European firms wary of 3G price hikes

Most European companies are unwilling to pay more for faster wireless web access because they do not believe the benefits will justify the higher charges, according to a Gartner study.

The report found that while 82 per cent of European companies see mobile devices and applications as very important to their business, only 24 per cent are willing to pay more for third-generation (3G) communications.

"This is bad news for European 3G mobile operators who have paid high premiums for licences," said Gartner analyst Nick Jones. "While European chief information officers would like the high data rates promised by 3G systems, they are not willing to pay extra for them."

Gartner predicts that by 2003 every ebusiness initiative will have some element delivered across a mobile channel. "When mobile-business takes off, a significant minority of organisations risk being left behind," warned Jones.

Many businesses believe that it is important to add wireless capabilities to their networks, and that adding mobile support to applications such as email and enterprise resource planning is critical.

See also:

3G: Beyond the hype

The third-generation (3G) licence frenzy has left mobile operators with empty pockets and a head full of hype, wondering whether they can find a killer app to justify the billions spent on the licences.  01 May 2001

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