Beware GPRS hype says Gent
By Paul Dempsey
Electronics Times
(06/01/01 16:15 p.m. GMT)
The GPRS always-on mobile communications data service will be "pretty flaky" at launch and so will third-generation (3G) technology, says Chris Gent, Vodafone's chief executive.
After the consumer disappointment with WAP, Gent cautions that the next wave of mobile services should not be built up too much.
"GSM was flaky before it came good," he said. "GPRS will face the same issues and so will 3G. There is a gestation period with these things. The danger is you overhype it all and end up disappointing the consumer."
His comments follow difficulties faced by BTCellnet during demonstrations of its GPRS service and the roll-out of what could still potentially be the world's first 3G network on the Isle of Man. They also followed Vodafone's consumer launch of GPRS last week, when it achieved 3G communications under trial conditions.
As Vodafone unveiled annual results, Gent set out his company's plans for the introduction of 3G technology.
It estimates that, by overbuilding its existing networks in most European markets, 3G infrastructure will cost between £8bn and £10bn to install. UK network costs for 3G are expected to be £1bn to £1.5bn. Germany will be more expensive.
Gent says Vodafone's 3G offering and subsidies will initially concentrate on heavier users and corporate customers, as 2.5G GPRS services might well deliver most of what pre-paid and lighter users want.
The 3G network will initially concentrate on major cities. "We will concentrate on the most traffic-intense areas," Gent said.
He adds that the availability of dual-mode 2G/3G handsets will be crucial to the roll-out as they will guarantee contract customers a continuity of service wherever they were, even if full 3G capabilities are initially confined to city centres.
Vodafone will take handset orders "in volume", but Gent says a sizeable gap exists between manufacturers launching new handsets and making them in volume. Producers have said models will be available at the end of this year, but Vodafone is sticking to a mid-2002 launch date for 3G to combat potential supply problems.
The same concern over volume applies to the launch of GPRS for the consumer market. Vodafone stressed that "normal" levels of stock are available in each of its shops.
Consumer GPRS users will pay for data and voice tariffs, with pack-ages available with varying amounts of bundled data, ranging from £3.99 per month and 2p per Kbyte of data downloaded to £117.50 bundled with 100Mbyte and each additional Mbyte charged at £1.18.
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