Apple bites back in fight for supremacy

THE eagerly-anticipated launch of the iPhone 5 last week saw Apple unveil a thinner, lighter flagship phone. After the disappointment of the “underwhelming” iPhone 4S, there was pressure on Apple to deliver a new phone, not just a software upgrade disguised as one.

Apple s new iPhone 5 Apple's new iPhone 5

The initial reaction to last week’s launch was that Apple boss Tim Cook had hit the mark.

Ernest Doku, telecoms expert at uSwitch.com, says: “Fortunately for Tim Cook, his beautiful iPhone 5 should put the bite back into Apple. This time it had to be all about the hardware as much as software. In this regard, Apple has delivered, and then some.”

Cook’s masterstroke was the inclusion of 4G, or superfast mobile broadband technology.

He surprised many pundits by leaving out NFC technology, advanced microchips that enable users to pay for everyday items with a swipe of their smartphone.

Also known as long-term evolution technology (LTE), 4G is an industry standard which promises much faster download times than on the more established third-generation networks.

The technology is the latest battleground as Apple and Samsung slug it out for dominance of the mobile handset market.

This time it had to be all about the hardware... Apple delivered

A survey of consumers from specialist gadget insurer Protectyourbubble.com found 4G the “most wanted” smartphone feature for data-hungry users.

Telecom carriers worldwide aware of this pent-up appetite are upgrading their networks to support the bandwidth required for 4G speeds, while smartphone makers are stepping up their rollout of handsets that can support LTE.

The LTE-enabled Galaxy S III from Samsung goes on sale in Europe later this year.

However, LTE technology is not yet faultless. Experts describe it as a “patchwork quilt” in terms of spectrum, making it more difficult to make 4G phones that work seamlessly around the world.

Britain is far behind countries such as the US and Germany with 4G networks that are several times faster than the established 3G network.

Alistair Young, campaigns manager at Analysys Mason, a specialist adviser in telecoms, IT, and media, says: “The iPhone 5 LTE capability will have less than expected impact on the 4G market, especially in Europe. It is not compatible with 800MHz and 2.6GHz LTE bands used by many operators across Europe.

“Our research indicates that 46 per cent of iPhone 4 users believe that they already have 4G. The question is how do you convince those customers to buy an LTE contract.”

An auction of airwaves suitable for 4G services will not take place in the UK until next year.

The delay comes despite the Government viewing 4G as vital to developing a national digital economy, as well as for linking up rural areas unable to access fibre optic infrastructure.

First to market in the UK will be Everything Everywhere, a joint venture from T-Mobile and Orange. Now rebranded as EE, it plans to steal a march on rivals by launching a 4G network on existing airwaves. This network will be compatible with the new iPhone. Doku says: “This is an incredibly exciting development for the mobile market and a hugely ambitious roll-out, with coverage across 16 cities by the end of the year and 70 per cent of the UK in 2013. If Everything Everywhere pulls it off, Britain will officially be in a new digital era.

“With speeds up to five times faster, consumers will be able to enjoy more rapid downloads, better connectivity and a far superior web experience through their phones.

“To give an idea of what this will mean, it will take about three seconds to download a four minute song, compared to 16 seconds using 3G.”

However, EE’s plan has triggered a backlash from competitors who have threatened to appeal to the regulator Ofcom.

Ministers were forced to intervene and a compromise was reached whereby EE will delay its launch by several weeks while a peace deal is worked out.

Rivals are unhappy that Ofcom allowed EE a headstart on 4G. The company had enough spectrum to launch a service without having to wait for the auction of Government airwaves reserved for 4G services.

The other networks say they need the new spectrum, which will be released in the auction to launch their services, because they own less bandwidth than EE.

Time is of the essence. The UK could lose its status as one of the most advanced mobile technology markets if improvements to its mobile internet structure are further delayed.

With the iPhone 5 and the new Samsung, the handset makers are ready and waiting for the airwaves to catch up.

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