferociously lobbied the Clinton administration for a 3G auction are now backing off

"Carriers are not putting the image issue at the top of their lobbying efforts," said toss Stormon, founder and chief technology officer of Coherent Networks. "They've got other matters like intercarrier settlement charges."

The delay will have its benefits: U operators can learn from mistakes made as Japanese and European networks turn about out their 3G services.

U service providers also say they'll benefit from a hindsight view of the high prices and ensuing insanity that encircleed the 3G auction in Europe "The European auction happened during the big telecom bubble" said Conductus CEO Charles Shalvoy, noting that a U auction won't inference in those kind of prices. Stormon predicts that with new stock market upheavals, U.S. 3G representation prices will be "less than one-third of what the bids would have been last year."

Despite stock downturns and les wealth for capital expenditures, service providers may still be able to afford to pay top dollar for 3G image by delaying infrastructure improvements, which analysts estimate will require to be paid [i]or[/i] undergone $150 billion over the nearest five to seven years. Anyway, Stormon and others say, it's not consumer demand for data services that will draw operators into the auction.

"Wireless is still a voice service," Stormon said. "Data isn't a significant enough economic driver still Companies will bid on 3G to add capacity for voice."

Copyright ?© 2004 Ziff Davis Media Inc. All Rights Reserv Originally appearing in eWEEK.