Super cheap 3G phones coming to Australia
Hutchison is bringing LG's low-cost 3G device to the masses, which could mean the economical 3G handsets will hit the Australian market within a matter of weeks.
A number of operators -- including Orange, T-Mobile and Vodafone -- have signed up to offer a "3G for All" device worldwide, backed by industry group the GSM Association (GSMA). The low-priced 3G devices from LG are expected to bolster the take-up of next-generation services around the globe.
Twelve network operators were charged with picking the winning handset last year from a selection of 18 offerings from eight different vendors.
According to the GSMA, by pandering to the 12 operators' requirements to generate economies of scale, LG will be able to cut the wholesale price of the phone to 30 percent less than a typical entry level handset, following a 2005 scheme which saw 2G phones developed for less than US$30.
The LG device in question will launch under the brand name U250 in Europe, Asia-Pacific and Africa. The slimline U250 will provide next-gen connectivity as well as multimedia functionality, including a Web browser and MP3 player.
Hutchison has signed up to carry the device in its territories worldwide and the phone will start shipping in Australia this month, according to the GSM Association.
While 3G penetration has seen something of a boost recently, the take-up of next generation networks has yet to meet operators' expectations. Price wars have recently broken out between third-generation networks, Vodafone and Hutchison, who have trimmed the cost of their so-called "mobile broadband" monthly tariffs.
Telstra CEO Sol Trujilo recently dismissed such moves as "irrelevant" to the telco. Last month, the company began offering 3G services to pre-paid as well as contract customers, in an effort to encourage greater 3G penetration.
IDC wireless and mobility research analyst Jerson Yau told ZDNet Australia the low- and mid-tiers of the market remain important to vendors as 3G grows. "A lot of south-east Asian and American manufacturers, like Motorola, will attack the mid- to low end of the market -- the sub US$100 market is an opportunity for manufacturers to keep afloat."