Print
Discuss
Send to friend
RSS feedsUK businesses will have to put plans to build revenues from third-generation (3G) services on ice as operators take advantage of a handset shortage to spread the cost of building the new network.
Vodafone chief Sir Christopher Gent told the Wall Street Journal Europe that his company is delaying its rollout of base stations because he expects a shortfall in handset availability during 2002. The telco now expects to complete 750, not 1200, base stations by Christmas.
A Department of Trade and Industry spokesman said that 3G licence conditions do not oblige operators to provide significant levels of service until 2007, when 80 per cent of the population must be covered. There are no other incremental deadlines.
Virtyt Koshi, senior consultant at Ovum, explained that Vodafone's move showed that users need to cut through the 3G hype. "Anyone basing their mobile data strategy on 3G is dreaming," he said. "We don't know what the equipment will be able to do, what handsets will be available or their cost. Vodafone's strategy to slow down is reasonable."
He urged network managers to use GPRS as an application testing ground. "There will be no commercial dual-band handsets available in the UK next year. They will appear in mid-2003, but even that is optimistic," said Koshi.
A spokeswoman for Orange said: "We've always said we'd roll out in 2003. We can't control what handset manufacturers do, but we don't anticipate any delays with handsets because our plans were more realistic in the first place."
See also:
All Mobile Communications
del.icio.us
Digg this
reddit!
