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Cut-price LG phone to drive GSMA's '3G for All' campaign

by Bob Crabtree on 12 February 2007, 16:25

Tags: LG

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The press release



LG Handset To Lead GSMA's '3G For All' Campaign

Sleek, feature-rich 3G handset chosen by 12 leading operators

12th February 2007 - Barcelona, Spain: Twelve leading mobile operators have selected a slim, multimedia phone developed by LG Electronics as the winning handset to spearhead the GSM Association's 3G for All campaign, which aims to make third-generation mobile services accessible to a much wider user base.

By agreeing on a common set of requirements, the 12 operators will enable LG to achieve major economies of scale in manufacturing, logistics and marketing. The LG-KU250 handset will be available at a wholesale price about 30% less than the typical entry-level 3G phone and fully-competitive with the multimedia second-generation handsets on sale today.

Twelve of the largest mobile operators in the world selected the LG-KU250, which is only 15mm thick, from 19 handsets submitted by eight vendors. Containing a chipset supplied by Qualcomm, the handset supports video calls, high-speed Internet access, multi-tasking and a wide range of other multimedia services.

"The 3G for All campaign has had a great response from both handset and chipset vendors demonstrating their commitment to work with operators to drive usage of 3G services," said Craig Ehrlich, chairman of the GSMA, the global trade association for mobile operators, and a board member of Hutchison Mobile Communications, which is sponsoring the project. "A highly-capable device that is as attractive and cost-effective as the leading 2G multimedia handsets, the LG-KU250 has clear mass-market appeal and will help fuel interest in third-generation services across the world."

"LG is very excited about collaborating with the GSMA to lead the ongoing evolution and deployment of 3G technology worldwide," said Dr. Skott Ahn, President and CEO of LG Electronics Mobile Communications Company. "Through this partnership, we will bring all people closer to new mobile capabilities and they will benefit from higher-quality wireless multimedia 3G services. LG will provide them with attractive and feature-rich 3G devices while at the same time breaking price barriers for subscribers in the global market."

"Qualcomm believes that one of our responsibilities is helping to make advanced wireless voice and Internet connectivity available to more people worldwide," said Dr. Paul E. Jacobs, CEO of Qualcomm. "We are proud to have been a part of this program with the GSMA and applaud their initiative in bringing the industry together toward this common goal of speeding the growth of 3G and multimedia services worldwide, though enhanced competition and consumer choice."

Unveiled to CEOs from across the mobile industry at the Leadership Summit of the 3GSM World Congress in Barcelona, the LG-KU250 handset will be available to all 3GSM mobile phone operators from the second quarter.

The 12 operators steering the GSMA programme have also highly commended a 3G handset submitted by Nokia. Also capable of supporting a range of 3G multimedia services, the handset, which is built on the Nokia 6151 platform, uses a Texas Instrument chipset designed to Nokia's specifications.

"We are pleased to be acknowledged by the GSMA for our efforts. Clearly, we share a common interest in extending the benefits of 3G to ever-wider audiences," said Kai Öistämö, Executive Vice President and General Manager, Mobile Phones, Nokia. "In addition to offering consumers a much richer mobile experience, 3G enables operators to lower operating expenses, reduce voice congestion in 2G networks, enabling the reallocation of the 900 MHz frequency, and promote usage of new services".

The 3G for All campaign is the second programme designed by the GSMA to create economies of scale for handset makers and their component suppliers. The GSMA's Emerging Market Handset programme stimulated the development of a range of ultra-low cost mobile phones aimed at first-time buyers in developing countries.

About the GSM Association
The GSM Association (GSMA) is the global trade association representing 700 GSM mobile phone operators across 217 countries of the world. In addition, more than 180 manufacturers and suppliers support the Association's initiatives as key partners. The primary goals of the GSMA are to ensure mobile phones and wireless services work globally and are easily accessible, enhancing their value to individual customers and national economies, while creating new business opportunities for operators and their suppliers. The Association's members serve more than two billion customers - 82% of the world's mobile phone users. See: http://www.gsmworld.com & http://www.3gsmworldcongress.com.


Notes to Editors
Each of the proposals was scored by the 12 operators against eight criteria - functionality, usability, logistics, market acceptance, target price, service and support, strategic commitment and form factor.

The 12 operators that selected the winning handset were Cingular Wireless, Globe Telecom, Hutchison 3G, KTF, MTN, Orange, Smart, Telecom Italia, Telefonica, Telenor, T-Mobile and Vodafone. Bharti Airtel acted as an observer.

The GSMA endorsement will be in place for the period between April 2007 and December 2007. The proposal submitted by the winning vendor will form the basis of purchase contracts to be agreed bilaterally with individual mobile operators.

Supporting quotes

Gerry Ablaza, CEO of Globe Telecom

"As the first to commercially launch 3G & HSDPA in the Philippines, we at Globe Telecom are most excited with the announcement of the "3G For All" winner in this Congress, as this breakthrough initiative of the GSMA will enable us to improve handset affordability, one of the barriers to 3G service adoption in the Philippines. We believe that there is a huge un-served, mass-market segment in the Philippines which this "3G for All" initiative will address; we look forward to 3G becoming a mass-market proposition within the next years. We commend the GSMA in its efforts to support the industry with a timely and effective market intervention ensuring that the price gap between 2G and 3G handsets is being narrowed by the delivery of this affordable, feature-rich 3G handset."

Kelly Williams, executive director of technology for Cingular.

"We expect 3G to become as ubiquitous as GSM worldwide. Offering customers an affordable 3G handset will help make that become a reality."

Dr. Young-chu CHO, CEO of KTF

"KTF expects that the "3G for all" project will make a great contribution toward expedited expansion of W-CDMA in the global market. Based on greater economies of scale, it will enable mobile users, in not only developed countries, but also developing countries to enjoy the state-of-the-art mobile services more affordably. Furthermore, with advanced data service capabilities, it will enable greater growth in data and content businesses."

Christian Salbaing, Managing Director of European Telecommunications at 3 Group

"Hutchison Whampoa's 3 Group congratulates LG on winning the 3G for all award with its LG-KU250 handset. This combination of low price and good functionality will help to reach the millions of potential customers around the world who don't yet know what they're missing. We have been delighted to support GSMA in organising this competition which has inspired many suppliers to create highly competitive products."

Arve Johansen, Deputy CEO Telenor and Head of Telenor Region Asia

"We have already witnessed the increasing demand for advanced mobile communication in the emerging markets where Telenor is present. With 3G becoming a mass market proposition, the need to make 3G affordable must be high on the agenda for all industry players. The availability of affordable feature-rich 3G handsets will both reduce entry barriers and widen the choice for all customers. This project demonstrates the industry's commitment to work together to ensure advanced mobile communication for all."

Karel Pienaar, CTIO of MTN

"MTN's participation in the 3G for All initiative reaffirms our commitment to broaden access to telecommunications through innovation. MTN has launched 3G services in various operations, delivering on its promise to provide a pervasive wireless broadband service to subscribers as part of its multi-bearer strategy. We hope that this initiative will support our current efforts and benefit the large, previously under-serviced mass market segment by providing access to quality wireless communication services."



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Interesting, however I think the only way they will increase 3G uptake in this country, is if they couple this low price handset with cheap tariffs. When I first used 3g I had to pay £2 for each mb! Reduce the high data costs associated with 3g and it might succeed imo.