METROPOLIS | CLASSIFIEDS | PERSONALS | JOBS
MONEY TALKS

Ringing in the changes part 2

Don't get too attached to your current mobile phone. As Jeffrey Strain explains, the third generation of keitai are getting ready to boldly go where no phone has gone before.

Let's get digital
Although analog cellular phones still exist in Japan, they have pretty much given way to digital models. This is because digital cellular phones offer a number of advantages over analog models. These include better sound quality, fewer roaming charges and enhanced privacy features which can protect your calls from being overheard since, like computer files, digital calls can be encrypted. While analog phones originally gave better sound quality than the digital phones which first appeared in the early 1990s, this is no longer the case. The one key advantage analog mobile phones have over digital models is they are usually less expensively priced. With constant store, dealer and service provider promotions, however, it's possible to get quality digital models at no initial cost. Unless you have a specific reason for wanting an analog mobile phone, you're better off choosing a digital model.

The third generation of mobile phones is coming upon us for a very simple reason; a lack of capacity under the current system. Today, in the early evening hours when mobile phone traffic is heaviest, there is a noticeable deterioration of phone speed and quality. This will only increase as more and more people get mobile phones and the saturation point in available cellular airspace comes closer and closer. The third generation of mobile phones addresses this problem by focusing on the fact that phones in the future won't be primarily used as vehicles for voice transmissions as they currently are today, but as vehicles for data transmission, which is the fastest growing area and is predicted to exceed voice transmissions by 2005. In fact, the third generation of mobile phones offers basically the same features which are available on the most advanced second generation mobile phones. The difference is in data transmission speed which is predicted to increase to the point where access to the Internet, sending digital images, exchanging text and doing video conferencing will be easy and economical.

The next generation
As anyone who has a mobile phone and travels the world knows, a mobile phone which works in one country may very well not work in another. This incapability of standards is one of the main problems the third generation of mobile phones wanted to address. The problem is that all the companies who have invested heavily in their second generation mobile phone systems want to make the third generation backward compatible with their second generation. Unfortunately, the two current third-generation standards being promoted are not fully compatible with all the second-generation phone standards and a compromise to make them compatible doesn't look promising.

There are currently two main third-generation systems vying to be the world standard for mobile phones in the future. W-CDMA (Wide-band Code Division Multiple Access) is the third-generation standard supported by mobile phone companies in Europe and NTT in Japan. CdmaOne is the rival third-generation standard being supported by the US, many Asian countries and several smaller Japanese rival telecommunication companies to NTT.

CdmaOne is already available in Japan and gives better quality voice service than that of NTT, which won't have its W-CDMA third-generation mobile phone system ready until March 2001. Although the entire debate is messy and complicated, it currently appears as if the W-CDMA camp has a slightly stronger team than their CdmaOne rivals. That means that the telecommunication carriers who have heavily invested in CdmaOne are slowly becoming isolated, which include carriers in the US, Korea and DDI and IDO of Japan. These companies definitely won't give up their standard without a fight, and the winning standard for the next millennium is still far from certain.

Reprinted by permission of Kansai Time Out.


ADVERTISERS



MONEY TALKS:
356: From here to maturity
Investing basics
354: Moving up
Time to get what you deserve
351: Take your money for a ride
Send your money somewhere else
349: You too could own Manhattan
Invest your money long-term
347: Foreign invasion
Major overseas retailers advancing into Japan
345: Playing the odds
Making your money stretch at the casino
343: Terminal sanctuary
Avoid airport crowds
341: Cash Convenience
J-Debit cards
339: A Healthy Choice
Health insurance choices in Japan
335: Banking on banking online
Money-managing by modem
333: Short Changed
Japan's newly legal tender
331: Ticket to Success
The Japanese Lottery system
329: Class Act
Canceling the debts of the world's poorest countries
327: A Decent Profit - two
Invest your money with a clear conscience
325: A Decent Profit
Invest your money with a clear conscience
323: Ticket to Ride - Two
Save on every train ride you take
321: Ticket to Ride
Save on every train ride you take
319: Living on borrowed yen
Tapping into Tokyo's cash flow
317: Starting a Business
The basics on starting your own company in Japan
315: $70,000 Tax Free
What US citizens need to do with taxes
313: On the move - two
How to develop a sound house-hunting strategy
311: On the move
Peculiar customs in Japan's renting industry
309: Ringing in the changes - two
The third generation of keitai
307: Ringing in the changes
New keitai developments
304: Otoshidama all year long
Watching the ground for money
303: Stocking Up in Shares - two
Devising an investment strategy
302: Stocking Up in Shares
Different investment opportunities
300: The Faces of Money
The men who adorn the yen
299: Surfing for savings - two
Reduce surfing expenses with the right Internet server
298: Surfing for savings
Decrease your internet costs
297: Credit card tragedy
When you don't pay off your credit card bills
296: Cheap seats
The best deal on international airline tickets
295: Value for money
Learn more about personal finance
294: Trading places - two
Turn a good idea into a valuable saving
293: Trading places
Use your empty house to get free lodging while on vacation
292: Mobility's price - two
What's on offer in mobile phones
291: Mobility's price
Ins and outs of purchasing a mobile phone
290: Financial Child's Play - two
Teaching children how to save
289: Financial Child's Play
When to give your children money
288: Networking to success - two
Potential pit-falls and misconceptions
287: Networking to success
Intricacies of network marketing
286: Rest for less - two
Half-price hotel programs
285: Rest for less
Half-price hotel programs
284: Tax Relief?
Only the rich get richer in 1999
283: Taxing Issues - two
Money-saving tips for the self-employed
282: Taxing Issues
Start planning your taxes
281: Investing in Japanese Stocks
Is the Japanese economy on the turn
280: Budget Busters
Making it to the end of the month