Three launches 3G services - but without handsets
By Mary Fagan (Filed: 02/03/2003)
Three, the first of the mobile telecoms operators to bring third generation services to the UK, is to "launch" its service tomorrow without any handsets.
In a deeply embarrassing start for the company, formerly known as Hutchison, customers will be able to order handsets from high street outlets but will be forced to wait for four or even six weeks for delivery.
The problem will be seized on by critics of 3G who say the services, which include fast internet access and interactive data services on the move, have been over-hyped.
Orange and mmo2 are not expected to launch 3G services in the UK until the second half of next year. While Vodafone will enter the market earlier, it is also unlikely to launch until 2004.
Three's expected launch date of 03/03/03 was already months later than had been originally planned. The company, which is launching in six European countries, had set itself a target of gaining 2m customers by the end of 2003. It had also made a great play of stealing a march on its more established rivals.
According to one City analyst: "Nine months ago people were excited about Three. Now it's hard to see how they will make the 2m target. This is more of an unveiling than the launch people had been hoping for."
Three is aiming for the high end of the mobile market with handsets costing between £400 and £450. The company's network is thought to directly cover only around half the UK population.
However, Three provides full coverage through a "roaming" agreement which allows customers to use the O2 network while the company completes its build-out.
The industry is also braced this week for news of further cutbacks from Orange, now owned by France Telecom, when it announces its results on Wednesday.
The mobile company has been asked by its heavily indebted parent to find savings of between Eu5bn and Eu7bn over the next three years. Orange, which was once the most dynamic of the UK mobile operators, has already said that it will rein back on geographic expansion and delay its 3G rollout.
Analysts expect capital spending this year to be slashed to just two-thirds of the level in 2002. Orange is also expected to make cut backs on marketing.
"Everyone now talks about Orange in the same breath as France Telecom and quite rightly so. In contrast, Vodafone has been out there with the 'Live' product and will be driving to improve market share in all its key markets," one said.
There is also speculation that Orange will sell or close its Dutch or Danish businesses, which have relatively weak market positions. Graham Howe, the deputy chief executive who is leaving the company after being passed over for the top job, is said to have been the main opponent to geographic retrenchment.
money.telegraph.co.uk
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Without really having handsets - the batteries won't drain nearly as fast - dramatically improving standby.
And they'll actually work rather well - provided they don't exist.
It's not the absence of handsets - but their pending arrival - that marks the death of 3. |
