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MOBILE PHONES FUEL SPACE RACE

Added: (Mon Nov 27 2000)

Pressbox (Press Release) - 27 November 2000
MOBILE PHONES FUEL SPACE RACE
The 3rd generation mobile phone licenses are set to create a massive global demand for technology real estate. 2iQ, one of the UKs leading suppliers of network storage solutions, predicts that during 2001 telecoms companies will face a dramatic shortfall in space to house their expanding businesses.

The licenses which have already been sold in the UK, Asia and Japan and which are currently being negotiated all over Europe, will enable telecoms companies to provide greater bandwidth for mobile phones.

Currently a typical data call on a mobile phone carries 13kb per second of data. This limited capacity has inhibited the usefulness of new technologies such as WAP phones and means that surfing the internet via a mobile phone is slow and impractical. Through the 3rd generation mobile phones a typical data call will be able to carry 2048kb per second of data V potentially turning any mobile phone into a PC in terms of its capability to surf the internet.

For telecoms companies to support such use however, they will need to globally house a far greater number of servers. Industry figures suggest that based on present usage they will need 158 times as much space as they currently have. With such data centre space already in short supply - there is a 30% worldwide shortfall V such facilities will be at a premium.

And, if as expected, the new generation of mobile phones make internet access far more widely available and thus drive up consumer use of the internet, the demand for space within the telecoms sector will be even greater.

Few believe that telecoms companies themselves will refit and develop their own data centre facilities. With so much revenue tied up in the new licenses V they have cost $2.8 billion in the UK and globally telecom companies have borrowed $171 billion this year and will need another $100 billion to fund 3G networks V such companies are unlikely to want to move into real estate.

Stewart Colborne, Managing Director of 2iQ comments: Having spent over $85 billion on licenses in Europe alone, telecoms companies will have to invest in new hardware, network expansion and will be focussing any other remaining revenues on income generation through customer base expansion and customer enhancement.

Like MCI WorldCom, which has only recently moved out of the facilities market to concentrate on its core business, the industry will be relying on specialist data centre providers and telehotel companies to supply the market. In response to this, many major players in the field have already secured prime sites in key geographies but many more will be needed to meet the demand.
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For further information contact:
Louise Findlay-Wilson
Tel: 0044 (0) 1993 823011
Email: louise@findlay-wilson.co.uk

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